WEBINAR | 09.10.2019 LIGHTWEIGHTING USA & KANADALIGHT-WEIGHTING TRENDS IN AUTOMOTIVE USA & CANADA

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GETTING STARTED…

1. Introduction

2. Automotive Industry Snapshot USA

Speaker: Julius Bosak, Manager Business Development Automotive, Advantage Austria Chicago

3. Automotive Industry Snapshot Canada

Speaker: Christian Lassnig, Trade Commissioner, Advantage Austria Toronto

4. Keynote: Light-Weighting Trends in Automotive USA & Canada

Speaker: Philippe Dauphin, Director General, CanmetMATERIALS, Natural Resources Canada / Government of Canada

5. Q&A

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OVERVIEW

AUTOMOTIVE INDUSTRY SNAPSHOT USA

MARKET OVERVIEW & TRENDS

Market size (global): 2nd place (China 1st)14 OEMs (Original Equipment Manufacturers)Automotive exports 2018 : USD 2,6 BIL Jobs: 2,25 MIO (OEMs, suppliers, dealers) – directly connected to approx. 5 Mio. additional jobs

− Light vehicle sales: 2017 – 17,14 MIO2018 – 17,33 MIO (+0,6%) 2019* – 16,5 – 17,0 MIO (-0,5% YTD)

− Manufacturing: 2017 – 10,91 MIO 2018 – 11,18 MIO 2019* - 11,25 MIO

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INDUSTRY INDICATORS USA

Source: International Trade AdministrationSource : Wards Automotive

INDUSTRY INDICATORS USA

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Winners (Sales numbers):

Crossovers (39,6 % market share)

Pickups (16,0%)

SUV (8,5%)

Luxury Cars (6,4%)

Losers (Sales numbers):

Small Cars (12,4% market share)

Midsized Cars (10,5%)

Vans (5,3%)

Large Cars (1,2%)

Source : NADA.com

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Source : www.goodcarbadcar.net

MARKET PARTICIPANTS & CLUSTERSMarket shares (incl. Feb. 2019)

Source : US Census, NAICS codes 32621 (Tire Manufacturing) and 33630 (Motor Vehicle Parts Manufacturing)

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• Sales decreasing by 1,2% – 4%• Price increase (new vehicles)• Used vehicles readily available

• New investments in production facilities

• Continued growth in CUV/SUV segments

Risk factors:

• Section 232 Automotive tariffs

• Trade relations with China, Japan, EU and UK

• USMCA ratification process and timeline

• Continuation of Section 232 tariffs on Steel & Aluminum

TRENDS & FORECAST

Source : Center for Automotive Research

AUTOMOTIVE KANADAINDUSTRY SECTOR AND MARKET

CANADA AUTOMOTIVE INDUSTRY 2018

2 million cars, light trucks and SUV‘s produced

12% share in North American production

2 million vehicles sold (excluding heavy trucks, buses etc.)

5 OEM‘s producing in Canada

big domestic suppliers: MAGNA, Linamar, Martin Rea etc.

130,000 direct jobs in production of cars and components

402,000 direct and indirect jobs

45 Universities and Colleges with Automotive Programs

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CANADA - MARKET 2018 1,984,992 cars, SUV‘s and light trucks sold

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Rank Vehicle Units sold

1 Ford F-Serie 145.694

2 Dodge RAM 84.854

3 Honda Civic 69.005

4 GMC Sierra 56.242

5 Toyota RAV 4 55.385

6 Chevrolet Silverado 55.334

7 Honda CR-V 54.879

8 Toyota Corolla 48.796

9 Ford Escape 43.857

10 Hyundai Elantra 41.784

PRODUCTION IN CANADA 2018: 1,999,929 PKW, SUV und Light Trucks produced

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PRODUCTIONIN CANADA 1-7 2019 2018: 1,999,929 units

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Manufacturer 1-7 2018 1-7 2019 % Change

FCA total 316.597 291.754 -7,85%

Chrysler 300 40.267 37.915 -5,84%

Dodge Challenger 35.693 34.845 -2,38%

Dodge Charger 58.522 59.337 1,39%

Dodge Caravan 107.373 92.380 -13,96%

Chrysler Pacifica 74.742 67.277 -9,99%

FORD total 152.939 150.445 -1,63%

Ford GT 151 149 -1,32%

Ford Edge 110.890 100.062 -9,76%

Ford Flex 14.400 14.918 3,60%

Lincoln MKT 1.945 2.581 32,70%

Lincoln MKX 25.553 32.735 28,11%

GENERAL MOTORS total 155.192 158.701 2,26%

Cadillac XTS 10.318 10.183 -1,31%

Chevrolet Impala 20.418 24.360 19,31%

Chevrolet Equinox 124.456 124.158 -0,24%

HONDA total 255.632 237.696 -7,02%

Civic 123.626 115.454 -6,61%

CRV 132.006 122.242 -7,40%

TOYOTA total 306.031 260.782 -14,79%

Toyota Corolla 115.388 20.178 -82,51%

Lexus RX 350 54.168 51.202 -5,48%

Toyota RAV4 136.475 189.402 38,78%

Total Production 1.186.391 1.099.378 -7,33%

VALUE ADDED IN CANADIAN AUTOMOTIVE INDUSTRY

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AUTOMOTIVE SHIPMENTS AUSTRIA-CANADA 2018

Austria -> Canada 245,1 mio. EUR (20% of total exports)

Canada -> Austria 16,5 mio. EUR (4,85% of total exports)

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TRENDS IN VEHICLE LIGHTWEIGHTING

Webinar to Advantage Austria

October 9, 2019

Philippe Dauphin

Director General, NRCan

Outline

A. Natural Resources Canada

B. Trends in Vehicle Lightweighting

C. NRCan’s CanmetMATERIALS laboratory

D. Canadian R&D Ecosystem

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3

Areas of Focus: Oil sands and heavy oil

processes (incl. tailings, water management, bioprocessing, partial upgrading, future fuels)

Tight oil & gas

Oil spill recovery and response

Flaring, venting and emissions

Devon (CanmetENERGY)

Areas of Focus: Buildings and

communities energy efficiency

Industrial processes

Clean fossil energy

Bioenergy

Renewables

Varennes (CanmetENERGY)

A. Natural Resources Canada’s CANMET labs play a key role in Clean Energy and Clean Technology Innovation

Canmet scientists are internationally-recognized experts in key energy and advanced materials R&D:

Clean electricity

Renewables and bioenergy

Fossil fuels

Energy efficiency and improved industrial processes

Materials for energy

Hamilton (CanmetMATERIALS)Ottawa (CanmetENERGY)

Areas of Focus:

Buildings energy efficiency

Industrial processes

Energy solutions for Northern and remote communities

Integration of renewable and distributed energy resources

Areas of Focus:Advanced materials for Energy efficient end-use

(transportation and industry) Energy distribution (pipelines) Clean energy production

(nuclear and bioenergy) Defence and emerging materials Non-destructive testing

certification

A Key Issue: GHG Emissions – transportation sector 2nd largest emitter

Transportation represents ¼ of Canada’s GHG emissions

CAFE Standards - by 2025 fleet standards of 54.5 MPG (4.3 L/100 km)

• Harmonized regulatory environment with U.S.

Paris target - reduce emissions by 30% by 2030 compared to 2005 levels

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B. Trends in Vehicle Lightweighting

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Lightweighting is key to meet emission standards

Key issue in the automotive industry

Lightweighting supports:

• Reduction in overall vehicle weight to improve fuel economy

• Meeting the evolving demands of increasingly electrified vehicle platforms

• 10% reduction in vehicle weight can lead to an 8% improvement in fuel economy

Vehicle Lightweighting & Electrification

Lightweighting & Range Anxiety:

• A lighter car requires less battery power to move, which allows it to travel farther before it needs to be recharged

• Using lightweight materials in hybrid electric, plug-in hybrid electric, and electric vehicles can offset the weight of power systems such as batteries and electric motors, improving the efficiency and increasing their all-electric range

• The use of lightweight materials could result in needing a smaller and lower-cost battery while keeping the all-electric range of plug-in vehicles constant

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Key Lightweighting Challenges

Cost

• Using multiple materials will require manufacturers to add barriers between some metals, meaning an extra coating or material layers

• New manufacturing processes

Joining

• A key challenge is to cost-effectively join dissimilar materials while meeting increasingly stringent safety and performance standards

Materials Selection

• Although many materials show promise in reducing vehicle weight, there are pros and cons to each, ranging from production costs to property deficiencies

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Materials Selection for Lightweighting Applications

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• Pros: High strength, stiffness, formability, and corrosion performance

• Cons: High cost, wears out stamping molds. Challenges with forming, joining, design, component processing, and behavior in harsh environments

AHSS

• Pros: Fairly mature; good stiffness, strength, and energy absorption

• Cons: Cost, joining and formability issueAl

• Pros: High stiffness and strength, compatible with existing infrastructure for stamping

• Cons: Expensive & supply. Other challenges include ductility, joining, repair, recycling, and corrosion. Rare earth additives may be needed to improve crash performance

Mg

• Pros: High strength-to-weight ratio, high-temp performance

• Cons: High cost of materials, and formability challengesTi

• Pros: High stiffness, high strength, complex shapes, and offers tremendous weight savings

• Cons: Cost and difficulty joining. Supply of sufficient amounts of fiber to meet automotive needs

CFRP

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C. Who we are: CanmetMATERIALS

A team of 70+ material scientists and technologists focused on materials for energy

165,000 ft2 facility with 107,000 ft2 dedicated to materials research

Facilities in Hamilton, Ontarioand Calgary, Alberta

Part of NRCan’s Innovation and Energy Technology Sector (IETS)

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Core Strengths: Material Science & Unique Facilities

Pilot-scale, start-to-finish materials processing:

• Materials production: casting, rolling, forming

• Enabling technologies: joining, surface treatment

Scientific knowledge of the relationships between process / microstructure / properties

• Simultaneous product and process development

• Codes and standards development for evaluation and use

What we do: CanmetMATERIALS Research Priorities

Materials for Energy End-

Use (Transportation)

Materials for Pipelines

Materials for Clean Energy

Production

Materials for

Defence

Non-Destructive

Testing Certifying

Agency

A Matrix Organization: Functional Groups

• Innovative Casting

• Advanced Materials and Processes

– Metal Forming, Physical Simulation

• Integrated Computational Materials Engineering

• Joining and Structural Performance

– Welding and Joining, Mechanical Testing

• Materials Assessment

– Corrosion Assessment, Microstructural Characterization

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Materials for Transportation – Research Areas

Vehicle Lightweighting• To reduce structural and

chassis mass through materialsdevelopments

Energy Management Materials• Novel materials that can recover as

much of the 70% of waste heat of combustion as possible

Efficient Powertrain Materials• Development of materials that enable electrification and enhance combustion

efficiency

Key Partners

Source: US DOE

Material Critical Challenges

Multi-MaterialSystems Enablers

High Volume Joining (Fusion, Mechanical,

Adhesives)

Engineered Surfaces (Corrosion, Wear, Friction)

Predictive Modeling NDE & Life MonitoringRecycling

Carbon-FiberComposites

Low-cost High-Volume Manufacturing

Low-Cost Fibers Predictive Modeling Joining, NDE, Life

Monitoring & RepairRecycling (OFFAL /

Vehicle)

AluminumLow-cost Al

Manufacturing Processes

Improved Alloys (Body/Powertrain) for

Performance & Manufacturing

Joining Mixed Al ProductsRecycling

Vehicle

Ultra High-StrengthSteels

Improved Alloys for Room Temp Forming

Weldability for Dissimilar Steel Alloys

Predictive Modeling (Formability, Crash)

MagnesiumLow Cost Feedstock, Low

Carbon Footprint Production

Galvanic Corrosion Protection

Improved Alloys for Energy Absorption

Manufacturing (Sheet and Extrusions)

Recycling

GlazingsLow Cost Feedstock for

Polymer GlazingsLow Temp Processed

Chemically Toughened GlassDurable, Scratch Resistant,

UV Resistant Coatings

Metal / Ceramic Composites

Feedstock CostCompositing Methods Powder Handling Compaction

Machining & Forming

Increasing Need for R&D

Incr

eas

ing

Imp

act

on

Re

du

cin

g V

eh

icle

Mas

sMaterial Technology Roadmap

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Mg Control Arm Material Development

• Optimization

o Die-cast preform shape for minimum material use and maximum properties

o Forging process for maximum strength

o Die-casting process for engineered properties

• Industry Partners: Multimatic, Ford U Waterloo

Materials for Transportation – Project Highlights: Lightweighting

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Thin Wall Ferrous Alloy Castings

• Development of cast iron and stainless steel for elevated-temperature applications, including automotive exhaust components – manifolds, and turbocharger housings

o Development of vacuum-mold process for thinner wall castings

o Simulation of casting process and microstructures

• Industry Partner: Wescast Industries partner

Item Weight (lb)

Casting tree 29.30

4-mm wall 6.70

3-mm wall 5.84

%weight -13%

Materials for Transportation – Project Highlights: Lightweighting

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𝑑𝑐𝑟 ≥ 4 𝑡

New Equations

AWS:

Shear Test for Measuring Weld Nugget/HAZ Strength

Resistance Spot welding technology

• Develop novel Al-steel RSW process and test method to validate the transferability to a prototype Al hood inner panel with steel reinforcements

• General Motors partner

Mini-shear Test for Measuring IMC Strength

𝑑𝑐𝑟 ≥ 4𝑡 ൗ𝜏𝐻𝐴𝑍𝑓

𝜏𝑊𝑁𝑓

1 − 𝜀

For Al−Al RSWs:

𝑑𝑐𝑟 ≥ 4𝑡 ൗ𝜏𝐻𝐴𝑍𝑓

𝜏𝐼𝑀𝐶𝑓

1 − 𝜀

For Al−steel RSWs:

Materials for Transportation – Project Highlights: Lightweighting

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Electrical steels for traction motors• Pilot-scale production of non-oriented

electrical steel sheets

• Optimize the magnetic properties through texture and microstructure control

• Develop novel magnetic core lamination process

• Industry Partners:

D&V Electronics, Ford,

steel producers

Materials for Transportation – Project Highlights: Electrification

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National Research Council

• Lightweighting

• Composites

• Alternative propulsion

• Auto safety

University of Ontario Institute of Technology

• Climatic wind tunnel

McMaster University

• EV/HV powertrains

• Mechatronics

• Materials research

University of Windsor

• Powertrain research (electrification/ clean combustion)

University of Waterloo

• Advanced powertrains,

• Lightweighting

• Active safety

University of Western Ontario/Fraunhofer

• Project Centre for Composites Research

Innovative Vehicle Institute

• Electric/Hybrid tech

• Energy efficiency

• Vehicle intelligence

D. Canada’s Automotive R&D Ecosystem

PMG Technologies

• Vehicle test centre

• Validation

CanmetMATERIALS

• Lightweighting

• Metal processing

• Powertrain materials

University of British Columbia

• Lightweighting

• Manufacturing Automation

• Advanced materials

Thank YouQuestions?

UPCOMING EVENTS & CONTACTS

In USA:

Julius Bosak AUSSENWIRTSCHAFT AUSTRIA AußenwirtschaftsCenter Chicago

T +1 312 644 5556 DW 204

E chicago@wko.at

Wwko.at/aussenwirtschaft/us

In Kanada:

Christian Lassnig AUSSENWIRTSCHAFT AUSTRIA AußenwirtschaftsCenter Toronto

T +1 416 96 73 348

E toronto@wko.at

Wwko.at/aussenwirtschaft/ca

Keynote Speaker:

Philippe Dauphin

Director General, CanmetMATERIALS Natural Resources Canada /

Government of Canada

T +1 905-645-0698

E philippe.dauphin@canada.ca

W https://www.nrcan.gc.ca/

USA & CANADA: ADVANCED MANUFACTURING AND NEW MATERIALS IN AUTOMOTIVE 4. – 8. November 2019, Detroit, Michigan USA/ Waterloo, Ontario Canada

FUTURE OF MOBILITY

Silicon Valley, California, 2. – 6. December 2019

Detroit/ Ann Arbor, Michigan, 9. – 10. December 2019

CONSUMER ELECTRONICS SHOW CES 8. – 11. January 2020, Las Vegas, NV

AUTOMOTIVE TECH DAYS 2020 25. – 27. March 2020, Detroit, Michigan

WCX 2020 – SAE World Congress - Advantage Austria booth, 9. – 11. April 2020 | Detroit, MI