Boston, MA 02/07/2014 (wallstreetpr) – Alcoa Inc (NYSE:AA) which has struggled with poor aluminum prices amid low demand for the metal and rising expenses is growing confident by each day that auto industry will help reserve its troubles of several years. The company has remained in uncomfortable business position due to decline in sales in many of its major markets. But the policy requiring automakers to produce cars that are fuel efficient and which will results in reduced impact on environment, new windows and doors opportunity are fast opening up for Alcoa.
Implementing better fuel rating policy
The company on Thursday announced that it was part of the Think Tank Session to discuss the “whys” of the automobile industry moving towards more aluminum in the vehicle production. Remember, Ford Motor Company (NYSE:F) recently announced that towards the compliance with the so-called CAFE policy that requires production of fuel efficient vehicles, it was adopting 97 percent aluminum for its new F-150 pickup trucks.
The case of Ford signals the first major move by a global automaker to use more aluminum in its cars. Analysts believe that it is just a matter of time before more automakers jump on the bandwagon of aluminum in vehicle bodies. Of the available alternatives to comply with CAFE, using aluminum seems to be the easiest, if not the best, for vehicle manufacturers. It is reports that by adopting aluminum in F-150 for instance, Ford Motor Company (NYSE:F) will be able to trim the weight of the trucks by a significant amount.
More aluminum in cars
Alcoa Inc (NYSE:AA) believes, and rightly so, that it will mean more jobs in its ranks. Already the company has completed a factory construction for which ribbon cutting to celebrate the new project is expected on February 12. The project is in Riverdale where the company announced spending $300 million in expansion. Due to the expansion, more than 350 jobs will stay at the plant.
The expanded facility will cater for the aluminum needs of automakers and Alcoa Inc (NYSE:AA) looks forward to getting more orders as more vehicle manufacturers implement the better fuel rating policy.
