Automotive lightweight design is driven by three key factors: increasing vehicle content and functions, stringent CO2 efficiency standards, and advancements in electrified powertrains. Lightweight design using multi-material solutions is necessary to reduce vehicle weight and counter these impacts. The global market for lightweight automotive body design is projected to grow fivefold to nearly €100 billion by 2025, led by Europe, China, and North America. Innovation in materials, manufacturing processes, and cross-industry collaboration will be critical for companies to succeed in future lightweight markets.

1. Automotive lightweight –Heavy impact
Economic Symposium, Alpbach
August 31st, 2016

2. 1120160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
LIGHTWEIGHT
INNOVATION
LIGHTWEIGHT CONCEPTS /
DESIGN
LIGHTWEIGHT MATERIAL /
TECHNOLOGIES
A „LIGHT CAR“ makes use of …
A definition: Automotive lightweight –from lightweight material to lightweight
design …
Source: Berylls Strategy Advisors
… and requires not only material and product application know-how, but processing and joining know-how as well.
Aluminum
Tailored
Properties
(Carbon) Fibre
reinforced
Plastics
MAGNESIUM Ceramics
TEXTILES
BIO
COMPOSITES
HIGH-
STRENGTH
STEEL (HSS)
…
PARTS INTEGRATIONFunctional
integration
BIONIC DESIGN
Hybrid
solutions LOAD LEVEL
CONCEPTS
Topology optimization
…

3. 2220160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
1.000
800
900
1970 1980 2000 20101990
600
1.400
1.300
1.100
1.200
700
Golf VI
Golf IV
Golf V
Golf III
Golf VII
Golf I
Golf II
… with heavy impact –the 3 key drivers for lightweight design in Automotive (1/3)
Source: Volkswagen, Berylls Strategy Advisors
VEHICLE
CONTENT &
FUNCTIONS
CO2
EFFICIENCY
POWERTRAIN
ELECTRIFI-
CATION (xEV)
EXAMPLE: VW GOLF –VEHICLE WEIGHT INCREASE ACROSS GENERATIONS
+53%
FOCUS ON
WEIGHT
REDUCTION
> Increase of vehicle size
> Passive safety (NCAP rating,…)
> New comfort functions
(HVAC, power seats,…)
> Higher requirements on
• Ride & handling (controls,…)
• NVH (glass, insulations,…)
kg, standard equipment, basic performance engine
Lightweight design needed to reverse the weight spiral of additional vehicle content and functions!

4. 3320160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
… with heavy impact –the 3 key drivers for lightweight design in Automotive (2/3)
Source: Berylls Strategy Advisors
VEHICLE
CONTENT &
FUNCTIONS
CO2
EFFICIENCY
POWERTRAIN
ELECTRIFI-
CATION (xEV)
EXAMPLE: CO2 TARGETS EUROPE AND LEVERAGE OF LIGHTWEIGHT DESIGN
95
140
50
2025
75
20202015
Fleet target in g CO2/km
Ultra lightweight
design
ICE optimi-
zation
Multi-material-
design
PHEV/
BEV
350
150
100
50
0
150100500
Attractiveness of alternative CO2-measures
CO2 Reduction (g/km)
Additionalcost(€/gCO2reduction)
ICE optimi-
zation
Neuer
Stahlleichtbau
Ultra lightweight
design
Multi-material-
design
HEV
BEV incl. Range
Extender
BEV
Lightweight design as an important lever to apply to future CO2 emissions regulations (2020 and beyond)

5. 4420160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
… with heavy impact –the 3 key drivers for lightweight design in Automotive (3/3)
Source: Berylls Strategy Advisors
Lightweight design crucial for xEV performance, to limit weight increase with direct impact on vehicle reach
and/or battery size and cost
VEHICLE
CONTENT &
FUNCTIONS
CO2
EFFICIENCY
POWERTRAIN
ELECTRIFI-
CATION (xEV)
EXAMPLE: ADDITIONAL WEIGHT BY ALTERNATIVE POWERTRAIN
Additional powertrain weight in kg – exemplary Vehicle weight examples in kg
300
250
100
75
20
Mild Hybrid
Start/Stop
PHEV
Full Hybrid
BEV
1.585
1.386
BEVICE
1.233
PHEV PHEV
2.215
ICE
1.960
+153 kg
+275 kg+199 kg

6. 5520160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
Example –The future market for “lightweight body design“ will grow fivefold to
almost €100bn (2025)
1 High-strength steel (HSS), Advanced high-strength steel (AHSS), Ultra high-strength steel (UHSS)
2 “Light vehicles” definition: including passenger cars, pick-ups and light trucks (up to 3.8 tons)
Source: Berylls Strategy Advisors
Lightweight Body Design– Market Growth...
in bn €, light vehicles, global
121
74
21
99
2012
173
2025
142
Lightweight design
(CAGR +12.7%)
Conventional steel
(CAGR -3.7%)
> Global vehicle market1 to grow by almost 50% until 2025
• from 79 mn. units (2012) …
• … to 118 mn. units (2025, expected)
> Strong shift to lightweight design
• Lightweight design market growth in all regions, including
China
• Diffusion into small vehicle segment–lightweight
material to almost catch-up with conventional steel
> Multi-material design on the rise
• In 2025, almost 1/3 of all vehicles will apply multi-material
solutions (steel- or aluminum-intensive)
> Lightweight design still a steel market in the future
~75% of market will be high- to ultra-high-strength steel
COMMENT

7. 6620160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
Example –Continued high growth potential for lightweight body design in Europe,
and China will almost have caught up with Europe by 2025
Comment: Regions correspond to vehicle production location
Source: Berylls Strategy Advisors
20252012
41
2012
28
2012 2025
50
2025
34
30 31
Body market growth by region, in bn €, light vehicles
EUROPE NAFTA CHINA
> European OEMs/suppliers as
innovation leader since years
> European Premium segment as
key driver
> Tight European CO2 regulations
> Big 3 (FCA, Ford, GM) need to catch
up on vehicle weight
> European transplants to introduce
lightweight value creation
> By far strongest production growth
> Strong and fast catch up with
state-of-the-art technology
> Local investments by all
international OEMs/suppliers
Conventional steel
Lightweight design

8. 7720160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
Know-how requirements for lightweight design innovations–3 dimensions
Source: Berylls Strategy Advisors
> New alloys, new composites
> New material combinations
> Material treatment
> Etc.
MATERIAL PROCESS FUNCTION
COLLABORATION
SUPPLIER
OEM
> Semi-finished products
> Machining and joining
technologies
> Process design and
management
> Etc.
> Requirements engineering
> Technical concepts and
solutions design
> Application engineering
> Simulation and testing
> Etc.
FOCUS

9. 8820160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
How to exploit future lightweight markets–… and key success factors for all
players
Source: Berylls Strategy Advisors
Mastering the diversity of light weight solutions–
INNOVATION CAPABILITIES!
Supply of global markets–
GLOBAL FOOTPRINT & BUSINESS PERSPECTIVE!
1
2
3
Leverage across the value chain–
INDUSTRIES NETWORK & PARTNERING!

10. 9920160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
> Focus on steel in the past
> Innovation invest to catch up
Decade of diversity –both heterogeneity and individualization are still on the rise
in lightweight body design solutions
Source: Company information; Berylls Strategy Advisors
1
EXAMPLE: LIGHTWEIGHT BODY DESIGN–A DECADE OF DIVERSTITY
> Innovations at the core
> Premium as front runner
> Very strong material
competence
> Volume applications in focus
> Strong presence of steel sector
> Limited application innovation
know-how
Load level concepts
E.g. weight spread of
alternative drive
systems
Smart lightweight steel
construction
E.g. VW Golf VIICFRP
E.g. BMW i3
passenger cell
Hybrid solutions
E.g. Audi A6 front
roof frame
Integral construction
E.g. suspension strut dome
of the Porsche Panamera
Tailored solutions
E.g. tailored welded
blanks
Multi-material design
E.g. Audi TT (2nd
generation)
LIGHTWEIGHT DESIGN
“AT ITS BEST“–
competition for the “best“
lightweight design solutions
of the future
Topology
optimization
E.g. Mercedes
Benz SL
Mastering the diversity of light weight solutions– INNOVATION CAPABILITIES!1

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Global footprint– Localization of the engineering and production value chain
becomes a must as markets for lightweight design go global
Source: Berylls Strategy Advisors
2
EXAMPLE: Metal forming companies– selected players
> Larger players
> Internationalization, with focus
on U.S. market, still
> Mid-sized to very large players
> Focused internationalization
“with the customer”
> Strong footprint home markets
> Some internationalization
with Japanese (Korean) OEMs
> Business focus/footprint China
> Some M&A internationally
expected
Supply of global markets– GLOBAL FOOTPRINT & BUSINESS PERSPECTIVE!2
Global
Company Size (turnover)
Local
Engineering &
Production
Footprint

12. 111120160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
Collaboration–For lightweight design innovations, a comprehensive perspective
across the whole value chain is needed, to bring in the right set of partners
Source: Berylls Strategy Advisors
3
EXAMPLE: LIGHTWEIGHT DESIGN NETWORK GERMANY
> Large steel/aluminum industries
> Comparatively high OEM
in-house parts production
> Leading players across the value
chain
> Strong research communities
> Highly integrated value chains
> Tightened networks
> Almost no R&D history
> Technology networking not part
of the DNA
Leverage across the value chain –INDUSTRIES NETWORK & PARTNERING!3
Materials/
Alloys
Semi-
finished
products
Machinery
equipment
Tooling
Forming &
Joining
Assembly
> DLR
> Fraunhofer-Gesellschaft
> Laser Zentrum Hannover
> Leibnitz-Institute
> TU Bergakademie Freiberg
> RWTH Aachen
> TU Dresden
> TU München
> CFK-Valley Stade e.V.
> Forschungscampus ARENA 2036
> Initiative Massiver Leichtbau
> Cluster Neue Werkstoffe
(Bayern Innovativ)
> VDI, VDMA, VDA, VCI
> Industrievereinigung Verstärkte
Kunststoffe
> WV Metalle, WV Stahl
OEM
+
SUPPLIERS
RESERACH INSTITUTES
UNIVERSITIES
CLUSTERS & NETWORKS
ASSOCIATIONS

13. 121220160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
INNOVATION
CAPABILITIES
GLOBAL FOOTPRINT&
BUSINESS PERSPECTIVE
INDUSTRY NETWORK &
PARTNERING
Overall, Europe seems well prepared to master the future for lightweight design in
Automotive
Source: Berylls Strategy Advisors
1
FUTURE
PERSPECTIVE
2 3
!
As China is on the rise – both from a market as well as from an industry player perspective – European
players will have to deal with a tightening competition

14. 131320160831_Berylls_Lightweight_Forum-Alpbach_FINAL.pptx
The future role of Europe–and the perspective for the Automotive lightweight
industry
Source: Berylls Strategy Advisors
ESTABLISHED and WELL-KNOWN
PLAYERS across the value chain
Coverage of the
WHOLE lightweight
value chain …
GLOBAL INNOVATION LEADERS with a TRADITION
OF INNOVATION FOR DECADES
… from material disciplines to
MACHINERY & equipment to
PRODUCT & PROCESS
SOLUTIONS
The MOST INNOVATIVE
CAR SEGMENT (premium
cars) right on the doorstep
AN UNRIVALED
NETWORK OF
R&D INSTITUTES
AND FACILITIES
PUBLIC FUNDING AS ONE OF THE CORE INDUSTRIES
THE FUTURE OF
LIGHTWEIGHT DESIGN:
Strategic (and operational)
collaboration across the
value chain!

15. Berylls Strategy Advisors GmbH
Maximilianstrasse 34
80539 München
T +49-89-710 410 40-0
info@berylls.com