MARKET ECONOMIC TECHNICAL ANALYSIS Management DECISIONS Robert Eller Associates LLC CONSULTANTS TO THE PLASTICS AND RUBBER INDUSTRIES AUTOMOTIVE INTERIOR CHALLENGES: MATERIALS AND FABRICATION TECHNOLOGY RESPONSES PRESENTED BY: Robert Eller Robert Eller Associates LLC Phone: +1 330-670-9566 Email: bobeller@robertellerassoc.com ANALYSIS TECHNICAL ECONOMIC MARKET Management DECISIONS Web Site: www.robertellerassoc.com Robert Eller Associates LLC CONSULTANTS TO THE PLASTICS AND RUBBER INDUSTRIES PRESENTED AT: Ward s Auto Interiors Conference Detroit, MI (USA) May 22, 2013 r/mydox/papers/ati 2013 1
OBJECTIVES Identify forces driving innovation in auto interiors Examine specific challenges and opportunities Example innovative approaches Identify trends future directions 2
AUTO INTERIOR INNOVATION DRIVERS MATERIALS - Composites - PEs - ETPs - Reinforcements - Fillers - Films - Coatings FABRICATION PROCESSES Combined process steps - Stitching; Foaming - Sandwich construction -Downgauging INNOVATION CONSUMER - Luxury - Acoustics - Connectivity - Ergonomics - Haptics - Scratch resistance - Comfort SOURCE: ROBERT ELLER ASSOCIATES LLC, 2013 EXTERNALS - Fuel prices - MPG rules - Cost save; Weight save - Safety; Sustainability - VOC; CO 2 3
INTERIOR INNOVATION TARGETS Sun Shade IP Skin Headliner Trunk Trim Load Floor Door Trim Knee Bolster Seat Cushion Panel Package Trim Seat Back Spare Tire Wheel Well Spare Tire Wheel Well PHOTO: Courtesy of Hanwha 4
COCKPIT: CHALLENGES AND INNOVATION ZONES Challenges: - Weight - Process steps - Crash and safety req ts. Display Soft skin multimaterial/multi-process battleground Trend to two color: - Upper and lower - Haptics Separate steering wheel supports from cockpit Stitching HVAC control by voice recognition (VR) Decrease weight of support structure 5
INFOTAINMENT: NEW MATERIALS AND DESIGN BATTLEGROUND 6
EXAMPLE: PROCESS, LUXURY, QUALITY INNOVATIONS Innovative Current State Retainer Skin Injection mold retainer Retainer Vacuum form skin Stitch manually or robotically Skin Skin with stitching Mono material construction Reduced labor by ~1 to 2 hours Fewer process steps Higher quality process SOURCE: Inteva Wrap retainer with skin Laser score Combine skin to retainer with press lamination Cycle time = 1 minute 7
EXAMPLE OF CURRENT LIGHTWEIGHTING IN COCKPIT: 2014 JEEP CHEROKEE PHOTO SOURCE: Chrysler Group LLC Shifts role of steering column component support Thinwall (to 2mm) glass fiber reinforced PP for IP substrate Parts consolidation 13% weight save with no styling sacrifice Incorporates innovations from Dart weight reductions Potential for primary and secondary weight savings SOURCE: Robert Eller Associates LLC, 2013 8
AUTO ELECTRONICS/INFOTAINMENT: VOICE RECOGNITION (VR) REVENUE, $MM Drivers becoming comfortable with VR (Apple SIRI on smart phones) Legislation hands free Increased awareness of risks of texting and hand held device use Global revenue growth to $155MM Potential for extending control to vehicle systems (e.g. HVAC) Fewer knobs Reduced wiring 2020 WORLD MARKET FOR AUTOMOTIVE VOICE RECOGNITION 2018 55% OF VEHICLES SOLD 2016 2014 CAGR= 9.7%/YR 2012 2010 2008 2006 2011 2019 DATA SOURCE: IMS RESEARCH, 2013 9
AUTO ELECTRONICS: THE INSTRUMENT CLUSTER COVER Challenge: Balance light transmission while minimizing reflection/glare Interior targets: Touch displays especially with Requirements: Transmission > 98%; reflection < 1%, scratch resistance Innovation: Reactive, solvent free PMMA coating with anti-glare microstructure introduced directly into the injection compression mold Technology sources: Flabeg (TIER 1 for Anti-glare glass); Evonik & KraussMaffei (CoverForm Technology) PHOTO SOURCE: Kunststoffe International 03/2013 p. 43ff Non-anti-glare surfaces on automotive dashboard instrument displays reflect the light and interfere with vision while driving 10
FLABEG ANTI-GLARE (AG) AND ANTI-REFLECTIVE (AR) COATING FOR DISPLAY APPLICATIONS Instrument display cover without antiglare microstructure and anti-reflective coating: 4% of incident light is reflected and the display is unreadable SOURCE: Kunststoffe International 03/2013, Hoeing, Walder, Schröbel, Flabeg Deutschland GmbH p 43.ff Instrument display cover with an anti-glare microstructure (AG) incorporated in the CoverForm scratch-resistant layer and a subsequently applied anti-reflective coating (AR): only 0.5% of incident light is reflected which makes the display much clearer to read 11
SALES SHARE OF LIGHT COLORED SEATING, % N. AMERICAN SEATING SHIFTING TO LIGHTER SHADES 70 SHARE OF LIGHT COLORED SEATING - N. AMERICA, 2000/2010/2015 60 50 40 30 20 10 0 2000 2010 2015 SOURCE: EAGLE OTTAWA r/mydox/seating/vehicle Shares 050610.xls 12
SHIFT TO LIGHTER SHADES IN SEATING EVEN FOR COMPACT CARS HYUNDAI ELANTRA DODGE DART CHEVY CRUZE PHOTO SOURCES: United Paint NOTE: Seat backs and bolsters are the main affected areas. Denim staining has become a significant warranty issue. SOURCE: Robert Eller Associates LLC, 2013 13
THE PROBLEM: AVOIDING DENIM STAIN ON SEATING THE SOLUTION: DENIM RESISTANT TECHNOLOGY (DRT) Before Denim Test After Test Typical PVC Coated Fabric LP-463KC-04-03 Before Denim Test After Test PVC Coated Fabric with new DRT Technology SOURCE: United Paint LP-463KC-04-03 14
THE PROBLEM: DARK COLORED SEATING HEATS UP DURING SUNLIGHT EXPOSURE 154.04 F 133.34 F 153.68 F 95.18 F Cool Colors Coating No Coating SOURCE: O Sullivan Films/HornschuchGroup 15
% Reflection IMPROVING RELECTION REDUCED SURFACE TEMPERATURE Visible Range of Sunlight Wavelength (nm) White Black White Black Cool Colors Standard Cool Colors Standard Cool Colors reflect IR - White: Reflects up to almost 100% of the infrared radiation of the sun. (Cooler material) - Black: Complete absorption of IR radiation - Standard: Reflects only 20% of IR radiation - Cool Colors: Reflects 80% of IR radiation Standard does not reflect as well as Cool Colors SOURCE: O Sullivan Films/HornschuchGroup 16
SEATING: MAJOR INTERIOR INNOVATION TARGET Foam: - Thinner - Multi-layer/Multi-density - Foam-in-place (Better seat cover conformity) - Soy-based polyols EXPOSED COMPOSITE FRAME: - Glass fiber Reinforced Polyamide (short glass, with selective continuous glass inserts) Head Rest: - EPP foam - New construction methods SEAT COVER: - New coated fabric surfaces - Improved denim & stain resistance - Improved mesh underlay for temperature control and breathability FOAMS: - Thinner - Multilayer - Foam-in-place - Soy-based polyols SEAT BACK: - Mesh increases conformity and comfort (similar to Aeron chair) - Composites started SEAT TRACK: - Composite target SOURCE: ROBERT ELLER ASSOCIATES LLC, 2013 Seat Pan: -Glass fiber reinforced Polyamide SEAT FRAME: - Thinner - Glass fiber reinforced Polyamide 17
SMART TEXTILES: EMERGING FROM R&D/PROTOTYPE STAGE CHALLENGES: Interior as feel good zone. Design individuality TARGETS: seating, cockpit, door trim, headliner, carpet SMART TEXTILE FUNCTIONS Ambiance: - Controlled lighting(mood lighting, cockpit light ) via LED threads and/or electroluminescence - Project images(introduced by Nissan on headliner in 2010) - Project logos(woven into seating for example) Control/sensory : - Conduct electricity - Textile touch pads - Monitor body bio-signals In seating : - Heat and cool (via the textile rather than buried in seat/door trim foam) - Sense weight (control airbag deployment) SOURCE: Robert Eller Associates LLC, 2013 18
COMPOSITE FLOORS 19
INNOVATION DOES NOT ALWAYS FOLLOW A STRAIGHT LINE INNOVATION EPP bead foam for seating Elimination of heavy layer in acoustic constructions TPE coated fabrics Continuous glass fiber reinforced polyamide seat frames Continuous fiber reinforced seat pan 2-shot molded instrument panels PVC replacement of PVC in instrument panel skins Polymer optics for head-up display Smart textiles STATUS Started at Audi in rear seat bottom - Replaces heavy layer/felt in dash mat inner - Dual impedance films starting (Ford and H.P. Pelzer) on current C-Max, future Focus In development - Introduced by Faurecia/BASF - On 2014 models - Potential for LGF reinforced polyamide BASF development on Opel Astra OPC Starting. Dolphin process, other - SEBS slush molded skins starting - TPO sheet skins available - In development (BMW) - Replaces glass mirrors -Prototype stage SOURCE: Robert Eller Associates LLC, 2013 20
SUMMARY INNOVATION DRIVERS - Weight Reduction - Cost save sustainability - Luxury - Safety - Increased functional control - Increased connectivity - Control emissions EXAMPLE OPPORTUNITY TARGETS - Seating (major weight save potential) - Cockpit - Composite floors - Electronics (beyond infotainment) - Composites in semi-structural applications - Acoustic system - Polypropylene compounds 21