Jason Sandefur

By 2010, automakers expect to sell an annual 61 million cars worldwide, a six percent increase from 2000.
According to Ferdinand Kersten of Belgium-based Nedschroef Herentals N.V., much of that growth will occur in Europe.
Given the current state of global auto production � U.S. production is down 3.4% in 2003 and Europe has slipped 5% � that sounds like good news for fastener suppliers to the auto industry. But during a presentation at the Industrial Fastener and Forming International Expo in Chicago, Kersten said cost pressures and environmental restrictions are putting the squeeze on fastener manufacturers.
European fastener makers are working to achieve some environmental goals set by the European Union.
One aim is to cut carbon dioxide emissions while developing alternative power and better fuel economy. Auto manufacturers have approached the challenge in various ways: hydrogen fuel cells, electric/hydrogen hybrids, and the next generation of diesel engines.
Kersten charged that hybrid and fuel cell engines are politically motivated, saying many environmental advances could be made with advanced combustion engines. Thankfully for Nedschroef and other suppliers, Europe has chosen diesel technology to cut CO2 emissions over the next 10 to15 years, a decision that gives Kersten hope.
�I�m living to sell fasteners, and diesel engines use fasteners.�
Kersten warned that replacing existing powertrains that have up to 500 fasteners with fuel cells will have a large impact on the fastener industry.
To increase fuel economy, European automakers are insisting on lighter fasteners, Kersten stated. The problem is that some car companies falsely assume that lighter materials, such as aluminum and magnesium, will make lighter fasteners than steel with the same clamp load. And they don�t always remember that aluminum costs 10 times more than steel; magnesium costs 30 times more. Kersten admonished fastener makers to explain the cost increase before they redesign steel fasteners out of aluminum.
�You have to keep in mind that the price is sky high,� he commented.
Another EU goal is the total phase-out of hexavalent chromium, a toxic metal linked to lung cancer and other illnesses, by 2007. Chromium VI is used in most surface finishes because it provides good corrosion resistance. Currently there are no Chromium VI-free finishes that meet corrosion requirements, though fastener manufacturers are developing new coating technologies. Kersten explained that substitute materials, such as trivalent chromium, don�t resist corrosion as well, requiring an additional topcoat to provide similar results. This extra step increases cost on fasteners, which automakers refuse to pay for.
Why should U.S. manufacturers care about EU efforts to cut CO2 emission and eliminate Chromium VI? Kersten pointed out that because most carmakers operate globally, EU decisions will have a worldwide affect on surface finishes and fastener design.
Concerning cost, Kersten said U.S. manufactures get 30% higher prices for fasteners than their European and Japanese counterparts. He wonders how long Chrysler, Ford and GM will give U.S. suppliers this price �bump,� cautioning all fastener makers to actively find ways to reduce costs.
In an age of increasing consolidation, many auto manufacturers are cutting cost by forcing Tier 1 suppliers to conduct research and development. This practice provides suppliers a couple years of security on their products before designs are farmed out to countries with low labor costs.
�This is the only way we think we can survive in the future,� Kersten stated.
Kersten acknowledges that global regions (Europe, Japan and U.S.) have different fastener philosophies. Weight is the driving force in Europe, while the U.S. isn�t as concerned about it. But as the auto industry becomes increasingly standardized, efforts to increase fuel economy could lead U.S. carmakers to push for lightweight domestic fasteners.
At present Nedschroef expends about 25% of its energy on weight reduction.
Kersten described Nedschroef�s attempt to cut cost. After analyzing an engine they determined it contained 248 fasteners, 217 of which were flange bolts. So Nedschroef improved flange production to reduce cost by 15%. �To be more competitive, we have to be more creative. We have to look for details.�
Despite challenges, Kersten remains optimistic about the future for fastener suppliers. �There is a huge future for us, you just need to know where the market is going.� �2003 FastenerNews.com\