Steel to stay top dog in automotive: Nucor

Jan 28, 2014 | 05:52 PM | Thorsten Schier

Tags  Nucor, earnings report, John Ferriola, automotive, cold-rolled, galvanized, Thorsten Schier

NEW YORK — Nucor Corp. expects steel to remain the top dog in the automotive market despite Ford Motor Co.’s move to switch its F-150 pickup truck body to aluminum.

"We still believe that steel long-term will be the material of choice for automotive production," chairman, president and chief executive officer John Ferriola said during the Charlotte, N.C.-based steelmaker’s fourth-quarter earnings conference call Jan. 28.

Obstacles to increased aluminum use include production costs that are two to three times higher than steel, retooling costs for automotive production facilities to switch to aluminum and increased repair and insurance costs for vehicle owners, Ferriola said.

Nucor is continuing its move toward producing higher-value automotive sheet products, focusing on exposed applications, with some of its steel already in use on "cars in production and out on the road today," he said.....

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