Managing Cost, Alternative Fuel Technology Top Concerns In 2003 DuPont/SAE Survey

Recyclability Emerges as Key Priority

DETROIT, March 5 -- Cost still tops the list of challenges facing the automotive industry, according to the ninth annual DuPont Automotive/SAE Survey of automotive engineers attending the SAE World Congress this week in Detroit. Technologies for alternative fuels, emissions regulations come in a close second and third, according to the results.

The importance of recycling doubled in the eyes of respondents, and enhanced safety systems and electronic systems are the most valued consumer technologies.

"Once again, delivering innovation at a price consumers' value is paramount to the industry," said James R. Weigand, vice president of sales and development - DuPont Automotive and Engineering Polymers, Americas. "Managing the total cost of a system or new technology to meet that challenge is key, and the best strategy is through close collaboration starting at the design phase. You can see the results of solid collaborative efforts in terms of sales and genuine customer satisfaction."

Technical challenges surrounding alternative fuels increased 80 percent to being top of mind on 16 percent of attendees, and emissions regulations concern remained constant as a paramount issue among 15 percent of attendees.

Recycling also gained priority. Almost half of the attendees say recycling will be a higher priority over the next five years, up from only 28 percent in 2002.

"These issues speak to our industry's growing move to improve our environmental footprint as we deliver sustainable solutions," said Weigand. "In the past few years, we've made great strides with our partners in the value chain on technologies to help prepare the industry to meet evaporative emission regulations and recycle-content regulations. The challenge for us all is to forge partnerships with clear goals as a means of ensuring these solutions are economically sustainable as well."

Safety a Key Issue with Consumers

Survey respondents believe the majority of consumers rate safety as the top priority in choosing a vehicle. In ranking specific safety technology, smart air bags are expected to get the most attention and resources from automotive OEMs and suppliers. Next highest priority will be vehicle dynamics/stability control technologies, followed by active seatbelts, advanced occupant sensors and drive-by-wire systems that improve vehicle handling.

"Safety is a core value for DuPont. We are deeply committed across all our businesses and product lines to improving vehicle safety," said Craig Naylor, group vice president - DuPont Performance Materials. "Our newly launched DuPont Automotive Safety Systems business harnesses our polymer science, processing and design/technical resources with the industry's most complete material portfolio to help save lives and reduce automotive-related injuries." (For more information see the related press release "DuPont Unveils New Corporate Safety Initiative.")

In addition to improved safety, the survey results show the industry believes consumers are expected to demand greater convenience features, such as telematics and navigation systems. The survey also shows respondents believe consumers are still hungry for more automotive entertainment technologies. As the demand for vehicle electronics increases, respondents see a steady growth in the need for more electrical power, such as 42-volt systems.

"Our comprehensive materials portfolio packaged with the technological capabilities of our Advanced Automotive Electrical and Electronics (AAEE) business will streamline our ability to deliver solutions enabling a range of technologies that improve fuel economy, emissions, safety, comfort and convenience," said James R. Hay, director - DuPont Advanced Automotive Electrical and Electronics venture. "Our materials already benefit key systems that drive Hybrid Electric Vehicles (HEV) and 42-volt vehicles, including Integrated Starter-Alternators (ISA), electric water pumps and energy storage systems."

To further expand its portfolio of materials for AAEE applications, DuPont Engineering Polymers acquired the high-performance crystalline plastics business from Eastman Chemical Co. (For more information see "DuPont Engineering Polymers Acquires an Eastman Plastics Business.") The acquisition includes Eastman's Titan(R) LCP, a liquid crystal polymer; Thermx(R) PCT, a family of polycyclohexylene dimethyl terephthalate products; and Thermx(R) EG series of reinforced PET thermoplastic polyester resins.

The Automotive Consulting Group, Ann Arbor, Mich., conducted the DuPont Automotive/SAE survey of automakers, suppliers planning to attend the 2003 SAE World Congress.

DuPont is a science company. Founded in 1802, DuPont puts science to work by solving problems and creating solutions that make people's lives better, safer and easier. Operating in more than 70 countries, the company offers a wide range of products and services to markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.

Titan(R) and Thermx(R) are registered trademarks of E.I. du Pont de Nemours and Company.

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