1. New Materials in the Automotive Industry New Materials in the Automotive Industry Bernard Swiecki Center for Automotive Research (CAR) Blue Water Corridor Conference June 11, 2014

2. The Center for Automotive Research conducts leading-edge research that impacts the future of the global automotive industry. Automotive industry contract research and service non-profit organization with more than 30 years experience CAR forecasts industry trends, advises on public policy, and sponsors multi-stakeholder communication forums Based in Ann Arbor, MI – 30+ Employees

3. Monday Mapping the Pathway to World-Class Manufacturing Connected and Automated Vehicles: Driving Forward Fast Featherweight Competition: Agile, Light, and StrongTuesday Advanced Powertrain Forum Onwards and Upwards? The Sales Forecast Workshop Attracting and Retaining Talent in an Era of Changing Technology and Demographics Managing the Global Supply Chain and Logistics: Moving all the parts, on time, all the timeWednesday Automotive Strategy: Pathways to Prosperity Designing for Technology and the Customer Global Opportunities, Global Decisions, Final OutcomesThursday Automotive Strategy: Pathways to Prosperity Purchasing and Automaker/Supplier Relations in Today's Automotive Industry CAR MBS: 49 th year - August 4-7, Traverse City, Michigan CAR Management Briefing Seminars www.cargroup.org

4. The New Big-3 Technology Shock ! Materials Powertrain Connectivity Drive for fuel economy creating opportunities with evolving and new technologies

5. Harder Than It Seems - Achieved fuel economy and future standards

6. Lightweighting Lightweighting: virtually limitless – but at what cost? 10% mass reduction = 7% better fuel consumption Mass de-compounding effect (30%)

7. Ford F-150 One of Ford’s most profitable vehicles Best selling vehicle in the United States last year – Approximately 650,000 units sold per year – One vehicle every 50 seconds Best selling vehicle in 35 of 50 states according to Edmunds/Business Insider Source: Business Insider

8. Ford F-150 High strength steel frame – Increase from 23% to 77% “Military grade” aluminum 2.7 L Ecoboost engine w/start-stop 700 lb. mass reduction Advanced steel and aluminum are the “primary pathways through 2020” Additional LW options with seats, IP, PT, etc. “There is barely a sufficient supply chain today for the Al on the F150.”

9. Source: Center for Automotive Research Lightweighting Material Architectural Strategy Future Steel Vehicle – 35% reduction in body mass All technology pathways anticipate lightweighting The “monolithic” car with one dominant material is: – Easier to design, and – Easier to manufacture, but – Not optimum for reducing mass and cost – Honda, “We’ve gone as far as we can with steel.” A MM body is next. Aluminum Intensive – 45% reduction in body mass Composite Car - 55% reduction in body mass Ford 2015 F-150 Aluminum body & bed Steel frame

10. Key Material Trends (Next 10 years) Increased use of ultra high strength steel for structural components around the “safety cage” to prevent intrusion Aluminum use for chassis and exterior panels is increasing Fiber reinforced plastics (glass and carbon) for structural components are still several years away from high volume production Joining complexity: more laser welding, fasteners and adhesives Structural Adhesive

11. Barriers to Lightweighting (Modeling, Joining, Supply Chain) Fitting into their traditional business model – change may take 2 generations Use of non-traditional materials and non-traditional suppliers Performance (NVH, crash-simulation) Cost Assembly process Time of construction Required floor space Bonding Riveting Corrosion Global /standardized parts used in many models

12. New Bio-Based Material Study Underway at CAR - Make It In America Challenge Federally-funded grant program to accelerate job creation and encourage business investment in the United States – CAR’s portion is EDA-funded Project partners include: – National Center for Manufacturing Sciences (NCMS) – Michigan Manufacturing Technology Center (MMTC) – Macomb/St. Clair Workforce Development Board – Macomb County Community College 3 Year effort started in early 2014 Contact CAR to get involved

13. Thank You Thank You bswiecki@cargroup.org