Steel reinvented State-of-the-future Ligh

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New global steel industry study shows how to shrink the environmental footprint of next-generation car bodies by up to nearly 70 percent with use of new steels, latest design optimization techniques and electrified powertrain Nature s Way to Mobility of-the-future Light weight steel vehicles Reduced emissions Optimized structure nvented State-of-the-future Light weight steel vehicles Reduced emissions Opti ructure Steel reinvented State-of-the-future Light weight steel vehicles Reduced ns Optimized structure Steel reinvented State-of-the-future Light weight steel ve educed emissions Optimized structure Steel reinvented State-of-the-future Ligh eel vehicles Reduced emissions Optimized structure Steel reinvented State-of-th ght weight steel vehicles Reduced emissions Optimized structure Steel reinvente f-the-future Light weight steel vehicles Reduced emissions Optimized structure Steel reinvented State-of-the-future Ligh

Use of advanced high-strength steels and sophisticated manufacturing technologies trims body weight and cost, and enables compliance with global 5-Star safety standards Steel is the only material to achieve emissions reductions in all life cycle phases, including raw material manufacturing, product use and disposal FSV s Vehicle Variants Plug-In Hybrid Battery Electric FSV 1 PHEV-20 BEV A-/B-Class Electric Range: 32 km Total Range: 250 km 4-door hatchback Total: 500 km Max Speed: 150 km/h 3700 mm long Max Speed: 150 km/h 0-100 km/h 11-13 s 0-100 km/h 11-13 s Plug-In Hybrid Fuel Cell FSV 2 PHEV-40 FCEV C-/D-Class Electric Range: 64 km Total Range: 500 km 4-door sedan Total: 500 km Max Speed: 161 km/h 4350 mm long Max Speed: 161km/h 0-100 km/h 10-12 s 0-100 km/h 10-12 s FutureSteelVehicle (FSV) is a global steel industry investment in advancing the state of the art of automobile bodies that contribute to lower emission vehicles. It validates wide ranging research into the practical use of advanced high-strength steels (AHSS), innovative design and manufacturing technologies, and proposes specific examples for electrified vehicles. The FSV aims to help vehicle makers respond effectively to more stringent emissions and fuel efficiency standards to reduce the effects of greenhouse gases, while maintaining performance and without cost penalty. It comprehends new electric-drive powertrains, whose use is leading to even greater focus on vehicle weight reduction and, hence, material selection. The project included structural variants for battery electric, plug-in hybrids and fuel cell powertrains. FSV relies on new developments in AHSS that are stronger and more formable. It employs a holistic design approach that applies the latest computer-aided optimization techniques to leverage steel s exceptional design flexibility. Also, for the first time, FSV uses life cycle assessment (LCA) to select the techniques that result in the lowest total carbon footprint, going beyond only accounting for emissions in the use phase. FSV is the latest technology demonstration project of the global steel industry. It builds on 13 years of pioneering work to find ways to decrease vehicle mass, reduce cost and meet comprehensive crash safety standards, all in pursuit of a smaller environmental footprint. FSV s predecessor projects include the 1998 UltraLight Steel Auto Body (ULSAB), which proved that cost-effective lightweighting using steel was not only possible, but highly preferable to alternative mass reduction strategies. In 2000, the UltraLight Steel Auto Closures (ULSAC) project extended the concepts and technologies to hoods, doors and decklids, as did the UltraLight Steel Auto Suspension (ULSAS) for vehicle suspensions. The ULSAB-Advanced Vehicle Concepts (ULSAB-AVC) program in 2001 further expanded the scope of work to account for effects and interactions of vehicle sub-systems.

Lower weight FSV s extensive use of a broad portfolio of AHSS provides strength and formability at a lower mass. Coupled with an optimized design, FSV takes full advantage of steel s inherent flexibility for structural efficiency. It is responsible for body masses of: 188 kg - Battery Electric Vehicle (BEV) 176 kg - Plug-in Hybrid Electric Vehicle (PHEV-20) 201 kg - Plug-in Hybrid Electric Vehicle (PHEV-40) Fuel Cell Electric Vehicle (FCEV) And: 29 percent mass reduction, compared to benchmark FSV-Body Structure A lightweight, mass-efficient body creates opportunities for downsizing sub-systems, including the powertrain, and promotes reductions in overall vehicle mass. Lower cost Steel is the most cost-competitive material for car bodies. It is economical to fabricate into components and subsystems and assemble into the total body structure assembly. The resulting cost estimate of $1,115 to manufacture and assemble the complete FSV body validates this proposition and represents no cost penalty compared to today s vehicles. Smaller Carbon Footprint FSV lowers total life cycle emissions by 50 to 70 percent, compared to conventional gasoline ICE vehicles, depending on the electricity energy source. In addition, steel is the world s most recycled material with recycling infrastructures well established around the globe. FSV-1 BEV Powertrain Layout Safe The FSV design anticipates increasingly stringent crash safety standards over the next decade and meets European and U.S. 5-star safety performance requirements. It applies the latest holistic design and material optimization approaches, made possible by more powerful computing capabilities. In this way, by best using steel s unmatched capabilities for design and manufacturing efficiency, the final FSV design comprises optimized, mass-efficient shapes that meet or exceed a global reach of crash safety requirements. FSV s Expanded Steel Portfolio Mild 140/270 BH 210/340 BH 260/370 BH 280/400 IF 260/410 IF 300/420 DP300/500 FB 330/450 HSLA 350/450 HSLA 420/500 FB 450/600 DP 350/600 TRIP 350/600 SF 570/640 HSLA 550/650 TRIP 400/700 SF 600/780 CP 500/800 DP 500/800 TRIP 450/800 CP 600/900 CP 750/900 Denotes grades used for ULSAB-AVC Denotes steel added in FSV TRIP 600/980 TWIP 500/980 DP 700/1000 CP 800/1000 MS 950/1200 CP 1000/1200 DP 1150/1270 MS 1150/1400 CP 1050/1470 HF 1050/1500 MS 1250/1500

The FSV draws from a broad portfolio of steel types and grades in a range of properties, from mild to GigaPascal steels, and applies a vast array of manufacturing processes. With advanced optimization algorithms and computing power, FSV was able to incorporate hundreds of variables in the optimization process to identify a wide array of solutions. This FSV approach optimizes the body structure as an integrated system, including powertrain design and packaging, occupant space, passenger ingress/egress, driver sight angles, NVH, and aerodynamics, creating a body structure that works in harmony with all vehicle requirements. In a meaningful way, this more vigorous process mimics nature and yields results beyond what has been possible until now. In demonstrating a particular option resulting from this more robust optimization process, the FSV also shows the way forward for a full range of more efficient designs not only for electrics, but conventional ICE-powered vehicles, as well. FSV BEV Manufacturing Processes as % of Body Structure Mass FSV BEV Steel Types as % of Body Structure Mass Design Optimization process mimics Mother Nature s efficient design Packaging Study Packaging study Styling & CFD Initial styling Topology Optimization Wind tunnel simulation Final styling Design space 10% mass fraction

Nature s Way to Mobility Low Fidelity 3G Design Optimization Topology result LF3G result Sheet steel baseline Sub-System Optimization Design Confirmation Selection, optimization, reintegration, gauge optimization Final full body structure design optimization

Lowest Total Lifetime Emissions FSV demonstrates the importance of LCA as an integral element of a vehicle design process. In addition to optimizing the design for mass, cost and functionality, the FSV integrates into all analyses and accounts for its complete environmental footprint, as measured in carbon dioxide equivalent emissions (CO2e). It more appropriately comprehends the entire lifetime carbon footprint of the vehicle, not simply the use phase. This not only includes the entire fuel production cycle (well to pump) and fuel usage cycle (pump to wheels), but also the production of raw materials and disposal/recycling. FSV amply demonstrates that the coupling of a lightweight, AHSS body structure with a battery-electric powertrain results in a 50 to 70 percent reduction in total life cycle emissions, compared to equivalently sized vehicles with conventional gasoline internal combustion engines (ICE). Furthermore, based on the new steels lightweighting capabilities, steel is the only material to realize emission reductions in all life cycle phases. As vehicle manufacturers continue to develop more advanced powertrains and fuel sources, material production will account for a growing proportion of total CO2e. As these powertrains reduce use-phase emissions, material-production phase emissions will represent a greater share of total vehicle emissions. Thus, with steel s relatively low CO2e emissions intensity during the material-production phase, its use becomes even more advantageous. Comparison between U.S. and Europe Energy Grids Vehicle/Powertrain Material & Recycling (kg CO2e) Use Phase (kg CO2e) Total Life Cycle (kg CO2e) Benchmark ICEg 1,479 32,655 34,134 FSV BEV USA grid 1,328 13,844 15,172 FSV BEV Europe grid 1,328 9,670 10,998 FSV vs. Benchmark - USA grid - 56% CO2e emissions reduction FSV vs. Benchmark - Europe grid - 68% CO2e emissions reduction

2000 Town Center, Suite 320 Southfield, Michigan 48075 TEL: 248.945.4777 This document was prepared by: Automotive Applications Council (AAC) of the Steel Market Development Institute The following companies are investors on the AAC: AK Steel Corporation ArcelorMittal Dofasco ArcelorMittal USA LLC Nucor Corporation Severstal North America Inc. ThyssenKrupp Steel USA, LLC United States Steel Corporation Acknowledgements: EDAG AG, Auburn Hills, Michigan Engineering Technology Associates, Inc. (ETA), Troy, Michigan LMS Engineering Services, Leuven, Belgium FutureSteelVehicle and WorldAutoSteel are trademarks of WorldAutoSteel. 2011 WorldAutoSteel. All rights reserved.