Aits E Mobility Rwthausa6 April2011

Prepared for:HMI 2011, GACCoM - eMobility in the USA

Presented by:Rainer Aits, CEO P3 Automotive & P3 North America

6th April 2011, Hannover

P3-GroupSuccess factors for European Companies in the USA for the xEV industry

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P3 GROUP OVERVIEW

xEV MARKET & TRENDS

ENABLERS FOR SUCCESS

SUMMARY

CONTACT

P3 Company Overview

xEV market & trends

Enablers for Success

Summary

Agenda

eMobility in the US, 06th April 2011 HMI, P3 Aits

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P3 Group - Your partner

We don’t solely define strategies, methods and concepts but alsoimplement them with a pragmatic approach. Our guiding principlesare Flexibility, Quality Results and Customer Interests.

P3 is a privately held company with 1200 experts and engineersworld wide with an approximate revenue of 170 million USD in 2008.

The P3 Group offers professional management services with corecompetencies in process optimization for both Product Developmentand Manufacturing.

P3 was founded in 1996 as a spin-off company out of theFraunhofer-Institut für Produktionstechnologie (IPT) of the TechnicalUniversity in Aachen, Germany and mainly serves the automotive,aviation and telecommunications industries.

Beyond processes, the P3 Group offers engineering services rangingfrom test strategy development, virtual prototyping, test planningand execution to CAD and simulation projects for E/E, Infotainment,Aviation and Telecommunications.

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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P3 Growth History – international success since 1996

1) P3 is Partner of the Eurogroup Alliance in Germany for the Branches Manufacturing and Utilities

1996 2000 2001 2002 2005 2006 2007 2008 2009 2010

EngineeringjapanConsulting

south africaConsulting

InfotainmentTesting

Consulting

Offshore & Engineering

Consulting & Engineering Services

Offshore & Engineering

Engineering &Testing

San Francisco, USA

Seville, Spain

Germany Wolfsburg, Germany

Ulm, Germany

Ingolstadt, Germany Stuttgart,

Germany

Bangalore,India

Canada

Tokyo,Japan

Toulouse, France

Hamburg, Aachen, Germany

Detroit, USA

Vancouver,

Montréal,

Canada

Morristown, USA

Raleigh, USA

Cape Town, RSA

Shanghai, China,

Mumbai, India

Reading, UK

energy & storageBattery Experts

Windsor Locks, USA

marketing

5

Our services encompass 3 core competencies allowing us to serve clients from concept to implementation along the whole value chain

Professional Management Services

COST

QUALITY TIMING

Balancing

For business, P3 helps clients balance cost, quality, and processes for new products

List of services (select):• Organization and process

definition• Cooperation management• Program management including

prototypes• Supply chain management• Cost and quality management

Strategy Consulting

At the corporate level, P3 helps clients meet their goals in the most efficient method possible

COMPANY VISION

STRATEGY

GOAL

List of services (select):• Business plan• Market entry strategy• Acquisition strategy• Sales strategy• Product portfolio alignment

with the market

Engineering Solutions

Technically, P3 helps clients develop and validate new products for the market

List of services (select):• Proof of concept• Specification development• Test strategies• Software feature validation• System integration

SYSTEM

SUB-SYSTEM

COMPONENT

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Core Area`s within the P3 automotive Sector

Strategy/M&A Business development Strategy development Portfolio management Turnaround management Growth strategies Market entry strategies Pricing / Branding

R&D passenger car`s/ Trucks Process analysis/reorganization Multi-Project management Experimental efficiency (e.g.CO2)

Risk management Prototype management Module-/Functional strategy Function development process

Alternative Actuations /EVs Validation / Testing Cooperation management Business-/product planning Requirements -Management Technology assessment Safety- und Quality concepts

Operations / Logistics Production strategy Lean management Best practice/Benchmarking Assembly optimization Production planning Ramp-UP management

Electric/ Electronic Strategy development E/E Validation concepts Architecture and concept

development Project management

Infotainment Electrified drive chain Requirement documents E/E

Supply Management Redesign global Supplier

footprint Make or Buy Strategies Reorganization Prototype supply Optimization SCM Optimization In- / Outbound

Logistics

After Sales/Warranty Reengineering and corrective

action process Diagnostic analysis team Defect analysis & optimization Defect rapid alert system Rent a Belt (Six Sigma) Warranty cost optimization

Cost Management Investment/Cost planning Bottom-up Budget planning Target Costing Hybrid-Vehicle Target Costing product costs Cost Cutting Product cost analysis Value analysis

Quality management Six-Sigma Supplier management Quality organization QM-Systems QM Process optimization Quality orientated project

control

Testing & Validation Know-How Software & Wireless expertise System integration & specification Telecommunication expertise Diagnostics Grid infrastructure Etc.

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Our Customers – Automotive, Aviation, Telecom & Energy

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT

P3 Company Overview

xEV market & trends


Summary

Agenda


9Source: P3,

There are 3 challenging areas in the electric mobility industry

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


Inside the vehicle

Outside the vehicle

What kind of storage infrastructure is required, and

what is the business case?

What technologies are required in the vehicle?

What are the requirementsof the billing-process?

10Source: P3, CSM 2011

The array of xEVs is continuously increasing among every category of vehicle

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Major Market Trends

The global EV/HEV market is driven by several major trends

Fuel economy standards are increasing fast

Emissions and greenhouse gas requirements are increasing

Smart metering infrastructure is being deployed

Fuel prices are rising and becoming more volatile

Vehicle electrification technology and manufacturing capabilities are growing

Technology

Fuel Economy

Environmental

Grid Infrastructure

Fuel Prices

Major EV/HEV market industry trends

• Li-Ion battery technology advances are allowing longer range electric vehicles

• Automotive companies and governments are heavily investing in EV/HEV technology

• Major governments are raising fuel economy standards & gasoline taxes in order to curb oil usage and reduce dependence on foreign sources

• OEMs are preparing for large increases in CAFÉ and EU standards

• Emission regulations and eventual GHG requirementsare expected

• Consumers are demanding “greener” vehicles

• Regulators and utility companies are encouraging smart metering in order to allow for vehicle recharging

• Charging infrastructure readiness is improving

• Oil prices are rising and growing in volatility• Consumers are demanding more and more fuel

economy in order to reduce their fuel expenses

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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32%

15%12%

9%

8%

5%

4%

3%

2%2%

Others

8%

20%

15%

10%8%

8%

7%

7%

4%3%

12%

Others

8%

• Market size in N.A. in 2015 – 1.64 Mill units• These Top 10 OEMs hold 92% of the market in

N. America

• Market size in E.U. in 2015 – 0.92 Mill units• These Top10 OEMs hold 92% of the market

in Europe

Source: Frost & Sullivan 2009, RB 2010, P3

NA EV/HEV market landscape – 2015 EU EV/HEV market landscape – 2015

In both NA & EU, the EV/HEV market is dominated by the Top 10 OEMs

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Globally, the xEV market is expected to have steady and strong growth in both hybrid and electric vehicles

2010 – 2016 xEV global production (‘000 units) 2015 xEV production by type (%)

24% CAGR Total EV/HEV vehicles produced = 3.4 m

2010 2011 2012 2013 2014 2015 2016

72%

20%

8%

Hybrid -Full

Electric

Hybrid -Mild

Hybrid -Full

Electric

Hybrid -Mild

3,4753,392

3,111

2,676

2,135

1,6601,153

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


NOTE: EV includes REX; Excludes micro-hybridsSource: P3, Oct 2010 CSM

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Many xEVs will be manufactured in Japan/Korea, but production in N. America and Europe are ramping up fast

2010 – 2016 xEV global production (‘000 units) 2015 xEV production by region (%)

Total EV/HEV vehicles produced = 3.4 m

2010 2011 2012 2013 2014 2015 2016

56%

15%

24%

Japan/ Korea

N. America

Europe

Japan/ Korea

China

Europe

3,4753,392

3,111

2,676

2,135

1,660

1,153

China

S. Asia

5%N. America

NOTE: S. Asia is less than 0.1% in 2015Source: P3, Oct 2010 CSM

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Source: P3, Oct 2010 CSM

Japan/ Korea

N. America

Europe

China

ELECTRIC VEHICLES HYBRID VEHICLESTOTAL xEVs

produced in 2015 (‘000)

1,751

765

457

155

88%

57%

91%

37%

12%

43%

9%

63%

3,128TOTALNOTE: EV includes REX; Excludes micro- and mild-hybrids

Each region of the world expects to have a different mix of xEVs

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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xEVs are made possible by 3 enabling technology areas –each area has a global supply base which are evolving fast

DC/DC Converter

Controller

Battery cells

Motor

Inverter

Compressor

ED Water pump

ED Steering pumpEV gearbox

Brake boost

Battery pack

Enabler #2:

ELECTRIC POWER

Enabler #1:

ENERGY STORAGE

Enabler #3:

ELECTRIC DRIVEN ACCESSORIES

Charger

Source: P3

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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An important trend includes OEM in-sourcing of xEV components –an important trend to consider when entering into the xEV market

Source: P3

SUPPLIERS OEMs

Design and manufacturing responsibilities

MAJOR PRODUCT AREAS

Energy storage

Battery packs

Battery cells

Charger

Systems

Electric power

Motor

Inverter

Gearbox

DC/DC Converter

Controller (VCU)

Electric driven accessories

Compressor

Water pump

Steering pump

Brake boost

• At a high level, OEMs are attempting to take design and manufacturing responsibilities of important xEV product areas.

• These trends differ by OEMs and by region.

• Most xEV component suppliers are cautious of these trends, influencing their corporate strategy.

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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P3 Company Overview

xEV market & trends


Summary

Agenda

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Our challenge within P3 was to combine 2 different cultures –this was one Enabler to establish P3NA in the US auto market

Target

Plan 3 hr.

2 min.

A

B

Target

Plan 2min.

3 hr.

A

B

Conclusion: The best way to get from A to B takes 3hr. and 2min. -

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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1

3

2

5

4

7

6

Market analysis

Strategic position

Product portfolio

New business models

Vertical Integration

Cooperation's/M&A

R&D Expertise

Production strategy

Supplier business

ECS FOR OEMS/SUPPLIER

9

8

9 Major Evaluation Criteria's (EC) for companies to be successful in xEV market

(-) CURRENT CUSTOMER FOCUS (+)

(*) Source rough estimation at 50 P3 xEV Projects

-

+

+

+

-

- - not enough focus+ enough focus

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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PEOPLE

BRANDING

COMPETENCIES

Set-up a Management “Bridge” on CEO Level Ensure a good employee mixture of American's and German's

e.g. 80% US employees, 20% German/EU consultants/engineers Hire the right people

(electronics, mechatronics, SW Engineers etc. )

All competence areas are alive and kicking, but continued development of expertise and products

Ensure global competence transfer Combine Strategy Cons and Engineering Service

Investigation in networking Boost the Speeches & Publications Tell everybody we are the #1 in xEV Business Our Mission: Growth is the only way

MAIN ENABLERKSF WITHIN P3

Our P3 Key Success Factors (KSF) to enter the US xEV market

PRODUCTS

Develop new creative products Establish contacts to the universities Business development and Flexibility is important OVERALL: … Listen to the customer…..

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Battery Expertise E-Vehicle Hybrid Diagnostics

Li-Ion & NiMHTechnologies

Technology Benchmarking

Safety Concept

Logistics Requirements, Concepts & Planning

Validation Test Planning & Test data Management

Specification Development (SOR)

Electronics & BMS

Production Audits

Prototype Planning and Build Management

Cooperation & Program Management

E-Motor, Software & High Voltage Technologies

Cost Management

Technology Benchmarking

Prototype Management

Root Cause Assessments

Supplier Quality

Process Re-Engineering

Requirements Definition and Management

Risk Assessment

Master Plan Development

Specification Development : Customer Req - > Tech. spec (House of Quality)

Project Setup

Supplier Selection, Qualification, Optimization

Program Management

Outsourcing of Engineering Services

Equipment Supplier Management

Timing Synchronization (OEM and Supplier)

Cooperation Management

Definition and development of Battery Management System BMS requirements

Test Case definition and validation of BMS

Monitoring/ Diagnosing of battery usage and event flagging

Communication and visualization of state of charge and energy usage through the infotainment system

Potential for communication through integrated telematics

P3 has built its xEV and alternative Powertrain expertise through 4 primary types of projects

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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P3 Company Overview

xEV market & trends


Summary

Agenda

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Strategic company positioning OEM/Supplier long term strategic

partnerships Strategic relationships with utility

companies Enough technical talent especially

automotive electrical and software engineers

Use global expertise network Vehicle system integration capabilities Li-Ion battery-design for vehicle

range, long life, and serviceability (After market)

Standardization of core component designs (especially in motors/inverters)

KEY CONCLUSIONSFOCUS ON

Summary for successful xEV Business in the USA

PEOPLE

CUSTOMER

PRODUCT

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT


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Thank you for your attention!

Dr. Samit GhoshCEO P3 North America, Inc.

+1 248 818 [email protected]

Rainer AitsCEO P3 automotive

+ 49 163 75 33 [email protected]

Dieses Dokument enthält vertrauliche Informationen der P3 — Group und darf ohne die ausdrückliche schriftliche Genehmigung nichtvervielfältigt oder einem Dritten gegenüber enthüllt werden. Dieses Dokument und sein Inhalt dürfen nur zu bestimmungsgemäßen Zwecken verwendet werden.

This document contains P3 — Group proprietary information and shall at all times remain the property of P3 — Group. It shall be distributed and used only by the subcontractor staff registered on the distribution list of this document. The subcontractor is not allowed to copy this document without P3 — Group prior written consent. It shall not be used, distributed or copied by any other third part without P3 — Group prior written consent.

P3 GROUP OVERVIEW

xEV MARKET & TRENDS


SUMMARY

CONTACT

consult

implement

listen consult

implement

listen


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Global car sales

Source: GBI March 2010


Aits E Mobility Rwthausa6 April2011

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