Plastics, chemicals gain 10% in vehicles - ACC

07 December 2007 17:59  [Source: ICIS news]

WASHINGTON (ICIS news)--Plastics and chemicals accounted for $2,441 (€1,660) of value in every light vehicle produced in the US last year, an increase of 10% over 2005 and the second consecutive year of double-digit gains, industry officials said on Friday.

 

The light vehicle industry - chiefly standard passenger cars and pick-up trucks - is a major end-use customer for the chemicals industry, noted American Chemistry Council (ACC) Chief Economist Kevin Swift in a new sector study.

 

With some 13.4m light vehicles manufactured in the domestic market last year, the sector represents about $32bn in chemical and plastics sales.

 

The chemical and plastic contributions to automotive manufacturing include a wide range of molecules and components, Swift said, including plastic dashboards, interior and exterior panels, rubber tyres, hoses, manifold and valve covers, insulation, upholstery, bumpers, steering wheels, wiring harnesses, safety glass, paints, coatings, catalysts, antifreeze and scores of other applications.

 

In polymers alone, each US-manufactured light vehicle on average contains 338 pounds of plastics and composites, accounting for 8.4% of the vehicle’s weight.  That represents an 18% gain on the average of 286 pounds of plastics used in vehicles in 2000 and a nearly 75% jump from the 1990 average of 194 pounds.

 

Polymers and composites provide a variety of performance properties for automobiles, Swift said.  Depending on a specific application, they provide heat and cold resistance, flexibility or rigidity, durability and resistance to degradation or corrosion, such as stress fatigue and rust, that can disadvantage traditional materials such as steel, brass, glass and wood.

 

Weight savings are the primary advantage of plastics and composites in automobiles and light trucks, Swift noted, with each pound of polymer substituting for two or three pounds of more traditional materials.

 

“As a result, polymers help reduce vehicle weight, thus improving fuel efficiency and reducing greenhouse gas emissions,” Swift said.  Both of those performance factors are becoming increasingly important as the auto industry comes under mounting pressure to improve mileage and cut greenhouse gas emissions.

 

However, said Swift, although the percentage of chemicals-based or plastic components in automobiles continues to rise, US chemical and polymer producers do not necessarily benefit in direct proportions because foreign auto makers are gaining more market share in the US.

 

The share of domestically produced vehicles was under 80% last year, down from 89% in the mid-1990s, he said.

 

That trend represents a growing factor of lost business for US-based chemical and resin producers, what Swift calls “lost chemistry”.  Lost chemistry refers to the potential chemistry content of traded goods that is lost to domestic chemicals manufacturers when those goods are produced overseas.

 

Domestic light vehicle sales are expected to average 12.4m next year, down from a high of 14.5m in 2000.  Imported vehicles are likely to see unit sales of about 3.7m next year, up from 2.9m in 2000.  Those 3.7m light vehicle imports represent some $9.2bn in lost chemistry, Swift said.

 

($1 = €0.68)

By: Joe Kamalick
+1 713 525 2653

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