Presentation:

The Automotive Market &

Composite Material OutlookPresented by:

Marc Benevento, Industrial Market Insight

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HEREOutline

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• Ground Transportation Segments

• Light Vehicle Industry Drivers and Trends

• Automotive Material and Adhesive Trends

• Opportunities and Barriers for Composites

• Growing Composites and Adhesives

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The Land Transportation Market

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Global Market Volume

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HERENorth American Segments

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Source: ASC whitepaper “Adhesives & Joining in Transportation

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Light Vehicle vs Heavy Truck

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Consumer Product Industrial Asset

Production Volume High ~70,000 Low ~10,000

Customer Consumer Companies

Cycle time Short Long

Materials of

construction

Body: Steel Cab: Composite, Al, steel

Frame: Steel

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Suppliers with global

capabilities

Ability to provide material

properties and predict static

and dynamic performance

Efficient powertrain and

lightweight materials

Low lifetime environmental

footprint

Changing user needs and

priorities

Trends Implications

Auto/Electronic

Convergence

Sustainable

manufacturing

Increasing regulatory

hurdles

Global designs,

local production

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Light Vehicle Trends & Implications

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Emissions Regulations

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Source: US EPA, NHSTA

Tractors

Trailers

Car

Pickup

Improvements in Powertrain, Aerodynamics, Rolling Resistance, and Weight will be required

Proposed Fuel Economy Improvements

in Tractor-Trailers

EPA Fuel Economy Sticker

Improvements for Light Vehicles

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Conflicting Regulatory & Consumer Demands

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Comfort,

Convenience,

Capability

Handling &

PerformanceSafety Fuel Economy

Trend

Larger vehicles,

more features &

electronics

Faster, sportier.

Stiffer, more

power/weight

More energy

absorbing

capabilities

Lighter, more

efficient (34.1

MPG…54.3 MPG)

Impact to

vehicle weight

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Unibody Body-on-Frame

http://flickr.com/photos/jrok/265838085/

Light Vehicle Architecture

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Light Vehicle Materials

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NSX

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Automotive Lightweight Material Options

Source: ASC Grow the Vertical Report (Ground Transportation), Ducker Worldwide

ASC Whitepaper: Adhesive Opportunities & Outlook in Light Vehicles

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• Mild steel losing share

• HSS gaining favor

• Aluminum making inroads

Body Material Trends

Industrial Market Insight Analysis based on sampling of passenger cars as reported by OEM

ASC Whitepaper: Adhesive Opportunities & Outlook in Light Vehicles

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BMW Body Materials

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i8

i3

7 series

5 series

3 series

: Composite

: Composite

: Steel w/ composite reinforcement

: Steel

: Steel

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BMW i3

Photo: BMW

Production volume: 30,000 units

Retail price: $45,000 USD

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HEREMulti-Material Construction: BMW 7 Series

Photo: BMW

Production volume: 60,000 units

Retail price: $90,000 – 120,000 USD

145m of adhesives

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Benefits of Adhesives

Adhesives help manufacturers:

• Build structures that are stronger, stiffer,

lighter and better performing

• Make products quieter and more comfortable

• Solve difficult joining problems

Source: General Motors

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Weld Bonding

Carryover from prior model

New

88 m of weld bonding in total

50% increase in torsional rigidity

6% lower mass than benchmark

Source: Steel Market Development Institute Great Designs in Steel

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Structural Adhesives in Various Vehicles

Structural Adhesive Growth Trend

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Source: Sika, Daimler

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Shock tower

Al casting replaces multi-piece

stamped assembly

Adhesive reduces stress on fastener

and improves fatigue life

Adhesive prevents galvanic corrosion

in mixed material assemblySource: Steel Market Development Institute Great Designs in Steel

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Source: Dow Automotive

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Recent Composite Applications

Lexus LC 500

Source: Lexus

Source: Honda Motor Co.

Acura NSX

BMW 7 Series

Source: BMW

Honda Ridgeline

Source: Industrial Market Insight

Acura

NSX

Honda Ridgeline

BMW

7-Series

Lexus

LC 500

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Lexus LC 500

Source: Lexus

Lexus LC 500

• Steel unibody

• Al panels, bumper

beam, shock

towers

• CFRP roof, inner

panels

• SMC decklid

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Acura NSX

Source: Honda Motor Co.

Acura NSX

• Aluminum spaceframe, hood, roof, door outer

• CRFP floor

• SMC fenders

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BMW 7 Series

BMW 7 Series

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Source: Sika

Challenge

Delta Alpha

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Source: Sika

Mixed Material Bonding

Technology Comparison

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Honda Ridgeline

Source: Honda

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Metal bed

Composite bed

Production volume

Tooling amortization

Cycle time

Other concerns

Recycle / end-of-life

Durability

Value chain considerations

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Drivers Barriers

Weight

Performance

Fuel economy

Low tooling cost

Part consolidation opportunities

Corrosion resistance

Design / simulation

Cycle time

Cost (carbon fiber, infrastructure)

Paint / Appearance

Non-destructive evaluation

Recycle / End-of-life

Joining

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Opportunities for Collaboration

Potential for collaboration to address barriers facing

both industries

• Design practices

• Simulation

• Non-destructive testing

• End-of-life

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time

HSSMild steel Multi-Metal Ultra-light composite

Paint free

Collision Free

Autonomous

Driving

Past Now Next

Multi-Material

Future

Low VOC Coating Reduction Temp Reduction

Assisted DrivingHuman Driving

Convergence of Trends Over Time

Long-term trends favor increased composite use

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• Light vehicle represents a large (still) untapped market for composites

• Market forces and long-term trends favoring increased adoption of composites

• Potential to address challenges jointly to reduce risk and accelerate progress

In Conclusion