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Forged Specialty Wheels—November 2008 
Dear Colleague:

Fresh off of the SEMA show, the Alcoa Auto Wheels team is proud to provide a recap of our activities for this all-important show in Las Vegas. The team unveiled some exciting new light weight design, production and manufacturing solutions from the Alcoa hospitality suite. SEMA is also a great event to view trends in vehicle personalization. I've included some of our favorite project vehicles fitted with custom Alcoa forged aluminum wheels.

The team continues to work on several new customer wheel programs launching in 2009 and we are proud to announce how Alcoa has been selected to supply all aluminum spaceframes for the upcoming Ferrari California.

Joel

Joel Alent
Alcoa Auto Wheels
In this issue:


Alcoa Auto Wheels Innovation Open House at SEMA

SEMA Project Vehicles Featuring Alcoa Wheels

Alcoa Auto Wheels Team on the Air at SEMA

Aftermarket Wheel Sales Opportunities Identified by Fixed Ops Magazine

Alcoa Supplies Aluminum Spaceframe Technology for New Ferrari California

Aluminum Pricing
Alcoa Auto Wheels Innovation Open House at SEMA
Alcoa Auto Wheels invited guests to an innovation open house during the SEMA Show in Las Vegas. The team took the opportunity to catch up with colleagues and showcase several innovations as well as some exciting new customer wheel programs.

Alcoa continues to provide the benefits of light weight aluminum components to the automotive industry. With the recent run-up in fuel prices and concerns over environmental issues, SEMA was flush with all sorts of new "green" products. Alcoa Auto Wheels took the opportunity to unveil several innovations playing off a 60 year history of providing efficiency in wheel design, engineering and production.

The Alcoa Auto Wheels hospitality suite included a wheel and graphic display focusing on an Emerging Technologies station highlighting new and progressive advancements. The Emerging Technologies station included some of the latest innovations as Alcoa continues to refine and bring to market leading technologies, including new alloy options, drilled spoke manufacturing processes and perforated rim techniques all in the effort to lower wheel weight for increased efficiencies and improved driving dynamics. Combined, Alcoa feels that each of these emerging innovations can further lower total wheel weight by up to 20 percent. Look for more in-depth announcements and details on these emerging innovations coming soon as the team brings each of these new production methods to our customers.

If you were not able to join us in Las Vegas, be sure to contact your Alcoa Auto Wheels Account Manager for an introduction to some of these latest innovations shaping the auto wheel industry.

SEMA Project Vehicles Featuring Alcoa Wheels
The Alcoa Auto Wheels team also worked closely with customers on several project vehicles debuting at the SEMA show. Below are images of some of our favorite show vehicles fitted with custom Alcoa forged aluminum wheels.


Toyota Tundra/Ducati Transporter (22" wheels)



Dodge Ram R/T (22" wheels)



Helios Coatings/Cadillac Powered VRS
(20" front/22" rear)


Alcoa Auto Wheels Team on the Air at SEMA
Alcoa Auto Wheels also took some time to chat with leading publications and media outlets, including Car and Driver Radio and CarCrazy TV, to cover the latest news shaping the wheel category. Victor Marquez (appearing on Car and Driver Radio) and Steve Carlson (appearing on CarCrazy TV) each talked about some of the latest Alcoa wheel programs and trends in the wheel industry.

CarCrazy TV is currently editing Steve's interview for future programming placement on SPEED TV. In the meantime, here's a link to Victor's appearance on Car and Driver Radio:
http://www.itseverythingautomotive.com/videos/
SEMA_110508_3.htm


Aftermarket Wheel Sales Opportunities Identified by Fixed Ops Magazine
As new vehicle sales continue to slump, auto dealers look for additional revenue streams in all departments of the auto dealership. Fixed Ops Magazine recently asked Alcoa Auto Wheels for perspective on how auto dealers can capture revenue opportunities from selling wheel and tire packages through their parts and accessory departments.

Fixed Ops Magazine, published monthly, is the only publication exclusively devoted to the $80 billion business of auto dealership fixed operations—service, parts and body shop.

The article starts on page 24 of the October issue. Click below for a link to the issue archives.
http://fixedops.idigitaledition.com/

Alcoa Automotive News Corner
Alcoa Supplies Aluminum Spaceframe Technology for New Ferrari California
Alcoa has been selected by Ferrari S.p.A. to supply the all-aluminum spaceframe for the upcoming Ferrari California. The California, recently unveiled at the Paris International Motor Show, is the latest performance vehicle from Ferrari.

The strength and lightweight advantages of Alcoa's aluminum technologies allow Ferrari to maximize performance, strength and structural rigidity of the California to meet customer expectations. Alcoa's aluminum spaceframe is a key component to delivering another new Ferrari with legendary world-class performance.

"Alcoa's expertise in the aluminum industry and a close working relationship with Ferrari has enabled aluminum solutions to match the legendary performance of each Ferrari. We are dedicated to providing aluminum spaceframe technologies that allow Ferrari to meet all performance, safety and passenger comfort measurements for the new California," explains Kevin B. Kramer, President, Alcoa Wheel and Transportation Products.

"Working closely with Ferrari from the start of the project allowed Alcoa to maximize strength on an open-top two seat sports car while reducing mass and weight to increase performance and deliver a superb driving experience," said Kramer.

Alcoa's optimized aluminum solutions for the new Ferrari California help increase performance while lowering vehicle weight to deliver increased fuel economy and lower CO2 emissions. Particular attention was paid to fuel consumption levels, which in the case of the ECE combined cycle is 13.2 l/100 km, with CO2 emission levels of around 310 g/km.

Alcoa's spaceframe manufacturing facility is located in Modena, Italy, very close to the Ferrari plant.

Aluminum Pricing
LME Summary
Ask prices as of 25-Nov-2008 11:13:42AM (Eastern US)
  LME ($/MT) Chg vs Prior Close MW US ($/LB)
Cash 1,767 +3.75 0.8464
3 Mth 1,815 +2.00 0.8708
Avg 2008 1,776 +2.75 0.8507
Avg 2009 1,881 -0.61 0.9052
Avg 2010 2,043 -6.84 0.9869
Avg 2011 2,127 -10.40 1.0247
LME Warehouse Stocks (MT) 1,742,150 up 15,825

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