US-China Clean Truck and Bus Forum Webinar Market Access Issues and Upcoming Summit October 2, 2012 Bill Van Amburg, Kevin Beaty, CALSTART James Pruitt, US Department of Commerce Brad Hess, US Department of Commerce

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AGENDA » Intro/Background Forum

» Bill Van Amburg, CALSTART

» Market Access Issues » James Pruitt, US DOC

» Market Access Issues Discussion / Q&A » Jim Pruitt, DOC » Kevin Beaty, CALSTART » Webinar Participants

» MDCP Program and US-China Clean Truck and Bus Forum Intro » Brad Hess, US DOC

» China Summit Update and Opportunities » Bill Van Amburg, CALSTART

• Partnership with the US Department of Commerce/ International Trade Administration

• Goal: Help drive exports and business growth for US truck and bus technology companies with prime potential partners for advanced truck and bus technology in the Chinese market

www.chinacleantruck.org

China Market – Why “New Energy”?

» Roughly 50% of China’s transportation fuel goes to commercial trucks and buses – as opposed to less than a third in the US

» New Energy means using less fuel or using new fuels (electricity, natural gas, efficiency)

» China plans to subsidize new energy vehicles $12B Yuan ($1.76B) by 2012 – cars, trucks and buses – Goal – 500,000 vehicles by 2011; 4 million vehicles by 2015

U.S. Companies Have a Range of Key Technologies Valuable for China Export

Advanced Transmissions

Energy Storage and management

Electric Drive systems and components

Hybrid Drive systems and components

Power management and control

Advanced Combustion, Alt Fuel Systems and Control

Forum’s Main Activities

» Webinars and Workshops on key China business and market issues » Business Practices, IP – April 26

» Intellectual Property – May 31

» Briefing at HTUF – Sept 18

» Local Content Rules, SUMMIT opportunities – Oct 2

» China Business and Opportunities Guide specifically for the US M/HD tech market

» US-China Clean Truck and Bus SUMMIT in Beijing » Oct 30-Nov 1

• Targeted, exclusive meetings of US and Chinese tech leaders, early tech users and key government agencies

• Where: Beijing, Kempinski Hotel

• When: October 30 – November 1, 2012

• NOTE: register and book hotel by Nov 5 to get special rate

• Goals:

• Expand/create exports via targeted meetings and introductions for US tech companies with potential Chinese customers

US-China Clean Truck & Bus SUMMIT

Summit Benefits for US Firms

» Highly focused opportunity and networking meetings with top Chinese companies interested in new M/HD energy tech

» Increased profile for your firm and technology via briefings, private meetings, networking, resource guide

» First-hand connection to Chinese market, key drivers, from Chinese industry and government

» Unique focus on Chinese opportunities for advanced M/HD vehicles

» Opportunities for follow-on meetings, tech connections

Can You Still Take Part? » YES! » Contact CALSTART staff

» Susan Romeo – sromeo@calstart.org;

» Jamie Hall – jhall@calstart.org

» Or, just register on-line: www.chinacleantruck.org

» TO GET BEST RATE AT HOTEL, BOOK BY Oct 5

» We can help you connect to potential partners at meeting and show you opportunities for after

Observations

» 5 Year Plan calls for more hybrid and electric “new energy vehicles”

» Deployment programs behind schedule

» Seeing some signs of increasing willingness to import in order to hit targets

Restrictions and Requirements

» Only 60% of critical parts can be imported; remainder must be locally sourced (KPMG)

» Foreign companies limited to two JVs with a maximum of a 50% share in a joint venture

» Local transit agencies and others seem to prefer local domestic brands over imports

» Joint ventures formerly required to come out with domestic brand

Promising Signs

» Joint Commission on Commerce and Trade (JCCT) sending positive “official” signals » Tech transfer not required for New Energy Vehicles

(NEVs)

» Foreign companies eligible for equal subsidies and other EV programs

» Domestic brands not required for foreign companies

» New energy vehicles and materials added to “import catalogue” which means incentives

China Market Access Issues

James Pruitt, U.S. Department of Commerce

» International Trade Specialist, Office of China and Mongolia, U.S. Department of Commerce.

» Mr. Pruitt has worked in the Office of China and Mongolia for 7 years, helping companies with market access problems in China related to government procurement, innovation, transportation, and logistics.

» Before working for the Department of Commerce he worked in international marketing for a U.S. telecommunication equipment manufacturer.

» He has an International MBA from the University of South Carolina and has lived and worked in China.

QUESTIONS?

China Market Access Issues

Kevin Beaty, CALSTART » Vice President, High-Efficiency Truck Users

Forum (HTUF) Director » Worked for Eaton Corporation previously

and launched its hybrid electric business unit.

» Oversaw global product planning and supply chain. Extensive work in China and oversaw sales of several thousand hybrid drive units

» Has also worked in natural gas engines, engine controls systems and testing

» He has an MBA from Michigan State University - The Eli Broad Graduate School of Management and a BS in Mechanical Engineering from Texas A&M University

DISCUSSION

Market Development Cooperator Program (MDCP)

Brad Hess, U.S. Department of Commerce » Director, Market Development Cooperator Program;

Manufacturing and Services, International Trade Administration (ITA)

» MDCP program praised by several influential business groups as one of the most effective tools the federal government has to help U.S. industry to compete in global markets.

» Prior to directing MDCP, Brad led the non-profit FGI which produced “Man of the House” radio program.

» As an international trade specialist at Shearman & Sterling’s Washington, DC office, Brad advised clients worldwide whose survival depended on international trade. Has also investigated trade disputes for ITA and did production control work for an aerospace firm.

» A Truman Scholar, Brad received his Master of International Management from Thunderbird School of Global Management.

QUESTIONS?

Summit Structure Supports Finding Customers/Partners

» Briefing sessions on key issues of interest to US and Chinese firms

» Focused on medium- and heavy-duty segment and New Energy technologies

» Agenda broken up regularly with structured breaks encouraging meetings, networking

» A Networking Center room will be the site of regular breaks – each attending company will have a table top space

» Can both circulate and learn about companies, and try to schedule break meetings

Beijing Summit 2012 Agenda Day 1 » Co-welcome from China and US Policymakers

» China’s Interest in “New Energy” & Advanced Vehicles » The need for clean vehicles in China

» Emerging requirements and commitments

» OPEN AND STRUCTURED MEETINGS IN NETWORKING ROOM –

» China’s Truck and Bus Market: Shape & Key Distinctions » Market size and shape

» Spotlight on key trends and differences between US and China

» Networking Lunch

» China Technology Solutions and Interests » Spotlight on Chinese Industry Leaders

» US Technology Solutions and Interests » Spotlight on US Industry Leaders

» OPEN AND STRUCTURED MEETINGS IN NETWORKING ROOM - RECEPTION

Beijing Summit 2012 Agenda Day 2

» Role of Policy in China’s Truck and Bus Market » National emissions and efficiency standards

» Planned and existing incentive programs

» Business Success Stories – US and China » Partnership structures working in China

» Success stories

» OPEN AND STRUCTURED MEETINGS IN NETWORKING ROOM –

» Early Experiences with Advanced Trucks and Buses » What is working in China – local targets, commitments, pilot

programs, incentives

» What is working outside China –targets, commitments, programs

OPEN AND STRUCTURED MEETINGS IN NETWORKING ROOM –

US-China Clean Truck and Bus Summit - Sponsor

• Industry leader in advanced lithium-ion battery design, manufacturing

• World-class facility to produce high-quality batteries in Midland, Michigan

• Production capacity to export advanced batteries

Vice President Biden at Dow Kokam groundbreaking.

» Biggest diesel engine maker in world

» Largest player in China, expanding force in world market (Asia, Africa)

» Major natural gas production capability, developing integrated hybrid

» Leads CCNP, a “new energy” powertrain alliance

US-China Clean Truck and Bus Summit - Sponsor

US-China Clean Truck and Bus Summit - Sponsor

• Industry leader in hybrid electric and hybrid hydraulic drivelines for med/heavy duty trucks and buses

• Early exporter of components to China

• Adding electric vehicle recharging, advanced transmissions

US-China Clean Truck and Bus Summit - Sponsor

• Largest U.S. truck and engine maker

• Leader in advanced engine combustion tech, telematics, aerodynamics

• First mover in electric, hybrid drive systems, adding natural gas

• Export and JV focus

US-China Clean Truck and Bus Summit - Sponsor

• Fourth largest U.S. bank

• Leader in clean tech investments in energy, efficiency

• Will invest $30 B in sector by 2020

• Greenwich Excellence Awards for “middle market” company investments and international service

• Achates Power – advanced combustion engine

• BAE – advanced truck and bus hybrid drivelines, power electronics

• Caterpillar – stationary power, off-road equipment

• Evans Cooling - alternative, high-efficiency cooling fluids

• Gentherm – thermal power generation (waste heat recovery)

• Odyne – plug in hybrid truck technology, power electronics

• Quantum Technologies – advanced electric drive, power electronics and control, gaseous fuel storage and systems

• Smith EV – advanced electric trucks, components

• Sturman Industries – advanced engine design and combustion control

Examples of US Companies Planning to Attend

• CAERI – China Automotive Engineering Research Institute

• Dongfeng – largest full service truck maker in China

• FAW – leading truck maker of medium- and heavy-duty sized trucks

• Foton – bus and truck manufacturer

• Weichai Power – world’s largest diesel engine manufacturer; new capability in natural gas and hybrid drivelines

Examples of Chinese Companies Planning to Attend

• Shanghai & Shanghai Transit – plus users from 5 other major fleets

• SAIC Iveco HONGYAN

• On Haide Lang Batteries

• On Haiao Wei Technology

• CSR Times

• Dongfeng Commercial Vehicle Technical Center

• Fuel Power

• Shanghai Electric Drive

• Chinese Domain Electric Cars

• Sophistication Electric Technology (Beijing) Co., Ltd.

• JAC

• Nanjing Green Show Technology Co., Ltd.

• CITIC Guoan MGL

• Chongqing Qingling Motors Co. Ltd.

• YinTong Energy Systems

Can You Still Take Part? » YES!

» Contact CALSTART staff – Susan Romeo – sromeo@calstart.org; Jamie Hall – jhall@calstart.org

» Or, just register on-line: www.chinacleantruck.org

» TO GET BEST RATE AT HOTEL, BOOK BY Oct 5

» We can help you connect to potential partners at meeting and show you opportunities for after

Questions?

CHINA FINAL THOUGHTS

» Significant economic change and growth

» New administration takes over in October, seen as a “Year of Adjustment”

» Must grapple with impacts of growth: congestion, air and water pollution

» Important timing for “new energy” tech

» Face-to-face meetings critical to China success

» SUMMIT is low risk strategy for US companies: JOIN US!

CALSTART Clean Transportation Technologies

and Solutions