1. Title Date The Auto Future: Fast and Furious David E. Cole Chairman Emeritus Center for Automotive Research (CAR) Chairman AutoHarvest Good Morning Livingston Howell, Michigan February 11,2014

2. David is to be returned to Italy A bit of cultural news for a welcome change!

3. His Proud Sponsors were Fast Food Chains…

4. Title Date 4 Auto “We Had a Problem” Mostly Revenue – with Depression Level of Sales

5. Title Date PALE Meeting-March 19, 2009 5 However, Will It Come Back.. ? U.S. Light Vehicle Sales Forecast Source: CSM Worldwide, J.D. Power +4.4 M+6.8 M+8.9 M +2.4 M -9.3 M-5.2 M -8.0 M

6. Title Date PALE Meeting-March 19, 2009 6 U.S. Light Vehicle Sales History and Forecast Combined J.D. Power and CSM Worldwide Forecast 2007 - 2014 Source: CSM Worldwide, JD Power, Inc. Millions

7. Title Date 7 Pillars of Economy s Mining s Agriculture s Manufacturing

8. Title Date 8 Manufacturing– An Amazing Level of Ignorance

9. Title Date 9 Manufacturing Choke Points?  Staff  Tooling  Suppliers  Equipment  Natural Events  Materials

10. Title Date 10 Auto Industry of the Future A World of Vanishing Boundaries

11. Title Date 11 Beware: The Aging of the Boomers.

12. Title Date 12 Demographics s Consumer Behavior s Socio / Political s Health Care s Skilled Workers s World Issue “Boomers go Boom”

13. Title Date 13 Auto Industry - Thousands of New Jobs – But Only for the Educated for the Educated

14. Title Date Tough Challenges Ahead: 14 K-12 Pipeline Young Women No Universal Message Inadequate Resources Poor History Dated Picture of Manufacturing

15. Title Date s Give Scale to Great Educational Programs s Create a Message of Importance, Opportunity and Need 15 “Building America’s Tomorrow”

16. Title Date 16 Success Requires Improvements in: s Cost s Revenue s Agility s Innovation

17. Title Date 17 Industry, Highly Unstable — Not in Final Form

18. Title Date 18 The Old Business Model is Broken

19. Title Date 19 Market Share is Nice Profits are Essential

20. Title Date 20 BureaucracyPaperLinear SlowLean Individual Sequential Regional Physical Prototypes Job for Life Kings Talk CompetitionStructuredAcquisitions Vertical Integration Legalistic Old Business Model Control

21. Title Date 21 Anti-bureaucracyPaperless Collaboration Fast Lean Agile Team e-enabled Global Virtual Prototypes People Flow Coaches Listen Coopetition Parallel FlexibleAlliances Virtual Integration Trust New Business Model Empowerment

22. Title Date 22 Time Present Business Model New Business Model Real Desired Performance

23. Title Date 23 Leadership: Responsibility - Authority

24. Title Date Leadership:  Coach  Team  Vision  Self Confidence  Focus  Systems Thinking  More Than the Job  Communication 24

25. Title Date Key Questions for Leaders:  What Do I Have To Do That I’m Doing?  What Am I Doing That I Don’t Have To Do?  What Am I Not Doing That I Should Be Doing? 25

26. Title Date 26 Knowledge The Competitive Edge

27. Title Date 27 It’s nice to be smart and rich, but smart is more important than rich.

28. Title Date 28 Do what you know.

29. Title Date 29 Customer Pull Cars and Trucks Product and Process Technology Push

30. Title Date 30 Time Knowledge Application Knowledge CompetitiveAdvantage Innovation

31. Title Date Innovation:  Innovative People and Companies Win  It Takes a Team  Leadership is Critical  Look Across Traditional Boundaries  Sometimes It is Better to Ask Forgiveness than Permission 31

32. Title Date 32 Coming Soon: “Auto Harvest” Check it out at autoharvest.org

33. Title Date 33 Big Data is Here The Challenge: Use is Intelligently

34. Title Date 34 STEM is Moving to STEAM

35. Title Date 35 T I M E

36. Title Date 36 Fast-paced change demands leverage of all resources

37. Title Date 37 Communication Collaboration Collaboration Cooperation Cooperation Alliances Alliances Teamwork Teamwork

38. Title Date 38 Product Technology At the edge of a revolution?

39. Title Date Future Auto Power Plants 39  Gasoline  Diesel  Hybrid  Fuel Cell  Electric  ? The Answer – ?

40. Title Date 40 Future Fuels  Petroleum  Bio  Hydrogen  NH 3 The Answer – ?

41. Title Date 41 Future Gasoline Price – $ 1.50 – $ 5.00 /gallon

42. Title Date 42 Annual Mileage 15,000 MPG

43. Title Date 43 Breakthrough Areas Breakthrough Areas  Advanced Batteries  Cellulosic Bio-Fuels  Connected Vehicles  Advanced Material Systems

44. Title Date 44 The Invention is Here!

45. Title Date 45 Future Direction It’s All a Matter of Economics