Tinfoil Cars: the Alcoa Dream

Regulatory costs, folks.

Alcoa is seeing rising demand from automakers, who are increasingly compelled by regulation to make lighter vehicles….

The average amount of the metal in each vehicle will rise 3 percent, he said in a June 26 note. Heavy-truck producers will buy 19 percent more aluminum and plane makers an extra 20 percent, he said.  -Carney quoting Bloomberg

Note well:  steel is MUCH less expensive than aluminum.

Carney's question:

Does it surprise you that Alcoa supported the fuel-economy regulations?

What a shock.