Great Opportunities for Lightweight Solutions

Automotive Lightweight Materials 360 Degree View

2

Focus Points

• Introduction to Mega Trends• The Importance of Lightweighting Vehicles• Market Challenges• How Will it be Achieved• Impact on the Chemical Industry• Opportunities and Things to Consider

3

Mega Trends Create Opportunities and Threats for Chemicals and Materials

Primary research through the global value chain, technology and legislation drivers, qualitative and quantitative analysisPrimary research through the global value chain, technology and legislation drivers, qualitative and quantitative analysis

Drive to lower CO2 emissions

UrbanisationGlobalisation

Growth in electric vehiclesNew OEMs emergingSmaller, lighter, greener vehiclesHigh speed rail50% of automobile sales from BRIC

Opportunities for:PolymersBattery materials and

chemicalsGreen fuels and lubricantsAdvanced adhesives

Threats to:MetalsMetal treatment & coatingGlassAdditives for fossil fuels

Mega Trends

Transportation Trends

Impact for Chemicals and

Materials

Mega Trends

Transportation Trends

Impact for Chemicals and

Materials

• Drive to lower CO2 emissions

• Urbanisation• Globalisation

• Growth in electric vehicles• New OEMs emerging• Smaller, lighter, greener vehicles• High speed rail• 50% of automobile sales from BRIC

Opportunities for:• Polymers• Battery materials and

chemicals• Green fuels and lubricants• Advanced adhesives

Threats to:• Metals• Metal treatment & coating• Glass• Additives for fossil fuels

4

Lightweight Design is the Solution to Address Many Mega Trends

......

Lower CO2 emissions

Bio-basedmaterials

NVH isolation

Enhance vehicle safety

Increase recycling and recyclability

Automotive Mega TrendsAutomotive Mega Trends

Improve fuel economy

Improve fuel economy

Several trends mentioned above are achievable through lightweight vehicle construction. As a result, global automotive

OEMs are in the process of downsizing their vehicle weight by using alternative (lightweight) materials in their vehicle

construction.

Source: Frost & Sullivan

5

Objectives of Lightweighting

Primary objectives of vehicle weight reduction

Secondary objectives of vehicle weight reduction

Increasing Fuel Economy

Reducing CO2 Emissions

Improved Vehicle

Dynamics

Improved Braking

6

Vehicle Weight Reduction - An OverviewIncrease in small car demand to drive down average vehicle weight, with a reduction of 8 to 15kg year on year in Europe

1000

1500

2000

2002 2004 2006 2009 2011 2015

USA

EuropeEurope

OEM Weight Reduction Strategies: Vehicle Weight Reduction Forecasts (Europe, The United States), 2002-2015

Weig

ht

(in

kg

)W

eig

ht

(in

kg

)

YearYear

1,250

1815 (0.79) %+

CAGR

(0.68%)+

CAGR

0

1250

2500

0

3

6

Vehicle Segments

Wei

gh

t in

kg

Un

it V

olu

mes

in M

illio

n

0

1500

3000

0

2

3

Vehicle Segments

Wei

gh

t in

kg

Un

it V

olu

mes

in M

illio

n

Key: Small Low Medium High Medium Executive Super Luxury Sports MPV SUV Unit VolumesBasic

1730

1200

7

Legislation is also a Driver for Lightweighting

•CO2 emission regulation and the CAFE regulation are the key drivers of weight reduction.•According to the Kyoto protocol, the most industrialised countries have to achieve an emission reduction of 5.2 per cent, as compared against the level in 1990, between 2008 and 2012.

Japanese weight class fuel economy standards

Japanese weight class fuel economy standards

CO2 Emission regulationCO2 Emission regulation

1. US – Corporate Average Fuel Economy

2. California – Greenhouse gas emission regulation

1. US – Corporate Average Fuel Economy

2. California – Greenhouse gas emission regulation

China’s automotive fuel economy standards

China’s automotive fuel economy standards

Taiwan’s fuel economy standards

Taiwan’s fuel economy standards

South Korea’s Average Fuel Economy Standards

South Korea’s Average Fuel Economy Standards

Australian average fuel consumption and FCAI targets

Australian average fuel consumption and FCAI targets

Region Type Measure Structure

Fuel mpg Vehicle-type based

CO2 g/kmVehicle-segment

based

Fuel km/L Vehicle-weight based

Fuel L/100-km Vehicle-weight based

Fuel L/100-km ~

Fuel L/100-kmVehicle-engine size

based

Fuel L/100-kmVehicle-engine size

based

China

USA

EuropeEurope

JapanJapan

Australia

South Korea

Taiwan



04/18/238

Vehicle Weight Classification (Europe)More weight reduction opportunity in welter segment to manage the fleet CO2 average

50

100

150

200

250

300

350

500 1000 1500 2000 2500


Fiat New PandaFiat New Panda

Fiat 500Fiat 500

Ford FiestaFord

Fiesta

Renault Clio

Renault Clio

Peugeot 206/207/208

Peugeot 206/207/208

Volkswagen GolfVolkswagen Golf

Ford FocusFord Focus

Toyota Prius

Toyota Prius

Nissan QashqaiNissan

Qashqai

BMW 3 Series BMW 3 Series

Mercedes-Benz E-ClassMercedes-

Benz E-Class

BMW 5 SeriesBMW 5 Series

Audi Q5Audi Q5

BMW X3BMW X3


Mercedes-Benz S-ClassMercedes-Benz S-Class

Volkswagen TouaregVolkswagen Touareg

Bantam WeightBantam WeightBantam WeightBantam Weight Cruiser WeightCruiser WeightCruiser WeightCruiser Weight Heavy WeightHeavy WeightHeavy WeightHeavy WeightWelter WeightWelter WeightWelter WeightWelter Weight

Co2 Target of 130 g/kmCo2 Target of 130 g/kmCo2 Target of 130 g/kmCo2 Target of 130 g/kmCO

2 e

mis

sio

ns (

in g

/km

)C

O2

em

issio

ns (

in g

/km

)

Weight in kg* Size of the bubble – Sales Volume 2009

04/18/239

Vehicle Weight Band - The United States: Reduction in vehicle weight in the Welter and the Cruiser segments to boost the fleet average mpg of CAFE

Smart fortwoSmart fortwo

Toyota YarisToyota Yaris

Toyota CorollaToyota Corolla

Toyota PriusToyota Prius

Honda Civic HybridHonda Civic Hybrid

Toyota CamryToyota Camry

Chevrolet HHRChevrolet HHR

Ford MustangFord Mustang

VW JettaVW JettaNissan Altima HybridNissan Altima Hybrid

Toyota Camry HybridToyota Camry Hybrid


Mercedes-Benz C ClassMercedes-Benz C Class

Toyota HighlanderToyota Highlander

Dodge ChargerDodge

Charger

Dodge CaravanDodge Caravan Chevrolet TrailblazerChevrolet Trailblazer

Ford ExplorerFord Explorer

Honda OdysseyHonda Odyssey

Chevrolet TahoeChevrolet Tahoe

Ford ExpeditionFord Expedition

Chevrolet SuburbanChevrolet Suburban

Bantam WeightBantam WeightBantam WeightBantam Weight Cruiser WeightCruiser WeightCruiser WeightCruiser Weight Heavy WeightHeavy WeightHeavy WeightHeavy WeightWelter WeightWelter WeightWelter WeightWelter Weight

Fu

el C

on

sum

ptio

n (

mp

g)

Weight (kg)

CAFE target of 35.5 to CAFE target of 35.5 to 39.0 mpg39.0 mpg

CAFE target of 35.5 to CAFE target of 35.5 to 39.0 mpg39.0 mpg

• Size of the bubble – Sales Volume 2010• # Weight band labels are used only for the reference purpose

USA

More opportunity for weight reduction and the OEMs in this weight category are under pressure to reduce mass in their respective models.

The United States will witness launch of more super-mini models in the Bantam weight band


10

15

20

25

30

35

40

45

50

55

500 1000 1500 2000 2500 3000

Honda Civic

Honda Civic Honda

AccordHonda Accord

10

Legislation Incompatibility Makes Using Lightweight Materials Difficult

End-of-life Regulation

• EU’s End-of-life Vehicles Directive (2000/53/EC) places a responsibility on the vehicle manufacturers to eliminate certain heavy metals and use only recyclable materials.

• Approximately 85 per cent of the material in the end-of-life vehicles should be recyclable by 2015.

• This leaves the vehicle manufacturers with strict targets for the type of materials that can be used in the vehicle.

European Union – CO2 regulation

• The European Parliament mandates car manufacturers to cut car emissions from the current level of 160 g/km of CO2 to 130 g/km by 2012-2015.

• OEMS are required to assure that 65 per cent of the newly registered cars have an average emission level of 130 g/km by 2012, 75 per cent by 2013, 80 per cent by 2014 and finally, 100 per cent by 2015.

• OEMs exceeding the limits will be penalised by paying an incremental premium for each kilometre driven.

EOL recycling prevents thermoset composite use and also hinders the introduction of new innovative plastics. Established commodity plastics gain however due to established recycling infrastructure

11

Methods of Weight Reduction

Low

CO

ST I

NC

REA

SE

WEIGHT REDUCTION

Hig

h

Low High

Long

Term

Shor

t Te

rm

Med

ium

Medium

Med

ium

Ter

mTI

ME

PERI

OD

OLED

Design optimization Design optimization and functional and functional

integrationintegration

Design optimization Design optimization and functional and functional

integrationintegration

Alternate Alternate lightweight lightweight

materialmaterial

Alternate Alternate lightweight lightweight

materialmaterial

New designNew designNew designNew designDevelopment of new systems requires extensive R&D and a complete rethinking of design elements to tailor the system to be region specific. This is applicable to both existing and new vehicles.

A few examples are the new lightweight vehicle concept T25 by Gordon Murray Design Limited, and the redesigning of the suspension in Mazda 2 by shortening the training are on the rear axle. This is expected to be done on a long-term basis when modelling a new generation vehicle.

In certain systems, replacing heavy material with lighter alternatives will reduce weight, but the cost may increase depending on the type of material selected.

Material selection is based on the cost affordability factor for each vehicle model/segment. For example, extensive aluminium roof panels were used on steel BIW in the 2009 BMW 7 Series.

Elimination/redesign of certain components that are not vital to the performance of a low cost system helps in weight reduction, for example, removal of brake booster in Tata Nano.Reduction in part count in exhaust offered weight reduction and space optimisation in Mazda 2.

lightweighting Mega Trend Effect on Chemicals and Materials Demand: OEM‘s Weight Reduction Methods (World), 2009-2016


12

Vehicle Weight Reduction Has Many Approaches

Increase in vehicle dimension–longer, wider and taller cars

Increase in vehicle strength stiffness –for improved Noice, Vibration and Harshness (NVH) and handling

Adding comfort systems such as air conditioning and seats

Adding special features like infotainment and other electrical systems

Adding occupant safety systems such as airbags and pre-tensioners

Adding performance improvement systems for better acceleration, handling and braking

Adding emission treatment systems

Use of High Strength Steel (HSS) and Advanced High Strength Steel (AHSS)

Use of aluminium*

Use of magnesium, plastics and composites*

Changing vehicle dimension as in the Mazda 2

Redesign of certain systems in a car such as the suspension system in Mazda 2

Downsizing of engine by 30% and adding turbo-chargers

Replacing hydraulic power steering with electric power steering

30%

20%

15%

15%

12%

5%

5%

(21)%

(33)%

(8)%

(4)%

(20)%

(10)%

(4)%

750 kg750 kg

1500 kg1500 kg

1400 kg1400 kg

Weight Increase over a period of time

~ 750 kg+

~ (100) kg-

Weight decrease

Weight (kg)

Potential areas of weight reduction

* Applicable on different systems based on the cost feasibility.

(Systems: Powertrain, chassis, body, interiors and others)

The percentage mentioned are the fractions of the total weight reduced (100kg).

The percentage mentioned are the fractions of the total weight increase(750kg).

1970

19

70

2000

2000

2011

2011

Year

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

13

Weight Reduction Techniques

Unibody design and BIW1.7 kg reduction by use of high-strength steel and new structural adhesives

Downsizing and Turbocharging Engine downsizing of 30 per cent reduces 10-20 per cent of the total weight of the car and 10-20 per cent CO2 emissions.

For example, Ford’s replacement of its V8 engine with V6 engine and 6 cylinder with 4 cylinder

Aluminium in rear suspension control arm

Offers up to 45 per cent weight reduction

High-strength steel in McPherson strut

20 per cent reduction with structural components built using high-strength steel

40 per cent reduction by use of hollow piston rods

Aluminium steering knuckles

Offers approximately 50 per cent weight reduction

Hollow seat frames and thin seat foams

Weight reduction of 4.9 kg in the 2008 Ford Focus by the use of hollow seat structure and lightweight foam

Laminated glazingThinner and stronger laminated glass windshield or windows, Approximately 10-12 per cent weight savings

Lightweight cooling system

Modular integration of radiator and cooling fan and modular integration of air conditioning and transmission coolers leads to approximately 1-5 kg weight reduction.

Electric power steering Removal of mechanical

components Use of aluminium and

magnesium in the steering components

Weight savings of approximately4-5 kg

Adopting hydro-forming technology on chassis frame

Offers 20 per cent weight reduction

Aluminium brake callipers Replacement of steel by

aluminium Weight reduction by 3.4 kg Used in Ford Focus

Powertrain

Chassis

Interior and Exterior

KeyKey

Sou

rce:

Fro

st &

Sul

livan

Aluminium door modules, hood and fenders

Aluminium wheel Offers 10 kg of reduction Use of aluminium wheels

by two-thirds of Ford’s fleet

04/18/2314

Key Weight Reduction Techniques vs. Cost Difference: Volume manufacturers to increasingly adopt the use of aluminium in the long run

Lo

wM

ed

ium

Hig

h

Cost

IncreaseC

ost Reduction

Co

stC

ost

Low(0-20%)

Medium(20%-40%)

High(More than 40%)

Aluminium Front wishboneAluminium Front wishbone

Substituting mono-tube for twin-tube shocks

Substituting mono-tube for twin-tube shocks

Aluminium Steering KnucklesAluminium Steering Knuckles

Aluminium Rear Suspension Cross memberAluminium Rear Suspension Cross member

Aluminium Rear Suspension Control ArmAluminium Rear Suspension Control Arm

Aluminium Brake Callipers Aluminium Brake Callipers

Seats hollow frame structureSeats hollow frame structure

Uni Body designUni Body design

Hydro-forming technology on chassis frameHydro-forming technology on chassis frame

McPherson strut – Use of high-strength steels and assembled piston rods

McPherson strut – Use of high-strength steels and assembled piston rods

HSS Suspension

Spring

HSS Suspension

Spring

Engine downsizing by 30% and turbo-

charging

Engine downsizing by 30% and turbo-

charging

Engine downsizing by 30%Engine downsizing by 30%

Suspension Steering Braking Powertrain Interiors Body and FrameKey:Key:Weight Reduction Weight Reduction

Ado

pted

in V

olum

e S

egm

ent

Ado

pted

in L

ower

-Med

ium

S

egm

ent O

nwar

ds

Hig

h

Engine downsizing is a cost affordable solution to be adopted across all vehicle segments.

It offers both weight reduction and direct CO2 emission reduction.

OEMs will adopt turbo charging to maintain/increase the engine performance

These are the key techniques used by the OEMs in the volume segment vehicles

These techniques which are currently employed in lower-medium segment ownwards will be implemented in the volume segment vehicles on a long run.

Medium(20%-40%)

(0-40%)

(0-20%)

(20%-40%

)M

ore than 40%


04/18/2315

Key OEM’s Material Preference – Some Are More Forward Thinking Than Others

High level of uncertainty

and risk

High Exotic Material Use

Low level of uncertainty

and risk

Low Exotic Material Use

OEMs focused on using steel (inc. some high strength steel) have a low level of uncertainty

and risk in their strategy

Audi, amongst the more mature users of exotic materials leading the way for their use of Aluminium. At the same time they have a high level of expertise in material use and development, therefore has a

relatively low level of uncertainty and risk

Seeking advancements in steels (such as Twinning induced

plasticity (TWIP) steel and Boron Steel) but needs to be verified

TH!NK already an advanced user of Aluminium and for future models are likely to move to less

exotic materials

Mercedes-Benz seeking design advantages through exotic material

use (including aluminium and magnesium)

Higher exotic material use repositioning

expected in short-term

Lower exotic material use repositioning

expected in short-term Based on: Combined feedback form respondents

More focus on HSS and AHSS

16

Decision Making Structure for Weight Reduction

Lightweighting Mega Trend Effect on Chemicals and Materials Demand: Lightweighting Mega Trend Effect on Chemicals and Materials Demand: OEM Weight Reduction Organization Analysis, (World), 2009

Product Development

DevelopmentFinance Production

Advanced Engineering

Head of Purchasing,

Body Exterior

Purchasing and Supplier Network

Chief Engineer

Commodity/System/Product Engineer – Body Engineering

Vehicle Engineering Manager

Weight Reduction Manager

Purchasing Manager, Body Engineering

Chairman – Board of ManagementChairman – Board of ManagementChairman – Board of ManagementChairman – Board of Management

Finance

Other Departments

Develops the concept based on inputs from the market/technology research team

Takes the decision on whether to go ahead with the concept

Takes ownership of the whole product development

Takes the responsibility to balance all attributes of the product

Decides on the total weight of the vehicle and sets weight targets for individual systems/components

Key Decision maker for supplier sectionKey

influencers for supplier section

Takes the responsibility of developing individual systems/components by complying to specified targets.

Source : Frost & Sullivan

17

“Exotic” Material Breakdown Based on Volumes

Introduction to the Market: Materials Breakdown based on Volumes (World), 2010

Note: All figures are rounded; the base year is 2010. Source: Frost & SullivanNote: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

26.5%

36.0%

2.7%

19.4%

3.2%6.9%

1.3%0.8%3.2%

AHSS Aluminium Magnesium PP PA PU ABS Thermosets HPP

Total Volumes: 15,896.5 Kilo Tonnes

18

AHSS will be the Clear Winner in the Exotic Materials Market

Materials Breakdown based on Volumes (World), 2010 Materials Breakdown based on Volumes (World), 2017

• All “exotic” materials will grow at the expense of traditional steel• AHSS will be favoured compared to other materials however, as it uses existing

plant infrastructure, performance characteristics are well known allowing easier and cheaper design, low cost which fits well with the volume models

• Urban (EV) vehicles with slower speeds could potentially use different chassis materials and change the market considerably – Carbon fibre?

72%

7%

10%1%

6% 1%2% 1% 0%

0%Trad. Steel

AHSS

Aluminium

Magnesium

PP

PA

PU

ABS

Thermosets

HPP

52%

21%

13%

1%8%

1%2% 1%

1%0% Trad. Steel

AHSS

Aluminium

Magnesium

PP

PA

PU

ABS

Thermosets

HPP

19

Materials will Show a Cascade EffectLighter Versions of Steel (HSS, AHSS, UHSS) will remain the most preferred material by the volume manufacturers

European Volume OEMs

Str

uctu

ral D

evel

opm

ent

Low

High

70-80% use of HSS

55-20% HSS + 10-15% UHSS

HSS, mainly UHHS and Aluminium (Fiat uses

Magnesium)

HSS, Aluminium, AHSS

Ford Ka, VW Polo, Fiat Panda

Ford Focus, VW Golf, Fiat 500

Ford Fiesta, VW Passat, Fiat Linea

Ford Mondeo, VW Eos

Ford Galaxy & Ford S-MAX, VW Touareg, Fiat Croma

European Premium OEMs

12% Hot-formed UHSS18%UHSS

32-60% HSS

Hybrid structure – Steel and Aluminium

HSS, UHHS, AHSS and Aluminium Space

Frames

60% is Aluminim, 30% Steel and use of

magnesium, Carbon Fibre Audi TT, Mercedes S-Class

Audi Q5, A6, Mercedes C-Class

Audi Q7, Q6, Mercedes E-Class

Audi A3, A4, Mercedes A-Class

20

Plastics in Automotive

Exterior Interior Under-the-hood

• Bumpers• Bumper Spoilers

• Roof/boot Spoilers• Lateral Sidings

• Rocker Panels• Wheel Arch

Liners•Windshield

•Mirror Housing•Head

Light/Rear Light

•Tailgate

• Dashboard• Dashboard

Carriers• Pillar

Claddings• Door Pockets• Door Panels

• Consoles• Chairs

• HVAC• Batteries

• Battery Covers

• Electronics Housing

• Air Ducts• Splash Shields

• Pressure Vessels

• Reservoirs• Engine Covers

Plastics for Automotive Industry: List of Applications (World), 2009 Part Plastic Types

Weight in Average

Vehicle (kg)

Bumpers PP, ABS, PC 12

Seats PUR, PP, PVC, ABS, PA 14

Dashboard PP, ABS, PA, PC, PE 15

Fuel Systems PE, POM, PA, PP 7

Body (including

body panel)PP, PPE, UP 6

Under-bonnet Component

PA, PP, PBT 9

Interior Trims PP, ABS, PET, POM, PVC 20

Electrical Components

PP, PE, PBT, PA, PVC 7

Exterior Trim ABS, PA, PBT, ASA, PP 5

Lighting PP, PC, ABS, PMMA, UP 5

Upholstery PVC, PUR, PP, PE 8

Others PP, PE, PA 1

21

Polypropylene Dominates the Plastics Market and Will Continue to do so Over Next 10 Years


Plastics for Automotive Market: Volume Break-up by Polymer Type (World), 2009

Total Market Volume: 6,060 Kilo Tons

• Polypropylene (PP) is the most preferred plastic

type used in both interior and exterior applications

of passenger cars, accounting for 45.5 per cent of

the total volume of plastics used in automotive

applications in 2009.

• Seating is the largest application of Polyurethane

(PU) in passenger vehicles, and its monopoly in this

market will continue unabated, although some

amounts of PP foams are likely to make some

inroads into this segment.

• Polyamides are the third largest individual plastic

type in the passenger vehicles market largely due

to their under-the-hood applications, including fuel

systems.

• Thermosetting composites are fast gaining grounds

in several exterior automotive applications and are

expected to experience a higher growth rate during

the forecast period.

04/18/2322

Volume Forecasts: Polypropylene

YearVolumes

(Kilo Tonnes)Volume

Growth Rate (%)

2006 2,848.6 --

2007 2,980.0 4.6

2008 2,970.0 (0.3)

2009 2,760.0 (7.1)

2010 3,140.0 13.8

2011 3,420.0 8.9

2012 3,830.0 12.0

2013 4,120.0 7.6

2014 4,480.0 8.7

2015 4,790.0 6.9

2016 4,880.0 1.9

Compound Annual Growth Rate (2009-2016):

8.5%

The global volume for polypropylene in automotive

applications in 2009 was 2,760.0 kilo tonnes. The

market is likely to grow at a compound annual

growth rate (CAGR) of 8.5 per cent from 2009 to

2016.

Plastics for Automotive Market: PP Volume Forecasts (World), 2006-2016

Note: All values are rounded; the base year is 2009. Source: Frost & Sullivan

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

Volu

me

(KT)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

Gro

wth

Rat

e (%

)

Volume KT Volume Growth Rate

Plastics for Automotive Market: PP Volume Forecasts (World), 2006-2016

23

Under the Hood Plastics at risk by Electric Vehicle Development


Others include Oil filter modules, oil pan modules, battery trays and so on

Plastics for Automotive Market: Volume Break-up by Under-the-hood Application (World), 2009

Total Market Volume: 590 Kilo Tonnes

24

Body panels are the Next Big Market for PlasticsDimensional stability and coating issues are limiting the market currently

Need for better coating characteristicsNeed for better coating characteristics

“The finish on our Fiat 500 is actually better than on our Ferraris. One is steel the other is composite. We know how to coat steel. We

need help with coating other materials” - Fiat

“The expansion coefficients are different and we can’t make the joining tolerances. Also we

struggle to predict how the material will behave during design phase” - GM

“We like plastic panels because of the flexibility. With metal if you bang it you get a ding. With plastic you don’t. That has cost advantages

during manufacturer and also for the customer on the road” - Ford

Plastic panels perform wellPlastic panels perform well

Dimensional stability of the panels is a major challenge

25

The Best Material for Use in the Exterior Panel Base: Total Sample, N=500

34%30%

13%10% 8% 6%

22%

16%

23%

17%

7% 9%

17%14%

20% 18%

10% 11%

46%

26%

73%

56%

25%

60%

0%

20%

40%

60%

80%

100%

Carbon Fiber Metals Fiberglass Bioplastics Natural Fiber Plastics

#1 Rankings #2 Rankings #3 Rankings Total of Top Three Rankings

End Users have a Poor Opinion of Plastics for Exterior PanelsThe perception of plastics as a low grade material needs addressing

Q14: Please rank the materials you would expect to be the best for manufacturing exterior panels. (Where “1” is best, a #2 ranking is second best, and a “3” ranking is the third rank)

Key Take Away: Carbon fiber and metals are perceived as the best materials for use in the exterior panels, chosen as number-one by approximately one-third of vehicle owners. "Eco” materials, as well as plastics, definitely are not perfect for such application in the opinion of the majority.


26

Evaluation of the Reinforcing Fibers (Mean Scores) Base: Total Sample, N=500

5.675.57

5.42

4.59

6.08

5.83 5.755.57

4.674.564.43

4.67

3

4

5

6

7

Safety and structural integrity Reliability Aesthetics Environmental friendliness

Fiberglass Carbon Fiber Natural fibers

Evaluation of the Reinforcing Fibers to Perform in the Different Vehicle Aspects

Key Take Away: Fiberglass and carbon fibers have very similar profiles. Both are rated high for safety / structural integrity, reliability, and aesthetics, while relatively low for environmental friendliness. Natural fibers, on the other hand, obtained higher ratings for being environmentally friendly, but relatively low on all other dimensions.

7 = I would expect this material to perform to the highest standards1 = I would not expect this material to perform well at all

7 = I would expect this material to perform to the highest standards1 = I would not expect this material to perform well at all

Q7: Please rate how well you would expect the following reinforcing fibers to perform when used in the following vehicle aspects…


27

Green Legislation is Affecting Materials ChoiceEnd of life already restrains thermoset uptake

OEMs fear they will ultimately have to bear the cost and responsibility of recycling vehicles at end of life

Plastics recycling infrastructure needs improving

A lot of anger from OEMs about lack of action by plastics manufacturers

Steel industry is more advanced

Which Material?Which Material?

CostCost WeightWeight PerformancePerformance OthersOthers

Legislation complianceLegislation compliance

GreenimageGreenimage

Rawmaterialcost

Rawmaterialcost

End oflife costEnd oflife cost AestheticsAestheticsInstalled

infrastructureInstalledinfrastructure

ImpactresistanceImpactresistance

Life cycle analysis is believed to be the next regulatory progression and it is having an effect on choices for lightweight materials

Life cycle analysis is believed to be the next regulatory progression and it is having an effect on choices for lightweight materials

StrengthStrength

Recycling issues affect half of underlying decision making criteriaRecycling issues affect half of underlying decision making criteria

28

Conclusions

• Lightweighting is a trend that is going to stretch long into the future

• Legislation and fuel efficiency are the main drivers

• Many strategies to lightweight vehicles

• The volume car sector should be the focus for lightweight solutions

• Lightweighting more important with the development of electric vehicles

• Lightweight solutions present great opportunities for business growth

• Body panels will be the highest growth market

• Recycling and end of life are challenges that need to be addressed

• Ultimately the environmental aspect of a material is very important

29

Green fuels and lubricants

Electric vehicles and batteries

Recycling / end of life

lightweighting

Emerging Markets

Chemicals and Materials in Transportation Platform2011 Key Themes

Electric Vehicle Materials & Batteries

Fuels & Lubricants

Green Material Concepts

Lightweighting

Coatings & Adhesives

Emerging MarketsEmerging Markets

30

For Additional Information

Chiara CarellaHead of Communications

+44 (0) [email protected]