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Behind The Wheel

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May.19

11:55 AM ET

Tuesday, 19 May 2009

Lower Emissions Will Mean More Business For These Companies

Posted By:Phil LeBeau

Sectors:Oil and Gas | Technology | Automobiles and Parts

AP
Two words summarize how the auto makers will be able to build cars and trucks that emit 30% less emissions while delivery an average of 35.5 miles per gallon.

1) Lighter

2) Efficient

This is the new mantra in the auto industry as it works towards meeting higher fuel efficiency standards by 2016. The mantra is actually not a new one. When gas prices soared last year, auto execs scrambled to strip out weight from new models while pushing to make those models more efficient.

With the new mandate from Washington, this efficiency movement in the auto industry will pick up momentum, and several companies are positioned to profit.

Borg Warner and Honeywell: These two companies are revving up the charge for turbochargers that will give engines the type of performance Americans want while delivering the fuel efficiency Washington demands.
Green Invests Here | See Complete Coverage

Eaton: This is another auto parts supplier primed to benefit from the push for more fuel efficient engines. Eaton sells camshafts and valve trains that are at the heart of engine efficiency. Yes, for all the talk about hybrids and electric cars, don't forget that most of the improvement in mileage will come from making the good old internal combustion engine more efficient.

Magna International: Building lighter cars means developing lighter parts and body panels for auto makers. Magna leads in this effort with its hydroforming processes, which makes parts that are far lighter than in the past.

Alcoa: The aluminum giant will benefit as auto makers and parts suppliers push for even greater use of lightweight steel and aluminum. Alcoa is at the forefront of helping auto makers develop frames that provide safety and performance while also not making every car a tank.

There are countless other companies, ranging from software developers to electronics manufacturers, who will prosper under the new edict of lighter and more efficient vehicles.

POSITIONED TO PROFIT