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Forged Specialty Wheels—October 2008 
Dear Colleague:

The October issue of the Alcoa Wheels eNewsletter acknowledges our continued efforts to help auto manufacturers meet efficiency standards through light weight aluminum solutions. Global efforts focusing on fuel economy and reductions in CO2 emissions approach from different perspectives but always with the same goal in mind. Utilizing either approach, light weight aluminum wheels can help achieve economy and reductions in emission levels. Alcoa continues to provide some exciting new solutions.

The team has also been busy launching our first fitment of Dura-Bright® technology with Audi and we’ve been enjoying some significant press coverage with our OEM and aftermarket programs. Additionally, we are planning several technical innovations to be unveiled at the SEMA show coming up in early November.

Dave

Dave Yates
European Market Manager
Alcoa Forged Wheel Products
In this issue:


Alcoa Continues to Strengthen Solutions to Meet CO2 and Fuel Economy Standards

Audi Selects Dura-Bright® Technology for New A6

Alcoa Wheels Teams Up With Car and Driver Radio

Wheel Trends in the Aftermarket from Styling & Performance Magazine

New Aftermarket Wheels Highlighted on Trucks! TV

Alcoa Wheels Featured on The Midnight Trucking Radio Network

Preparations for SEMA

Aluminum Pricing
Alcoa Continues to Strengthen Solutions to Meet CO2 and Fuel Economy Standards
While manufacturers globally approach efficiency and environmental issues differently, the goal is always for efficiency and sustainability. Through legislation, North American auto manufacturers are regulated by fuel economy (MPG) while European auto manufacturers are limited by vehicle emissions (CO2). Different approaches to the same goal of preserving our climate, extending our natural resources and providing vehicles that are as efficient as possible. This month, the focus will be on how CO2 emission regulations are impacting European auto manufacturers.

In 1996, the average of CO2 emissions for new cars stood at 186g/km. In 2006, that number only reduced to around 160g/km, despite significant developments in engine technologies and other efficiency efforts. This limited gain is largely countered by the increasing weight of cars.

Automotive manufacturers have voiced serious concerns regarding the target of 130g/km in 2012. Proposed fines for missing targets will hinder those who are less competitive on CO2 performance. Large fines on manufacturers, and passed to the consumer, could radically change vehicle purchasing patterns. Achieving these targets may become one of the largest challenges faced by the auto industry.

The chart below illustrates the gap by which all manufacturers currently miss the 2012 EU CO2 targets of 130g/km.


Click to enlarge

Some manufacturers are closer to the average target than others, but all suffer the same symptom – excessive weight. The European Federation for Transport and Environment (T&E) recently stated, “CO2 emissions are directly related to the weight of the vehicle.” The article suggested, “(auto manufacturers) should focus on making cars leaner and more fuel efficient.”

Alcoa provides many OEM wheel programs that optimize wheel weight and meet vehicle targets. As a rule of thumb, every 100 pounds of mass reduction improves fuel economy by 1.5%. An Alcoa forged aluminum wheel can often save 20kg (44 lbs) per vehicle, although weight savings of 39.5kg (87 lbs) have been achieved, compared to an equivalent cast wheel. This magnitude of weight saving is rarely attainable from other single vehicle components and would usually require extensive capital investment with lengthy development periods. Weight savings from forged wheels are bolt-on improvements with likely zero manufacturing changes.

The effect of losing 20kg in the wheels alone is significant. In isolation, this would help to reduce carbon emissions by over half a ton in a car’s lifetime. In addition, light weight wheels not only have a linear effect on reducing emissions and fuel consumption but can further improve efficiency from the lower rotary inertia of the wheels. As the energy used to accelerate and decelerate the wheel mass is reduced, less mass is required in adjacent, un-sprung components such as brakes, steering and suspension. Lowering overall un-sprung weight compounds the results of less fuel consumption and greater reduction of CO2 emissions.

Alcoa is always looking for new solutions to reduce wheel weight for increased vehicle economy and lowered emissions. Whether working to meet the regulations for fuel economy in North America and Asia, or regulations for emissions in Europe, the Alcoa Wheels team can draw on vast experience and category knowledge to provide optimal wheel programs. Contact your Alcoa Wheels Account Manager to learn the latest on our advancements in wheel design, alloys, manufacturing and testing.
Audi Selects Dura-Bright® Technology for New A6
Audi AG has selected Alcoa to supply forged aluminum wheels with Dura-Bright® technology surface treatment for the new 2009 Audi A6 recently debuting at the Paris International Motor Show. Dura-Bright® technology is the latest innovation in aluminum from Alcoa, who first helped Audi pioneer the lightweight aluminum space frame on the original A8.

“It was clear that Audi required a new wheel solution that is durable while retaining a high quality, innovative finish,” explains Mike Parnell, Vice President and General Manager – Alcoa Auto Wheels. “By staying cleaner longer, Dura-Bright® technology wheels enhance a vehicle’s appearance allowing Audi A6 owners to enjoy their vehicle while lowering maintenance efforts.”

Alcoa’s proprietary Dura-Bright® technology surface treatment has been offered in the commercial vehicle marketing since 2003, and more recently in the automotive OEM market. Launched into the automotive marketplace in 2007, Dura-Bright® technology by Alcoa is now available on several leading Global automotive platforms. Fitment on the Audi A6 signals the first application of Dura-Bright® technology for a European luxury sedan.

“We are proud to work with Audi to provide our eighteen-inch wheel with Dura-Bright® technology for the new A6 offering easy to clean maintenance benefits coupled with the strength and light weight advantages of a forged aluminum wheel for improved driving dynamics,” concludes Parnell.
Alcoa Wheels Teams Up With Car and Driver Radio
Listen for the latest information about Alcoa Wheels on Car and Driver Radio, broadcast on XM Radio Channel 166 and over 100 local radio stations nationwide. From the pages of the world's largest automotive magazine, Car and Driver Radio brings you all the latest automotive news, product reviews, celebrity guests and more.

Click below for links to Alcoa’s thirty-second segments now airing on Car and Driver Radio and tune-in weekly to hear what’s new and what’s happening at Alcoa.
Wheel Trends in the Aftermarket from Styling & Performance Magazine
Styling & Performance Magazine recently published an article on how economic conditions are influencing wheel sales through the aftermarket. Alcoa Wheels participated with perspective on shifting consumer buying patterns in regards to wheel sizes, styles, finishes and features.

Here’s an excerpt from the article:
Still, just because consumer spending is down doesn't mean it's time to pack it in. Suppliers are adapting by reworking their business strategies and utilizing advanced technologies to build lightweight, yet strong and durable, custom wheels to accommodate every end user across all market segments. The keys for retailers are marketability, educating consumers and being educated themselves so they are able to answer questions and represent the product well, display a good product line, and have a good supplier, all of which will help to capitalize on sales.

Follow the link for the entire article:
http://www.search-autoparts.com/searchautoparts/Feature+Articles/Big-Wheels-Stop-Turning/ArticleStandard/Article/detail/531344?contextCategoryId=41884
New Aftermarket Wheels Highlighted on Trucks! TV
Trucks!, part of the Powerblock on SPIKE TV, took a moment to showcase new full size truck aftermarket wheels by Alcoa for an upcoming episode. The review segment highlights the launch of Discovery Series, Revolver Series and Xtreme Series, each available in easy to clean Dura-Bright® technology and chrome finish options. The episode is scheduled to air on SPIKE TV on November 1st and 2nd and will re-air again in January. Check local listings for programming details in your area.

Click below for a link to the product review segment.
www.jamestowngroup.com/clients/alcoa/truckstv/
Alcoa Wheels Guest Segment on The Midnight Trucking Radio Network
Steve Carlson, Director – Global Marketing, Alcoa Auto Wheels, recently joined The Midnight Trucking Radio Network as a guest during a broadcast from the Great American Trucking Show held in Dallas, Texas.

Carlson covered what’s new at Alcoa Wheels, including launch of full size truck wheels into the aftermarket featuring, easy to clean Dura-Bright® technology and the new Alcoa Retro wheel for commercial vehicle applications. The six minute segment concluded with how the company works with OEM customers to develop wheel solutions that optimize vehicle performance, safety and fuel economy.

Listen for The Midnight Trucking Radio Network broadcast nationwide on AM stations and XM Channel 171. Click the link below to listen to the entire audio segment.
www.alcoa.com/alcoawheels/north_america/en/images/gatsalcoa.mp3
Preparations for SEMA
Alcoa Auto Wheels again prepares for another SEMA show with a hospitality suite and unveiling of some new innovations along with current customer wheel programs. The team is scrambling to finish up the display, project vehicles and customer programs. Look for a full review of our SEMA activities next month.
Aluminum Pricing
LME Summary
Ask prices as of 30-Oct-2008 1:02:03PM (Eastern US)
  LME ($/MT) Chg vs Prior Close MW US ($/LB)
Cash 2,032 -67.50 0.9666
3 Mth 2,085 -69.00 0.9957
Avg 2008 2,054 -68.88 0.9765
Avg 2009 2.171 -68.17 1.0371
Avg 2010 2,323 -70.29 1.1139
Avg 2011 2,392 -72.75 1.1451
LME Warehouse Stocks (MT) 1,523,175 up 16,200

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