1. Driving the Future for South Carolina, the Nation and the World Thomas R. Kurfess, Ph.D., P.E. Professor and BMW Chair of Manufacturing Department of Automotive Engineering Department of Mechanical Engineering Clemson University – International Center for Automotive Research Greenville, South Carolina USA by

2. / 15 CU – ICAR Campus 2

3. / 15 Major Systems ETS-Lindgren EMC Chamber FEV Engine Dynamometer Zeiss Full Vehicle CMM MTS Road Simulator in Weiss Environmental Chamber 4-Wheel Chassis Dynamometer in Anechoic Chamber 3

4. / 15 Major Automotive Research Sponsors  BMW  Ford Motor Company  General Motors  US Army TACOM  Timken  Caterpillar  Michelin Tire Company  Honda Motor Company  Toyota Motor Company 4

5. / 15 The Impact  Manufacturing  Emissions  Safety  Energy Chair in Manufacturing Chair in System Integration Chair in Product Design & Development Chair in Vehicle Electronics 5

6. / 15 The Market  World Population 6.8 Billion 0 (July 2010)  266 Nations  82% Literacy Rate  Gross World Product (GWP): $69.98 Trillion (2009)  GDP per capita: $10,400  Labor Force 3.18 Billion (2009) –Agriculture 37.5% –Industry 22.1% –Services 40.4%  Unemployment Rate 9% (2009) (vs 7% in 2008)  Cars Sold20092007 1 %ch –World Wide 64.3m 2 71.9m-11 –North America 12.7m 3 19.4m-35 –Europe 14.5m 4 22.9m-37 –China 13.6m 5 9.2m 48 –India 7 1.4m 6 1.5m -7  Global Industry Revenues $2.2 Trillion 8 0 World Data: https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html 1 Automotive News Europe 2008 Global Market Data Book 2 ICIS “Macroeconomic View of the Auto Industry”, 4/20/2010 3 Automotive News 2010 Market Data: North America Sales 4 Automotive News Estimated Europe Registrations 5 USA Today, 1/8/2010, “China surpasses U.S. in 2009 auto sales” 6 Nair, V. (Bloomberg.com) 1/8/2010, “India 2009 Car Sales Rise Most in Three Years on Economy, Rates” 7 Passenger Cars Only 8 International Organization of Motor Vehicle Manufacturers data (http://oica.net/wp-content/uploads/2007/06/oica-depliant-final.pdf) 6

7. / 15 Meeting the Needs of South Carolina Aerospace Automotive Energy Light WeightSustainable High Temperatures Large Structures Rapid Deployment Efficient Execution 7

8. / 15 Executing the Mission Job Growth InnovationEducationTeamingApplicationResearch 8

9. / 15 Resident and/or Research Partners American Titanium Works Art Center College of Design BMW ITRC BMW Manufacturing Co. CADFEM Dale Earnhardt Inc. DiMora Motorcar EnginSoft FEV GE Energy Infrastructure InnoVenture LLC Koyo Bearings KTM Solutions Michelin National Instruments Ozen Engineering Proterra* Richard Petty Driving SAE International Sage Automotive Interiors* SIMPACK US South Carolina Manfacturers Association (SCMA) South Carolina Research Authority (SCRA) Specialty Equipment Manufacturers Association (SEMA) Thermo-Pur Technologies, LLC Timken Toyota Scholarship/Fellowships/Equipment Altair AVL Automation Engineering Corporation Bosch-Rexroth dSpace ETS-Lindgren FEV Systems Gibbs & Associates Mazda MTS National Instruments Okuma America Corporation Polyworks Renk Renishaw Ricardo Romer (Hexagon Metrology) Staubli Voltaire Weiss Zeiss CU-ICAR Industrial Partners 9

10. / 15 1994 2011 Addressing Growth 700 Jobs Onsite 7,000 Jobs Onsite $5 Billion Investment 4.0 Million Square Feet 1.5 Million Square Feet

11. / 15 Production 11 Body Shop Paint Shop Assembly

12. BMW Werk Spartanburg SC Supplier Network. Tier 1 Suppliers. Charleston Columbia Source: BMW 2011 12

13. / 15  $35.9 billion in capital investment  114,000 jobs created  More than 640 firms from 40 countries Source: SC Department of Commerce, 2009 Proven International Success with Suppliers

14. / 15 The Future for the United States  Education at all levels  South Carolina –Jobs – too many?  The Southeastern U.S.  The United States of America –Automotive –Manufacturing  The World In times of change, learners inherit the earth; while the learned find themselves beautifully equipped to deal with a world that no longer exists. (Eric Hoffer 1902-1983) 14

15. / 15 Do Not Underestimate the Human Factor 15