1. 1 European Partnership for the Anticipation of Change in the Automotive Industry 6 th Open Day: Regions & Cities in a Changing World Lars Holmqvist, CEO CLEPA 8 October, Brussels

2. 2 Facts about CLEPA 3000 member companies in total, representing 2500 SMEs 3 Million employees 300 billion Euro sales

3. 3 13 National Trade Associations 82 Corporate Members CLEPA, the European umbrella membership organisation for the global automotive supply industry

4. 4 MEMBER ASSOCIATIONS (National Associations, Associate, Affiliate) ACMA (India) ACS (Slovenia) AFIA (Portugal) AGORIA (Belgium) ANFIA (Italy) AUTIG (Denmark) BWD Automotive EUROBAT (Brussels) EUROFORGE (Germany) EUWA (Italy) EWFA (Belgium) EXIDE FIEV (France) ILEA (Luxembourg) MAJOSZ (Hungary) RAI (The Nederlands) SAS (Sweden) SERNAUTO (Spain) SINDIPEÇAS (Brazil) SMMT (United Kingdom) SUPPLYON (Germany) TAYSAD (Turkey) TecCom VDA (Germany) ZVEI

5. 5 CORPORATE MEMBERS Advanced Labels Technologies Aisin Akebono Brakes Arvin Meritor Autoliv Behr Bekaert BOS Bosal Bosch BPW Brembo Britax Brose Fahrzeugteile Cardone CIE Automotive CIMOS, Slovenia Continental AG Delphi Denso Dorel France Dunlop Tech Eberspächer Emitec Faurecia Federal-Mogul Fraunhofer Gates GE Lighting GKN Haldex Hayes – Lemmerz Hella Honeywell Honsel HUF Klarius Knorr-Bremse Koito Kongsberg Auto. Kostal Sanden of Europe SENSATA SKF Sogefi Takata Petri Trident Componets Group Tenneco ThyssenKrupp TMD Friction Services Tokai Rika Toyota-Boshoku Europe TRW Valeo VDI / VDE – IT Visteon WABCO Web BV Webasto Zanini Industries ZF Friedrichshafen ZF Trading JTEKT Europe Lear LuK Maflow Magneti Marelli Mahle Mann & Hummel Mark IV-Dayco Mira Mitsubishi Electric 3M MS Motor Service International NGK Spark Plug NISSENS A/S OSRAM Philips Pilkington Proliance NRF Reflexite Saint-Gobain Sekurit

6. 6 Facts about the automotive suppliers 75% of the value of the car comes from suppliers 50% of the R and D spending from suppliers A majority of patents are from suppliers Some examples Electronic stability programmes High pressure injection systems Diesel particulate filters Navigation systems Stop / start Hybrid systems

7. 7 Automotive industry – major contributor to growth, employment and wealth Employment EU 25 – Automotive Suppliers: 4.8 million Out of Total Automotive employment: 12.1 million 1/3 of passenger cars produced in EU Total motor vehicles (worldwide) – Million units 73.1 27 % of worldwide MV production for EU 27 24 billion in R&D spending Tax revenue of vehicles 381bn = 3.5% of EU 15 GDP Source: ACEA 2007 figures

8. 8 Global Vehicle Sales Asian Tigers Crises Sept 11 th Credit Crunch & >$100 Oil

9. 9 BRICs: Rock solid in 2008… but slowing in 2009 Unit sales Growth Light Vehicles + 11 % +8% +30% +23% +12% +6% 2009 2009 2009 2009 2008 2008 2008 2008 +10% +15%

10. 10 Short-term Light Vehicle Production Outlook Regional Growth Trends 2007- 2008 - 2009 (Y/Y Growth Rate)

11. 11 Market downturns Consumer demand drop – 3 contributory factors: EU Environmental targets to be met: 130g CO2/km by 2012 (120g through technological measures + 10g complementary measures); 95 g CO2/km by 2020 Rising fuel prices Current financial turmoil – failing banks; EU & Asian stock markets fallen sharply Slump effects: Heavy-duty, due to worsening credit conditions Light-duty, due to job losses

12. 12 Lay-offs Volvo Trucks AB is cutting more than 20% of its EU blue-collar staff Volvo Car shedding 2,900 employees at its 3 plants in Belgium and Sweden 20% reduction in workforce of the vehicle makers means 1million fewer jobs in the EU for automotive suppliers

13. 13 Growing challenges All-round soaring commodity prices – adversely affecting production: –Electricity prices increased by approx. 60% since Jan 2005 –Hot wide strip steel risen by 41%, aluminium by 55% and copper by 174%, since beg 2005 –Steel – BHP Billiton agreed with Baosteel on an 97% increase from last years price of iron-ore, ALSO further consolidation (BHP Billiton/Rio Tinto)

14. 14 Suppliers and VMs must stay on the right side of two huge coming shifts: climate change, CO2 legislation, fuel prices change in the type of car to cheap and cheerful, more fuel efficient and smaller cars, increasing nos. from Asia Defence mechanisms: concentrate on our premium segment lead in innovative technologies focus on developing new types of powertrains and electronics dramatically increase R&D investment improve all-round skills retain training centres of excellence enhance education and competence

15. 15 Industry in evolution Over the past decades, the European automotive sector has shifted from an industrial to a knowledge-based industry From being a low-skilled sector, the automotive industry is gradually changing to a more high-skilled labour force, with increased emphasis on innovation The growing demand for skilled workers is especially significant for the automotive suppliers, who have taken more responsibility in areas such as design and development, through continuing outsourcing Jobs that previously did not demand more than basic skills now require a certain level of literacy, numeracy, language and IT skills

16. 16 Better Regulation CARS 21 - Competitive Automotive Regulatory Framework- Mid-Term review Policy areas: Better Regulation and regulatory simplification Internal market Environmentally sustainable road transport Road safety Trade and overseas markets Research and Development and intellectual property Taxation, fiscal incentives and competition issues Restructuring

17. 17 Restructuring Forum European Partnership for the anticipation of change in the automotive industry Endorsed on 17 October 2007 by the main stakeholders of the automotive industry: ACEA, CLEPA, EMF and the European Institutions is still open to new signatories Member States, regional authorities, clusters Contains a workprogramme of 14 actions to be implemented in the next 2/3 years

18. 18 First step of the EPAC New Project under the Progress programme: Anticipation of Change in the Automotive Industry Partners: CLEPA and EMF Main scope: Creation of an informal observatory of anticipation of change, in order to create an early warning system to avoid the negative effects of restructuring Duration: 12 Month 31.10.2008 - 30.10.2009

19. 19 CLEPA/EMF goals: To understand the Automotive trends for 2020/2050; To increase competitiveness of the industry through a highly-skilled workforce; To establish HRM strategies; To develop regional strategies to support the automotive industry, taking into account in particular the needs of the supply chain; To have a predictable regulatory framework

20. 20 Activities and Milestones STUDY I: Scenarios and HRM strategies of anticipation of change within companies and regions Three studies: STUDY II: Skills levels and employability within companies, regions & sectors STUDY III: Analysis of automotive regions Two Dissemination Events: 23/24 April 2009 6/7 October 2009

21. 21 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Five Deliverables in the contractual period: 31.10.2008 – 30.10.2009 2008 Kick-Off Launch I Study 4.11.2008 Final Report 30/31.03.2009 2009 Progress Report 19.03.2009 Launch II Study 6.01.2009 Final report 30/31.06. 2009 Dissemination Event 22/23.04.2009 Launch III Study 30/31.03.2009 Progress report 19.05.2009 Dissemination Event 6/7.10.2009 Final Report 25.08.2009

22. 22 Thank you for your attention! www.clepa.eu