EPA-460/3-74-026-a
DECEMBER 1972
     ASSESSMENT OF DOMESTIC
         AUTOMOTIVE INDUSTRY
       PRODUCTION  LEAD TIME
     OF 1975/76 MODEL YEARS
                        VOLUME I  -
           EXECUTIVE SUMMARY
                   FINAL REPORT
       I'.S. ENVIRONMENTAL PROTECTION ACENCY
          Office of Air and Waste Management
       Office of Mobile Source Air Pollution Control
          Emission Control Technology Division
             Ann Arbor, Michigan 48105

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                                        EPA-460/3-74-026-a
ASSESSMENT OF DOMESTIC  AUTOMOTIVE
    INDUSTRY  PRODUCTION  LEAD TIME
            OF  1975/76  MODEL YEARS
     VOLUME I - EXECUTIVE  SUMMARY
                   FINAL REPORT
                         Prepared by

          D.E. Lapedes, M.G. Hinton, Torulura, and Joseph Meltzer

                        Aerospace Corp.
                      El Segundo, California
                      Contract No. 68-01-0417
                 EPA Project Officer: F. Peter Hutchins
                         Prepared for

               U.S. ENVIRONMENTAL PROTECTION AGENCY
                  Office of Air and Waste Management
               Office of Mobile Source Air Pollution Control
                 Emission Control Technology Division
                    Ann Arbor, Michigan 48105

                         December 1972

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This report is issued by the Environmental Protection Agency to report
technical data of interest to a limited number of readers.  Copies are
available free of charge to Federal employees,  current contractors and
grantees,  and nonprofit organizations - as supplies permit - from the Air
Pollution Technical Information Center, Environmental Protection Agency,
Research Triangle Park, North Carolina 27711; or,  for a fee, from the
National Technical Information Service, 5285 Port Royal Road, Springfield,
Virginia  22161.
This report was furnished to the Environmental Protection Agency by
Aerospace Corp. , El Segundo, California, in fulfillment of Contract
No. 68-01-0417. The contents of this report are reproduced herein as
received from Aerospace Corp. The opinions, findings, and conclusions
expressed are those of the author and not necessarily those of the Environ-
mental Protection Agency.  Mention of company  or product names is
not to be considered as an endorsement by the Environmental Protection
Agency.
                 Publication No. EPA-460/3-74-026-a
                                 11

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                               FOREWORD
               This report, prepared by The Aerospace Corporation for the
Environmental Protection Agency, Division of Emission Control Technology,
presents an assessment of available  information pertaining to the production
lead time requirements of the automotive industry for 1975/76 model year
automobiles.
               The status of the production lead time reported herein is that
existing at the time of data  acquisition visits made to selected firms in the
period August  1, 1972 through October 5,  1972.  The results of this study
are presented in two  volumes.  Volume 1,  the Executive Summary, presents
a brief, concise review of important findings and conclusions in the Highlights
and Executive Summary sections.  Volume 2, the Technical Discussion,
provides a comprehensive discussion of each study topic and is of interest
primarily to the technical specialist.  In Volume  2 a brief discussion of basic
automotive product development phases is given in Section 2.  A summary of
emission control systems currently proposed by domestic automobile manu-
facturers for model years 1975/76 is presented in Section 3.  The assess-
ment of the industry's production lead time requirements, with particular
emphasis on the impact of critical emission control  system components and
subsystems, is discussed in Section  4.  Specific lead time schedules obtained
from automobile manufacturers,  catalyst and substrate manufacturers, auto-
mobile component manufacturers, and production equipment manufacturers
are given in Sections 5 through  8.  Similar lead time schedules for  non-
automotive industry manufacturers and  for a government automotive procure-
ment agency are presented  in Sections 9 and  10, respectively.  Section 11
contains  a discussion of platinum-group metal production and usage. Finally,
Appendix A,  Section  12, contains a listing of the companies visited  in the data
acquisition activity.
                                    111

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                          ACKNOWLEDGMENT
              Appreciation is acknowledged for the guidance and continued

assistance provided by Mr. F. P. Hutchins of the Environmental Protection

Agency,  Division of Emission Control Technology, who served as EPA

Project Officer for this study.

              The following technical personnel of The Aerospace Corpora-

tion made valuable contributions  to the assessment performed under this

contract.
               L.  Forrest
              O.  Hamberg
              R.  B.  Laube
    W.  U. Roessler
    W.  M. Smalley
    K.  B.  Swan
                                          D. XE^  iJapedes, /Manager
                                          Production Lead  Time Study
Approved by:
Merrill G. Hinton, Director
Office of Mobile Source Pollution
 .oru lura, Assistant GroupIHrector
Environmental Programs
 Group Directorate
  h Ivleltzer, /GVoup Director
 ronmental Programs
roup Directorate
                                    IV

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                               HIGHLIGHTS
              A summarization and assessment were made of available

information pertaining to the production lead time  requirements of the

domestic automotive industry for 1975/76 model year automobiles. Assess-

ment of the status of the industry as of the time of data acquisition visits and

technical discussions (August 1 to October 5,  1972) resulted in the following
findings.

1.    General Motors,  Ford, Chrysler, and American Motors are currently
      proceeding on 1975 model year production  schedules which call for the
      start of full mass production at the normal new model production start
      date  of August 1974.

2.    All domestic automobile- manufacturers have basically similar  1975
      production schedules which are consistent  with the historically  estab-
      lished guideline for management approval of the new model car devel-
      opment program at approximately 28 months prior to mass production
      initiation.

3.    These 1975 production  schedules include provisions for  the incorpora-
      tion of an  emission control system consisting of an oxidation catalytic
      converter, exhaust gas recirculation, air injection, improved
      carburetion and ignition,  and  devices  or  techniques to promote  fast
      warmup of the induction system and catalytic converter.

4.    The catalytic  converter is identified by all automobile manufacturers
      as the most critical production lead time item in their schedule.  It  is
      schedule - controlling because  of the  lead  time required by  suppliers  to
      develop  facilities for mass producing  both  substrates and finished
      catalysts (approximately  2 years).

5.    The lack of satisfactory test results from prototype automobile test
      programs is having a major impact upon the decisions of automobile
      manufacturers pertaining to final catalyst commitments.  To date, no
      domestic manufacturer has successfully  completed mileage  accumulation
      tests to  50,000 miles, although some  prototypes have  come  close to
      meeting the emission standards at extended mileage.   The automobile
 Production lead time is herein defined as that time period allocated or
 required for  the refinement of mass manufacturing techniques, construction
 of manufacturing facilities, and the procurement and installation of
 equipment.

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     manufacturers have,  therefore,  placed orders for long lead time
     equipment and tooling based on their best judgment as to what will
     constitute a final design.  Some  companies still have to choose  between
     pellet and monolith substrates and between promoted base metal and
     platinum-group metal catalysts.  Many final commitments to substrate
     and catalyst manufacturers are being delayed as long as possible in
     order to have  more data available before making such high risk
     decisions.

6.   Partial and  staged financial commitments to  catalyst and substrate
     manufacturers have been made by the various automobile manufacturers
     in order to enable the catalyst manufacturers to initiate preliminary
     facility de sign and site  selection activities.   However, final commit-
     ments to the catalyst suppliers are  required  before facility construction
     will be initiated.

7.   Available  estimates of capital cost requirements per individual supplier
     are in the range of $4 to $5 million  for substrate production facilities,
     and $4 to $15 million  for  catalyst production  facilities with capacities
     ranging between 3 and 10 million units per year. At these cost levels,
     the  substrate and catalyst manufacturers will not commit venture
     capital without a firm production contract or  other form of guarantee.
     It is this  fact which presently most  strongly impacts the projected
     catalyst lead time schedules, since the  required production  facility
     construction will not  commence until  such agreements are successfully
     concluded.

8.   Current production lead time schedules of contending substrate and
     catalyst manufacturers require production order commitments, or other
     forms of venture capital guarantees,  from the automobile manufac-
     turers by  November to  December 1972 in order to ensure quantity
     production of oxidation  catalysts in  time for 1975 model year vehicles.
     In every case, the critical, or pacing, item in the overall catalyst
     production lead time  schedule is the time  required by the vendor  for the
     design of the production facilities, site  selection, and construction of
     the  facility or  plant.

9.   The status of contractual agreements between the automobile manu-
     facturers and  the catalyst manufacturers is one of uncertainty and
     change because serious negotiations were apparently under way during
     the  period of investigation (August to October 1972).  Most commit-
     ments to  date  have been of a preliminary nature and only  cover  funding
     for  preliminary engineering design  of production facilities and site
     selection.  These initial commitments have enabled the automobile
     companies to defer their  final commitments until the November to
     December 1972 time period.  Of the known agreements,  the Ford/
     Engelhard agreement is the most extensive, with Ford commitments
                                   VI

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      rising to about $10 million in March 1973 (when product-design-
      oriented equipment and facilities are to be purchased) and to
      $14 million by April  1974.

10.    Substrate manufacturers state, in general,  that no appreciable lead
      time  compression  can  be made at the present level of schedule
      definition.  In the finished  catalyst area,  there is some hope of minor
      schedule compressions (from 0 to 3  months for monoliths;  3 to 6
      months for pellet catalysts).  Estimates of  cost penalties for such
      schedule compressions range from negligible to  10 percent product
      cost increases for overtime pay and increased capital costs.

11.    Mass production of oxidation catalysts of the automotive type has never
      been  accomplished by any company;  however, the catalyst firms
      believe that related production and quality control techniques (in the
      chemical and petrochemical industries) provide a firm basis for
      assurance that their  proposed production lead time schedules can be
      met.   The automobile companies, however, have expressed some
      reservations  about the capability of the catalyst manufacturers to mass
      produce the catalysts in the volume necessary while maintaining
      quality control.

12.    If substrate,  finished catalyst, and converter canister  elements used
      in certification test vehicles are  not made with production equipment
      (e.g., if batch processing  rather than continuous processing,  soft
      tooling,  etc. , are  used), it may raise an issue as to whether or not
      the catalytic  converter tested was the same "in all material respects"
      as production units.  Items of concern in this regard include catalyst
      loading, uniformity of  loading, substrate physical properties, and
      canister dimensional,  physical, and weldment characteristics.

13.    The production lead time requirements of conventional automobile
      component  suppliers (body stampings, frames,  transmissions,
      carburetors,  exhaust systems, wheels,  brake parts, etc.) appear to
      be adequately met  by currently projected automobile manufacturer
      design release and/or  vendor commitment dates.  The key schedule
      dates for such component suppliers are those for the delivery of pro-
      duction samples to the automobile manufacturer  for certification test
      vehicles and  for car  pilot line production.

14.    Conventional  production equipment items (automatic transfer lines,
      cold stamping presses, resistance welders, etc. ) can be procured
      as required within the  lead time remaining  for 1975 model  year auto-
      mobiles.  Electron beam welders, required for edge-welding of the
      General Motors pelletized  catalytic converter canister, are being
      manufactured by Hamilton  Standard on a schedule consistent with the
      1975  production requirements of General Motors.
                                   vii

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15.   The current production capacity of platinum-group metals in the world
      is not sufficient to satisfy projected requirements of the automotive
      industry in the United States in the post-1975 time period.  However,
      the demand can be met  by the opening of new mines  in South Africa.
      In order to ensure adequate platinum-group metal availability in the
      1975 to  1980 time period, final contract agreements between the auto-
      mobile manufacturers and the  South African platinum-group metal
      mining firms must be signed in the near future.

16.   The platinum-group metal supply-demand balance is determined by
      the platinum-group metal loading requirement, the number of catalysts
      required for the various vehicle classes,  the catalyst  replacement
      interval, the mining industry capacity, and the degree of platinum-
      group metal recovery from spent catalysts.  A thorough study of these
      parameters  is  urgently needed in order to provide all  the data required
      for a complete and meaningful assessment of the platinum -group metal
      availability and demand issues.

17.   The automotive industry's stainless steel  requirements for the  1975
      model year (for exhaust systems, catalytic converter  canisters,
      thermal reactor liners,  etc. ) have not been fully quantified as to type
      and amount.  Raw material availability is not a problem, but material
      processing capacity may  be a problem unless the additional  equipment
      required is ordered in a timely manner.

18.   The 50, 000-mile durability certification test requires  approximately
      5 to 6 months  to complete.  In order to provide for the contingency of
      durability test  vehicle failure, the first durability test should start no
      later than September 1973 if two full durability test  periods  are desired
      (based  on an August 1974 vehicle production start date).

19.   Emission control systems currently under consideration  for use in
      1976 model year vehicles incorporate all  components of the  1975 system
      plus a reduction (NOX) catalyst(s), more sophisticated air injection
      systems, and  further modifications to  carburetion,  ignition, and
      exhaust gas  recirculation systems.  Production lead time schedules
      for the 1976 model year have not yet been disclosed  by the automobile
      manufacturers due to the uncertainty attending  critical lead  time
      elements of the 1975 model year production schedules  and the lack of
      satisfactory development of reduction catalysts for control of oxides
      of nitrogen.

20.   The full-size thermal reactor  is not considered a viable option  or
      alternative to  the catalytic converter for 1975 model year vehicles, as
      the thermal  reactor  is not fully developed and the automobile companies
      have not ordered the long lead time production  equipment required for
      its manufacture. Ford states  that the  time is now past the critical
      point for ordering such foundry equipment for 1975 model year  production.
                                        viii

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      The foundry industry (exclusive of automobile company foundries)
      indicates that if additional foundry capacity on its part would be
      required,  it would take 36 months to bring it to full production status.
21.   Less effective partial thermal reactors,  smaller in volume and less
      complex than full-size reactors, are currently programmed for use  in
      1975 emission control systems.  These could be used without catalytic
      converters but  tho resulting emission reduction capability is at present
      not well defined and  could vary among the different automobile manu-
      facturers,  according to individual design details.
              Some statements made herein may  make it appear that the 1975
model year automobile production schedules  have  changed  with time since  they
were  originally  presented  at the EPA Suspension Request Hearings  in April
1972.  However, the  overall lead time schedules have remained relatively
constant during  the intervening period.  Adherence to these schedules has
been accomplished by making (a) timely design decisions as  required,
(b) minor  compressions in  supplier lead time schedules, and (c) partial or
staged commitments  in critical Icing lead time areas.
               The risk to the  automobile  firms in  following  the original  lead
time schedules has been increasing with time.  This is due to the fact that
decisions  in accordance with schedule milestones  have had to be made with
incomplete data regarding the  adequacy of proposed emission control systems.
Therefore, il would appear that the current production lead time  schedules
will permit 1975 model year production to begin in August  1974, unless  the
automobile manufacturers judge that the systems under development are so
unsatisfactory that further  commitments will not be made on  the dates
required.
                                     ix

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                                CONTENTS



FOREWORD	     iii

ACKNOWLEDGMENT	     iv

HIGHLIGHTS	      v

EXECUTIVE SUMMARY

      1.     Introduction	      1
      2.     Automotive Product Development Phases   	      2
      3.     Proposed 1975/76 Model Year Emission
            Control Systems 	      4
      4.     Lead Time Schedules for Automobile
            Manufacturers	
      5.     Lead Time Schedules  Tor Catalyst and
            -Substrate Manufacturers	     20

      6.     Lead Time Schedules  for Automobile
            Component Manufacturers	     27
      7.     Lead Time Schedules  for production
            Equipment Manufacturers	     28
      8.     Noble Metal  Production and Usage	     28
      9.     Lead Time Schedule for a Government
            Automotive Procurement Agency	     30

     10.     Lead Time Schedules  for Nonautomotive
            Industry Manufacturers	     31
     11.     Assessment  of Automobile Manufacturers'
            Production Lead Time	     31
                                    XI

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                                FIGURES
1.       Automotive Product Development Phases   	     3

2.       General Motors Master Timing Schedule for  1975
         Emission Components  	     7

3.       Ford Overall Schedule:  1975 Vehicle and Emission
         Engine Program	    11

4.       Chrysler Overall Schedule for the  1975
         Emission Control System	    15

5.       American Motors 1975 Emission Control Program
         Timing Study	-	    19

6.       Production  Lead Time Schedule for Catalyst
         Manufacturers	    21

7.       Production  Lead Time Schedule for Substrate
         Manufacturers	    23

8.       Overall Production Lead Time Schedules	    32
                                 TABLES
1.       Current and  Pending Contract Agreements--
        Oxidation Catalysts and Substrates	    29
                                    xn

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                          EXECUTIVE SUMMARY
1.             INTRODUCTION
              This report presents a summarization and assessment of
available information pertaining to the production lead time requirements of
the domestic automotive industry for  1975/76 model year automobiles.
              The status of the production lead time reported herein is that
existing  at the time of data acquisition visits made from August  1 through
October  5,  1972.   During these visits,  discussions  relevant to production
lead time were held with  selected domestic automobile manufacturers,
catalyst  and substrate manufacturers, automotive component manufacturers,
production equipment manufacturers, nonautomotive industry manufacturers,
and a government automotive procurement agency.  To supplement this infor-
mation in certain  areas, data were used from the open literature and from
previous responses by industry to EPA  requests for production lead time
information.
              The main topic  covered in this report is the production lead
time requirement ol automobile manufacturers and their associated compo-
nent and equipment suppliers.   Emphasis has been directed toward identify-
ing critical lead time components, subsystems, and raw or processed mate-
rials associated with the introduction of emission control systems required
to  meet the  1975/76 emission standards--in particular,  catalytic converters.
In  addition,  associated lead time  requirements for tooling commitments,  sys-
tem durability and certification testing,  and prototype test programs  have
been evaluated.  A description of automotive product development phases and
a summary of proposed  1975/76 emission control systems is included to
clarify and augment the  discussion.
              This section of  the report summarizes  the more pertinent
information from  this assessment.  Further  details are given in the main
body of the report (Volume II).

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2.            AUTOMOTIVE PRODUCT DEVELOPMENT PHASES
              The process of developing an automotive product from concept
to mass production can be viewed as proceeding in discrete phases.  These
phases, though highly interrelated and in some instances overlapping in time,
may be isolated and characterized in terms of specific activities and
ope rations.
              The term "lead time" is a generic phrase  that can be  (and is)
applied to any one of a. number of different processes in  the automotive devel-
opment cycle.  Two specific terms involving lead  time are useful in  viewing
the automotive development cycle.  One of these is Product Development
Lead Time and the other ia Production  Lead Time.  Product  Development
Lead Time is the total time required for the development of  the automotive
product, starting from the  initial formulation  of the design concept and end-
ing with Vehicle Job No. 1, the first of the production run of automobiles of
a model year off the assembly line.  That part of Product Development Lead
Time encompassing activities concerned with  the development of mass manu-
facturing techniques and facilities  is designated as the Production Lead Time.
Specifically, Production Lead Time is defined as the time reserved by the
automobile manufacturer to (a) detail the product configuration for mass
manufacture; (b) analyze the manufacturing processes; (c) design or  plan the
equipment  and facilities needed to  perform these processes,  (d)  construct,
install, and check out the production equipment; and (e) escalate the  manu-
facturing process  to full volume  output.
              A representative product development cycle maybe considered
to consist of eight different phases.  These phases,  along with their  timing
and typical duration,  are shown in Figure 1.   The  data shown are broadly
representative of the practice in the automotive industry; however, the spe-
cific details  in any one manufacturer's  schedule may differ considerably.
Except for Research  and Advanced Development,  the overall product devel-
                                                  \
opment cycle spans approximately 48  months.   The milestone  marker shown
in the  chart identifies the point selected as the Production Lead Time refer-
ence,  which  represents the start of significant activity on the development of

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                             hr
               	PRODUCT DEVELOPMENT.
                            LEAD TIME
RESEARCH  AND ADVANCED
   DEVELOPMENT

PRODUCT CONCEPTUAL-
   IZATION

CONCEPT DEVELOPMENT/
   VEHICLE PRELIMINARY
   DESIGN

CAR PROGRAM APPROVAL

PRODUCTION ENGINEERING/
   CAR PROTOTYPE TESTING

PARTS PROCUREMENT/TOOL
   CONSTRUCTION,  INSTALLATION
   AND TRYOUT

PILOT ASSEMBLY

PRODUCTION BUILDUP
   ////n
                                       .PRODUCTION.
                                         LEAD TIME
           I7////////////////////W//////////////1
          PRODUCTION
LEAD TIME REFERENCE
                                                      UTJTft
                                    48
                  36            24            12

                 MONTHS TO  VEHICLE PRODUCTION
                  Figure 1.  Automotive Product Development Phases

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mass-production processes and facilities.  The indicated lead time to Vehicle
Job No.  1 is 26 months as compared with a range of 24 to 28 months indicated
by historical data from the individual manufacturers.
3.             PROPOSED 1975/76 MODEL YEAR EMISSION
               CONTROL SYSTEMS
               The 1975 emission  control system  is exemplified by the fol-
lowing package of components and engine modifications:
         Oxidation catalytic converter
         Air injection
         Partial thermal reactor
         Exhaust gas reci rculation
         Ca rbu re tor  modifications
         Ignition system  modifications
All first-choice systems selected  by the automobile manufacturers incorpo-
rate an oxidation catalyst with air injection for the oxidation of the unburned
hydrocarbon (HC ) and carbon monoxide (CO) species contained in the engine
exhaust.  The  catalyst type which  appears most frequently is the platinum-
group metal/monolithic  converter. Base metal/pelietized and promoted base
metal/pclleti/,ed catalyst designs  also are being  evaluated by some manu-
facturers, including  the General Motors Corporation and American Motors
Corporation.  Some automobile manufacturers are considering the use of a
catalyst overtemperature protection device in their projected 1975 emission
control systems to prevent catalyst damage under extreme/abnormal engine
operating conditions  (spark plug misfire, etc.).
               Exhaust gas recirculation (EGR) systems will be  employed in
all domestic 1975 model  year automobiles to control the oxides of nitrogen
(NO  ).  These  systems will be improved versions of the EGR systems used in
   X
most of the  1973 model year vehicles.

 Promoted base metal catalyst formulations contain small amounts of
 platinum-group metals.

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               The emission control systems of a number of manufacturers,
including those of the Chrysler Corporation, Ford Motor Company, and Gen-
eral Motors, utilize a partial thermal reactor in place of the conventional
exhaust manifold primarily to  provide more rapid warmup of the catalyst
under cold start conditions.  However, full-size thermal reactors are not
completely developed and are not being considered for  1975 systems.
               Carburetion/intake system modifications include such features
as altitude compensation, quick-release choke devices, and intake manifold
heating.   All domestic manufacturers  propose,  or have in development,
electronic (breakerless) ignition systems which are targeted  for inclusion in
their first-choice emission control system.  These  systems generally pro-
vide an improvement in  spark-timing precision,  consistency,  and  reliability.
               Alternate systems under investigation by the automobile man-
ufacturers for  potential  use in 1975 model year  vehicles  incorporate different
types or  designs  of catalytic converters but are otherwise similar to the
emission control packages selected as first-choice systems.
               Emission control systems  currently under consideration by
the automobile manufacturers  for use  in 1976 model year vehicles will incor-
porate all components in the 1975 system plus:
         Reduction catalyst(s)  installed upstream  of the oxidation catalyst(s)
         More  sophisticated air injection  systems
         Modified carburction,  ignition, and EGR systems
A number of automobile manufacturers are  experimenting with unconven-
tional engine configurations, including the rotary  (Wankel), stratified  charge,
gas turbine,  Rankine, and Stirling engines.   With the exception of  the  rotary
engine, it appears that these unconventional engines will be neither developed
nor be manufacturable in large quantities in time  for the 1975/76 model year.
Therefore,  these engines are not considered in this study.

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4.             LEAD TIME SCHEDULES FOR AUTOMOBILE
               MANUFACTURERS
               This section summarizes the current status of the 1975 model
year production schedules of the major domestic automobile manufacturers,
the major factors impacting current schedules, and the critical or limiting
lead time items.  Current and pending contractual  agreements  with potential
suppliers are also delineated.
4. 1            GENERAL MOTORS CORPORATION
4. 1. 1          Production Schedules
               The 1975 emission control system master timing schedule for
General Motors is presented in Figure  2.  This schedule shows only the
deadlines for those component systems still under  development and which
could impact the 1975 production lead time.  Car assembly starts approxi-
mately  the first week of August 1974, with component full production com-
mencing a month earlier for the carburetor and catalytic converter,  and
2 months earlier for  the  unitixed ignition and early fuel evaporation (EFE)
systems. It is to be noted that the  first lead time milestones for carburetors
and catalytic converters, the tooling and facilities  appropriation approval
dates, occurred in May and June of 1972.
               General Motors considers this timetable to be more theoreti-
cal than realistic,  since  it is based on the  assumption that all the devices
needed  to achieve 1975 emission levels can be  developed in time, and that
the manufacturing and assembly equipment necessary can be designed,  built,
installed, and brought up to production  capacity within  this period.
               With respect to the catalytic converter system, General
Motors  has  indicated a basic  change in  direction since  the April 1972  Sus-
pension Request Hearings.  It is now planning to incorporate a mix of both
platinum-group metal and base metal pellets in the under-floor catalytic con-
verter instead of all-base metal pellets. Also, General Motors is actively
working on the development of its new triple-mode  (or  T-MECS) emission

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                              CY 72                      CY 73                 CY 74
                   iJlF|M|A|M|J|J|A|S|OiNlp|j|F|M|A|M|J|J|A|S|0|N|D|j|F|M|A|M|J|J|
                    30          25         20         15         10          5          0
                                       MONTHS TO VEHICLE PRODUCTION
CATALYTIC CONVERTER
                           A  B
                               G  H
NEW CARBURETORS
                            B
                               G  H
QUICK HEAT MANIFOLD
(EARLY FUEL EVAPORATION)
                                                 B
                              G   H
ELECTRONIC IGNITION
                      A/B/C
F'  G'   H'
                                                  (1974 MODEL YEAR)
G  H
                    (1975 MODEL YEAR)
                      A - PRODUCTION DESIGN PRELIMINARY APPROVAL
                      B - TOOLING & FACILITIES PROGRAM APPROVAL
                      C - START PRODUCTION TOOLING
                      D - START PRODUCTION PRETEST BUILD  FROM PARTIAL TOOLING
                      E - START PRODUCTION SAMPLE BUILD
                      F .- START VEHICLE PILOT PART PROGRAM
                      G - FULL COMPONENT PRODUCTION
                      H - START VEHICLE PRODUCTION
   Figure  2.  General Motors Master Timing Schedule for 1975 Emission Components

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control system in which the catalyst container is cast into the exhaust
manifold.  The final system selection has not yet been made; however the
under-floor system is still considered as its first-choice system.
4. 1.2         Major Impact Factors
              General Motors maintains that to date no tests have success-
fully demonstrated the capability of its emission control systems to meet the
1975 Federal emission standards.  Despite this lack of promising results,
General Motors is making commitments for equipment and components to
meet its production lead time schedules.
              The major component impact factor on production lead time
is that of the catalytic converter.  With regard to the  under-floor converter,
the General Motors recent  decision to incorporate  platinum-group metal
pellets  has further intensified the testing activity and  delayed certain deci-
sions regarding this system. At the time of this investigation, the catalyst
supplier had not been selected although  General Motors indicated a decision
was near.
              With respect to the manifold-mounted T-MECS system, Gen-
eral Motors  is investigating an  extruded monolithic converter.   Although
it is still  considering outside suppliers,  General Motors is proceeding with
plans to build its own monolithic converter.  It presently has a pilot-type,
manually  operated extruding machine at the AC Spark Plug Division.
              An improved carburetor design is still under development: and
therefore is  considered to be an impact factor. For 1975,  General Motors
plans to have revised versions of existing carburetors as well as new-design
carburetors.  Additions to  the plant at the Rochester Products  Division are
being made,  and the plant is scheduled to be occupied in November 1972.
              The EFE system is a system which  accelerates  the evapor-
ation of fuelduring  engine warmup to reduce HC and CO exhaust emissions
during the initial phases of the Federal test cycle.   Tooling  commitments

-------
for EFE do not appear to be critical at this time, based on its early
successful development.   The tooling and facilities appropriation approval
milestone is scheduled for March 1, 1973.
4.1.3          Critical Lead  Time Items
               The critical lead time item is the catalytic converter system
For the under-floor catalytic converter, the longest  lead time item is the
electron beam welder.  General Motors feels that this welder is a possible
source of delay due to a lack of experience  with it in this particular applica-
tion. Good corrosion-resistant steel (not stainless  steel) for the catalyst
container has been developed by General Motors, but it has had no production
experience with the material in regard to its formability and weldability.
The Hamilton Standard Division of the  United Aircraft Corporation manufac-
tures the electron beam welding equipment  and has recently delivered the
first prototype welder to the AC Spark Plug Division for equipment evalua-
tion and  development  and training of personnel.
               Specifically critical items were not delineated by General
Motors for the T-MECS system;  however, since this  system has had  less
development time than the under-floor catalyst system, it  should be identified
as a critical lead time item.
4. 1.4          Current and Pending Contractual Agreements
               General Motors  has $630,000 committed to the W. R.  Grace
and Company for tho preliminary design of  production line  facilities for  both
monolithic and pellet  catalyst plants.  No other catalyst-related commil-
ments are known to exist at this time,  although preliminary contract  negotia-
tions with nine potential oxidation catalyst suppliers  are under  way.
               General Motors  is negotiating with a number of platinum - group
metal mining companies in South Africa and with the Soviet Union.  To date it
has entered into a contract with Impala Platinum, Ltd. of Johannesburg,
South Africa to develop the production  capacity required to supply General
Motors with  300,000 ounces of  platinum and 120,000 ounces of  palladium per
year.  General Motors considers the contract with Impala as a statement, of its

-------
intent to buy the quantities cited and has placed a high priority on this issue.
A number of decisions are expected to be made very soon.   The actual yearly
amount of platinum-group metals required by General Motors is dependent on
the results of current road tests in which a cross-section of vehicles with
different catalyst  loadings (0. 025 ounce to slightly above 0. 1 ounce) are being
run.
4. 2            FORD MOTOR COMPANY
4. 2. 1          Production Schedule
               An overall schedule depicting Ford's 1975 mode]  year produc-
tion development program is shown in Figure 3.  This  schedule  combines
elements of Ford's timing plans for the vehicle and  the engine/emission sys-
tem.  Key milestones are shown on the lead time schedule by letter designa-
tion with explanations as noted.
               Milestone "B" (May 1971)  represents Ford's  initial commit-
ment to Engelhard Minerals and Chemical Company covering the development
of pilot plant facilities for the production of catalytic converters.  Twenty-
eight months prior to vehicle Job No.  1,  at milestone "D" (April 1972), the
car manufacturing development program  begun at 43 months was given a
final review by Ford management  and  approval was  issued to proceed with
manufacturing development.  The  program approval point usually signals
the beginning  of large-scale capital equipment  and tooling procurement oper-
ations  and is therefore  frequently  identified with the production lead time
requirement,  even though some  initial capital  commitments (for example,
Ford's milestone  "B") already have taken place.
4. 2. 2          Major Impact Factors
               With  regard to 1975-peculiar, emission-control - related
impact factors, Ford is proceeding with production development based on
the use of a catalytic converter emission control system design  that is pres-
ently unproven with  respect to 1975 performance requirements.  The 1975
car program approvals (April 1972) were issued shortly after the Ford dur-
ability test  program at Riverside, California  had begun and the catalytic
                                     10

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1971
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                             MONTHS TO VEHICLE PRODUCTION
  A - INITIATE CAR DEVELOPMENT PLAN
  B - FIRST COMMITMENT  TO ENGELHARD
  C - START 50,000 MILE DURABILITY  TESTS
  D - CAR PROGRAM APPROVAL
  E - COMMITMENT TO ENGELHARD MAIN PLANT/ORDER
      PRODUCTION TOOLING AND EQUIPMENT
  F - START TOOL SET-UP AND TRYOUT
  G - START CERTIFICATION  TESTING
  H - COMPLETE TOOL SET-UP AND TRYOUT
I  I  - DELIVER/FABRICATE PRODUCTION SAMPLES
  J - VEHICLE JOB No. 1
    Figure  3.  Ford Overall Schedule:  1975 Vehicle and Emission Engine Program

-------
converter emission system road performance and durability characteristics
were largely unknown for the specific designs in test.  The Riverside tests
are continuing,  but according to Ford show little promise of meeting the 1975
emission goals.
              According to Ford, if EPA elected to issue interim 1975
standards which might also be met by other control devices,  such as thermal
reactors, the result would be a serious impact on the engine  compartment
packaging design which is usually fixed at 37 months  prior to Vehicle  Job
No.  1.  Ford stated that this design milestone was critical because changes
in the compartment geometry can progressively affect the entire  body  struc-
ture, starting with the engine cowl and proceeding  to the "A" pillars flanking
the windshield,  the door supports, the overhang, etc.  Furthermore,  the time
is now past the  critical point for ordering arc and holding furnaces  for
foundry operations involved in the manufacture of full-size thermal reactor
manifolds for the  1975 model year.
              As  much as 75 pounds of stainless steel per car may be
required for converter canisters  and exhaust systems and Ford is concerned
about the available supply.  It is unable to provide  a forecast of its  needs on
the basis of prototype testing conducted to date.  Therefore,  stainless steel
procurement and the associated vendor  lead time requirement may  be  another
Ford schedule impact factor.
4.2.3         Critical Lead Time Items
              The controlling item in the Ford  schedule is the development
of vendor facilities for mass producing  the catalytic converter.  The critical
aspect of catalytic converter production is the completion of facilities  for
mass manufacture of the  catalyst substrate and  for the wash coat and
catalyzing operations.
                                     12

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4. 2. 4         Current and Pending Contractual Agreements
              Known Ford contractual agreements include commitments
made to Engelhard relating to catalyst manufacturing operations,  and com-
mitments made  to the American Lava Corporation relating to substrate
manufacture.
              The first commitments involving Engelhard occurred May 24,
1971 and concerned the development of catalyst pilot plant facilities (Plant
No.  1).  In this  agreement, Ford and  Engelhard committed  funds  totaling
$2.  4 million for site procurement and initial construction operations.  Half
of this consisted of (nonrecoverable) Engelhard funds.  The next major incre-
ment of commitment was made  late in March 1972.  By June 1972, Ford had
committed $4. 0 million to the pilot  program, of which $3. 7 million were
direct  capital investment guarantees to Engelhard.  Of this  total,  $300, 000
were reserved for  assignment to American  Lava.
              On  August 1, 1972 Ford made another  commitment to  Engel-
hard, this one relating to the development of the main plant facility (Plant
No.  2).  The capital involved in this agreement is not known.   The Ford
commitments to Enge]hard plant development will rise sharply to about
$10 million  in March 1973 when product-design-oriented equipment and
facilities  are purchased, and to $14 million by  April  1974.
              In addition to the facilities development commitments  described
above, Ford has a  3-year contract with Engelhard which guarantees the supply
of one-half million troy ounces  of platinum per year.   The contract was said
to be written on a price-protected,  no-cost-for-cancellation basis.
              Ford's  commitment to  American Lava covers capital expendi-
tures through calendar year 1972 for the scaleup of production facilities to
meet a portion of Ford's (Engelhard's) substrate requirements.   This agree-
ment has  been extended (capital commitment unknown) to  cover,  on a  time-
phased basis, the  development  of additional American Lava production capa-
city through the first quarter of 1974.  This is  a maximum cancellation
agreement,  similar to  Engelhard's.
                                    13

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4.3            CHRYSLER CORPORATION
4. 3. 1          Production Schedules
               Figure 4 shows the lead times on an overall basis for the 1975
model year vehicle.  The longest lead time item is the catalytic converter
system which had a production design approval date of April  1972.  This lead
time is 28 months prior to vehicle production which starts approximately on
August 1,  1974.  Milestones based on available information are shown on the
lead time schedule by letter designation with explanations as  noted.
4. 3. 2          Major Impact Factors
               An important factor in the  schedule for the critical lead time
catalytic converter  system is  the start of production of the assembled mono-
lithic catalyst converter.  Chrysler  will subcontract the major components
of this device.   Subcontracting will involve three separate industries, since
no single  manufacturer has been found to  manufacture an assembled con-
verter.  These industries will perform substrate  manufacturing, catalyst
application, and container manufacturing.
               Certification of 1975 model year automobiles requires that the
certification test vehicles be constructed  with hardware similar in all
material respects to production vehicles;  therefore,  in some  cases, pro-
duction samples are planned to be delivered earlier than the  normally planned
pilot runs.  This would require very concentrated effort and tight coordination
with all vendors to have production equipment and tooling checked  out and
operational for this  purpose.
4. 3. 3         Critical Lead Time Items
              According to Chrysler, the procurement of the substrate is
the most critical lead time item  since this must precede  the application of
the catalyst and as sembly of the  catalyzed substrate into  the container.
Chrysler  has not placed purchase orders  for substrates and has not received
commitments from any vendor on meeting specific manufacturing schedules
in the quantities required.  The application of the  catalyst to  the substrate
                                     14

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CHRYSLER CORPORATION
1975 PRODUCTION SCHEDULE

OVERALL LEAD TIME


MAJOR FRAMES & BODY
STAMPINGS

ELECTRONIC SPARK
ADVANCE & ECR CONTROL

CATALYTIC CONVERTER
SYSTEM

CARBURETORS

VEHICLE PRODUCTION
START





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                                 30       25       20      15      10
                                            MONTHS TO VEHICLE PRODUCTION
A
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PRODUCTION DESIGN PRELIM. APPROVAL              G -
TOOLING & FACILITIES PROGRAM APPROVAL            H -
START PRODUCTION PRETEST FROM SOFT TOOLING      I  -
START PRODUCTION TOOLING                        J -
LIMITED PRODUCTION START                        K -
START PRODUCTION SAMPLE BUILD
START EPA CERTIFICATION TESTS
START VEHICLE PILOT PROGRAM
EARLY USE
FULL COMPONENT PRODUCTION START
START VEHICLE PRODUCTION
NOTE:  1.  D, - START PROCUREMENT OF DIE CAST DIES

       2.  D2 - START OTHER MAJOR TOOLING
      Figure 4.  Chrysler Overall Schedule for the 1975 Emission Control System

-------
is the  second most critical item and a potential exists for the  container to
become critical if the design is not definitized in the near future.
4. 3. 4          Current and Pending Contractual Agreements
               In September, Chrysler signed a contractual agreement for
catalysts  with the Universal Oil Products Company  (UOP) and is considering
Matthey Bishop,  Inc.  as another potential catalyst supplier.  The required
substrates will probably be obtained by Chrysler itself.
               Relative to lead  time compatibility, UOP states that it could
provide catalysts by April 1974 if given an initial  commitment by September
1972 and a commitment to construct a catalyst manufacturing  facility by the
end of December 1972.  At this time,  UOP is only performing engineering
design, manufacturing process development,  and  planning work on  the plant.
               If UOP were to procure the catalyst substrate,  a substrate com-
mitment would be required by January 1973 with orders placed by May 1973.
               Matthey Bishop provided similar lead times to  Chrysler to
meet an April 1974  volume production date.  Chrysler is currently negoti-
ating with both of these vendors and reports are that UOP would obtain 50%
of the  Chrysler catalyst requirement and Matthey Bishop 25%  to 30%.  The
supplier for  the balance has not yet been determined.
               In September 1972,  Chrysler also entered into  an agreement
with the Ore and Chemical Corporation for the delivery  of 100, 000  troy
ounces of palladium from the Soviet Union.  Since Chrysler's  catalyst will
probably be a mixture of platinum as well as palladium, a commitment for
procurement of platinum is still required.
               It appears that Chrysler intends to manufacture the majority
of the  catalyst containers itself.  However, Arvin Industries,  the Walker
Manufacturing Company,  and the Hayes-Albion Corporation are potential
subcontractors to manufacture the container,  but at this time Chrysler has
made no commitments to any of them.
                                     16

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4.4           AMERICAN MOTORS CORPORATION
4.4.1         Production Schedules
              American Motors has been working to schedules based on
achievement of full production of 1975 model year  automobiles by August  1,
1974.  The schedules are influenced by American Motors  relatively small
size, which requires that it rely to a large degree on component and equip-
ment technology developed outside the company.   Its production program
timing schedule for the 1975 model year vehicle is shown  in Figure 5.
              American Motors 1975 model year cars will require changes to the
engine cylinder head, engine intake and exhaust manifolds,  and body  floor pans,
as well as the addition of a catalytic converter. Key points  to be noted  are:
         a.    Preliminary release of all  1975 engine changes is planned
              for November 1, 1972.
         b.    Detail drawings on critical long lead time items (e.g., the
              cylinder head design change) would  be released on March 1,
              1973.
         c.    EPA certification tests would begin on November  1,  1973.
         d.    Tool construction would be completed on March 1, 1974.
         e.    1975 engines would be installed in sales prototype vehicles
              (first build from production tool parts),  beginning March 1,
              1974.
4.4.?         Major Impact Factors
              Incorporation of the emission control system requires many
design changes to different areas of the automobile.  These  design  and  sub-
sequent manufacturing changes are major factors  in establishing the final
lead time requirement for  1975 model year production  development. The
changes anticipated in 1975 American  Motors cars involve the following
components and  subsystems:
         a.    A new cylinder head for the V-8 engine to reduce  exhaust
              valve leakage,  improve cooling capacity, and improve
              casting techniques.
         b.    Body and structural changes to accommodate the catalytic
              converter.
                                    17

-------
               Tooling and equipment (involving new machines, welders,
and assembly transfer stations) would have a major schedule impact if
American Motors had to revise its engine installation process.  Presently,
the engine  is installed from below after the body is completely assembled.
If a catalytic converter system of another design required that the engine be
installed from above, major changes in design and assembly would be
necessary.
               Experimental prototype testing is currently being conducted
on the emission control system mounted in test-bed vehicles.  To  date, this
program has not been successful  in demonstrating to American Motors  that
the system can meet Federal emission standards for 50,000 miles.  Cata-
lytic converter configuration changes emanating from this program may
have a serious impact on the design  of the  1975 model year automobile as
well as on  the  design of equipment and tooling.
4. 4. 3          Critical Lead Time Items
               The critical path lies with vendor lead time requirements for
catalytic converter production. (At  the time of the EPA Suspension Request
Hearings in April 1972, the critical  path was associated with the require-
ment  for new  cylinder heads; this is still considered  to be a serious timing
factor. )
               The anticipated changes required for or related to the Ameri-
can Motors 1975 emission control system, ranked in terms of critical lead
time, are as follows:
         Catalytic converter/new  cylinder head for the V-8 engine
         Body  and structure changes to accommodate catalytic converter
         New  carburetor
         New  intake manifold
         Breakerless ignition  system
American Motors is  carrying  two different catalytic converter designs at
this time,  and may use different converters  on different cars.

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ENGINEERING  /•
DEVELOPMENT/
PROGRAM    f—
                          CY 72                     CY 73                 CY 74
                iJiF|MiA|MiJiJiAiSiOiNiD|j|FiM|A|M|J|J|A|S|0|N|D|j|F|M|A|M|J|J|Ai
                 30         25         20         15         10          S          0
                                    MONTHS TO VEHICLE PRODUCTION

                                                             COMPLETE
                                                             1-1-7
                                                        -U74_V
PRODUCTION
ENGINEERING DESIGNS
                 PRELIMINARY RELEASE
                 ON ALL 1975 ENGINE
                 CHANGES 11-1-72^
     ENGINE CHANGES/
                                         FINAL REL. OF DETAIL
                                         DRAWINGS ON ENGINE CHGS.

                                      _V3"'"73        „ COMPLETE ALL
                                                        RELEASES 10-1-73
    MAJOR BODY PROGRAM
    APPROVED 5-1-72^

BODY CHANGES
                                            ALL BODY STRUCTURAL
                                            DETAIL DRAWINGS COMPLETE
                                            5-1-73^7        , ALL BODY RELEASES
                                                            COMPLETE 9-1.73
                           PURCHASE ORDER PLACED ON
                           LONG LEAD TOOLING 3-1-73
                                             A ALL STRUCTURAL
                                                DIE MODELS COMPLETE
                                                5-31-73
                                                                  I
      TOOL CONSTRUCTION
      (CYLINDER HEAD EQUIPMENT)
      INSTALLATION AND REARRANGEMENT
      IN AMC PLANT
VENDOR CATALYTIC CONVERTER.
DESIGN DEVELOPMENT.
TOOLING & FACILITIES
                                                                      VCOMPLETE
                                                                     —  3-1-74
                                                                               COMPLETE
                                                                               7-1-74
                                                                               V
                                    PACKAGE SIZE FINALIZED. 11-I-72
                                    V	
                                                                COMPLETE.  3-1-74
                                                                V
                               AMC COMMITMENT
                               TO VENDOR. 8-15-72
                                    START CERTIFICATION TESTINGV
                                                        11-1-73
                                                                 START SALES
                                                                       START VOLUME
                                                                       PRODUCTION
                                                                       8-1-74
                                                                 PROTOTYPE
                                                                 3-1-74   START
                                                                         PILOT
                                                                         5-1-74
           Figure 5.  American Motors  1975 Emission Control Program
                       Timing Study
                                            19

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4. 4. 4          Current and Pending Contractual Agreements
               A verbal commitment to one catalytic converter supplier for
a completely packaged  device was made in August 1972.   Neither the details
of the arrangements nor the name of the  supplier are available at this time.
It is expected that the verbal agreement will be bolstered by a formal con-
tract after design and delivery details  are reviewed and  agreed upon.  Talks
are continuing with potential suppliers and more than one contract may be
released by American Motors.
               From the timing chart shown in Figure 5,  purchase orders
were scheduled to be released in November  1972 for V-8 engine cylinder
block castings from General Motors and  for new machine, transfer,  and
assembly equipment for fabrication of  new cylinder heads.  Subsequently,
release should be given for the  purchase of carburetors.  Purchase orders
are also pending for other elements in the emission control system  such as
the ignition system and EGR valves.
5.             LEAD TIME SCHEDULES FOR CATALYST AND
               SUBSTRATE  MANUFACTURERS
               As noted previously,  all domestic first-choice 1975 emission
control systems incorporate an oxidation catalyst.  Therefore, a key element
in 1975 model year production lead  time  requirements is the ability to mass
produce the required catalysts in a  timely manner. Industry's status with
respect to this capability is discussed next.
5. 1            CATALYST MANUFACTURER  LEAD TIME SCHEDULES
               A summary of the production lead time schedules currently
proposed by representative oxidation catalyst  manufacturers is shown in
Figure 6.  As can be seen, all schedules are  structured to start full produc-
tion for 1975 model year requirements in the April to July 1974 time period.
Oxidation catalysts needed for preproduction stockpiling and/or vehicle
emission  certification testing, etc. , would be provided from units produced
                                     20

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              |J|A|
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CY71
S
                                   CY72
                                     I.J
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CY73
  JlAlSl
      CY74
|F[M|A|M|J|J|A|5|0|
ENGELHARD(1)

 • PLANT NO. 1



 • PLANT NO. 2


OXY-CATALYST
                 35
       30
                  25        20       15        10
                  MONTHS TO  VEHICLE PRODUCTION
                                                ui
             (2)
MATTHEY BISHOP
                (2)
W.R. GRACE11'(MONOLITH)
MONSANTO
           (2)
UNIVERSAL OIL PRODUCTS
                        RESEARCH, DESIGN, DEVELOPMENT
              lllMinihlllinh!!.!!  PROGRAM APPROVAL PERIOD (COMMITMENT AGREEMENTS, PRODUCT
                        SPECIFICATION DEFINITION, ETC.)
                        PLANT SITE SELECTION, DESIGN, CONSTRUCTION
                        EQUIPMENT DESIGN, CONSTRUCTION, DELIVERY, INSTALLATION
                      '  PLANT STARTUP, SHAKEDOWN
                     :•»  FULL PRODUCTION
              (1) INITIAL COMMITMENT RECEIVED FROM AUTOMOBILE MANUFACTURER
              (2) START DATE SELECTED BY CATALYST  MANUFACTURER
            Figure 6.  Production Lead Time Schedule for Catalyst Manufacturers

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during the plant startup and  shakedown period (January to July 1974) or
from separate pilot and batch processing lines.   Where it is necessary to
use catalysts  not produced with production manufacturing equipment and
processes in certification test vehicles,  the issue as to whether or not these
catalysts are  the same "in all material respects" as production units may
arise.  Due to the basic nature of the substrates and deposited catalytic
materials, it  may be difficult to verify that catalyst loading,  uniformity of
loading, and substrate physical characteristics  are  indeed representative
of quantity production units.
               As of the time of data acquisition (August to October 1972),
there was considerable variability with regard to financial commitments made
by the automobile companies and  the amount of  in-house funds being expended
by the various catalyst manufacturers to retain  a competitive  position for
potential 1975 catalyst requirements.  In all cases, there was  reasonable con-
fidence that if contract negotiations pending with automobile  manufacturers
would  shortly result in firm production orders,  the  schedules as shown
could be met.
5. 2            SUBSTRATE  MANUFACTURER LEAD TIME
               SCHEDULES
               Corresponding production lead time schedules currently
proposed by representative  substrate manufacturers are  summarized in
Figure  7.  As was  the  case with catalyst lead time schedules (Figure 6), full
production of  substrates is planned for the April to July 1974 time period.
Again,  substrate units required for preproduction stockpiling  and/or  vehicle
certification testing, etc. , would be provided from units produced during
the plant startup and shakedown period (January to July 1974)  or from
separate pilot and batch processing lines.  Whether or not these proposed
production schedules can or will in fact be implemented is of course dependent
upon timely receipt of firm production contracts from the automobile
manufacturers.
                                     22

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                           CY71

                       |J|A|S|O|N|D
                                    CY72

                           J|F|M|A|M|J|J|A|S;
                                           |O|N|D|J[F|M|A|M|J|J|A|S|O|N|D
CY73

  J|A|S|
      CY74
|F|M|A|M|J|J
|A|S|O|
OJ
                 35
AMERICAN LAVA'1'

 • MODULE NO. 1   <~
          • MODULE NO. 2
          • MODULES
           NOS. 3,4
CORNING {2)


KAISER(2)


REYNOLDS(2)
                                    30
                                     25        20        15        10
                                     MONTHS TO VEHICLE PRODUCTION
                                RESEARCH, DESIGN, DEVELOPMENT
                        UWINIIiiiillllllHl PROGRAM APPROVAL PERIOD (COMMITMENT AGREEMENTS,  PRODUCT
                                 SPECIFICATION DEFINITION. ETC.)
                                PLANT SITE SELECTION, DESIGN, CONSTRUCTION
                                EQUIPMENT DESIGN, CONSTRUCTION, DELIVERY, INSTALLATION
                                WAREHOUSING FACILITIES
                                PLANT STARTUP, SHAKEDOWN
                                FULL PRODUCTION
                       (1) INITIAL  COMMITMENT RECEIVED FROM FORD/ENGELHARD

                       (2)START DATE SELECTED BY SUBSTRATE MANUFACTURER
                   Figure 7.  Production Lead Time Schedule for Substrate Manufacturers

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5. 3            MAJOR SCHEDULE IMPACT FACTORS
5.3,1          Plant Design and Construction
               In every case, the critical or pacing item in the overall pro-
duction lead time schedule  is the time required for design of the production
facilities,  site selection, and construction of the facility or plant.  Site
selection and preliminary facility design activities, at a  level sufficient to
support the lead time  schedules in Figures 6 and 7, have been or are under-
way.  In some  cases,  these activities have been covered by contractual
guarantees (e.g., Ford/Engelhard/American Lava agreements),  while in
other cases they have been supported by in-house company funds.   Actual
construction of the production facility will not be initiated by either the catalyst
or substrate  manufacturers until they receive a firm production order con-
tract or similar financial guarantee.
5.3.2          Equipment and Materials Procurement
               Raw materials for substrates and wash coats  are considered
available in either  abundant or  necessary quantities and do not materially
impact  the lead time schedule.
               Platinum-group  metals used  as  the catalytic agent are
considered by  the catalyst manufacturers to be available within the scheduled
lead time for catalysts.   The acquisition of these platinum-group metals is
considered by most catalyst suppliers to be the province of the automobile
manufacturers; they are  currently negotiating with suppliers  in South Africa
and with the Soviet Union.
               The necessary processing  equipment and tools  required for
both substrate  and  catalyst manufacturing facilities are  largely conventional
in nature and do not represent limiting lead time items.
                                     24

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5.3.3         Plant Startup
              Operation of either the substrate or catalyst manufacturing
facilities is considered to be simple compared with the operation of a
chemical or petro-chemical plant.  Allowances of 2 to 6 months  are included
in the schedules of Figures 6 and 7.
5.3.4         Quality Control
              In most cases, product specifications have not as yet been
specifically delineated and definitive quality control measures have not been
completely spelled out.  Items of concern include porosity control, wash
coat control, noble metal control,  substrate breaking and chipping (monoliths),
etc.
              It is noted that the mass production of these types of catalysts
has never been accomplished by any company;  however, the  catalyst  firms
believe that related production and quality control techniques (chemical  and
petro-chemical  industries) provide  a firm basis for assurance that quality
control requirements will not adversely impact their proposed production
lead time schedules.
5. 3. 5         Pilot Plants
              All catalyst manufacturers contacted, except Grace, the  Gulf
Oil Company, and the Monsanto Company, have some form of pilot processing
production plant in operation for purposes of manufacturing process optimi-
zation.  Monsanto has made no decision on the use of a pilot plant, while
Grace has  decided that there is insufficient time  to do  so and still maintain
its projected lead time schedule.  Such pilot plants do  not directly impact
the lead time schedules  as shown, but they do provide  a means for providing
quantities of catalyst units needed for preproduction inventory buildup and
certification testing,  etc., during the period prior to full operation of the
                                     25

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completed catalyst production facilities.  Where pilot plants are not available,
such required quantities would have to be processed in batch production
facilities.
              In the case of substrate manufacturers (American Lava,
Corning Glass Works, the Kaiser Aluminum and Chemical Corporation,
and the Reynolds Metals Company), all have current  pilot production
capability.
5.3.6       s  Cost
              Available estimates of capital cost  requirements per individual
supplier are in the range of $4 to $5 million for substrate production facilities
and $4 to  $15 million for  catalyst production facilities,  depending upon the
selected production capacity.  At these cost levels, the substrate and
catalyst manufacturers will not commit venture capital without a firm
production contract or other form of guarantee. It is this fact which presently
strongly impacts the projected schedules of Figures 6 and 7,  since the
required production facility construction will not commence until  such
agreements are concluded.
5.4           SCHEDULE COMPRESSION POTENTIAL AND  EFFECTS
              With regard to the potential for  compressing or shortening the
production lead time schedules shown above, the substrate manufacturers
have stated,  in general, that no appreciable compression can be made at the
present level of schedule definition (Figure 7).
              In the finished catalyst area, there  is  some hope of minor
schedule compressions, as follows:
         a.    Grace -- No schedule compression for monoliths; 3 to  6 months
              schedule reduction for  pellet catalysts at a 1 0 to 15 cents per
              pound cost increase (due to premium pay and increased capital
              cost).
        b.    Matthey Bishop -- One to 2 months  schedule  compression for
              building construction with overtime work (at  a  negligible
              product cost increase).-
                                    26

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         c.    Monsanto -- Some reduction in plant construction and
              equipment procurement time.   The magnitude of schedule
              compression and related cost effects are not estimatable at
              this time.
         d.    Oxy-Catalyst -- Approximately 3 months schedule compression
              at a 10% cost increase due to overtime pay.
         e.    UOP -- One to 1-1/2 months  reduction in facilities construction.
              The resulting cost penalty is  not known.
5. 5           CURRENT AND PENDING CONTRACT AGREEMENTS
              At the time of this investigation (August to October 1972), the
status of contractual agreements  among the  automobile manufacturers and
the catalyst and substrate manufacturers was  one  of uncertainty and change
because during this period apparently serious negotiations were underway
among most of the  major domestic automobile manufacturers and the various
potential catalyst manufacturers.  The status  reported as of the time of
visits made to the various companies involved was previously discussed in
Sections 4. 1.4,  4.2.4,  4.3.4, and 4.4.4 and is  summarized in Table 1.
6.            LEAD TIME SCHEDULES FOR  AUTOMOBILE
              COMPONENT MANUFACTURERS
              A large number of manufacturers normally supply
"conventional" components to the automobile manufacturers.  Their products
include body stampings, frames,  manual transmissions,  carburetors,
exhaust systems, wheels and brake parts, valves, window assemblies, metal
trims, fans,  ferrous castings, etc.  Their lead  time requirements," even for
new component designs, are generally less than 20 months and  therefore
are well within the remaining  time frame  for  1975 model year production.
              An exception could occur, however, if a given company were
required to build a new facility for achieving a significantly higher output
capacity.  No  evidence  of this requirement has been indicated to date.
                                    27

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7.             LEAD TIME SCHEDULES FOR PRODUCTION
               EQUIPMENT MANUFACTURERS
               Various items of production equipment are essential to and
inherent in modern automobile  mass  production facilities.  Principal equip-
ment items include automatic transfer lines (for automatic machining and
assembly operations),  cold stamping presses (for bodies and frames), and
welders.
               Although complex automatic transfer lines  can require lead
times (as high as 30 months) which are inconsistent with the remaining time
frame for  1975 model year production,  there is no evidence that such equip-
ment,  if required, was not ordered in a timely manner.  Lead times  for cold
stamping presses and standard resistance welders (if required) imply they
could be ordered in 1973 and be obtained in  adequate time for 1975 model
year production.
               In the  special case of electron beam welders planned for high
volume production edge-welding of the General Motors pelletized catalytic
converter  container,  Hamilton  Standard is supplying six production welders
to AC Spark Plug on a schedule  consistent with meeting the General Motors
1975 production requirements.
8.             NOBLE  METAL PRODUCTION AND USAGE
               Currently the Soviet Union is the world's largest producer of
platinum-group metals.  The Republic of South Africa is by far the most
important manufacturer of platinum-group metals in the free world (the
United States  production amounts to  less than 1% of the total world production).
Since future platinum-group metal sales by  the Soviet Union cannot be
accurately predicted,  it is likely that primarily South African platinum-group
metals will be required to satisfy the projected needs of the automotive
industry in the United States in the post-1974 time period.
                                    28

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                                Table 1.   Current and Pending Contract Agreements--
                                           Oxidation Catalysts and Substrates
~^___^ Domestic Auto
*"— *-^^^ Company
Catalyst or ^"~"~--~~^__^^
Substrate Supplier • — ^
Engelhard
Grace
Matthey Bishop*
Monsanto
Oxy-Catalyst
UOP
American Lava
Reynolds
General Motors

$630. 000 engin-
eering commit-
ment
Bidding on 25%
of 1 975 requi re-
ments

Bid on 1975
requi re me nts
Negotiating
Negotiating

Bid on pellet re-
quirements of
potential catalyst
suppliers (Davis,
Oxy-Catalyst , Mon-
santo)
Ford
-60°; of 1975-re-
quirements (up to
3. 6 million units/year)
Current commitment
S4. 9 mil lion
Could increase to $14
million by April 1 9~4

Negotiating for
-30% of 1975 re-
quirement (-1.8
million units/year


•^egot iatini;
$300. QUO capital guaran-
tee (scale-up of facility
for portion of 19~5 re-
qui remrnt s. Acreomont
lor further scale -up in
1973; negotiating pro-
duction orders.

Chrysle r


Negotiating fo r
25% to 30% of
1975 requirement


Engineering com-
mitment (facility
design). Expect
production con-
tract for"sub-
st antia!" part of
1U75 reauirements


American Motors








ISJ
           *May also bo asked to supply all of Inte r national Harvester requirements.

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              Preliminary information relative to the projected production
of platinum-group metals indicates that the  combined capacity of the South
African mining firms may be adequate to supply automotive catalyst needs.
However, these capacities can only be achieved if contracts are signed in the
near future between the automobile manufacturers and the mining companies.
Without such commitments,  it is  unlikely that the  mining companies would
proceed with their projected expansion programs because of the large capital
investment required.
              Accurate evaluation of the platinum-group metal supply and
demand balance is currently very difficult to make,  because several factors
related to automotive catalysts  are still unresolved.  Preliminary analysis
indicates that the platinum-group metal supply-demand balance is determined
by a number of factors among which are:  the platinum-group  metal loading
requirement of the automotive catalyst, the number of catalysts required on
the various vehicle classes, the catalyst replacement interval, the mining
industry capacity, and the degree of platinum-group metal recovery from
spent catalysts.  A thorough study of these parameters is urgently needed in
order to provide all the data required for a  complete and meaningful assess-
ment of platinum-group metal availability and demand  issues.
9.            LEAD TIME SCHEDULE FOR A GOVERNMENT
              AUTOMOTIVE PROCUREMENT AGENCY
              The lead times for procuring government military vehicles
are considerably less than the production lead time associated with new
model  commercial passenger automobiles (e.g., 11 to  14 months for a
jeep versus about  25 to 28 months for a new model year light-duty car).
              The major influencing factors are the pre-existing develop-
ment and tooling status at the time of procurement decision and the low
production rate  of government vehicles, one to two orders of magnitude less
than passenger car rates.  At this low rate,  it apparently is not economical
for a producer to make his own parts,  so they are purchased from
                                     30

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manufacturers who have equipment and facilities available, thus eliminating
the time to set up parts production lines.
               Other factors impacting shorter lead times  include (a) tooling
is available in some cases and furnished by the government to the producer,
(b) the design may be known to the producer and he may have  had production
experience with it, (c) the government normally will not let a contract to a
bidder who requires major equipment or facilities, and (d) the government
establishes a slow buildup to the full production rate.
10.            LEAD TIME SCHEDULES FOR NONAUTOMOTIVE
               INDUSTRY MANUFACTURERS
               In general, nonautomotive production lead times  are similar
to automotive production  lead times (24-28 months) only when a completely
new product  design or a change of major complexity is involved.  For
example,  a new self-cleaning oven required a 24-month lead time, a com-
pletely new refrigerator design required a 30-month lead time,  and an engine
model year change for an outboard motor with a new mechanical starter
required a 30-month lead time.
               Normal model change lead times vary, of course, depending
oil the type and complexity of change being made.  In the case of refrigerators,
for example,  the changes are usually related to styling  only and  the relative
simplicity of design requires only about 6 months  of lead time.
11.            ASSESSMENT OF AUTOMOBILE MANUFACTURERS'
               PRODUCTION LEAD TIME
11. 1           DEGREE OF  INDUSTRY SCHEDULE CONSISTENCY
               The overall production lead time schedules  are summarized
for the major domestic automobile manufacturers in Figure 8.  As can be
seen, all  company schedules are  in reasonable agreement  with one another
and with the  historical model year lead time requirement for  major changes
of 24 to 28 months.  Their consistency with one another is not surprising in
view of the fact that all manufacturers were faced with the same critical lead
                                    31

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1971 1972
J F V

CM
FORD
CHRYSLER
AMERICAN
MOTORS
ENGELHARD
PLANT No. 1
ENGELHARD
PLANT No. 2
AMERICAN
LAVA
UOP
W. R. GRACE
AMJJASONDJFMAMJJASO
A

A
1
A
1
A

C
1
C
1
C
1
C
C
C


N D
•>\
Ax
\ \ ^
X,

vx
, \ X
\
. \ s-
\ " .. '•
N,
^

X
. \


v\ '

'N •

\ x
-NX
\ -.
^;<
; X
1 973 1 974
JFMAMJJ A S|Q NDJFMAMJJ
B
1
B

B

B

0 FULL COMMITMENT NEEDED FRC
AUTOMOBILE MANUFACTURER TC
-~ CATALYST/SUBSTRATE SUPPLIER
-*" D

D

D
1
D
1

                                                              _L
            40
                      35
30        25        20         15        10

       MONTHS TO VEHICLE PRODUCTION
A PRODUCTION DESIGN OR PRODUCTION PROGRAM APPROVAL
B VEHICLE JOB No. 1
C PARTIAL COMMITMENT FROM AUTOMOBILE MANUFACTURER TO
  CATALYST/SUBSTRATE SUPPLIER
D FULL PRODUCTION
                  Figure 8.  Overall Production Lead Time Schedules

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time component, the catalytic converter, and were dealing with the same
types of suppliers for  catalysts  and substrates.  Their experience with
historical production lead time precedents for major changes was undoubtedly
the major factor which led to the Production Approval Milestone at the dates
shown.  Of course, all companies  stress that their present schedules  are
optimistic and may not be met,  for the reason that they were required to
commit resources to a given unproven emission control system design in
order to achieve full mass production of 1975 model year  automobiles by
August  1974,
              Also shown in the figure are similar current production lead
time schedules for representative  substrate and catalyst manufacturers.
Except for Engelhard, which had the benefit of early commitments by  Ford,
their  schedules  are also consistent with one another.  Again,  this consistency
is really related to ihe time  required  to design and construct a production
facility, and  the same factors are  influencing each individual schedule.
              Finally, the catalyst,  substrate, and automobile manufacturers'
overall  lead  time schedules  arc consistent when compared with each other.
This consistency prevails because  the automobile manufacturers' schedules
are, in  turn, based on the catalyst manufacturers' schedules as shown.
11.2          POTENTIAL  FOR INDUSTRY SCHEDULE
              COMPRESSION
              A reduction in the normal scheduled time for a complete
automobile development cycle is possible through three approaches: . increase
the degree of overlap between various phases in engineering development
and manufacturing development,  extend the use of overtime  on a given work
shift, or increase the  number of work shifts to a maximum of three per day.
However,  the greater  the amount of scheduled phase overlaps, the greater
the chance for making costly errors through premature decisions.  Generally
a 10% to 15% compression is considered to be  the maximum feasible with
acceptable increase in unit cost. Any additional compression is bought at
excessively large cost increases and at some point no further compression
                                    33

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is possible even with costs discounted as a judgment factor.  The skilled
labor market cannot suddenly be increased to meet a multitude of orders.
               Schedule compression is primarily  in evidence for only one
area--the  production of oxidation catalysts.  The pacing item is the construc-
tion of new facilities; this is  where the 10% to  15% schedule compression
could be obtained.   Equipment requirements for these facilities are generally
of a standardized design not  requiring long lead times.
11.3           INDUSTRY CAPACITY TO MEET HIGH PRODUCTION
               VOLUME
               The impact of raw material reserves and production capability
is noted in the manufacture of catalytic converters.  Alumina for the sub-
strate and wash coat is in plentiful supply, but the  supply of platinum-group
metals  for the catalyst is an  issue that is not completely settled at this time.
It appears that the  production capacity of the South African mining companies
can be sufficiently  increased, providing  that they sign contracts in the near
future with the automobile manufacturers.
               There are three forms of processed materials that pose a
problem for  industry capability.  First,  there is the production capacity
needed  to form catalyst substrates and apply the wash coat and catalyst
material.  Second,  there is the production capability for rolled  stainless
steel for use in catalytic converter canisters,  exhaust systems,  and thermal
reactor liners, etc.  Third,  there is the capability of foundries to produce
sufficient numbers of castings for full-size thermal reactors, if they were
to be eventually used.
               As of the time of data  acquisition (August to October 1972),
there was  a noted variability  in schedule status for the different catalyst and
substrate manufacturers. This variability was a result of  both the status of
financial commitments made  by the automobile companies and the amount of
funds expended by catalyst and  substrate manufacturers themselves in order
to be able  to compete for potential 1975/76 catalyst requirements.  In all
cases, there was reasonable  confidence on the part of substrate and catalyst
                                     34

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manufacturers that if contract negotiations pending with automobile manu-
facturers resulted in firm production orders in the November to December
1972 time period,  the currently projected schedules for quantity production
of oxidation catalysts could be met.
               In contrast,  the automobile manufacturers have expressed
some doubt concerning the ability of the substrate and catalyst manufacturers
to meet production demands.  Much of this doubt centers on the fact that
catalysts of the automotive type  have never been mass produced in the quanti-
ties required by the automobile industry.
               With regard to stainless steel capacity,  it appears that raw
material availability is not a problem.  However, material processing
capacity is a problem but it  can  be  resolved by the timely ordering  of addi-
tional equipment needed.  The Lact that the automotive firms  have not defi-
nitely decided on the type of stainless steel required is a problem that will
become more significant as  the end of 1972 approaches.   Commitments must
be made in the November to December 1972 period by the automotive firms
if 1975 model year requirements for stainless steel are  to be met.
               Casting capacity for  the simpler,  partial thermal reactor
currently programmed for use in 1975 model year vehicles is presently
adequately accounted for in 1975 model year production  schedules.  Casting
capacity requirements for the  larger and more complex  full-size thermal
reactors have not been well defined because this  system has not been pursued
as a first-choice approach and is not completely developed.   Therefore,  long
lead time  production equipment has not been-ordered.  Ford states  that the
time is now past the critical point for them to order arc and holding furnaces
required to manufacture full-size thermal reactors for the  1975 model year.
The foundry industry (exclusive of automobile company foundries) indicates
that if additional foundry capacity on its part is required, 36 months are
needed to  achieve  full production volume.
               Fabricated products  have posed some problems, but  it appears
that these will be resolved.  Fabrication of the catalytic converter container
and assembly of the unit should be  handled adequately by a division of work
                                    35

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 among the automobile manufacturers, the catalyst manufacturers,  and inde-
 pendent firms such as Arvin Industries  and Walker which have long experi-
 ence in the fabrication of exhaust systems.
               No evidence of problems in the production capacity for
 traditional components has appeared, although new fabrication and assembly
 processes may be required if double-wall exhaust pipes  become necessary.
 11.4          TECHNOLOGICAL IMPLICATIONS OF
               ALTERNATIVE PLANS
              Were Federal regulations to be relaxed,  a number of
alternative plans could be  considered by the automobile manufacturers in
lieu of meeting the Federal emission standards with 1975 model year auto-
mobiles in full production  by August  1,  1974.  Consideration of these other
plans, of  course,  depends upon judgments leading to decisions that would
have to be made by the Federal government.
              If the Federal government were to grant a  1-year extension
to automobile manufacturers for  meeting the  1975 emission standards,  the
risk of introducing unproven designs  for the emission control system would
be reduced.  Prototype testing could  be  continued for a longer period to allow
for development of higher  performance and more reliable designs,  and the
overlap between these tests and the manufacturing design phases could be
lessened to reduce the risk of making design  decisions based on preliminary
information.  The impact on the  rest of  the industry, of course, would be a
deferment in the purchase of equipment, tooling,  components, and  raw
materials.  Most affected  would  be the catalyst industry,  which  is just starting
to implement facilities for the mass production of substrates, catalysts, and
container  fabrication and packaging.
              Furthermore, were a  one-year suspension to be granted, the
Federal government must  issue a set of interim standards for exhaust emis-
sions. If these standards  could be met by the catalytic converter systems
                                    36

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presently developed or under development (either by virtue of raising the
emission standards levels or by revising the replacement intervals for
converters, etc.),  then the impact on the industry noted above could be
averted.
              Alternatively, the use of full-size thermal reactors is not
considered a viable option for 1975 model year automobiles, even if interim
emission standards could be met by them.  This is because the automobile
companies have not been developing the thermal reactor as a first-choice
system and have not, therefore, proceeded to order the necessary long  lead
time production equipment, as they have been doing for catalytic converter
systems.
              Less effective partial thermal reactors, smaller in volume and
less complex than full-size thermal reactors, are currently programmed
for use in 1975 emission control systems.  These could be used without
catalytic converters but the resulting emission reduction capability is at
present not well defined and could vary among the different automobile manu-
facturers, according to individual design details.  Some partial thermal
reactors resemble a slightly oversize  standard exhaust manifold while others
resemble the full-size  reactor in outward appearance,  while having a volume
approximately 2/3  less.  At present  such partial reactors  are  designed
primarily to oxidize HC and CO during the  cold start  period and to aid in
warming up the  catalytic converter.
              If the interim standards would simply permit the continued pro-
duction and  sales of 1974  model year type automobiles for  another  production
year, the manufacturers would have to be apprised of this  situation prior to
January  1,  1974.  There still would be a lead time  consideration with the
extended production of  the 1974 model year, since orders must be  placed in
advance of August 1974 production in order to continue supplies of raw
materials and components and to replace worn out tooling.  Practically
speaking, however, the automobile manufacturers require a decision of this
nature which is consistent with catalyst final commitment date requirements
in order to avoid premature or unnecessary expenditures.
                                    37

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              Without a 1-year  suspension of the emission standards, the
automobile manufacturers might consider continuing the production of 1974
model year cars throughout  calendar  year  1974,  subject to approval by the
Federal government.  This would provide more development and certification
test time for the 1975 emission control system.  From a competitive market-
ing standpoint, of course,  this action might create a reduction in  sales for
those manufacturers requiring the longest delay in the eventual introduction
of 1975 model year  cars.
11.5         PROGNOSIS FOR 1975/76 LEAD TIME
              REQUIREMENTS
              At present, all major domestic  automobile manufacturers are
proceeding on a high risk basis with the necessary steps  to ensure that the
1975 model year cars will be in  lull mass production by August 1974. Orders
have been placed for long lead time equipment  for all well-defined car sys-
tems;  component orders will follow shortly.
              Design efforts are still in progress  on components and systems
not fully defined.  These relate to the catalytic converter and its impact on
other areas of the vehicle  such as the floor  pan and dashboard.  Decisions
have been delayed in order to take full advantage of data from the  research
prototype test car programs.  These tests  are  expected to continue into  1973
since the automobile manufacturers maintain they have not been able to find
a case of an emission control system that meets  government regulations.
With regard to catalytic  converters, some  automobile manufacturers must
still decide on pellet versus  monolithic substrates and promoted base metal
versus platinum-group metal catalysts.
              The delays  in final design decisions  have also led to delays
in commitments to critical suppliers.  Some limited  commitments have  been
made to  catalyst firms.  These commitments cover only engineering and
design for new or expanded facilities.  Except for the Ford contract with
Engelhard, no full commitments have been made  that would entail actual
construction and ordering of equipment.  Based on  the lead time schedule
                                    38

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projections made by catalyst and substrate manufacturers in the August to
October 1972 time period, quantity production of oxidation catalysts for 1975
model year automobiles is possible if production order commitments or other
acceptable venture capital guarantee  arrangements were made by the
automobile manufacturers in the November to December 1972 period.
              Current schedules have been compressed slightly from those
previously cited by the automobile manufacturers.  Additional compression
is unlikely except for a few isolated cases and,  in  general, would represent
cost increases to the end product.  In general,  all the  automobile manufac-
turers show good schedule consistency when compared with each other and
when compared with their suppliers,  particularly those companies  supplying
catalysts and catalyst substrates.
              While  staged commitments have  proven successful in providing
for initial work efforts, the time is at hand for  making full commitments to
all critical suppliers.  These include catalyst and  catalyst substrate manu-
facturers, stainless steel manufacturers, and producer/refiners of platinum-
group metals.  Sometime in the period of November  to December 1972 the
automobile manufacturers will have to conclude such arrangements in order
to meet the lead time requirements for 1975 model year cars that incorporate
the latest emission control system designs.
                                    39

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TECHNICAL REPORT DATA
(Please read Instructions on the reverse before completing)
1. REPORT NO. 2.
EPA-460/3-74-026-a
4. TITLE AND SUBTITLE
Assessment of Domestic Automotive Industry
Production Lead Time gf 1975/76 Model year
Volume I: Executive Summary
7. AUTHOR(S)
D.E. Lapedes, M.G. Hinton, T. Tura, and J. Meltzt
9. PERFORMING ORGANIZATION NAME AND ADDRESS
Aerospace Corp.
El Segundo, Calif
12. SPONSORING AGENCY NAME AND ADDRESS
Environmental Protection Agency
Emission Control Technology Division
Ann Arbor, Michigan 48105
15. SUPPLEMENTARY NOTES
3. RECIPIENT'S ACCESSION-NO.
5. REPORT DATE
Dec. 1972
6. PERFORMING ORGANIZATION CODE
8. PERFORMING ORGANIZATION REPORT NO.
;r ATR-73(7321)-1
10. PROGRAM ELEMENT NO.
11. CONTRACT/GRANT NO.
68-01-0417
13. TYPE Of REPORT AND PERIOD COVERED
Final
14. SPONSORING AGENCY CODE

16. ABSTRACT
A survey and analysis of the factors involved in bringing automobiles into
the market place with emphasis on production engineering, prototype testing
and tooling for production of the automobile and the oxidizing catalyst.
17. KEY WORDS AND DOCUMENT ANALYSIS
a. DESCRIPTORS b.lDENTIFI
Automobile
Manufacturing
Lead-Time
Catalysts
Production tools
18. DISTRIBUTION STATEMENT 19. SECURI
„ ., „ , . . , Uncla
Ro 1 pme Unlimited 	
I\l,i(_a^c U1U.J.1U.I.1.CU 20. SECURI
Uncla
ERS/OPEN ENDED TERMS c. COSATI Held/Croup

rY CLASS (This Report) 21. NO. OF PAGES
ssified 51
PY CLASS (This page) 22. PRICE
ssified
EPA Form 2220-1 (9-73)
                                                              40

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