MARKETS
Auto Makers Swing to New Coolants Decision of Ford and American Motors to use extended-life antifreeze spurs interest in new coolant concepts Ford and American Motors have decided to climb on the extended-life antifreeze bandwagon (C&EN, Sept. 4, page 21). American Motors' choice, Dowgard Full-Fill coolant, will be factory installed in all 1962 models. Ford will equip its line with a long-life product manufactured to Ford specifications by suppliers. These moves should stir up more consumer interest in the engine coolants introduced last year (C&EN, April 25, 1960, page 4 2 ) . It is still too early to tell to what extent the U.S. consumer eventually will buy the longlife coolant concept or by how much the newer products will affect consumption of ethylene glycol. Last season, Dow's Dowgard, Du Pont's Telar, and other extended-life products won between 3 and 5% of the 110-million-gallon market for ethylene glycol antifreeze. With continued promotion of the new products planned for this year, the products should increase their share of the market. Even though a lot of motorists don't drain their radiators every year anyway, increased sales of long-life products should tend to slightly reduce total consumption of glycol coolants. Other factors working against the coolant market are the appearance of smaller or air cooled engines in some cars. On the bright side, on the other hand, total registration of autos should continue to rise. The result, for glycol producers, is a near standoff. Union Carbide, for one, predicts that the glycol coolant market will grow during the near future, but at a less rapid rate than the number of autos on the road. Unsettled State. The glycol coolant business is clearly in an unsettled state and probably will remain that way for a while. Three of the major producers—Du Pont, Dow, and Union Carbide—each have a different opinion on what makes the best auto coolant. Dow, the first firm to publically announce a coolant designed for yearround use, stresses that Dowgard is a
complete cooling system fluid rather than an antifreeze. Dowgard contains ethylene glycol, an inhibitor system, and deionized water. The motorist adds nothing to his radiator but Dowgard. For maximum protection, the company recommends that Dowgard be changed once a year. Critics of the Dowgard concept feel that regular tap water is adequate in an extended-life coolant. Further, they believe that the Dowgard user is at a disadvantage because he should not use tap water or regular antifreeze for emergency additions. This season, Dow plans to continue the strong Dowgard promotion program it kicked off last year. One of the bugs in last season's marketing of extended-life coolants was a good deal of confusion at the consumer level. To help clear up this confusion, Dow
plans to use a fleet of station wagon laboratories which will call on car dealers and leading service station operators. Dow, meanwhile, calls the decisions of American Motors and Ford "recognition" of its Dowgard concept. Myron Frank, manager of automotive chemicals sales, says Dow expects increased automobile production, greater use of long-life coolants by motorists, and the development of new markets in the South and Southwest, "where a completely formulated coolant offers advantages, " will more than offset any shrinkage of the present market for glycol-based materials caused by advent of the new coolants. Mr. Frank also sees a sizable potential market in car owners who now fail to drain shortlife antifreezes. Aggressive Competition.
D u Pont's
Ethylene Glycol Antifret:./-; Millions of Gallons 120
100
80
60
•»?»>
40
20
1955
1956
1957
1958
1959
1960
1961*
*C&EN estimate Source: Chemical Specialties Manufacturers Association
SEPT.
11, 1961 C & E N
43
marketing plan for Telar this season calls for continued aggressive advertising and promotion. In May, Du Pont lowered its suggested consumer price for Telar from $5.00 to $3.95 a gallon. It has also set up a free replacement program for Telar users. When a motorist has Telar installed by a dealer, he can obtain a replacement certificate. Should the coolant "go bad," as shown by the built-in color indicator, the motorist can get a free refill. He pays only for installation. From the user's viewpoint, there are two differences between Dowgard and Telar. Telar is mixed with regular tap water at the time of installation; the inhibitor system is good enough, Du Pont says, to give life-of-the-car protection to over 99% of motorists. Du Pont feels that increased sales of Telar will not cut into the over-all antifreeze market. The company estimates that about 40% of all antifreeze users do not change every season. Telar, therefore, is a premium product for motorists that want top protection without yearly changes. Flexible. Union Carbide has taken a flexible position in the market. It introduced Prestone Long Life Coolant last year but put most of its promotion effort behind regular Prestone. The company points out that the consumer ultimately decides what type of engine coolant is most desirable. Carbide wants to be able to move either way when the consumer makes up his mind. Carbide agrees that the inhibitor systems available can give multiseason protection. But the company holds that it is hard to beat water as a heat exchange medium in an auto engine. For this reason, there is an advantage in seasonal changes, Carbide says. Detroit Factor. The fact that Ford and American Motors have decided to factory install extended-life coolants in their 1962 models at the factory will boost sales of this type of product, but will have relatively small effect on the over-all sales picture. The bulk of the coolant market lies with cars already on the road. But a swing by all auto manufacturers to long-life coolants could influence the buying habits of motorists. So far, General Motors and Chrysler have not said anything about using new coolants in 1962 models. Observers believe that these firms may switch in 1963 if consumer acceptance is good this year. Ford has developed its own specifications for the coolant it will use in 1962 models and will contract with 44
C&EN
SEPT.
11, 1961
outside suppliers for manufacture of the product. It is a glycol-waterinhibitor mixture; regular tap water can be used.* Ford will guarantee the coolant for 2 years or 30,000 miles. The guarantee, apparently, is intended to fit in with the company's current theme of minimum maintenance. The Ford coolant will also be sold over the counter through normal Ford distribution channels. To take care of Ford owners who might not be able to reach a dealer for antifreeze, the company is considering a plan under which it will approve certain other coolants for use in Fords.
South Is Big Rubber Market 140TH
ACS
NATIONAL
MEETING
Rubber Chemistry
In 1935, the southern tire industry consisted of but one plant, employing about 700 people to produce about 5000 tires a day. The South produced only 2.5% of the country's tires. By 1960, 25 years later, the southern states had 10 tire plants and turned out 21.5% of U.S. output, according to D. A. Reneau of United Carbon Co. Part of this growth results from the general expansion of the U.S. economy. But much more important to the southern rubber industry was the switch from natural to synthetic rubber —made chiefly in southern plants. Today, 98% of the materials used in rubber compounding are available from producing plants in the southern states, including Texas and Oklahoma. Availability of raw materials, coupled with other inducements which have led to industrialization of the S o u t h such as cheap utilities and abundant labor—brought the southern tire industry up to its present level. The change to tubeless tires also has helped the southern rubber industry. Once these entered the original equipment market, rubber manufacturers decided to concentrate their tube production. Now, Mr. Reneau estimates, 75% of all tubes are made in the South. Demand for tubes is shrinking, but while it lasts it helps maintain the high level of the southern market for rubber and rubber chemicals.
WEEK'S PRICE CHANGES September 4, 1961 Advances CURRENT PREVIOUS
Corn oil, crude, lb. Muriate of potash,
$0,177* $0,167*
60%, bulk, per unit KaO in metal, lb. in salts, lb.: Potassium stannate Sodium stannate Stannous chloride Stannous oxide, 400-lb. drums
0.36 1.257,
0.35 1.217*
0.878 0.745 1.142
0.866 0.731 1.123
1.32
1.275
Declines Acetate developed dye, black, BGD, lb. $1.06 Adipic acid, t.L, c.L, lb. 0.29 Aniline oil, lb.: tanks 0.15 c.l. 0.17 l.c.l. 0.18 Ascorbic acid (vitamin C), kilo., 100-kilo. lots or more Less than 100 kilo. Casein, Argentine, lb. Castor oil, Brazilian, lb. Isoascorbic acid, 200-lb. lots, lb. Linseed oil, tanks, Mpls., lb. Sodium ascorbate, 100kilo. lots, kilo. Sodium isoascorbate, 200-lb. lots, lb. * Revised from Sept. 4 box.
$1.21 0.327, 0.18 0.20 0.21
5.75 6.00 0.187*
5.90 6.15 0.187
0.177 2
0.177
2.53
2.60
0.147 2
0.15
5.75
5.90°
2.06
2.12
BRIEFS Du Pont plans to increase the price of trichlorethylene on Oct. 1. New delivered prices, which are 3 / 4 cent higher than the present schedule, will be 12 cents a pound in tank cars, 13 l /4 cents for truckloads and carloads of drums. The increase follows a 1VL»cent reduction in trichlorethylene prices last December.
Reichhold Chemicals has reduced the West Coast price of polyvinyl acetate emulsion by l 1 / 2 cents a pound. The new schedule equalizes West Coast prices to those currently in effect in the eastern market. Reichhold now makes polyvinyl acetate emulsions on the West Coast at South San Francisco, Calif., and plans to begin production this fall at Azusa, Calif., and Tacoma, Wash.
Houdry Process Corp. has reduced the price of Dabco triethylenediamine about 15%. The new price is $6.95 a pound, 50-pound drums, 10 or more.
