1. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd European Light Commercial Vehicle Production Outlook – SMMT Open Forum Ian Henry, AutoAnalysis March 30, 2011

2. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 2 5 categories of Light Commercial Vehicles made in Europe MicrovansSmall vans Medium vans Large vans Pick-up trucks

3. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 3 Market dominated by joint product development & manufacturing arrangements Traditionally c2-2.5mn LCVs made in Europe pa, incl. commercial versions of cars Market supplied almost entirely with local production – limited imports Alliances are a key feature of market, with some VMs having >1 alliance: Fiat with PSA, and with GM PSA with Fiat, and Mitsubishi Renault with GM, Nissan and Mercedes Mercedes with VW and Renault … Over 1/3 European LCVs supplied through alliances 5 main segments: Microvans, eg Peugeot Bipper Small vans, eg Ford Transit Connect Medium vans, eg Vauxhall Vivaro Large vans, eg Fiat Ducato Pick-up trucks, eg Nissan Navarra VW adding pick-up production to European offering – the first European VM to make a purpose-built pick-up Chinese, through Chery and Great Wall, will add LCV production in Europe

4. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 4 Significant dip in 2009 production – recovery unlikely to exceed 2007 peak; some PSA/Renault/Fiat production shifting to South America and Russia …

5. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 5 Daimler Currently has two vans, Viano/Vito medium van made in Spain, and Sprinter large van made in Germany Sprinter also supplied to Volkswagen as Crafter and has been supplied to Dodge and Freightliner in low volume for US market Will source Mercedes version of Kangoo from Renault to give it a small van – previous offering in small vans (Vaneo based on A-class) was not a success Recently announced a production JV with GAZ in Russia, to make Sprinter for local market: Timing to be confirmed Initial volume 25,000 pa This will be Mercedes’ initial route into Russia; car production in Russia not currently scheduled

6. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 6 Fiat Widest range of LCVs, mostly made in JVs with PSA: Microvans: Fiat Fiorino, made by Tofas in Turkey, JV with PSA Small van: Fiat Doblo, made by Tofas; will build version for Opel/Vauxhall under contract Medium van: Fiat Scudo, made by Sevel Nord, French-based arm of PSA JV Large van: Fiat Ducato, made by Sevel Sud, Italian-based arm of PSA JV Iveco Daily: heavy duty large van, made in Italy and Spain Production in Russia highly likely in new Fiat factory, to replace low volume kit production at local assemblers

7. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 7 Ford Only major European VM without an alliance in LCVs Transit van is, arguably, the most iconic van in Europe, certainly in UK: Mostly now made in Kocaeli, Turkey; major investment for new model – crosses medium and large van sub-segments Limited production of chassis-cabs in UK Transit Connect small van currently make in Turkey: Production to shift to Romania Transit Connect is one of three candidates to be next New York City taxi: Could boost new model production in Craiova, or lead to US production

8. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 8 GM Heavily reliant on Renault for most of its presence in LCVs: Medium Vivaro van made in joint development and manufacturing programme with Renault; production of new model secured for Luton, saving the factory, starting in 2013; but new van programme will only see Vauxhall/Opel models made in Luton – no Renaults or Nissans Large Movano van sourced on OEM basis from Renault (rebadged version of Master) Still makes own small van: Combo, based on Corsa: However, for new model, GM is switching Combo van replacement to a modified version of Fiat Doblo from the Tofas plant in Turkey

9. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 9 PSA Mix of own vehicle programme and JVs with Fiat Microvan: Citroen Nemo/Peugeot Bipper, made by Tofas in Turkey, JV with Fiat Small van: Citroen Berlingo/Peugeot Partner, self-developed programme, made in Spain; will add EV version with Mitsubishi electric powertrain; CKD arrangement in Turkey, full production also in Brazil – both leading to fall in Spanish production Medium van: Citroen Jumpy/Peugeot Expert, made by Sevel Nord, French-based arm of Fiat JV Large van: Citroen Jumper/Peugeot Boxer, made by Sevel Sud, Italian- based arm of Fiat JV

10. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 10 Renault-Nissan-Dacia Renault: Small van: Kangoo, formerly supplied to Nissan as Kubistar, also to be supplied to Mercedes (name unknown) Medium van: Trafic, currently made in Spain and UK, switching to France for new model; joint development programme with GM Large van: Master, also supplied to GM and Nissan on OEM basis Nissan now going down a partially independent path in LCVs: Formerly sourced all European vans from Renault But Nissan Spain now making own small-medium van (NV200) and will also make new pick-up truck Dacia: new factory in Morocco will add small van from 2013 … details awaited

11. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 11 Small van: Caddy, made in Poland, based on old Golf platform Medium van: Transporter, mostly made in Germany, with chassis cab versions made in Poland; also made in minibus and coach versions in Germany Large van: Crafter sourced from Mercedes on OEM basis Pick-up truck: developed Amarok for South American market; will add European production in 2012, the first European VM to make a purposed-designed pick-up in Europe Skoda also makes low volume Praktik van, based on Fabia, mostly for domestic market VW group

12. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITEDPAGE 12 In summary … European LCV production... Is characterised by joint production arrangements, some full JVs (Fiat-PSA), some pure OEM supply (Mercedes for VW, Renault for Mercedes) Will see more alliances like these in the years ahead Is dominated by European brands – Nissan apart, the Japanese have largely stayed away from this market; and probably will stay away, because of entrenched nature of European suppliers and better opportunities elsewhere Chinese will appear at the margins, in small vans and cheap pick-up trucks, while Hyundai will aim for a slice of Turkish/Near East market with a Turkish production JV