Ford Finds Platinum Substitute; Savings on Autos Expected
Ford Motor Co., in a move that could mean major cost savings, said today that it has developed a substitute for precious platinum in catalytic converters used to clear vehicle emissions.
Ford Chairman Donald Petersen, announcing the development in a speech in Pittsburgh, said the substitute is just as effective as platinum and is significantly cheaper.
A Ford spokesman refused to identify the substitute, but spokesman Bill Peacock said the auto maker will realize a substantial saving per car because of the use of the substitute.
$50 Per Car
A spokeswoman for the U.S. Environmental Protection Agency said catalytic converter systems cost auto makers between $375 and $500 per vehicle. Of that amount, EPA researchers estimated that $50 is for platinum.
This means that Ford uses an estimated $175 million in platinum in the converters installed on 3.5 million cars and trucks. Ford makes 500,000 trucks that do not require catalytic converters, a Ford spokesman said.
Platinum futures tumbled on the news. The January contract slumped $25 an ounce to $579.50 on the New York Mercantile Exchange in a general liquidation caused by assessments that the new technology will slash consumption of the metal.
In London, platinum led other precious metals lower, commodity traders said. Platinum was fixed there at $579.50, down sharply from its morning settlement price of $599.75.
The platinum-free catalytic converters are being installed first on 40,000 to 50,000 1989 Ford Thunderbird and Cougar models that will be sold in California, Peacock said.
Auto makers have tried for years to find a substitute for platinum, which is mainly produced by South Africa, the Soviet Union and Canada. The precious metal, generally used in combination with rhodium, palladium or both, reacts with emissions inside the catalytic converter to change them into safe levels of pollutants.
An EPA spokeswoman said the agency does not know what material Ford will use in place of platinum. “If they have requested that the information be kept confidential, we will honor that request,” she said.
