Supplier Day 2012 R&D Presentation What Do We Do ? We Stop - - PowerPoint PPT Presentation

Supplier Day 2012 R&D Presentation

Innovative Vehicle Solutions 2

What Do We Do ? We Stop Trucks

Innovative Vehicle Solutions 3

Brake adjusters (drum) Brake lining

Sept, 2012

Product Overview

Air Suspension Air Management Brake Control

Suspension control Height control Air cleaner systems ABS EBS Valves Brake actuator Disc brake Air dryer systems

Wheel Brake

LWS

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 Haldex has global centers for

research and development, application and design solutions:

 United Kingdom  U.S. (Kansas City)  Sweden  Germany  Brazil  India  China

Development

Haldex – R&D

Sept, 2012

Winter testing (SWE) Testing Development

Innovative Vehicle Solutions 5

Technology Trends

05/12/2012



Safety Systems

 Trend towards integrated systems.  Increased legislation around Tire Pressure Monitoring and Electronic Stability Control.  Braking distance regulations in NA driving larger drum/ disc brakes in heavy trucks.  Driver Warning and information.  Active Chassis Control - Antilock Brake Systems ABS, Electronic Stability Control System

ESCS, Electronic Brake Systems, Adaptive Cruise Control ACC



Environmental

 Increased emissions regulations:  SCR/ Cooled EGR Technologies for Euro V / VI and EPA 2010 regulation.



Costs

 Fuel and fluctuation labor wages



Vehicle Dynamics Active Chassis Control

 Increased trend to electronic suspension control on trucks in Europe.  Recent introduction of electronic trailer suspension systems.



Telematics

 Tight fit for green telematics to electric vehicles.  Increased use of telematics by fleets to increase vehicle utilization. EGR Exhaust Gas Recirculation SCR Selective Catalytic Reduction EPA Environmental Protection Agency

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Emerging Markets Technology Trends.



Improving infra Structure, increasing trailer freight.



Rising demand for technically more sophisticated and higher value trucks.



India has increasing containerized freight movement. (Increased Inter-Modal Movement)

 Increased refrigerated supply chain. Expected to grow 8-10% over 10 years. (Today 30% of

agricultural produce is rotten when reaching end user in India).

 Increasing technology content of domestic manufacturers to compete with foreign

competitors.



Trend to 3 truck segments.

 Low Cost Segment. (Technically simple and cheap trucks).  Modern Domestic Segment. MDS (Further developed, robust and still extremely favorably

priced).

 Premium Segment. PS(Technically high-quality and high value trucks).  By 2020 MDS and PS will be dominant.



India and China transport systems to be developed into effective multi Modal channels.

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Rebates offered by Gov. for Collision Avoidance Fitment

Global Legislation Status

Shorter Stopping Distance

ESC / RSC 2011 2012 2013 2014 2015 ESC / RSC

Nov ‘11

LDWS / AEBS LDWS / AEBS ESC / RSC ABS ESC / RSC LDWS - AEBS

Greater ABS Enforcement

ABS

ADR / Coach

ABS ABS

Trucks, Buses and Trailers

Key:

ABS – Antilock Brake System ADR – Dangerous Good Carriers AEBS- Advanced Emergency Braking System ESC – Electronic Stability Programme LDWS – Lane Departure Warning System RSC – Roll Stability Control

Euro IV on Buses>6M, HD & MD Trucks

Euro VI

• Sept. ‘14

Euro V Euro V Euro V Fuel Efficiency Fuel Efficiency

05/12/2012

Innovative Vehicle Solutions 8 05/12/2012

Customer Dynamics

TRUCK AND BUS MANUFACTURERS

LARGE VOLUMES, LONG CYCLES 30+ Customers

TRAILER MANUFACTURERS

SMALL VOLUMES, SHORT CYCLES 2,000+ Customers

• Few, large, consolidating, globalising.
• Use technology to meet regulation, comfort,

safety and economics.

• Need for global suppliers and development

partners with system expertise.

• Lead time to introduce new component on a

vehicle is 2-5 years .

• Long term forecasts provided
• Few large, many small, local or regional, low

international.

• Dependant on suppliers for product and

technical support, services and knowledge.

• Lead time to introduce product is 1-2 years .
• High percentage of spot orders.
• Short term contracts 1-2 years.
• Some products are bought just to satisfy

legislative requirements.

AFTERMARKET

SMALL VOLUMES, SHORT CYCLES 3,000+ Customers

END USERS (Fleets)

END USERS WITH INFLUENCE ON SPECIFICATION

• Multiple step distribution:
• Distributors ,
• Repair shops,
• Operators.
• 2 channels to market:
• Independent aftermarket .
• OES (Original equipment supply).
• Various sizes from single owner drivers to

large international fleets.

• High focus on vehicle life cycle cost #1.
• Vehicle and Driver utilization maximization #2.
• Driver safety #3.
• Specification influence:
• High North America.
• Limited in Europe.
• Low in Asia today (many owner Drivers)

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Truck and Bus Regional Attributes

NORTH AMERICA

MAJOR OEM’s = 4

EUROPE

MAJOR OEM’s = 5 WESTERN EUROPE, 2 EASTERN EUROPE

• Conservative to introduce new technology.
• Electronic Stability Control has high fitment.
• 3-5 years to introduce product to vehicle.
• Fleet options for a number of subsystems.
• Large transport fleets drive vehicle

specifications.

• Government incentives for fleets to fit collision

avoidance equipment.

• High technology product.
• 3-5 Years to introduce product to vehicle.
• Long contracts with an average of 7 years

between new vehicles.

• Advanced systems such as driver assist are

increasing.

• Vehicle stability systems are mandatory.
• OEM’s have a high interest in technologies

around efficiency, environment and safety.

SOUTH AMERICA

MAJOR OEM’s = 4

ASIA

MAJOR OEM’s = 7 CHINA, 3 INDIA

• European braking standards apply.
• Large bus fleets.
• ABS Legislation introduction Jan 2013 for 40%
• f vehicles, Jan 2014 for 100% of vehicles.
• European braking standards apply.
• Very conventional brake systems are standard.
• High price sensitivity.
• Reliability requirements are currently not as

strong as EU and NA. These are increasing.

• Large transport infrastructure projects

underway.

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Trailer Regional Attributes

NORTH AMERICA

MANY OEMs, 5 DOMINANT.

EUROPE

OEM’s 4 PRODUCE 80% OF MARKET.

• Steel suspension is common.
• Main brake control technology is ABS (Antilock

Brake Systems).

• Large trailer park. 3-4 trailers to each truck.
• Low incidence of married pairs (Truck to

trailer).

• Basic product to provide function. ie 1M

(Single Modulator) ABS is common.

• Air suspension is dominant.
• Main brake control technology is EBS

(Electronic Brake Systems).

• Stability is mandatory.
• High rate of married pairs (Truck to trailer).

SOUTH AMERICA

5 OEM’s >70% OF MARKET.

ASIA

300+ OEMs (CHINA HAS 7 LARGE, INDIA 10)

• European braking standards apply.
• A number of unique vehicle configurations.
• ABS Legislation introduction Jan 2013 for 40%
• f vehicles, Jan 2014 for 100% of vehicles.
• Legislation for products is being introduced.
• Low trailer volumes in India due to the use of

rigid trucks. Trailer volumes will increase following infrastructure improvements.

• India has 2 road infrastructure projects.
• CIMC China are international with ownership of

Vanguard in North America and LAG Europe.

05/12/2012

Innovative Vehicle Solutions 11

R&D Expectations of a Supplier

Product Safety First

 Haldex supply safety critical brake system components to our

customers. How do we achieve this?

 Good Communication in Essential

 Bad News First – Let’s solve the problem together.

 5 Why, Find the true root cause of issues.

 Please communicate the root cause of your issue.

 Go and See and Analyse .  Communication, communication, communication

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R&D Expectations of a Supplier

Communication Tools.

 Early Involvement.  An agreed Component Specification and Drawings.  Project Plan.  APQP:

 Specification.  Authorised Engineering Change (Note) Documentation  DFMEA (Design, Failure Mode and Effects Analysis)  PFMEA (Process, Failure Mode and Effects Analysis)  Process Flow Diagram  Control Plan  Initial Process Studies  Measurement System Analysis Studies (MSA)  Qualified Laboratory Documentation  Parts Submission Warrant (PPAP Summary Document)  Etc

 International Material Data System (IMDS) data is becoming a

requirement.

Innovative Vehicle Solutions 13

Product recall resulting from a supplier changing one of their processes. Haldex was not notified of the change as the supplier stated that the component still met Haldex drawings and “felt” it would not affect Fit, Form

• r Function.

The result:



Haldex Customer identified field failure and the possibility of reduced braking performance.



NHTSA was notified and Haldex issued a recall of 30,000 units.



These valves had been installed on vehicles throughout the world, including military vehicles at military bases



The costs associated to the recall of these product was 25X the actual sales revenue



The recall and costs associated would had been avoided if Haldex had been notified of the process change as required by Haldex’s Supplier Manuel.



This is also standard requirements for any ISO9001 or TS16949 certified company

12/5/2012

Example of Failure to Communicate.

Non-Approved Supplier Process Change

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We have Common Objectives

I'm glad that the hole is not on our side!

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Welcome to our team

Thank You