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Exclusive Interview Dr. Klaus Zehender Member of the Divisional Board Mercedes-Benz Cars responsible for Procurement & Supplier Quality

Bentayga

January 2016 A look as the fi rst of Bentley’s super-SUV rolls o the line

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The Mandarin Oriental, Las Vegas | 7 April 2016 www.automotiveglobalawards.com Editors Note Saluting suppliers’ commitment Visiting the Bentley plant recently, and those drawn from long-serving I was struck by several things; the VW Group vendors, all the while intriguing mix of automation and hand observing the best industry practices crafting, the diversity of suppliers, of just-in-time and tight inventory both in component and module/ control. Editor: system supply, and also the use Outsourcing assembly and Simon Duval Smith of outsourcing assembly and plant plant management has been maintenance and management carefully thought out, to add Editor-in-Chief: functions.  exibility and control costs with less Peter Wooding To build and sell a super-luxury complex operations like tyre and car, be it a saloon, coupe, convertible wheel assembly and paint shop News Editor: or now, with the new Bentayga, a maintenance being outsourced but all Alex Kreetzer super-luxury SUV, takes tremendous the ‘Bentley-speci c’ craft tasks such Advertising: commitment and planning. When the as trim and nal assembly being kept Paul Singh in-house. Bentayga was rst shown in concept, [email protected] the press, and much of the public, The contrast with GM Vauxhall’s reaction was one of bewilderment Ellesmere Port Astra line is stark Deryck Morris mixed with suspicion. How could such but there are some similarities; as [email protected] a prestigious brand build an off-road with GM’s Luton van plant, some capable vehicle? How could it eclipse sub-assembly is outsourced to a the enormous success of the Range contractor and looking after the Chief Marketing O cer: Rover, seen by many as the pinnacle plant’s facilities management is Catherine Jackson of SUV re nement and capability? entrusted to a service company. [email protected] And how could the OEM possibly From making just over 1000 cars Circulation & Distribution Manager: make it pay, given the preponderance in 2003 to 10,100 in 2015, Bentley has Zoe Chapman come a long way, and at Ellesmere of luxury and performance off-roaders [email protected] in the VW Group family? Port, production of the new Astra +44 (0) 208 882 1330 Well, if you have experienced the will have gone from zero to 150,000 Bentayga in the metal, those doubts units in the next few months, and will have been quelled. The car is all thanks in considerable part to a wonder of luxury, performance suppliers’ expertise, innovation and and craftsmanship, and as sales commitment. gures show already, it will be an In response to many requests from our All rights reserved. No part of this magazine may be reproduced or stored in a retrieval system extraordinary success. readers and industry partners, Automotive without the written permission of the publishers. All this has been achieved on a Purchasing magazine will be published Whilst every care has been taken in compiling this publication, the publisher cannot accept carefully-husbanded budget; careful monthly from the next issue; a testament responsibility for any inaccuracies or changes implementation of automation has to its value as an information source and since going to press, or for consequential loss arising for such changes or inaccuracies, extended to some of the trim line platform for discussion and debate. We are or for any other loss direct or consequential and other parts of assembly but proud to be your supplier. Join us to continue arising in connection with the information in this publication. The views expressed by the money has not been wasted on to read about what is without doubt the most contributors are not necessarily also those of installing expensive and in exible challenging and exciting industry in the the publisher. systems where existing systems world! A Publication could be adapted, or where manual handling is most appropriate, such as ISSN 2059-3295 transporting bodies from one building E. & O.E. to another. This is done on a powered © 2016 Three 6 Zero Limited - Automotive Purchasing but manually controlled tugger-type Simon( trolley. [email protected] Additional illustrations freepik.com The sourcing of parts and systems Printed by: The Magazine Printing Company PLC is an intelligent mix of local suppliers

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The Science of Productivity contents January 2016 Cover Story 18 www.automotivepurchasing.com 8 Mercedes-Benz - Magna’s screening the global lightweight supplier landscape for new partners crusader Exclusive Interview Swamy Kotagiri, Chief Dr. Klaus Zehender Dr. Klaus Zehender, Head of Member of the Divisional Board Technology O cer of Magna Procurement & Supplier Quality at Mercedes-Benz Cars responsible for International talks about how Procurement & Supplier Quality Mercedes-Benz Cars tells Simon Duval the supplier can help OEMs Smith about changes in the OEM’s meet the challenges of Bentayga global sourcing and manufacturing A look as the fi rst of tomorrow’s legislations, and January 2016 Bentley’s super-SUV rolls o‚ the line strategies. customer demands. LIGHTWEIGHTING NEW ASTRA ˜ HUNGARY REGIONAL REPORT ˜

Bentley Bentayga - super-SUV Lightweighting30 - 22 with superior suppliers composite solutions and We went to Bentley’s Crewe, UK facility to see the fi rst Bentaygas supply chain realities roll o the line and talked to David Cost, complexity, an uncertain supply Hudson, Manufacturing Project chain and quality worries are just Leader - Bentayga about how supplier some of the issues preventing more collaboration was essential for the new widespread use of composites and vehicle’s success. plastics in automotive.

New Astra Automotive glass - lead-free - to the stars? and lightweight 38 On-glass46 electrical connection is one of the last applications for lead solder in automobiles; one company is working hard to change this, and is also applying lightweight solutions to automotive glazing, as we fi nd out. CES 2016 - the connected The seventh-generation Opel/Vauxhall Astra is vital to car continues to develop GM’s success in Europe. We look at the development The connected car has once again stolen the limelight50 at this year’s programme, visit the Ellesmere Port plant and talk to Consumer Electronics Show in Las Vegas, featuring a range of intelligent, Mike Thomas, Assistant Plant Manager. autonomous, electric and e cient vehicles as we report. Composing lightweight Hungary’s automotive sector solutions goes from strength to strength A60 look at Gurit, a specialist supplier of materials, composite 54We profi le the automotive industry in Hungary and talk to the government components and engineering services. development agency (HIPA) about how the sector has grown in size.

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FE - Automechanika VisProm advert A4 9-12-15.indd 1 14/12/2015 12:55 Mercedes-Benz screening the global supplier landscape for new partners Big changes are afoot in Mercedes-Benz’s global sourcing and manufacturing strategies. Simon Duval Smith examines the new procurement organisation and talks to Dr. Klaus Zehender, Member of the Divisional Board Mercedes-Benz Cars responsible for Procurement & Supplier Quality.

8 ercedes-Benz Cars Procurement Mercedes-Benz Cars Procurement & is now arranged into six Supplier Quality is globally in charge commodities and three regional of all commercial and quality-related hubs: NAFTA, China/Asia and aspects concerning our production MSouth Africa. With the continuously material suppliers – for Mercedes- rising rate of new technology Benz passenger cars, for smart, and for introductions at M-B, from new electric Mercedes-Benz Vans. We have been and fuel cell vehicles such as the working in a matrix organisation for B-Class Electric Drive and the F-CELL, years now, meaning that in addition to to the marque-wide spread of such six commodity groups like powertrain, features as autonomous driving and interior, exterior or electronics, there are other connected car tech, these are additional responsibilities e.g., for our challenging times for purchasing at the different product architectures. German OEM. “Last but not least, the three hubs in Klaus Zehender tells me that the which we have signifi cantly expanded procurement organisation and strategy lately underline the special attention we has gone through some big changes are giving to these regions. We are very over the last few years. “My team at happy with this set-up, but of course a

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C-Class - three stars in four plant The C-Class is the first model series to be truly ‘internationalised’ in production and procurement and as M-B’s ‘backbone’ model in one of the most competitive segments that the time, with the right quality, and with a OEM sells in it has a lot riding on its localisation ratio of about 60% both in successful global roll-out. breadth and in depth. I ask Zehender how his purchasing “That has been quite an achievement; organisation met the challenge and what the team has done an outstanding job, lessons he has learned for forthcoming in close cooperation with our colleagues vehicle launch programmes. “The new in development, production and C-Class is the first Mercedes-Benz logistics. Without going into details, we model series ever to be produced in four will be able to draw significantly on this plants on four continents – Bremen in experience, especially with regard to our Germany, East London in South Africa, next-generation compact cars, which we Beijing in China, and Tuscaloosa in the will produce in Europe, in China, and in US,” he says, adding: “Another first was Mexico for the first time.” the steep ramp up of production at all four locations within just six months, Global expansion, local sourcing between February and July of 2014. As M-B has expanded production For my team, the corresponding facilities in China and North America, challenge was to bring four supplier with the ramping-up of plants and networks to the starting line at the right models made locally, I ask Zehender about the influence this has had on purchasing, both in sourcing ‘searches’ and in maintaining the fabled Mercedes-  The new C-Class is the first Mercedes- Benz quality standards. He sees the link between regional manufacturing Benz model series ever to be produced expansion and procurement thus: “This is very much linked to the in four plants on four continents – ongoing expansion of Mercedes- Benz’ manufacturing operations in Bremen in Germany, East London in these growth regions. It is important to keep in mind that our job involves South Africa, Beijing in China, and both the commercial as well as the supplier quality-related aspects. That More streamlined, more compact, more robust. The KR QUANTEC series. Pure power in the high Tuscaloosa in the US.  is why our teams in the hubs are on payload range – more versatile and powerful than any previous robot family in this class. With the one hand scouts, monitoring unsurpassed dynamic performance for shortest cycle times. With reaches from 1,570 to 3,900 mm ongoing developments in the regional and payloads of up to 300 kg. Our commitment – your efficiency boost. Dr. Klaus Zehender, Member of the Divisional Board scene, emerging new technologies Mercedes-Benz Cars responsible for and players which could be relevant to Procurement & Supplier Quality. us - supporting the superior customer experience of Mercedes-Benz in terms of Find out about pure power for innovation and quality. high payloads: kuka-robotics.com

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Find out about pure power for high payloads: kuka-robotics.com “On the other hand, as they are our future compact car plant in close to the market and the suppliers, Aguascalientes, to be built and they have an important role in operated in a joint venture with our managing the regional supplier set. partner Nissan, will be the key driver A key aspect in this is the fi eld work for this. And we will not only increase of our quality engineers. They visit localisation breadth, the number of Tier One suppliers, but also the depth, suppliers in the Tier-n levels. In both dimensions we are aiming for a localisation ratio of 80%. By the way, it is not simply about fi gures but even more about the required premium segment technologies and securing Mercedes quality right from the start.” I ask him to tell me about the company’s supplier quality management philosophy and how it brings suppliers up to Mercedes-Benz quality so effi ciently. “The hubs are important elements indeed, but they can only be successful in a greater context,” he says. Expanding on this he points to three elements: “First, it is about the entire organisation and our successful Production of the new Mercedes- merger of the commercial and quality Benz C-Class at the East London, responsibility in our business with South Africa, plant. suppliers, with all the related processes. “Second, it is the team of dedicated suppliers well before the series phase experts, including about 400 quality to jointly perform our standardised, engineers who are out in the fi eld uncompromising audits of the supplier’s worldwide, on-site with suppliers to entire system – technology, processes, audit, consult, and support if needed. Alcoa Dura-Bright® wheels workforce, output quality under full load “And third, I think it is about the GREAT LOOKS, EASY MAINTENANCE conditions, and more.” quality of our global supplier set, about every single partner - including our Mexico and quality management long-established suppliers with joint Mexico has been a ‘hot region’ in business going back more than 100 recent years, with its lower labour rates years in some cases as well as all-new, and proximity to the vital US market but capable players emerging, for example, • enhanced protection some in the industry have questioned in the growth regions. Altogether, whether Mexican suppliers can meet this makes for a very favourable • 5 times stronger than steel wheels the quality and service demands of combination.” • up to 47% lighter than steel wheels a premium carmaker like Mercedes- Benz. Zehender is enthusiastic about Partnership with BMW and • reduced CO2 emission the region and its vendors. “There is a potential for suppliers consensus in the industry that Mexico’s Mercedes-Benz’s plant in Tuscaloosa • 5 years warranty importance within the NAFTA growth was one of the fi rst transplants in what region will continue to rise. For us, is now a southern states automotive on the one hand, Mexico has already cluster, and this has attracted many been an important sourcing region with global suppliers and spurred many regard to our US plant in Tuscaloosa, local vendors to meet the exacting Alabama where we build SUVs – the standards of the European OEMs, GLE, the GLE Coupe, and the GLS - including BMW and soon, Aston for markets around the world and the Martin. I ask Zehender what he thinks C-Class sedan for the North American are the opportunities for suppliers to market. reach several OEMs, and will his team “And we will further increase our encourage approaches from BMW sourcing activities in the country: suppliers in the area, for example? www.alcoawheels.com 12 He says the long rivalry between upfront investments. So when a supplier It is a joint responsibility and a team the two German premium brands is can serve both our operations in effort of R&D and procurement. absent in this area: “Together with our Tuscaloosa, Alabama as well as BMW’s “The effi ciencies we generate in areas colleagues from BMW, earlier this year operations from one new location in that are not relevant to customers can we celebrated the 10th anniversary of the middle, this can be a very attractive be invested into content which further the initial project which evolved into scenario.” enhances the superior Mercedes-Benz our procurement cooperation - arguably customer experience. Our modular one of the most successful and effi cient Modules - fashionable fancy or strategy at Mercedes-Benz is thus a key partnerships in this industry. The logic models of effi ciency? pillar of our success.” has not changed - generating positive Zehender points out Mercedes-Benz With the constantly increasing effects for both partners in areas that do having 100 modules across four vehicle complexity of vehicle systems and not affect brand identities or customer architectures and I ask him how has this optional extras, all carmakers are perception at all, e.g. seat structures, changed in his time in purchasing and facing great challenges in trying to belt tensioners, amongst others. how he thinks it will change, particularly standardise and modularise, and with And indeed, it can make sense given the industry’s changing attitude the rapidly expanding Mercedes-Benz for both sides to approach suppliers to modules? He sees modules as a way model line-up, purchasing must be when we have similar or identical forward to speeding models to market coming under a lot of added pressure requirements in the US. and keeping costs down: “Speaking so I ask Zehender how this infl uences “From a supplier’s point of view, only for ourselves, I do not see any kind his purchasing organisation structure there may be a business case with two of ‘fashion’ infl uence. In fact, these and its interface with suppliers. He potential partners which would not be 100 modules across the four vehicle says: “Modules and architectures are there with just one of them, e.g. when architectures systematically drive two key levers to manage this kind of a new high-tech facility requires large technical effi ciency and design-to-cost. increasing complexity. This has been

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www.alcoawheels.com incorporated in our matrix organisation He seems keener than some at the procurement level for some time purchasing chiefs to encourage already. ‘active partners’ from the supply base: “The latest influence has been the “Partnership, along with innovation merger of the procurement functions, and quality, is a key element of our the commercial side and the supplier relationship with suppliers. It is about quality functions, with the technical trust, it is about openness, and about a side. This has put us into an even joint understanding of the business with better position to manage our global all the challenges and opportunities supplier set in a very comprehensive and involved. consistent manner. Feedback from our “We like active suppliers who come suppliers also indicates they appreciate to us with proposals on how to increase this one-stop-shop concept with just their business with us, who ask where one contact for all matters.” they can support our localisation efforts in growth regions. We like ideas on Cooperation and innovation how to achieve more with less through Zehender has been quoted as intelligent technical optimisation, new espousing the ways in which M-B will concepts etc. work more closely with suppliers, with “I meet several suppliers personally the mantra: “Purchasing cooperation each week, and their feedback is and spec optimisation drive sourcing that they appreciate our partnership efficiency and localisation depth.” mindset. Of course it helps when you Most OEM purchasing chiefs that I can offer the kind of growth and outlook speak to include cooperation in every that Mercedes-Benz can. Bottom line: interview and mission statement; I ask we are a very attractive partner to do Zehender how he believes Mercedes- business with.” Benz’s relationship has become The balance between ‘build to significantly more cooperative, and print’, suppliers following drawings and how has this shown itself, perhaps with specifications exactly, and OEMs getting trusting suppliers to bring more daring strong innovations from suppliers is innovations to his team? a constant debate in the automotive

14 industry. Some OEMs have said in the past that the need for technical exclusivity in many areas of the vehicle precludes inviting innovation from the supply base for fear of sharing new technologies. But Zehender seems open to new ideas and points out that Mercedes-Benz is a pretty good place for a supplier to showcase a new component or system: “As I said, we like active partners. We do not want to tell our suppliers how to run a project, which innovations to pursue, where to grow. They are the experts in their fi elds; they need to know their business best. There will always be some areas where it is only about ‘build to print’, and this is perfectly fi ne in these areas. But innovation is really what we are looking for. And many suppliers obviously agree Klaus Zehender (left) talks door panels with Kurt that cutting-edge innovation shines best Sauernheimer, Executive Vice-President Door when it is fi rst presented in a Mercedes- Systems Brose Group, and Jürgen Otto, CEO Brose Benz. Group (right) at the Frankfurt IAA auto show. “Another aspect: we arguably have the most stringent requirements in the industry, so when suppliers can demonstrate they have been able to do Localising, game theory and arm the job right for Mercedes-Benz, this wrestling really is an accolade.” When looking at localising the Being more specifi c on areas of supply base for a far-fl ung transplant, innovation, I ask Zehender about OEMs have traditionally started with EV/hybrid batteries, whether he the simpler, heavier components, feels an OEM should bring battery benefi tting from the savings in not manufacturing in-house, and what are shipping non-added-value parts from Mercedes-Benz’s plans? Interestingly, he their ‘home’ suppliers. I ask Zehender if, divides the battery up as an example of when localising suppliers, he is looking how his team see it in sourcing terms: for specifi c areas of the car to localise “We need to differentiate between more such as these heavyweight parts, the battery - as a system - and battery sheet metal, engine parts etc., or is cells - as components included in that he open-minded as to how complex system. Our wholly-owned subsidiary locally-sourced parts could be? He says ACCUMOTIVE in Kamenz, Germany, he is open-minded about this and also has already produced more than 70,000 interested in helping suppliers develop Li-ion batteries and will also make as providers to global programmes: the batteries for future Mercedes- “Our strategy and localisation efforts are Benz hybrids as well as for the electric aiming at increasing both the breadth variants of our new generation of the and the depth [of supply] at the same smart fortwo and for the smart forfour. time. But we are not localising just to With regard to cells, we have confi rmed, reach some abstract goals. What we do for example, that LG Chem will supply at a very early stage is to identify the us with the cells for the battery system parts with localisation potential. That for smart. stage is also where we discuss with our “Our view on the overall battery R&D colleagues the impact of proposed market is that we expect price design variants, e.g. various surface reductions of 60% within the next materials, in terms of where they can 10 years. We will continue to closely be sourced and what the commercial monitor the commercial and effects will be for each variant. Identifi ed technological advancements.” localisation potentials are then taken

15 Dr. Klaus Zehender: automotive expertise with a business background

of production material and the supplier From 1993 through 1996, he worked quality for passenger cars of the brands as a consultant for McKinsey & Mercedes-Benz, smart and Mercedes- Company, Inc., leading various projects AMG as well as Mercedes-Benz Vans. in restructuring, cost reduction and Zehender has headed the former revenue development in the aviation, purchasing unit Procurement & Supplier energy and consumer goods sectors. Quality (PSQ) since March 2011. Besides his activities as consultant, From 2000 to 2011, he held different he completed a doctorate in Business positions as a Director within Daimler Administration at Stuttgart University, AG, including Strategic Planning & Germany, in 1996. Projects, Finance & Controlling as well Following secondary school as Production Control & Logistics. education and military service, In 1996, Zehender joined Daimler- Zehender studied Engineering and Benz InterServices as Senior Manager Economics at Karlsruhe University in in Business Development Projects Germany and graduated in 1993. In the Zehender has been Member of the Telecommunications and Media, and years 1991 and 1992, he completed Divisional Board Mercedes-Benz Cars served as Senior Manager in Business the MBA Core Program of the Graduate responsible for Procurement & Supplier Planning and Controlling for Mercedes- School of Business Administration at Quality since March 01, 2014. In this Benz passenger cars and smart division the University of Southern California in capacity, he oversees the procurement from 1998 to 2000. Los Angeles, USA.

through deep-dive analysis to determine the awarding process based on Game what makes the most sense. Theory’. I ask him how this theory works “It is always a case-by-case decision and how does it fi t into the perceived based on the triad of the total landed attitude of a purchasing organisation; cost – parts cost, logistics cost, he draws an interesting analogy to tooling cost. Another side of the story more physical pursuits: “Everybody is that local suppliers are often not knows stories from the old times about only interested in local business but contract negotiations that resembled potentially also in exports, to supply us arm-wrestling more than anything else. in other regions as well. This is already Those times are long gone, at least happening, for example with certain as far as we are concerned. We have display types for future models that we the very transparent system of our receive globally from China.” so-called reference calculation, this Zehender has used fl at steel has been in place for many years now. purchasing as an example of what he This provides the underlying facts for calls the ‘competitive acceleration of any negotiations, but they are just one

16 side of the coin. The other is to look for whether it is produced in Germany creative, new approaches to generate or any other location in our global further momentum in the awarding production network. That’s why our process. expectations of both established and “Game Theory, for example, provides potential new partners around the globe interesting insights into how individuals are based on the identical set of value in a group will make decisions and drivers: technology, quality, logistics, mutually infl uence one another in a and cost. Technology translates to the given setup. I will not go into details for innovation leadership that is part of the competitive reasons, but there defi nitely Mercedes-Benz brand’s DNA – we want are interesting opportunities gained suppliers to come up with cutting-edge from using this theory. And just as we ideas to support this. Superior quality are monitoring the supplier landscape, is mandatory simply because our it is also part of our job to keep up with customers expect nothing less. relevant developments and state-of-the- “Logistics and cost are closely related art research in these areas.” in a global production and procurement network because they have a direct What it takes to be a Mercedes- infl uence on the decision whether to Benz supplier source a component globally or to Aside from the qualities of being localise it instead. According to these competitive on the total cost of criteria, our regional hubs are actively ownership of its supplied components screening the supplier landscape for and the desire and quality to join the potential new partners.” Mercedes-Benz family as a global I ask Zehender to sum up in more supplier, I ask Zehender what criteria general terms what he looks for from a his team uses for choosing vendors supplier - what special qualities really in new regions such as China, the US epitomise a supplier partner to the and Mexico. He speaks of the balance OEM? He says: “The typical Mercedes- of local versus global supply and how Benz supplier leads innovation in its his department is constantly on the fi eld, shows an impressive quality track lookout for new partners: “A Mercedes- record, and is an active partner with Benz [car] must deliver on the brand a strong interest in technological and promise without compromise, no matter commercial advancements.” ˜

17 Magna’s lightweight crusader Swamy Kotagiri, Chief Technology Officer of Magna International, tells Automotive Purchasing about how the supplier can help OEMs meet the challenges of tomorrow’s legislation and customer demands for lighter and more efficient vehicles.

wamy Kotagiri is in an extraordinary is spent, in identifying how to take our and perhaps enviable position; existing products to the next step. Or, in he is CTO of a company that does some cases, identifying unmet needs or most things in the auto industry, gaps in the market that we can hopefully Sexcept make cars for itself. As well as fi ll by adding to our existing product its contract vehicle manufacturing arm portfolio,” he says. Magna Steyr, Magna International has On autonomous driving and the supply expertise in many sectors; from connected car, Kotagiri knows when he Cosma body stampings and closures, to wants the car to take over: “Even though electronics, interiors, exterior parts, roof I like driving, I like driving when the roads systems and powertrain. are empty and it’s winding and there’s no At a time when technologies like traffi c,” he says, adding: “But in stop- the connected car and lightweighting, and-go traffi c, hanging on to the steering emissions cutting and fuel saving are wheel and switching constantly between at the top of many carmakers’ agendas, the accelerator and the brake pedals is the pressure on a company like Magna tedious. My Cadillac XTS doesn’t have is enormous. Kotagiri seems to take it adaptive cruise control; what I want is in his stride and is sanguine about how more automated driving functions but not much new technology the average car a fully autonomous vehicle.” driver really needs: “Being able to see And he sees this in a holistic way, as where the next steps are and being part part of the whole vehicle and lifestyle of that leading edge is amazing but most experience: “The changing lifestyle of importantly, how do you keep them people is going to have a signifi cant affordable in a way that the market can impact on consumer electronics being sustain? That’s where most of our time integrated into the car. And because of

18 the data infl ux into the car as a whole, The second would be where else could anything that you can do to help make we evaluate the feasibility and substitute life easier, with distracted driving, is multi-materials. So we’re looking at worthwhile. different types of composites, and also “There are drivers in terms of powertrain magnesium.” and electrifi cation. You want a longer I ask him to be a little more specifi c, to range, which means you want your vehicle tell me about how Magna is meeting the to be lighter; therefore lightweighting challenges within the areas of emissions, comes into play. Powertrain overall and safety and changing consumer demands. electronics will play signifi cant roles.” He responds: “If you look at CO2, there is a multitude of things that affect it. Solid steel background and For example, in a C-segment vehicle in tomorrow’s materials Europe, raising effi ciency in powertrain Kotagiri joined Magna in 1999, in the would be better value in terms of trying to Cosma stamping division, a department cut CO2 emissions versus cutting weight that some industry insiders would cite as compared to a D- or E-segment vehicle. the heart and soul of the company. His “If you look at our body and chassis work there included running all of Cosma’s system group, predominantly it is engineering operations and setting up forming multi-material systems to new plants in some overseas locations, optimise lightweighting. If you look at our so he is very well placed to comment on powertrain systems, we have intelligent how aluminium and composites might fi t pumps which give power on demand. into Magna’s part of tomorrow’s vehicles. If you talk about optical-based driver- But he has his eye on the bottom line too: assistance systems, it’s all about safety. “Advanced materials form phase two of the And in the future there will be a mix of [lightweighting] project to see how much different features, adding what you can weight you can take off a vehicle. But the detect with a camera, such as black ice.” simple way to look at it is: what would be the premium in terms of dollars or euros Adding lightness to Cadillac per kilogram saved? Cadillac may not be the marque “The fi rst phase was to achieve the that springs to mind when one thinks maximum weight savings possible. of lightweighting in automotive but

Magna carbon fibre hoods will feature on 2016 Cadillac ATS-V and CTS-V high performance models.

19 CT6, which has one of the auto industry’s most advanced body structures. One of the 13 components, a front body hinge-pillar, provides the functionality of 35 parts and reduces the number of components by 20%. These weight-saving components contribute to the overall mass reduction of the CT6, enabling it to be more agile, efficient and lighter than competitive offerings. CT6 begins production at the end of the year. I ask Kotagiri what process developments have enabled Magna to produce carbon fibre pieces, such as the hood for Cadillac, at a volume vehicle price? Sheet moulding? Prepreg material? Press moulding instead of the need for autoclave usage? He is a little reserved Magna have just debuted some advanced about the technology but says: “In 2009 technology solutions for cutting mass in Magna created a Composite Center of GM’s flagship brand vehicles, including Excellence and its purpose was to develop the auto industry’s first volume production lightweight technologies that can be of carbon fibre hoods. These will appear applied to mass production vehicles. in the new 2016 ATS-V and CTS-V high The Cadillac V Series is a good volume performance models and are more than vehicle for us to launch this new 27% lighter than aluminum hoods and 72% technology that includes an industrial lighter than steel hoods. grade (not aerospace grade) lower cost 50k Jointly developed with GM, tow carbon fibre and a high Tg fast cure transmission oil pans in the all-new resin package.” Cadillac CT6 sedan are made by Magna Favourable crash behaviour is a from aluminum, resulting in a part quality of composites but it is not easy that is 2.5 to 3 pounds lighter than its to model; I ask Kotagiri if, on the carbon steel counterpart, a weight saving of fibre hood, Magna modeled it for crash approximately 60%. The key is being able behavior or worked with GM engineers on to stamp the required shape within the the modelling, or did GM specify it quite packaging space allowed, which was solved precisely? He cites manufacturability as by working closely together with Cadillac to Magna’s responsibility: “GM is design refine the design for optimum formability responsible for the hood. We did a lot and manufacturability. of modeling and CAE work, but the Magna also manufactures 13 high- work we did was focused on items like pressure aluminum die-cast components material formability studies that aided for the body and chassis of the Cadillac our manufacturing of the product. GM

20  In these early stages, Magna had engineering presence on- site at the customer in the US, prototype and tooling validation activity in Germany (through our BDW acquisitions that occurred around this same time), and the vehicle first launched in China before coming to the US. This was a truly global programme that Magna was able to proactively support.  Swamy Kotagiri, Chief Technology Officer Magna International.

was responsible for testing and system requirements of the underbody castings, validation.” as well as the aluminum structure I ask Kotagiri about Magna’s own surrounding them.” carbon fibre/composite supply chain and Magna has worked on many hot- where is it buying raw material such as stamped high boron and martensite thermoplastic or thermoset, prepreg etc., steels to save weight (in areas like A- and “We worked very closely with our supply B-pillars/sill structures) and Kotagiri is partners in the development of our end rightly proud of the company’s expertise product. The fibre comes from Zoltek, a in high-strength steels: “Yes, we are an subsidiary of Toray Group, and is a 50k industry leader in areas of hot stamped industrial grade fibre. The resin system is body structure applications such as pillars, epoxy base and it is a prepreg system that rails, and body side apertures. It is a key is compression molded,” he says. technology that addresses the need for both lightweighting and enhanced vehicle Aluminium alternatives crash performance. A good example is I ask Kotagiri about the process of last year’s Automotive PACE award winner working with Cadillac on designing for the Acura MDX one piece door ring aluminuim parts in place of steel ones, which was a collaborative development how did it take place: “As it relates to the project between Magna, Arcelor-Mittal, aluminium castings, in the preliminary and Honda Engineering. We have hot stages of the program GM made high level stamped products for many customers in architectural decisions on the vehicle that all regions.” led to it becoming aluminium intensive,” Coming back to Cadillac not being he says, explaining: “In these early stages, the first name that might come to mind Magna had engineering presence on-site when thinking weight saving and making at the customer in the US, prototype and a nimble automobile, I ask Kotagiri what tooling validation activity in Germany he thinks the future holds for ‘adding’ (through our BDW acquisitions that lightness to Cadillac and other brands; occurred around this same time), and where he sees the greatest weight the vehicle first launched in China before savings being made and will Magna be coming to the US. This was a truly global there. He defers to his OEM customer programme that Magna was able to but says: “GM will have to answer this proactively support.” question, but we can say that the Cadillac Aluminium is light but magnesium is V Series performance statistics speak for even lighter and stronger but more difficult themselves. We are thrilled to play a part to work with; was it considered for any of in providing superior lightweight products the applications on the GM vehicles and that play a part in improving the overall where - steering wheel armatures, cross- vehicle performance. We certainly see an car beams or radiator frames/front-end increasing pull from our customer base module pieces, I ask him: “Magnesium to provide lightweight technology that we was not considered for body structure are applying in our material, product, and applications for a number of reasons, processing.” ■ mostly due to the nature and performance

21 Automotive Bentley’s Purchasing travelled to Bentley’s Crewe, UK facility to see the first Bentaygas super-SUV and its roll off the line and talked to David Hudson, supplier partners Manufacturing Project Leader - Bentayga about how supplier collaboration has helped in building a whole new style of vehicle using top-quality but highly cost-effective manufacturing processes.

22 entley’s fi rst foray into the SUV The harness is so large and heavy that it segment is very important for takes two men to carry from the pre- both the company’s ongoing heating room, where it is warmed to success and for the local facilitate fi tting it into all the curves and and global supply base. Scheduled corners of the body. Bfor production of about 3,000 units The manual transport of the painted originally, great interest (and many body might seem an antiquated way of deposits lodged pre-launch) meant moving such a large assembly but this that output plans have been revised fi ts in with Bentley’s careful investment upward to 5,600 for 2016. With this rise and cost management as David Hudson in production numbers, the carmaker has – Manufacturing Project Leader, told added some automation to its lines and me when I asked if this ‘economical’ processes but has kept the handcrafted attitude comes from the Group or from element very fi rmly and proudly in place. Bentley itself: “We’ve invested heavily The carmaker employs some 4,000 in Bentayga, as part of the biggest people at its Crewe plant and produced investment programme in our history, 11,000 cars in 2014. There are are no spending over £840 million over three stamping facilities at Crewe - all bodies years,” he says, adding: “We’re also a come from Europe; Zwickau in Germany very responsible business and constantly for Continental and Flying Spur, and look at ways of manufacturing even Bratislava in Slovakia, where Porsche more effi ciently. Particularly given the Cayenne and VW Touareg bodies are space limitations that we have. As a low made, for the Bentayga. volume manufacturer, it’s vital to analyse In contrast, as well as the W12 Bentley every investment carefully. And it’s engines, since the end of 2014, Crewe always wise that Bentley demonstrates a has built all the W12 engines for Audi positive economic attitude to enable us and VW; previously these were made in to make low volume strategies work in an VW’s engine plant in Salzgitter, Germany. effi cient way.” This move has meant Bentley exporting On the use of a pre-production engines to cars made outside of assembly area - where the dash and the Britain for the fi rst time. The additional wiring loom is fi tted, I ask Hudson if this production will increase W12 engine is done just due to space considerations production in Crewe to 9,000 a year in or is it part of a larger plan. He says: 2017/18 and create 100 jobs. “Space considerations were a major factor but we also looked at building Pre-assembly and wiring harness sub assembly parts as close as we could Bentayga production starts with an to the most relevant fi nal assembly unpainted body-in-white arriving from processes. This was key. We also need the VW Group’s Bratislava plant. It is to future proof our business and as a checked, cleaned and painted; currently low volume manufacturer, we need to the most popular colour is Bentayga be very fl exible and be ready for change. Bronze. From the paintshop, the body The layout of our Bentayga line is a good is moved, by hand at present on a example of this.” manually-controlled powered trolley, across a service road to the pre- Automating interior trim assembly area. This is a dedicated Automation has come slowly to area where the dash (IP) Bentley; the Bentayga has been the is fi tted to the car spur to spend some £115 million ($171 along with million) on the SUV line as part of an the wiring overall £840 million investment over two harness years, from 2014. from Of this, more than £1 million has been Leoni. spent on the Bentayga trim line with

23 automated joining and decoration of some trim panels by KSL CNC sewing machines and automated cutting of backing panels. Bentley interiors: Simple conveyor lines have been installed to avoid operators carrying heavy seats and the line uses Gerber leather cutting machinery to follow the colour codes chalked onto the fi ne Nappa hides perfection without that come from supplier Pasubio, an Italian company that sources leather from bulls in Southern Germany, as they are the only beasts with the larger skins that compromise Bentley requires. Andrew Davies, Senior Production Planning Engineer for Bentley, says: “About four years ago we knew we At Bentley, customer research It can take up to 15 hours to needed to rethink our leather workshop.” studies even extend to the smell assemble a steering wheel and up Bentley began an intensive evaluation of of the leather hides. This resulted to six days to complete the entire all systems available on the market: they in the reintroduction of a complex, trim. “We need absolute reliability chose Gerber Technology’s Taurus leather traditional tanning process to from these systems. If we fall behind cutter, installed two systems, and achieved create a rich and mature leather in our ability to supply leather trim an 8-10% improvement in hide utilisation. aroma, evoking that of vintage cars. parts, then every operation down the Bentley also extended its materials Customers select from a large palette line suffers,” comments the Senior savings and process optimisation to the of hides, including a range of 24 Production Management. On average, cutting of other interior materials like ‘standard’ colours as well as a wide some 400 leather trim parts are cut carpets and other specialised materials selection of rich ‘heritage’ colours, and processed for a Bentley interior with the installation of a GTxL Gerber taken from previous Bentley models. using a total of 15 hides. Every hide is cutter. “Because Gerber cutters cut so We speak your language These colours may be specifi ed in pre-tensioned and checked for quality accurately, we require little to no buffer in single-tone or duo-tone combinations and imperfections. our nests,” said Davies. The company also in four different styles (colour splits) As a welcome bonus, Bentley also relies on AccuMark for pattern design and allowing the customer to choose extended its materials savings and nesting, and an Infi nity inkjet plotter for Automotive not just the colour scheme but also process optimisation to the cutting documentation purposes. the mood of the interior – from very of other interior materials like carpets “We demand a lot from these elegant to more sporting. and other specialised materials, with machines,” says Davies, adding: “We need A total of six Taurus leather cutters the installation of a Gerber cutter absolute reliability from these systems. Voith Industrial Services specialise in non-core services. The result is a from worldwide leading supplier dedicated to textiles. Production If we fall behind in our ability to supply delivering Facility Management and combination of fit-for-purpose service for CAD and CAM solutions provide Management says: “Because Gerber leather trim parts, then every operation technical services to the Automotive delivery and value for money. cut pieces of exceptional accuracy, cutters cut so accurately, we require down the line suffers.” industry, including Paint Shop Cleaning not only for Bentley seats, but little to no tolerance in our nests.” The On average, some 400 leather trim and Component Assembly. Our The Automotive industry thrives on the also for complete leather interiors, company also relies on AccuMark- parts are cut and processed for a single objective is to raise the standard of supply of first-rate products and including steering wheel covers. Software from Gerber for pattern Bentley interior, using a total of 14 hides. outsourced service delivery by providing services. We place a great deal of Some 15 years ago, Bentley chose design and nesting of prestigious Every hide is pre-tensioned and checked reliable and sustainable services at the emphasis on building solutions around Gerber Technology’s Taurus leather materials. for quality and imperfections. right quality and cost. our client’s needs and adding value cutting solution, based on a detailed where possible to reach and exceed technical comparison with competitor Supplying a super-SUV Our focus sits squarely upon building their expectations. So, visit our new machines. Bentley does not have a supplier park; and some of its supply chain is quite partnerships with our clients. To achieve website and get in touch to find out long. I ask Hudson if the OEM is actively this, we implement cost control how we can help you. encouraging suppliers to locate closer to mechanisms as well as innovation and its facility. He talks of the balance of in- continuous improvement tools to add and out-sourcing: “We always encourage value to the strategic outsourcing of www.uk.voithindustrialservices.com suppliers to be closer but it needs to fi t within our strategy. And this includes A cost effi ciency. It is often more effective high and cost effi cient to build in house rather accuracy than use suppliers. And that fi ts with our of cutting brand DNA and what we are recognised even with very for. Of course though, as we grow this will complex shapes: become a relevant topic of conversation.” Bentley relies on Quite a few ‘straightforward’ a total of six Taurus components such as wiring loom, Visit us at stand 9D31 leather cutting systems from Gerber Technology. headliner substrate, and seat frames and other metalwork travel some distance 7-9 June 2016: Halls 9-11, NEC to the plant and many are from non-UK

24 We speak your language Automotive

Voith Industrial Services specialise in non-core services. The result is a delivering Facility Management and combination of fit-for-purpose service technical services to the Automotive delivery and value for money. industry, including Paint Shop Cleaning and Component Assembly. Our The Automotive industry thrives on the objective is to raise the standard of supply of first-rate products and outsourced service delivery by providing services. We place a great deal of reliable and sustainable services at the emphasis on building solutions around right quality and cost. our client’s needs and adding value where possible to reach and exceed Our focus sits squarely upon building their expectations. So, visit our new partnerships with our clients. To achieve website and get in touch to find out this, we implement cost control how we can help you. mechanisms as well as innovation and continuous improvement tools to add value to the strategic outsourcing of www.uk.voithindustrialservices.com

Visit us at stand 9D31

7-9 June 2016: Halls 9-11, NEC requirements and Hudson says that this has meant finding more space: “Bentayga will significantly add to our volume so we have had to increase our warehouse space. It’s a challenge we’ve had on site as we have space limitations but we are overcoming it. It won’t go away as our volume continues to increase but we build to sequence so we cross-dock where we can, utilising our factory space as best we can to manufacture.”

Insourcing/outsourcing assembly Bentley assembles IPs and some other modules that many carmakers would have built by a tier supplier. Aside from quality maintenance and the range of options, I ask Hudson what is the reasoning behind this; he says: “There are a number of reasons for this. Firstly, Bentley cars are famous for being handcrafted in Crewe. This will never suppliers. I ask Hudson how open Bentley change. It’s part of our DNA. Added to that is to bids from UK suppliers for new we have spent over 75 years perfecting our programmes; he is enthusiastic but feels manufacturing techniques to maintain he must temper this with a reference to the the upmost quality standards. This is on a VW Group’s sourcing organisation: “Yes, very complex product as well, one we have Bentley assembles IPs we’re happy to talk with all suppliers but designed, engineered and finally built, and it needs to be a good fit for our business. so are the best people to follow as much of and some other modules That’s the driver for us. It also needs to the process as we can. Of course, where it work within the Volkswagen purchase makes strategic sense to do so, we take that that many carmakers process.” decision [to outsource assembly], but we ask Takt times in the plant vary, from 8.5 a lot of questions before taking that path.” would have built by a tier minutes on the established Continental Bentley are using a plastic-framed line to 90 minutes for the more hand- front end module for the Bentayga that supplier. crafted Mulsanne. The Bentayga is at 17.6 is very impressive; this is assembled by minutes at present but as Simon Bennion, the supplier and I ask Hudson if this was Senior Production Manager, Bentayga developed from supplier ideas or from Assembly and Cabin Trim tells me: “We will the OEM’s own engineering teams. He bring this down to 14.7 minutes in 2016, stressed the collaborative nature of these using the old Mulsanne line that we have types of modules and packaging: “This was converted for the Bentayga with the £20 very much a joint collaboration, as are so million we have spent on equipment, with many of our supplier collaborative parts. assistors from Indeva for seat, door and IP We are integral in the design phase to all handling.” parts and make sure they are the best fit Such a short takt time for a vehicle with for our cars.” so much craftsmanship is most impressive Bentley outsources the fitting of and I ask Hudson if this has affected the tyres onto wheels to Voith and they are supply chain at Bentley. He says suppliers delivered on the supplier’s own stillages, have been very supportive in this area: “In then swapped onto Bentley’s own racking. simple terms, it hasn’t affected the supply I ask Hudson if this was a conscious chain, because we involve our suppliers decision to have only Bentley equipment from the outset and agree on suitable on lineside, he says: “As we are in the very takt times together. We need to build early stages of production, this is the case in contingency, when volumes go up, or but will soon change to sourcing directly maybe down, so it’s important they can from the supplier. Another possibility is support us for every eventuality.” tyre and wheel assembly in house, which By its very size, the Bentayga demands we could look at in the future as the large components, assemblies and complexity of supply routes grows.” modules, with resulting pressure on On the subject of outsourcing assembly, warehousing and buffer stock space even if it is done in-house by a contractor,

26  We encourage suppliers to get in GET THE HIGHEST touch with us. We POSSIBLE YIELD. have strong growth NO BULL. projections so good suppliers will help us meet our strategic plans.

David Hudson, Manufacturing Project Leader - Bentayga.

I point out how contractors sub-assemble chassis modules in-plant at GM Luton van and Ellesmere Port and ask Hudson what are the next operations that could be sub-assembled in or out of the Crewe plant by a company like Voith. He is enthusiastic With the most advanced nesting engine and positive about further supplier involvement: “We will continue to utilise our limited manufacturing ever created, Gerber’s Taurus II maximizes space in the best possible way, this is for our own hide yield and gets you the fastest return manufacturing needs. We encourage suppliers to get in touch with us. We have strong growth projections on your investment possible. Find out so good suppliers will help us meet our strategic more at gerbertechnology.com. plans.”

Facilities investment and management On facilities management, I ask Hudson how Reach your optimum. much Bentley is using outside companies to help with areas like paintshop and general plant cleaning, energy management, facilities design, and how this might grow in the future. He says: “We use a small number of suppliers for some of our maintenance

A4_Trans_halfpage_vert_adFNL.indd 1 3/27/15 1:52 PM Simon Bennion says the investment in handling equipment will bring down the already tight takt times for the Bentayga.

cleaning operations. As a low volume manufacturer, it makes sense to do so. Possibly, as our volume grows, this may need to grow. But not a huge amount. As always, it will need to be cost effective and work on our volumes.” low volumes, against the significant With the large vehicles that Bentley investment it would cost, it doesn’t make does, and likely always will produce, sense for our business to introduce carriers and conveyors are necessarily rotisserie conveyors. We have to balance heavy duty and expensive; on the final spend with return on investment.” assembly line the OEM uses overhead All Bentayga bodies are currently conveyors with no rotisserie function painted at Crewe, while many of the to ease underbody component fitting. other models’ bodies arrive ready painted I ask Hudson if these may come in or from Germany in the standard palette of are the overhead operations on all the colours. Hudson says this may change with vehicles within acceptable ergonomic investment in the paintshop but there are ranges. He says careful analysis of return space considerations: “We are analysing on investment is key in this area: “We all options, maybe even including full analyse the ergonomics with this in mind car manufacturing, but it needs to tick a www.leoni.co.uk when we design any car or facility, making number of boxes, including overcoming Electrical sure it abides by the British Ergonomic site expansion limitations we have. But Standards. So we build that in. On our we are expanding with that in mind. This includes becoming more self-reliant as our distribution systems growth strategies develop.” I congratulate Hudson on the tightly- Full service supply Suppliers to the Bentayga costed development of the Bentayga line and he cites suppliers as being instrumental in this: “We actually AIR SUPPLY UNIT: WABCO PASSENGER OCCUPANT DETECTION involved our suppliers from the very start ASSISTORS (FOR LIFTING SEATS, DASH, SYSTEM: DELPHI DOORS ETC ON THE LINE): INDEVA PEDAL SENSOR: HELLA of designing the Bentayga line, which AUTOMATIC TRANSMISSION FLUID LINES: PISTONS, VALVE SEATS AND GUIDES: made the process very efficient itself. CONTITECH FEDERAL-MOGUL It’s important to engage the relevant AUTOMATIC TRANSMISSION: ZF PLANT PRODUCTION CELLS, CONVEYORS: stakeholders at the start and make sure FRIEDRICHSHAFEN DURR BEARINGS: AB SKF PROPELLOR SHAFT AND DRIVESHAFTS: GKN they can work with you rather than just BRAKE CONTROL SYSTEM: BOSCH DRIVELINE presenting a finished solution which they BRAKE LINE: TI AUTOMOTIVE RADIATOR: DELPHI have to accommodate. We also focused on CENTRAL CONTROL SYSTEM: PREH SEAT BELTS: KEY SAFETY SYSTEMS manufacturing efficiencies. CHASSIS COMPONENTS: ZF SEAT FRAMES: CONTINENTAL FRIEDRICHSHAFEN SEAT RUNNERS: BROSE “Building the car in Crewe wasn’t DOOR HINGES: EDSCHA SEWING MACHINES: DURKOPP AND KSL guaranteed; we had to put a compelling ELECTRONIC CONTROL MODULES: BOSCH STEERING COLUMN ECU: APAG ELEKTRONIK case together to make it happen. This EXHAUST: UNIPART EBERSPAECHER STEERING WHEEL ARMATURE: TRW included driving out inefficiencies. And EXTERIOR AUTO-DIMMING MIRRORS: AUTOMOTIVE TIMISOARA also looking at what existing platforms GENTEX STEERING WHEEL SWITCHES: PREH LEONI is proud to have supplied electrical distribution systems to Bentley for more than 60 years. HEADLINER (TRIMMED IN LEATHER/CLOTH BY SUBFRAME ASSEMBLY: GKN we could use. For example, we modified Co-located teams, including component development and dedicated prototype and production facilities, BENTLEY): INDUSTRIALESUD AUTOSTRUCTURES our Continental carriers to enable us to provide day to day support as part of our long-standing business relationship. INSTRUMENT CLUSTER: BOSCH SUSPENSION COMPONENTS: ZF use them for Bentayga, saving money. INTERIOR LIGHTING: 3M FRIEDRICHSHAFEN As a global Full Service EDS Supplier LEONI can support customers from the initial concept studies right LEATHER CUTTING MACHINES: GERBER TRANSMISSION: ZF FRIEDRICHSHAFEN And as a low volume manufacturer, LEATHER: PASUBIO WIRING HARNESS: LEONI manual operation processes rather than through to the safe installation of the finished product. OIL COOLERS: BEHR

28 LEONI Wiring Systems UK Ltd · [email protected]

Automotive Purchasing_Bentley_210x148.indd 1 07.01.16 09:21 Voith delivers stillages with tyre and wheel assemblies that are transferred to Bentley’s own racking for the production line.

automated processes sometimes is more efficient. The investment for our manual engine marriage process for instance was £1 million. I’ve known automated processes to cost ten times that amount.” Given the refreshingly collaborative approach that Bentley have taken with their supply base, I ask Hudson what steps should a UK (or other) supplier who wants to supply Bentley take; in essence, what does it take to be a Bentley supplier. He is encouraging but reminds me that Bentley is part of a larger organisation: “Well firstly, given our position within the Volkswagen Group, potential suppliers need to be on the Volkswagen Group approved supplier list. And pass the necessary code of conduct and quality conditions under that. And then we open discussions with them and see if we can work together.” ■

www.leoni.co.uk Electrical distribution systems Full service supply

LEONI is proud to have supplied electrical distribution systems to Bentley for more than 60 years. Co-located teams, including component development and dedicated prototype and production facilities, provide day to day support as part of our long-standing business relationship.

As a global Full Service EDS Supplier LEONI can support customers from the initial concept studies right through to the safe installation of the finished product.

LEONI Wiring Systems UK Ltd · [email protected]

Automotive Purchasing_Bentley_210x148.indd 1 07.01.16 09:21 Composite solutions for a lightweight revolution

ccording to a recent statement by The growing trend toward the US Department of Energy, “lightweighting” vehicles through use automobile components made of lighter materials such as CFRP is with advanced composite driven in the US greatly by the Corporate materials could reduce the weight of Average Fuel Economy (CAFE) fuel Apassenger cars by half and improve fuel effi ciency standards that compel OEMs effi ciency by nearly 35%. That’s one of to achieve a fl eet fi gure of 54.5 miles the primary reasons that automakers per gallon by 2025. And, in the results are ramping up use of composite parts of a recent survey by J.D. Power, new car made with carbon fi bre-reinforced buyers in the US stated fuel economy as plastics (CFRP), and other advanced the most important factor in their choice materials, in their vehicles. of new vehicle.

30 Composite solutions for a lightweight revolution

Cost, complexity, an uncertain supply chain and quality worries are just some of the issues preventing more widespread use of composites and plastics in automotive reports Simon Duval Smith.

CFRP are both lightweight and especially aluminium and magnesium alloys, using new strong, up to 10 times stronger than steel, heat treatment and forming technologies. 50% lighter than steel, and 30% lighter than And to combine some of these new (to aluminium. automotive applications) materials, there In addition to improved fuel effi ciency, CFRP have been extraordinary advances in joining components can contribute to safety since they technology. From Ford’s use of many different can absorb up to 12 times more crash energy types and size of rivets in its ground-breaking than steel. F-150 pick-up truck, and new adhesives, to As well as these advanced materials, OEMs Honda and other OEMs’ advanced multi- are increasingly looking at new versions of material welding solutions, the future of joining steel and alloys; from new mixes of boron- and dissimilar materials in high-volume, market- martensitic-rich high strength steels (HSS) to competitive applications and the contribution

31 it can make to lightweighting looks very lighter cars: Overall “right sizing” of exciting. vehicle, topology optimisation, material selection, gauge selection and material View of the mass production utilisation,” she says, adding: “We are makers - General Motors and Ford using HSS, high strength interstitial- I talked to experts from OEMs, tier free steels, bake hardening steels, high suppliers and materials innovators, strength low alloy steels to 35.2% mix, and started by asking Dr. Ing. Petra advanced high strength steels (AHSS) Krammer, Manager of Advanced with 9%, ultra high strength steels Manufacturing Technology, Adam Opel, (UHSS) comprising complex phase about how much scope does she see for steels, martensitic steels with 10.2% and composites replacing steel structures/A press hardened steels with 10.2%. surface panels on high volume “In aluminium we use sheets: production cars. She cited cost and 7xxx series with 1.6% and 6xxx series cycle times as the present drawbacks: with 0.8%. The specifi c aims of the “Semi-fi nished material prices, for items development (of the latest series such as cycle-time-optimised resins and of passenger cars) were low weight, manufacturing process, need to come crashworthiness, durability and down. We need to see the reduction of stiffness.” shrinkage and curing time for prepregs. Gökhan Do˘gan, New Projects And we require improvements in the Stamping Supervisor, Tool & Die standards of process steps, using more Department at Ford concurred with automation and simplifi ed tools. Cycle Krammer: “In the next fi ve years material times need to be close to present usage in automotive bodies will change volume production standards of about from mild steels to boron and dual one minute. These are the prerequisites phase sheet metal (DP) materials. for usage in volume production.” Stamping out panels from boron steels I ask Krammer about the new requires big press line investment and Petra Krammer Opel/Vauxhall Astra, a car that has specially designed tools. “However, no aluminium/composite parts but is if you change the material to DP you of Opel says 120 to 200kg lighter than the outgoing can use the same press line and the model. How did the OEM save so much tooling won’t be as expensive as boron customers in the weight without using any lightweight steel tools. Also the weldability and materials? “We started with our effi cient paintability of DP material is better than volume segment fundamentals approach which enables boron steels.” us to set the right parameters for One may not immediately think are unwilling to pay of Opel/General Motors Europe as being a centre of lightweighting additional money for development and I ask high-tech lightweight materials. .

32

Hang-on parts and complete composite bodies With hang-on parts, many OEMs outsource doors, engine hoods, and trunk (boot) lids and I ask Krammer if she sees this as an area where an OEM should keep the lightweighting of these Krammer whether she feels that GM components as a core competence, Europe has the skill base to handle or buy it in? She says: “This is always more aluminium/composite structures dependent on the specifi c product in the future or will this not be needed? programme. Each programme must She points to the current use of decide, for example, on a make or buy aluminium in some hang-on parts: strategy for certain components.” “Each OEM has to build-up internal Several composite component know-how to be able to implement new makers have shown examples of very materials. We are well prepared; the rapid (and thus lower-cost than steel) aluminium engine hoods of the Insignia design drawing to completed ‘body-in- and the Zafi ra are built in our German white’ using composite construction; plant in Kaiserslautern.” given the speed (and thus economy)

34 New stamping technology has enabled complex shapes like the tornado line to be made in steel but other lightweight materials may give scope for even more adventurous styling.

of development and proving what as aluminium alloys. We will certainly composites offer, does Krammer think see adventurous styling with new metal that a full monocoque body/chassis for alloys. a low-cost car is a possibility? “We are “Regarding composites, it is always looking for the right material dependent on the matrix, be it at the right place within the given thermoset or thermoplastic composite, framing conditions,” she says, with the the resin and the manufacturing process reserved view that: “While the current itself. Therefore there is no general materials and processes of composite answer possible. For molded plastic construction remain too expensive for it is easy to generate any shape our application in affordable cars, we will designers would like to see. Styling defi nitely watch future developments will not be the limiting factor for new closely.” materials usage!” Many OEMs spend a lot of time and money on quality inspection of Joining and the future Gökhan Doğan of incoming aluminium sheet, extrusions In the last few years, there have and castings. This does not happen been great advances in adhesives, I Ford says the next 10 so much with steel. Krammer is quite ask Krammer if these are getting to the satisfi ed with the quality of incoming point where manufacturers can drop years will see outer materials and the involvement of some welding, crimping and riveting suppliers: “We have one global aligned applications: “Yes, there are indeed panels made from process for material acceptance good advances in adhesives. Currently independent of the material. Suppliers the favoured approach from Opel/GM carbon fi bre and are delivering according to our product engineering is to combine specifi cation and continue to work with adhesives with other joining methods UHSS for structural us during the material development for an optimal joint.” And in joining phase,” she says. dissimilar metals, I ask Krammer if parts. her teams have experimented with Toeing the tornado line the Honda system of welding different In recent times we have seen metals: “No, we are working with our GM much more adventurous styling on patented welding system for aluminium/ mainstream, high volume, low cost steel joints,” she says, adding: “We are vehicles. Features such as as the looking at magnetic pulse technology ‘tornado line’ on the new Astra have and monitoring its progress.” been made possible by advances in It is tempting to speculate on the steel stamping technology. With the next application of lightweighting in a weight saving achieved on the Astra, GM Europe/Opel vehicle and how will using various steels, I ask Krammer if it be different, but Krammer is guarded steels and high strength steels have in her view: “We apply our lightweight advanced to the point where aluminium strategy to each vehicle and each and other lightweight materials such vehicle parameter is a balance within as composites, may not be seen as the vehicle development process. Which necessary on high-volume cars. parameters are most important for the She is refreshingly open-minded fi nal material selection are dependent about the future of materials on volume on market segment and customer production cars: “Stamping technologies expectations. will be optimised for new steel as well “What holds us back from the greater

35 lightweight and rigidity. Gordon Murray Design Limited has been developing iStream Carbon for the last two years with partners Toray Industries, Innovate UK and ELG, and the process is now fully industrialised. Unlike any other carbon fibre chassis technology, iStream Carbon is a fully mechanised system with a cycle time of just 100 seconds. iStream Carbon is true Formula One racing technology utilising two carbon skins use of composites is clearly the cost. sandwiching a honeycomb core, unlike Customers in the volume segment are many expensive handmade supercars unwilling to pay additional money for which employ monolithic (single skin iStream Carbon high-tech lightweight materials.” carbon panels). Murray says that the low Ford’s Gökhan Do˘gan is more specific cost investment and piece part cost of uses two carbon in his answer when asked what roles he iStream Carbon components will enable sees carbon fibre, aluminium and UHSS it to be used in sub premium market skins sandwiching playing in high volume lightweight segments. vehicle production in the next 10 years: iStream and iStream Carbon can a honeycomb core, “The outer panels will be made from cater with annual production volumes carbon fibre and for the structure parts between 1,000 and 350,000 units per unlike many expensive we will be using UHSS.” year at a cycle time of 100 seconds and can reduce capital investment by up handmade supercars iStream - a new stream of light- to 80% reducing manufacturing energy weight possibilities? by up to 60% whilst offering new levels which employ Professor Gordon Murray, of Formula of rigidity, corrosion resistance, safety, One and many other project designs durability and low cost lightweighting. monolithic (single skin fame, launched his iStream Carbon Setting iStream in the context of car manufacturing system at the 2015 Tokyo making in general, Professor Gordon carbon panels). Motor Show; in the form of the Yamaha Murray says: “Lightweighting is the ‘Sports Ride Concept’ sports car project, final frontier in the automotive industry an in-house Yamaha concept design fight to lower emissions. There have Gordon Murray sees based on an iStream Carbon chassis been great strides forward in engine developed at Gordon Murray Design design, electrical control systems, tyre lightweighting as the working with the Yamaha team. iStream design and transmission technology, is being promoted as the the world’s but we are now experiencing a plateau final frontier in the first affordable high volume carbon fibre in the advance of technology where the chassis structure, bringing Formula One law of diminishing returns comes into automotive industry, materials and technology within reach of play. A step change in vehicle weight to the everyday motorist. enable downsizing of powertrain and to fight emissions and iStream Carbon is derived directly components is all we have left in the from Gordon Murray Design’s highly armoury. improve efficiency. successful iStream Manufacturing “Light weighting is important for System, and is said to offer: internal combustion engined cars, but ■ a lightweight chassis system without even more important for hybrids and the cost increases associated with all electric vehicles. iStream and iStream current lightweighting technologies Carbon is that step change and is the ■ a large reduction in capital world’s first affordable, high volume investment bonded composite structure which sets ■ a significant reduction in new standards of safety, rigidity and manufacturing energy durability. iStream delivers performance ■ new levels of product flexibility from through lightweighting. iStream Carbon a single platform does not replace our existing iStream ■ new levels of chassis rigidity and manufacturing process, it sits alongside durability and corrosion resistance our standard system to open up more ■ new levels of safety market segments for us. We are currently The new system replaces the glass working on seven vehicles using our content in iStream with carbon fibre original iStream technology.” ■ which offers even more performance for

36 IN 2015 SAINT-GOBAIN TURNED 350 YEARS JOIN SAINT-GOBAIN SEKURIT IN THE CELEBRATIONS

350 Years, 350 Reasons to Believe in the Future

Saint-Gobain Sekurit is a leading manufacturer in automotive glazing for more than 80 years, with a wordwide presence. Belonging to the Saint-Gobain Group, Saint-Gobain Sekurit has been able to develop a truly know-how in terms of production of mineral, organic and modular glazing for cars. Its large range of high added value products and services makes it able to adapt to the market trends and thus answer automakers’ expectations in a better way.

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SAINT-GOBAIN New Astra - to the stars?

38 The seventh-generation Opel/Vauxhall Astra was launched at the 2015 Frankfurt IAA; Simon Duval Smith reports on the vehicle development programme, visits the Ellesmere Port plant and talks to Mike Thomas, Assistant Plant Manager. New Astra - to the stars? fter more than six years of The previous model’s GM Delta II continuous production in platform has been replaced by the D2XX Germany, Poland, Russia and global base, developed to underpin the the UK, the last generation OEM’s C/D-segment cars. Opel Astra, known as the J, makes way The platform will be used by the Afor the K. This is possibly the most 2016 Chevrolet Malibu, 2016 Chevrolet important launch in the history of the Volt and China-spec Buick Excelle GT. European arm of General Motors. Developed mainly in Russelsheim, some Underlining the importance of this $220 million has been invested into segment are moves by Nissan, who developing the the new architecture responded to dealer and fl eet demands and it boasts a new rear torsion beam by entering the market with the Pulsar, suspension plus several other class- and now Audi, BMW and Mercedes- leading features. Benz are all vying for a place in the busy C-segment, vital for any OEM serious British built and tuned about Europe. Not only is the new Astra to be Of particular interest and built at GM’s Ellesmere Port facility considerable importance to suppliers but it’s driving characteristics are also is that the 7-8% content sourced from specifi cally designed for UK roads. UK suppliers for Astra 7 will rise to 28% The car is shorter by by 5cm, and on the new model. Vauxhall have said lighter - the body-in-white weighs they have been working with UK OEMs 280kg, down from the previous JLR and Toyota to raise parts volumes model’s 357kg. This means a total enough for suppliers to justify making vehicle weight down by 120kg in the new lines here in the UK, rather than heaviest car and 200kg in the lightest importing them, usefully shortening the version. supply chain. Talking to Horst Bormann, Director of

39 Vauxhall/Opel trimmed 200kg from the Astra - how? The new car went on a diet that has seen it come out at up to 200kg lighter than the outgoing model. Where do engineers fi nd such weight loss?

Body-in-white - down 77kg The use of high-, ultra-high and advanced strength steels and ostensibly smaller architecture (the car is actually larger inside than Astra 6) have saved a remarkable 77kg. The body-in-white is 20% lighter at 280kg, down from 357kg.

Running gear -50kg A new rear axle design has saved 4.5kg, using lighter, stronger steel with more lightening voids.

Wheels and tyres -11.5kg Smaller wheels and latest-generation tyres save 8-10.5kg, depending on specifi cation and the brakes benefi t from; ‘reversing the weight spiral’; the lighter car needs less stopping power.

Brake system -10kg Mass has been taken out of the whole platform, subframes and suspension. The use of high-strength steels in the smaller subframes has cut weight dramatically.

Electronics and infotainment -11kg OnStar, matrix-beam headlights and advanced driver assistance features mean fully-loaded cars are 120kg lighter, no mean feat, achieved by intelligent electronics packaging design, greater use of plastics and rationalised wiring harness design.

Engine block -10kg Vehicle Performance at the recent launch event, I remarked that his team An aluminium alloy block in the new 1.4-litre had saved the weight of a small to medium motorcycle: “Yes, we have ECOTEC Direct Injection Turbo petrol engine broken the spiral of more weight needing more power, needing heavier saves a lot over its cast iron predecessor and bigger brakes and suspension, needing more power and so on. For further helps to cut the weight spiral, the cleanest example Sachs, who supplied the dampers, were able to give us a lighter engines emitting only 88g/km of CO2. and more effi cient unit, meaning the unsprung weight is lower, as well as the the total body and vehicle mass.” Driveline -10kg The suspension is not revolutionary; MacPherson struts at the front The transmission, clutch and fl ywheel have and a torsion beam with a Watt’s linkage at the rear. The front end does been designed to save space and mass, also being not use the ‘HiPer Strut’ found on the previous generation’s VXR model, able to be lighter-duty due to the lighter overall but the fi ne tuning of the struts is evident in its on-road qualities. package. The Flexride adaptive damping system, seen on the Insignia, won’t be offered but the MacPherson struts feature an aluminium strut carrier, Seats -10kg a hollow steel anti-roll bar and a redesigned ‘mass-optimised’ lower Working with supplier Johnson Controls, the control arm. There is evidence of intelligent design and material choices GM interior design team have taken 10kg out of throughout the car; no fl at underfl oor tray is fi tted, for two reasons as the complete seats, by simplifying the seat frames Bormann told me: “We looked at this but it added cost and, almost more and using high-strength steels. Both front and importantly, weight that we had worked so hard to save in other places. rear use lighter polyurethane foams, and lighter The underbody is fl attened out and we placed the suspension in the interlinings too. most aerodynamic way so we think this is more than enough to match our targets of performance and economy.” Exhaust system -4.5kg Driving the new car bears out Bormann’s thinking; it not only feels Under 5kg may seem a small saving but the more lean and agile but, as any chassis engineer will tell you, cut mass Astra 6 system was already very light and cutting in the right places and you can make a car feel even more nimble and 25% was a considerable challenge for GM and better balanced than its weight would suggest. “We didn’t only focus supplier Walker Tenneco. on weight reduction but also weight distribution as it’s very important

40 to the local and national economies building over fi ve million vehicles since 1964. The factory is a major exporter, with 52% of production going to 25 European markets. At full production it is estimated the plant will build around 680 cars per day and 150,000 per year. It takes about 24 hours to build an Astra, from sheet steel to the fi nished article, although once the plant reaches its fi nal running speed this Mike Thomas’s background is expected to be down to just 22 hours. Mike Thomas studied Electrical to have a well-balanced front and rear,” UK fi rms, including those in Engineering at the University of New said Bormann. manufacturing, utilities, construction, Brunswick in Canada, and was recruited Fittingly, as the UK Astra is built at transportation and storage, benefi t from directly to General Motors, starting at GM’s Ellesmere Port Vauxhall plant approaching £70 million gross value the Oshawa Car Assembly plant near (others are built at sister plant Gliwice added and 800 jobs that result directly Toronto. He worked through many in Poland), the car’s suspension is tuned from Vauxhall’s investment in Ellesmere departments, from engineering to for British roads. The island’s mix of Port (source: Centre for Economics and production through pressing, bodyshop, well-surfaced highways (motorways) Business Research). paintshop and general assembly, in the and winding, sometimes potholed and days of the B-body Chevrolet Impala, pitted country roads need vehicles with Building the Astra in the UK for Caprice Classic and then into A-body more compliance and softer springing British roads cars like Lumina, Monte Carlo and Buick than some German marques bring to To get more of the inside story on Regal. the region. The team at Opel/Vauxhall the new car, I talk to Mike Thomas, Thomas then went to the US, working have done a fi ne job in fi nding the right Assistant Plant Manager at Ellesmere at GM Moraine Truck before becoming spring and damper rates, and it shows Port Vauxhall plant. Plant Manager at a hybrid component on the road. The main Astra production was won plant, part of a battery technology Vauxhall’s all-new Astra has secured by Ellesmere Port when many observers company that was bought by GM, as he 2,000 jobs at the Ellesmere Port thought it would remain in Germany. relates: “This was kind of a pet project of manufacturing plant in Cheshire after I ask Thomas what his take is on this: Gary Cowger (Group Vice President of workers won a long-term contract and a “The key to the success of Astra is that Global Manufacturing & Labor Relations £140 million investment from GM. everyone on the team has to be part of at GM); we eventually placed the battery Thanks to the outstanding attitude delivering this for the customer so one plant in Brownstown, Michigan for the and work ethic of the workforce, the thing we found out very early on in the Ampera, Volt and Cadillac ELR models.” plant beat world-class competition from programme was that it was important From there he went to Fairfax, Kansas across Europe to build the new car. for us, as a lead plant, to engage the City and on to Ellesmere Port, as his fi rst The facility is a signifi cant contributor whole network of Opel/Vauxhall and posting outside North America.

41 challenge: “I think we have excellent relationships [with the supply base] but as with all relationships one has to spend some time checking on input. We have our normal supplier quality checks that we routinely do, working as a partnership with our suppliers. I think that this partnership is very important; of General Motors,” he says, adding: we cannot produce a great car by “The manufacturing engineering (ME) our efforts alone, it really takes great organisation, product engineering (PE), suppliers too. Every so often we invite supplier quality engineering (SQE) and suppliers to our face-to-face meetings; our overall quality organisation met this gives them a better view of how in a video conference every Friday as a great we all want our products to be, to leadership team to make sure we were delight the customer.” on track and that all the deliverables On location, I ask Thomas what are were being met. Once every two months the longer supply chain distances and we would met face-to-face here at timings: “We do have some overseas Ellesmere Port. shipping for the Astra, but a lot of this “The important thing is that no single shipping is ours and this is key to our entity has to win anything, we all need inventory turns. We don’t have a lot of to win and delight the customer,” says space to warehouse-stock. Specifically, Thomas. we have some wiring harness parts The new car has been engineered coming from Europe which is a fair specifically to ride and handle well distance and this requires careful stock on the UK’s somewhat indifferent management,” he says. road surfaces; spring and damper With any vehicle launch, there are specifications are bespoke and I ask engineering changes and these often Thomas how this has impacted on require different supplied components sourcing and manufacturing the new and if parts are sitting on a ship coming car. He explains: “We brought engineers from say, China, this can present some over here (from Germany) to work in difficulties. Thomas is sanguine about the plant and set the car up so that it this: “Yes, we do engineering changes would perform well on British roads. that will really make a positive difference Many unique settings have gone into to the customer experience, if the the car, this is different to most standard change could be just a ‘nice to have’, development programmes; a lot of the we would control those engineering time cars are set up from afar and the changes to come at a material requested special appeal of the new Astra is that it date (MRD), when everyone in the chain is dynamically tuned for UK roads.” is making a change to a specification, in a managed way. But if it was something Supplier quality and location that would significantly improve the With a wide supplier base, spread customer experience then we would across Europe and the UK, but with take that on and do it in between those some components and systems coming MRDs, with the help of the MEs and from Asia, managing supplier quality the PEs. This is something one has to is a formidable task for Vauxhall/Opel. manage tightly as obviously there are a I ask Thomas how his team meet this lot of parts in a new car!”

42  ...we cannot produce a great car by our eff orts alone, it really takes great suppliers too. 

Mike Thomas, Assistant Plant Manager, Ellesmere Port Vauxhall plant.

Production equipment suppliers happen and we have used a lot of local Taking on new suppliers for vehicle manufacturers who have helped us out systems is one thing, but changing in tight times,” he says, adding: “When providers in manufacturing machinery we needed quick changes to dies, most can take a lot more thought and testing; of which are made in Europe anyway, we a problem with a production line can have used local companies, not so much cost $25,000 per minute. And whereas on major systems but on more minor jigs a missing component can often be fi xtures and so on.” worked around, a stalled line prevents The new Astra has a distinctive any production. I ask Thomas about his ‘tornado line’ on the bodysides and tooling suppliers, has the culture been doors, the convex styling feature that has to stick with established providers on only become possible due to advances in both automation, and jigs, fi xtures and stamping tooling and presses. Thomas smaller equipment or was he open to talks about working with suppliers on approaches from new vendors? “We making this possible: “We took our have relationships with established diemakers, established and new vendors, companies that build tooling for us and sent them to the die manufacturers but then there are always changes that in Europe to train them on not only

43 OVER 490 EXHIBITORS CONFIRMED ALREADY!

7-9 June 2016 The UK‘s leading exhibition for the automotive supply chain and aftermarket

During the launch we introduced a delivering in sequence as Thomas number of new powertrains which says: “We have Voith here, and you was a little bit of a risk, that we will see Voith sub-assemblies such as In association with  Johnson Controls managed carefully all the way through rear axles, suspension struts very close development,” he says. And on the to our lineside, very much integral to build the seats really GM mantra of ‘make where you sell’, our business. the Voith guys get the Thomas is enthusiastic but realistic broadcast sheet the same way that close to our lineside about having engine production in the our guys do and work hand in glove UK: “That would be really nice and the with us. For tyre and wheel we have a which makes a nice more that we can prove the viability of specific area which is outside but still that, the better our supply chain would on the site here, all run by them.” short supply chain. . be but I can’t really comment on that.” The use of companies like Voith was The new Astra has an interior with popular during the downturn as they many premium car features, and the can offer a flexible and cost-effective fit and finish is excellent. During my workforce and I ask Thomas why they Mike Thomas, time driving both diesel and petrol are still on the job now that fortunes Assistant Plant Manager, models over indifferent surfaces, I have improved? He is complimentary Ellesmere Port Vauxhall plant. found no squeaks or rattles. Thomas about their work and explains: “They is very proud of the build quality: are driving the quality that we expect, how it [a complex styling feature] is “Stefan (Stefan Fesser, Plant Director both inside the plant and for the supposed to be built-in but also how at Ellesmere Port) and I drove the new customer; I would say that Voith are you maintain that shape in stamping. cars, taken straight off the line, every doing a really good job for us.” Because, from the first few hundred night to make sure that we had no As an overall statement, Thomas cars to the millionth Astra that we noise.” praises all the supply base and says: sell, we want that ‘jewel’ effect [of the Part of this may be Vauxhall’s “With some of our new manufacturing styling] so it was important for our die decision to build the instrument panel processes, that have come from makers to learn how to maintain that (IP) on-site as Thomas says: “We build supplier innovation, have designed-in die integrity.” the IP very close to the line which saves quality, error-proofing, error detection, a lot of inventory and it is a really cost- and have moved it from inspecting it, Powertrain sourcing and interior effective solution; we did an analysis to building in quality. This is a huge quality on costs and it came out best to do it advance. Some of our suppliers are Talking to Thomas about powertrain ourselves.” leading the field in that way.” Register Today For The UK‘s sourcing and possible manufacturing Seats come in from Johnson Thomas speaks of partnership closer to Ellesmere Port (and sister Controls Interiors (JCI) and are built and how one OEM can learn a lot Leading Supply Chain Trade Show! Astra plant Gliwice in Poland), I ask nearby as Thomas says: “JCI build from suppliers who have developed him about the supply chain of Astra them really close to our lineside which components and systems for other Join thousands of like-minded industry peers from vehicle manufacturers and all tiers of the motors coming from mainland Europe makes a nice short supply chain.” carmakers: “The important thing with UK supply chain at Automechanika Birmingham, to see the latest products and services from and whether this will change. He suppliers is to have partnership; when over 500 international and domestic exhibitors. Moreover, take advantage of the free seminar Organised by is concerned about shipping heavy Hand in glove - sub-assembly you have this, they recognise and programme covering all the burning topics in the UK supply chain, such as the changing car components across Europe: “It’s partners develop what’s good for the customer, market, future drives, trade and exports, connectivity and advanced IT in vehicles. expensive to ship parts and engines so Voith carry out a lot of sub- and of course us as their internal trying to keep powertrain production assembly in the plant, from building customer, and that is a win-win closer to our assembly plants is very up engine and drivelines ready for situation. From the UK perspective, as Don’t miss the chance to be a part of this important. We have key powertrain marriage with the body on the line, we strengthen our supplier base here, landmark automotive event by registering today at plants in Europe that we centre on. to putting tyres on the wheels and UK automotive companies win.” ■ www.automechanika-birmingham.com @automechanikaBM

44

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The Titanic Hotel, Liverpool | 15-16 June 2016 www.automotiveleaderssummit.com On-glass electrical connectors is one of the last applications for lead solder in automobiles. One company is working hard to change this, and is also applying lightweight solutions to automotive glazing, reports Simon Duval Smith. Getting the lead - and the weight - out of automotive glass

onnectors need to be xed car glazing products for over 80 years, to windscreens and rear and and is a global Tier One supplier to all quarter windows to provide major OEMs. power for the defrosters and The regulatory constraints, as well as Csignals for audio. Other increasingly the constant performance improvements popular requirements include remote required from suppliers by the OEMs keyless entry, glass breakage sensors are a permanent challenge for glass and remote start. Increasing levels makers. This is because the passenger’s of on-board technology have led to a comfort and safety is a big concern, and dramatic increase in the need for on- optical clarity and thermal insulation (or glass electrical and signal connectors, at least reduced heat transfer through and it is estimated that the average glass) can save a lot of energy and thus car has four such connectors, the fuel and emissions. replacement of which could save 100 tons of lead globally. Lead free soldering on glass – The other area where automotive a worldwide challenge to the glass makers can make a considerable automotive industry contribution to saving weight and thus Lead is an environmental increasing fuel ef ciency and helping contaminant: toxic and ecotoxic even in to cut emissions is in producing low doses. lighter glazing for cars, from thinner It was classi ed as a possible windscreens and other glass panels to carcinogen in 1980, and classi ed in the use of advanced plastics to replace Group 2B by the IARC (International glass. Agency for Research on Cancer) in 2004 One company producing some of the as probably carcinogenic to humans and most advanced solutions in these areas animals. is Saint-Gobain Sekurit International These are issues of public health, (SGS), a 350-year-old company that is occupational health, environmental, one of the top 100 industrial groups in climate and sustainability of the the world, providing  at glass, high- economy and development. performance materials, construction For instance, international norms like products, building distribution and ISO/TC 183 - Minerals and concentrates packaging. It has been manufacturing of copper, lead, zinc and nickel, and The

46 European RoHS Directive (2002/95/EC) aims to limit the use of lead. The European Commission is constantly working on efforts to make vehicle dismantling and recycling more environmentally friendly, and has in this context a clear target that future vehicles should not contain lead. This affects automotive glazing, because today it is common practice to use lead-containing solders when electrical connectors are soldered to an automotive glazing such as for antenna or heating function. Consequently, the European Commission has formulated legislation that bans solders containing lead from automotive glazing. All new car models that are homologated from January 1st 2016 will have to use exclusively lead-free technologies for soldering connectors on glass. solution is based directly on the VDA Lead-free SGS connector technology The legislation does not only apply to speci cation. allows for thermal expansion, using a cars manufactured in Europe, but also new solder alloy. to cars that are manufactured elsewhere Heat and light testing and then exported to Europe, and hence The VDA speci cation particularly it is a considerable challenge to the addresses the demanding environmental worldwide automotive industry. conditions occurring, for example, in the The EU requirement is a very big hot southern Europe areas in summer challenge, since leaded solutions have conditions, taking also into account the been used for several decades, and car design, screen inclination, thickness only a limited amount of time has been and colour of the glass that also affect available to develop satisfactory lead- the heat load. The temperature load free solutions. SGS has, however, taken measured on backlights in these up the challenge and has been able to conditions can reach 130°C. This is develop very rapidly a variety of lead-free the reason why the requested tests connectors that will provide answers to include these high temperatures. These the requirements of car manufacturers. conditions are not always considered Some OEMs have already exhaustively in other speci cations and the SGS tested the SGS solution, and the rst solution passes all these tests, when examples of these new products were others fail below 100°C. The patented brought to the market in 2013. SGS lead-free solution goes beyond There have been some lead-free legal requirements, since it is already solutions in the market for a couple available not only for soldering on glass, of years, from Tier Two suppliers but but also for soldering in laminated these are quite costly and have not fully glazing, a requirement that is currently ful lled speci cations such as those still under discussion at Europe-wide of the VDA (the German automotive level. industry association). These solutions SGS has developed a portfolio are indium-based, so are quite expensive of different types of connectors to and also they don’t ful ll the necessary make sure that there is a solution performance requirements when it for all carmakers speci cations. The comes to high temperature testing. design of this portfolio of connectors The lead free technology developed is very  exible, allowing for extensive by SGS ful ls all OEM speci cations, customisation, to give the carmaker those of the VDA, Jama, USCAR, and the possibility to choose the most others globally. appropriate geometry that ts Because SGS has a determination requirements for every application in to provide the best product quality or on laminated glass. An additional and robustness, it’s lead free soldering plus of the company’s offering is that

47 Some examples of connectors developed for lead free soldering.

it requires less surface area than other such as the BMW i3 and i8; these are solutions and is thus less expensive tted with 4mm windscreens. This trend Types of than generally proposed indium-based is spreading to mainstream cars, with solutions. more OEMs asking suppliers like SGS automotive glass SGS’s lead free soldering solution for quotations for 4mm glass for their is unique because, thanks to the compact cars. Tempered glass: company’s R&D knowledge and expertise The Citroën C4 Picasso, which has a Developed by SGS and made on glass and components, it is the rst very large windscreen, one of the biggest mandatory for automobiles in glassmaker who is able to propose such in the market, has a 4mm windscreen. the 1920s. This safety glass is reinforced by tempering (sudden a solution. It is the only one to answer The required strength on such a large cooling of the glass as it comes to the most critical high temperature area of glass is achieved by the use of out of the forming kiln) and will speci cations, the cycle times and an asymmetric glass combination; the shatter into tiny fragments with pulling force (60 cycles from -40° to 105° outer layer of glass is thicker than the rounded edges. Celsius and up to 100N for shear and inner. This sandwich composition leads tensile pull-off force). This ensures the to a better stone impact resistance. Laminated glass: level of robustness required to avoid This allows the impact energy to be Developed by SGS, is mandatory the separation of the components, absorbed better than in a symmetrical for windshields since 1980. malfunction of the heating net or composition. A safer glass that offers more breakage. As a contributor to the 2L/100 options for integrating functions, The majority of European, American programme (vehicles consuming 2 litres it consists of two glass layers with and Japanese OEMs already choose of fuel per 100 kilometres travelled), a polyvinyl butyral (PVB) inner this solution for their future cars in SGS is working on the three main layer sandwiched between them development; some of these have areas of automotive glazing (tempered, prior to assembly, thus ensuring already been launched. laminated, and polymer). Of these, the stability and adhesion of the two will be the subject of a major R&D glass in the event of impact or project with the objective of reducing breakage. Glass weight reduction and aero- dynamics the weight by as much as 50% compared The Lancia Stratos is widely thought to the current standards. This weight Organic glass: of as being the rst road car to have a reduction is intended to make a For 20 years SGS has been 4mm windscreen and while this thinner signi cant contribution to the target acquiring a unique set of skills in glass is a recent industrial development, set by the French authorities during the the designing and manufacturing there are several cars in the market with October 19, 2012 Strategic Committee of of organic polymer automotive the automotive branch meeting. glazing. It permits the integration very light windscreen glass. of elements or associated The rst OEMs to request this for The objective is to develop a vehicle that functions with shapes that cannot their road cars (after Lancia for the only consumes 2 litres/100km in order be achieved with mineral glass. Stratos) were Ferrari, Alfa Romeo, PSA to reduce CO2 emissions to the level and Porsche. Another growing area for established by the European authorities lightweight glass is electric vehicles of 95g/km, by the year 2020.

48 The Lancia Stratos was the first production car with a 4mm windscreen; automotive glass makers are now trialling 3mm screens to save weight.

SGS integrates eco-design in its R&D The solutions that will be developed projects. The life cycle analysis tool address three distinct zones of the vehicle: used throughout the Super Alma project Front: use of a laminated windshield ensures the environmental integrity that is substantially thinner (going from of the proposed solutions. This will 4.5mm to 3mm) therefore respond to the requirements Side windows: use of thinner laminated of the 2L/100 project by proposing glazing instead of tempered glass raw material-production method Rear: the objective is to replace the combinations with a low environmental tempered glazing with a polymer rear impact. backlight The Super Alma project in partnership As with mineral glazing, organic glazing with Renault is part of the 2L/100 contributes to lowering pollutant emissions programme and aims to push the weight thanks to the weight reduction, and it reduction of automotive glazing to the allows complex and aerodynamic shapes. limit while still ensuring the acoustic and And of course aerodynamic glazing mechanical performances demanded by has a considerable in uence on vehicle users. performance. ˜

Standard Tomorrow Future

Thickness Mineral Glazing Mineral Glazing Polymer Glazing Windscreen 4.5mm and 4mm 3mm 5mm

Weight average 10.5kg 9.3kg * vs standard 16kg -5.5kg -6.7kg*

Mineral Glazing Sidelights & Mineral Glazing Polymer Glazing (laminated) backlights thickness 3.15mm and 2.85mm 3mm 3mm

Weight average 8.3kg 4.7kg * vs standard 16kg -7.7kg* -11.3kg*

Total glazing 18.8kg 14kg weight/vehicle 32kg -13.2kg -18kg*

49 The connected car has once again stolen the limelight at this year’s Consumer Electronics Show in Las Vegas, featuring a range of intelligent, autonomous, electric and efficient vehicles. Alex Kreetzer reports. The connected car takes over CES 2016

ore than 100 car technology of global automakers. The new era is companies and nine major approaching, though how long will we manufacturers presented their have to wait? futuristic technology to the Mworld at CES this year, including BMW’s Audi developing a new world of iVision Future Interaction Concept Car, user-experience Ford’s low-cost miniature autonomous The brand with four rings is expanding radar sensor and the introduction of its operating and display concept, the California-based Faraday Future’s continuing to improve its user-friendly FFZero1, a new manufacturer in the operations within the Audi range through industry which is set to challenge the likes implementing its virtual cockpit into the of Tesla and Audi for the EV crown. dashboard. Ricky Hudi, Executive Vice On top of this, Volkswagen, still President of Electronic Development at recovering from the diesel scandal, Audi, said at the CES press conference: presented its 230-mile zero emissions “The interior of the future will radically BUDD-e Van, its new generation camper alter the way our customers operate and van dubbed as the ‘gateway to the experience things in the vehicle. We are future.’ CES 2016 also highlighted that developing our successful Audi virtual we are almost in touching distance of cockpit into the Audi virtual dashboard the eagerly-awaited autonomous era: and creating an entirely new world of Mercedes’ announcement of its self- experience for our customers. In the driving licence from Nevada, (US) with future, the entire system will get to its E-Class, a world first for a standard know the customer and their habits and production vehicle. This year’s CES, took preferences, then proactively support place January 6-9, has definitely exposed them.” the boundless potential for the new age Audi exhibited an interior model at the vehicle. CES, which demonstrated a HMI concept As expected, this year saw a repeat featuring a large AMOLED (active-matrix of CES 2015’s strong autonomous organic light-emitting diode) display with presence, however new trends such as integrated haptic feedback. the personalisation of driver experience Audi’s MMI control with touch through connectivity are now starting to response also implements recognisable stand out, following the mass-adoption touch gestures and adapts them into of these technologies by a large group the special operating environment of

50 the vehicle, allowing a range of devices year we demonstrated our success in Bentley Monster by Mulliner created to connect seamlessly. “With our new development: The technical concept of for CES. generation of Audi MMI in the Audi piloted driving has been validated and we TT and Audi Q7 we are the first in the were already using zFAS, the central driver world to offer natural language control assistance control unit on the road,” for the complete system. The system stated Hudi. “To extend our lead in piloted understands expressions as used in driving, all test results from our latest everyday language. For instance, simple activities – such as the piloted test drive commands such as ‘Where can I get gas?’ from Silicon Valley to Las Vegas – are or ‘Where is the nearest shopping mall?’” important milestones on our way to series added Hudi. production technology.” Audi’s new Modular Infotainment Data processing of Audi’s driverless Platform, MIB2+, which boasts further- technology takes place in the cloud, enhanced computing power enables something many automakers have turned the control of seven high-resolution to, using artificial intelligence to send displays in the cabin, up-to-date with the information back to the vehicle in order to latest wireless communication standard, constantly improve intelligence. LTE advanced. “Thanks to our close collaboration with NVIDIA, Audi has the Hyundai’s augmented ability to integrate these technologies reality projects the future of quickly into the vehicle and run the transportation technology same innovation cycle as the consumer Head-up displays (HUDs) have been electronics industry,” said Hudi. “Let around for some time now, however, me thank Jen-Hsun Huang, co-founder they have previously only offered basic and CEO of NVIDIA, for this brilliant projections on the windshield such as partnership.” speedometers or clocks. Hyundai has It is evident that the range of developed a futuristic version that will connected services under Audi are rapidly be found inside its Genesis models, developing, with autonomous driving providing a range of connected features at the forefront of the brand’s future, such as blind spot detection, forward following its achievement of becoming collision and lane departure warning. the first car maker in the world to attain This allows drivers to maintain their vision an autonomous testing licence. “Last on the road whilst using these features,

51 displayed at a perceived virtual distance One new driver aid that will split opinions of six feet ahead of the driver. worldwide is Hyundai’s ‘Narrow Path At CES, the automaker showcased Assist,’ in which the vehicle becomes its production-ready HUD concept, autonomous when driven through a which presented animations on the road narrow street, overcoming tight spaces to indicate road conditions, collision where the driver may damage the car.

Hyundai’s Highway Driving warnings and highlighted street signs. Many will argue that this seems pointless, Assistant System. Hyundai may have not wowed CES however, much like the introduction of with an overly-futuristic autonomous parking assists, we have seen that what vehicle, however, it provided a just as was originally perceived as a ‘pointless exciting technology that focuses on aid’ has thrived in European markets. semi-autonomous and driver-assist technologies that are just around the BMW Iconic Lights: illuminating corner. None of these features seem driving pleasure far-fetched, something rather commonly At the Las Vegas event, BMW found at the event, especially when the presented its latest Laserlight function for Genesis sedan’s HUD already provides future vehicles, that offers an impressively speed and navigation prompts, with long beam range of up to 600 metres in forward-collision detection and lane- combination with the BMW Selective departure systems. Beam function. The Laserlight is now In addition, Hyundai showcased six integrated with the vehicle’s assistance new advanced driver assistant systems, systems and sensors, which allows that are set for production “in the near intelligent and safe lighting functions. future,” according to the automaker. For example, it can work alongside the There is also a wearable band that links vehicle’s navigation system, illuminating to the HUD, which vibrates to indicate corners before the driver reaches the turn, lane-departure and collision warnings and provides early warnings of people or and even monitors the driver’s heart rate, animals at night from a distance of up to contacting emergency services if there is 100 metres. a significant shift in the rate. Hyundai has Inside the laser headlights, the also stated that the company is working monochromatic blue laser light is on an ‘Emergency Stop’ feature by which, converted into a harmless white light, in the event of an incapacitated driver, the by directing the rays from the diodes vehicle will steer itself towards the side onto a phosphor plate inside the light, of the road safely and activate its hazard converting the beam into a white light lights. that is more pleasant to the eye. Although Other driving aids ready for the this new technology consumes 30% near future include remote automatic less energy, the beam is 10 times more parking as well as vehicle-to-pedestrian intense than halogen, xenon or LED light and vehicle-to-vehicle communication, sources. BMW’s Laserlight has a beam among further new driving aids that range of up to 600 metres, boasting more mirror offerings from VW and Mercedes. than twice the range of a conventional

52 headlight, ultimately increasing safety their daily commute,” Fields added. in the dark. The camera-based Selective “The experiments we’re undertaking Beam system, controlled by dynamic today will lead to an all-new model of actuators, also prevents oncoming transportation and mobility within the vehicles being blinded by the BMW’s next 10 years and beyond.” lights, allowing the high beams to be left 14 of the 25 experiments are Ford-led on at all times. research projects, whilst 11 are part of the The German automaker also automaker’s Mobility Challenged Series. showcased its organic light-emitting The challenges include finding solutions diodes (OLED) within its rear light to identify parking spaces and improved clusters, an efficient and sustainable navigation in built-up cities, taking a new light source that has a lower power path to its rival automakers. consumption than others and therefore CES 2016 has fundamentally emits lower CO2 emissions. Unlike illustrated that manufacturers and ordinary LEDs, which are a ‘point’ light developers are not only trying to source, OLEDs produce light evenly over make the world ‘greener’ through a wide surface, which allows more vision autonomy or safer roads, but are at night. The individual modules found giving consumers the freedom to in the OLEDs now allows new innovative modify their interior experience, from lighting possibilities, using different customisable dashboards, applications effects in the clusters, something which and connectivity in and out of the we are now starting to see on our roads vehicle. We all will welcome autonomous today. vehicles with open arms, however CES is yet another realisation that we will Ford Smart Mobility: taking be chauffeuring ourselves around for a the company to the next level while yet. Now CES 2016 has come to an in connectivity, mobility and end, the industry has moved on to the autonomous vehicles Detroit Auto Show, a place for an array of Ford focused on it’s Smart Mobility performance-focused vehicles, though we technology this year, with Ford President must not forget the now-unquestionable and CEO Mark Fields highlighting the fact importance of the tech-driven exhibition that the automaker is using innovation that will fuel the future of transportation not only to create new vehicles, and connectivity. ■ but to solve today’s growing global transportation challenges. Ford has attempted to use its Smart Mobility plan to achieve further development in connectivity, mobility and autonomous vehicles, announcing 25 mobility experiments around the world this year to test ‘breakthrough transportation ideas.’ Fields said: “Even as we showcase connected cars and share our plans for autonomous vehicles, we are here at CES with a higher purpose. We are driving innovation in every part of our business to be both a product and mobility company – and, ultimately, to change the way the world moves just as our founder Henry Ford did 111 years ago.” These mobility experiments will Ford focused on it’s Smart Mobility consist of eight in North America, nine technology this year, with Ford President and CEO Mark Fields in Europe and Africa, seven in Asia and highlighting the fact that the one in South America. Each of these automaker is using innovation not experiments is designed to anticipate only to create new vehicles, but what customers will want in the future of to solve today’s growing global the transportation ecosystem. transportation challenges. “We see a world where vehicles talk to one another, drivers and vehicles communicate with the city infrastructure to relieve congestion and people routinely share vehicles or multiple forms of transportation for

53 The automotive industry is the fastest growing sector of the Hungarian economy and has grown in size and expertise in the last few years as Simon Duval Smith finds out. Hungary’s automotive sector hots up

he automotive industry has a History and segments significant role in the Hungarian After the dissolution of the Eastern economy, accounting for some 10% of Bloc, three global car manufacturers the country’s GDP, and it is estimated established themselves in the country. Tto employ more than 130,000 people. With Suzuki, Opel, Audi and their OEMs have taken mainly greenfield associated supplier base, the automotive sites in clusters, such as Audi in Gy ˝or, industry became a strong element of Mercedes-Benz in Kecskemét, Opel in overall Hungarian manufacturing. Szentgotthárd and Magyar Suzuki in It was a government prerequisite of Esztergom. It is estimated that these Opel coming to the country that it would OEMs have created 20,000 new jobs and manufacture complete cars but the they cooperate with several Hungarian German OEM switched to powertrain- universities and vocational schools. only production after a few years. Following the OEMs, a significant Indeed, in overall component number of suppliers have established production, Hungary is focused mainly on production sites, now numbering more building engines. Both GM and Audi have than 700. This network follows the engine production centres and Suzuki traditional global structure, running has announced plans to make the region from Tier One to Tier X. Foreign-owned a powertrain centre for its European companies occupy the Tier One, while the activities. In the past, the country also had lower tiers are mainly Hungarian-owned strong commercial vehicle parts activity, companies. for the domestic heavy vehicle industry As can be seen from the tables in this and for Russian truck maker AvtoVAZ. article, the top level global names such as Bosch, Bridgestone, Continental, Delphi, Local and regional markets Denso, Hankook Tires, Lear, LuK and As a local market, Hungary is typical Michelin have production sites there and of smaller ex-Comecon countries. Its car many have R&D facilities, including Bosch buying habits are still rooted in times of who have more than 1,000 engineers at severe austerity and limited choice and their technical centres. the average age of cars on the market Projections estimate that by 2019, is 11 years. Of this market, Suzuki has the country will make 697,000 vehicles typically held more than 25%, rising to annually, of which 561,000 will be in 28% in 2009. Its range of lower price premium segments. cars suits the buyers locally and it has

54 benefi ted from a joint venture (JV) with from which the region is still recovering. The two millionth Hungarian-made General Motors, producing bodies for Until 2006, Hungary was winning up Suzuki (a Swift saloon) rolled off the the Opel/Vauxhall Agila, basically the to one-third of the entire FDI fl owing production line in Esztergom. same vehicle as its own Wagon R mini- into Central and East European MPV. It also had a profi table JV with Fiat, countries (CEE). The government made producing the Fiat Sedici SUV on the considerable efforts to enhance Hungary’s same platform and body architecture as attractiveness for foreign investment from its own Suzuki SX4. 2010 onwards, by shifting the tax burden Strong drivers for automotive from corporate taxes to VATs. investment in the region include a distinct Audi has suffered more than the other labour cost advantage, a comprehensive OEMs based in Hungary, being an almost portfolio of suppliers and a convenient total net exporter of premium cars and logistical infrastructure.

OEMs Net sales revenue MHUF Number of employees In the downturn (forint millions) Hungary began economic reforms in reaction to the downturn at a relatively Audi Motor Hungária 1,612480 8177 early stage and thereupon enjoyed a fl ow of foreign direct investments (FDIs). Magyar Suzuki 409,150 2795 Nevertheless, Hungary faced economic Mercedes Benz 267,919 2,542 confl icts even before the current Opel (powertrain) 25,579 656 recession. The government managed to provide stabilisation by requesting TIER suppliers fi nancial support from the International Monetary Fund (IMF) at the end of 2008. Bosch Group 580,681 8,609 However, the global downturn caused Continental Automotive 202,494 2,798 a high level of external debt which Michelin 185,670 1,645 joined the overall economic vulnerability Hankook Tire 162,449 2,169 experienced by most of the developed Lear Corporation 156,260 3,494 world. This forced the government to carry LuK 141,370 1,757 out cost-cutting measures during 2009. Delphi 125,484 1,403 This had a negative effect on the already Denso 118,428 3,220 slowing domestic demand, something (1 HUF = $0.00341615) Source: Figyelő TOP 200

55 its legal system follows Western standards and this does provide good security for investors. It is among the most developed of the former Eastern Bloc countries and its economy is more mature and has become more settled as the emerging-market phase of global market recovery continues. On labour cost, compared to Poland and the Czech Republic, the country still offers relatively low wages at all labour and managerial levels. This is particularly true for operator-level employees. There are other neighbouring countries that can offer lower labour rates but according to Eurostat, labour productivity is higher in Hungary. Certainly, the level of technical education is higher than many of its competitor countries, indeed this was one of the deciding factors quoted by Mercedes-Benz when deciding to site its plant in the country.

The government agency view I spoke to the Hungarian Investment Promotion Agency (HIPA) about what it could offer incoming investors, both OEMs and suppliers. Being a government department, it chose not to quote a spokesperson so the replies are attributed to the agency generally. It says: “The HIPA is a professional, customer- engines to the crisis-affected regions focused organisation for the promotion of Europe. In contrast, as a beneficiary of investments in Hungary, which was of scrappage programmes in much of established by the Hungarian government Western Europe, Suzuki rode out the in order to provide assistance to foreign crisis much better, being a manufacturer companies that intend to invest in with high output volumes of low cost Hungary through this organisation, all vehicles but even it faced difficulties and free of charge. To this end, we operate suffered from decreasing outputs. a one-stop-shop system, within which we contact and maintain relations with Risks and rewards potential foreign investors, facilitating As with the other ‘new’ EU-member the preparation and implementation states, Hungary will likely continue of their strategic investment decisions. to maintain its local currency for the In addition, we also offer them support foreseeable future, before introducing the following their decision-making and even euro and participating in the European encourage their possible reinvestments. Monetary Union. At the beginning “We would specifically point out that of the financial crisis, the Hungarian we provide company- and sector-specific currency, the forint, depreciated heavily, consulting, organise professional events but it has been steadily gaining value and site visits, and offer investment in recent years. The devaluation of locations. In addition, we also act as the forint against the euro had made an intermediary between international Hungary relatively cheap for euro-based companies and Hungarian small and companies but this competitive edge medium-sized enterprises, thereby also against countries like Slovakia, where supporting supplier relations. In the spirit the car industry is also strong, is waning. of the above, we organise training for Evidence of this is Jaguar Land Rover’s suppliers and maintain active relations recent decision to site its CEE production with associations in the sector, especially base in Slovakia, joining Volkswagen, PSA in the areas of the automotive industry and Kia. and electronics. One of our fundamental The Hungarian economy is quite goals is to ensure that Hungarian SMEs mature compared to other CEE countries; obtain the greatest possible role in the

56 supply chains of international companies established in Hungary.”

Regional attractions As we have seen, several carmakers and many major suppliers have moved into Hungary, I ask what makes the country so attractive for carmakers and suppliers. HIPA says: “We think that the fi gures speak for themselves. Currently, one of the leading sectors in Hungary is the vehicle industry, which accounts for 20% of total Hungarian exports. With more than 130,000 employees, over 700 companies generated revenues of more than €21 billion ($23 billion) in 2014; approximately 93% of these products are exported. In 2014 around 2.4 million engines and over 400,000 passenger cars were made in Hungary. The number of Tier One and Tier Two level parts manufacturers keeps increasing: since the beginning of the 1990s, 15 out of a large number of vehicle manufacturers (OEMs), such All competencies as Suzuki, Audi, General Motors and Daimler, as well as the world’s top 20 Tier One suppliers have established manufacturing capacities in Hungary. Due to its cost in one company effi ciency, the Hungarian automotive industry is one of the most competitive in Europe, and the technical creativity of Hungarian engineers has gained recognition in all markets  Full Part Design (2D, 3D and FEM) of the world. “Returning to the question of what can be so attractive  Sand or Die Casting for Prototype in our country for automotive companies; we think that it is due to the presence of a highly-qualifi ed and skilled Phase workforce in Hungary, the standard of secondary and specialised higher vocational training institutions, the  High Class Testing Laboratory for logistics conditions in Hungary, competitive wages, a Static and Accelerated Life Tests continuously-developed supply chain comprising more than 700 companies and the professional attitude of the  Tool Shop for Die Casting Molds municipalities involved.” and Equipment Education and training Much has been said, by Hungarian country promoters  Aluminium High Pressure Die and by incoming OEMs and suppliers, about the level of Casting, Machining and Assembly technically-educated and trained staff available to the in Series Production automotive industry. I ask how HIPA helps with training of staff for new ventures in Hungary: “HIPA and the Hungarian government also consider the continuous provision of high-standard specialist staff important, since we know that one of the great advantages of our country lies in its highly qualifi ed and skilled workforce. For this very reason, the government pays special attention to also strengthening dual vocational training, which provides practical knowledge. Its main point is that the state provides vocational schools and theoretical training, while companies provide practical training in such a way that the company participating in dual training teaches students in a predetermined way, closely matching the curriculum of the higher education institution during the training. Students graduating from dual training are able to enter the world of work without several years of in-service training and further fi nancial expenditure, thus it may be a quick and effi cient means for handling the shortage of quality manpower. “In order to strengthen this effort and system, about 7,000 training workshops can be renewed and HUF 50 billion can be allocated to supporting dual training from EU funds between 2014 and 2020. In addition, it also provides increased support for the training of engineers in Hungary. The number of students participating in extra-curricular forms of learning, at vocational schools and at training schools exceeds 60,000.” www.femalk.hu Aluminium HPDC Foundry stories of automotive suppliers in Hungary: “Fortunately, there are a very high number of success stories behind HIPA. If we have to highlight one, we would mention Hajdu Autotechnika Ipari Zrt. It is a company that manufactures parts primarily for exhaust systems and seats and bodywork panels, which has relations with almost all large car factories. Its parts are installed, among others, in the products of GM, Audi, Porsche, Suzuki, Volvo, Jaguar, Mercedes- Benz and Rolls-Royce. What makes us consider the company as a success story is that due to the assistance of HIPA, they were granted a rst round supplier status at Remy, Daimler and, last August, also at Volkswagen. As antecedents, we would say that HIPA announced the training of suppliers, where the supplier developers of Audi and Volkswagen gave lectures and provided training. Hajdu Autotechnika Ipari Zrt. was invited to the event with several other companies, and thus they had the opportunity to introduce themselves to Volkswagen. Shortly Success stories afterwards, a supply contract could be Every country makes great efforts signed. to attract FDI and I ask HIPA if the “In addition to the above-mentioned government, through the agency, is Hajdu Autotechnika, another great really doing enough to promote foreign example is Csaba Metal. Founded in 1993, direct investment and how it could be the company now has 1,200 employees as improved. The agency is con dent. “In a result of the continuous development the past four years, our country has made of their foundry. Their sales revenue was a tremendous contribution to ensure more than €33 million last year, and that Hungary is the most competitive they expect a sales revenue of €41 to investment and project development €44 million this year. The specialists of environment in Europe. Among other the company have actively participated things, the government transformed in the supplier training and customer the tax system, created one of the most relations programmes organised by  exible labour codes in the continent, HIPA in previous years, and the resulting reduced the administrative burden and cooperation is a good example of how an reorganised higher education. As a result innovative Hungarian company is able to of all this, Hungary became a major raise its production activity to a higher production centre after 2010. level. “It is important to point out that in “We would emphasise, however, that addition to the previously mentioned the recommendation of HIPA does not services of HIPA, it also provides depend on luck; to obtain it, companies information tailored to companies must present appropriate results and about domestic programmes and attitude. By supporting automotive programmes co- nanced by the European suppliers, the agency assumes guarantee Union. Furthermore, it coordinates a and responsibility for them: only Bosch have more than 1,000 engineers at their research and so-called EKD programme, the system companies that do not abuse that development centres in Hungary. of investments supported by speci c trust may be registered in the supplier government decisions.” database.” I ask for some examples of success

58 Winning global sourcing from sector has recovered and what are Hungary the signs for the future. HIPA spoke of I ask HIPA if its clients are reporting restructuring: “In the past years, the area success in winning global supply of road vehicle manufacturing has been contracts from their OEM customers restructured in Europe. One of the big who make cars and trucks in Hungary winners in this was Hungary. As a result – supplying to the customer’s other of the migration of production capacities regions because of the ne work they from west to east, Hungary became one have done in Hungary for a carmaker or of the European centres of the sector Tier One supplier. It says: “Due to the after the 2008-2009 economic crisis. quality products made by Hungarian The government intended a prominent suppliers and innovative cooperation with role for the vehicle industry throughout, domestic higher education institutions, a treating the promotion of investments number of Hungarian small and medium- in the automobile industry and the sized enterprises crossed the borders development of the supply chain as Full production of the new small of the country and concluded supply important areas. petrol engine (1.0 ECOTEC Direct contracts either with other units of car “In order to increase the long-term Injection Turbo) started at the Opel manufacturers also operating in our development and competitiveness of engine plant in Szentgotthárd, country or with other car manufacturers. the sector, the government has so far Western Hungary in 2014. It is a special pleasure if the training signed 23 strategic agreements, also provided by HIPA also plays a role in this, including supplier clauses, with the sector since we launch these programmes for actors, and has established high priority this very reason.” automotive centres in three regions of tax breaks, as well as, for the production To be more speci c, I ask what Hungary.” sector, the possible use of EU aid and help and advice would HIPA offer a Looking to the future, as the market other tender support for investors. new supplier thinking of coming in to opportunities for the sector look more “Due to the well-structured road Hungary, in terms of introducing them favourable, and as global demand for network of the country, any point to possible customers. HIPA spoke of cars increases there is no doubt that in Europe can be quickly and easily a full-service policy: “As we mentioned investment and effort is required to reached. Moreover, contrary to the most at the beginning of the interview, HIPA keep up with tremendous technological important Southeast Asian production operates a one-stop-shop system. This advances. I ask HIPA what the government centres, high-standard specialists is especially customer-friendly, since is doing to support these investments. available in high numbers give a major it not only simpli es orientation for The agency is enthusiastic and says: “The competitive advantage to Hungary. The foreign customers, but also speeds up the government intends to spend nearly €2.2 already mentioned dual training system decision-making processes of potential billion on the support of research and established after the German model is investors. Using a rated database development and innovation between given an important role in continuously operated by our agency, we can quickly 2014 and 2020.” providing such specialists. It is another connect international companies with key argument for investors that 15 out of domestic companies that have pro les Global location competition the world’s 20 largest Tier One suppliers corresponding to their requirements. I put it to HIPA that it must do operate in Hungary. Therefore, through this, at the same comparisons of the attractiveness of “Last but not least, HIPA currently time, we help the automotive companies Hungary for an automaker/suppliers handles 165 active investment projects, establishing themselves in Hungary, as against India, China, as well as other which are rated as projects before well as domestic SMEs that would like European/near East countries and I decision-making. This is more than to enter or move up in the value chain. ask how it ‘sells’ Hungary when looking at any time in previous years. We Furthermore, we provide information at the low wages and costs in other would like to emphasise again that the on the Hungarian investment, legal, tax countries. HIPA talks of what we might Hungarian investment environment offers and nancial environment, and on the call ‘reshoring’: “Due to the global excellent opportunities, and not only for investment promotion programmes of the acceleration of relocation processes, automotive investments. And we can government.” more and more people realise that it promise that HIPA will make every effort is worth bringing back manufacturing to ensure that investors are as satis ed as Recovery and restructuring to Europe. In addition to its strategic possible.” ■ The Hungarian economy suffered location within Europe, our country offers badly in the downturn of 2008/9, and I excellent logistics conditions, favourable wondered how well the auto supplier infrastructure, investment bene ts and

1 59 As lightweighting becomes increasingly important to the auto industry Simon Duval Smith looks at Gurit, a specialist supplier of materials, composite components and engineering services. Composing lightweight solutions urit has established itself as a in metal, and how much the processes developer and innovator in the can be automated. He says some composites industry and has complex auto parts are laid up by hand, positioned itself as a leading as opposed to using a sheet-moulded global supplier of composite materials, technology: “For one German sportscar Gengineering services, tooling equipment maker, we made a component in one and select parts and systems. The piece; this would have been impossible company has over 30 years experience in in metal and this is one reason why the practical application of composites carmakers turn to us. We learned a across various market sectors and lot during this manufacturing process projects, from small parts to large-scale because it was a complex shape and in structures. terms of a material application it was It supplies composite components particularly interesting.” to the automotive and bus and truck sectors and supplies composite A broad spectrum of capabilities materials to the wind energy, marine What makes Gurit special is that it and also to the general industrial has a lot of capabilities in one company, market. offering structural engineering as well The company not only makes as class ‘A’ surface parts, helping its carbon fi bre, glass fi bre and other customers defi ne what is needed for a reinforced prepreg composites but also structure and providing the required manufactures Balsafl ex, an end-grain design and engineering, as Hadorn balsa wood core for the wind energy and says: “We can help the customer with marine market, used in the manufacture selecting the appropriate materials of wind turbine blades and boat and then, for the automotive industry hulls. specifi cally, we also have the capability To get a better idea of what to manufacture parts. For this we can do Gurit offers the automotive manual lay-up, for low-volume, high- industry in terms of specifi cation super-premium cars where materials, processes and the cost is not the only criteria. In these component manufacturing, high performance applications, weight I talked to CEO Rudolf saving is important but contributing to Hadorn and started by improved weight distribution and visual asking him for some carbon-look is even more important. examples of solutions “On the other hand we have the semi- enabled by composite automated production process, where components for the press moulding technology comes in, automotive sector that where we can go to higher volumes, would have been impossible but not yet mass production of course.

60 Volumes for this would typically be less component business is also progressing, than 5000 per year. and we do not have space to set up a “A lot of our experience in designing semi-automated production line on the and making load-bearing structures Isle of Wight in the UK, we decided to set comes originally from the marine up a production line in Székesfehérvár industry and also from architectural and transfer some of the projects that applications. Our teams know exactly we have in hand. This will happen in how our various materials will react to the fi rst quarter of 2016 with the fi rst loads and impacts and that gives us a programme on the new equipment special expertise that we can share with being installed. One of the big benefi ts our customers.” of locating in Hungary is that there is a I asked Hadorn about the ‘break big automotive cluster there, as there point’ between Gurit making a part are many Tier One suppliers and good for a customer and the manufacturing technical universities and colleges with being sent elsewhere for more volume good graduates coming out of them. applications. He says an OEM already We are still making parts in the UK has a clear idea about who will make for of course but a major factor in choosing them: “If they already have a Tier One Hungary was to have better proximity who is capable of producing a composite to our customers in Central Europe, material structure or part, they might without having to ship from the UK.” go with that established supplier and that Tier One would approach us to New applications and materials supply the material. We would see Given the speed (and thus economy) through the qualifi cation of the material of development and proving that with the OEM, sending our material composites offer compared to designing to the OEM, they would then do their and tooling for a metal body-in-white, Gurit’s press moulding technology testing to qualify it; then the Tier One I ask Hadorn if a full monocoque body/ enables faster cycle times and gives can start production.”In the automotive chassis for a low-cost car is a possibility; more consistent quality. component fi eld, Hadorn says that Gurit he is cautious but optimistic: “We does not really want to go into the mass have, and are developing, materials for market “We are happy working in the structural applications but we do not see super-premium and premium segments high volume prepreg use happening in and their small and medium size the near future because of two aspects. volumes. We still want to win additional One is the cost, of course, although new programmes of course. We will tooling for composite construction is address the larger volume market with much cheaper; the other is that the material supply and not component composites industry still needs to catch manufacture.” up to cut cost. Don’t forget that steel (and aluminium) has been stamped out Hungary facility - eastern promise for car bodies for nearly 100 years and The company purchased a plant in are super competitive!” Székesfehérvár, Hungary in November There is much talk of new 2013 that opened in March 2014, initially materials and how they open up new producing parts for buses, as Hadorn opportunities for carmakers and I asked says: “We produce the full rear body Hadorn about his view of Graphene and moulding for the Wrightbus Routemaster other advanced composites/materials. (the new version of the traditional “We are always looking at new materials, London bus) there. Now that the we are constantly expanding our range

 We can help the customer with selecting the appropriate materials and then, for the automotive industry specifi cally, we also have the capability to manufacture parts. 

Rudolf Hadorn, CEO, Gurit.

61 for automotive applications to meet in case of any shortages etc. We tend to current demands. stay with the same established suppliers “One of these demands is to speed up as the quality of the raw fibres is very the production process. For this, we have important and we need to be confident developed a fast-curing material, this of this. As you can imagine, tracking is now in the qualification stages with back a problem with a finished product various OEMs. This process uses press through the prepreg and to the original moulding technology; it is pre-formed fibres is very difficult. “Geographically, at room temperature, then it can be put we have a very wide supply base. For into the press ‘hot-in, hot-out’ meaning example, we have farmers in Ecuador one does not have to heat and cool the who supply us with balsa wood which is press in between operations. This cuts used in marine, wind power and other the cycle time down to less than five industries for ‘sandwiching’ in between minutes. This process also gives us, due fibre layers. In adhesives we use the to an industrialised process, a very good traditional big players for the chemicals; and constant quality and reductions these we mix ourselves into finished in pre-work and finishing work. These adhesives. operations can be automated by robot “On raw material prices, we have use as well, which again cuts cost and quite a stable market situation currently. gives more repeatable quality. We have some materials whose costs “Currently we do not see the need or are influenced by the global oil price but demand to use Graphene but we have this is not a major factor everywhere.” a very competent R&D department who Perhaps surprisingly, carbon fibre are constantly looking at new materials.” leftovers from cutting and weaving processes are being considered for re- Raw material and recycling use, as Hadorn says: “We are looking at I wondered if, like many components using more cut off processed material. in automotive, there had been a We already use such fibre matrices geographical shift in the sources internally, for prototyping and testing, of fibres etc., and asked Hadorn if but we are not ready to incorporate there had been significant changes in this into our customer offering. And, of global procurement and pricing “Our course, our customers are responsible raw materials suppliers are mainly for recycling their finished products; they unchanged but we are looking at do not come back to us.” ■ broadening our supply base. We have and need to further enhance a multi- sourcing approach to protect ourselves

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