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Steel is Material of Choice for Hybrid Electric Vehicles (HEVs)

7 August 2000

Steel is Material of Choice for Hybrid Electric Vehicles (HEVs), Reports American Iron and Steel Institute
                Affordable, Efficient Steel Structures Hasten
                     Breakthrough Vehicles' Availability

      Toyota Prius will Debut This Summer; Ford Escape SUV Due in 2003;
                               Others to Follow

    TRAVERSE CITY, Mich., Aug. 7 As the global automotive
industry launches an all-out effort to increase fuel economy and reduce tail-
pipe emissions by using hybrid gasoline/electric engines, it is relying on a
dependable ally -- the steel industry.  Vehicle manufacturers will use safe,
affordable, fully recyclable steel to build a number of hybrid electric
vehicles (HEVs) that will go on the market over the next several years,
reports American Iron and Steel Institute.
    Ford has announced that beginning in 2003, it will build a high-volume
hybrid electric version of its family-sized vehicle, the Escape, which uses an
all-steel body structure.  General Motors will produce hybrid-powered trucks,
cars and buses, targeting as much as a 20 percent improvement in gas mileage
for the full-sized trucks.  DaimlerChrysler intends to apply hybrid engine
technology to its highly popular Dodge Durango sport utility vehicle to gain
at least 20 percent in fuel efficiency.
    The all-steel unibody, five-passenger hybrid-powered Toyota Prius will
appear in the United States this summer.  Nissan, PSA (Peugeot Citroen) and
Fiat also have concepts using hybrid powertrains in all-steel-bodied vehicles.
    "We commend the auto companies for their vision in selecting steel as the
environmental material of choice for these vehicles," said Darryl Martin,
senior director, Automotive Applications, American Iron and Steel Institute
(AISI).  "As we have been saying and demonstrating with our ULSAB (UltraLight
Steel Auto Body) series of lightweighting initiatives, a reduced-mass,
efficient steel design, coupled with a clean, highly fuel-efficient power
source, such as the hybrid-electric concept, is the quickest, most effective
way to deliver significantly higher mileage vehicles to buyers.  In addition
to its high-performance characteristics, including those related to safety and
recyclability, steel's cost advantages are virtually unassailable."
    The Toyota Prius is a steel structure vehicle, powered by a hybrid
gasoline engine and electric motor.  It boasts 52 highway miles per gallon
(mpg) and 45 mpg city fuel efficiency, according to the U.S. EPA.  During
testing, the Prius showed a 50 percent reduction in carbon dioxide emissions
and 90 percent reduction in carbon dioxide, hydrocarbons and nitrous oxides.
    Honda is making an HEV version of its steel-bodied Civic available to
customers in the United States later this year.  Additionally, Honda says its
2001 line-ups for Japan, Europe and the United States will include hybrid
electric versions of its Accord, which features a steel body structure.  Honda
estimates the VTEC-I engine in its hybrid vehicles is capable of achieving 30
to 50 percent more miles per gallon than traditional gasoline-powered
vehicles.
    Nissan is also entering the HEV market with its Tino.  The steel-bodied
Tino, also derived from an existing vehicle, combines a gas engine with two
electric motors and a lithium ion battery pack.  Nissan has made about 100 of
the HEV Tinos available, only in Japan.
    Ford expects its HEV Escape to achieve about 40 mpg even in stop-and-go
urban driving, while delivering acceleration comparable to the V-6 Escape,
which has an EPA rating of 24 mpg highway and 20 mpg in city driving.  The
Escape features a strong, structurally efficient steel unibody structure that
contributes to its superior fuel economy, driving dynamics and safety.
    John Rintamaki, group vice president and chief of staff, Ford Motor
Company, said recently, "We aren't just waiting for these 'supercars' of
tomorrow.  We are taking what we're learning along the way and applying these
new learnings to today's high-volume cars and trucks.  Ford is committed to
developing high-volume solutions to societal concerns.  We're aiming to
develop no-compromise, high-fuel-economy vehicles with mass appeal and
affordability."
    Neil Ressler, vice president, Research and Vehicle Technology at Ford
said, "We're applying advanced hybrid-electric technology to the heart of the
American market: the highly popular sport utility vehicle.  We'll also sell
this hybrid-electric SUV in Europe, under the Maverick name.  Its nimble
driving characteristics and clean, fuel-efficient operation should make it
especially appealing to customers."
    Vice President Al Gore, on the occasion of a press briefing March 30
associated with the Partnership for a New Generation of Vehicles (PNGV),
endorsed the work of the carmakers, praising the "significant improvements" in
fuel economy that the HEVs will achieve.
    The American Iron and Steel Institute (AISI) is a non-profit association
of North American companies engaged in the iron and steel industry.  The
Institute comprises 47 member companies, including integrated and electric
furnace steelmakers, and 174 associate and affiliate members who are suppliers
to or customers of the steel industry.  For more news about steel and its
applications, view American Iron and Steel Institute's website at
http://www.steel.org .
    The Automotive Applications Committee (AAC) is a subcommittee of the
Market Development Committee of AISI and focuses on advancing the use of steel
in the highly competitive automotive market.  With offices and staff located
in Detroit, cooperation between the automobile and steel industries has been
significant to its success.  This industry cooperation resulted in the
formation of the Auto/Steel Partnership, a consortium of DaimlerChrysler, Ford
and General Motors and the member companies of the AAC.
    This release and other steel-related information are available for viewing
and downloading at American Iron and Steel Institute/Automotive Applications
Committee's website at http://www.autosteel.org .
    Automotive Applications Committee member companies:

    AK Steel Corporation
    Bethlehem Steel Corporation
    Dofasco Inc.
    Ispat Inland, Inc.
    LTV Steel Company
    National Steel Corporation
    Rouge Steel Company
    Stelco Inc.
    US Steel Group, a unit of USX Corporation
    WCI Steel, Inc.
    Weirton Steel Corporation