“Eco-Mobility 2012”

The Role of Automotive Supply Companies for

the Development of Alternative Mobility

System

Dr. Jean-Luc di Paola-Galloni

Corporate Vice-President for Sustainable Development and

External Affairs, Valeo

ERTRAC Vice-Chairman

11th and 12th of December 2012, Tech Gate Vienna

With the internal combustion engine, before electrification : what has the automotive industry achieved in 20 years

• Progress:

- Pollution divided by 20% in 20 years

- Since 30 years : + 20% power

+ 40% acceleration

- 40% consumption

- Gain in energy efficiency : + 50% minimum

UE USA ASIEEngine/liter 1,7 3,7 1,9Gasoline 50 95 80Diesel 50 5 20

Market situation – Regulation ImpactsCurrent CO2 emissions and 2020 objectives

g CO2/kml 100/kmmpg

23

25

27

29

32

36

40

46

53

64

11,5

10,7

9,8

9,0

8,1

7,3

6,4

5,6

4,7

3,8

A CO2 regulation decided in all regions, with ambitious objectives for 2020 will

influence the OEMs choice on technologies to develop.

20202020

95 g CO95 g CO22/km/km

4 l/100 km4 l/100 km

20152015

130g CO130g CO22/km /km

5,5 l/100 km5,5 l/100 km

20252025

54,5 mpg54,5 mpg

4,3 l/100 km4,3 l/100 km

20202020

117 g CO117 g CO22/km/km

5.0 l/100 km5.0 l/100 km

Coexistence of powertrain technologies and energies

R&D shared guidance…

European Road Transport System in 2030:

50% more efficient than today

Indicator Guiding Objective

Decarbonization

Energy efficiency : urban

passenger transport +80%

Energy efficiency : long-distance

freight transport +40%

Renewables in the energy pool

schedules

Biofuels : 25%

Electricity: 5%

Reliability

Reliability of transport

schedules +50%

Urban accessibility

Preserve

Improve where

possible

SafetyFatalities and severe injuries -60%

Cargo lost to theft and damage -70%

Guidance objectives for 2030

… tailored to meet the driving challenges for the future: Clean, safe, connected mobility

� Neutral CO2 emission balance

� Lighter materials

� Hybrid / pure EV concepts

DRIVE ECO-FRIENDLY� Dialogue with

other vehicles/traffic infrastructure

� Intelligent traffic mgmt

� Automatic warning on tail-end traffic jams

DRIVE SAFE AND SMART

� Situational automation of driving systems

� Integration of mobile devices and onboard electr.

� Flexible exterior/interior configurations

� Modification car window transparency

EASY COMFORT

� Variable power engines

� Power to be chosen/paid via mobile devices

� Flexible set-up changes of basic features

� Integration/use of external intelligence

MODULARITY

� Adapted engine for each market type

� Interior reduction to basic and simple functionalities

JUST GOOD ENOUGH AND CHEAP

Decarbonization and Reliability

� Improve reliability of transport schedules

� Preserve and improve urban accessibility

Diversity of Mobility Needs

Diversity of Mobility

Solutions

� Increase the energy efficiency

� Use renewables in the energy pool

THE INDUSTRY IS INVESTING2020 World Electrical Systems market

>7 B€ >30 B€>15 B€

Conventional

+ Stop-Start

= FLAT MARKET

2010 ���� 2020 = at least >16%

COMPOUND ANNUAL

GROWTH RATE (CAGR)

e-Motor + 8,9 B€

x 10,7 (CAGR)

Power Electronic

+17,7 B€ (CAGR)

X 12

ELECTRICAL SYSTEMS 2010-20 Growth

>250 B€

TOTAL POWERTRAIN MARKET

What kind of powertrain in 2030 ? 2030

0%9%

29%

1%0%

8%

9%

4%2%

12%

15%

10%18%

17%

12%

26%17%

28%

18%

17%

60%

17%10%

36%

Deglobalisation Learning green SR dvt Liberal WorldDeglo-

balisationLearning

GreenSRDvt

LiberalWorld

Internal Combustion Engines without electrification will disappear

Range Extender, Plug-in Hybrid & Mild become the mainstream out of the EV story

Percent of vehicles with pure electric drive is most affected by scenarios

Joint Work: OEM

Impact of shale gas in the US ?

97% ICE

3%

5%

3%

45%

39%

6%

2%

Thermal engine

Stop-StartMild Hybrid

Full HybridEV

PHEV/EREV

Technologies diversity

LaunchStop-Start

69%

26%

2%

97%

3%

Stop-Start growth

Valeo market vision for China H&EVForecast 2012-2022 by segment

27

19

159

38

54

51

6

45

18

22

0

50

100

150

200

250

2020

World Electrical Systems market towards 2020The industry is investing.

Source: PTS Databook & MTP

Release October 2010

Products Market Size 2010 (M€)

Market Size 2015(M€)

Market Size 2020 (M€)

CAGR 10-20

Alternator 2 964 3 402 2 554 -1%

Starter 1 803 1 763 1 240 -4%

Stop-Start (ReStart) 101 525 684 21%

Stop-Start (iStARS) 49 243 454 25%

EEM 12 V S/S 61 261 310 18%

Total Conventional 4 977 6 194 5 242 0,5%

Mild e-Motor 115 620 1 840 32%

Mild Power Elect 239 1 160 3 815 32%

HEV/EV e-Motor 809 2 900 8 031 26%

HEV/EV Power Elect 1 361 5 274 15 457 28%

Total Hybrid 2 524 9 954 29 143 28%

7,5 B€ 34,4 B€16,1 B€

Conventional

+ Stop-Start

= FLAT MARKET

2010-20

Growth

16% CAGR

e-Motor + 8,9 B€

x 10,7

Power Electronic

+17,7 B€

X 12

ELECTRICAL SYSTEMS260 B€

Several steps need to be overcome to let the hybrid and electric

market grow faster

Electrification and Hybridization Challenges

• Current hybrid technologies are to expensive compare to thermal vehicles

• Up to -40% in CO2 emissions

1. The CO2 gram costs between 60€ and 80€ because of battery and rare earths costs

���� An important overhead for the user

• Infrastructures need to be developed to plug quickly and easily those type of vehicles

• Lack of information for the final user about the autonomy and the performance of electrical vehicles

Following an integrated approach is paramount

To ensure Innovation &

Sustainability deliverables

Consumer

Information

labeling

Public

procurement

Infrastructure

and traffic

managementEco-driving

and driver

behaviour

Fuels

&

Energy

Motor

vehicles

Taxation and

fiscal measures

Consumer

&

Real World

Driving

Fleet

renewal

The evolution of industrial challenges

COMPONENTS

LIGHT MATERIALSRARE MATERIALS

(SCARCITY)

PRICE COMPETITIVENESS

ADAPTED TECHNOLOGY TOMARKET DEMAND

MODULARITY

FLEXIBLE SET-UP BASICFEATURES

CONNECTIVITY

CONNECTED SYSTEMS

CHALLENGES FOR KEY TIER 1 INNOVATIVE

Tiers 2/3/4 Tier 1 OEM ����

Final customers

Users

Impacted population

Society

1-AFFORDABLE AND RELIABLE MANUFACTURING�UNPREDICTABLE RAMP-UP�NEW COMPETITORS�ALTERNATIVE COMMODITIES�MARKET VOLATILITY

SUSTAINABLE INNOVATION AND SUSTAINABLE INNOVATION AND

PRODUCTIONPRODUCTION

3- SUSTAINABILITY FOR �PRODUCTS�PROCESS�LOGISTICS

� AVAILABILITY/SCARCITY of materials (rare earths)

2-INTEGRATED APPROACH

�(=KEY FROM SMEs TO TIERS1 IN THE WHOLE SUPPLY CHAIN)�WORKFORCES IN A GLOBAL COMPETITIVE CONTEXT

� SKILLS

Expected adaptations within the automotive supply chain

RESEARCH AND INNNOVATION to�Assess �Anticipate �Predict�Deliver �Set up resilience

EXCELLENCE AND RELIABILITY IN PRODUCTION in order to

ensure sustainable mobility solutions :

�At the right level of cost �At the correct level reliability�With a coherent protection of talented workforce

� To ensure a market introduction/expansion� To ensure a consumer friendly approach� To deliver effectiveness in environmental progress

SUSTAINABLE INNOVATION SUSTAINABLE INNOVATION AND AND

PRODUCTIONPRODUCTION

Expected adaptations within the automotive supply chain

ITIT’’S A CONSTANT S A CONSTANT WORK IN WORK IN

PROGRESSPROGRESS

RESEARCH ASSESSMENT in the field of global productionThe whole supply chain towards GLOBAL PLATFORMS system of production (an important trend for Manufacturers)

ADVANCED RESEARCH in the field of MATERIAL COMPONENTSLooking for alternatives to rare/expensive materials Field reinforcing the link between research community and industry

RESEARCH and INDUSTRIAL POLICY to tackle the LOCALIZATION FACTOR (geography/competence/market) of the WHOLE SUPPLY CHAIN (with a particular focus on smaller and yet essential SUPPLIERS)

A WORLD TREND : Automotive sector : OEMs + Tiers1

• Innovation :

- 10% of gross turnover

- Top 20 paterns depositary in Europe

- Employers lab/universities

180

120

Distribution of R&D expenses in the automotive industry

2002 2004 2006 2008 2010

OEMs

Suppliers

100

What kind of multi-approach solutions for a Supplier Tiers 1 such as Valeo?

• Powertrain

• Visibility

• Thermal

• Connectivity

•Hybrid and electrics

Powertrain Systems

Electrical Systems(Starters & Alternators)

Transmissions Systems(Clutches & Torque converters)

Engine Management Systems(ECUs, Injectors, Ignition..)

Air Management Systems(EGR and Intake modules)

Hybrid & Electric Vehicle Systems(Inverters, Chargers, Motors, Systemcontrol units…)

Valeo Hybrid and EV products portofolioH&EV Market

MICRO MILD FULL

+ Kinetic Energy Recovery+ Engine Assistance

+ Electric Take-off

Peugeot 508

Mercedes S400

Peugeot 3008

Toyota Prius 3

Smart GM VoltRenault Fluence

Nissan Leaf

Honda Insight

Toyota Prius + Electric Drive

BEV

Valeo is proposing a range of electrical machines from 5 to 70 kW and

a full range of electronics (inverter, DC/DC converters, inverter

charger)

PHEV / EREV

Buick Lacrosse

+ Stop & Start

Valeo range of electrical machine

Valeo range of power electronics

Belt-driven starter-alternators i-StARS

Starters and alternators

Circular flat E-motors up to 70kW for full hybrids

and range extender generators

Cylindrical e-Motors up to 15kW for mild hybrids

Conventional Systems

Micro Hybrids

Mild / Full Hybrids

Reinforced starters: ReStartwith or without Reflex Start

Hybrids & EV Valeo products portofolioElectrical Systems Roadmap

Valeo Approach

Design approch to cost to offer the best ratio between system cost and CO2 gain

• Up to 15% of CO2 reduction

• A cost twice cheaper than Mild ISG solutions found on the market

• A plug and play solution (no need of gearbox redesign, electrical machine that replace alternator)

• Voltage : 48V (no security constraint)

• Electrical machine Machine électrique on the belt front

• DC/DC Converter 48 – 12 V (2,5 kW, bidirectionnel)

• Pack Ucap ou Lithium Ion*

Democar

* Developed by Partner

Focus Mild HybridHybrid4All

Visibility Systems

Front Lighting Systems

Rear Signaling Systems

Front Wiper Systems

Rear Wiper Systems

Valeo Visibility

Valeo thermal solutions for EVs

Electrical Driven Compressor Cabin Heating Solutions

Battery Thermal Management Thermo Accumulator

� Compactness & efficiency

� Range extension

• Heat pump systems: energy efficiency break through

� Full set of solutions for battery reliability and power availability

Inner condenser Condenser evaporator

���� Comfort, pre-heating/heating, electric engine cooling, air-

conditioning

Special EV Functions:Special EV Functions:

Check Battery Status & AutonomyCheck Battery Status & Autonomy

Valeo Connectivity

Start Preconditioning in charge Start Preconditioning in charge

modemode

• Smart Key/car link

Smart Car Key + pre-conditioning for increased range

Valeo Connectivity

• Automatic Vehicle Docking

(Dock4U)

� For battery replacement or plug-in station

– On-going Amare-ModuloWatt

public project with Valeo sensors

Soft infrastructure research

Image: Modulowatt Association

Take Away

� Constant market cautiousness

� The auto industry needs to better interface/liaise with energy/ grids/mobility management/ social/societal acceptance.

Multi-stakeholder and system approach :

� ERTRAC - European Road Transport Research Advisory Council

Gather stakeholders of the transport research community.

� European Green Vehicules Initiative - Public-Private Partnership

PPP with European Commission and EU Member States

To be developed and reinforced in the future...

���� Implement the innovative products in the market and always respects OEMs requests

Urban mobility has to improve the inter-connection between :

• public

• private transport

Vehicles of tomorrow could become

• a second office

• an alternative source of energy

Re-positioning of mobility in society

THANK YOU FOR YOUR ATTENTION

VIELEN DANK