Linamar's planned giga-press part of industry's 're-evaluation' of vehicle manufacturing

Linamar Corp.’s planned high-pressure die casting plant in Welland, Ont. is part of an industry-wide “re-evaluation” of how vehicles are built, and signals that at least one local automaker aims to integrate very large structural components into an upcoming electric vehicle, according to auto analyst Sam Fiorani.

The past few years have been something akin to opening “Pandora’s box,” said Fiorani, the vice-president of global vehicle forecasting at U.S.-based AutoForecast Solutions.

“Since Tesla opened the door, everyone’s looking at new ways to save money on castings, on production, everything down the line to dealerships.”

High-pressure die casting is not new, but using the process to make large structural components is a recent development. Tesla pioneered the use of so-called giga presses to produce the rear underbody of its Model Y in 2020.

The exact point at which die casting machines become “giga” is up for debate, Linamar CEO Linda Hasenfratz told Automotive News Canada, but with a clamping force of 6,100 tons, no one will be questioning whether the Canadian supplier’s three presses destined for Welland make the cut.

“We’re the first supplier to invest in the giga-size high-pressure die cast technology in either North America or Europe, so we feel like it gives us a market leadership opportunity here.”

Hasenfratz said the company is scheduled to start shipments of the large aluminum components for its first contract in early 2025. She would not name the customer, but noted Welland, situated at the eastern tip of southern Ontario, was chosen because of its proximity to several auto assembly plants.

LOCATION TO 'MAXIMIZE OPPORTUNITIES'

“Parts of this size, you don’t really want to be shipping very far. So, we wanted something that was going to be in a location that we could maximize opportunities with the most customers.”

Fiorani said the plant’s location puts it within striking distance of numerous Detroit Three plants in Canada, as well as Toyota and Honda. Shipping to assembly sites in the Detroit area is also feasible, he said, and if the parts are loaded onto ships, that would open further opportunities with the Detroit Three and several startups in Ohio.

While Tesla is a well-known user of large cast components, Fiorani said the EV maker is not likely to be Linamar’s buyer. The company’s current plant footprint is too far from Welland, and Tesla is “proud” of its casting ability, making it unlikely to outsource the parts, he added.

While Guelph, Ont.-based Linamar highlighted just one contract, it has few concerns about securing enough orders to fill the new plant.    

“We have a lot of other opportunities in the pipeline. We’re pretty confident in our ability to fill this facility in short-order,” Hasenfratz said.

'NEED FOR LIGHTWEIGHTING'

“It comes back to the growth of electrified vehicles, the need for lightweighting and just the realization of the amount of weight savings that you get from stamped steel assemblies [versus] this type of a structural lightweight metal part.”

Weight savings will vary based on what structural component is being built, Hasenfratz added, but the aluminum components made in Welland are likely to be between 25 and 45 per cent lighter than their welded counterparts. These savings help offset the unavoidable weight of an EV battery pack, she said.

But while the large castings offer electric vehicle makers a number of key benefits, they also come with drawbacks, Fiorani said. He pointed to collisions as one known issue.

“By having components, you can cut the bad piece out and replace it, but when you have a large section of the vehicle as one unit, it makes it much more difficult to repair, so it drives up repair costs and more easily totals a vehicle in an accident.”

And given the novelty of the technology, “relative to the industry which moves at a glacial pace,” other issues could arise, Fiorani said.

“Making sure that the part has longevity, that it doesn’t wear in the middle and weaken the whole vehicle, or something along those lines, we just need to give it time to flush out all the unforeseen problems that will crop up.”