# Chemistry and Light Vehicles

Economics & Statistics Department

American Chemistry Council

August 201 2

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## Executive Summary

The $142 billion light vehicle industry represents a n important sector of the US economy and a large

end

- use cus tomer market for chemistry. In 2011, the 10.57 million light vehicles assembled in the

United States and Canada required some $ 38.4 billion in chemistry (chemical products and chemical

processing)

, or $3,636 of chemistry in every vehicle

. This is up signif icantly from $2,444 in 2006 and

$1,740 in 2001.

The latest data indicate that the average weight of North American light vehicles continues to rise . The

use of plastics and composites in light vehicles continue s to rise as well, reaching 377 pound s per

v ehicle in 2011. In addition to p lastics and composites, the typical light vehicle also utilizes 2 22 pounds

of rubber and 48 pounds of man

- made fibers. The latter are primarily synthetic fibers. The typical

North American light vehicle also featured 34 poun ds of coatings (dry weight) in 201 1

.

This year’s report on Chemistry and Light Vehicles includes an analysis of the energy savings arising

from the use of chemistry in light vehicles. The products of the business of chemistry (plastic resins,

catalysts, e tc.) to a very large degree help the light vehicle industry and consumers save energy and

ultimately re duce greenhouse gas emissions. Chemistry has played a leading role in improving fuel

efficiency. For example, the aver age fuel efficiency (as measured in miles per gallon, or MPG) for model

2011 vehicles wa s 22 .8 MPG 1 

### . If it weren’t for chemistry

-- in particular, the use of plastics resins and

composites in light

- weighting

– average fuel efficiency would be much lower perhaps as low as only

16.2 MPG.

Th e use of gasoline by light vehicles amounted to 15.62 quadrillion British thermal units (BTUs) , or

15.62 quads in 2011

. The energy savings of 2.26 to 4.40 quads is the equivalent of 1.1

- 2.1 million

barrels of oil per day. In other words, in absence of the benefits of chemistry, energy consumption by

light vehicles would be 14.4%

- 28.2% above their current levels. Most of the energy savings ar o se from

weight reduction and improved fuel efficiency from light

- weighting efforts. Other areas where

chemistry has i mproved f uel efficiency include better performing oil and fuel additives, advanced

catalysis, and greater r olling r esistance through advances in elastomer chemistry among other

applications.

1 Source: Environmental Protection Agency

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## Introduction

This report presents the latest results of an assessment of the chemistry and other materials make

- up

of light vehicles, a major end

- use customer for American chemistry. With 10.57 million light vehicles

assembled in the United States and Canada during 201 1 , this important market represents the

equ ivalent of some $ 38. 4 billion in chemistry. This chemistry value is up from $ 30.7 billio n in 2011

when 9.68 mil lion units were assembled and from the depths of the recession in 2009, when 6.94

million units were assembled and the associated chemistry value was $20.7 billion. C hemistry value

last peaked at $34.8 billion in 2007 (when 13.08 million units were assembled).

This report also features a n assessment of how chemistry plays a role in fostering energy efficiency in

light vehicles. These energy saving s are quantified and presented herein

.



## Chemistry and Light Vehicles

The light vehicle industry represents a large share of the US economy, totaling more than $142 billion

in shipments (at the manufacturer’s level) in 2011 and employing over 630,000 worke rs. The light

vehicle industry continues to be an important customer for most manufacturing industries, including

the chemical industry. This relationship is particularly strong in basic and specialty chemicals because

every light vehicle produced in the U nited States and Canada contains $3, 6 36 of chemistry (chemical

products and chemical processing). T he chemistry value per vehicle has grown considerably. It’s up

14.6 % from $ 3,174 per vehicle in 2011 and has grown 109.0 % since 200 1 when it was $1,7 40 per

v ehi cle. Included in the chemistry value , for ex ample, are antifreeze and other fluids, catalysts, plastic

dash

- boards and other components, rubber tires and hoses, upholstery fibers, coatings and adhesives.

Virtually every component of a light vehicle, fro m the front bumper to the rear tail

- lights features

some chemistry.

Figure 1

Average Value of Direct Chemistry Content of North American Light Vehicles in 2011 ($ /vehicle)

$0 $100 $200 $300 $400 $500 $600

Adhesives & Sealants

Carbon Black

Catalysts

Coatings

Man-Made Fibers

Plastic Resins

Plastic Additives

Plastics Compounding

Rubber Processing Chemicals

Synthetic Fluids & Additives

Synthetic Rubber

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### The average values of direct chemistry content in North American light vehicles in 2011 for a variety of

segments of the business of chemistry are presented in Figure 1 (measured in dolla rs per vehicle) . Only

the direct chemistry value of materials is presented (the chemistry value from processing and other

indirect chemistry is not displayed)

.

Table 1

Average Value of Chemistry Content of North American Light Vehicles ($/vehicle)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Adhesives & Sealants $53 $55 $58 $62 $65 $71 $74 $78 $82 $84 $90

Carbon Black 24 26 27 34 41 50 5 3 74 89 102 107

Catalysts 103 104 108 111 100 128 132 138 140 148 164

Coatings 117 110 104 123 130 131 140 143 163 168 177

Man

- Made Fibers 73 75 78 92 95 98 95 100 103 102 97

Plastic Resins 226 232 248 287 312 335 355 395 381 428 495

Plastic Additives 17 17 17 18 17 18 20 22 21 23 27

Plastics Compounding 36 37 39 40 39 43 48 53 51 57 67

Rubber Processing Chemicals 14 15 15 16 18 21 22 27 28 31 42

Synthetic Fluids & Additives 56 62 67 69 79 99 108 136 135 139 168

Synthetic Rubber 176 169 185 204 235 264 280 336 349 395 530

Materials $896 $901 $947 $1,057 $1,131 $1,260 $1,327 $1,502 $1,541 $1,676 $1,964

Processing/Other Chemistry $844 $813 $886 $945 $1,088 $1,184 $1,336 $1,471 $1,443 $1,498 $1,672

Total Chemistry Content $1,740 $ 1,714 $1,833 $2,002 $2,219 $2,444 $2,663 $2,973 $2,984 $3,174 $3,636



### The direct chemistry value during 201 1 averaged $1, 964 per vehicle, 5 4 % of the total chemistry value

. Details on chemistry used are presented in Table 1. The remaining 4 6 % (or $1,6 72 per vehicle) was

from processing and other indirect chemistry (f or example, glass manufacture uses soda ash and other

processing chemicals )

.



## Materials and Light Vehicles

The light vehicle industry is an important customer for a number of metal and other materials

manufacturing industries. For plastics and composites in particular there is significant competition with

other materials, especially aluminum and steel.

In 201 1 , average vehicle weight increased by 0.3 % (14 pounds) to 4,072 pounds. A verage vehicle

weight has risen for the past two years following two years of declines. In 1990, average vehicle weight

was 3,425 pounds. In 2000, the average vehicle weight was 3,919 pounds. The rising popularity of SUVs

was a contributing factor in risin g vehicle weight during the 1990s and for most of the last decade.

Higher gasoline prices in 2008, however, prompted a reversal of this trend, and in 2009 the average

vehicle weight was at its lowest since 1999. An economic recovery and renewed popularity of larger

vehicles fostered the 2010 and 2011 in crease s in weight.

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### Table 2

Average Materials Content of North American Light Vehicles (pound/vehicle)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Average Weight

(pounds/vehicle) 3,914 3,934 3 ,965 4,041 4,040 4,068 4,097 4,033 3,922 4,058 4,072

Regular Steel 1,652 1,649 1,646 1,650 1,634 1,622 1,644 1,627 1,501 1,542 1,458

High

- & Medium

- Strength

Steel 424 443 460 479 491 502 518 523 524 559 608

Stainless Steel 63 64 65 70 71 73 75 75 69 73 73

Other Steels 28 30 32 34 35 34 34 33 31 33 32

Iron Castings 384 355 336 331 328 331 322 253 206 240 275

Aluminum 279 289 299 311 316 323 319 316 324 344 355

Magnesium 10 9 10 10 10 10 10 11 11 11 12

Copper and Brass 66 69 70 71 71 67 66 64 65 65 67

Lead 37 35 35 37 38 39 41 44 42 41 41

Zinc Castings 11 10 10 10 10 10 9 9 9 9 9

Powder Metal 38 39 41 43 42 42 43 43 41 41 41

Other Metals 4 4 4 5 4 5 5 5 5 5 5

Plastics/Composites 298 307 319 338 334 341 338 347 369 371 377

Rubber 163 168 169 172 1 79 187 188 200 235 228 222

Coatings 26 26 25 28 27 29 29 30 34 34 34

Textiles 45 45 46 51 49 47 46 48 57 56 48

Fluids and Lubricants 208 209 210 210 210 211 215 214 217 219 223

Glass 104 104 105 105 104 105 103 99 93 95 98

Other 75 79 83 86 87 89 92 91 90 92 94

As a Percent of Total Weight 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Regular Steel 42.2% 41.9% 41.5% 40.8% 40.4% 39.9% 40.1% 40.3% 38.3% 38.0% 35.8%

High

- & Medium

- Strength

Steel 10.8% 11.3% 11.6% 11.9% 12.2% 12.3% 12.6% 13.0% 13.4% 13.8% 14.9%

Stainless Steel 1.6% 1.6% 1.6% 1.7% 1.8% 1.8% 1.8% 1.9% 1.8% 1.8% 1.8%

Other Steels 0.7% 0.8% 0.8% 0.8% 0.9% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8%

Iron Castings 9.8% 9.0% 8.5% 8.2% 8.1% 8.1% 7.9% 6.3% 5.3% 5.9% 6.8%

Aluminum 7.1% 7.3% 7.5% 7.7% 7.8% 7.9% 7.8% 7.8% 8.3% 8.5% 8.7%

Magnesium 0.2% 0.2% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%

Copper and Brass 1.7% 1.7% 1.8% 1.8% 1.8% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6%

Lead 0.9% 0.9% 0.9% 0.9% 0.9% 1.0% 1.0% 1 .1% 1.1% 1.0% 1.0%

Zinc Castings 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%

Powder Metal 1.0% 1.0% 1.0% 1.1% 1.0% 1.0% 1.0% 1.1% 1.0% 1.0% 1.0%

Other Metals 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

Plastics/Composites 7.6% 7.8 % 8.0% 8.4% 8.3% 8.4% 8.2% 8.6% 9.4% 9.2% 9.2%

Rubber 4.2% 4.3% 4.3% 4.3% 4.4% 4.6% 4.6% 5.0% 6.0% 5.6% 5.5%

Coatings 0.7% 0.7% 0.6% 0.7% 0.7% 0.7% 0.7% 0.7% 0.9% 0.8% 0.8%

Textiles 1.1% 1.2% 1.2% 1.3% 1.2% 1.2% 1.1% 1.2% 1.5% 1.4% 1.2%

Fluids and Lubr icants 5.3% 5.3% 5.3% 5.2% 5.2% 5.2% 5.2% 5.3% 5.5% 5.4% 5.5%

Glass 2.7% 2.6% 2.6% 2.6% 2.6% 2.6% 2.5% 2.5% 2.4% 2.3% 2.4%

Other 1.9% 2.0% 2.1% 2.1% 2.2% 2.2% 2.2% 2.3% 2.3% 2.3% 2.3%

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### The performance of vehicles has improved significant ly over the years. According to EPA data, for

example, the aver age horsepower (HP) of model 2011 vehicles wa s 22 8 HP, compared to 181 HP in

2000 and 135 HP in 1990. Top speed now averages about 140 miles per hour (MPH) compared to 129

MPH in 2000 and only 117 MPH in 1990.

Regular steel and high

- and medium

- strength steel are the dominant materials in light vehicles.

Combined, this steel accounts for nearly 5 1 % of vehicle weight. High

- and medium

- strength steel have

been gaining share away from regular stee l. Other steel and iron castings have generally lost share.

Combined, all iron and steel accounted for over 60 % of average vehicle weight, down from 65% in

2000 and 70% in 1990.

Over the last several decades, lightweight materials have gained share away f rom iron and steel. For

example, aluminum gained share in 201 1 , rising 3 .2% (or 11 pounds) to 3 55 pounds per vehicle.

Alumin um use represented 8.7% of aver age vehicle weight, up from 6.9% in 2000 and 4.7% in 1990.

Other lightweight materials such as magn esium and plastics and composites have also gained market

share away from iron castings, steel, lead, and other heavier materials. Details on materials used are

presented in Table 2. Additional metals include copper and brass, lead, and zinc, and others in both

powder and solid form. Glass, rubber, coatings, textiles, fluids and lubricants, and other materials

round out the composition of a typical light vehicle.



## Plastics and Light Vehicles

Light vehicles represent an important market for plastic resins an d composites, one that has grown

significantly during the last five decades. The average light vehicle now contains 37 7 pounds of plastics

and composites, 9. 2 % of the total weight. This is up from 286 pounds in 2000 and 194 pounds in 1990.

In 1960, less th an 20 pounds were used.

Composites are any combination of polymer matrix and fibrous reinforcement. Glass, carbon, aramid,

and other fibers provide strength and stiffness while the polymer matrix (or resin) of polyester,

polyurethane, epoxy, polypropylen e, nylon, or other resin protects and transfers loads between fibers.

This creates a material with attributes superior to polymer or fiber alone.

Figure 2

Long

- Term Trends in Light Vehicle Plastics/Composites Use (pounds/vehicle)

0 100 200 300 400

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

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### P lastic resins and co mposites have been essential to a wide range of safety and performance

breakthroughs in today’s ca rs, minivans, pickups and SUVs. Today’s plastics typically make up 50 % of

the volume of a new light vehicle but less than 10% of its weight, which helps make cars lighter and

more fuel efficient, resulting in lower greenhouse gas emissions. Tough, modern plastics also help

improve passenger safety and auto motive designers rely on the versatility of plastics when designing

today’s vehicles

.

 Automotive Body Ext erior

- Plastics and composites have revolutionized the design of body

exteriors. From bumpers to door panels, light weight plastic provides vehicles with better gas

mileage and allows designers and engineers the freedom to create innovative concepts that

otherwise would be im possible. In the past , metals were synonymous with auto body exterior

design and manufacturing . H owever, they are susceptible to dents, dings, stone chips and

corrosion. They are also heavier and more expensive than plastics. Specifyin g plastics and

composites for automotive body exterior panels and parts allows manufacturers to adopt

modular assembly practices, lower production costs, improve energy management, achieve

better dent resistance, and use advanced styling techniques for sle eker, more aerodynamic

exteriors.

 Automotive Interior

- The elements of automotive interior design

-- comfort, noise level,

aesthetic appeal, ergonomic layout, and durability

-- have a great effect on a consumer's

purchasing decision. Plastic auto motive i nterior parts address all of these aspects, and more, in

a remarkably effective and efficient manner.

 Automotive Safety

- The versatility of plastics allow s design options that reduce vehicle weight

while p roduc ing safer vehicles. Included are composite d rive shafts that increase torque and

help prevent injuries, plastic composite structures in the front end of a vehicle that reduce

vehicle weight without compromising safety, and plastic components in crumple zones that

help absorb energy while lowering ve hicle weight . Plastics are also used in door modules

maintain or improve side impact safety, plastic layers in automotive safety glass p revent

passenger injuries, and plastic foams can add strength to automotive body cavities and increase

occupant safety i n vehicles.

 Automotive Electrical Systems

– Over t he last 20 years, the electrical systems of l ight vehicle s

have undergone a major revolution. Automotive electrical and electronic system components

are now more numerous and important with computer chips regulating and monitoring ABS

brakes, fuel injection, and oxygen sensors, GPS navigation equipment, obstacle sensors, state

of

- the

- art audio systems, and other systems

. Plastics make possible the inclusion, operation,

interconnection and housing of sockets , switches, connectors, circuit boards, wiring and cable,

and other electrical and electronic devices.

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###  Automotive Chassis

- A chassis is the supporting frame of a light vehicle. It gives the vehicle

strength and rigidity, and helps increase crash

- resista nce through energy absorption. The

chassis is especially important in ensuring low levels of noise, vibration and harshness (NVH)

throughout the vehicle. Not only does a reduction in NVH allow for a more pleasant driving

experience, but by putting less str ess on connecting components it can help increase the life

span of these components. The key determinant permitting reduced levels of NVH is energy

absorption . As a result , passenger protection can be enhanced in the event of a collision.

Plastics are maki ng inroads into the chassis market. Innovations in plastic technology have

brought about the development of successful chassis applications and structure, support and

suspension performance that would not be possible using any other family of materials.

 A utomotive Powertrains

- The powertrain is one of a light vehicle’s most complicated parts.

The term "powertrain" refers to the system of bearings, shafts, and gears that transmit the

engine's power to the axle. Plastics help reduce the number of parts need ed to assemble these

complex components. Plastics also help reduce vehicle weight, which helps lower assembly

costs while increasing fuel efficiency.

 Automotive Fuel Systems

- For automotive fuel system components, plastics have several

advantages that e nable it to outperform metals. Plastic frees engineers from the design

constraints that metal imposes. Plastic's light weight makes vehicles more fuel

- efficient and

from a safety standpoint, rupture

- resistant plastics with high impact strength are helping keep

automotive fuel tanks and related delivery systems leak

- proof, corrosion

- resistant, and reliable.

 Automotive Engine Components

- Many of today's automotive engine components are plastic.

From air

- intake manifolds and systems to cooling systems to va lve covers and other engine

parts, plastic helps make engine systems easier to design, easier to assemble, and lighter in

weight. Plastics' versatility has revolutionized automotive engine component design.

The automotive market is an important market fo r plastic resins such as polypropylene, polyurethane,

nylon, other engineering polymers, and thermoplastic polyesters. Light vehicle applications account for

over 30% of the demand for each resin. Other resins include ABS and polyvinyl butyral. For the lat ter

resin which is used in safety glass, the automotive market accounts for over 85% of total demand.

Engineering polymers such as nylon, polycarbonate and others are supplanting metals in many

applications. Typical plastics and composite applications incl ude exterior panels, trim, and bumper

fascia, as well as interior trim panels, window encapsulation, headlamp housings, manifolds and valve

covers, electronic/electric parts and components, wiring harnesses, steering wheels, insulation,

dampening and deade ners, upholstery, mechanical parts and components, safety glass, and myriad

other uses.

A verage plastics and composites per vehicle use rose six pounds ( 1.6 %) to 37 7 pounds in 201 1

, and

plastics and composites maintained its share of the total vehicle wei ght. Over 15 major resins find

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### significant use in light vehicles. Details on resin use are presented in Tables 3 and 4

. Major polymers

used in light vehicles include 9 0 pounds of polypropylene (PP), 5 8 pounds of polyurethanes, 4 6 pounds

of nylon, 3 0 pounds of polyvinyl chloride (PVC), 24 pounds of acrylonitrile

- butadiene

- styrene (ABS), 20

pounds of polycarbonate resins and 18 pounds of polyethylene resins. Among the resins gaining share

during 201 1 were polypropylene, nylon, polycarbonate resins , and other engineering resins

.

Figure 3

Average Plastics/Composites Use in Light Vehicles in 2011 (pounds/vehicle)

0 10 20 30 40 50 60 70 80 90 100

Polypropylene

Polyurethanes



### Nylon

Polyvinyl Chloride

ABS

Polyethylenes

Polycarbonate

Other Engineering Resins

Polyvinyl Butyral

Other

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### Table 3

Average Large Volume Plastics Content o f North American Light Vehicles (pounds per vehicle)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 1

Total Plastic/Composites

(pounds/vehicle) 298 307 319 338 334 341 338 347 369 371 377

Polypropylene 66 72 78 79 77 81 80 79 83 88 90

Polyurethanes 58 57 60 64 64 59 56 57 59 58 58

Nylon 37 38 39 43 42 41 42 42 44 44 46

Polyvinyl Chloride 23 23 23 25 23 27 28 29 30 31 30

ABS 22 26 25 26 25 23 22 24 28 24 24

Polyethylenes 13 12 12 14 13 14 15 17 19 18 18

Polycarbonate 12 11 12 14 14 15 15 18 19 21 20

Other Engineering Resins 33 33 36 38 38 42 42 42 45 46 48

Polyvinyl Butyral 6 6 6 7 7 7 7 7 7 7 7

Other 29 27 28 30 31 31 30 33 34 34 35

Total Plastic/Composites

(pounds/vehicle) 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Polypropylene 22.1% 23.6% 24.4% 23.3% 23.1% 23.9% 23.7% 22.7% 22.5% 23.8% 23.9%

Polyurethanes 19.3% 18.6% 18.7% 18.9% 19.1% 17.3% 16.7% 16.3% 16.0% 15.7% 15.4%

Nylon 12.4% 12.5% 12.3% 12.7% 12.7% 12.1% 12.4% 12.1% 11.9% 12.0% 12.2%

Polyvinyl Chloride 7.9% 7.6% 7.2% 7.3% 7.0% 8.1% 8.2% 8.3% 8.0% 8.3% 7.9%

ABS 7.4% 8.6% 7.9% 7 .8% 7.6% 6.9% 6.5% 6.8% 7.6% 6.4% 6.4%

Polyethylenes 4.4% 4.0% 3.7% 4.0% 3.8% 4.0% 4.4% 4.9% 5.0% 4.8% 4.8%

Polycarbonate 3.9% 3.7% 3.9% 4.1% 4.3% 4.3% 4.5% 5.2% 5.3% 5.6% 5.4%

Other Engineering Resins 10.9% 10.7% 11.2% 11.2% 11.3% 12.2% 12.3% 12.1% 12. 3% 12.5% 12.8%

Polyvinyl Butyral 2.1% 1.9% 1.9% 1.9% 2.0% 2.1% 2.2% 2.2% 2.0% 1.9% 1.9%

Other 9.8% 8.9% 8.7% 8.8% 9.1% 9.2% 9.0% 9.4% 9.3% 9.1% 9.3%

Note: Polypropylene is also used in thermoplastics polyolefin elastomers (TPO) as well but its use in that area is reported

separately under rubbe r in Table 2

.



### Over the last two decades, other engineering resins such as polyacetal, polyphenylene ether (PPE), and

thermoplastic poly ester engineering resins have supplanted metals in a number of applications.

Average use of these resins reached 48 pounds in 201 1 , up from 31 pounds in 2000 and 19 pounds in

1990. Polycarbonate and nylon are also classified as engineering resins (as are some ABS grades) and if

polycarbonate and nylon resins were incl uded, total engineering resin consumption would be 114

pounds. An average of seven pounds are polyvinyl butyral are used. Additional resins such as acrylics,

phenolics, unsaturated polyester, and others account for the remaining 3 5 pounds.

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### Table 4

Avera ge Engineering & Other Plastics Content of North American Light Vehicles (pounds per vehicle)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 1

Other Engineering Resins 33 33 36 38 38 42 42 42 45 46 48

Polyacetal 6 6 5 6 6 6 6 7 7 7 8

Polyphe nylene Ether (PPE) 10 10 10 10 11 13 13 14 12 13 14

Thermoplastic Polyester

Engineering Resins 15 16 19 20 19 20 20 19 23 23 24

All Other Engineering Resins 1 1 2 2 2 2 2 3 3 3 3

Total Plastic/Composites

(pounds/vehicle) 29 27 28 30 31 31 30 33 34 34 35

Acrylics 4 4 5 5 5 5 5 5 5 4 4

Phenolics 10 9 9 9 9 10 10 11 11 13 13

Unsaturated Polyester 13 12 11 13 14 14 13 13 15 13 13

All Other Resins 2 2 2 3 3 3 3 4 5 4 4



### Additional opportunities to reduce weig ht with plastics and composites are possible. These include: 1)

reducing the weight of existing plastic and composite parts with the use of low density additives,

nanoparticles, and alternate fibers; and 2) converting more metal parts to plastics and compo sites. As a

result, the light vehicle market presents significant opportunities for further diffusion of plastics and

composites in the future.



## Other Chemical Products and Light Vehicles

A variety of other products of chemistry are used in the manufacture of light vehicles. Most chemistry

is used in processing and other indirect chemistry (e.g., soda ash in glass manufacture ) but also over

300 pounds of rubber, textiles and coatings are used as well.

T he typical light vehicle utilizes 2 22 pounds of rubbe r, mainly in tires but also in non

- tire applications

such as belts and hoses, and other components. Natural rubber is used but by far the most widely used

rubber is s tyrene

- b utadiene r ubber (SBR) which is used in tire and a variety of non

- tire applications

.

C ommon uses include radiator and heater hoses, various b ody and chassis parts, bumpers, weather

s trip ping , door and window seals, mats, grommets, tubes, fan belts and various molded and extruded

goods

. Thermoplastic p olyolefin e lastomers (TPO) are anothe r widely used elastomer. Applications

include a wide variety of exterior, interior and under

- the

- hood and chassis applications. Combined,

natural rubber, SBR and TPO elastomers account for three

- fourths of overall rubber consumption.

Other elastomers inclu de b utyl rubber, c hlorinated polyethylene, c hlorosulfonated p olyethylene

,

c opolyester

- ether, e thylene

- propylene, nitrile, polybutadiene, polychloroprene (neoprene),

polyisopree, polyurethane, silicone, styrenic thermoplastics and other elastomers.

T he ty pical light vehicle utilizes 48 pounds of man

- made fibers , primarily synthetic fibers. Very few

natural fibers are used and rayon and melamine fiber use has largely disappeared. Most notable

synthetic fibers are traditional woven fibers of nylon and polyes ter but also non

- woven fabrics of

polypropylene and polyester used in various facings, backings, liners, acoustic p anels, reinforcements

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### and panels, and automotive filters. In recent years, traditional textiles are being supplanted by

polyurethanes.

The typical North American light vehicle also featured 34 pounds of coatings (dry weight) in 201 1

. In

automotive applications, coatings enhance value by making the vehicle attractive and protecting it.

Without coatings, vehicles would quickly rust, be dull in appearance, and ha ve a very short service life.

Light vehicle applications include topcoats, primers and coatings for underbody components and

include solvent

- borne, water

- borne and powder coatings. Powder coatings are based mainly on epo xy

and polyester r esins, which upon heating react with curing agents to form very durable coating s that

emit virtually zero VOCs (volatile organic compounds). These have gained in use relative to traditional

solvent

- borne coatings in recent decades. Coatings use has decline d in recent years because of

reduced waste generation during application, thinner coatings, and the switch to higher solids

coatings

.

In addition to these materials, chemistry also plays a role in the 223 pounds of fluids and lubricants

that a typical lig ht vehicle contains. These include engine oil lubricants, transmissions fluids, windshield

wiper fluids, refrigerants for air conditioners, and other products. All of these contain chemical

additives to enhance performance while others such as fluorocarbon refrigerants are products of

chemistry. In engine oil lubricants, synthetic lubricants are gaining market share away from traditional

petroleum products.



## Energy Savings, Chemistry and Light Vehicles

The products of the business of chemistry (plastic res ins, catalysts, etc.) to a very large degree help the

light vehicle industry and consumers save energy and ultimately re duce greenhouse gas emissions.

Chemistry has played a leading role in improving fuel efficiency. According to the EPA, for example, the

aver age fuel efficiency (as measured in miles per gallon, or MPG) for model 2011 vehicles wa s 22 .8

MPG , compared to 19.8 MPG in 2000 and 21.2 MPG in 1990. R ising popularity of SUVs and light

- duty

trucks was one factor behind this declining average fuel eff iciency. However , if it weren’t for chemistry

-- in particular, the use of plastics resins/composites in light

- weighting

– average fuel efficiency would

be much lower . Fuel efficiency in the absence of chemistry could be as low as 16.2 MPG.

According to the latest EIA Annual Energy Outlook , the use of gasoline by light vehicles amounted to

15. 62 quadrillion British thermal units (BTUs) , or 15. 6 2 quads in 2011. The use of chemistry products in

various energy

- saving applications in light vehicles save d betw een 2. 26

- 4. 40 quads of energy in 2011

. Most of these saving s arise from weight reduction and improved fuel effi ci ency from light

- weighting

efforts. Other areas improving fuel efficiency include better performing oil and fuel additives, advanced

catalysis, and greater r olling r esistance through advances in elastomer chemistry among other

applications. In other words, without the benefits of chemistry, energy consumption by light vehicles

would be 14.4% to 28.2% above current levels. The energy savings of 2.2 6

- 4.40 quads is the equivalent

of 1.1 million to 2.1 million barrels of oil per day.

### 12 | P a g e



### Table 5

2011 Energy Savings from Chemistry by Area of Applications

Fuel Use

(trillion BTUs) MPG

Equivalent

Low High Low High

Pl astics Light

- Weighting 1, 494 2,611 3.0 3.9

Fuel Additives 264 310 0.4 0.5

Oil Additives 303 885 0.4 1.3

Improved Catalytic Converters 109 435 0.2 0.6

Lower Roll Resistance & Other

Rubber Technolog y 40 96 0.1 0.1

Other 49 61 0.1 0.1

Total 2, 258 4, 39 8 3.3 6.6



### Light

- Weigh t ing

- The use of plastics and composites in light vehicles has been rising steadily for nearly

40 years. Polymers n ot only reduce costs and allow for more appealing and function design, they also

foster significant weight reduction. The favorable performance properties of plastics and composites

are manifold, but weight

- savings is primary among these.

Each pound of p lastics and composites, for example, supplants 2

- 3 pounds of other, heavier materials.

As a result, polymers help to reduce vehicle weight, thus improving fuel efficiency and reducing

greenhouse gas (GHG) emissions. The light vehicle market presents signif icant opportunities for further

diffusion of polymers in the future

.

Substantial weight reduction is possible as composites are typically up to 40% lighter than steel parts of

equal strength. In addition to light

- weighting to improve fuel efficiency and r educe emissions, plastics

and composites also enhance design flexibility, allow exceptional aerodynamic modeling, enhance

safety, provide unparalleled corrosion and damage (dent and ding) resistance, enable better internal

damping (reduced noise, vibration and harshness), and consolidate parts and assembly time. In

addition, tooling for composites parts can be as much as 80% lower than comparable steel parts. There

are more than 30 different applications in light vehicles in which plastics and composites pr ovide

weight reduction and reduced fuel consumption. These applications can be aggregated into four main

categories:

1. Chassis

2. Under

- the

- hood

3. Body

4. Interior

For each of these applications, the average weight savings and energy sav ings were aggregated and

th is was c ompared to savings via competing materials. Taken together, the automotive weight

reduction through the use of plastics and composites in light

- weighting resulted in energy savings on

the order of 1.49

- 2.61 quads ( the equivalent of 3.0

- 3.9 MPG )

. Hi gh

- density polyethylene (HDPE),

polypropylene, polyamide, and polyetheretherketone (PEEK) resins , for example, are supplanting steel

and aluminum in a number of applications, polycarbonate is supplanting glass, and polyurethane is

### 13 | P a g e



### supplanting textiles. Ano ther example is found with traditional aluminum air intake manifolds that are

gradually being replaced by polyamide resins. The latter at 3.3 pounds provides weight savings of 50%.

Moreover, their resistance to oils and greases has led to the use of polyam ides in engine covers, gears

and bearings.

Fuel Additives

- Gasoline additives increase gasoline's octane rating or act as corrosion inhibitors or

lubricants, thus allowing the use of higher compression ratios for greater fuel efficiency and power

. Types of additives include metal deactivators, corrosion inhibitors, oxygenates and antioxidants.

Gasoline combustion results in the formation of engine deposits in fuel injectors and on intake valves,

which typically results in reduced engine performance (and increased emissions). Detergent,

dispersants and full

- deposit

- control additives help clean and prevent engine deposits, thus boosting

fuel efficiency. Gasoline deterg ent additives have been used by gasoline marketers s ince the 1960’s to

help control engine deposits but in recent decades they have evolved into full

- deposit

- control

detergent additives . The EPA requires that all gasoli ne sold to consumers contain a minimum level of

detergent additive. I n a similar manner, diesel fuel additives reduce fuel cons umption (and emissions)

over the life time of a vehicle. Fuel additives resulted in energy savings on the order of 264

- 310 trill ion

BTUs; the equivalent of 0.4

- 0.5 MPG in 2011

.

Improved Oil Additives

- Oil additives are used with base oil to enhance lubri cation in automotive

engines. These help to reduce friction, wear, corrosion and oxidation, all of which may contribute to

compression problems. Improving engine oil additives allow s greater fuel efficiency in light vehicles.

These also support additional engine power. G as mileage can be significantly improved by using more

advanced motor oil s . This incl udes regular oil with additives or synthetic motor oil, which is created in

the research and development lab and not from petroleum

- based crude oil. Synthet ic oils are

specifically designed to reduce friction. While more expensive than organic petroleum

- based oil, they

last a lot longer , and thus the change interval for synthetic oil is longer than the change interval for

petroleum

- based oil. Overall, the use of advanced oil additives and synthetic motor oils in gasoline

engines improves fuel mileage by 2 % to 6 %. In diesel engines, fuel savings of 5 % to 18% are possible

with fuel additives and catalysts. In addition to significant fuel savings, emissions reduc tions and

prolonged engine life are achieved. The advances in oil additives resulted in energy savings on the

order of 303

- 885 trillion BTUs; the equivalent of 0.4 to 1.3 MPG in 2011

.

Catalysis

- A catalytic converter is a vehicle emissions control device that converts toxic by

- products of

combustion in the exhaust of an internal combustion engine to less toxic substances by way of

cataly z ed chemical reactions. Most modern catalytic converters contain two distinct catalysts: the

reduction catalyst and the oxidation catalyst. First introduced in the 1975 model year, the diffusion of

lea n

- burn engines with "three

- way" converters in the 1980s r esulted in improved efficiency. These

three

- way units rely on advanced catalyst chemistry that stores and releases oxy gen on a single

substrate

. Catalysts used in catalytic converters are precious metals such as platinum, palladium, and

rhodium coated on the surface of ceramic honeycomb structures. Improved thermal and conversion

efficiency and durability occur while redu cing the size and weight of converters. These ad v ances in

catalysts resulted in energy savings on the order of 109

- 435 trillion BTUs; the equivalent of 0.2 to 0.6

MPG in 2011

.

### 14 | P a g e



### Rolling Resistance & Elastomer Chemistry

– Styrene

- butadiene rubber (SBR) is t he most widely used

rubber in tires . C ompared to natural rubber , SBR improves automotive fuel efficiency, extends the life

of the tire ( product life ) , and de crease s scrapping of tires

. SBR also enhances p erformance (cornering,

speed, stopping, etc.)

. Other synthetic elastomer compounds provide similar performance attributes

including energy savings. In tires, rolling r esistance is a factor in fuel efficiency. This is the amount of

force needed to keep tires moving at a constant speed. The greater the fo rce needed; the higher fuel

consumption. The U

. S

. D epartment of Energy estimate s that 5%

- 15% of fuel consumption is used to

overcome rolling resistance for light vehicles

. Some kinds of fuel efficient tires are engineered to utilize

lower rolling resistance an d reduce the strain on the engine. The concept behind low rolling resistance

tires is that they require less energy . Although design plays the largest role

, chemistry also plays an

important role. I n particular

, the use of silica and more highly activated carbon blacks in combination

with blends of solution polymerized SBR and natural rubber have fostered low rolling resistance. An

analysis by the National Renewable Energy Laboratory indicates the sensitivity coefficient (percent

increase in fuel economy pe r percent decrease in rolling resistance) to be as high as 0.2 for a

conventional vehicle. A Green Seal report, Low Rolling Resistance Tires

, indicates that a 1.5%

- 4.5%

savings is possible for high rolling resistance tires. Most r oll resistance tires offer 10% improvements (in

some cases 20%) in roll resistance if proper maintenance is achieved. This isn’t always possible and the

diffusion of the technology is only modest. In addition, tire design plays a dominant role. Nonetheless,

the energy savings from low resistance tires and from more advanced elastomer technology (including

rubber additives) suggests that energy savings from chemistry resulted in energy savings on the order

of 40

- 96 trillion BTUs; the equivalent of 0. 1 MPG in 2011

.

Other

- While the products of chemistry improve energy efficiency in other areas, the extent is difficult

to quantify. The use of plastics and composites, for example, may provide more aerodynamic designs.

New automotive OEM coatings may feature improved drag resistance an d thus energy savings. Other

fluids such as brake fluids and automatic transmission fluids and the use of non

- woven fabrics may also

enhance energy efficiency. Advances in chemistry are also aiding battery technology, not only in

lithium and other advanced batteries but also in lead acid batteries. Finally, silicon and other chemistry

are making possible the use of sensors, advanced displays, and other innovative electronics which can

contribute to energy efficiencies as well. All together, the energy savin gs from these applications for

chemistry resulted in savings on the order of 49

- 61 trillion BTUs; the equivalent of 0.1 MPG in 2011

.

T he difficulty in quantifying energy savings is especially the case in examining the energy savings over

the life cycle of a product. For example, it is catalysis that engenders modern oil refining and

concomitant increase in yields. That is, the portion of every barrel of oil that can be processed into

product. Fluid catalytic cracking allows high conversion. In addition, wo rk

- over and completion fluids,

cementing and other stimulation chemicals, and other oilfield chemicals provide for greater recov ery

of oil in mature oilfields. Other energy efficiency

- enhancing technologies such as bio

- fuels, advanced

batteries, hydrogen a nd fuel cells all rely upon chemistry. These energy savings are outside the scope

of this analysis and aren’t included.

### 15 | P a g e 

## S ummary

The $142 billion light vehicle industry represents an important sector of the US economy and a large

end

- use customer ma rket for chemistry. In 2011, the 10.57 million light vehicles assembled in the

United States and Canada required $38.4 billion in chemistry (chemical products and chemical

processing), or $3,636 of chemistry in every vehicle

. This is up significantly from $2,444 in 2006 and

$1,740 in 2001.

The latest data indicate that the average weight of North American light vehicles continues to rise. The

use of plastics and composites in light vehicles continues to rise as well, reaching 377 pounds per

vehicle in 20 11. In addition to p lastics and composites, the typical light vehicle also utilizes 2 22 pounds

of rubber and 48 pounds of man

- made fibers. The latter are primarily synthetic fibers. The typical

North American light vehicle also featured 34 pounds of coatin gs (dry weight) in 201 1

.

The products of the business of chemistry (plastic resins, catalysts, etc.) to a very large degree help the

light vehicle industry and consumers save energy and ultimately re duce greenhouse gas emissions.

Chemistry has played a le ading role in improving fuel efficiency. For example, the aver age fuel

efficiency (as measured in miles per gallon, or MPG) for model 2011 vehicles wa s 22 .8 MPG 2 

### . If it

weren’t for chemistry

-- in particular, the use of plastics resins and composites in li ght

- weighting

– average fuel efficiency would be much lower perhaps as low as only 16.2 MPG.

The use of gasoline by light vehicles amounted to 15.62 quadrillion British thermal units (BTUs) , or

15.62 quads in 2011. The energy savings of 2.26 to 4.40 quad s is the equivalent of 1.1

- 2.1 million

barrels of oil per day. In other words, in absence of the benefits of chemistry, energy consumption by

light vehicles would be 14.4%

- 28.2% above their current levels. Most of the energy savings arose from

weight reduc tion and improved fuel efficiency from light

- weighting efforts. Other areas where

chemistry has improved fuel efficiency include better performing oil and fuel additives, advanced

catalysis, and greater r olling r esistance through advances in elastomer chem istry among other

applications.

2 Source: Environmental Protection Agency

### 16 | P a g e 

## Economics and Statistics Department

The Economics & Statistics Department provides a full range of statistical and economic advice and

services for ACC and its members and other partners. The group works to improve overa ll ACC

advocacy impact by providing statistics on American Chemistry as well as preparing information about

the economic value and contributions of American Chemistry to our economy and society. They

function as an in

- house consultant, providing survey, ec onomic analysis and other statistical expertise,

as well as monitoring business conditions and changing industry dynamics. The group also offers

extensive industry knowledge, a network of leading academic organizations and think tanks, and a

dedication to making analysis relevant and comprehensible to a wide audience.

Dr. Thomas Kevin Swift

Chief Economist and Managing Director

202.249.6180

kevin_swift@americanchemistry.com

Martha Gilchr ist Moore

Senior Director

– Policy Analysis and Economics

202.249.6182

martha_moore@americanchemistry.com

Dr. Smita Bhatia

Director, Chemistry and Industry Dynamics

202.249.6184

smita_bhatia@americanchemistry.com

Emily Sanchez

Director, Surveys & Statistics and Editor

202.249.6183

emily_sanchez@americanchemistry.com

### 17 | P a g e 

## Appendix : Data Sources and Methodology

The information presented in this report is an update building on ACC’s earlier assessments of

materials use per vehicle. Those previous assessments depended upon the materials use per vehicle

data supplied by American Me tal Market with some adjustments for non

- automobile light vehicles

(SUVs, light

- duty trucks, min i

- vans, etc.) The reporter who tabulated this data, however, has retired

and the data are no longer available. The assessment presented here reflects an attempt to resurrect

and re

- estimate the data for materials use per vehicle. While the original data reflected typical

domestic automobile use of materials, the present assessment reflects the average for all light vehicles

on an OEM (original equipment manufactu rer) basis.

A “bottoms

- up” approach was taken by examining light vehicle use by type of material. The data for

the materials use were provided by trade associations and government statistical agencies. Data

sources include The Aluminum Association, Ameri can Composite Manufacturers Association, American

Fiber Manufacturers Association, American Iron & Steel Institute, Copper Development Association,

International Magnesium Association, and the Rubber Manufacturers Association. The provision of

data and adv ice from these associations are gratefully acknowledged. Data from the Bureau of the

Census and the US Geological Survey were also used.

The plastics and composite data are derived from the American Chemistry Council’s Plastics Industry

Producers’ Statist ics (PIPS) service, which provides relevant, timely, comprehensive and accurate

business statistics on the plastic resins industry. This was supplemented by an exhaustive search of the

trade literature. The averages are calculated using an assessment of th e material consumed with

adjustments made to take into account replacement demand. The sum of the individual materials data

are close to the comparable average vehicle data provided by the Environmental Protection Agency

(EPA) and the Office of Energy Effi ciency and Renewable Energy (EERE) of the US Department of Energy

(DOE).

This 2012 edition of the report has been expanded to include an assessm ent of how (and to what

extent) chemistry plays a role in fostering energy efficiency in light vehicles. The analysis was based on

previous econometric analysis, technical information and estimates, and analysis conducted by

McKinsey & Company

.

Using econometrics, ACC has analyzed the relationship between fuel efficiency relative to vehicle

weight, horsepo wer, and other performance metrics. Using historical data on materials composition,

the results of the ACC anal ysis indicates that for each 10 pound increase in plastics subs titution for

other materials, a vehicle’s fuel efficiency improves by 0.11% to 0.1 4%.

A literature search of energy savings was conducted. The various applications in which chemistry plays

a role in improving energy efficiency were identified. These included oil and fuel additives, catalysis,

r olling r esistance and e lastomer chemistry , and other areas in which chemistry improved miles per

gallons. A search of the technical (scientific and engineering) literature provided various estimates of

the energy savings. In 2009, on behalf of the International Council of Chemical Associations (I CCA),

McKinsey & Company developed estimates of the global greenhouse gas savings attributable to use of

chemistry products. These included applications in lighting, household operations, and light vehicles

among others. This study by McKinsey and Company fou nd that the use of plastics and composites for

automotive we ight reduction enable a savings of three units of GHG emission s for every unit emitted

### 18 | P a g e



### during production. Since the data in the I C CA study reflected global coverage, we used US values

where avai lable or made adjustments to reflect US conditions in each of the various cases, or end

- uses.

The larger size of a typical American light vehicle is larger (and feature a larger plastics and chemistry

component) in the United States than in Europe and Japa n. As a result, light vehicles will figure more

prominently among end

- use markets for chemistry in the United States. On the other hand, existing

relative weight

- (and energy

- ) savings in Europe and Japan may be more extensive in this end

- use,

somewhat off setting the greater prominence in the United States. Using a variety of sources, a range

of estimates (low and high) is provided.

Every effort has been made in the preparation of this publication to provide the best available

information. However, neithe r the American Chemistry Council, nor any of its employees, agents or

other assigns makes any warranty, ex pressed or implied, or assumes any liability or responsibility for

any use, or the results of such use, of any information or data disclosed in this material.