Solvay Automotive Wins Largest-Volume Plastic Fuel System Contract in North America

Strategic Insights -

Solvay Automotive has secured a significant contract with Chrysler Corporation to supply high-density polyethylene (HDPE) fuel systems for the redesigned 1996 Plymouth Voyager, Dodge Caravan, and Chrysler Town & Country minivans. This is the largest production volume of plastic fuel systems in North America, with 550,000 to 650,000 units expected to be produced.

The contract marks a milestone in Solvay Automotive's ability to manage and service high-volume production jobs. The company's expertise in producing complete fuel systems, including engineering and project management, has enabled it to team with Chrysler to develop a fuel system that meets its needs for fuel economy, cost, and safety.

Key Takeaways:

  • Solvay Automotive has won the largest-volume plastic fuel system contract in North America, worth 550,000 to 650,000 units.
  • The contract is a significant milestone for Solvay Automotive, showcasing its ability to manage and service high-volume production jobs.
  • The company's expertise in producing complete fuel systems, including engineering and project management, has enabled it to team with Chrysler to develop a fuel system that meets its needs for fuel economy, cost, and safety.
  • The Chrysler minivans will feature a fuel system based on the same plastic fuel tank, which provides numerous advantages, including a savings of 11 pounds per vehicle, noise and rattle reduction, and meeting Federal Clean Air regulations.
  • The North American plastic fuel tank market share was nearly 25 percent in the early 1990s and is expected to increase to more than 60 percent in 1998.
  • Solvay Automotive's South Bend, Ind., and Blenheim, Ont., facilities will produce the fuel tanks, which will be shipped just-in-time to Chrysler's St. Louis, Mo., and Windsor, Ont., assembly plants.
  • The company's global capabilities will be utilized to produce the plastic fuel tank for Chrysler's minivans at its Mulhouse, France, facility, which will be shipped just-in-time to Eurostar, Chrysler's Graz, Austria, assembly plant.
  • Solvay Automotive supplies the North American automotive industry with a comprehensive range of blow-molded and injection-molded products, including HDPE fuel tanks and fill necks, reservoirs, seating, and ducting.

Statistics:

  • 550,000 to 650,000 units expected to be produced under the contract.
  • North American plastic fuel tank market share increased from nearly 25 percent in the early 1990s to over 60 percent in 1998.
  • 11 pounds per vehicle saved with the use of the plastic fuel tank.
  • 75 percent of vehicles in Europe feature plastic fuel tanks.
  • Solvay Automotive has over 400 facilities in 36 countries around the world.

Sources:

  • Chrysler Corporation (NYSE: C)
  • Solvay Automotive
  • Solvay America, Inc.
  • Eisbrenner Public Relations