2016 WardsAuto Interiors. Rose A. Ryntz, Ph.D.

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1 2016 WardsAuto Interiors INTERIOR Materials SYSTEMS Innovations Rose A. Ryntz, Ph.D.

2 IDEAS & DISCUSSION TOPICS 2 Safe and lightweight materials don t sell cars by themselves. Attractive though these qualities are to the OEMs, the average car buyer with flexibility on price will also want to personalize things, and premium interiors provided one of the biggest opportunities. This means suppliers have to come up with solutions that not only help OEMs meet continually tightening regulation requirements, but also satisfy the widening range of the consumers personal tastes. Focus on enhancing the drivers experience with personalized interiors CO 2 emissions OEM Fleet vehicle average will need to achieve 95g/km by 2021 and CAFÉ standard for fleet average of 54.5 mpg by 2025 Possibilities exist to reduce the entire interior space, including both hard and soft trim (excluding seats) by about 15kg (33Lbs) by incorporating lightweight technologies and materials 2016 to years equals 2 complete new vehicle cycles, compares with the 28 to 30 cycles in the consumer electronics industry The China luxury market is predicted to be one and a half times the US and Europe combined by 2020 The industry continues to develop at a faster pace than ever before, Suppliers need to remain relevant to its customers Use of natural fiber can result in up to a 50% mass reduction The concept of vehicle ownership moving to vehicle usership Interiors of the future will be smart and multifunctional

3 COMFORT AND DELIGHT 3 Comfort and Delight features such as heated surfaces, ambient light features, and luminescent surfaces are also expected to become more widespread. The goal to use more sound absorbing and dampening materials and components will also increase.

4 LIGHTWEIGHT INITIATIVES 4 Lightweight Materials, Process and Design Possibilities exist to reduce the entire interior space, including both hard and soft trim (excluding seats) by about 15kg (33Lbs) by incorporating lightweight technologies and materials The new Mercedes Benz E-Class hits the dealerships this month with significant IAC content. The highlight is the headliner equipped with IAC FiberFrame. FiberFrame is IAC s unique, lightweight development substituting the metal reinforcement frame for sun roofs with a more environmentally sustainable and lighter frame. IAC FiberFrame is made from a natural fiber mat with an acrylic binder and is manufactured in-house in a hot molding process. It went into production in November 2015 at IAC Prestice (CZ). The technology introduces a new raw material with 70% renewable content. IAC FiberFrame has high stiffness for improved structural rigidity and enables up to 50% weight saving compared with conventional steel frames.

5 HIGH TECH INTEGRATION OF HANDCRAFTSMANSHIP 5 Handcraftsmanship is the essential element in the creation of high-quality interior automotive components. Thousands of human hands are employed in every phase of production: Prototyping and modeling Materials selection Cutting Sewing Wrapping This seamless blending of high touch and high tech is the common thread that runs through IAC's approach to producing automotive interiors second none. It's new-age technology, meets old-time craftsmanship, meets modern-day efficiency. That's the common thread that binds IAC's cut, sewn and wrapped interior components to the most respected nameplates in the world components worthy of the largest singularly-focused supplier of automotive interiors on Earth.

6 KITTING OUT THE AUTONOMOUS CAR 6 Advanced Engineering Teams are keeping a close eye on the emergence of Autonomous Tech, to better understand how it will change the consumers behavior in the car, and in turn how they interact with the interiors.

7 INTEGRATION OF ELECTRONICS 7 Instrument Panels, complete Cockpits and Consoles are integrating electronics and electronic systems. This increases year over year.

8 THE NEW AUTOMOTIVE BUSINESS MODEL 8 The New Automotive Business Model such as car sharing and alternative mobility solutions is emerging. For the vehicle interior this means development of resilient materials for vehicles used by a number of different people with different expectations and requirements changing the whole landscape as we currently think.

9 COMFORT AND DELIGHT 9 1 Components of the interiors of 2020 to 2030 and beyond, speed to market, quality, mass customization and craftsmanship will continue to be at the heart of the manufacturing process 22 3 The challenge for interior suppliers is large. Faster lead times, component logistics. Component and assembly delivery to the OEM within hours of request. OEM build to orders, where derivative and model variations are way in excess of today's requirements. Increased interior craftsmanship and quality. Flexible assembly line set-ups able to accommodate more that one model, variant or vehicle platform, and the introduction of the collaborative man-machine work stations

10 Materials Innovation Session Composites: Reimagining Surfaces Through Hybrid Materials Megan McConnell, FCA Innovation in Automotive Interior Materials and Process Bob Eller, Robert Eller Associates Achieving Self-Expression with Lightweight Innovations Dominik Beckman, Benecke-Kaliko