Italian Trade Commission Webinar Canada – December 9, 2014 GS Global Solutions

Source: AutoForecast Solutions – October = Million

GS Global Solutions 3 Source: AutoForecast Solutions – October 2014 Asia-Pacific Removed

GS Global Solutions New NAFTA Environmental Regulations Smaller, lighter vehicles, with upgraded fuel-efficient powertrains. Will people want to drive much smaller vehicles? Will vehicle profit be high enough to justify investment? standards require a 65% improvement in fuel economy over current levels. Higher consumer ownership and operating cost. Will consumers accept paying more … possibly much more … for transportation? How de we as suppliers support global platforms and still look after local business opportunities? 4

GS Global Solutions Key drivers, enablers and constraints Employment/Income Growth Driving Age Population Growth Age of Fleet Ownership and Operating Cost Affluence/Financial Stability Technology Fuel Economy Regs Supply Chain Constraints 5 Source: AutomotiveCompass

GS Global Solutions 6 Source: AutoForecast Solutions – October 2014

GS Global Solutions 7 Canada NAFTA Market Share Declining Source: AutoForecast Solutions – October 2014

GS Global Solutions 8 Source: AutoForecast Solutions – October 2014

GS Global Solutions 9 Mexico growing at the expense of Canada Source: AutoForecast Solutions – October 2014

GS Global Solutions 5 Major OEMS – GM, Ford, Chrysler, Honda and Toyota GM – 2 plants in Oshawa (Camaro, Regal, Impala, XTS), CAMI Facility in Ingersoll (Equinox/Terrain) Ford – Oakville (Edge, MKX, Flex, MKT), St. Thomas (Crown Vic, Grand Marquis, Town Car – closed Sep 11) Chrysler – Brampton (300C, Charger, Challenger, Lancia Thema), Windsor (Caravan, T&C, Lancia GV, Routan) Toyota – Cambridge (RX, Corolla, Matrix), Woodstock (RAV4) Honda – Alliston 1 & 2 (Civic, CR-V)

GS Global Solutions 11 Source: AutoForecast Solutions – October 2014

GS Global Solutions 2013 Rank2013 Volume2021 Rank2021 Volume China20,905,245China32,157,310 United States10,884,072United States12,327,504 Japan9,194,394Japan9,719,592 Germany5,650,674Germany6,176,447 South Korea4,463,220India5,472,900 India3,674,104Brazil4,839,542 Brazil3,489,242South Korea4,677,959 Mexico2,925,621Mexico4,395,016 Thailand2,651,035Thailand2,989,325 Canada2,370,493Spain2,844,354 Spain2,019,361Russia2,362,894 Russia1,909,115France2,144,283 France1,722,558United Kingdom1,929,163 United Kingdom1,519,230Indonesia1,841,158 Indonesia1,134,732Canada1,772,480 Turkey1,089,132Czech Republic1,398,801 Czech Republic1,071,936Turkey1,261,532 Slovakia866,594Italy1,147,945 Argentina781,940Slovakia1,005,616 Italy647,521Argentina880, <3 positions moved UP 3+ position moves UP <3 positions moved DOWN 3+ position moves DOWN No Change Source: AutoForecast Solutions – July 2014

GS Global Solutions Honda Thru October % of domestic Honda car sales are Canadian-built. 62% of domestic Honda Light Trucks are Canadian-built. Toyota Thru October % of domestic Toyota car sales are Canadian-built. 40% of domestic Toyota Light Trucks are Canadian-built. Lexus Thru October % of domestic Lexus Light Trucks are Canadian-built. Source: Global Automakers of Canada (GAC)– October 2014

GS Global Solutions Honda/Toyota Production supports NAFTA consumption Only location for RAV4 production in NAFTA Strong domestic supply chain Ford Oakville ONLY source of Edge, Flex, MKT, MKX New investment in global Edge program FCA Windsor only source for Minivans Bramalea only source for Challenger, Charger, 300 (NAFTA) GM All Canadian-built vehicles can be built elsewhere! Equinox – 4 Locations in NAFTA Terrain - 2 locations in NAFTA; exiting Canada in 2017 Camaro – LEAVING Canada Prod in late 2015 Regal – LEAVING Canada Prod 2017 Impala – LEAVING Canada Prod late 2019 XTS – Replaced by LTS in 2016/2017 (Hamtramck/China) Source: AutoForecast Solutions – July 2014

GS Global Solutions 15 Source: AutoForecast Solutions – October 2014

GS Global Solutions

Why is Canada the best place in the G7 to do business? Strongest Economic Growth in the G7 The Soundest Banking System in the World The Lowest Business Costs in the G7 1 The International Monetary Fund. World Economic Outlook April The World Economic Forum. The Global Competitiveness Report KPMG. Competitive Alternatives 2010.

GS Global Solutions Connected Vehicle CUTA Canadian Urban Transit Association ITS Canada Intelligent Transportation Systems APMA Automotive Parts Manufacturers Academia University Researchers Government Federal & Provincial CTA – OTA Canadian & Ontario Trucking Associations EMC Electric Mobility Canada First Responders Police/ Fire/ Ambulance

GS Global Solutions 6. Supply-Chain Transformation 1. Customer Facing Focus 1. Customer Facing Focus Increasing the Value of the Business 10. Core Competencies 10. Core Competencies 9. Systems & Modules 8. Globalization 8. Globalization 7. Resource Pressure 2. Growth 3. Cost Reduction 4. Technology 5. Brand Management