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Steel vs. Aluminum: Cost Comparison

The figure below shows common metallurgical grades undergoing a pre-strain of 2% and typical automotive paint bake cycle on the left compared to their prospective cost index shown on the right.  Pricing for steel grades is based on seven combined typical market sources and the ULSAB-AVC cost model.  Aluminum pricing was gathered based on 2002 publications from the MIT Material Systems Lab and typical market information, such as the American Metal Market (2002-2003).

Also regarding material cost related to vehicle production, according to Joe Clark from the Massachusetts Institute of Technology, cited from the January 1997 issue of MIT Technology Review:

Material costs

  Steel Unibody Aluminum Space Frame  Aluminum
Unibody
Low production 
(less than 20,000/yr.)
$5,800 $4,500 $7,200
Medium Volume
(approximately 100,000)
$2,500 $2,800 $3,600
Volume of 300,000
(common to most platforms in North America)
$1,400 $2,400 $2,000
Higher Volumes
(300,000 to 1,500,000/yr.)
Steel becomes even more cost effective when compared to the space frame aluminum and unibody concepts!
  • The costs are driven by:  process cycle times, equipment utilization, capital investment, and raw material cost only ($.35/lb. for steel vs. $1.50/lb. for aluminum).

  • If all the other factors such as recyclability, scrap due to less formability of aluminum, the superior weldability of steel, the cost advantages for steel would be shown even greater.

In relation to the overall vehicle assembly process, MIT has also undertaken numerous studies on the subject of cost assessment.  Shown below is their results from a study comparing the all aluminum Audi A2 to both a VW Lupo and a Hybrid Lupo.

Graph - Material Cost and Body In White Assembly Cost Comparison

These two graphs represent both the materials cost differential between the VW Lupo (steel), Lupo (Hybrid - Mg liftgate/SMC skin panels), and the all aluminum Audi A2.  As shown, both for the raw material cost and assembly costs, steel at all volumes, is much more cost effective (over $1000/vehicle less).

 

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