linamar success in a rapidly changing automotive industryindustry linda hasenfratz ... where is the...

LINAMAR

Success in a Rapidly Changing Automotive Industry

Linda HasenfratzChief Executive Officer

January 2019

© Linamar Corporation 2

Linamar – Diversified Global Manufacturing

Diversified Manufactured Products that Power Vehicles, Motion, Work and Lives

Linamar Light Metal CastingLinamar Montupet Light Metal Casting | GF Linamar

Linamar Machining & Assembly

Linamar Seissenschmidt Forging

Infrastructure

Food

Transportation

Power

Water

Age

2017 Sales $6.6 Billion Facilities 60 Employees 29,000

Pow

ertrain, Chassis and B

ody


We are Living in a Time of Extreme Uncertainty

Uncertainty Can Lead to

Opportunity with the

Right Approach


Pace of Change

Data Availability

Disruption

Digital Economy

Politics & the Economy

UN

CE

RTA

INT

Y

We are Living in a Time of Extreme Uncertainty


FLEXIBILITY

Flexibility of strategy should be

directly correlated to level of

uncertaintyCULTURE

Rely on who we naturally are as

guide posts

STAY

FOCUSED

Don’t get distracted by shiny objects

KEEP

INNOVATING

Innovation is the key driver of our

competitivenessTHINK BIG

PICTURE

Think cradle to grave, be practical

THINK LONG

TERM

Look past the noise and focus on

fundamentals

Success in Uncertain Times


Future of Automotive


Where is the Automotive Market Going….

Propulsion – ICE, BEV,

Fuel Cell EV, HybridAutonomous Vehicles

Ride SharingRide Hailing vs Vehicle Ownership


Impact of Automated Driving Likely Less Impactful on Demand Than Most Think

Starts work at 8am

Starts

work at

8am

Starts work at

8am

Starts work at 8am

Starts work at 8am

Starts work at 8amStarts work at 8am

Starts

work at

8am

Starts work at 8amStarts work at 8am

Starts work at 8am

Starts work at 8am

Starts work at 8am

Starts work at 8am

?

• Automated driving reduces the number of

vehicles required in off peak times only – we

must have sufficient vehicles to support peak

demand.

• Excess vehicles not needed in off peak times

will need to be parked somewhere close by.

• Only ride sharing reduces the number of

vehicles in peak demand periods.


Assumptions for Future Vehicle Volumes

Peak Demand

Ride Sharing

Untapped Markets Autonomous Driving or Ride

Sharing/Hailing may Open

_

+


Investment & Time to Establish New

Vehicle Propulsion Capacity

Technology

Capabilities

- Range

- Charge/Refuel time

Government

Regulations

Consumer Demand

Cost

- Cost of battery pack for

large sedan $12,000

- Morgan Stanley study

identifies mfg cost premium

EV vs ICE vehicle of ~$8,000

Infrastructure

Readiness

- Electric

- Hydrogen

Future Propulsion


BEV – Why Not Faster?Technical & Infrastructure Challenges

Energy Infrastructure Must Change for EV to Make Meaningful Environmental Improvement

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2006 NA-SIBaseline

2030 NA-SI Turbo Diesel HEV PHEV-10 PHEV-30 PHEV-60 BEV FCV

Fu

el C

on

sum

pti

on

in L

/100

km, g

aso

line

equ

ival

ent

Gre

enh

ou

se g

as E

mis

sio

ns

in g

CO

2/km

Well-to-Tank GHG Tank-to-Wheel GHG Petroleum Fuel Consumption

Electric Propulsion Systems

Gap Diesel ICE to Battery EV not meaningful

Projected 2030 Vehicle WtW GHG Emissions and Petroleum Fuel Consumption Over Combined, Adjusted HWFET/FTP Drive Cycle

Source: Kromer and Heywood, SAE 2008-02-0459


Lithium-ion Batteries

Source: IVL - The Life Cycle Energy Consumption and Greenhouse Gas Emissions from Lithium-Ion Batteries, Mia Romare, Lisbeth Dahllöf, May 2017


Think Big Picture

• Look cradle to grave when

developing solutions

• Ie if your goal is reducing

energy use or waste for a

product you need to assess

such for every step in its life

• Be practical and realistic about what

can happen in what time frame

We tend to focus here

Energy Source

Waste/Emissions

Waste/

Emissions


Where Do We Go From Here?


Flexibility

▪ Have multiple alternatives when making strategic

decisions

▪ Don’t make a bet on one future, create a plan that

will be successful in a variety of future outcomes

▪ Keep resources fluid

▪ Access to cash

▪ Flexible equipment

▪ Ensure workforce multi skilled and flexible

▪ Monitor and measure results to highlight when

you need to shift gears

▪ Learn from mistakes

Uncertainty

Fle

xibi

lity

of S

trat

egy


Preparing for the Future of Propulsion

Hybrid Vehicle

(HEV)Internal Combustion

Engine (ICE)Electric Vehicle

(BEV) & Fuel Cell EV (FCEV)

▪ Focus on Light Weighting, Fuel Efficiency,

Emissions Reduction solutions which offer a

unique value to customers.

▪ Leverage global footprint, vertically

integrated capabilities and manufacturing

reputation to be benefit from increased OEM

Powertrain Outsourcing.

Linamar objective is to pursue content in all Propulsion

categories in order to be well positioned for multiple technology

adoption scenarios.

▪ Continue to increase Content Per Vehicle on

Hybrid Electrics as it will be an important

bridging technology to pure Battery Electric

▪ Offer solutions focused on increased power

density, Noise Vibration Harshness (NVH),

light weighting.

▪ Strong organizational focus on integrated

eAxle technology solutions

▪ Provide Light Weight Aluminum and

Magnesium Body & Structural Castings

▪ Look to augment eAxle offerings for Fuel Cell

Vehicle (FCV) applications, which could play

a key future role in market


Global Light Vehicle Production Growing

Source

IHS Forecasting 2000-2025 Advanced Consensus Projection 2025-2030

i) 1% YoY Growth in overall industry volumes 2025-2030

ii) Production Share of Technologies by 2030 of ICE 50%, HEV 24%, EV 21%, Fuel Cell 5%. (Based on Consensus Average of External Industry Expert Forecasts for EV adoption, Updated Q3 2018)

Actual IHS ForecastAdvanced Consensus

Projection


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even

ues

or A

ddre

ssab

le M

arke

t (B

illio

ns $

CA

D)

ICE HEV EV Fuel Cell

Global Total Addressable Market

Pure Battery EV penetration reaches 20% of the

market by 2030

Updated: October 2018


Content on Electrified Vehicles Growing Quickly

Updated October 2018, estimates based on current projections and EV applications in market.

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Global Content Per Vehicle by Propulsion System

Hybrid Electric ICE


FLEXIBILITY

Flexibility of strategy should be

directly correlated to level of

uncertaintyCULTURE

Rely on who we naturally are as

guide posts

STAY

FOCUSED

Don’t get distracted by shiny objects

KEEP

INNOVATING

Innovation is the key driver of our

competitivenessTHINK BIG

PICTURE

Think cradle to grave, be practical

THINK LONG

TERM

Look past the noise and focus on

fundamentals

Success in Uncertain Times

www.linamar.comThank You Linamar Corporation

@linamarcorp

Linamar Corporation

@linamarcorp

linamar success in a rapidly changing automotive industryindustry linda hasenfratz ... where is the...

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