1. Life Cycle Management (LCM) Methodology for the Auto Sector

2. Life Cycle Management Methodology - Need Suppliers and OEM’s need common recognized process

3. Need to be “Quick” for business decision making purposes Life Cycle Management Methodology - Need

4. Support Strategic Decision making – Intended to be screening methodology – Used for relative comparisons; – Not intended to generate quantitative or absolute comparisons (i.e. green labeling) Life Cycle Management Methodology - Need

5. Used by suppliers to identify potential product life cycle Issues Screening methodology which may lead to more in- depth and focused LCA Life Cycle Management Methodology - Need

6. Auto Sector - Life Cycle Management Screening Methodology Promote facilitated identification, discussion and resolution of product Environmental issues between OEM’s and supply chain Provides methodology to ensure Environmental impacts are not being shifted from one product phase to another (between OEM and supply chain) Establishes forum for development and refinement of Life Cycle / sustainability tools for the auto sector Objective

7. National LCI Database Common Manufacturing Modules Common Raw Material Data Modules? Quantitative Vehicle /Product Specific LCA Vehicle Specific Components Vehicle Specific In-Use Vehicle Specific End of Useful Life Peer Reviewed Method / data SP Life Cycle Screening Methodology Supplier Specific Manufacturing Models / data Supplier Specific Product Scenario Models / data Common Vehicle In-use ; End of Useful Life Assumptions / Model Qualitative / Relative Component Contribution to Life cycle Impact of Hypothetical Vehicle(s) SP Screening Result May Lead to Deeper Dive By OEM / Specific Supplier Box in Red is what we need to build

8. Supplier Product Engineering Supplier Product Manufacturing Raw Material & Energy Production Disposal of ELV Dismantle/Disassembly Shredding Landfilling Metal Recycling: -- Ferrous ~70% Material Recovery ReUse Spare Part Sale Recycle De- Pollute Metal Recycling: -- NonFerrous ~3-8% Incinerate for Energy recovery Non – Metal (polymer) Material Separation Metal Material Separation FluidsSolids Engine oil gearbox oil differential oil brake liquid steering liquid cooling liquid fuel cooling fluid Batteries Filters Catalytic Converter Tires & wheels Powertrain (engine & transmission) Fuel Tank Air Bags Radiator End of Life Vehicle Process In-Use Vehicle Phase Components outlined in Red are what we need to build

9. USE Phase Modeling Assumptions Fuel: unleaded, no oxygenates Total Vehicle Miles Traveled 100,000 Life expectancy:10 years Fuel Economy:CAFE standard for given class Fuel Consumption Ratio 0.6 (i.e., weight reduction of 10% results in fuel consumptions reduction of 6%) Mass of Vehicle:1500 kg Tailpipe Emissions:EU4 2005 Emission Standards Federal Emission Standards for vehicle class Maintenance: Consider scope of study. Include if modeling part/component that is reasonably expected to influence maintenance life cycle impacts Vehicle In-Use Phase Screening Methodology Assumptions March 1 st USCAR Meeting Result

10. FluidsSolids Engine oil gearbox oil differential oil brake liquid steering liquid cooling liquid fuel cooling fluid Batteries Filters Catalytic Converter Tires & wheels Powertrain (engine & transmission) Fuel Tank Air Bags Radiator Disposal of ELV Dismantle/Disassembly Shredding Landfilling Metal Recycling: -- Ferrous ~70% Material Recovery ReUse Spare Part Sale Recycle De-Pollute Metal Recycling: -- NonFerrous ~3-8% Incinerate for Energy recovery * Possible regional variances ( Europe vs. N.America vs. Japan) End of Life Vehicle Process* Non – Metal (polymer) Material Separation Metal Material Separation

11. Economic Rules of Thumb: Shredder value $0.06 per kg mass shredded ~ $0.057 per kg used to recover energy from ASR ~ $0.08 to $0.11 per kilogram to recycle plastics BMWs Suitability for Recycling: KE (%) = cost of equivalent new material + disposal cost of dismantling + reprocessing + logistics

12. End of Life Rules of Thumb Options –all non metallic waste landfilled –~18% fluff undergoes combustion (either in blast furnace, cement kiln, or MSW incinerator) –end of life vehicle consumes between 0.1 and 1% of the total energy requirements of the life cycle, and 80+% of CO2 emissions are associated with the use phase –impact of car’s end of life between 1 and 5 orders of magnitude less than the total life cycle –End of life as a % of total life cycle impact: global warming 2%, acidification 0.01%, natural resource depletion 1%, eutrophication 11% –from Funazaki et al. JARI 2001 & 2003 ELV studies, EOL stage had the following impact indicators, with recycling rate of 78%: Energy 1 to 6 GJ (0.3 to 1.4% of total for impact category; 18% Production; 81% Use) GWP 0.6 to 3 ton CO2 (2 to 9% of total for impact category; 17% Production, ) AP 0.3 kg SO2 (0.6% of total for impact category) Air Pollution 0.4 kg SO2 (0.5% of total for impact category) Ozone depletion 418 g-CFC11 (74% of total for impact category; 26% Use phase)

13. End of Life Conclusions Literature values available for energy and other impacts at end of life No available studies on contribution of ELVs to landfill emissions LCA software packages offer some end of life treatment values Developing a simple end of life model will take a lot more work – due to technical /non technical challenges and data gaps

14. FluidsSolids Engine oil gearbox oil differential oil brake liquid steering liquid cooling liquid fuel cooling fluid Batteries Filters Catalytic Converter Tires & wheels Powertrain (engine & transmission) Fuel Tank Air Bags Radiator End of Life Vehicle Process* Disposal of ELV Dismantle/Disassembly Shredding Landfilling Metal Recycling: -- Ferrous ~70% Material Recovery ReUse Spare Part Sale Recycle De-Pollute Metal Recycling: -- NonFerrous ~3-8% Incinerate for Energy recovery * Possible regional variances ( Europe vs. N.America vs. Japan) Non – Metal (polymer) Material Separation Metal Material Separation

15. Recycle Energy Recovery BTU value of recovered Hydrocarbon Combustion by-products env fate/ impact solid waste Three eventual fates of End of useful life vehicle components Five Components of EoL Model That Must be Considered Landfill Env fate of chemical constituents Env / health impact DismantleShred / Separate Japan North America A BC 1 5 4 3 2

16. Auto Sector - Life Cycle Management Screening Methodology Dismantle / Re-Use / Recycle Component Part List 1) Parts that must be removed by law: Fluids drained Refrigerant (required by law cause of CFCs) Oil filters (crushed after fluid removal) Batteries Fuel Tanks Tires (state dependent) Hg Switches (state dependent) Pyrotechnic devices Airbag(s) deployed 12

17. 2) Parts that are Typically Removed: Re-manufactured parts (refer to VRP list) Transmissions Engines Radiators Catalytic Converters Al & Mg wheels (resale/sale of material) 3) Items that could be removed: IDIS parts (for Europe) Auto Sector - Life Cycle Management Screening Methodology Dismantle / Re-Use / Recycle Component Part List 12

18. Auto Sector - Life Cycle Management Screening Methodology Shredding/Separation Component Technology Assumptions Metals Most shredders pull out steel Depending on price of Al eddy current at end of shredder Mg, Zinc, etc are also removed with eddy current Most shredders have pickers i. Pull out Cu, Al, etc and put into specific bins ii. Large pieces of metal & commingled metals that magnets won’t take iii. Stainless steels also removed Technology will leave about 3% material behind Non-metals separation assumptions 3

19. Auto Sector - Life Cycle Management Screening Methodology Additional Components Which Need to be investigated Material Incineration Component - Energy Recovery & Impact assumptions Landfill Material Component - Chemical Fate Assumptions 4 5

20. Supplier Product Engineering Supplier Product Manufacturing Raw Material & Energy Production Disposal of ELV Dismantle/Disassembly Shredding Landfilling Metal Recycling: -- Ferrous ~70% Material Recovery ReUse Spare Part Sale Recycle De- Pollute Metal Recycling: -- NonFerrous ~3-8% Incinerate for Energy recovery Non – Metal (polymer) Material Separation Metal Material Separation FluidsSolids Engine oil gearbox oil differential oil brake liquid steering liquid cooling liquid fuel cooling fluid Batteries Filters Catalytic Converter Tires & wheels Powertrain (engine & transmission) Fuel Tank Air Bags Radiator End of Life Vehicle Process In-Use Vehicle Phase Investigate need for common Inventory / Chemical Emission – Fate / Impact Assumptions Facilitate Relative Risk Comparisons and Use of Method as Common Auto Sector Screening tool

21. Supplier Product Engineering Supplier Product Manufacturing Raw Material & Energy Production Disposal of ELV Dismantle/Disassembly Shredding Landfilling Metal Recycling: -- Ferrous ~70% Material Recovery ReUse Spare Part Sale Recycle De- Pollute Metal Recycling: -- NonFerrous ~3-8% Incinerate for Energy recovery Non – Metal (polymer) Material Separation Metal Material Separation FluidsSolids Engine oil gearbox oil differential oil brake liquid steering liquid cooling liquid fuel cooling fluid Batteries Filters Catalytic Converter Tires & wheels Powertrain (engine & transmission) Fuel Tank Air Bags Radiator End of Life Vehicle Process In-Use Vehicle Phase Why? What is the Value? Support Auto Sector DFE & Greening of the Supply Chain activities Understand Possible Environmental Trade Offs of Chemical bans, substitutions, customer specifications Possibly influence proposed / future chemical regulation of auto sector Maximize Environmental Benefit of our Environmental dollars

22. Next Steps Refine Decision Tree Approach to EoL Model Components Finalize first draft of Dismantled Part List Define Shredder / Separation Technology Component Assumptions Thursday May 6 th 2:00pm @ USCAR Investigate need / practicality of including Incineration and Landfill Component chemical fate assumptions Draft Overall Screening Methodology guidance Run test cases through screening methodology to identify additional needs