2

Local Motors demonstrates why the auto industry is primed for disruption

Industry executives suggest three primary disruptors to the industry over the next decade:

75% said non-traditional industry participants will have a key role in the consumer-driven mobility ecosystem

More than 50% indicated they would utilize co-creation with consumersacross key organizational functions

73% rated collaboration with other industries as the best opportunity for industry growth

…all of these align directly with Local Motors strategyhttps://ibm.biz/Auto2025

IBM published Automotive 2025 in January/2015…

…based on interviews with 175 industry executives

5

Olli is a revolutionary concept for urban mobility solutions

• Olli is a self-driving, electric-powered mini-bus requiring no in-vehicle attendant to control him

• Olli is more than a vehicle, it will be an ecosystem as they will all be interconnected

• Olli is cognitive and passengers communicate with him through natural language

• Olli will have personality, he will know you and understand you

• Olli can transport people, cargo, deliver food and be extended to many applications

http://meetolli.auto

With Olli, the future of mobility is now.

7

Olli is extensively instrumented for self-drving operation

Olli contains over 30 sensors to enable self-driving and passenger interaction…

Forward facing LIDAR (3)Rear facing LIDAR (1)

Wheel speed sensors (4)Wheel speed sensors (4)

Window fog sensors (2)

Passenger Counter

Interior Cameras (2) Exterior temperature sensor

Interior temperature sensor

…an additional 3-5 radar and 4 ultrasonic sensors will be evaluated during the trial period for further obstacle detection

Stereo camera (sign recognition)

Impact sensors (2)

Suspension rotation sensors (2)Suspension rotation sensors (2)

Suspension height sensors (2)

GPS

Odometer sensors (4)

12

Cognitive interface flow to respond to passengersOllie responds to several specific use cases at this time:• Informational Q&A

How are you able to self-drive?

• Operational Queries & CommandsWhat is the temperature in here?

• Vehicle Focused QueriesWhat is our speed? Why did you stop?

• Local Interest & MobilityWhere is the best taco? Seafood?

• Rider Surveys & FeedbackWhat do you like? How can I improve?

Natural LanguageClassifier (NLC)

IoTFoundation

Cloudant NoSQL DB

IoT data

Dialog

Speech to Text (STT) Text to Speech (TTS)

ResponseProcessing

Weather API, Yelp API

MQTT

Interpret Response

AskOlli

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Mobile Services

There three primary applications for Olli that will be tested

Downtown CirculatorAny relatively dense area with medium to high walkability

Feeder LineShuttle from one destination to a larger transit hub -- could have multiple stops

Campus ShuttleIntra-campus mobility

ConsumerOn-demand or scheduled deliveries; short-term asset storage w/ flex pricing

CommercialPromotional or long-term product distribution

IndustrialJust-in-time supply chain

First Responder/SecuritySecured equipment transport; surveillance

Surge AdvertisingGeo-located, demand-based promotion

Mobile Meeting/NappingOn-the-go productivity or relaxation

Passenger Cargo

9

Co-creation is the key to rapid innovationDesign to Sourcing to Manufacturing to Systems Development utilized extensive co-creation and partner ecosystem

Co-creation of cognitive rider experience and IoT integration with self driving system and sensors

45 days

Sourcing plus manufacturing completed through Kanban process combining space frame and DDM techniques. Printed 25 molds in 3 days

90 days

Berlin Urban Mobility 2030 Challenge 1st place winning design by LM Labs community member

~ One year out