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Forged Specialty Wheels—December 2008 
Dear Colleague:

As we all are busy preparing for the holidays and New Year, I wanted to keep our December eNewsletter brief. I’ve included a significant announcement on a new wheel program with General Motors. The company is utilizing the benefits of lightweight forged aluminum wheels to help extend the range of the upcoming Chevrolet Volt. Our aftermarket wheel group is also launching Dura-Bright® technology through our distribution channel and Alcoa Transportation Products is proud to be recognized by Automotive News as a Finalist for a 2009 PACE Award.

Thank you for your continued support through 2008. From all associates of Alcoa Inc., Happy Holidays.

Joel

Joel Alent
Alcoa Auto Wheels
In this issue:


GM Selects Alcoa Forged Aluminum Wheels for Chevy Volt

Alcoa Aftermarket Wheels with Dura-Bright® Technology Now In Stock

Alcoa Finalist in 2009 Automotive News PACE Award Competition

Aluminum Pricing
GM Selects Alcoa Forged Aluminum Wheels for Chevy Volt
Alcoa was recently awarded the wheel program for the Chevy Volt extended-range electric vehicle. The special lightweight wheel improves vehicle driving range and economy.

“Alcoa is pleased to supply forged aluminum wheels for the Volt. Working closely with the GM team resulted in a wheel designed, engineered and manufactured for lightweight performance that will further extend the range of this alternative propulsion vehicle,” said Mike Parnell, Vice President and General Manager – Alcoa Auto Wheels.

General Motors has targeted the Chevy Volt to deliver up to 40 miles of gasoline- and emissions-free electric driving with the extended-range capability of hundreds of additional miles. Removing unnecessary weight from the vehicle platform was a major goal of the program.

"The Volt is symbolic of GM's strong commitment to the future ... just the kind of technology innovation that our industry needs to respond to today's and tomorrow's energy and environmental challenges,” stated Rick Wagoner, GM Chairman and CEO, during the GMnext Centennial Broadcast held on September 16, 2008.

Alcoa focused on design, engineering and production techniques to increase strength and durability while lowering the overall weight of the wheel. Forged aluminum wheels by Alcoa provide increased strength and durability gains and are typically greater than 20 percent lighter while doubling strength as compared to a similar cast aluminum wheel.

Lightweight wheels not only have a linear effect on reducing emissions and fuel consumption but can further improve driving performance and efficiency from a lower rotary inertia. As the energy used to accelerate and decelerate the wheel is reduced, less mass is required in adjacent, un-sprung components such as brakes, steering and suspension. Lowering overall un-sprung weight compounds the benefits of fuel economy and reductions in emissions.

General Motors unveiled the production version of the Volt during their recent 100th anniversary celebration in Detroit. Volt production is expected in late 2010.

“Alcoa provides the benefits of light weight forged aluminum wheel programs for many global manufacturers and is honored to be working closely with GM on the Volt. Optimizing wheel weight enhances vehicle performance increasing driving range and economy while lowering emissions,” concluded Parnell.
Alcoa Aftermarket Wheels with Dura-Bright® Technology Now In Stock
Alcoa’s aftermarket wheel team is proud to announce availability of Dura-Bright® technology for full size trucks. Originally launched in the fall and available with a chrome finish option, Discovery Series, Revolver Series and Xtreme Series wheels are now ready for order with Dura-Bright® technology.

Do you or your customers ever think, “My vehicle is a reflection of me. I feel good when my vehicle is clean. I don’t have the time to clean it and the car wash doesn’t clean the wheels”? Easy to clean Dura-Bright® technology allows owners to take pride in their vehicle and enjoy the nearly maintenance-free benefits of this award winning innovation. This unmatched surface treatment helps maintain the appearance of each vehicle and enhance the ownership experience by making the wheels easy to clean.

This is the same innovation that Alcoa has supplied to the commercial vehicle industry for many years and more recently to OEM customers including Shelby Autos, Audi (A6) and Chrysler SRT (Grand Cherokee SRT8 and Viper SRT10).

Discovery Series, Revolver Series and Xtreme Series wheels are offered in 20x9, 8-lug fitments for full size trucks from Chevrolet, Dodge, Ford and GMC. Alcoa’s Dura-Bright® technology surface treatment option is ideal for full size truck owners who use their vehicles for work or for play and want to maintain a “like new” and “just washed” appearance of their vehicle. To learn more, contact your Alcoa Auto Wheels aftermarket account manager.
Alcoa Automotive News Corner
Alcoa Finalist in 2009 Automotive News PACE Award Competition

Alcoa Transportation Products is a finalist in the prestigious 2009 Automotive News PACE Award competition. The 15th annual PACE (Premier Automotive Suppliers’ Contribution to Excellence) Award is presented by Automotive News and co-sponsors Ernst & Young and Transportation Research Center Inc. (TRC Inc.).
Alcoa Transportation Products was recognized for its Alcoa Vacuum Die Casting (AVDC) for Lightweight Door Assemblies developed as an integrated casting alloy/process/equipment “Systems Solution” which provides vehicle manufacturers within the Passenger Auto and Commercial Transportation market segments the opportunity to maximize the weight savings (30-35%), part consolidation (60-70% BOM/parts reduction) and systems cost of Lightweight Door Systems. The integration of Alcoa Wheel Products (a) patented AVDC casting process, (b) dimensionally stable high strength/high ductility casting alloys and (c) large die/part size capability has expanded the lightweight options for door inner panels beyond multiple piece stamped aluminum or steel sheet stampings.

This is the second submission of an innovation for PACE recognition by Alcoa. Alcoa Auto Wheels was previously recognized with a PACE Award in 2007 for Dura-Bright® technology.

Alcoa Transportation Products, along with other Automotive News PACE Award finalists, will undergo an extensive review process – including a site visit – by industry, academic and business leaders to select award winners, to be announced in Detroit, Michigan on April 20, 2009.
Aluminum Pricing
LME Summary
Ask prices as of 18-Dec-2008 08:46:52 (Eastern US)
  LME ($/MT) Chg vs Prior Close MW US ($/LB)
Cash 1,444 -16.25 0.7000
3 Mth 1,480 -19.75 0.7163
Avg 2009 1,524 -20.04 0.7392
Avg 2010 1,645 -19.75 0.8061
Avg 2011 1,706 -18.90 0.8339
LME Warehouse Stocks (MT) 2,068,925 up 27,100

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