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How Domestic Companies Partner with Foreign Companies Ralph Hulseman Michelin Americas Research Company June 17, 2008

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How Domestic Companies Partner

with Foreign Companies

Ralph HulsemanMichelin Americas Research

CompanyJune 17, 2008

Page 2

Key PointsKey Points

Michelin Overview

Transition From Regional to Global R&D

Example Program

Some Ideas for Reforming the US Government Role

Page 3

Michelin OverviewMichelin Overview

Page 4

Our Mission:Our Mission:Contribute to the progress of mobilityContribute to the progress of mobility

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Demonstrating the mechanics of the

radial tire

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Skid Steer

iBOT

Car

TweelTM: Future of Mobility?

NASA Athlete Rover

Page 9

Transition From Regional to Global R&D

Page 10

Michelin R&D Michelin R&D CircaCirca 1995:1995:RegionalRegional OrientedOriented

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Michelin R&D 2008:Michelin R&D 2008:Unified Global StructureUnified Global Structure

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Impact on Michelin Americas R&DImpact on Michelin Americas R&DApprox. 1000 employees, on-site and distributed, in 2008

60% degreed scientists and engineers from 28 different countries

>20 families out on long term foreign assignment

>20 families in on long term foreign assignment

15 of 17 R&D senior managers have multi-year foreign assignment experience

> 200 engineers fluent in 2nd or 3rd language

Extensive use of international collaboration tools:culture and diversity training

telephone, email, web seminar, video conferencing, int. travel

Wide use of multi-country project teams

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Global R&D: The Main Challenges

Technical Management ChallengeDecision making: local versus global

Relationships ChallengeGlobal Distribution of Missions and Talents

People DevelopmentCultural awareness

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Example R&D Program: Mercedes R Class

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Customer view: DaimlerCustomer view: Daimler--BenzBenzVehicle R&D - Stuttgart, Germany

Vehicle production – Vance, Alabama

Vehicle track testing – Barcelona, Spain and Transvaal, South Africa

Vehicle sales in over 150 countries

Required 26 unique tire fitments

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Supplier view: MichelinSupplier view: MichelinTeam

– Project leader – Greenville, SC– Technical marketing leader – Karlsruhe, Germany– Project lead test driver – Clermont-Ferrand, France– Tire R&D – 2/3 USA, 1/3 France– Regulatory team – US, China, France, Japan– Weekly virtual team meetings; Bi-monthly meetings Barcelona,

Stuttgart, Vance, …Tire production –US, Can., France, Spain

> 75 country specific regulatory and safety compliance packages

Tire sales and support in over 150 countries

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Photo courtesy of NASA Jet Propulsion Lab, 2006

Some Ideas for Some Ideas for Reforming the US Reforming the US Government RoleGovernment Role

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Securing Our FutureSecuring Our FutureInternational experience for STEM graduates– 6 months abroad for MS, PhD

Level global R&D playing field– competitive incentives

Leadership in global standards and regulationsMove from closed to open R&D practices on a global scale

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SummarySummaryCompanies that partner R&D on a global scale will be the future winners

US R&D competitiveness could be enhanced:– International experience for STEM graduates

– Competitive incentives

– Standards and regulatory leadership

– Open collaboration world-wide

Questions?Questions?