In order to adapt, the automotive industry is learning to make cars differently. Underpinning all of these advancements is a need for stronger, lighter, and more durable materials.

Below we take a closer look at three trends that are fundamentally changing the way consumers think about cars, and what the car industry is doing to stay ahead.

Shared Mobility

Companies like Uber and Lyft have left an indelible mark on the way people use cars. While it used to be understood that a vehicle was one’s personal property and space, those ideas are changing. Over the last five years, car sharing services have seen 30 percent annual growth, and McKinsey predicts that one out of 10 cars will be a shared vehicle by 2030.

With this much sharing, vehicles will need to be replaced more frequently as they will be used more often and experience more everyday wear and tear. As consumers move away from owning one car and begin to use services that offer on-demand vehicles for specific uses, the materials used to make these cars need to improve.

Recently, many steelmakers have been working toward advanced high-strength steel (AHSS) solutions. AHSS steel solutions are also more durable than conventional steels, making them ideal for new cars that are going to be on the road with more frequency. This advancement is necessary as consumers begin to change their driving behaviors while maintaining high standards for safety and quality in the cars they use.  

Self-Driving Cars

Self driving cars are a fairly new idea, but in a short amount of time, they have consumed the imagination of the public and R&D labs around the world. Seemingly every company in the automotive industry is working on some form of a self-driving vehicle, and even those not in the industry are getting involved (see Google’s Waymo video below).

While autonomous cars are not yet market-ready, they will be soon. However, because it causes such a dramatic shift to the way people use cars, manufacturers will need to jump many hurdles before they are fully accepted by the public at large.

As with any new technology, access will be limited and expensive. In the beginning at least, it is unlikely that self-driving cars will be affordable enough for mass distribution. In addition, they must become more accessible for consumers. Most people have never seen, much less taken a ride in, a self-driving car. It is hard for people to imagine the experience, and even more difficult for them to place their trust in a piece of software located in a multi-ton vehicle. In order to ensure the trust of consumers, the auto industry must work to manufacture cars that are safer and more secure.

Advancements made in AHSS have allowed auto manufacturers to design cars with even stronger steel. Now, with auto steel being produced that goes beyond the 1,000 MPa range, consumers can feel more at ease with the software that enables them to get the grocery store.   

Electric Vehicles

Electric cars represent the forefront of the trend toward more fuel-efficient cars. Hybrid cars that use a combination of a gasoline powered engine and a rechargeable battery captured the attention of the industry after Toyota successfully launched its Prius in 1997. As car makers race to produce an electric vehicle that is viable for mass production, seemingly every major player is working toward a true electric car solution with zero emissions.

The Chevrolet Bolt EV offers a range of 200+ miles, a key milestone for consumers. (Photo by Jeffrey Sauger for Chevrolet)

Having relied on gas powered engines for over 100 years, the change to battery powered cars is changing the fundamental nature of how a car is made. Consumers have proven unwilling to change their driving habits and expectations, so manufacturers have struggled to build electric cars that can match the performance of their gas-powered cousins.

Advancements in lightweighting are required for electric cars as they will not be equipped with gas-powered engines. Also, improvements in battery technology are also needed so that EVs can increase their driving range and allow consumers to drive distances similar to what they can today.

Innovations in steel technology have given car manufacturers ideal options for lightweighting as new advanced high-strength steels (AHSS) offer lightweight, strong automotive steel. Compared to other alternatives, these new ultra high strength steels are also more eco-friendly to produce. Advancements in lithium extraction technology have also made the process faster and more environment-friendly.

The automotive industry is going through a renaissance. New expectations from consumers coupled with stricter regulations are forcing quick changes to an industry that has moved at its own pace for 100 years. As car manufacturers work to build cars that are safer, more durable, and much lighter, POSCO’s innovations in steel technology provide material solutions that are stronger, lighter, and more durable. Together with POSCO’s work in lithium extraction technology, they have also created more eco-friendly ways to make the rechargeable batteries for electric cars.     

This month, The Steel Wire will continue to look at how POSCO is driving the future of the automotive industry with its new advanced automotive steel solutions.

At the 2014 POSCO Global EVI Forum, more than 1,200 people from 500 global client companies attended and observed POSCO’s strong will to create customer value through its constant solution marketing. Under the theme of ‘From Steel Supplier to Solution Partner’, the forum’s main program, the Industrial Session, proceeded in six different categories: automobile, energy, shipbuilding, electronics, construction, wire rod and stainless. In our previous blog post on 2014 POSCO Global EVI Forum, we introduced the overall activities and content of the event. Today, we would like to share more detailed descriptions of the forum and interviews with POSCO’s global client companies.

1. Topics Of The Six Industrial Sessions

Automobile – ‘Steel Solution For Eco-Friendly Cars Of The Future’
The automobile session started with DPCA (Dongfeng Peugeot-Citroën Automobile) and Volkswagen’s keynote speech on the trend of vehicle weight reduction and its technical development. Following the speech, POSCO’s automotive structural steel development, Nissan’s environment-friendly activities and weight reduction technology development, Ford-India’s business status and POSCO-Maharashtra’s localization strategy were introduced. In addition, Volkswagen presented a research on automotive high-manganese PosM Steel deformation behavior while Austem demonstrated its development state of magnesium seat cushion pan through form analysis.

Energy & Shipbuilding – ‘Steel Material’s New Pursuit In The Oil· Gas Industry’
The energy and shipbuilding session started off with ForceTEC’s keynote speech which introduced Daewoo Shipbuilding & Marine Engineering’s development on high manganese steel LNG tank and the new pursuit of steel materials within the oil and gas industry. Also, as examples of solution application, large container ship brittle crack arrest solution developed by Samsung Heavy Industries and semi-submersible floating structure of an American company, Principle Power Inc.

Construction Session – ‘Introducing The Application Of High-Strength Steel In Construction’
Under the topic of ‘Extensive Establishment of Global Solution in the Construction Market’, the keynote speech of the construction session was brought by LERA on the application cases of high-strength steel in construction whereas, K&C Engineering company from America introduced a blast-resistant design of high-performance steel. Also, Bandung Institute of Technology of Indonesia presented the basic design of the Sunda Strait Bridge. 

Electronics Session – ‘Sharing The Design Of High-Strength Steel Home Appliances’
The electronics session focused on the topic of ‘design of high-strength steel home appliances and electrical steel sheet technology for high-efficiency product development’. IHS Energy and Power Consulting presented on the display industry issue and perspectives while Korea Electronics Technology Institute (KETI) delivered a keynote speech on ‘electric motor technology trends and electrical steel sheet’s requirement’. Additionally, TCC Steel introduced case studies of POSCO steel material utilization whereas Siemens proposed about a power transformer’s DC compensator.

Stainless Session – ‘Creating The Safe, Eco-Friendly And Sparkling Stainless World’
With a general topic on ‘solution marketing for the safe, eco-friendly and sparkling stainless world’, the stainless session initiated with POSCO Research Institute’s keynote speech on the trends of global competition in the stainless steel industry and Dgenx’s proposal on its automotive exhaust system. Moreover, POSCO reported about the development trend of new stainless steel product.

Wire Rod Session – ‘Reporting The Development Trend Of High-Strength Cable For Bridges
The wire rod session which was held under the topic of ‘solution marketing and shared value of the global era’, opened with French specialty contractor, Freyssinet’s presentation on the development trend of high-strength cable for bridges’. Subsequently, Denmark COWI’s applicable technology trends and Nissan’s long steel quality improvement activities were introduced. Also, POSCO’s global sales strategy and R&D activities for wire rod sector were presented at the session.

2. Special Interview With POSCO Clients At The Global EVI Forum
Let’s check out what POSCO’s clients at the event would like to share about POSCO and this year’s EVI forum.

2-1 Nam-Jun Park, Managing Director Of KISWIRE

How Would You Describe The Cooperation Between POSCO And KISWIRE?
POSCO and KISWIRE have been engaging in cooperative activities such as the strategic development of potential items for more than 10 years now. And the long-term business cooperation has recently achieved a fruitful result. It was especially more meaningful to present the cooperation history of POSCO and KISWIRE at the forum session.

What Special Meaning Does Solution Marketing Have On KISWIRE?
As a project management format management structure, KISWIRE has been actively engaging in development activities from product order to finished product for a long time. Nowadays, this would be called ‘solution’ or ‘solution marketing’. Rather than focusing on each individual problem with a myopic perspective, looking at a larger picture while providing a diverse choice of solutions to clients and displaying a pioneer spirit in the given field can be considered as ‘solution’ in a broad sense. 

What Are Your Expectations For POSCO In The Future?
Through this year’s forum, I was able to reconfirm POSCO’s great efforts on solution marketing at the corporate level and POSCO’s strong will to actively share it with client companies. Also, as a client myself, I was inspired by CEO Kwon Ohjoon’ s keynote speech to hold an expectation that POSCO will be supportive to solve the client’s issues together. I hope POSCO can actively coordinate with clients on developing and creating the market in the future.

2-2 Prof. Dr. Ir. Iswandi Imran, Structure Engineer From Faculty Of Civil And Environmental Engineering Of Bandung Institute Of Technology 

How Is POSCO’s Solution Marketing Related To Your Presentation At The Forum?
During the construction session, I made a presentation on the foundational design of the Sunda Strait Bridge (JSS) which will be connecting Sumatra and Java islands in Indonesia. Today, POSCO’s high-strength steel technology has developed further compared to my research result announcement which was two years ago. Numerous hazards exist on site since the Sunda Strait contains deep sections of more than 60m in depth and towers are constructed on an extremely steep sea bottom. However, with POSCO’s solution, which is the high-strength steel of 2200MPa strength, the problems of risk factors are resolved.

Is There Any Perspective Plan To Cooperate With POSCO?
On November 11^th, a seminar hosted by Himpunan Ahli Konstruksi Indonesia (HAKI) and supported by Indonesia’s Institute of Road Engineering (IRE) will be held in Jakarta. On the very next day, POSCO and Bandung Institute of Technology will be signing a MOA. I hope for a progressive and constructive cooperation plan can be established. It will be a great opportunity to exhibit POSCO’s brand value, outstanding technology, POSCO- Krakatau and more.

What Are Your Expectations For POSCO In The Future?
POSCO-Krakatau embodies a significant meaning since it is the very first blast furnace steel mill founded in Southeast Asia. I hope this MOA will develop as an outlook to solidify the relationship as students of Bandung Institute of Technology visit POSCO-Krakatau and learn about the steel production process.