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DuPont Automotive/SAE Survey Says Cost Issues Dominate Automotive Industry

24 February 1998

DuPont Automotive/Society of Automotive Engineers Survey Says ... Cost Issues Dominate Automotive Industry; Innovation Advances

    DETROIT, Feb. 24 -- Cost issues still dominate the automotive
industry, but technology innovations are being sought now more than ever,
according to the fourth annual joint DuPont Automotive/Society of Automotive
Engineers survey of engineers and designers attending the SAE International
Congress & Exposition in Detroit this week.
    Conducted by the Automotive Consulting Group, Ann Arbor, the annual DuPont
Automotive/SAE survey of automakers and suppliers tracks challenges and issues
specific to the global automotive industry.
    "Our survey again points to cost as the greatest challenge facing the
industry, the most sought after quality in a supplier and the greatest
business issue facing automakers and the supplier community," said Erik
Fyrwald, director of Engineering Materials, DuPont Automotive, at an SAE press
briefing today.  "The exciting news is that despite these constraints,
innovation has managed to grow and is expected to flourish."
    According to the survey, nearly 100 percent of respondents said technology
content of vehicles continues to increase.  "The difference now is that we
have innovation with a purpose," added Fyrwald.  "Cost pressures have forced
our industry to examine processes and eliminate redundancies so that the value
of technology is increasingly outpacing its cost."

    Systems integration affects materials specifications
    "We're going beyond reducing waste one component at a time.  Now we're
beginning to examine the ultimate function of a system to develop the best and
most effective way to turn that into a manufacturable and marketable form,"
Fyrwald continued.
    This drive to systems integration is affecting materials specification,
according to nearly half the survey respondents, who noted that complicated
systems demand more stringent engineering standards.  In response to this
trend, DuPont powertrain system engineers are aggressively pursuing the
integration of individual engineering plastic components such as air intake
manifolds and valve covers, into multi-functional modules and integrated
systems that will lower final assembled costs.
    The survey also revealed that 87 percent of engineers and designers said
there is a need for advanced materials, in part because performance demands
are changing so rapidly.  When combined with increasing demands to lower cost,
the need to reduce the cost of manufacturing using advanced materials
represents a unique, but not insurmountable, challenge.  DuPont, for example,
introduced a new microcut manufacturing technology for Vespel(R) seal rings
that improves performance while reducing overall costs.
    "As first-tier part suppliers strive to become 'systems integrators,'
DuPont is focused on being the best materials integrator, with design and
engineering capabilities that allow us to be a catalyst in the development of
conceptual systems," said Fyrwald.
    An example of this materials integration trend is the coordinated role of
DuPont Automotive and DuPont Dow Elastomers in the development of materials
and processes for most of the fuel system components on the new Ford Windstar.
Ford and its suppliers worked closely with DuPont, incorporating five
different DuPont materials into the system to meet new Clean Air Act
hydrocarbon permeation requirements and end-use durability demands.
    DuPont Automotive also was involved in the development of the headlamp
system for Daewoo's new Lanos global vehicle.  Daewoo needed a broad-based
materials supplier with global presence, especially in Poland.  DuPont
funneled its efforts through its local technical-support center to help
Sungsan -- Poland engineer a headlamp bezel with Crastin(R) low-warp, glass-
reinforced PBT.  DuPont also provided  Zytel(R) nylon and Delrin(R) acetal for
reflectors.

    Consumer preference drives materials decisions
    Eighty-two percent of those surveyed said consumer preference ultimately
drives the decision about whether to include a new material or component in a
vehicle design.
    "DuPont recognizes the importance of consumer preference and has developed
an integrated approach to develop technology in fibers, finishes and plastics
for new vehicle interior and exterior colors and aesthetics that will appeal
to future buyers," said Fyrwald.  Deriving its concepts from its business
involvement in fashion apparel and home fabrics, DuPont is in a unique
position to help automotive designers and stylists work throughout the vehicle
exteriors and interiors supply chain to create more consumer excitement and
satisfaction.
    DuPont also is introducing a new developmental plastic this year that will
represent a step-change improvement in high-gloss molded-in-color exterior
body panels and trim.
    "The combination of the DuPont technology offering and our widely
recognized consumer brand can bring optimum value to the automotive OEM," said
Fyrwald.  "Simply put, we think we can help automakers sell more cars."
    With world headquarters in Troy, Mich., DuPont Automotive offers more than
100 product lines to the global automotive industry, including plastics,
advanced composites, finishes, fibers, fabricated products, refrigerants,
specialty chemicals and lubricants.  DuPont worldwide automotive sales were $4
billion in 1997.

SOURCE  DuPont Automotive