You read that right. There’s profit in steel wheels – if you offer a wheel that looks like chrome but is priced like steel.
Over the last several years, you’ve probably noticed a few OE wheels that were basically steel but had a chrome-plated ‘skin’ applied over the base. Most were simple in design and heavy, especially compared to aluminum. An example would be the late 1980s and early 1990s F-150 truck wheels (pictured below).
Traditionally, cast aluminum styling has driven the OE market. The 20- and 22-inch aluminum wheels offered at OE have been proof. That is, until now.
In recent years, the Wheels Task Force of the American Iron and Steel Institute (www.autosteel.org) has been quietly developing technologies and working with several wheel manufacturers, such as Accuride, ArvinMeritor and Hayes-Lemmerz, to produce steel-alloy wheels. Using flow forming, they are able to reduce weight over traditional steel wheels and, therefore, offer flexibility. That means a designer can create an appealing wheel style that compliments the vehicle, not just holds the tire.
On top of weight savings – which we know lowers unsprung weight and increases fuel economy – cost savings, too, are tremendous. Keep in mind that two forces are joining together: the base wheel manufacturer and the trim or cladding manufacturer. Right now, this technology has been developed and implemented for OE use, but the potential for aftermarket use could be on the horizon.
Manufacturers can produce various diameters, widths and offsets in an array of styles. For instance, look at the Chevy Malibu and Dodge Ram 2500/3500 wheel pictured on the next page.
The Malibu requires a high positive offset and the Dodge Ram a standard offset, along with high load capacity.
Now for the really neat part. You can conceivably take the same base wheel for each of these two wheels and apply a different trim to produce a totally different style. The two pieces together create a complete system, each designed for the other, and very tight tolerances are used to mate them.
Initial tooling cost is pretty high (up to $500,000 per size/bolt pattern), but the piece cost is low over the life of the tooling – which can be seven to 10 years with proper maintenance.
And, cost savings enter the picture when base wheels are used with multiple trim styles. An aftermarket company using smaller presses and tools could trim this number substantially. The base wheel style can be offered in a powdercoat version, along with the chrome trim version, to drive the piece cost down further.
If you think this isn’t something an aftermarket consumer would want, consider this: These new styled steel wheels are being marketed to consumers as upgrades to base powdercoated aluminum wheels. Case in point: the last generation Ford Explorer. The Eddie Bauer edition sported the styled steel wheels over the base aluminum.
Overall increase in profit is $30-$50 per wheel. How is that possible? Because, according to some studies, consumers perceive more value in steel.
Other benefits: the trim is chrome-plated, stainless steel in many cases. One example is the Duraclad from McKechnie Vehicle Components (www.mvcusa.com). This nearly eliminates the potential for corrosion that can occur with a chrome-plated aluminum wheel. Take another look at the F-150 wheel and cladding. This was a product produced by Lacks Enterprises (www.lacksenterprises.com). After 15 years of abuse on the roads, these wheels still look like new. That’s a pretty good testament to how well the product holds up.
And, styled steel wheels won’t peel or rust, thanks to a three-layer, high-impact composite. That makes them even more appealing. Vehicles equipped with chrome-clad technology include the Dodge Ram 1500, Chrysler PT Cruiser, Jeep Grand Cherokee Limited and Overland, Chrysler Concorde, Jeep Liberty, Mercury Sable, Pontiac Grand Am and Lincoln Town Car Limited Edition, among others.
Why wouldn’t large wholesale and retail companies put this technology and profit potential to good use? Seems like a no-brainer.
If you’re interested in learning more, contact the American Iron and Steel Institute or the companies mentioned in this article and see how the old dog has learned some new tricks.
