The influence of fuel price on an automaker's decision to lightweight cars via materials substitution

Abstract

The following study examines how the costs and benefits of improving fuel economy of vehicles via lightweighting with aluminum closures change with gas price. A process-based cost model is used to evaluate the costs of lightweighting with aluminum for six representative vehicles, and an industry choice-based conjoint decision analysis market model is used to evaluate the benefits of lightweighting given a 0.5mpg increase in fuel economy. Vehicles were examined by class size. Compact car owners were observed to be willing to pay for improved fuel economy but consumer preferences indicate insufficient willingness to pay to cover the costs of lightweighting with aluminum for a representative compact car, the Toyota Corolla. However, no conclusion can be made as to whether larger car owners are or are not willing to pay for improved fuel economy.