As editor of Plastics News, I scan scores of Web sites, emails and news releases daily, and stay in constant touch with our network of global staff reporters and correspondents -- the largest reporting team in the plastics industry. I distill the more interesting items into commentary for this blog. Plastics News, part of Crain Communications Inc., began publishing weekly news in 1989, and launched a bilingual China site in mid-2005. In 2007, Crain acquired the two leading English-language plastics publications in Europe - Plastics & Rubber Weekly and the monthly European Plastics News.
GM's Dan Akerson on the problem of insular thinking
Rhoda Miel, our Detroit-based staff reporter, recently sat in on a Q&A event with General Motors Co. Chairman and CEO Dan Akerson.
The video below includes one of the highlights -- it's Akerson talking about the problem of insular thinking. The audio is a little difficult to understand, but we thought we'd post it anyway because many blog readers in the auto industry will be interested in anything GM's top dog has to say.
The video is from a conference in Beijing sponsored by our sister publication Automotive News. Jason Stein, editor of AN, is the moderator.
The full interview covered a wide spectrum of topics, everything from the process when he was selected to head GM, and his wife's reaction (he says he didn't tell her until they were on vacation) to his love of the new Cadillacs and the Volt and electric cars.
It's not surprising that the auto industry is taking the looming shortage of nylon 12 resin seriously.
Remember, this industry has first-hand experience with what a fractured supply chain can do to OEMs and suppliers alike, following natural disasters in Japan (earthquake and tsunami) and Thailand (flooding) last year.
I've been watching coverage of the nylon 12 situation -- triggered by a March 31 explosion and fire at an Evonik Industries AG plant in Marl, Germany. So far the best story came from David Vink, who wrote "Evonik warns customers about nylon 12 supply constraints," which Plastics News posted on April 15.
If you want to bring yourself up to speed on cyclododecatriene feedstocks, nylon 12, competitors to Evonik, potential replacement materials, plans to rebuild the Marl factory and the supply-demand picture prior to the explosion, you should start with Vink's story.
To help fill in the blanks with information since that report, here are some important additions:
Paul Blanchard from IHS Chemical noted that Evonik and Arkema SA -- which buys cyclododecatriene from Evonik -- together account for about half the world's supply of nylon 12. So if it wasn't clear before, that number should drive home the point that this isn't just a problem for Evonik.
Despite that, Dustin Walsh, a staff reporter for Crain's Detroit Business, noted today that automakers have not announced any planned shutdowns or cutting forecasts as a result of the anticipated shortage.
Walsh wrote in his "Shifting Gears" blog: "Mike Goss, general manager of external affairs for Farmington Hills-based Toyota Motor Engineering & Manufacturing North America Inc., said in an emailed statement: 'The material provided by Evonik is in our North American supply chain, but until we complete an assessment with our suppliers, the impact is unknown. At this time, there is no need to adjust production, and we will continue to work closely with our suppliers to ensure ongoing production.'"
Walsh also wrote that hundreds of auto industry executives are meeting in Troy, Mich., this afternoon to discuss the situation. Their goals:
Help the industry understand and quantify the current state of global nylon 12 inventories and production capacities.
Collaboratively brainstorm options to strategically extend current nylon 12 capacities and/or identify alternative materials or designs to offset projected capacity shortfalls.
Identify/recruit the necessary industry resources required to technically vet, test and approve such options.
We'll continue to stay on top of this story, so watch PlasticsNews.com for updates.
The auto industry is getting serious about using plastic composites to reduce weight and improve fuel economy.
Every week, it seems, we're seeing stories about automakers and suppliers using or studying ways to use plastics and/or composites to make vehicles lighter.
The project is part of Ford's goal of cutting average vehicle weight by 750 pounds.
For some additional insight into this issue, check out this video from our sister publication Automotive News. It features Plastics News' own auto industry beat reporter Rhoda Miel.
For some additional context, check out these stories on automotive weight savings, all in the past three weeks:
When I attended Plastics News' last "Plastics in Lightweight & Electric Vehicles" conference, I was impressed with what the plastics industry people were saying about the potential weight savings they could bring to the table.
But at the time, I got the feeling that many automakers felt they could hit aggressive fuel economy goals through other means, like powertrain improvements, and slightly cutting the size of vehicles.
Now it's beginning to look like automakers are more serious about the potential of plastics and composites.
Is that the result of federal MPG mandates, or consumers who are starting to believe that they're never again going to see $2 per gallon gasoline?
Ford Asia official to keynote PN's China conference
Attendees to the China Plastics in Automotive 2012 conference in Shanghai on April 17 will gain insights into Ford Motor Co.'s vision for creating greener, more lightweight and fuel-efficient vehicles globally when they hear from keynote speaker Jennifer Gilhool.
She's Ford Asia Pacific & Africa's Shanghai-based director of sustainability, environment and safety engineering.
Gilhool has a law degree from the University of Michigan. she started in Ford's legal department, then moved to the regulatory side of the business, working on safety and compliance matters.
Other topics to be covered at the conference include vehicle design trends, and the role plastics and advanced polymer composites will play in interiors, seating, powertrain and under-the-hood components, as well as in electrification and hybrid technology.
The bilingual event is being organized by Plastics News at the Kerry Hotel on the day before the huge Chinaplas 2012 trade show. See full event details at www.pnchina.com/cpa2012.
Here's a post for anyone who's ever drummed on their steering wheel and thought they sounded pretty good.
The band OK Go (which has previously won Internet raves for videos involving multiple treadmills and a Rube Goldberg-inspired machine in one take) used Chevrolet's new Sonic small car as a mobile instrument for a new video.
GM liked it so much that they used a portion of it in a Super Bowl ad.
The whole video came out on Monday. It includes the band members "playing" the (thermoformed) headliner and a retractable arm playing a series of 48 PVC pipes.
Car & Driver has a cool behind-the-scenes story on the making of the video, including a breakdown of every part of the performance.
After watching these guys, you may have a new, more realistic appreciation for your own musical talent ... even though all men think they can play the drum solo from "Wipeout" on their car dashboard.
(And thanks to Plastics News' Detroit-based staff reporter Rhoda Miel for suggesting this post.)
Rhoda Miel, our Detroit-based staff reporter, shared these fun snippets of news today from the 2012 North American International Auto Show:
The Detroit show boasts that it hosts 5,000 members of the media for its press preview. And while that number includes mainstream outlets like The New York Times, Time magazine, the major networks and cable news outlets as well as trade journals and auto journalists, it also includes a wide range of special interest bloggers. Like the reporter for an on-line magazine that reviews cars for dog lovers.
No wonder there are never enough seats at the press conferences!
It really is noticeably busier at this year's show, which is probably a sign of that the auto sector is picking up. Reports were that if you didn't get downtown by 6:15 a.m., you had to wait in line for parking.
And as Dieter Zetsche from Daimler quipped, "And you really know it's a renaissance in all of Detroit when even the Lions make the playoffs."
Shahid Khan, the owner of auto supplier Flex-N-Gate Corp., is joining the fraternity of National Football League owners after all.
You may recall that last year Khan was blocked from buying a majority stake in NFL's St. Louis Rams. But better (?) things come to those who wait, and now Khan is preparing to take over the Jacksonville, Fla., Jaguars.
With five games left in the regular season, the Rams are 2-9, while the Jaguars are 3-8. The Jags also just fired their head coach, former pro player Jack Del Rio.
The Florida Times-Union's Jacksonville.com website is reporting today that Khan will own 100 percent of the Jaguars. He's buying the majority stake from Wayne Weaver, plus stakes from various limited partners.
Flex-N-Gate is an automotive component supplier that moved into plastics in 2001 when it bought Ventra Group Inc. of Oakville, Ontario.
Would the phrase "Make it work" be appropriate here? Lexus had four designers -- jewelry, shoes, eyewear and clothing -- create something from parts from its CT Hybrid.
Final products included:
"Nomadic Sanctuary"--A sleek trench coat, shorts and clutch designed by John Patrick, featuring floor mats made from plant-based plastic, sustainable sound-dampening material, wire harness, leather seat covers and cargo covers
"The Luna Shoe"--Created by Alejandro Ingelmo using armrest leather trim and clear plastic tubing.
Thanks to Rhoda Miel, Plastics News' staff reporter in Detroit, for this item.
And Rhoda's not even embarrassed to say that she remembers that TV's "Project Runway" had a challenge to make clothing out of car parts some seasons ago. (A Saturn.)
Readers may recall that I was surprised last week by a report that a Canadian plastics processor was eager to buy a U.S. company because he was feeling pressure from U.S. customers that want to buy from U.S. suppliers.
Mann's column reinforces that U.S. actions -- he specifically cites the U.S. government -- "show little concern about Canadian concerns." He cites these specifically, and the first one echoes the plastics industry concern:
The protectionist "Buy American" language in [President] Obama's recent jobs bill that would hurt Canadian suppliers and businesses. Similar language was included in Obama's big stimulus bill two years ago.
The U.S. recently ended an exemption for Canadians flying or sailing into the U.S. as part of a trade deal with Columbia. True, an extra $5.50 (American) won't break anybody, but it's the thought -- actually, the thoughtlessness about Canada -- that matters here. The Canadian media was not amused.
Talks on a new U.S.-Canada border accord have dragged on far longer than anyone expected. Meanwhile, the U.S. Border Patrol is playing with model airplanes (Predator drones) patrolling the Canadian border. Which seems a tad insulting and not very neighborly. .
The world's biggest trading relationship continues to face a major bottleneck at the busiest border crossing: A proposed second bridge between the auto-manufacturing hubs of Windsor, Ont., and Detroit is being stalled in the Michigan legislature largely because of opposition and money from the rich guy who owns (yes, owns) the current bridge. Canada calls the new bridge its biggest infrastructure priority and has even offered to pay for the span. But pesky U.S. special-interest politics intrude once again.
Bruce Benda, vice president for automotive & transportation at Bayer MaterialScience LLC, had one of the best answers.
First, the context. Benda cited an example of a long fiber polyurethane underbody that the company helped design for a Ford Explorer simulation. The part could have helped save a whopping 45 pounds.
For an industry that's trying to save grams, 45 pounds is massive.
So why isn't this in commercial production yet?
"This industry is very firmly entrenched in existing infrastructures and technologies," Benda said. But he hastened to say that he's excited about the potential for progress now.
What's changed is that the government is now pushing automakers for rapid fuel economy improvements. The current 25 mpg average is supposed to hit 34.1 mpg by 2016, and 54.5 mpg by 2025.
OEMs will be using a wide variety of strategies to meet those goals -- the experts say electrification will be a big part of the equation.
But making vehicles lighter is also a high priority.
Tom Pilette, vice president of product and process development at Magna International Inc., said the OEMs he talks to now say their No. 1 priority is mass reduction.
Here are some more highlights from the conference today. Make sure to watch our Twitter page for updates throughout the event:
Maurice Sessel, senior vice president at International Automotive Components North America, said future vehicle designs may eliminate the crossbeam, a metal structural part under the instrument panel that accounts for 30 percent of the weight in a vehicle interior.
Sessel added that it will take close cooperation with OEMs to bring home new technology.
Magna's Pilette highlighted the company's extensive use of different materials, noting that Magna is materials agnostic. But he added that while the company is looking at applications for biomaterials, it won't step up their use until they are cost-neutral to customers.
Jay Baron, president and CEO of the Center for Automotive Research, said so-called "driverless technology" is technologically feasible now, and could be commercial by 2020. That's a trend being driven by the federal government too -- regulators want to create cars that won't crash, in order to reduce vehicle fatalities to zero.
There are materials implications to that push. For example, think of all the automotive parts that have to be steel or aluminum now in order to protect the driver and passengers in a crash. Now imagine that the car is designed to never crash...
Baron believes the future lightweight vehicle will be a mixed material product - not aluminum-intensive, steel-intensive or plastics-intensive.
Tom Gould, design director for North America for Johnson Controls Inc., says suppliers and OEMs need to collaborate to make lightweight vehicles.
That means bringing designers to the table. And once they're part of the team, push them to solve problems.
"That's what they're trained to do," he said. "Don't let them off the hook."
Likewise, Jim Tobin, chief marketing officer at Magna, said that to cut weight, suppliers need to use high tech expertise to deliver solutions that are affordable, environmentally friendly and reliable.
Today the Society of the Plastics Engineers Automotive Division named the finalists for its 41st annual awards competition. The winners will be announced Nov. 9.
Here are the finalists:
CATEGORY: Body Exterior
SPOILER WITH INTEGRATED ANTENNA & AMPLIFIER
OEM Make & Model: General Motors Co. 2011 MY Chevrolet Camaro convertible sports car
Tier Supplier/Processor: ABC Group - Exterior Systems
Material Supplier / Toolmaker: Dow Automotive / ABC Group - Supreme Tooling
Material / Process: Pulse® 2000 EZ PC/ABS / Blow molding
Description: This is the first-ever integrated amplifier and antenna in a blow-molded spoiler. An innovative method was used to incorporate the antenna into and locate the amplifier in the spoiler. Not only were rear-vehicle aesthetics improved, but a 10% weight savings and 66% indirect cost savings were achieved.
STRUCTURAL ASA AERO SPOILER
OEM Make & Model: Ford Motor Co. 2012 MY Ford Edge & Lincoln MKT CUVs
Tier Supplier/Processor: ABC Group / Delta Tool
Material Supplier / Toolmaker: SABIC Innovative Plastics / Delta Tool
Material / Process: Geloy XP4034 ASA+PC / Gas-counter-pressure injection molding
Description: A patented chemical foaming agent combined w/ASA in a non-traditional injection molding process was used to mold this aero spoiler, which reduces weight 1.5 lb / vehicle (for better fuel economy) and better meets customer requirements. The design allowed for parts integration while maintaining a Class A surface appearance and saving $5.6MM USD direct costs and an estimated $200,000 of indirect costs due to reduced complexity vs. the previous process.
RAM BOX ASSEMBLY WITH LID
OEM Make & Model: Chrysler Group LLC 2012 MY Dodge Ram pickup
Tier Supplier/Processor: Penda Corp. / Penda Corp. (lid), Evco Plastics (bin), River Bend Industries (end caps)
Material Supplier / Toolmaker: Asahi Kasei Plastics North America Inc. / Cavalier Tool & Mfg. Ltd. (injection molded bin); Tooling Technology LLC (thermoformed lid)
Description: Twin-sheet thermoforming replaces blow molding to create the structure and ribbing of this tough storage box with lid. The result is a more uniform, more dimensionally accurate part whose length was increased from 5 ft 7 in. to 6 ft 4 in., requiring greater emphasis on the "heavy-duty" nature of the structure's design and materials of construction. A special new grade of GR-PP eliminated the need to upgrade to heavier and more costly PA 6/6, avoiding a 9% weight and 20% cost increase.
CATEGORY: Body Interior
SECOND-ROW VANITY MIRROR & DOME LAMP WITH DUAL LED
OEM Make & Model: Ford Motor Co. 2013 MY Lincoln Town Car livery
Tier Supplier/Processor: Daimay NA Automotive, Inc. / Not Stated
Material Supplier / Toolmaker: Not Stated / Not Stated
Material / Process: PC/ABS / Not stated
Description: This second-row vanity and dome lamp combo shares a single LED circuit board to serve both vanity and courtesy/reading light functions. Additional features include a light ramp-up intensity feature to provide a luxury feel for Lincoln customers. Molded-in-hooks and snaps on the back of the vanity bezel helped eliminate 4 J-clips, 4 high-retention clips, 4 screws and screw caps, plus labor during vehicle assembly. The resulting system saves 2.02 lb / vehicle vs. previous systems and saved $4/unit direct and $8/vehicle indirect costs vs. separately packaged units.
SEAT-CONTROLS PLASTIC-MODULE BRACKET
OEM Make & Model: Ford Motor Co. 2012 MY Ford Escape SUV / Kuga SUV
Tier Supplier/Processor: Magna Seating LVSS / Genesis
Material Supplier / Toolmaker: BASF Corp. / ETCS Inc.
Material / Process: Ultramid A3WG6 PA 6/6 30% GF / Injection molding
Description: This plastic module bracket for seat controls replaced a steel stamping manufactured in progressive dies with an injection-molded 30% glass-reinforced PA 6/6 material. The approach saves 805 g of weight per vehicle vs. the previous design and only is required on 31% of seats whereas the previous design was used on 100% of seats, reducing the number of parts that must be managed, controlled, and installed and lowering the potential for failure modes. Further, it reduces parts from 2 to 1 and increases design frequency from 30 Hz to 61 Hz, eliminating potential NVH issues via a tripod mounting approach with honeycomb construction. It also eliminated $260,000 in tooling costs and piece-costs were reduced $0.15/set.
OVERMOLD-CUSHION SUSPENSION
OEM Make & Model: Ford Motor Co. 2012 MY Ford Escape SUV & Kuga CUV
Tier Supplier/Processor: Flex-O-Lators Div. of Leggett & Platt Inc.
Material Supplier / Toolmaker: Washington Penn / Advanced Mold Engineering Inc.
Material / Process: PPC5UF0 PP / Injection molding
Description: The injection-molded PP design reduces part count from 6 to 1 / seat, piece cost $0.56 per seat, tooling costs $288,000, and per-vehicle mass by 1.93 kg vs. the previous design. The single-piece design provides wire harness routing and retention, seat-cushion and back-trim retention, and climate-control system retention - functionality that previously required 6 parts to achieve. Now there are 5 fewer parts to manage, control, and install and fewer opportunities for potential failure modes.
CATEGORY: Chassis / Hardware
PLASTIC RATCHETING-STUD INSERT
OEM Make & Model: General Motors Co. 2012 MY Chevrolet Camaro sports car
Tier Supplier/Processor: ITW Super Products / ITW Shanghai
Material Supplier / Toolmaker: Mitsubishi Engineering Plastics / Donglei Shanghai
Material / Process: Lupital F20-03 POM / Injection molding
Description: This all-plastic, self-centering ratcheting insert replaces metal nuts and allows for a much quicker load / hold (vs. traditional nut / bolt). The POM insert also acts as an isolator to protect the assembly from corrosion, paint chipping, and noise while achieving over 100 lb in pull-force retention. Weight is also reduced 50% and assembly time and warranty costs are reduced.
OUTER BELT WEATHERSTRIP HIDDEN FASTENER RETENTION
OEM Make & Model: Ford Motor Co. 2011 MY Ford All Focus compact cars (globally)
Tier Supplier/Processor: Henniges Automotive / MANUFACTURAS MAHER II, S.L .
Material Supplier / Toolmaker: BASF Corp. / Camoplast Inc.
Material / Process: Ultramid polyamide 6/6 / Injection molding
Description: The outer belt weatherstrip eliminates a threaded steel fastener and utilizes a plastic clip retainer. This is industry's first injection-molded plastic output pinion, which ensures functionality for 6-way locating with just 1 clip. Tough PA 6/6 provides robustness for impact resistance and holding force even after heat aging and high-pressure car washing. The application led to a 70% weight reduction, direct cost savings of $850,000 annually and an indirect savings of $450,000 each year.
POWER-WINDOW MOTOR OUTPUT GEAR & SHAFT
OEM Make & Model: Ford Motor Co. 2011 MY Ford All Focus compact cars (globally)
Material Supplier / Toolmaker: DuPont Automotive / Camoplast Inc.
Material / Process: Hytrel TPC-ET polyester / Injection molding
Description: This power-window motor changed from a steel output pinion to a new injection-molded polyester one for a quieter/lighter motor to meet customer targets while still complying with window velocities. It is industry's first plastic output pinion that ensures functionality. Additionally, the design allows for regulator plug-'n-play capability into the power drum for better motion control. Packaging of the involute onto the spline gear to the accommodating drum spline was critical to the customer. The application saved $450,000 USD direct and $250,000 indirect cost savings annually
CATEGORY: Environmental
RECYCLED MATERIALS FROM GULF OF MEXICO OIL SPILL
OEM Make & Model: General Motors Co. 2011 MY Chevrolet Volt extended-range EV
Tier Supplier/Processor: GDC Inc. / Not Stated
Material Supplier / Toolmaker: Mobile Fluid Recovery, Inc. / Not Stated
Material / Process: Enduraprene 2395 PP/PE/SBR / Multiple
Description: This project demonstrates how engineers came to aid the Gulf of Mexico coast community to improve the response efforts to the oil spill and to conserve resources. Air-baffle components were molded from 100%-recycled material comprised of 25% PP Gulf oil-boom absorbent (recycled previously from automotive waste), 25% Milford Proving Ground test tires, and 25% polymer packaging aids from other General Motors' facilities, plus 25% post consumer PE bottles.
LOADFLOOR USING COCONUT FELT NAME
OEM Make & Model: Ford Motor Co. 2012 MY Ford Focus BEV
Description: This loadfloor uses coconut fiber agricultural waste for reinforcement of the polymer matrix. The coir fibers are carded and needle punched to create a mat and then calendared inline to achieve the desired thickness before being die-cut to shape and assembled with other components. This provides income to farmers and reuses a waste material that otherwise would have little market usefulness.
BIO-FOAM FOR INSTRUMENT PANEL
OEM Make & Model: Ford Motor Co. 2012 MY Ford Focus compact car
Material Supplier / Toolmaker: BASF Corp. / Not Stated
Material / Process: Elastofoam Balance 27730 & 27731 PUR foam / Foam in place
Description: The use of bio-based components for the polyurethane foam in this application provides a partially sustainable alternative to conventional urethanes with 100% petroleum inputs. By reducing petroleum-based content, the carbon footprint of vehicles is reduced, thanks to the CO2 sequestering plants do during their growth cycle. The bio-foam also provides softness for this foam-in-place application, which required no tooling changes and was cost neutral.
REDUCED-VOC HYDROGRAPHICS
OEM Make & Model: Chrysler Group LLC 2011 MY Chrysler 300 luxury sedan
Description: The supplier's proprietary E-Cubic process eliminates the need for top coating and reduces VOCs vs. conventional hydrographics, paint, and in-mold film use while providing unique decorating features, including dual gloss levels and 3D texturing.
RENEWABLY SOURCED PA FOR BIODIESEL FUEL LINES
OEM Make & Model: Fiat S.p.A. 2011 MY Fiat Diesel engines, various models
Tier Supplier/Processor: Hutchinson
Material Supplier / Toolmaker: DuPont Automotive / Not Stated
Material / Process: Zytel RS 1610 PA 10/10 / Extrusion
Description: This is the first automotive use of PA 10/10 and the first bio-based PA 10/10 application. It is used in a diesel fuel line replacing PA 12. The bio-based resin provides superior temperature and chemical resistance, as well as heat-aging performance in biodiesel fuel blends vs. PA 12. This specific composition also contains a minimum of 60% bio content by weight for a more sustainable solution.
CATEGORY: Materials
VOLCANIC-FILLER PILLAR TRIM
OEM Make & Model: Hyundai-Kia Automotive Group 2011 MY Kia Pride subcompact & Optima mid-size sedan and Hyundai Elantra compact car
Tier Supplier/Processor: Plakor Co. Ltd.
Material Supplier / Toolmaker: Hyundai EP Co. Ltd. / Not Stated
Material / Process: Supol HL345CL PP / Injection molding
Description: This lightweight, injection-molded PP pillar trim provides the texture and appearance of more costly fabric-wrapped trim through use of a unique filler combination consisting of volcanic rock, fiber pile, and glass spheres replacing talc-filled PP and fabric-wrapped PP. No special tooling was required but process control was important so as not to crush the glass spheres and to distribute the fiber pile evenly during compounding and molding. A 10% weight and a 50% direct cost savings was achieved. Other benefits gained from using the volcanic mineral are that it emits negative ions (to reduce pollutants) and far-infrared energy.
TRANSMISSION COMPONENTS IN FLUOROELASTOMERS
OEM Make & Model: General Motors Co. 2011 MY All GM Vehicles using 6L45, 6L50, 6L80, & 6L90 transmissions
Tier Supplier/Processor: Robert Bosch LLC / Freudenberg-NOK
Material Supplier / Toolmaker: Freudenberg-NOK / Freudenberg-NOK
Material / Process: FluoroXprene B FKM & ETFE / Injection molding
Description: Replacing both injection molded PA and conventional rubber, a new multi-patented fluoropolymer offers the chemical resistance of FKM with the rapid processing of thermoplastics. It also provides excellent compression set over the range of application temperatures, good permeation and fluid resistance vs. traditional fluorinated TPVs and TPEs, while solving a warranty issue and preventing seal failure, which can lead to electrical shorts. The unique 2-phase morphology of the material allows the ratio to be manipulated to produce either TPV or TPE formulations. Zero-waste, single-cavity direct injection leads to no scrap.
EP BIO-BASED POLYESTER POLYMER
OEM Make & Model: Toyota Motor Co. 2011 MY Toyota Prius "A" Alpha station wagon
Tier Supplier/Processor: Kojima Press Industry Co., Ltd. / Howa Plastics Co., Ltd.
Material Supplier / Toolmaker: DuPont Automotive / Not Stated
Material / Process: Sorona EP 2045 PTT / Not stated
Description: This is the first use of polytrimethylene terephthalate (PTT), an entirely new thermoplastic polyester that also happens to be bio-based. This high-temperature thermoplastic polyester delivers improved performance (vs. PBT and PET), including higher stiffness and strength, higher use temperature but lower melt temperature at a lower specific gravity. Despite the fact that it contains 45% glass, it provides excellent surface finish, allowing elimination of a paint operation and the VOC and costs associated with painting. In addition, its bio-based content provides for CO2 reduction and a more sustainable solution.
CATEGORY: Powertrain
PLASTIC TRANSMISSION ACCUMULATOR PISTON
OEM Make & Model: Chrysler Group LLC 2012 MY All Chrysler Vehicles with Automatic Transmissions
Tier Supplier/Processor: Chrysler Group LLC / Freudenberg-NOK Sealing Technologies
Material Supplier / Toolmaker: Chevron-Phillips Chemical Co. LLC / Freudenberg-NOK Sealing Technologies
Material / Process: Ryton R-Y-120 PPS / Injection molding
Description: This molded plastic transmission accumulator piston was designed around the current application so that the bore, seal rings, and return springs did not have to be changed and it was a drop-in replacement. Maximum effort went into material choice (PPS) and model shape to achieve the appropriate toughness to handle time, temperature, pressure, and combined cycling to create a 200,000-mile capable piston. The resulting part is 29 g vs. typical 47 g for aluminum pistons. A direct thermoplastic injection technology was developed to produce the parts, resulting in zero material waste through the use of a single-cavity design. The process allowed for a 33% improvement in cycle times and reduces the total floor space required by 20% over previous multi-cavity processes. The change in philosophy also eliminated the need for material regrind / reclamation equipment and lowered total capital expenditures. The innovative approach used here has allowed for a modular business cell that is adaptable to large market-volume fluctuations.
NI-MH BATTERY PACKAGE FOR HEV
OEM Make & Model: Volkswagen AG 2010 MY Volkswagen® Touareg® hybrid CUV
Tier Supplier/Processor: Sanyo Electric / Not Stated
Material Supplier / Toolmaker: SABIC Innovative Plastics / Not Stated
Material / Process: Noryl SE100P M-PPE / Injection molding
Description: Injection molded modified-PPE resin was used for this compact Ni-MH battery module package, providing greater dimensional accuracy than glass-reinforced PBT and lower weight vs. glass-reinforced PPE/PS. The resulting assembly is 50% lighter than it would have been in competitive GR-PBT and 10% lighter than GR-PPE/PS, making it the best material choice for the required properties at low weight.
BATTERY PACK
OEM Make & Model: General Motors Co. 2011 MY Chevrolet Volt extended-range EV
Tier Supplier/Processor: General Motors Co. / MANN+HUMMEL GmbH
Material Supplier / Toolmaker: BASF Corp. / Omega Corp.
Material / Process: Ultramid 1503-2F PA 6/6 33% GF, HS / Injection molding
Description: Thermoplastic battery frames are an integral part of electric-vehicle thermal management, channeling coolant to and from the cells. The use of injection-molded hydrolysis-resistant PA 6/6 for thermal-cycling management is a lightweight enabling material for this design, which required exacting manufacturing consistency and high levels of repeatability and reproducibility.
CATEGORY: Process / Assembly / Enabling Technologies
INTEGRATED LIFTGATE TRIM GRAB HANDLE
OEM Make & Model: Ford Motor Co. 2012 MY Ford Focus compact hatchback
Tier Supplier/Processor: NYX Inc.
Material Supplier / Toolmaker: Not Stated / Aalbers Tool
Material / Process: PP / Injection molding
Description: Through design and tooling innovations, the injection-molded polypropylene liftgate grab handle was molded in a single piece vs. previous 2-piece assemblies thanks to 3 large cavity-side slides in the tool. The innovation saved 0.1 lb and $0.60 USD / vehicle.
COMPOSITE WHEEL WEIGHTS
OEM Make & Model: General Motors Co. 2011 MY Cadillac CTS sedan & Corvette sports car
Tier Supplier/Processor: ESYS Automation / 3M
Material Supplier / Toolmaker: 3M / ESYS Automation
Material / Process: 3M proprietary / Extrusion
Description: This innovation uses extrusion of a highly filled polymer and automation equipment to provide significant product flexibility and performance improvements that, for the first time, enable fully automated tire balance weight installation. Replacing stamped, painted steel parts that required manual installation, and reducing the SKUs from 24 to 1, the innovation uses large spools of wheel weights in tape form with an adhesive backing that can be automatically cut and applied very accurately to reduce labor, scrap, application cycles, and an average of 0.3-0.5 grams of excess weight per wheel.
MUCELL INSTRUMENT PANEL
OEM Make & Model: Ford Motor Co. 2012 MY Ford® Escape® compact SUV & Kuga® compact CUV
Material / Process: Stamax EXRP-49 30YK270 & AP3335-HF long glass / 30% talc-filled PP / Microcellular injection molding
Description: This is the largest automotive component molded in the patented MuCell injection-molding process and the first instrument panel to be molded in this process. By creating the part in microcellular foam, weight is reduced over 1 lb, mechanicals are improved, cycle time is reduced 10%, and clamp tonnage is reduced 45%, saving an estimated $2 / vehicle vs. solid injection molding.
CATEGORY: Safety
REINFORCED AIRBAG LID IN FOAM (RALF)
OEM Make & Model: Ford Motor Co. 2011 MY Ford Focus compact car
Tier Supplier/Processor: Faurecia Interior Systems
Material Supplier / Toolmaker: Not stated / Not stated
Material / Process: PET & PUR / Not stated
Description: RALF technology is an optimized instrument panel / passenger airbag door system that uses a reinforced structural 3D-skeleton of PET mesh textile and polyurethane foam lid. RALF replaces the traditional metal or plastic airbag lid door and offers much improved airbag lid positioning with less risk of windshield breakage. It offers significant weight savings over traditional foam-in-place airbag construction and is cost-neutral.
UNDERTRAY WITH PEDESTRIAN-SAFETY FUNCTIONALITY
OEM Make & Model: Ford Motor Co. 2011 MY Ford C-Max world car
Tier Supplier/Processor: Faurecia
Material Supplier / Toolmaker: SABIC Innovative Plastics / Not stated
Material / Process: Xenoy iQ1103R PC/PBT / Injection molding
Description: The undertray structure was uniquely designed with "spring-back action" to help the vehicle achieve a Euro-NCAP 5 Star rating while eliminating the need for a separate lower spoiler, saving 1.5-2.0 kg of weight and $10-15 in extra cost. The lightweight corrugated structure incorporates other functional requirements, including air guides for air intake to cool the tower assembly and to meet stone chipping requirements. The PC/PBT resin used to injection mold this part is upcycled from post-consumer plastic waste, reducing landfill burden and hydrocarbon-fuel consumption while providing excellent impact resistance.
PEDESTRIAN-SAFETY UPPER LOAD PATH
OEM Make & Model: Range Rover 2011 MY Range Rover Evoque CUV
Tier Supplier/Processor: Magna International Inc.
Material Supplier / Toolmaker: SABIC Innovative Plastics / Not Stated
Material / Process: Xenoy iQ1103R PC/PBT / Injection molding
Description: This 1-piece injection-molded fascia reinforcement eliminates the need for support brackets and offers tuned stiffness to control lower-leg kinematics during pedestrian impact with this cross-over utility vehicle (CUV). The fascia reinforcement, also tuned for pedestrian protection, eliminates the need for an additional energy absorber in front of the bumper beam. Good lateral rigidity and creep behavior minimizes sag during sun load. Molded-in air intake guides bring cooling air to the intercooler. The upcycled PC/PBT material used in this application is reclaimed from post-consumer plastic waste, reducing landfill burden and hydrocarbon fuel needs. The application reduced weight 20% by eliminating the metal bracket. Another 0.5-1.0 kg of weight was saved by eliminating the need for the foam energy absorber.
For more information about the SPE Automotive Innovation Awards Competition and Gala, visit the SPE Automotive Division website.
Stories about the pioneering plastics plastics firms can be fascinating, and this is one of the best. The Milan News-Leader posted a great story yesterday about a local injection molder, Wolverine Plastics Inc.
The firm apparently went out of business in the 1970s. But in 1957 it was in the public spotlight -- a big two-page feature spread in Life magazine.
But Martha Churchill, a freelance writer and local historian who wrote the feature for the News-Leader calls the Life feature "totally bunk."
I won't repeat her research here -- check her story for all the details.
She says the Life article paints a "fairy tale" about a small town with folksy businessmen who built a terrific injection molder that employed a big chunk of Milan's populace making parts for General Motors.
Defects and malfunctions can be fixed, but design problems are forever. And auto interiors are full of them, according to a new report from J.D. Power and Associates.
According to the 2011 U.S. Interior Quality and Satisfaction Study, released today, design problems account for a majority of the quality issues that new owners have with vehicle interiors.
The top five most frequently reported problems: material scuffs/soils easily; cruise control difficult to use/controls in poor location; cup holders difficult to use; center console difficult to use; and door locks difficult to use/controls in poor location.
I come across reviews all the time where journalists complain about the plastics in new cars. The material isn't mentioned specifically in this report -- the emphasis here is more on the design than material selection.
Owners reported an average of 17.2 problems per 100 vehicles related to the vehicle interior, and 11.6 per 100 are the result of design issues, according to the report.
Allan Dix, research director of automotive product quality at J.D. Power and Associates, noted that interior comfort is very important to buyers.
"In fact, more than one-half of new-vehicle buyers cite interior comfort as one of the most important factors in choosing a vehicle," he said. "As a result, it's crucial to improve on interior design issues -- such as difficulty using the center console or door locks -- as these are issues that can really make a difference to the overall vehicle ownership experience."
The study is based on responses from more than 73,000 new-vehicle owners who purchased a 2011 model-year vehicle. The study was fielded between February and May 2011.
If you're an auto supplier, you're talking resin pricing
Processors of all types have been dealing with rising prices for many commodity and engineering resins this year. For auto suppliers like Magna International Inc., that signals the start of negotiations on who pays for the increases.
Magna CEO Don Walker recently talked to Automotive News senior writer David Sedgwick about the company's purchasing strategy, including dealing with rising resin prices.
Here are a few of the plastics-related highlights from the interview:
We're told that suppliers generally get compensated for the rising price of copper, aluminum and steel. But we hear that plastic resin has been a headache.
"Resin is a bit of an odd one. It's hard to figure out what the cost drivers really are. Quite often, the resin suppliers don't even care about the auto industry because they have other [customers]. So they'll say, 'We'll give you this price if the economy is up, or that price if the economy is down. And if you don't like it, don't buy it.'"
Are your customers compensating you for the rising cost of plastic resin?
"Typically it takes a bit of time, and you have to have a lot of discussions. If [resin costs] go up 25 percent, the car companies will expect us to do something to mitigate it. It's never a straight pass-through. Hopefully it's an intelligent and relatively fair negotiation. [Customers] who are not fair will pay the price later."
Are automakers getting more realistic about raw material costs?
"I would say they are reasonable. But we still usually have a delay of three to six months. There are a lot of discussions going on right now."
U.S. manufacturing is at a "critical crossroads" according to a new report from consulting firm Booz & Co., with the plastics sector "on the edge" -- it could become a global competitor or see its operations displaced to other countries.
The report, "Manufacturing's Wake-Up Call" (PDF), warns that manufacturers and policymakers are at a true crossroads.
If things go well, U.S. manufacturing could account for 95% of all products Americans consume. But if they don't, output could drop by half.
Today, U.S. manufacturers provide about 75% of the products that Americans consume.
"As labor costs and currency rates play a smaller part in manufacturing decisions, there is an opportunity for U.S. business leaders and policymakers to rise to the challenge and create conditions that support manufacturing," said Arvind Kaushal, a partner at Booz & Co,
"The potential for a rebound is there, but only if the right actions are taken," he said.
The report breaks down each manufacturing segment, classifying their prospects into four different categories:
Global leaders. Aerospace, chemicals, machinery, medical equipment, and semiconductor industries have a critical worldwide advantage stemming from their high investment scale, established intellectual property, skilled workforces, and close ties with customers.
Regional powers. Food, beverages, and tobacco; nonmetallic mineral products; wood products, and petroleum coal segments, among others, benefit from the U.S. as their largest market. Mexico and Canada offer additional markets for these companies.
On the edge. Paper, plastics, electrical equipment and components, computer equipment, fabricated metal products, pharmaceuticals, printing, and certain automotive equipment companies are besieged by low-cost overseas competitors. They could become global competitors themselves or see their operations displaced to other countries.
Niche players. Textiles, apparel, leather, furniture, and appliances companies serve small-scale niche markets through domestic operations, while most production is outside the United States.
Plastics may fall into the "on the edge" category, but just as important to Plastics Blog readers are the various important end markets. And the inclusion of chemicals in the "global leaders" category is still a potential plus, since U.S. manufacturers may benefit if their domestic suppliers remain strong.
The report calls for the private sector and policymakers to concentrate on four actions to provide the greatest momentum for manufacturing:
Think and grow regionally. The U.S. needs to build a better future with Mexico, shifting less-demanding, labor-intensive processes to that country while helping to build a safer consumer economy there and retaining highly skilled work in the United States.
Develop and attract skilled talent. The U.S. needs more robust manufacturing education programs, immigration reform, and promoting the attractiveness of manufacturing careers.
Foster high-impact clusters. The public and private sectors can build geographical concentrations of suppliers, service providers and academic institutions, reinforced by investments in infrastructure.
Simplify and streamline the tax and regulatory structure. The official U.S. statutory corporate tax rate stands at 39%. Closing the gap between statutory and effective rates (typically 28%) would be a revenue-neutral way to put U.S. manufacturing on a level global playing field.
Now that we're 14 months away from a presidential election, I imagine that some candidates will embrace parts of this report -- at least the parts they agree with. (Do you expect anyone to stick their neck out for immigration reform?)
But if that translates to a real, comprehensive manufacturing policy from Washington is a longshot at best.
Boeing's 787 Dreamliner has been getting attention for years for its extensive use of lightweight composite plastics. But last week, when the company unveiled the first 787 ready for delivery, it was a pair of "simpler plastic innovations" that caught the eye of the Seattle Post-Intelligencer's Aubrey Cohen.
Cohen, writing in the SeattlePI's aerospace blog, mentioned the improved cupholders in the Dreamliner.
They include a fold-down cup holder above the tray table, plus another fold-down cup holder on the underside of the tray table.
"One down side of these kinds of cup holders is that they don't do a great job holding larger cups. But the lousy little cups that airlines hand out should fit just fine," Cohen wrote.
In the comments section, readers point out that the cupholders aren't brand-new features. Seat suppliers have offered the improved drink accessories for a while, and Boeing seems to have picked up the option on the 787.
So if you haven't seen an improved cupholder on a flight yet, don't worry, you probably won't have to wait until you're on a Dreamliner.
Will it be long before airlines learn a lesson from automakers and really start to go overboard with multiple cupholders?
With the Dow Jones average jumping back and forth, and unemployment staying high, it's natural for plastics executives to be concerned.
Wilbur Ross, the owner/founder of one of the industry's biggest companies, International Automotive Components, shared his views on stock prices and the economy in an interview yesterday with National Public Radio.
Ross sees no recession ahead, but instead a stumbling economy that will grow very slowly.
He also talks about why the unemployment rate will remain high, essentially because to compete manufacturers are investing in automation -- sound familiar?
Host Steve Inskeep asks Ross: "What do you think, as someone [who] observes and tries to understand the markets in the broader economy, is the reason that the economy would just be, as you put it, stumbling along and not really taking off?"
Ross replies:
Well, I think there's several factors. No. 1 is we believe that unemployment is going to remain high. Virtually all companies we know of have learned to live with fewer employees per incremental dollar of sales than they ever had before. So we believe that part of the high unemployment is due, not just cyclical factors, but to structural change in the economy. And that's why corporate America is in much better shape than Mr. and Mrs. America. ...
The substitution of capital for labor has been continuing. I think that people have also restructured the way that they do business, all with an eye toward reducing labor costs. And you've seen those big gains in productivity. June was the first month where productivity didn't really go up, actually it declined a little bit. And that's the first month in many, many months where there hasn't been a big productivity gain. So I think that's a problem and it's going to be a continuing problem, partly because the American educational system is not producing people with the qualifications to do the jobs in the new economy.
It's an interesting perspective. When I watch the Sunday morning news-interview programs, I keep hearing commentators blame the lack of better employment figures on businesses that are sitting on cash rather than hiring additional workers.
But in the manufacturing sector, hiring is only going to pick up when companies need additional workers to keep up with demand. The recession delivered a punch in the gut to manufacturers that weren't pursuing a lean strategy. It will take a while before they forget that lesson.
Many Plastics Blog readers in the Detroit area, including those in the auto industry, knew Eleanor Josaitis.
Josaitis died this morning of cancer at Angela Hospice in Livonia, Mich. She was 79.
According toCrain's Detroit Business, Josaitis and the late Rev. William Cunningham founded Focus: HOPE in 1967, following the Detroit riots, to bridge the racial divide in Southeast Michigan.
Focus: HOPE's training programs have been a regular part of the auto industry in Detroit for decades. Its graduates have gone on to work for both automakers and suppliers, including many in the plastics industry.
According to Rhoda Miel, PN's staff reporter in Detroit, the job training program is part of a larger community outreach program in Detroit, and Josaitis was a regular feature at the University of Michigan Management Briefing Seminars, where she led selected students throughout the week.
"They didn't just meet and greet," Rhoda said. "On days when many people were out on the golf course, the Focus: HOPE students could be found listening intently to panel discussions and taking notes.
"Eleanor continually introduced students to executives as well as to us in the media so they could work on personal interaction skills, and she was always pleased to hear when they'd take the initiative on their own to introduce themselves, find out about you, discuss topics of concern to the industry and such," Rhoda said.
Joe Wilssens, the freelance photographer who many know from his work shooting pictures for Plastics News events, asked me to honor Josaitis today -- and I can think of no better way than sharing this photo that Joe took in 2005, of Josaitis and a group of Focus: HOPE students at the Management Briefing Seminars.
Check the links for more details on Josaitis, and enjoy Joe's terrific photo -- it really says it all.
Sergio Marchionne, CEO of Fiat SpA and Chrysler Group LLC, came to the auto industry's annual Management Briefing Seminars Aug. 3 to discuss the state of the industry, both in North America and globally.
Both in his public presentation and in a separate session with journalists, Marchionne addressed questions of how Chrysler will reach the proposed corporate average fuel economy standard of 54.5 miles per gallon in 2025, Fiat and Chrysler's plans in China, the upcoming labor discussions with the United Auto Workers in the U.S. and a variety of other topics.
Catch a snippet from Marchionne's press conference here, courtesy of Rhoda Miel, Plastics News' staff reporter who is covering the seminars again this year. Marchionne discusses his thoughts on the economy in general and why job growth seems so slow.
And check back with Plastics News online for updates on the web and on Twitter this week, as well as more coverage in print and future videos, including Marchionne's thoughts on why the new CAFE standards will be a "stimulus" for the auto industry.
Our sister publication in Europe, European Plastics News, recently sponsored a conference in Brussels on advanced injection molding technologies.
Today EPN posted a video report from the Advanced Moulding Technologies conference, interviewing experts from A. Schulman, Rochling Automotive, Transtech, Sumitomo Demag Plastics Machinery, DME. The executives talk about their presentations, and about the biggest challenges facing molders over the next 12 months.
Check out the video for a quick recap on the conference.
Toyota Motor Corp.'s lean manufacturing guidelines, called the Toyota Production System, already has become and industry standard, adapted across the manufacturing spectrum.
Now the automaker is extending its TPS management systems to schools, hospitals and non-profits across the United States to help them get more out of donor and taxpayer dollars.
"In today's challenging economy, non-profits across the U.S. are under increasing pressure to provide more services for more people - with fewer resources," said Yoshimi Inaba, president and chief operating officer of Toyota Motor North America Inc., when he introduced the program at the Clinton Global Initiative meeting in Chicago on June 29.
"By sharing the techniques of the Toyota Production System, we hope to help these vital organizations increase productivity and efficiency, while decreasing costs and retaining jobs."
Toyota is already working with groups like the St. Bernard Project, which is building homes in New Orleans, and has tested it with pilot programs in New York and Pittsburgh. It noted successes already in those two cities:
Long wait times at the Community Kitchen & Food Pantry in Harlem (part of the Food Bank for New York City) were reduced from more than an hour to just 18 minutes by improving processes in meal services; and,
At Allegheny General Hospital in Pittsburgh, applying Toyota's renowned "just in time" supply process to the delivery of pharmacy supplies dramatically cut down on waste and is projected to save the hospital $391,000 per year.
Toyota will operate the program through its Toyota Production System Support Center in Erlanger, Ky.
(Thanks to Plastics News staff reporter Rhoda Miel for contributing this item.)
Plastics News has written hundreds of inches of copy on the plastic-bodied Think car. But it looks -- once again -- like the company is in serious financial trouble. And despite growing global interest in electric vehicles, this time the company might not get another chance.
Our sister publication Automotive News Europeis reporting today that Norway's Think Global AS has filed for bankruptcy.
Incredibly, this is the fourth time that the company has collapsed financially in its 20-year history.
According to ANE's Douglas A Bolduc, this time liquidation is a possibility.
The company has a wholly owned U.S. subsidiary, Think North America, which has a manufacturing plant in Elkhart, Ind. The location was considered a plus since local RV suppliers have plastics expertise that can help a low-volume automaker like Think.
But while the U.S. subsidiary is a separate entity, its future now is in doubt because it is financially supported by the parent company.
Plastics News staff reporter Rhoda Miel visited the Elkhart plant a few months ago. Check out this story, with a link to a video report, for more on the company, including plenty of plastics-specific details.
You may recall that Think was owned by Ford Motor Co. from mid-1999 until January 2003.
Think's most recent troubles were signaled a few weeks ago, when battery maker Ener1 Inc. said it would return its 31 percent stake in the Norwegian company and take a $73.3 million write-down on the investment.
At the risk of giving readers the impression that Ford vehicles are made of mushrooms and recycled carpeting, here's another post on how the automaker is highlighting its use of sustainable materials.
Ford Motor Co. today put out a news release on how it is using EcoLon nylon, made from 100 percent recycled carpet, to make cylinder head covers.
Ford said the cover is "the first automotive product of its kind manufactured from post-consumer recycled nylon," and is used in the Escape, Fusion, Mustang and F-150
To date, the program has saved more than 4.1 million pounds of carpet from landfills, the equivalent of nearly 154 football fields.
"By working with Wellman and Dana, Ford has found a way to bring green applications to a new, unique location in our vehicles," said Brett Hinds, Ford manager, engine design. "This single use has made an incredible impact, and we're continuing to look for ways to expand the use."
Just how much does Ford like mushroom-based plastics?
Ford Motor Co. has a well documented history of using bio-based polymers. But mushrooms? That's the word from Ecovative Design LLC, a Green Island, N.Y.-based company that makes polymers from agricultural waste.
The news is all over the environmental blogs this week. This one is reporting that Deborah Mielewski, head of Ford's plastic research department, is interested in using Ecovative's mushroom foam "to replace 30 pounds of each car's petroleum-based foams with more environmentally sensible alternatives."
I was surprised to see the story explode in blogland. I had to go back a few days to find the source. It was this press release announcing that Mielewski and Ford research engineer Angela Harris will give presentations at the upcoming BioPlastek 2011 Forum, set for June 27-29 in New York.
"Ms. Harris' presentation will outline Ford's R&D process for finding and developing novel bio-based material solutions that meet the rigorous requirements for automotive, highlighting key technical obstacles that must be overcome before widespread usage of these materials takes place," the release said.
Ford was the first major automaker in North America to begin using soy foam blends (in the Mustang), and the company has also used natural fiber-reinforced composites. It will be interesting to see just how committed Ford will be to using mushroom-based plastics.
For more about Ecovative Design, check out this video. Note that co-founder and CEO Eben Bayer isn't a big fan of polystyrene, and he makes a special effort to call the company's Ecocradle a "polymer," rather than a bio-based plastic.
The impact of Japan's March 11 earthquake on the automotive supply chain has been well documented. How about other sectors? (Watch both Plastics News and www.autonews.com for updates).
Electronics is an obvious one. The Wall Street Journal has a story in its Asia Technology section today, "Chemical Reaction: iPod Is Short Key Material." According to the report, the shutdown of a Kureha Corp. polyvinylidene fluoride plant in Japan has created a shortage of lithium-ion batteries for Apple Inc.'s iPods.
Have you heard of other supply chain problems that have been a result of the earthquake and tsunami? Share them with me, we'll check them out.
I've noticed some manufacturing experts talking about what lessons OEMs will learn from this disaster. I don't think this is a new lesson -- remember how OEMs reacted in the aftermath of Hurricane Katrina in 2008? But it does reinforce the value of shorter supply chains, and multiple vendors, at least when it comes to critical, non-commodity products.
Dustin Walsh, author of the "Shifting Gears" blog for Crain's Detroit Business, has a good column today on auto suppliers' efforts to get more information about how the earthquake and tsunami will impact their business.
"Information is premium right now and we're not getting a lot of it," Mike Wall, senior manager of strategic analysis for Northville, Mich.-based IHS Automotive Inc., told Walsh. "We've heard that automakers haven't even reached their suppliers, so the affect to the supply chain remains unknown."
Many companies have already reported that their operations were unaffected by the earthquake and tsunami.
But there are still big question marks about how they will deal with production stoppages, electricity shortages and concern about damaged nuclear-power plants.
Crain's Detroit Business -- and Plastics News, for that matter -- will stay on top of the latest information thanks to our colleagues from sister publication Automotive News.
The plastic part that could save 1.5 billion gallons of fuel
Most industries are short-sighted. They put off investing in products that could save energy, even when the payoff is proven and relatively fast.
Case in point, the trucking industry. According to this story from Scientific American (reprinted from Climatewire), the U.S. Department of Energy claims that if every long-haul truck in America would install a set of plastic fairings in front of the wheels under the trailer, it would cut fuel use 7-12 percent.
That would save 1.5 billion gallons of fuel a year.
The fuel savings would pay for the part within six to 18 months, according to Mitch Greenberg, president of SmartTruck, one of the Greenville, S.C., companies that developed the product.
The Ecological Plastic is produced using less petroleum for manufacturing and additionally will limit the vehicles overall carbon emission. This development will contribute to Toyota's overall goal of going green and not hurting the environment.
It's interesting that this dealer finds it worthy enough to put out a news release on the material. One of my colleagues at Automotive News noticed it today, and I imagine some sustainability-minded car buyers will stumble across it online as well.
Röchling Automotive Group is looking for a site for a $15 million U.S. plant.
That's the news from the Akron, Ohio, Beacon Journal, which had a story about the project in its Jan. 11 issue.
According to staff writer Stephanie Warsmith, Röchling has narrowed the search down to four cities. The company plans to choose a site by the end of January.
Akron officials aren't sure what other cities are being considered, but they said two are in northeast Ohio and one is in Michigan.
The company wants to build a 75,000-square-foot plant that would employ 115 within three years.
The story quotes Brent Hendren, with the city's department of economic development.
Here's a cool bit of video that Plastics News Detroit-based reporter Rhoda Miel noticed today. It's a time-lapse video from General Motors showing a Chevrolet Volt being assembled in Hamtramck.
There are lots of robots, and with the time-lapse technology the whole thing takes about 90 seconds.
Rhoda offered this plastics-related play-by-play: You can see the instrument panel going in at 48 seconds (if anyone has ever wondered how they do that -- it's with the doors removed, with assist tooling) the lithium-ion battery pack going together at 53 seconds and the electric drive train installed -- from beneath the car -- shortly after that.
The seats are installed at 1:19, then the doors are reattached.
Emerging trend: custom graphics for car exteriors?
An item in The Wall Street Journal's "Driver's Seat" blog caught my eye today, about a product that seems like a potential growth market for plastics companies.
According to the post, Nissan Motor Co. is working with a company called Original Wraps Inc. to offer custom graphics for Nissan vehicles.
The stick-on designs go beyond old-fashioned racing stripes to include a variety of patterns and designs.
Other carmakers also offer body wrap decorations, as well as aftermarket firms.
Makes sense, doesn't it? Young people who are spending money getting body art -- like tattoos and piercings -- are naturally going to be more interested in decorating/personalizing their vehicles too.
I won't be surprised if this sort of product becomes a lot more common in the next few years.
Forbes magazine has an interesting little story in its Sept. 13 issue about Ford Motor Co.'s research into car interior odors.
According to the story, Ford employs five engineers "with exceptionally sensitive noses" who are focused on making sure their cars and trucks don't smell bad.
In fact, their "ultimate goal," according to the story, is to find a scent that "produces a sense of well-being inside a Ford."
This seems like an area where plastics materials suppliers and molders could create new products. My suggestions:
Ford 150 trucks should smell like hot coffee and donuts, perhaps with a hint of chewing tobacco or unfiltered cigarettes.
The Mustang should smell like Axe ... or Old Spice.
The Fusion Hybrid should smell like granola.
The Lincoln MKX should smell like bank lobbies and putting greens.
Faurecia SA has launched a corporate giving program to support the communities where it has a presence throughout North America.
The program, called FUELS (for Faurecia Unites with Employees for Local Service), will involve more than 9,000 Faurecia employees in the U.S., Canada and Mexico. The goal is to contribute to the fight against hunger.
Each of Faurecia's 34 sites throughout North America will collect non-perishable food items to donate to its food bank of choice, where employees will also spend time volunteering.
Auburn Hills, Mich.-based Faurecia North America also is setting up a competition among its plants. Sites that meet a collection goal will receive a $500 donation for its local food bank, and the site that collects the most pounds per person in the U.S./Canada and in Mexico each will receive $5,000 for its local food bank.
To follow the progress at each of the automotive supplier's plants, connect with FaureciaFUELS on Twitter, Facebook and YouTube.
(That's an interesting use of social media, for charitable purposes, by the way. Perhaps something that other companies can emulate).
"Even for a person like me who covers China's auto industry on a daily basis, I can't help feeling amazed at how fast the government is moving to encourage development of 'green' cars," Yang wrote.
"Late last year, the Chinese government was still unsure which powertrain technology to support to help domestic automakers leapfrog the international competition.
"But this year, it chose to subsidise plug-in hybrids and 'pure' EVs, then quickly mobilised all its resources to prepare the country for the age of the electric vehicles."
Now China has created pilot subsidy programs for plug-in hybrids and electric vehicles. The city of Shenzhen -- a leading auto center -- has kicked in its own subsidies. And China's central government has directed China's two electric utilities, three largest oil companies and major electrical equipment makers to build EV charging stations across the country.
"The Beijing government is running - not walking - to keep pace with the auto industry," Yang wrote.
China's advantage appears to be central government control, which appears to be fully supporting investment in EVs.
But keep in mind, U.S. companies have some obvious competitive advantages that should help them stay ahead of Chinese automakers and suppliers.
Most of the stories in the business press about General Motors Corp. have a positive spin these days (despite paying back a government loan with more government money). But has the company really turned the corner?
A reader sent this link to a story from PBS Newshour a few weeks ago with some comments that make me wonder.
The story, "California braces as NUMMI auto plant nears closing," is about how the New United Motor Manufacturing Inc. plant -- a joint venture between GM and Toyota -- was preparing to close. (It has since shut down).
Our reader wrote: "They were first a GM plant, which folded. The plant then morphed into a joint GM/Toyota partnership where they championed and implemented the principles of lean manufacturing. They went so far as to rehire the original laid off GM workers and take them to Japan for training.
"After the plant reopened, their numbers dominated other GM plants for many years. However, on April 1st, the NUMMI plant will close its doors as Toyota has opted to increase orders from other manufacturing locations.
"To me, this story is less about the economy and job loss, but rather the importance and effectiveness of lean manufacturing. This also offers a glimpse into the ingrained culture at GM, which failed to adapt and look long-term at their industry. Everyone that works in manufacturing should know the story of NUMMI."
Robert Cole, a University of California business school professor quoted in the report, noted that the GM-Toyota JV was mostly successful, especially for Toyota.
The company learned how to manage U.S. workers, and how to replicate its just-in-time inventory delivery system that it had in Japan.
But for GM, NUMMI was less successful.
For at least 10 years, they showed very little interest in serious learning from that plant. So, a lot of the GM managers that were sent there were put back into low-level positions, where they had no influence, because people didn't want to hear that Japan is doing things better.
A natural human reaction, perhaps. But it's an attitude that has long plagued GM -- and Toyota's recent safety-related problems will just make it worse.
Remember the story earlier this year about Shadid Khan, the very private owner of Flex-N-Gate Corp., buying a majority stake in NFL's St. Louis Rams? It looks like the deal may fall apart.
The St. Louis Post-Dispatchis reporting today that Stan Kroenke, a real estate and pro sports franchise investor, plans to exercise his right of first refusal to buy the 60 percent stake in the Rams that Khan planned to buy from Chip Rosenbloom and Lucia Rodriguez.
Kroenke already owns 40 percent of the Rams.
This isn't a done deal. NFL rules bar owners from having a majority interest in an NFL team if they own a majority of another major-league team in another market -- and Kroenke currently owns NBA's Denver Nuggets and NHL's Colorado Avalanche.
Khan is still interested in buying the Rams, if the NFL won't approve Kroenke's plan. According to the Post-Dispatch, Khan made this statement about the situation:
Earlier this evening, Stan advised me that he was going to pursue that opportunity. I have had the chance to get to know Stan over the past 60 days. As I told Stan during our conversation earlier this evening, I enjoy his company, admire his success in sports, and certainly respect his right to try to purchase the Rosenbloom family's interest in the Rams.
Flex-N-Gate is an automotive component supplier that moved into plastics in 2001 when it bought Ventra Group Inc. of Oakville, Ontario.
Doug Bourn, 56, was a senior electrical engineer and a five-year employee of the company. He was deeply involved in many aspects of the Roadster program. He loved to fly and was a flight instructor.
Brian Finn, 42, was a senior interactive electronics manager with Tesla since July 2008. He was devoted to using technology to bring the car and its driver together, and was part of a team that was developing the infotainment screen and user interface for the Model S.
Andrew Ingram, 31, was an electrical engineer with Tesla for two and a half years. He was passionate about electronics and audio systems.
When auto industry writers don't like the appearance of a car interior, they pull out a word that's meant as a serious insult: plasticky.
I saw it most recently in an Automotive News report on the new Mazda2. The interior of the five-door hatchback was unveiled Feb. 11 at the Canadian International Auto Show in Toronto.
"Compared to the current European edition, the North American model will have an upgraded audio head unit, higher-grade climate control knobs, and seats with higher-grade fabric and stylish piping," the story said. "The look and feel of the top of the instrument panel appears to be less plasticky."
I shared the mention with Rhoda Miel, the Detroit-based staff reporter for Plastics News, who told me this story:
At an interiors show, I was talking to a plastics guy who said he was looking at a high-end car on display. One of the guys complained about the "plasticky fake wood" touches. The plastics guy just looked at him and said: "Well then, plastics must be getting a lot better at wood trim, because that's real wood."
Maybe the problem was the finish on the wood. You'd think the luxury car makers could use a coating that's less ...
Flex-N-Gate Corp. has a reputation as a very quiet, very private company. Its owner, Shahid Khan, is considered a mystery man in the auto supply sector. But get ready for that to change, in a big way.
The St. Louis Post-Dispatchis reporting that Khan has an agreement to buy a majority stake in the St. Louis Rams from Chip Rosenbloom and Lucia Rodriguez.
Rams fans had two immediate questions.
1) Will the team stay in St. Louis?
2) Who the heck is Shahid Khan?
According to the Post-Dispatch, Khan is "an enthusiastic Rams fan who has attended home games," and is "committed to keeping the team in St. Louis."
Khan has "special feelings" for the city "because he arrived in St. Louis early in his life when his parents moved to the United States from Pakistan."
Flex-N-Gate was founded in 1956 to produce stock racks for pick up trucks that featured a flexible roll-up rear gate. The company moved into original equipment parts in 1968, and Khan joined the company in 1970.
Today the company employs more than 9,500 at 48 manufacturing and 9 product development and engineering facilities in Canada, the United States, Mexico, Argentina, and Spain. Flex-N-Gate's products include: large body and chassis structural assemblies; full bumper and fascia systems, brackets, receiver hitches; interior plastic panels and pillars; exterior trim components, running board systems; scissor and screw jacks, tools, spare tire hoists, hinges, checks, pedals, parking brakes,and latch systems.
In 2001, Flex-N-Gate moved into plastics with its purchase of Ventra Group Inc. of Oakville, Ontario. That purchase allowed the firm to marry its metal structural capabilities with the plastic fascia molding of Ventra.
Although they've become major players in the auto supply sector, Khan and Flex-N-Gate have kept a pretty low profile. But now he's going to be in the spotlight, at least in the St. Louis sports pages.
The company will be featured on cable television's History Channel on Thursday as part of its "Modern Marvels" series in an episode about chrome. SRG's 400,000-square-foot plant in Morehead, Ky., will demonstrate the electroplating process for plastic parts that gives them a chrome look.
SRG, the Warren, Mich.-based plastic subsidiary of Guardian Industries Corp., specializes in plastics plating.
The History Channel episode will also show off chrome on trucks, classic cars and motorcycles and the work of a Colorado artist who creates chrome sculptures from old car bumpers.
Those holdings include the high profile Detroit Pistons pro basketball team, but also Guardian Industries Corp., and its subsidiary SRG Global Inc., created by combining Guardian's plastics operations and its acquired Siegel-Robert Inc. auto business.
SRG -- the plastics part of Davidson's empire -- is not mentioned in the stories. The reports speculate about why Bill Davidson's wife, Karen, is interested in selling assets now, and they explain who is in charge.
A spokeswoman for Karen Davidson says she isn't selling assets to pay estate taxes. A former minority owner of the Pistons says Bill Davidson's death "brought on myriad problems" -- some related to the economy -- that have Karen Davidson and other minority owners and estate trustees willing to sell the team.
Bill Davidson's fortune was valued at $2.1 billion last year, down from $5.5 billion in 2008.
The North American International Auto Show may have trimmed its press preview to two days from the traditional three, but the event set for Jan. 11 and 12 in Detroit still will be packed with the debuts of future production models and concept cars.
Chrysler Group LLC does not show up on the press conference schedule, although China's BYD Auto will make an appearance. The new lithium-ion battery manufacturing joint venture of Dow Chemical Co. and KD Advanced Battery Group LLC - Dow Kokam - also has a slot on the schedule.
Automakers like to keep their breakthroughs secret until the press days, whether those come through design, engines or materials. Suppliers who know of any expected announcements involving plastics can drop a line here or via Twitter to make sure we're there for the big unveilings of interest to the plastics industry.
Plastics News will be covering the show in print, on the Web and through Twitter (twitter.com/plasticsnews).
The annual event at Detroit's Cobo Center has trimmed a day from its media previews, set for Jan. 11 and 12.
In 2009, the media saw reveals of concept cars, new models and high technology future powertrains for three days -- Jan. 11-13. The three-day format has been standard for the auto show press days for at least eight years.
The cutback comes as automakers trim their budgets and North American vehicle production is expected to fall well below 10 million vehicles for 2009. Two of Detroit's "Big Three" domestic automakers also spent part of 2009 in bankruptcy protection and one of them, Chrysler LLC, is now controlled by Italy's Fiat Auto SpA.
Show organizers have not released a press conference schedule, but it will be reduced slightly. Interior supplier and molder Johnson Controls Inc. is not planning its normal lineup of press conferences. The company has had two separate press conferences during the past few auto shows.
Thanks to our Detroit-based staff reporter Rhoda Miel for this item.
The exhibit, dubbed Electric Avenue, will include advances in lighweight design and battery technology. It will include almost 20 vehicles, plus related symposiums and special events on an adjacent stage.
"We believe developing and commercializing next generation battery technology, for example, will help ensure the sustainability of the automotive industry while meeting the nation's energy and environmental goals and generating tens of thousands of green collar jobs in Michigan and throughout the nation," Dow's Heinz Haller, executive vice president for performance systems, said in a news release.
The auto show will be here before you know it -- the press preview starts Jan. 11, and the industry preview on Jan. 13.
The guys from Orange County Choppers (remember them from NPE2009?) are doing a "green" motorcycle -- all electric -- for the show airing Thursday night.
It includes a visit to the Siemens wind turbine plant in Iowa (check out the link for video from the Discovery Channel) in which they show a little of the fiberglass turbine production.
The bike also includes LED lighting (which has lots of plastics, including a polycarbonate component).
This may be a "green" motorcycle, but it's not a wimpy scooter. They elected to use a high-voltage motor, despite the increased size and power requirements, so the bike could achieve speeds of 100 mph or more.
But does it sound like a real motorcycle? We'll see.
(And thanks to Rhoda Miel, Plastics News' staff reporter in Detroit, for suggesting this post).
The Automotive Division of the Society of Plastics Engineers today announced the finalists for its 39th-annual Automotive Innovation Awards Competition.
Maria Ciliberti of Ticona Engineering Polymers, and chair of the awards program, said despite the challenging year for the auto sector, the contest attracted more than 50 nominations, with entries that can be found on commercial vehicles produced on four continents -- North America, Europe, Asia, and Australia.
"Clearly, there is no shortage of innovative automotive-plastics applications being commercialized right now," she said in a news release. "Polymeric materials continue to bring value to molders, tier integrators, OEMs, and the ultimate customer -- the consumer."
Category and the event's Grand Award Winner will be announced on Nov. 12 during the Automotive Innovation Awards Gala in Livonia, Mich.
Here is a list of the finalists, by category, courtesy of SPE:
CATEGORY: Body Exterior
LOW-PROFILE OUTER-BELT WEATHERSTRIP DESIGN
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Taurus Sedan
Tier Supplier/Processor: Cooper Standard
Material Supplier: ExxonMobil
Material: TPV
Process: Tri-Layer Extrusion
Description: These outer-belt weatherstrips are the first to provide a low-profile, tri-extrusion with stainless steel, TPV, and a high-gloss vinyl ionomer. The manufacturing process envelop was pushed to the maximum to satisfy the Taurus design theme, achieving a functional component that offers three different textures (low-gloss, high-gloss, and stainless) in the same part.
GLASS-RUN WEATHERSTRIP CORNER MOLD OVERLAYS
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Taurus Sedan
Tier Supplier/Processor: Henneges / ITW
Material Supplier: DuPont Automotive
Material: 16.5 percent-GR PA 6/6
Process: Injection Molding
Description: These door glass-run weatherstrip corner mold overlays are an industry first, providing gloss and appearance differences to the glass seals while helping guide the glass properly into the top seal. A simple part that solves a big problem in an elegant way, the plastic glass-run corner mold overlays offer improved appearance and customized craftsmanship for window surroundings while ensuring a good seal.
EXTERIOR SPOILER WITH INTEGRATED CHMSL ASSEMBLY
OEM: General Motors Co.
Make/Model: 2009MY Cadillac CTS Sport Wagon
Tier Supplier/Processor: ABC Group
Material Suppliers: SABIC Innovative Plastics
Material: PC/ABS (with proprietary nanofiller package)
Process: Injection Molding
Description: Highly dimensionally stable, this thermoplastic Class A horizontal body panel meets stringent gap requirements by managing a low coefficient of thermal expansion (3.9) while also maintaining heat, impact, and surface quality for a highly aesthetic application. The center-high-mounted stop light (CHMSL) is also integrated in this first-surface part.
HEADLAMP BEZEL
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Taurus Sedan
Tier Supplier/Processor: Ford ACH Lighting - Sandusky
Material Suppliers: SABIC Innovative Plastics
Material: PC (with metallic-pigment package)
Process: Injection Molding
Description: The inclusion of a special metallic-flake pigment package in the resin matrix for this application eliminated the need for paint while delivering improved styling aesthetics in an as-molded part.
CATEGORY: Body Interior
TUFTED PET AUTOMOTIVE CARPET - BODY INTERIOR
OEM: GM Holden
Make/Model: 2010MY VE Commodore Sedan
Tier Supplier/Processor: Futuris Automotive Interiors
Material Supplier: Not stated
Material: Recycled PET
Process: Fiber Spinning
Description: For the first time, tufted PET carpeting has been used in an automobile. Containing 20 - 80 percent post consumer recycled content, and with the option to use 100 percent recycled PET, this tufted carpet meets or exceeds all major OEM carpet performance specifications, is 12-15 percent less expensive than traditional tufted nylon, and provides a sustainable solution.
PLASTIC POST-ISOLATION FOR AUTOMOTIVE HVAC BLOWER MOTORS
OEM: General Motors Co.
Make/Model: 2010MY Chevrolet Camaro Sportscar
Tier Supplier/Processor: Delphi
Material Supplier: Spartech Polycom
Material: 20 percent talc-filled PP
Process: Injection Molding
Description: This application uses an integrally molded plastic mount instead of multiple rubber isolators that softens and quiets HVAC fan-motor vibrations, resulting in significant reductions in cost and development time plus a quieter vehicle interior for consumers. A resonant frequency "tuning" feature allowed for noise/vibration/harshness (NVH) optimization even late in the vehicle-development cycle with minimum impact on mold tooling. Now bare motors can be purchased, allowing more motors to be shipped per container, and a quick snap-fit joins the plastic mount to motor, facilitating assembly.
MOLD & FOLD CLUSTER ATTACHMENT BRACKET
OEM: Ford Motor Co.
Make/Model: 2009MY Ford F-Series Pickup Truck
Tier Supplier/Processor: Automotive Components Holdings
Material Supplier: ATC
Material: 20 percent Talc-Filled PP
Process: Injection Molding
Description: Using "negative space" in the tool, this mold-&-fold cluster attachment bracket provides a mounting surface for the instrument panel's cluster without the necessity of adding an additional part. Cluster attachment locations are integrated into the IP substrate tool and the "molded-in hinge" is then folded into place. This allowed the styling team to maximize the size of register openings and the cluster lens by minimizing the design space between them.
LIGHTWEIGHT ACOUSTICAL HEADLINER BASED ON SOY FOAM
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Escape HEV & Edge and Lincoln MKX CUVs
Tier Supplier/Processor: Magna (Escape) & International Automotive Components (Edge)
Material Supplier: Woodbridge Group
Material: Polyurethane (with 10 percent-Bio-Based Polyol)
Process: Not stated
Description: Lightweight, open-cell acoustic foam based on polyurethane chemistry with some soy-based polyols (replacing petroleum-based polyols) were used in this application, which also featured permeable thermoplastic adhesives and permeable felt fabrics in the headliner construction. The result is industry-leading noise/vibration/harshness (NVH) performance and lower weight
CATEGORY: Chassis & Hardware
ELECTRIC POWER STEERING FLEXIBLE COUPLING
OEM: Fiat S.p.A.
Make/Model: 2010MY Fiat 500 Compact Car
Tier Supplier/Processor: Nexteer Automotive / Forteq
Material Supplier: DSM
Material: Heat-Stabilized, 50 percent-GR PA 4/6-
Description: This flexible plastic coupling for the vehicle's electric power steering replaced a similar stainless steel coupling with broached splines and grease. The part features ribs that connect and transfer torque from one rotating shaft to another, which in turn strokes axially and stretches and compresses the coupling. The fully complient constant-velocity joint eliminates torsional lash, the need for grease, and all sliding interfaces at a cost savings, while reducing audible interior cabin noise and improving steering "feel." The system replaces traditional hydraulic systems, reducing weight 17 percent, cost 50 percent, and increasing fuel economy by 4 percent. System performance and customer satisfaction were also improved.
LOAD-MANAGEMENT STRIKER CAP (LMSC)
OEM: General Motors Co.
Make/Model: 2009MY Cadillac CTS V-Series Luxury Sedan
Tier Supplier/Processor: Delphi / Ammex Plastics
Material Supplier: BASF
Material: TPU
Process: Injection Molding
Description: When styling opted to add larger wheels/tires well into program development, this small thermoplastic urethane (TPU) load-management striker cap was designed to increase energy absorption by 74 percent and reduce loads on shock towers by 14 percent. This improved vehicle ride without the need to add extra structure to the body/chassis vs. standard nylon striker caps with a metal ring alone. The 43-g, high-elongation TPU part has a "springboard" effect designed in so it improves vertical impact management, leading to lower trim capability, better structural survivability, better energy management (via ride and handling), and enabling additional content (new wheels/tires) without adding significant cost or mass.
BELOW-BELT DOOR-GLASS RETAINING BRACKET
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Taurus Sedan
Tier Supplier/Processor: Henneges
Material Supplier: Dow Automotive
Material: PA 6/6
Process: Injection Molding
Description: These nylon 6/6 below-belt door brackets are an industry first, replacing steel channels. The plastic channels will not ding the door outer panel during installation and provide quiet window-system operation, while also reducing weight 50 percent and cost 20 percent.
CATEGORY: Environmental
RADIATOR END TANK FROM RENEWABLY SOURCED MATERIAL
OEM: Toyota Motor Co
Make/Model: 2010 Toyota Camry Sedan
Tier Supplier/Processor: DENSO Corp.
Material Supplier: DuPont Automotive
Material: PA 6/10 (with monomer from caster bean oil)
Process: Injection Molding
Description: This is the first use of bio-plastic in a chemically aggressive and mechanically demanding application - in radiator end tanks. Roughly 40 percent of this new nylon 6/10 material is sourced from caster bean oil, reducing reliance on petroleum-based inputs and helping lower the vehicle's carbon footprint.
WHEAT-FILLED PP FOR QUARTER TRIM BIN
OEM: Ford Motor Co.
Make/Model: 2010 FordFlex CUV
Tier Supplier/Processor: International Automotive Components
Material Supplier: A. Schulman
Material: Wheat-Straw-Reinforced PP
Process: Injection Molding
Description: This is the auto industry's first use of renewable (and locally sourced) wheat-straw filler for storage-bin components. This natural-fiber-reinforced PP offers greater dimensional stability than unfilled resin and is more sustainable than talc-filled PP.
HALOGEN-FREE WIRE COATING
OEM: General Motors Co.
Make/Model: 2008MY GMC Yukon, Chevrolet Tahoe, & Cadillac Escalade SUVs
Tier Supplier/Processor: Delphi
Material Supplier: SABIC Innovative Plastics
Material: PPO
Process: Extrusion
Description: Flexible, halogen-free, PPO resin for wire insulation provides an environmentally friendly alternative to PVC and cross-linked HDPE. The durability and low specific gravity of the material enables thinner insulation and jacketing, allowing comparable performance to be achieved in less packaging space and at lower weight.
CATEGORY: Materials
MOLDED-IN-COLOR METALLIC INTERIOR-FINISH PANELS
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Mustang Sportscar
Tier Supplier/Processor: Ford Motor Co. / Summit Polymers
Material Supplier: SABIC Innovative Plastics
Material: PC/ASA
Process: Injection Molding
Description: Molded-in-color metallic finish PC/ASA replaced painted PC/ABS in this Injection-molded application, eliminating paint for greater sustainability while meeting tough weathering, scratch/mar, and low-gloss requirements. Optimized gating strategies and a modified pigment package were essential to minimize flow disruptions that can lead to dark streaks in molded metallic parts where flow-fronts converge. The result is the industry's first metallic-finish interior-trim panel, which is greener, increases customer satisfaction (by eliminating paint-related defects), and provides a $2.30 USD/vehicle cost savings
DOOR PANEL FROM NATURAL-FIBER PREG COMPOSITE
OEM: BMW
Make/Model: 2008MY BMW 7 Series Luxury Sedan
Tier Supplier/Processor: Dräxlmaier Group
Material Supplier: BASF AG (resin) / J. Dittrich & Söhne GmbH (fiber mat)
Material: Acrylic Copolymer
Process: Compression Molding
Description: This lower door-panel inner was compression molded from a new, high-performance, lightweight, cost-effective, and green composite. The resin matrix is a unique acrylic polymer that is thermoplastic in its "B-stage," allowing for production of prepreg/semi-finished rollstock or blanks, yet cross-linking at temperatures above 120C to produce a very durable thermoset. The resin's high wetout of natural fibers and ability to form chemical as well as mechanical bonds to the reinforcement allows for production of composites with very-high fiber loadings - 70 percent in this application - yielding lightweight parts with high stiffness in thin walls. The resulting panel saves weight and cost, significantly reduces VOC emissions, and its rapidly renewable natural fiber needled mat reduces the vehicle's carbon footprint without sacrificing performance.
LONG-GLASS-PP FIRST-SURFACE CONSOLE SIDE PANELS
OEM: Ford Motor Co.
Make/Model: 2010MY Lincoln MKT CUV
Tier Supplier/Processor: Automotive Components Holdings
Material Supplier: Ticona Engineering Polymers
Material: 20 percent Long-Glass PP (Pelletized)
Process: Injection Molding
Description: This is the largest molded-in-color, long-glass PP part with a Class A surface out of the tool for a premium vehicle to date. The precolored and textured part is 100 percent color-matched, has no glass read-through, and offers higher stiffness than talc-filled PP and lower cost than ABS, while also eliminating the need for squeak & rattle countermeasures, saving $6 per vehicle.
CATEGORY: Performance & Customization
THERMOFORMED FULL-SIZE CARGO VAN PARTITION & CONSOLE
OEM: Various
Make/Model: 1985-2010MY Ford Astra & E-Series, Chevrolet Express & GMC Savana Cargo Vans
Tier Supplier/Processor: Chameleon 2000 / Advantage Plastics
Material Supplier: Primex Plastics
Material: Reprocessed ABS
Process: Thermoforming
Description: This large, thermoformed ABS partition and console closes off space between front and back of cargo vans, reducing workload on HVAC units, keeping exhaust fumes from the passenger compartment, and protecting passengers from flying or falling objects that could enter the passenger compartment from rear cargo space. The console provides a work surface between front seats, holding laptops, phones, and paperwork, and rear-accessible storage allows large parts to project into the underside of the console from the rear cargo hold. This application saves 100 lb vs. steel partitions while eliminating rust, quieting the passenger compartment, adding more functionality, and allowing significantly faster installation, making it ideal for fleet vans. The unit is fully recyclable and uses recycled material.
ILLUMINATED DOOR-SILL INSERT USING SINGLE-LED LIGHT ENGINE
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Mustang Sportscar, Lincoln MKZ & Ford MKT Sedans
Tier Supplier/Processor: Innotec Group
Material Supplier: Altuglas, SABIC Innovative Plastics, Serigraph
Material: ABS Bi-Laminate, Polycarbonate, & Acrylic
Process: Multiple
Description: Combining several different plastic technologies to create highly efficient optics that require only one LED light source, this illuminated door-sill insert can easily be customizable (via laser etching) to produce high-impact illuminated graphics. The system's unique construction allows the design to be adapted to new vehicles in weeks, not months, significantly reducing development costs. In addition, the application is the auto industry's first to provide multi-color illumination from a single LED light engine.
HIGH-TEMPERATURE CORED-CARBON COMPOSITE AIR SPLITTER & DIVE PLANES
OEM: Chrysler Group LLC
Make/Model: 2010MY Viper ACR Supercar
Tier Supplier/Processor: Prefix / Plasan Carbon Composites
Material Supplier: Evonik
Material: High-Temperature Epoxy
Process: Hand Layup / Autoclave Cure
Description: A unique carbon composite with a special high-density, high-temperature core capable of surviving autoclave temperatures and pressures was used to produce an extremely thin, lightweight, precision air splitter and set of dive planes for the 2010MY Viper ACR supercar. The splitter is adjustable and produces extremely high downforce resistance of 1,000 lb without deflecting more than 0.25 mm at 180+ mph. A fast-cure, UV-stabilized grade of clear epoxy resin (with visible carbon fiber weave on the surface) brings autoclave cycles down to an average of 10 min. The aerodynamic package went from concept to production in just 12 month.
CATEGORY: Powertrain
BLOWMOLDED INTERCOOLER AIR DUCT IN PPS WITH JECTBONDING
OEM: Volkswagen AG
Make/Model: 2008MY Volkswagen PQ35 Platform
Tier Supplier/Processor: Röchling Automotive Leifers GmbH
Material Supplier: Ticona Engineering Polymers
Material: Glass-Reinforced PPS
Process: Hybrid Injection/Blow Molding
Description: This is the first time glass-reinforced PPS has successfully been blow molded. The complex part was formed by a unique patented hybrid injection/blow molding process called Jectbonding, which allows functional elements to be injected against the parison during expansion, forming a chemical bond and yielding a robust part with a clean joint vs. welding the element to the part in a secondary step. Two different grades of glass-reinforced PPS were used. The process eliminates two previous production steps and provides extremely high repeat accuracy; high-performance PPS resin provides dimensional stability and outstanding mechanicals in high-temperature, chemically aggressive environments with cost and weight reductions.
PLASTICS-INTENSIVE FLUID FILTER MODULE
OEM: Daimler AG, Mercedes Car Group
Make/Model: 2010MY Mercedes C-Class Compact Executive Sedan
Tier Supplier/Processor: Mahle Filtersysteme GmbH
Material Supplier: Lanxess
Material: 35 percent-GR PA 6/6
Process: Injection Molding
Description: This fluid module filters engine oil and cools it via cooling liquid. The cooling unit is fully integrated into a new plastic housing that provides 38 percent weight and 16 percent cost reduction and reduces pressure losses for higher engine efficiencies. The 35 percent-glass-reinforced nylon 6/6 shell covering the cooling unit serves to stiffen the filter housing against oscillation. A plastic hose replaces rubber for further cost savings.
OIL PAN OPTIMIZED FOR STONE IMPACT
OEM: Ford Motor Co.
Make/Model: 2010MY 6.7L Power-Stroke Turbo Diesel
Tier Supplier/Processor: Dana
Material Supplier: BASF
Material: Impact-Modified, 35 percent-GR PA 6
Process: Injection Molding
Description: This is the first plastic oil pan designed for full exposure to the road environment and optimized to withstand road chemicals and stone impacts thanks to a new material / ribbing configuration. An impact-modified 35 percent-glass-reinforced nylon 6 provides excellent impact strength even at -40C and is not affected by calcium chloride thanks to a proprietary modification package. A special waffle-design ribbing pattern can handle multiple impacts (unlike earlier plastic designs with sacrificial ribs). Another unique aspect of this oil pan is that it features the first plastic drain plug, which sports a cam-lock design that makes it impossible to over-torque and break the plug's screw threads. The oil pan is 2.1-lb lighter than the steel pan it replaced and 30 percent less costly. It has an noise/vibration/harshness value similar to that of cast aluminum and quiet steel, yet will not rust or corrode and provides better protection against stone impact than metal designs
HIGH-FEATURE V6 RIGHT & LEFT-BANK TIMING-CHAIN TENSIONER ARMS
OEM: General Motors Co.
Make/Model: GM HFV6 Engines
Tier Supplier/Processor: Cloyes / Mayfair Plastics
Material Supplier: DSM
Material: Unfilled & 50 percent-GR PA 4/6
Process: Injection Molding
Description: This application features the first thermoplastic timing-tensioner arms, which replaced cast aluminum. The parts meet high-performance engine dynamics and sustain chain tensions up to 3,000 N. A heat-stabilized, 50 percent-glass-reinforced grade of nylon 4/6 provides high strength and stiffness at 140C. It also offers extremely high fatigue resistance at elevated temperatures, extreme wear resistance at pivot and tensioner piston interfaces, long-term property retention in oil, impact strength, dimensional stability, and a low coefficient of linear expansion, plus high knitline strength at the pivot. A separate unfilled nylon 4/6 wear surface is also used. The system provides 30 percent cost and 20 percent mass savings vs. previous metal designs, eliminates the need for a hardened-metal wear pin, eliminates 5 machining operations/part, provides tooling savings of $200,000 USD/year, and is quieter.
CATEGORY: Process / Assembly / Enabling Technologies
TWO-SHOT INVISIBLE PASSENGER-SIDE AIRBAG DOOR
OEM: Hyundai Motor Co.
Make/Model: 2009MY Hyundai i20 Supermini Car
Tier Supplier/Processor: Hyundai-Mobis / Hyundai-Motor Co.
Material Supplier: Multibase Co.
Material: TPO (door) & Talc-Filled PP (IP substrate)
Process: Twin-Shot Injection Molding
Description: This soft, seamless passenger airbag (PAB) door is integrally molded into a hard instrument panel substrate using a simultaneous twin-shot molding process and two grades of olefins: talc-filled PP for the IP and a TPO grade for the door itself. This system provides a simple, uncluttered appearance and color harmony while eliminating fit & finish issues and providing improved cold-temperature impact strength. Both design and materials optimization was required for success and the final system - which is covered by seven tooling and materials patents - provides better performance at a $5 cost and 500-g weight reduction, while significantly reducing molding and assembly operations.
AUTOMOTIVE PLASTIC-CASE RADIO WITH INSERT-MOLDED EMC SHIELDING
OEM: General Motors Co.
Make/Model: 2009.5MY ChevroletTahoe/GMT900 Family
Tier Supplier/Processor: Delphi E&S
Material Supplier: MRC
Material: Reprocessed 16 percent-GR PC/ABS
Process: Insert Injection Molding
Description: This application features an innovative, patented method of embedding EMC shielding into an environmentally friendly plastic case, enabling significant reduction in weight and assembly time. A metallic-mesh Faraday cage is insert molded into the reprocessed 16 percent glass-reinforced PC/ABS material. The design also enables the use of slide lock & snap lock design features that speed assembly while, eliminating the previous sheet-metal case and 29 screws. The resulting unit provides significant weight reduction, assembly cost & time savings, with improved physical and EMC shielding and a more sustainable product.
MOLDED IN FAUX STITCHING WITH NEAR-PERFECT APPEARANCE
OEM: Ford Motor Co.
Make/Model: 2010MY Ford Taurus Sedan
Tier Supplier/Processor: Ford Motor Co. / Automotive Components Holdings
Material Supplier: BASF
Material: Polyurethane
Process: Spray Polyurethane
Description: The realistic appearance of a hand-wrapped leather insert with French and Coach seams was achieved on this door panel using a single-piece molded spray polyurethane part without need for separate operations. The realistic appearance of leather stretching, bunching, and stitching is achieved via a silicone mold cast from leather originals. Each of the vehicle's four door panels retains its own unique bunching and stretching pattern, yet each panel is absolutely repeatable vehicle-to-vehicle. The result is a $50 USD/vehicle cost savings, better quality, perfect repeatability, and greater durability.
CATEGORY: Safety
GENUS FOLDING HEAD RESTRAINT
OEM: Kia Motors
Make/Model: 2010 MY Kia Sorento CUV
Tier Supplier/Processor: Gill Industries / Sturgis Molded Products
Material Supplier: BASF
Material: PA 6
Process: Insert Injection Molding
Description: This is the first folding-headrest system for stowable rear seats that is fully compliant with new FMVSS 202A and EC standards. The integrated system makes use of toughened, glass-reinforced nylon 6 to reduce overall part count by 50 percent, lowering weight by 2.5 kg, and simplifying manufacturing and installation.
PEDESTRIAN PROTECTION BUMPER-REINFORCEMENT EA SYSTEM
OEM: Ford Europe
Make/Model: 2009MY Ford Kuga Compact CUV
Tier Supplier/Processor: Plastal Germany
Material Supplier: SABIC Innovative Plastics
Material: PC/PBT
Process: Injection Molding
Description: An innovative energy absorber (EA) design mounted on the grille-opening reinforcement instead of cross-car beam enabled this vehicle to be the first in the SUV class to meet tough European pedestrian-protection requirements for lower-leg impacts, eliminating the need for a separate EA in front of the bumper beam. An unfilled PC/PBT resin was used to injection mold this EA/upper reinforcement, providing best-in-class performance and allowing for the vehicle's aggressive styling due to a reduction in packaging space.
PEDESTRIAN-PROTECTION-COMPLIANT FRONT FENDER
OEM: Ford Motor Co.
Make/Model: 2008MY Ford Kuga Compact CUV
Tier Supplier/Processor: Montaplast
Material Supplier: SABIC Innovative Plastics
Material: MPPE/PA
Process: Injection Molding
Description: This is the first SUV with thermoplastic fenders that meets tough European pedestrian-protection requirements for head impact in a single part, eliminating the need for secondary bracketry under the fender as in steel designs. The MPPE/PA material is online paintable, dent and corrosion resistant, a unique styling enabler, and reduces both weight and cost by 50 percent vs. steel. The vehicle was also able to qualify for a better insurance rating because of this innovation.
"Bumblebee," is disguised as a 2010 Chevrolet Camaro. (Bumblebee is an autobot, which is an alien race, who come to Earth in search of the "All Spark" and ... yeah. It's a summer movie. Don't think too much.)
Phoenix Proto has produced rapid prototypes for a variety of industries. For "Transformers," the company was asked to make a center stack console gauge for Bumblebee's instrument panel along with two other parts that were not seen.
"It's always exciting to see a component you've been part of the creation process on functioning in the market place," said Phoenix Proto's Scott Lammon in a news release. "It's even more exciting to see it on the big screen in a major movie."
The company created a prototype aluminum mold and center stack consoles using black ABS and a white Noryl GTX resin.
While summer has come and gone, Bumblebee -- and Phoenix -- get another moment to shine in the spotlight Oct. 20 when "Transformers 2" is released on DVD.
And thanks to Rhoda Miel, Plastics News' Detroit-based staff reporter, for this item.
Toyota Motor Corp. plans to pool resin purchasing among its group firms, according to a report in the Nikkei (7203.T) plans to consolidate purchases of resin materials among group firms to cut costs and strengthen its bargaining power, according to a report in the Nikkei business daily.
Citing the Nikkei report, the Reuters wire service noted that Toyota "will bundle its purchase of polypropylene, which is used in bumpers and other vehicle components, beginning this fiscal year."
The report says Toyota spends about $2.24 billion to buy 500,000 to 600,000 tons of resin a year. PP accounts for about 40 percent of the total.
Other big OEMs handle resin purchasing, but it's not strategy that's been universally adopted. Are any blog readers aware of either drawbacks, or cases where centralized purchasing has worked out well?
Here's a story told almost entirely through a series of photographs that's awfully unusual. It's about a guy in Lithuania who used polyurethane foam to rebuild a Mercedes, turning the luxury car into a custom sports car.
The photos are fun, and the comments even better.
My favorites:
Does this mean the car will float if it falls into the water? What does the ding repair kit look like.... a tube of foam filler? Do insurance companies insure foam cars?
And the very understated:
must be quiet in there
Must be quiet, indeed. Sort of reminds me of my buddies in high school who used to repair their cars with tons of Bondo.
The trustees released a statement that said, in part: "It is disappointing that some family members have chosen to take their personal unhappiness with the late Mr. Smith's estate plan to court. Before Mr. Smith died in 1997, he very clearly decided that control of the company he had built over so many years should be left in the hands of trusted associates who would see to it that the company, the people who work for it and the communities that benefit from its presence are preserved, strengthened and grown for future generations, including his descendants."
According to the petition, the book value of the company and its subsidiaries was $267 million at the start of 2008, but it has dropped significantly because of the troubles in the auto industry.
Ah, the joys of running a family business. I bet this eventually gets settled out of court ... and that family reunions, weddings and holidays will be quite strained for a long time.
It's taken nearly four years, but Delphi Corp. is finally preparing to emerge from bankruptcy.
When Troy, Mich.-based Delphi, once the world's biggest auto supplier and the one time parts unit of General Motors Corp., entered Chapter 11 protection to restructure its debts in October 2005, no one expected the work would be easy, but the faltering North American auto industry threw multiple wrenches into its plans.
Over the years, Delphi shed workers and operating units, including selling its $1 billion interiors unit to private investment group Renco Group Inc., which turned the parts into the new Inteva Products LLC.
Delphi saw its global sales fall from more than $24 billion the year before it filed for bankruptcy to about $18 billion as lawyers, creditors and investors weighed options for a new Delphi. The company that is expected to fully emerge from Chapter 11 in the next month still has extensive plastics operations within its electronics and heating and air conditioning units.
In the meantime, auto sales fell dramatically, Delphi's one time parent, Detroit-based GM, entered and exited Chapter 11 itself in a speedy restructuring in which the U.S. government took a stake in the company, while Chrysler Group LLC in Auburn Hills, Mich., went through a similar bankruptcy filing that saw a controlling stake purchased by Italy's Fiat Auto SpA.
In the end, the plan approved by the U.S. Bankruptcy Court in New York gives ownership in the company to former lenders in exchange for $3.4 billion in loans, while GM will take over some steering component operations again.
More track the long history of Delphi's bankruptcy and find a wealth of details, including links to court documents, check out Delphi's Web site.
Thanks to Plastics News' Detroit-based staff reporter Rhoda Miel for this item.
The new federal fuel economy standards are putting a premium on efforts to make cars lighter. So, despite the massive problems in the auto industry, interest should be high in this year's Automotive Composites Conference and Exhibition sponsored by the Society of Plastics Engineers' automotive and composites divisions.
The keynote speaker at the Sept. 15-16 event in Troy, Mich., will be Dana Myers, president of Myers Motors LLC in Tallmadge, Ohio. Myers Motors is the manufacturer of a plug-in-electric, composite-bodied, three-wheel behicle called the NmG (for "no more gas.")
The title of his speech will be Composites Help Electrify Transportation.
Reuters and others are reporting tonight that Delphi Corp.'s board of directors decided that it favors a plan to sell the company to its bankruptcy lenders, instead of a bid from private equity firm Platinum Equity.
General Motors, which is Delphi's largest customer, also favors the bid from the lenders.
The Obama administration's autos task force had negotiated the Platinum bid.
USA Today's Open Road blog today reports on the growing use of bioplastics in the automotive industry -- a trend we've been following for some time.
It's nice when the mainstream press discovers a story like this, although I have to note that blogger Chris Woodyard couldn't help but make a joke at plastics' expense:
In the lexicon of famous oxymorons, the auto industry about to add another: ecological plastics.
Before too long, expect it to rank right up there with jumbo shrimp and military intelligence.
Har.
Woodyard cites the soon-to-be-introduced Lexus HS 250h hybrid luxury car as an example of a heavy user of bioplastic, noting that "about 30 percent of the car's interior and trunk will be covered in this newfangled plastic that will help make the car 85 percent recyclable."
Plante & Moran has extended the survey collection period for its 2009 North American Plastics Industry Study through June. Participants in the survey will receive a free customized report (more than 75 pages) comparing their company's performance data with the top quartile of companies in the industry.
Participation is confidential, and all statistical analysis is performed using a participant code, protecting company confidentiality. Companies interested in participating can register at plastics.plantemoran.com.
Here's a timely story for the long holiday weekend. Fiberglass boat maker Brunswick Corp. is taking a page from the automotive playbook, trying to beef up sales by promising to make payments for buyers who lose their jobs.
The company has been suffering through a prolonged sales slowdown as wary consumers hang onto their money, rather than spending it on a recreational boat. Lake Forest, Ill.-based Brunswick began closing fiberglass boat plants earlier this year to try and restructure for a smaller sales base.
But with the boat industry's biggest sales season about to begin, it's now starting to sweeten the pot with a "payment protection program" that will make up to nine months of payments if a boat buyer loses a job within a year after buying a new boat. It based its program on similar offers from automakers including Ford Motor Co. and General Motors Corp.
The deal applies to Bayliner, Maxum and Trophy brand boats purchased between Memorial Day weekend and the July 4 weekend.
"People are understandably anxious in this economy," said Andy Graves, president of Brunswick's U.S. Marine and Outboard Boat Group division, in a May 22 news release. "We're helping our dealers remove an important barrier to sales and reduce their inventories, while also offering true peace of mind for our boat customers."
I'm not so sure that copying from the automotive playbook is the best strategy right now, but perhaps it will help. Have they tried "Buy a boat, get a check"?
Thanks to Rhoda Miel, our staff reporter in Detroit, for tracking down this item.
Keith Crain, publisher and editorial director of our sister newspaper Automotive News, wrote a very strong column this week about the U.S. government takeover of General Motors Corp. He starts by saying that he is "surprised and disappointed that corporate America has been painfully silent as the government usurps more and more authority at General Motors."
The White House and the Treasury Department fired the CEO and appointed an "interim" CEO and an "interim" nonexecutive chairman. They decided that the UAW will have a large block of the stock in whatever company emerges and have told the bondholders exactly how many billions of dollars they will lose.
All this from folks who have never run a manufacturing company. They are mostly politicians and regulators with a smattering of Wall Street financial types.
This scenario should never have happened. There has hardly been a peep from anyone that perhaps this is a formula for disaster.
The UAW is made up of good people, but the idea that the government and the UAW will make any decisions about an auto company is ludicrous.
The White House types might argue that they can't do a lot worse with GM than the previous management. But the fact is, they can do worse -- and they probably will.
What part of the car business with thrive under Washington's tutelage? Manufacturing? Product development and design? Marketing? I don't think so.
So, corporate America, let's hear it. Why hasn't there been more of an outcry against the White House takeover of "Government Motors"?
One person was named to the NBA 50th Anniversary All-Time Team, once owned a share of a plastics joint venture, and will soon be mayor of a major U.S. city. Name him.
The answer is obvious to blog readers in Michigan, where NBA basketball Hall of Fame member and auto supplier Dave Bing has added another job to his resume -- mayor of Detroit.
Bing won a special election May 5 against interim mayor Ken Cockrel Jr. to serve as mayor through the end of this year, filling out the term of Kwame Kilpatrick, who was forced to resign in a sex and telephone text scandal last year.
He is expected to take office within two weeks.
The mayor's job is Bing's first job in politics. He has run auto supplier The Bing Group, based in Detroit, since 1980, when he started the business as Bing Steel Inc. The bulk of the company's history is in rolled and stamped steel, but it briefly had exposure to the plastics industry when it formed Bing-Lear Manufacturing Group, a joint venture with interior supplier Lear Corp., to make and assemble mirrors in Berne, Ind., in 2000.
Comer Holdings LLC purchased Bing Group's share in the venture in 2006.
(Thanks to our staff reporter in Detroit, Rhoda Miel, for this post.)
Our sister newspaper Automotive News is reporting that the nine-week summer shutdown at most of General Motors' North American plants could bankrupt as many as 10 percent of GM's top 300 parts makers.
The story attributes the prediction to "a source familiar with GM's thinking."
According to the story, GM's top 300 suppliers ship more than 80 percent of the parts that go into GM vehicles. The company has a total of 1,500 parts suppliers.
GM spokesman Dan Flores acknowledged that the shutdown will cause cash-flow problems at some suppliers. "We recognize these production cuts are going to be very painful, but the decision was required as we continue to bring our inventories in line with market demand," Flores said.
The story also points out that the government's bailout for suppliers, as currently written, will not help GM suppliers during the shutdown. The program "allows designated suppliers to be paid quickly for parts already shipped and guarantees those payments even in a bankruptcy. But it only applies to suppliers that actually are shipping parts. If GM doesn't produce vehicles for nine weeks, no payments will be due -- hence, no government aid."
And don't forget, Jeff Mengel, a partner with Plante & Moran PLLC, said back in March that about 15 percent of North American plastics processors could enter bankruptcy liquidation over the next 18 months, with the worst of the problems this month and in May.
General Motors Corp. announced today that it will idle 13 of its assembly plants for up to 9 weeks this summer, as it works to trim high dealership inventories and put production in line with sluggish sales.
GM's release notes: At the end of March, approximately 767,000 vehicles were in U.S. dealer stock, down about 108,000 vehicles (or 12 percent) compared with the same period last year, and down 105,000 vehicles from year-end 2008. These new scheduling actions will help reduce U.S. dealer inventory levels to a level of approximately 525,000 vehicles by the end of July.
A lot of auto suppliers have tried to diversify in the past few decades, and that's a trend that's bound to continue. Some have been successful. National Public Radio's "Morning Edition" did a story on the trend this morning, and the main subject was a plastics industry toolmaker: TNT EDM Inc. in Plymouth, Mich.
Detroit Public Radio's Sarah Cwiek notes that back in 2003, TNT saw many of its customers consolidating or going bankrupt, so it took steps to find non-automotive customers.
"We started taking a look at what was out there that would appeal to our capabilities as far as other types of markets," said Greg Rothermel, TNT's business development director. "We have a lot of the high-tech processes and technologies that work well within aerospace defense."
Last year aerospace-defense accounted for about 25 percent of TNT's business, and this year it will reach 50 percent. Sales have grown, too -- from $10 million in 2003 to $12 million last year.
It's nice to see an auto supplier having success diversifying. For some tips on how to tackle new markets, check this video of Brian Jones from Plastics News' recent Executive Forum.
Rhoda Miel, our staff reporter in Detroit, is at the SAE 2009 World Congress this week, but she notes that the trade show is nothing like what it used to be.
There aren't many plastics companies there, and the bulk of those that she spoke to aren't featuring anything new. Everything in Detroit seems to be on hold while the auto industry waits to see what will happen to General Motors.
Back in 2001, SAE had about 800 exhibitors representing 1,200 companies. This year there are 330 exhibitors.
General Motors Corp. and Segway were showing off their "Project PUMA" prototype electric people mover in New York today for the New York auto show. Here's a story on the introduction from AutoWeek's Greg Migliore.
Since it's a prototype, they're not talking about what kind of materials might go into an actual production vehicle, if it's made, though obviously there would be some at least in the lithium-ion batteries.
Check out this video of the prototype driving around the city. It looks a lot like a speedy electric wheelchair that can fit two people. You'd better be really friendly with the person sitting next to you -- because anyone who sees you driving down the road together is going to assume you're really friendly.
Mohamed Al-Mady, CEO of Saudi Basic Industries Corp. of Riyadh, Saudi Arabia, the world's largest chemical company, gave a live interview to CNBC's Erin Burnett yesterday. The interview covers Al-Mady's thoughts on the global recession, plus a few comments about the plastics sector.
Asked whether there's any hope for a recovery soon, Al-Mady says: "We are beginning to see some glimpse of hope. I think the light at the end of the tunnel is visible right now because of depleted inventory and because of the things we have done in our industry ... reducing capacity worldwide."
He adds that Sabic has seen good signs of recovery in China and the United States, although he couches that a bit, noting that "everything is relative."
Sabic has seen some improvement in prices, but he adds that it remains to be seen whether increases will stick, he said.
Although Al-Mady was recently quoted elsewhere saying Sabic had badly timed its purchase of GE Plastics (paying $11.6 billion in 2007), he continues to emphasize that the company is taking a positive long-term view of the business.
"We are bullish on plastic for the future. Plastic will always be with us," Al-Mady said.
How will auto suppliers fare under Obama's new plan?
Automotive suppliers must be wondering how they will fare under President Obama's plan for General Motors and Chrysler -- dubbed the "New Path to Viability."
Obama's plan, released this morning, has little specific about suppliers, and nothing about plastics. Here's the relevant passage about supplier companies:
Trade creditor support will be essential to the success of the effort to restructure GM and Chrysler. The vast majority of the trade at GM and, as part of the Fiat deal, at Chrysler, will carry through the process and be fully paid. In addition, the Administration recently announced a new $5 billion Supplier Support Program. This program is already providing suppliers with the confidence they need to continue shipping their parts and the support they need to help access loans to pay their employees and continue their operations. The Administration will work closely with the car companies to implement this program in the weeks ahead and monitor closely the state of the automotive supply base.
Meanwhile, our sister newspaper Automotive News has more details about that $5 million Supplier Support Program. Check out their story about how suppliers may find themselves passed over for the federal dollars if they have pressured GM or Chrysler by seeking faster payment than the standard 45 days or by arguing that the law allows them to break contracts because of doubts about an automaker's solvency.
Both are strategies that suppliers have been using to protect themselves in the event of a GM or Chrysler bankruptcy.
Lapham compares the complicated partnerships and other relationships among automakers and suppliers to the treaties that helped push Europe into World War I:
Remember that a century ago things were so entwined in Europe that the June 28, 1914, assassination of Archduke Franz Ferdinand, heir to the Austro-Hungarian throne, touched off the First World War. The archduke and his wife were killed in Sarajevo by a Bosnian. But that was incidental. It could have happened anywhere.
Now, with so many suppliers at the tipping point of insolvency, a Chapter 11 filing by a small but well-connected supplier could plunge the North American auto industry into a chain reaction of bankruptcies and massive financial disruption.
Interesting question. From the suppliers' point of view, they're probably more concerned with what would happen to them if General Motors, Chrysler or a big Tier 1 supplier files for bankruptcy (see Plastech Engineered Products Inc. for a recent example).
Could problems at a a small company create a similar problem? I guess that depends on how the supply chains are connected.
This is a good news/bad news post. I'll start with the good news, because we can all use some. Federal Reserve Chairman Ben S. Bernanke told "60 Minutes" yesterday that the recession will probably end this year and the U.S. economy may grow in 2010.
CBS correspondent Scott Pelley asked: "Mr. Chairman, I'm gonna start with a question that everyone wants me to ask: when does this end?"
Bernanke replied: "It depends a lot on the financial system. The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis. We've seen some progress in the financial markets, absolutely. But until we get that stabilized and working normally, we're not gonna see recovery. But we do have a plan. We're working on it. And I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year. We'll see recovery beginning next year. And it will pick up steam over time."
How about unemployment? Will we see any improvement?
"Well, it's hard to forecast exactly where we're going. Unemployment is rising. Job losses are still very severe. And no doubt, the unemployment rate's gonna go higher than it is. But I think, again, that if we do succeed in stabilizing the financial system, that we'll begin to see a slower pace of decline, and eventually, a stabilization that will set the basis for a recovery," Bernanke said.
It is nice to get some mildly positive news for a change. That message wasn't anything to jump up and down about, but at least it suggests things will be getting better soon.
Now the bad news. None of these stories are related, except that they're all the result of the credit meltdown:
Visteon Corp. expects to get "going concern" language from its auditors, because of auto industry conditions and the company's cash condition, according to this story from Automotive News today.
Compounder and sheet extruder Spartech Corp. revealed today that it will temporarily reduce the base salaries of top five executives. According to this St. Louis Post-Dispatch story, Spartech President and Chief Executive Myles Odaniell's base salary of $545,000 has been reduced 10 percent. Salaries for the other four top executives are reduced 8 percent.
Sturgis, Mich.-based blow molder Penguin LLC is laying off about 150 of its 250 employees because of the economic downturn and nonrenewal of a contract with a major customer, according to this Kalamazoo Gazette story.
Jones Plastic & Engineering will eliminate its third shift at the end of the month because of shrinking sales, according to this story from Manufacturing & Technology. The item notes that the Jeffersontown, Ky., custom injection molder "has become a captive molder that serves one primary customer," because of dwindling work.
At least I started with the good news, right? Let's hope there's more of that to report soon.
Honda of America Manufacturing Inc. has received Energy Star awards from the Environmental Protection Agency. Some upgrades to the Honda's plastics processing operations played a big role in winning the honors.
According to a company news release, Honda's Marysville, Ohio, plant "significantly reduced electricity use by reprogramming plastic injection molding machines to run only during the production cycle. This has reduced carbon dioxide emissions by 80,000 pounds per year. At the East Liberty [Ohio] plant, Honda replaced older chiller pumps with smaller, more efficient units that reduce carbon dioxide emissions by 508,000 pounds per year."
Other improvements include more efficient use of lighting, chiller systems, motors, metering, heating, compressed air and air conditioning. Another plant is monitoring the use of equipment between shifts, during lunch and breaks, and on weekends.
Saving energy continues to be a hot topic among plastics processors. For more tips, check out this video from the recent Sustain '08 conference in Chicago.
Many blog readers say they're opposed to the government bailout of the Big 3 automakers -- let them go under, or file for Chapter 11 and rebuild from there.
I recognize that many of the automakers' problems are self-inflicted, but I still feel that the industry is far too important to risk. (If it makes the critics feel any better, I think any discussion of a government bailout of the newspaper industry is completely ridiculous).
A Page 1 story in today's Wall Street Journal helps to make my case. It looks at a string of companies along the Ohio Turnpike, focusing on how the auto industry has helped suppliers to innovate -- which in turn has helped many other industries.
Thomas Klier, a Federal Reserve Bank of Chicago economist, tells the paper: "What you see with the auto industry is that it's driving a lot of technologies in the background, like machine-tool makers, that enable a large part of the economy to advance."
The story has a plastics angle: one of the companies quoted is Prospect Mold Inc., a Cuyahoga Falls, Ohio, toolmaker. Here's an excerpt:
Prospect is best known for producing molds car makers use to form taillights. Sitting in one corner of its factory is a stack of 14 huge steel molds, representing a taillight assembly for a new model for GM. But Prospect recently was told the project was delayed.
Luckily for Prospect, over the years it has used its auto-industry base to diversify into making molds for other industries, as well as into machining finished metal parts. The pressure from auto makers for greater precision and complexity led Prospect to develop skills it now uses to supply other industries that demand precision.
One of them is aerospace. "I can't imagine someone opening up a shop and saying: 'I'm going to do aerospace,'" says Brandon Wenzlik, vice president of engineering. "All those years of developing our capabilities and acquiring technology -- that's what makes all this other stuff possible."
Still, the story quotes two economists who, while recognizing the importance of the auto industy to supplier innovation, dispute whether that's a good enough reason to bail out the Big 3.
I have a feeling that some blog readers who don't support bailing out the Big 3 still might recognize the importance of the Tier 1 and 2 auto suppliers.
What did you think of the North American International Auto Show this year? I asked Rhoda Miel, Plastics News' staff reporter in Detroit, and she gave me this report:
"It was quieter in that there were fewer press conferences -- and the conferences themselves were lower in hype. The only places giving anything were Kia -- fish tacos and Coronas at the Soulster concept introduction, which I appreciated because it was the first food I'd seen all day Sunday (2 p.m.) though I skipped on the Corona -- and Fisker had champagne at its event.
"But in other ways it was just as intense. There were still 6,000 media, but in this case, a lot of them weren't auto beat reporters, but rather were there to write about the 'great automotive meltdown' or 'death of the auto industry' and they knew absolutely nothing about the vehicles or the people running the business. For instance, the woman standing in front of me at the GM press conference who turned and asked me what a car was that was driving past her. 'That's the Volt,' I said -- only the biggest hyped car from GM in the past 10 years. She turns to me again: 'How to you spell that?' And there was also the guy who turned to another reporter as Jim Press, the vice chairman and president of Chrysler LLC was speaking and asked: 'Who is that?'
"Another note: While Ford still had its stage in the adjacent Cobo Arena, where it always has its events, the stage was noticeably smaller.
"But on the other hand, I got good news out of it, so I'm happy."
That's the end of Rhoda's report -- but not the end of her reporting. Check out the Jan. 19 issue for her first batch of coverage, including a Page 1 feature on the Lincoln C concept car (featuring an innovative polycarbonate roof). There are also stories on Johnson Controls Inc.'s new foams using canola and soy oils; the Denso Corp.'s radiator end caps made from castor oil-based polymers; and the bioplastics used in Lexus's HS 250h hybrid sedan.
The North American International Auto Show in Detroit may be smaller in 2009, but there will still be dozens of new cars and car concepts introduced during the media event Jan. 11-13 and thousands of suppliers, carmakers and car models on display.
And it won’t be just about the sheet metal. From the housing for the batteries of Toyota’s electric vehicle concept to a radiator tank using bio-resin, interior trim and polycarbonate windows, plastics will have its time in the spotlight as well.
To bring just a small taste of the plastics side of the auto industry during the show in real time, Plastics News staff reporter Rhoda Miel will be micro-blogging during the event via Twitter. Just check out twitter.com/plasticsnews for the updates.
Molder and interior trim specialist Johnson Controls Inc. gets the show started at 8:15 a.m. Sunday. And if you know of a debut or press conference that we shouldn’t miss, give us a “tweet” from the show floor.
Last week, organizers of the North American International Auto Show's Charity Preview announced that current pop music sensations The Jonas Brothers would be providing tickets to a special concert to people who buy tickets to the charity preview.
This week, organizers announced that former music mainstays The Doobie Brothers would perform a special concert during the charity preview.
Something tells us that these two bands will attract wildly difference audiences.
The Big 3 automakers are unveiling their "restructuring" plans today, in preparation for going back to Congress to ask for financial help.
Ford's is already out. Here's the company's news release, and here is a copy of the full plan. One highlight with plastics implications: "Ford will improve the fuel economy of its fleet an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models -- compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015."
SPE has made the donation each year since 2001, featuring plastic yellow buses dubbed "Plastivans" in honor of the National Plastics Center's mobile teaching vans.
American Plastic Toys Inc. of Walled Lake, Mich., donated a week's worth of press time to injection mold the toys. LyondellBasell Industries' Lansing, Mich., facility donated 12,000 pounds of resin and Maple Press LLC of Troy donated decals to decorate the buses. Logistical Solutions of Romulus, Mich., supplied transportation for the toys.
This year's toys will be distributed by the Michigan Association of United Ways and the Lions Club.
And thanks to Rhoda Miel, our Detroit-based staff reporter, for tipping us off to this blog post today.
While the Big 3 automakers are in Washington this week begging for a bailout, their counterparts across the Pacific in China are quietly doing the same thing, according to this New York Times story.
The story notes that auto sales in China have been chugging along for six years with incredible 20+ percent annual growth rates, but they've been flat or down slightly this fall as a result of the global economic meltdown.
The story notes that "The Chinese auto industry faces several threats simultaneously. Weakening economic growth, falling real estate prices and a yearlong plunge in the stock market have made consumers leery of spending money. Fuel prices in China are still high despite the recent decline in world oil prices. And Chinese auto exports, mostly to developing countries in Eastern Europe, Southeast Asia, Africa and Latin America, are starting to crumble."
But the last line of the story is the real kicker. It's from an executive at state-owned Changfeng Motor, who makes the case that potential government support of U.S. manufacturing puts China at a disadvantage.
"If G.M., Ford and Chrysler get a lot of support from their government, it's not fair," said Gordon Chen, the international business manager of Changfeng Motor, which has displayed cars at the last two Detroit auto shows in preparation for entering the American market in 2011 or 2012.
Wow. That's amazing on so many levels. Welcome to the global economy, folks.
Of all the stories that are part of the global financial crisis, the potential collapse of General Motors Corp. is, to me, both the scariest and the most fascinating. So far, most of the headlines have been about the company's efforts to lobby for government assistance, and speculation about what could happen if it fails.
Our sister newspaper Automotive News posted a very good editorial on the topic -- the headline is "The cost of GM's death." The story is only available to AN subscribers, but here's a taste:
If Congress thinks a bailout of General Motors is expensive, it should consider the cost of a GM failure.
Let's be clear. The alternative to government cash for GM is not a dreamy Chapter 11 filing, a reorganization that puts dealers and the UAW in their place, ensuring future success.
No, even if GM could get debtor-in-possession financing to keep the lights on (which it can't), Chapter 11 means a collapse of sales and a spiral into a Chapter 7 liquidation.
GM's 100,000 American jobs will die. Health care for a million Americans will be lost or at risk. Hundreds of GM's 1,300 suppliers will die. Their collapse could take down Ford Motor Co. and Chrysler LLC, perhaps even North American transplants. Dealers in every county of America will close.
The government will face greater unemployment, more Americans without health insurance and greater pension liabilities.
The column concludes: "Absent a bailout, GM dies, and with it much of manufacturing in America. Congress needs to do the right thing -- now."
It's amazing to me that there are people in Washington who don't understand all that. Are they so far removed from caring about U.S. manufacturing that they would allow this to happen? Say what you want about the quality of GM's management -- but in my book, the politicians who would refuse to save GM are completely incompetent.
Toyota Motor Corp. plans to replace 20 percent of the plastics used in its automobiles with bioplastics by 2015, according to this story from Nikkei Business Publications Inc.'s Tech-On! news Web site.
Toyota's Masatoshi Matsuda announced the goal at the BioJapan 2008 conference, held Oct. 15-7 in Yokohama. The report notes that Toyota has been cautious about using bioplastics. In 2003, it started making the spare tire cover and floor mat for the Raum from a composite material made of polylactic acid and kanaf. (The Raum is sold only in Japan).
"We have not used bioplastics for any of our cars since then," Matsuda said. "We are not ready to use more bioplastics in view of the balance between the cost and the performances such as properties and formability."
But the company will start to use more bioplastics -- starting with interior parts -- in order to reduce carbon dioxide emissions, he said.
My experience with Japanese OEMs is that they're serious about these sorts of pledges -- and they often underpromise and then overdeliver. So 20 percent may not seem huge, and 2015 may seem like quite a few years from now, but I wouldn't be surprised to see progress toward meeting this goal a lot sooner.
General Motors Corp.’s production version of the Chevrolet Volt has been getting plenty of press since the first photos began leaking out a week ago. Now with its official unveiling at GM’s 100th birthday party on Sept. 16, the media has finally started getting a close look at it.
There are some big differences between the concept Volt that rolled out at the North American International Auto Show in Detroit in January 2007 -- especially in the body structure. While GM engineers aren’t saying much about it, they did say that the body panels will be made of metal, unlike the concept which had a lightweight thermoplastic skin.
But plastic is still making a statement in the plug-in electric car, with splashes of white plastic in the interior. GM’s Global Design Director Ed Welburn told the Los Angeles Times that the carmaker wanted to mimic the design cues of today’s industrial design icons, including Apple Inc.’s iPod.
You can check out the inside view yourself through a GM video of the interior here.
Finally, special thanks to Rhoda Miel, our staff reporter in Detroit, for contributing this item to the blog today.
Michigan State University is touting a start-up company that is commercialing a material developed by researchers from the school's Composite Materials and Structure Center. The material, -- xGnP Exfoliated Graphite NanoPlatelets -- can make "plastic stiffer, lighter and stronger and could result in more fuel-efficient airplanes and cars as well as more durable medical and sports equipment."
The company is XG Sciences Inc., with offices in East Lansing and a manufacturing plant in Lansing, Mich. The research was led by Lawrence Drzal, a professor of chemical engineering and materials science and director of the composites center.
The company claims its technology can make better nanocomposites:
Our nano-particles consist of small stacks of graphene layers that can replace carbon nanotubes, nano-clays, or other carbon compounds in many composite applications. When added in trace amounts to plastics or resins, our nanoparticles make these materials electrically or thermally conductive, and less permeable, while simultaneously improving mechanical properties like strength, stiffness, or surface toughness.
For example, when our graphene nanoparticles are added to nylon, the resulting nanocomposite is significantly less permeable to gasoline or other fuels while also dissipating static electricity. This composite is an ideal material for lining fuel tanks.
Other applications listed on the company's Web site inlcude electronic enclosures, automotive parts that can be electrostatically, aerospace composites, appliances, batteries and fuel cells.
Automotive applications for nanopolymers are especially interesting. These materials are proving that they can help plastics compete with metals in new applications, saving weight and therefore boosting fuel economy.
"I have received reports today that Sintex Industries had offered to acquire CSP. We have not had any discussions regarding selling CSP to Sintex and to set the record straight, CSP is not for sale," CSP CEO Bruce Landino said in the news release.
"With the significant increase in steel prices and the cost of fuel, we are growing our revenues and expanding the products we produce. We are focused on continuing to grow our presence not only in the auto sector, but also in the housing and HVAC and industrial sectors."
Another report from India later clarified that Sintex is looking to make an acquisition in Europe or North America, but that the company was not commenting on specific potential deals.
Sintex has been active in North America in recent months, first buying Wausaukee Composites Inc., and then the assets of Pla-Ma USA LLC.
When a customer says he wants a part to be lighter, plastics component suppliers figure they've got a foot halfway in the door. But this story by Design News contributing editor Doug Smock notes that Ford Motor Co. is focusing on lighter weight metal -- not plastics -- in its efort to improve fuel economy on vehicles currently being designed.
Smock interviewed Shawn Morgans, Ford's body structure technical leader, who said the carmaker's focus is on using thinner-gauge, high-strength steels.
“I don’t know if you’ve noticed, but our head man is from the aircraft industry and he doesn’t understand why our vehicles aren’t lighter already,” said Morgans. He was referring to Alan Mulally, who became chief executive officer of Ford in 2006 after a 37-year career at Boeing, going from engineer to executive vice president. Mulally was involved in the game-changing decision to go to all-composite aircraft bodies at Boeing.
But despite Mulally's experience at Boeing, Ford apparently isn't hooked on composites. Smock writes that Ford expects to use more high-strength composites in front-end applications, but has "no plans to introduce dramatic new plastic technologies such as carbon-fiber reinforced composites. They’re too expensive right now, said Morgans. There are also technical problems with much-discussed efforts to make roofs out of polycarbonate. Scratch and weathering problems still have to be resolved, said Morgans."
For another opinion on the future of polycarbonate windows and roofs, check the March 10 issue of Plastics News for a feature on Exatec LLC by our Detroit-based staff reporter Rhoda Miel.
I've got two nice stories to share this week about how Plastics News benefitted by cooperating with other Crain publications.
The first really started a week ago, on Feb. 1. Automotive News learned late in the day that Plastech Engineered Products Inc., the No. 6 injection molder in our ranking, had filed for Chapter 11. The news came too late for PN and AN deadlines (although we already had an AN story on Plastech's problems on Page 3 of our Feb. 4 issue).
AN posted a story about the bankruptcy on its Web site late in the evening, and Phil Nussel, their special projects editor, emailed copies to me and to Crain's Detroit Business. I quickly plasticized it a bit and posted it on our site about 10 p.m. By sharing their scoop with us, I believe we beat the Wall Street Journal and the Detroit dailies with the news. I was pleased to see that many of our readers discovered the story over the weekend -- by Monday it had climbed near the top of both our "most emailed" and "most popular" story lists. (it's still in the top 3 on both lists for the past 30 days).
But the cooperation was just beginning. On Monday, AN,CDB and PN started to work together on follow-up coverage, sharing sources and information on how Plastech's bankruptcy shut down some Chrysler assembly plants, and then on how the companies reached an agreement that allowed Chrysler to restart production. We posted several follow-up stories throughout the week.
On Thursday, Rhoda Miel, our Detroit-based staff reporter, finished a story of her own on how other molders might get a chance to bid on Plastech's Chrysler work, and the many issues involved. Rhoda told AN about the story, and they were interested, so we shared the story on Thursday night. Both PN and AN posted it on our Web sites this morning. Until a few minutes ago, it was the lead story (top-right position) on AN's Web site, and if you click through you'll see Rhoda's byline, and full credit to Plastics News.
The second story of cooperation involves the ongoing work that we've been doing with our Plastics News Global Group sister papers Plastics & Rubber Weekly and European Plastics News on the Sumitomo-Demag acquisition story. You'll recall that PN and our Croydon, England, friends broke this news back in January, days in advance of published reports in Japan and Europe. David Vink (EPN's senior editor in Dusseldorf, Germany), Steve Toloken (our staff reporter in Guangzhou, China) and Bill Bregar (our senior reporter in Akron, Ohio) worked together on that story.
We've continued to track the story, and today it paid off with a big scoop: Steve confirmed with Sumitomo that its board of directors had signed a deal to buy Demag. Sumitomo provided Steve with a lot of detail, but declined comment.
As soon as we had the confirmation, we brought David Vink into the loop. We emailed Sumitomo's information to him, and I called to see if he could quickly try to reach Demag officials before the end of the business day in Europe.
David quickly reached Demag CEO Klaus Erkes and got some excellent comments -- far better than the "no comment" that we were half-expecting. David forwarded the comments to Steve, who folded them into his story, and we ended up with a double-byline story on the top of Page 1 in our Feb. 11 issue, and on our Web site. I believe that, once again, we are first in the world with this story.
Steve and Rhoda did a great job working with their Crain colleagues, especially David Vink and Phil Nussel, on these big stories. I hope our readers appreciate their efforts. We love giving our readers the opportunity to be first in the world to learn about these big plastics-related stories. As Robert Grace, our editor and associate publisher, said today, these examples underscore the value of Crain's global news network, drawing on the expertise of our staff reporters in Guangzhou, Dusseldorf, Detroit and Akron.
And I would also like to thank Ron Shinn, who suggested that I share the "story behind the stories" with our blog readers.
Plastics could certainly benefit if governments around the world decided to really crack down on fuel efficiency. Auto makers would have to find ways to make vehicles lighter, and we could see an explosion of plastics in many applications. But that could be small potatoes compared to a proposal floated by Mark Moody-Stuart, the former chairman of oil giant Royal Dutch/Shell Group.
Moody-Stuart is actually suggesting that the European Union ban the sale of cars that get less than 35 miles per gallon!
Here are some excerpts from his column, courtesy of BBC News:
I am a great believer in both the power of consumer choice and the market. As we come to understand the consequences, we do tend to make greener choices.
But most of us will only make those choices if they deliver the convenience and utility to which we are used or aspire; and if they do not cost more (or we can afford the luxury of choice).
Consumer opinion and choice is important, but it will not do the trick on its own. Its importance is in encouraging companies to supply the market in more climate friendly ways, and most importantly in encouraging governments (for whom consumers vote) to take the steps needed.
He also calls for a carbon tax, and says that regulation is needed to bring about changes that are beneficial to society -- he compared his proposal to regulations that require vehicles to use unleaded gasoline, catalytic converters, seatbelts and airbags.
He specifically calls for banning gas guzzlers and steadily increasing the total efficiency of any vehicle sold.
You can buy the roomiest, vroomiest car, as long as it meets the efficiency standard.
My wife and I have driven a hybrid since 2001 and it is a beautiful and comfortable piece of engineering, silent and will do 100mph (we tried it, but not in England!).
That may not be the best technology - the market will find out. But we must constrain the market in an efficiency framework.
To achieve the same through taxation would mean fuel taxes at levels which would play havoc with industry, countryside dwellers and the poor who need transport.
What do you think? It's fine to argue in favor of consumer choice. But at the same time, when I see gas prices rise above $3 per gallon, I'm reminded that prices are governed by the laws of supply and demand. If the millions of people driving gas guzzlers had purchased fuel efficient cars instead, demand -- and prices -- would be lower. When I'm paying $20 and getting less than half a tank of gas, Moody-Stuart's proposal is tempting indeed.
And plastics would definitely benefit. Imagine, for example, how quickly the market for nanocomposites would grow if automakers had to take a serious look at finding lightweight alternatives for all that sheet metal?
India's Tata Group generated headlines around the world this week when it unveiled the long-promised Nano, a $2,500 car aimed primarily at emerging markets. Plastics play a big role in the Nano, but not necessarily in some of the applications that were originally planned.
The Times of India has a very interesting question-and-answer interview with Tata Group Chairman Ratan Tata, which covers some of the plastics details, as well as a wide vareity of other issues.
Here are a few of the plastics-related tidbits:
We decided to look at everything from scratch. I thought that we could have a car made from engineering plastics that would not be welded but use adhesives. But some of these concepts did not lend themselves to costs or volume manufacturing. So we moved on to a more conventional kind of car.
That led us to configure a small car which would be a full-fledged car. We started again in an evolutionary way. It started with a concept of being a four-wheeled rural car. Do we have roll up plastic curtains instead of windows? Do we have openings like autorickshaws have instead of doors, but have a safety bar? We had many such early concepts and we finally decided that the market did not want a half car. If we wanted to build a people's car it should be a car and not something that people would say, 'That is a scooter with four wheels or an autorickshaw on four wheels'. And so we decided to do a car and really pare the cost.
Can we expect to see the Nano in the United States? Tata thinks so. Asked "who are your potential customers?" he replies: "Rather than look at it geographically, look at who might be the buyer of the small car. If you look in the US or Europe, in some garages that have a Bentley or two, or a high-end Mercedes, you may also find a Smart (a subcompact car from Mercedes). Because that person thinks that it is a fun extra car to have. Then you may have a person who needs utilitarian transport and is not looking for a lot of creature comforts. Then you look at someone who is thinking of owning or owns an existing small car—to him this makes sense because it is more fuel efficient and costs less. On the other side, you have someone who aspires for a car. And this can come from anywhere in the country."
The United Auto Workers and General Motors Corp. today announced a tentative contract agreement, two days after the union launched it first national strike against GM in 37 years.
According to a report from our sister newspaper Automotive News, the new four-year deal includes a comprehensive health care trust fund for UAW retirees and broad job guarantees for UAW workers in the United States.
Some more details, from AN and attributed to various sources::
The health care trust would be strong enough to remain solvent for at least 80 years. Analysts said GM has agreed to finance the trust at 70 percent of its long-term liability, or $35.0 billion.
The agreement also includes job guarantees and new investment in products for U.S. plants.
The agreement includes a signing bonus and a provision that would allow temporary employees to be made permanent starting at their current wage of $18 per hour, said a source briefed on the details. Veteran production workers earn about $28 per hour.
GM also plans to offer another early-retirement and buyout to workers.
The agreement calls for a wage increase of 3 percent in the second year, 4 percent in the second year and 3 percent in the third.
The end of the strike didn't come quite soon enough for some plastics companies. According to this report in the South Bend, Ind., Tribune, Nyloncraft laid off 85 workers at its Mishawaka, Ind., plant for five days, as a result of lost GM business.
Byron Cancelmo, who is in charge of sales and business development at Peninsula Plastics Co. in Auburn Hills, Mich., has invented a device that could help professional musicians avoid disasters like this (Ashley Simpson's infamous performance at the 2005 Orange Bowl).
The invention is called the vocal acoustic monitor, or VAM. It helps singers hear how they sound when they are on stage, according to this Associated Press story.
"A lot of time a singer is off-key because he can't hear himself," [Cancelmo] said. "It's hard to maintain a good vocal quality on stage if you can't hear yourself."
Live performers are always compensating for the ambient sound.
"Have you ever covered your ears and talked? That's what you hear on stage. Now you have to maintain a pitch," said Cancelmo, whose musical career has included touring Europe with a highly regarded men's choir while he was in college and performing with his own band, B&R, in clubs around Detroit.
"I've played hundreds of shows, and I think only 2 percent or 3 percent of the time I could hear everything," he said.
The VAM is clipped to the microphone and funnels the "true" sound back into the performer's ear, helping him understand almost instantly how he is coming across to an audience in any kind of setting.
"It's what you hear in the studio through the headphones. It's crisp. It's clear. It's you," Cancelmo said. "Strangely enough, the louder the environment is around you, the better you can hear yourself. You can't really put a price to that."
According to the story, VAM took more than $200,000 to develop. Cancelmo plans to get a global patent, and now he's getting tooling for the project.
He credits Peninsula Plastics for supporting his project, even though it's a bit outside the company's normal automotive thermoforming work. The story quotes Richard Jositas, Peninsula Plastics' owner and chief executive, saying he's glad Cancelo came up with VAM, because it has the potential to help diversify the company's business mix.
"Being primarily an automotive supplier in Detroit, we're looking for opportunities outside that core industry to help stabilize some of the peaks and valleys in our own business," Jositas said. "I think it was just worth taking a gamble on this one. It's still in its neophyte stage but we have great hopes for it.
"I wish we had more employees coming up with great innovations we could take to market," said Jositas.
In a bit of fun news out of the Frankfurt, Germany, Motor Show, toy car maker Herpa Miniaturmodelle of Dietenhofen, Germany, announced that it wants to develop a new version of the beloved, and oft-ridiculed, Trabant.
The Trabant was produced in the former East Germany for 30 years. In addition to the smoky, low-powered two-stroke engine (like your lawn mower's), the car featured a roof, doors and other structural parts made with a plastic composite called Duroplast, a thermoset phenolic reinforced with cotton or wool.
This report by David Vink, a reporter for our sister publication Plastics & Rubber Weekly, notes that Herpa has acquired the Trabant trademark.
"We want with our initiative to bring the Trabi onto the roads in a new form, in order to continue the history of this cult object," said Herpa Managing Director Klaus Schindler.
Now that East Germans have a choice, how many would actually choose to buy a Trabant?
The big news in the automotive market today is that James Press has left his position as president and chief operating officer of Toyota North America Inc. to become vice chairman and president of -- Chrysler LLC!
Press is very well respected in auto circles, and he was the first non-Japanese executive to head the Toyota unit. He had spent 37 years at Toyota.
This sort of thing happens fairly often in the auto industry, with companies hiring top execs away from competitors (or suppliers, or customers). Sometimes it works, sometimes the job change is temporary. This is for sure, Chrysler made a splash with this announcement.
Is the downturn in the housing market hurting automotive sales? Yes, according to a new report from CSM Worldwide, a Northville, Mich., automotive forecasting firm. According to a release issued yesterday, "CSM analysts reaffirmed their prediction that consumer budgets stretched to the breaking point as a result of the mortgage crunch will drag sales down to 16.2 million units this year - 350,000 fewer vehicles than in 2006. It would be the lowest sales level since 1998."
According to the report, car sales historically correlate closely to housing starts, which were down 26 percent for the first six months of 2007.
Then the news got even worse: housing starts were down another 6 percent in July to the lowest level in more than 10 years.
"We looked at data going back to 1970, and it's remarkable how closely light vehicle sales mirror housing sales, particularly new housing starts," said CSM Senior Economist Charles Chesbrough. "With many consumers having a harder time getting mortgages or coping with higher payments from their adjustable rate mortgages, there will be a considerable impact on light vehicle sales. Weak sales of existing homes and declining home values also are dampening consumer spending, leaving less money available for vehicle purchases."
When will the market improve? Not until the end of 2008, they say. "Market fundamentals have deteriorated and will need at least a year to rebuild," according to the release.
Now we see why the Federal Reserve suddenly decided to try to bring down interest rates. Too bad they didn't see this coming six months ago.
The folks at Chrysler LLC are calling this their "first day." It's a good idea, to stress the company's message as it embarks on a new path, owned by Cerberus Capital Management. The company's ad campaign, "The Next Hundred Years," reinforces the idea that this is a fresh start, and the company has a solid future.
Chrysler's new president is Robert Nardelli, former Home Depot Inc. CEO. (he's also a former General Electric Co. manager). Nardelli earned praise at Home Depot (he's on a list of "best managers of 2004" from BusinessWeek magazine), but he resigned from the retailer in January after coming under fire for his generous compensation package.
What sort of magic can Nardelli weave at Chrysler? It will be interesting to see what changes are in store, and how Chrysler's competitors will react.
The DaimlerChrysler experiment officially is over, as private equity investor Cerberus Capital Management LP today completed its purchase of a majority interest in Chrysler Group. Cerberus now owns 80.1 percent of Chrysler Holding LLC, and DaimlerChrysler retains a 10.9 percent interest.
DaimlerChrysler will be renamed Daimler AG.
Dieter Zetsche, chairman of the board of DaimlerChrysler AG and head of the Mercedes Car Group said, "Today marks a new chapter in the history of our company. Based on the clearly defined strategies in our Mercedes Car Group, Truck Group, Financial Services business divisions and for vans and buses, and our company's healthy balance sheet, we have every reason to move confidently into the future."
I have a feeling Chrysler will survive the next decade. Beyond that, who can say what hurdles we'll see from international competitors? The company has a decent product mix right now, and brands like Jeep that will have a loyal following forever.
Do plastics suppliers expect to see much change, with Chrysler in the hands of a private equity firm?
India's Tata Motors Ltd. is discovering that there are limits to how cheaply it can make an automobile, according to this Reuters story. According to the report, Tata is developing a car that it can sell for 100,000 rupees (US$2,485.60). But high material costs and production delays might force it to raise the price to 125,000 rupees (US$3,107).
Suppliers, already grappling with volatile raw material costs and softer domestic demand, are baulking at Tata's price and delivery targets. Some have reportedly turned down its orders and others are seeking guarantees on volumes and prices.
"The Tatas' demands are pretty aggressive, be it on product, cost or delivery," said one supplier who asked not to be identified. "We're being stretched."
According to the story, Tata has encouraged suppliers to set up factories near its plant, and it has invested about $450 million in the project. To save money, it's looking at using recycled plastic as a raw material, and "modern adhesives" (doesn't that mean glue?) instead of welding.
Can anyone really build a car that costs about the same as a nice riding lawnmower? We'll find out in a few months. Here's some advice to potential buyers -- you might want to purchase an extended warranty.
Our sister newspaper Automotive News is reporting today that International Automotive Components Group, the company owned by billionaire Wilbur Ross, has a deal to buy Collins & Aikman Corp.'s plant in Hermosillo, Mexico.
According to the story, Ross is paying $17 million and assuming some liabilities to buy the plant out of Chapter 11 bankruptcy protection.
The 430,000-square-foot plant generates more than $200 million in sales annually supplying complete interiors to Ford Motor Co.'s Hermosillo assembly plant. Ford makes the Fusion sedan at the plant.
In an interview today, Ross said he likes the location and the Ford business the plant provides. He has bought distressed assets in recent months from Collins & Aikman and Lear Corp. to create a worldwide parts business of about $5 billion.
In case you forgot, the Hermosillo plant is the C&A plant that briefly halted shipments to Ford back in October because of a long-running pricing dispute.
The 2007 version of the Harbour Report, which compares productivity of North American auto assembly plants, was released yesterday. The $595 report by Troy, Mich.-based Harbour Consulting Inc. is required reading in the auto industry -- but even the free 38-page news release which announced the release of results has plenty of meaty tidbits. For example:
Toyota and Honda have a pre-tax profit margin of $1,200 per vehicle sold in North America, Chrysler lost $1,072 per vehicle sold last year, GM lost $1,436, and Ford lost $5,234. "This reflects a variety of factors, including the large difference in health care and pension costs, lower average revenue, as well as higher costs of rebates and low-interest rate financing required to trim inventories."
Also: The United Auto Workers and Canadian Auto Workers unions "were more proactive in 2006 than ever before in creating a more competitive environment among the companies whose hourly workers they represent. Chrysler, General Motors and, especially Ford, negotiated more flexible local labor agreements prior to this summer's pivotal national talks with the UAW. However, they must go further to overcome their persistent health care and pension cost disadvantage vs. Honda, Nissan and Toyota. Restrictive labor agreements that create cost disadvantages still exist and could jeopardize the survival of certain automakers."
Toyota leads the six largest competitors in total manufacturing productivity (assembly, stamping, engine and transmission), using 29.93 labor hours per vehicle.
General Motors wins 3 of 4 Best Plant awards.
Fewer plants are producing more vehicles and a wider variety of models supported by flexibility and productivity gains throughout the industry.
"Improving productivity in the face of lower production is a huge accomplishment, but none of the domestic manufacturers can afford to let up," said Ron Harbour, president of Harbour Consulting. "General Motors essentially caught Toyota in vehicle assembly productivity. Considering that they will be building vehicles in 2007 with dramatically fewer hourly employees in the U.S., GM, Ford and Chrysler likely will reduce their hours per vehicle significantly."
Maybe it's a guy thing. The "Build-A-Bear" concept never really made sense to me -- why would kids stand in line to make a stuffed animal at the mall? Yet a related concept, covered by the New York Times today, looks perfectly reasonable to me: shops where kids can go to build custom plastic cars.
The stores, called Ridemakerz, are related to the Build-A-Bear workshops -- in fact, Build-A-Bear founder Maxine Clark invested $3 million in Larry Andreini's concept for the "build a toy car" shops, plus an estimated $15 million in support, according to the Times story.
Fathers and sons make up 70 percent of his target audience. Here’s what they can expect at the Ridemakerz store.
Customers select a chassis type (street or monster); body styles (stock or custom, a Ridemakerz brand hot rod, a Ford Mustang GT or Dodge Ram pickup, to name a few options); paint schemes; sound effects (for example, sirens or race sounds) and style of locomotion (free wheel or radio control).
After the 10- to 12-inch cars are assembled, there are ample customizing and accessorizing options: tire treads, grille guards, side pipes, snowboard racks and decals. Mr. Andreini estimates that a fully tricked-out vehicle will run about $75, including $25 for radio control. For the budget-minded, there’s a stock tuner car for $12.
Seems like a neat idea, although one analyst quoted in the story noted that "Hard plastic isn't as inherently profitable as cloth."
Chrysler's new owner has a plastics industry pedigree. Cerberus Capital Management LP agreed today to buy 80.1 percent of Chrysler from Stuttgart, Germany's DaimlerChrysler AG for $7.4 billion. (Apparently that means DaimlerChrysler paid a bit too much for Chrysler nine years ago, when it paid $36 billion for the whole company).
If New York-based Cerberus rings a bell to Plastics News readers, it's because the company has bought and sold some plastics processing companies. In 2002, Cerberus bought fuel system supplier Pilot Industries Inc. out of Chapter 11, buying it for $41.5 million and selling it for $85.4 million less than a year later. (I guess that helps to answer the question, "Why would Cerberus invest in an automotive supplier?")
In 2004, Cerberus bought auto parts maker Peguform GmbH of Botzingen, Germany, which also was operating under Chapter 11 bankruptcy protection. And in 2005, Cerberus tried unsuccessfully to buy construction major Royal Group Technologies Ltd.
Royal eventually ended up instead in the hands of Georgia Gulf Corp.
Cerberus could be a short-term owner for Chrysler, according to a Bloomberg story that quotes David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.
Management may be negotiating with private-equity investors to give UAW leaders ammunition to convince rank-and-file workers of the need for concessions, he said. Meanwhile, other potential buyers including Chery Automobile Co. Ltd. of China or Renault SA and Peugeot SA of France are biding their time, Cole added.
``They're waiting for the private equity companies to do some of the cleanup work to make Chrysler an attractive deal, where right now it probably isn't,'' Cole said.
So expect a showdown between Cereberus and the United Auto Workers -- and expect it soon.
Cerberus Capital Management LP is pulling out of its previously announced deal to buy Delphi Corp. out of Chapter 11 reorganization. Delphi, in a news release today, said Cerberus, a private equity firm, is withdrawing becauses of differences over Delphi's future value.
Other private equity players that are part of the bid to buy Delphi for as much as $3.4 billion remain interested, including Appaloosa Management LP.
Delphi has a nonbinding agreement to sell its interior and closures unit to Renco Group Inc. Cerberus' move does not appear to jeopardize that deal. That unit ranks as North America's third largest injection molder, according to our recent special report.
Dog food and car interiors. What do they have in common? Both products have been in the news recently. But, more specifically, both stories are hard to understand because media reports on the topics seem too simplified, and scientific experts quoted give contradictory explanations. I'll call them "whose science do you believe?" stories.
The pet food story is a good example. A week ago, the Food and Drug Administration said melamine in certain brands of pet foods was killing dogs and cats. FDA linked melamine to wheat gluten from China, and announced that companies had voluntarily recalled certain products. In the past week, the news wires have been filled with stories and updates. Various experts have either disputed or confirmed FDA's theory. It's not clear to pet lovers whether melamine is to blame, and, if so, where it came from. It's all very confusing.
The other "whose science do you believe?" story is the result from a report from a Michigan group called the Ecology Center that charges that plastics in car interiors emit toxins. The group's newest report ranks cars, so that consumers can avoid cars that emit the most and worst toxins.
Here's what a typical news story, from CBC News, had to say about the report:
A new report from a U.S. environmental group suggests the "new car smell" long beloved by the purchasers of vehicles could be a sign of harmful chemicals inside the car.
Much of the smell comes from plastics and materials used inside the car, from the steering wheel to the dashboard to the carpets — parts often made with chemicals including flame retardants, plasticizers and other chemicals that can give off gas or leach into the environment.
However, shortly after that report was released, another came out with the opposite conclusion.
Toxicologist Jeroen Buters at the Technical University of Munich in Germany and his colleagues investigated the health effects of volatile organic compounds that cars emit. They focused on conditions mimicking those where the molecules would likely get emitted most in cars—when parked in hot sunshine. ... New car smell does not appear to be toxic, the scientists found. Air from the new car did cause a slight aggravation of the immune response that could affect people with allergies, but the same was not seen with the older vehicle.
Which report should we believe? It's hard to tell. One place I like to check is www.stats.org, which is affiliated with the Center for Media and Public Affairs at George Mason University. The site monitors the media to expose abuse of science and statistics. (The site has a post on the "new car smell" toxin story that's worth reading.)
But if most of the news media won't bother to put these "whose science do you believe?" stories into the proper context, we certainly can't count on most consumers to do it themselves.
Former Collins & Aikman Corp. CEO David Stockman is accused of securities fraud in an indictment unsealed by federal authorities today. According to a story on Automotive News' Web site, Stockman "is accused of securities fraud for accounting irregularities and incomplete financial disclosure in the months leading up to the bankruptcy filing of Collins & Aikman in May 2005." (I'm linking to the magazine's Web site because you'll need to register on the site to get the full story).
Three other former C&A executives also were indicted: former vice chairman Michael Stepp; former controller David Cosgrove; and Paul Barnaba, former director of financial analysis in the purchasing department.
Automotive News also has a story on the Web, and in its March 26 issue, that says C&A's bankruptcy has cost North American automakers $665 million in loans, price supports and operating subsidies. Some 80 percent of that has been borne by the Big 3.
C&A was the No. 1 injection molder in North America last year, according to our ranking, but the company is in the process of selling its plastics assets.
Our sister paper Crain's Detroit Business has a rare interview with Carl Icahn in today's issue, in which he answers the question, why does a billionaire want to buy an automotive supplier?
"If you look at my history, I've done this all of my life. You buy companies that are not in favor," Icahn said in an interview with Crain's Detroit Business on Friday. "You go against the emotion. You go against the tide. You don't go with the crowd, you go against it."
Lear Corp. on Feb. 9 agreed to a $5.3 billion buyout from New York-based American Real Estate Partners LP, a company affiliated with Icahn. Icahn explains in the interview that the idea of a buyout came up in a dinner meeting in January with Lear Chairman and CEO Bob Rossiter.
"Bob and I were talking about his vision for the company, and he said it's hard to maintain a long-term focus in volatile and difficult market conditions, because if you stumble and the stock goes down even in the short term, your customers and suppliers start to worry," Icahn said. "So then I suggested "Why don't you think of taking it private?' And he said, "Let's explore it.' "
Icahn's prescription for Lear: to cut costs while "continuing to invest in new products, technology and plants."
The Lear deal isn't guaranteed -- some investors believe Icahn's offer is undervalued. But it would be surprising if someone stepped up with a more lucrative offer.
Interested in what industrial designers think about plastics? Check out the "plastics primer" posted a few days ago on core77.com, a Web site that serves the global design community.
The column is authored by Carl Alviani, an industrial designer at FlatHED in Portland, Ore. It touches on the history of plastics, some significant applications, and the differences among polymers. The column also includes lots of useful links. Although it's intended for designers, the primer has plenty of information that would be useful for folks in the plastics industry. Plus, Alviani reaches some interesting conclusions on how designers should take advantage of the unique nature of different plastics, rather than using them to try to mimic traditional materials.
Product design today frequently means plastics design, and there are a number of compelling reasons to design plastics in a way that distances them from the "cheap plastic" perception. From a marketing standpoint, consumers are wary of objects that look like inferior imitations, and from a sustainability perspective, the less disposable an object feels, the better. The encouraging message for designers is that there is a wide array of ways to achieve this distance. Revealing polymers for what they are is key, as is educating the consumer to appreciate what a perfectly chosen material they hold in their hand, either through marketing or through design cues.
He adds:
Perhaps it's going too far to advocate a total embargo on imitative finishes on polymers, but a limited one seems well in order. Just as building a brick house and then painting it to look like wood is absurd, so too with many consumer goods; especially those, like point-and-shoot cameras, that are guaranteed to eventually be caught out. Given the thousands of alternative ways to allow plastics their own unique aesthetic, and the inexorable forces pushing consumers towards their acceptance, designers are running out of excuses for playing dumb.
Let me relate this to a common design-related complaint about plastics. In many stories that I see about new car and truck models, the reviewers complain about the interiors looking "too plastic," or using "cheap plastics." Is it possible that a radical change in how car designers use plastic could take away this negative perception, and perhaps even turn the negative into a selling point?
It looks like North America is about to have a new No. 1 injection molder. Collins & Aikman Corp. this afternoon announced that it has signed a letter of intent to sell most of its North American plastics business to Cadence Innovation LLC.
This is all automotive, and the deal will be monitored by the U.S. Bankruptcy Court in Detroit, where C&A filed for protection from creditors in May 2005. C&A had said in November that it planned to sell most of its assets.
One reason this deal is interesting is because it will put Cadence CEO Jerry Mosingo back in charge of some C&A operations -- he certainly should be familiar with those assets! The news release announcing the deal emphasizes that it will save jobs.
“This transaction will preserve a significant number of jobs, generate important recoveries for our creditors and represents a significant step toward confirmation of our chapter 11 plan” said John Boken, Collins & Aikman’s Chief Restructuring Officer.
The portion of the Plastics business covered in the [letter of intent] includes nine facilities in the United States, Canada and Mexico, employs approximately 3,500 people and produces products for all major North American automakers.
Is that a good thing? I thought one reason C&A was in bankruptcy was because of all the overcapacity in the North American auto supply chain.
The biggest headline in the manufacturing world today is Toyota Motor Co.'s announcement that it will build its eighth North American vehicle assembly plant on a 1,700-acre site in Blue Springs, Miss., near Tupelo.
The plant will employ 2,000, and will build the Highlander sport utility vehicle. According to the company's news release, the plant will have capacity to make 150,000 vehicles annually, and will start production in 2010. Plastics molding will be part of the operations.
Tupelo will join these Toyota plants in North America:
Toyota Motor Manufacturing, Kentucky Inc. in Georgetown, Ky., which produces the Avalon, Camry, Camry Hybrid, and Camry Solara.
Toyota Motor Manufacturing Canada Inc. in Cambridge, Ontario, which produces the Corolla, Matrix and Lexus RX 350.
Toyota Motor Manufacturing Indiana Inc. in Princeton, Ind., which produces the Tundra, Sequoia, and Sienna.
New United Motor Manufacturing Inc. (NUMMI), a joint venture with General Motors in Fremont, Calif., that produces the Corolla and Tacoma and Pontiac Vibe.
Toyota Motor Manufacturing de Baja California in Tijuana, Mexico, which produces the Tacoma and Tacoma truck beds.
Toyota Motor Manufacturing, Texas Inc. in San Antonio, Texas, which produces the Tundra.
And, beginning in 2008, a new plant in Woodstock, Ontario that will produce the RAV4.
Here's a story that's of interest to every plastics component supplier in the automotive market.
Our sister paper, Automotive News, has a story on the Web today that General Motors Corp. is in negotiations to buy Chrysler from its German parent company.
"High-level talks are taking place between DaimlerChrysler AG and GM executives," the story says. "Although the two companies have discussed cooperation on a large SUV, say sources at both companies, the potential deal would go beyond limited product development alliances."
GM spokesman Tony Cervone is quoted declining comment, but adding: "We have always said that conversations (between GM and many other parties) have happened all the time, and many times they don't come to fruition."
A DaimlerChrysler AG spokesman declined comment, and the story adds that some sources have reacted skeptically.
Changes are definitely coming to Chrysler: DaimlerChrysler Chief Executive Officer Dieter "Dr. Z" Zetsche said last week that the company was open to all options, including a sale.
If GM buys Chrysler, I'd expect to see the some big changes, relatively quickly, in the companies' supply chains.
When Alan Mulally was named chief executive officer of Ford Motor Co., we speculated that he might be able to use some of the tricks that worked at his former employer, Boeing Co., to turn around things at Ford.
One of Boeing's big success stories is the new Dreamliner aircraft, which makes extensive use of plastic composites. The spacious, lightweight aircraft is more fuel efficient than its competitors, which seemed to us like just the type of advantage that Ford needed too.
The Detroit Free Press has picked up on the story in today's issue, with a nice story headlined "One word for autos: Plastics."
The story asks, can Mulally and others in the auto industry make similar gains with vehicles as Boeing did with the Dreamliner? The answer, as we all know, is yes.
At a time when foreign oil dependence is seen as both an economic and a national security issue, advocates say high-tech plastics can be used all the way down to the traditionally steel frame -- resulting in a family sedan that can average at least 60 miles per gallon.
"It's like finding a Saudi Arabia under Detroit. That's a business opportunity. Whoever gets there first, whether it's American or the Asian automakers, is going to own the industry," said Amory Lovins, the head of an energy research center and designer of a car made of reinforced plastics.
It might take action in Washington to really get things going, in the form of long-overdue stricter fuel economy regulations.