US Automotive Monthly Health Monitor Jan 2021 | Vol

US Automotive Monthly Health Monitor Jan 2021 | Vol. 15 Key highlights Monthly Health Monitor Automotive

Semiconductor/Chips shortage - Issue

Automotive OEMs as well as parts suppliers have been unfavorably affected by the chip shortage issue worldwide, leading to plant shutdowns and production slowdowns

“More production headaches could lie ahead for the auto industry as a semiconductor chip shortage complicates the recovery…suppliers Robert Bosch and German chipmaker Infineon [stated].…Global automakers have been caught off guard by the shortage of crucial semiconductors” – Economic Times, Feb 04 2020

Global Automotive Semiconductor Supply Chain(a)

MCU/Power Tier-1 Automotive Foundry OSAT Semiconductor Suppliers OEMs

Comprises of Comprises of Comprises of third Comprises of companies microcontroller IC party and original automotive vehicle (foundries) engaged chip manufacturers equipment (passenger cars, in designing, and power automotive part SUVs and light trucks manufacturing, semiconductors manufacturers and etc.) manufacturers testing and manufacturers(c) suppliers packaging of IC (integrated circuits), semiconductor devices and OSAT(b)

Notes: (a) The players list is indicative and might not be exhaustive; (b) Refers to outsourced semiconductor packaging, testing and service providers; (c) Refers to semiconductors operating under high voltages Sources: Third party sources; all accessed in Feb 2021 © 2021 KPMG Global Services Private Limited, a company incorporated under the laws of India and a member firm of the KPMG network of independent member firms affiliated with KPMG International Limited (“KPMG International”), a private English company limited. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 2 Monthly Health Monitor Automotive

Semiconductor/Chips shortage – OEMs Plants impacted (1/3)

(a) Automotive plants impacted (shutdown/production cuts) by chip shortage

North American plant Estimated OEM Impact on production Vehicles built name units lost

Equinox, Onix, San Luis Potosi, Mexico • Down in Feb. and March 19,500 Terrain

Fairfax, US • Down in Feb. and March 14,800 XT4, Malibu

Ingersoll, Canada • Down in Feb. and March 10,900 Equinox GM Ramos Arizpe, Mexico • Down 2 weeks in Feb. 8,200 Blazer, Equinox

Bowling Green, US • Down 2 weeks in Feb. 2,000 Corvette

Orion Twp, US • Down 1 week in Feb. 1,200 Bolt, Cruise AV

• Shut Jan 11 through Feb 7 Louisville Truck, US 25,700 Escape, Corsair • Shut late Feb and early March

• Slow restart pushed back to Oakville, Canada 8,700 Edge, Nautilus Feb 8

• 2 days shortened in Jan Dearborn Truck, US 6,800 F-150 • Additional reductions in Feb

• 2 of 3 shifts canceled for week Ford Chicago, US 4,700 Explorer, Aviator in Feb

• 2 days shortened in Jan Kansas City Truck #2, US 4,000 F-150 • Additional reductions in Feb

Kansas City Truck #1, US • Closed 1 week in Feb 2,600 Transit

F-250-F-550, Kentucky Truck, US • Slow production in Jan 500 Expedition, Navigator

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

© 2021 KPMG Global Services Private Limited, a company incorporated under the laws of India and a member firm of the KPMG network of independent member firms affiliated with KPMG International Limited (“KPMG International”), a private English company limited. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 3 Monthly Health Monitor Automotive

Semiconductor/Chips shortage – OEMs Plants impacted (2/3)

(a) Automotive plants impacted (shutdown/production cuts) by chip shortage

North American plant Estimated OEM Impact on production Vehicles built name units lost

Journey/Fremont, Toluca, Mexico • Down 4 weeks until Feb 15 18,600 Compass

Pacifica, Windsor, Canada • Down 3 weeks starting Feb 8 14,900 Voyager/Grand Caravan

300, 300C, Charger, Bramalea, Canada • Down 3 weeks in Jan 11,300 Challenger Stellantis (FCA) Belvidere, US • Down 1 week in Feb 4,700 Cherokee

Toledo, US • Reduced Jan output 2,800 Wrangler

Toledo Supplier Park, US • Reduced Jan output 900 Gladiator

• Reduced Jan-Feb-Mar Alliston #1, Canada 3,900 Civic production

ILX, TLX, Accord, Marysville, US • Reduced Jan output 2,500 CR-V

Honda Greensburg, US • Reduced Jan output 1,000 Civic, CR-V, Insight

Odyssey, Passport, Lincoln, US • Reduced Jan output 900 Pilot, Ridgeline

East Liberty, US • Reduced Jan output 800 MDX, RDX, CR-V

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

Semiconductor/Chips shortage – OEMs Plants impacted (3/3)

(a) Automotive plants impacted (shutdown/production cuts) by chip shortage

North American plant Estimated OEM Impact on production Vehicles built name units lost

• Loss of 4,900 Tundras in Jan and 5,600 in Feb Toyota San Antonio, US 13,400 Tundra, Tacoma • Loss of 2,700 Tacomas in Jan and 200 in Feb

San Jose Chiapa, Mexico • Reduced shifts in Jan and Feb 5,800 Q5

VW Golf, Jetta, Taos, Puebla, Mexico • Jetta adjustments from Mar 5 1,900 Tiguan

Renault- Altima, Frontier, NV, Canton, US • Specific workdays affected 2,300 Nissan Titan

CX-30, Mazda2, Mazda Salamanca, Mexico • Reduced Q1 output 6,100 Mazda3

• Reduced Jan output (Shutdown Impreza, Legacy, Subaru Lafayette, US Jan 29) 20,200 Outback, Ascent • Expected losses in Feb

Tesla - • Impact not recorded yet NA NA

“Tesla CFO Zachary Kirkhorn told investors during the company’s quarterly earnings call last month that the shortage as well as shipping port capacity “may have a temporary impact” on the automaker. In a public filing, the company said the impact of the shortage is “yet unknown,” saying an unavailability of any parts could impact production.” – CNBC, Feb 11 2021

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

Companies from diversified sectors and regions are stepping foot into the automotive sector indicating low barriers-to-entry, specifically within the EV suppliers space

Companies best positioned for rapid EV penetration(a) (1/3)

Estimated EV exposure Industry Company name Headquarters as a % of revenue 2020 2025 2030 CATL APAC 100% 100% 100% LG Chem APAC 28% 50% 65% Batteries Panasonic APAC 7% 5% 3% Samsung SDI APAC 29% 40% 50% Albemarle US 20-25% 30% 35% Axalta Coating Systems US <1% 3-5% 9-16% Ecopro APAC 48% 70% 90% Ganfeng Lithium Co APAC 80% 92% 94% Huayou Cobalt APAC 66% 77% 79% Iljin Materials APAC 47% 82% 91% Chemicals/ Materials L&F Co APAC 15% 75% 95% Posco Chemical APAC 15% 48% 55% PPG Industries US <1% 1-2% 4-7% Shanghai Putailai APAC 80% 95% 98% Umicore Europe 15% 30-40% - Yunnan Energy APAC 85% 97% 100% Zeon APAC 5% 20% 35% Analog Devices US 1% 3% 7% Cree US 5% 30% 50% Infineon Europe 7% 10-15% 15-20% Semiconductors Maxim US 3% 8% 17% NXP US 1% 2% 5% Rohm APAC 6% 10% 15% STMicro Europe 3% 7% 10-15%

Notes: (a) The list is indicative and not exhaustive Sources: Third party sources; all accessed in Feb 2021

Companies from diversified sectors and regions are stepping foot into the automotive sector indicating low barriers-to-entry, specifically within the EV suppliers space

Companies best positioned for rapid EV penetration(a) (2/3)

Estimated EV exposure Industry Company name Headquarters as a % of revenue 2020 2025 2030

Freeport US 1-2% 3-5% 5-10%

Glencore Europe 47% 44-50% 44-50%

Metals & Mining Orocobre Oceania 63% 83% 91%

SQM LATAM 21% 52% 63%

Vale LATAM 18% 25% 25%

Bizlink APAC 9% 20% 25%

Chroma APAC 20% 28% 35%

Delta APAC 2% 10% 14%

Hon Hai/ Foxconn APAC 0% 12% 36% Tech & Hardware Sunon APAC 5% 15% 20%

Sunwoda APAC 5% 15% 20%

Tripod APAC 1% 3% 9%

Quanta APAC 1% 5% 18%

E.ON Europe 0-5% 0-5% 0-5%

Iberdrola Europe 0-5% 0-5% 0-5%

Power & Clean Tata Power India 0-5% 0-5% 0-5% Tech Eversource US 0-5% 0-5% 0-5%

Sempra US 0-5% 0-5% 0-5%

Enel Europe 0-5% 0-5% 0-5%

New Fortress Energy US 0% 4% 8% Energy Petronet LNG India 0% 8% 19%

Notes: (a) The list is indicative and not exhaustive Sources: Third party sources; all accessed in Feb 2021

Companies from diversified sectors and regions are stepping foot into the automotive sector indicating low barriers-to-entry, specifically within the EV suppliers space

Companies best positioned for rapid EV penetration(a) (3/3)

Estimated EV exposure Industry Company name Headquarters as a % of revenue 2020 2025 2030 NARI Tech APAC 3-5% 8-10% 12-15% Rockwell US 1% 5-10% 15-20% Energy Siemens Europe 2% 5% 8% SMC APAC 5% 5-10% 20% Epiroc Europe 1% 0-5% 5-10% Machinery Komatsu APAC 0-5% 0-5% 5-10% United Rentals US 0-5% 0-5% 5-10%

Notes: (a) The list is indicative and not exhaustive Sources: Third party sources; all accessed in Feb 2021

The share of COVID-19 infected cases across the globe saw a slight decrease for SA, MEA and APAC, however EU and NA continue to witness increasing cases

Number of COVID-19 cumulative cases, by region, as per WHO data, as of Feb 15 2021(a)

100000000 Flattening growth phase 10000000 19 - 1000000 APAC 16.7% 100000 10000 Exponential growth phase 1000 100 SA 19.5% 10

Number of cumulative Covid cumulative Number of 1 infected cases, Logarithmic scale cases, Logarithmic infected 6-Jul 8-Jun 6-Jan 4-Jan 2-Mar 1-Feb 3-Feb 9-Nov 7-Dec 3-Aug 20-Jul 12-Oct 26-Oct 13-Apr 27-Apr 20-Jan 22-Jun 18-Jan 16-Mar 30-Mar 17-Feb 15-Feb 23-Nov 21-Dec 31-Aug 14-Sep 28-Sep 17-Aug 11-May 25-May NA EU SA APAC MEA

Notes: (a) APAC: Asia Pacific; EU: Europe, NA: North America, MEA: Middle East & Africa, SA: Legend: XX %: Indicates region and % South America share of cases on Feb 15, 2021 Sources: World Health Organization WHO website, accessed on Feb 15, 2021

Between Jan’21 and Feb’21, the US, India and Brazil (the leading COVID-19 infected countries) began to see a decline in the number of new COVID cases registered daily

“Overall, the US has recorded more than 27 million confirmed COVID-19 cases since the pandemic began. Hospitalizations are now at less than 85,000, down from the 95,000 reported a week ago and 130,000 recorded a month ago.” – Healthline, Feb 09 2021

“Daily new cases being reported in India are only around 12% of the country’s peak. India has so far not seen a second wave of infections, unlike most other big countries…probably because of preexisting immunity from previous similar viral infections.” – Hindustan Times, Feb 16 2021

“During Jan’21-Feb’21, the number of COVID cases registered daily in Brazil dropped by 19.5% (from 64,025 as on Jan 14 to 51,546 on Feb 14 2021)” - WHO, Feb 15 2021

Sources: Third party sources; all accessed in Feb 2021

Analysts marginally lowered global production outlook for 2021E. SA and EU continue to remain the worst hit regions by COVID-19, followed by NA (2019-20E)

Global light vehicle production outlook (in million units), 2018-23E

Pre-COVID level 15.9% drop(a) Production Production 95.7 94.1 92.2 Region drop/loss recovery 88.7 86.9 (2019-20E) (2020E-23E) 74.6 APAC -11.3% 7.2%

EU -21.7% 10.0%

NA -20.1% 9.4%

SA -31.3% 15.5%

RoW -3.6% 15.4%

2018 2019 2020E 2021E 2022E 2023E

APAC EU NA SA RoW

Global light vehicle sales outlook (in million units), 2018-23E

Pre-COVID 14.3% drop level

94.4 95.0 90.3 91.0 Sales Sales 85.7 Region drop/loss recovery 77.4 (2019-20E) (2020E-23E) APAC -9.0% 5.7%

EU -20.9% 9.5%

NA -16.0% 5.3%

SA -27.0% 13.3%

RoW -14.3% 13.0%

2018 2019 2020E 2021E 2022E 2023E APAC EU NA SA RoW

Notes: (a) Per analyst estimate in Vol. 14, the drop in global production was 15.8% during 2019-20E Sources: Third party sources; all accessed in Feb 2021

OEMs continue to experience low inventory levels driven by pent-up demand, however inventory levels are expected to normalize by H2’2021

US inventory data, Days’ supply

Detroit 3 Cars inventory Detroit 3 light trucks inventory

Jan-20 Dec-20 Jan-21 Jan-20 Dec-20 Jan-21 GM 42 48 36 GM 77 37 51 Ford 101 59 83 Ford 108 57 69 Stellantis(a) 94 61 71 Stellantis(a) 96 58 70 D3 total 72 46 43 D3 total 91 48 60

“[Jan-21] US auto sales off to a strong start with a 16.9mm SAAR and 77% light truck mix…inventory levels remain extremely tight suggesting material pent-up demand…Days supply is still down vs. a year [2020] ago – 59 days [Jan-21] supply vs. 46 days [in Dec-20] vs. 76 days [in Jan-20]” – Morgan Stanley, Feb 03 2021

Notes: (a) In Jan 2021, Peugeot (Netherlands based automaker) acquired Fiat Chrysler Automobiles for $45.0 bn, combined entity is known as Stellantis Sources: Third party sources; all accessed in Feb 2021

Continued demand for used vehicles, due to lack of new vehicles (primarily luxury cars /pickups), coupled with government stimulus has led to slight price rise for US used cars

Manheim Used Vehicle Price Index (with 100 in Jan 1995) 163.7 163.0 162.6 162.0 161.9 161.2 158.0 149.3 143.5 141.9 141.6 141.3 141.1 140.5 140.5 140.3 139.9 139.6 138.9 138.4 137.0 136.0 135.4 135.2 125.8 Jul-20 Jul-19 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Jan-21 Mar-19 Mar-20 Feb-20 Feb-19 Nov-19 Dec-19 Nov-20 Dec-20 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20

“The Manheim Used Vehicle Value Index increased…to 163.0, which was a 15.1% increase from [2020]. On a [Jan-20 to Jan-21] basis, most major market segments saw seasonally adjusted increases in Jan-21, but pickups and luxury cars again outperformed the overall market. The weekly price data indicate an early start in [Jan-21] to the traditional spring bounce, which is usually driven by tax refunds, but this year is being assisted by stimulus as well.” – Cox Automotive, Feb 08 2021

Sources: Third party sources; all accessed in Feb 2021 © 2021 KPMG Global Services Private Limited, a company incorporated under the laws of India and a member firm of the KPMG network of independent member firms affiliated with KPMG International Limited (“KPMG International”), a private English company limited. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 12 Key dynamics influencing the US auto supply chain Monthly Health Monitor Automotive

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Automotive suppliers 1 Automotive suppliers providing chip related vehicle components (e.g. Bosch, offering emergency braking systems) could be adversely impacted due to an increased likelihood of direct sourcing of semiconductors by automakers (e.g. VW) to mitigate supply chain disruptions

“OEMs sourcing direct from semis - another structural risk for suppliers? It's not unusual for OEMs to have direct relationships further down the supply chain such as for auto catalysts where tier 1s are the integrators but OEMs buy direct from chemicals companies…If this is part of a wider shift in semiconductor sourcing, it could mean more content loss for suppliers over time” – Morgan Stanley, Feb 03 2020

Further, automotive suppliers offering semiconductor related vehicle parts are also expected to pay damages (fines) for the production challenges created for automakers due to part shortages

“VW may seek damages from Continental and Bosch for the chip shortages - which would be unusual, as suppliers react to call-offs from OEMs, and don't have full visibility into OEM demand planning” – Morgan Stanley, Feb 03 2020

As an immediate action plan, industry participants/several governments plan to tackle the chip shortage with the aid of Taiwanese chip manufacturing foundries (responsible for ~20-30% of global auto semi production)

— For example, Taiwan chip maker TSMC suggests to trim chip orders from small customers belonging to other end-markets (such as consumer electronics) to fulfill auto semi demand at surge pricing

“Key auto semi manufacturing foundries such as TSMC and UMC, will attend an industry meeting hosted by Taiwan Economy Department and answer requests from government representatives from Germany, the US and Japan on the auto semi shortage resolution…TSMC [recently] trimmed some production of LCD driver ICs (due to lower margins) and some wafer demand from start-up companies…to respond to recent auto semi rush orders…TSMC charged 20% higher wafer prices for these incremental auto semi rush orders” – Morgan Stanley, Feb 03 2020

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Automotive suppliers 2 Automotive suppliers offering digital cockpit solutions (e.g. infotainment system etc.) can witness growth in the short term, due to increasing focus on connected and autonomous mobility (primarily by technology firms/suppliers, e.g. Qualcomm)

“Qualcomm Technologies introduced its next generation of digital cockpit solutions with the 4th Generation Qualcomm Snapdragon Automotive Cockpit Platforms…[which] are engineered as a homogenous and multipurpose solution to address this transition to a zonal architecture, serving as a central hub for high- performance compute, computer vision, artificial intelligence (AI) and multi-sensor processing with a flexible software configuration.” – Marklines, Jan 26 2020

3 Vehicle part manufacturers (e.g. Continental) continue to focus on alternative materials, such as structural plastics and aluminum, to produce more lightweight, sustainable and efficient vehicle parts

“…Continental Structural Plastics (CSP), along with its parent company Teijin, introduced a patent- pending clip system that replaces the need for bolts in the process of joining the top and bottom of an electric vehicle battery case. This clip system improves the seal, reduces assembly costs, and makes the batteries easier to service when needed…By molding the cover and the tray each as one piece, the CSP multi-material battery enclosure is 15% lighter than a steel battery box.” – Marklines, Feb 01 2020

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Automotive manufacturers 1 More OEMs (e.g. Ford, GM and Hyundai) are partnering with technology giants such as Google, Microsoft and Apple in order to offer better Auto 2.0 (electrification, autonomy and connectivity) solutions and leverage new revenue streams

“75 million Ford vehicles on the road globally. What if each of these cars could generate just $10/month of data driven/licensing/subscription based revenue…Ford and Google announced a 6-year partnership …involves powering millions of Ford and Lincoln vehicles on the Android OS, enabling features like Google Play, Google Maps and Google Assistant. Ford also named Google Cloud as its ‘preferred’ cloud provider that appears to touch a wide range of Ford’s ecosystem, from supply chain and manufacturing… down to vehicle management, distribution, after-sales and service.” – Morgan Stanley, Feb 02 2020

“GM, Hyundai and Geely benefit from 'tech' co-operation…GM has said that Microsoft will invest $2bn in its Cruise self-driving tech business; [and] Hyundai is in talks for its subsidiary Kia to build Apple cars in the US” – Morgan Stanley, Jan 22 2020

Additionally, EV transition may decrease vehicle prices gradually and provide opportunities for OEMs to replace some in-car hardware with software, coupled with reduction in vehicle parts, complexity and enhanced operational efficiency

“Nidec…world’s largest electric motor manufacturer, talking about new car prices potentially falling to as low as $3,000 a piece due to cost/manufacturing savings related to EV architectures…[and] price of EV motors will drop to a fifth…electrification brings a once in a century opportunity…giving OEMs a chance to substitute out hardware for software, reduce SKUs, complexity and even to rethink manufacturing in a way that brings far greater levels of automation and productivity.” – Morgan Stanley, Jan 25 2020

Also, OEMs are focusing on offering Level 3 and above autonomy and plan LiDAR sourcing decisions to boost their market valuation and position in autonomous mobility “the valuation of autonomous driving related assets could re-rate, along with the automakers attempting to break new ground in vehicle autonomy as focus shifts to upcoming Level 3-4 deployments. For example… NIO recently unveiled its autonomous driving platform targeting Level 4 functionality [in 2022]…The success of LiDAR SPAC listings in the US also seems to reflect a higher level of investor interest in the autonomy/ mobility theme…” – Deutsche Bank, Jan 29 2020

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Automotive manufacturers 2 Global automakers (e.g. GM) may face supply-chain challenges due to an increase in key raw material /commodity prices such as steel and copper, in the short-term

Average share of raw materials per vehicle, as of Jan 2021 (%)

Regular Steel 30.9% High and Medium Strength Steel 19.3% Aluminum 10.5% Plastics and Plastic Composites 8.6% Iron Castings 6.1% Fluids and Lubricants 5.6% Rubber 5.2% Other Materials 2.6% Glass 2.4% Stainless Steel 1.8% Copper and Brass 1.8% Textiles 1.2% Powder Metal 1.1% Lead 0.9%

Key automotive commodity assets, Jan 2016 – Jan 2021

“Major autos commodities such as HRC steel, copper, platinum, and rubber have all moved up sharply in the current asset rally. This could raise auto manufacturing costs sharply in FY21.” – Morgan Stanley, Feb 02 2020

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Automotive manufacturers 3 US OEMs (e.g. GM) will benefit from federal government efforts, led by President Biden, (e.g. plans to build EV charging stations) to improve driving efficiency, electrification and domestic manufacturing

“US President Biden committed to replacing the US government’s fleet of cars, trucks and SUVs [~645k vehicles] with American-built EVs in his executive order…the US federal government would build 550k EV charging stations in the US to encourage the incoming shift to battery-powered vehicles” – Marklines, Jan 25 2020

However, OEMs may be adversely impacted or face losses due to a growing push for passenger vehicle safety by federal government and automotive agencies such as the US NHTSA

— For example, US NHTSA rejected requests from Ford and Mazda on giving up recall of vehicles with faulty airbags in Jan 2021

“In one of the biggest cases of recalls ever, the US government highway safety agency declined the appeals of Mazda and Ford to dismiss the recall. The Takata airbag inflators are seen to be the issue of concern for the NHTSA as it seems to be potentially risky for the life of drivers. The US highway safety agency NHTSA has called out Mazda, Lincoln and Ford again for they sent a request to give up the recall, and the agencies have rejected the plea.” – Car Indigo, Feb 08 2020

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Sales and marketing channel 1 Continued consumer preference for light trucks/SUVs, has boosted OEM focus on production of high- margin cars and has even led to the discontinuation of some sedans by global OEMs (e.g. KIA) in the US

“…light truck sales in Jan [2021] continued benefiting from shifting consumer preferences, as well as an increased emphasis on high-margin vehicles by OEMs as production continues to ramp across the US amid low inventories, with truck sales mix expected to climb 410bps y-o-y to 79.2% of SAAR” – Deutsche Bank, Jan 29 2020

“…Kia confirmed that it has discontinued both its Cadenza and K900 sedans in the US and will not offer them for the 2021 model year…sedans in general have been dropping off as a percentage of the US market in favor of crossovers and SUVs” – Marklines, Jan 26 2020

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

End user 1 Amid the pandemic, factors such as lower vehicle miles driven and rise in the number of people staying at home could reduce the need for a daily commute and/or new vehicle ownership

Weekly miles driven Y-o-Y change (%), Feb 2020 – Dec 2020

People staying at home per day on monthly basis, (Jan 2019 – Jan 2021) 35.0%

30.0% 27.6% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Jul-20 Jul-19 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Jan-21 Mar-19 Mar-20 Feb-19 Feb-20 Nov- 19 Dec- 19 Nov- 20 Dec- 20 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20

“Number of people staying at home [in Jan 2021 is] tracking in line with Apr 2020 levels, the height of the pandemic” – Credit Suisse, Jan 25 2021

Legends: Indicates favorable Indicates unfavorable Indicates an activity / factor factor Neutral factor Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

End user 2 Amid the ICE to EV transition, reduction in the valuation (residual value) of old ICE cars traded-in for new EV purchases can burden the consumer and unfavorably impact vehicle purchase decision, in the long term

“…car’s residual is based on its ability to present a 2nd, 3rd or 4th owner of a car with an asset that can offer value/utility over its remaining useful life…Given more than 9 out of 10 new car purchases involve a trade- in or off-lease transaction, the issue of potential residual value repression is a serious one and, we believe, may necessitate a range of fiscal creativity along the way to encourage de-carbonization without burdening the auto consumer in negative equity” – Morgan Stanley, Jan 20 2021

Legends: Indicates favorable Indicates unfavorable Indicates an activity / factor factor Neutral factor

Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Aftermarket

1 Automotive parts retailers (e.g. AutoZone) may witness growth in DIY sales (primarily from lower income consumers) owing to government stimulus (comprising direct payment and rise in consumer wages), in the short-term

“DIY Trend Tracker…has accelerated meaningfully in recent weeks, growing at the strongest rate since Jun 2020, coinciding with stimulus and weather. There is significant inflow of stimulus, including direct payments, rising wages, etc., should benefit this group the most.” – Credit Suisse, Jan 25 2021

Stimulus benefit by retailer in 2020 (000’ $) 84.0 82.0 81.0 80.0 79.0 79.0 78.0 78.0 77.0 75.0 72.0 72.0 68.0 66.0 66.0 66.0 65.0 64.0 63.0 61.0 61.0 60.0 60.0 57.0 56.0 51.0 51.0 37.0 BJ KR HD DG ACI MIK TGT AAP BBY FND AZO DKS SFM OLLI FIV E LOW GME HIBB WMT CWH WSM DLTR PRTY BBBY ORLY TSCO COST SPWH

Nielsen DIY weekly trend tracker (Jan 2020-Jan 2021) Rise in DIY trend in Jan-21, primarily due to rise in government stimulus towards auto retailers

Legends: Indicates favorable Indicates unfavorable Indicates an activity/ factor factor Neutral factor Notes: (a) List is indicative and might not be exhaustive Sources: Third party sources; all accessed in Feb 2021

COVID-19: Road to recovery – Key dynamics influencing the US automotive supply chain(a)

Automotive Automotive Sales and End user Aftermarket suppliers manufacturers marketing channel

Aftermarket

2 Automotive tire suppliers and retailers in the US, seem to be facing headwinds/margin pressure due to continued rise in tire raw material prices (e.g. synthetic rubber prices) post Jun 2020

“tire manufacturers benefitted from a raw material tailwind in 2020 overall, the tailwind eased in H2’2020 and turned into a headwind late in the year. Looking at current spot prices, we expect raw materials to weigh on profits for tires in 2021.” – Deutsche Bank, Jan 20 2021

Synthetic Rubber Producer Price Index (with 100 in June 2003)(b)

159.9 161.5 159.2 157.5 153.1 151.4 150.8 147.8 148.0 146.2 145.6 146.3 Jul 2020 Apr 2020 2020 Oct Jan 2020 Jun 2020 Mar 2020 Feb 2020 Nov 2020 Dec 2020 Aug 2020 Aug 2020 Sep May 2020

“Bridgestone today announced it will increase prices up to 8% across its full portfolio of Bridgestone brand commercial truck [and car] tires and Bandag retreading in the U.S. and Canada. This price adjustment is a necessary step as Bridgestone continues to manage increased business costs including escalating transportation and raw material costs that are forecast to continue into the second half of the year.” – School Transportation News, Feb 17 2021

Notes: (a) List is indicative and might not be exhaustive; (b) PPI indicates average change selling prices received by domestic producers of the commodity Sources: Third party sources; all accessed in Feb 2021

Industry highlights: Investments, partnerships and supply contracts(a)

Investments, partnerships and supply contracts

Date Summary

— GM plans to invest $75mn into their transmission plant in Ohio, US to increase production capacity Feb 04, of its 10-speed automatic transmissions for the Chevrolet Silverado and GMC Sierra (full-size 2021 pickup trucks)

— Immersion(b) partnered with Faurecia(c) to provide access to its haptic/3D touch technologies Feb 03, (offers vibration/motion sensation while user interacts with touchscreen) to be used by Faurecia in 2021 developing a touchscreen interface for car drivers

— Cloudera(d) (US based software firm) and NXP(e) (Netherland based semiconductor manufacturer) Feb 03, collaborated to develop an automotive data platform(f) for data management of connected and 2021 autonomous vehicles

Jan 27, — Novelis(g) and Constellium(h) collaborated to launch their R&D unit ‘Alumobility’ to innovate 2021 lighter, efficient and sustainable aluminum adoption in the automotive body sheet

Notes: (a) The list is indicative and might not be exhaustive; (b) US based provider of haptic technologies; (c) France based auto parts and equipment maker; (d) Includes Airbiquity and Wind River Systems; (e) includes Teraki GmbH; (f) Refers to The Fusion Project, pre-integrated hardware and software solution for data collection and analysis; (g) US based manufacturer of aluminum sheets, foils etc.; (h) France based aluminum rolls and related aluminum products manufacturer Sources: Third party sources; all accessed in Feb 2021

Industry highlights: Emphasis on Electrification(a)

EV related IPOs, product launches, expansions and supply contracts Date Summary

Feb 10, — Rivian Automotive (US based EV maker) is rumored to be launching at an IPO valuation of $50 2021 bn by 2022

Feb 05, — Apple(b) in collaboration with Kia Motors plans to invest $3.6bn for production of EV at KIA’s 2021 Georgia, US facility with annual production of ~100,000 EVs to begin production in 2024

— Continental Structural Plastics(c) and Teijin(c), introduced a 15% lighter battery enclosure(d) Feb 01, than existing battery enclosures, to improve seal, serviceability and lower assembly cost of EV 2021 batteries

Jan 28, — Samsung Display (South Korea based electronic components manufacturer) will supply OLED(e) 2021 displays for Hyundai’s crossover EV Ioniq 5 to be launched in US by the end 2021

— Molex (US based electronics solutions provider) launched accelerometer-based active noise Jan 26, cancellation sensor for EVs to reduce road, wind and car HVAC noise, along with low-frequency 2021 sounds

Jan 23, — Hitachi Automotive Electric Motor Systems America(e) announced expansion of its EV motor 2021 manufacturing facility in Kentucky, US (adding 200 jobs) and may begin production by 2023

Notes: (a) The list is indicative and might not be exhaustive; (b) US based manufacturer of consumer electronics; (c) US based light-weight materials and specialty chemical manufacturers; (d) Consists of composite cover, composite tray, steel reinforcement and 68 clips to hold up to 3 PSI of internal pressure; (e) Refers to organic light-emitting diode display; (f) US based manufacturer and seller of electric vehicle motors Sources: Third party sources; all accessed in Feb 2021

Industry highlights: Autonomous mobility, partnerships and supply contracts and Plant closures(a)

Autonomous mobility (AV) partnerships and supply contracts

Date Summary

Feb 02, — Motional(b) partnered with Automated Vehicle Safety Consortium(c) for the development of 2021 SAE(d) Level(e) 4 and 5 automated driving systems

Jan 27, — Qualcomm(f) collaborated with Veoneer(g) to develop Arriver software an ADAS(h) and autonomous 2021 driving solution equipped with System on a chip (SoC)(i) platform

Jan 26, — Qualcomm(f) plans to launch 4th gen automotive cockpit platform in 2022 (with focus on zonal 2021 architecture(j) operating acting as central hub for computing, AI and multi-sensor processing)

Jan 21, — Cerence and Xevo (US based connected car technology providers) collaborated to develop 2021 Cerence Pay, a conversational AI based contactless payment platform into vehicles

Jan 19, — Denso(k) partnered with Aeva(l) to develop FMCW(m) LiDAR(n) sensors (which help in sensing 2021 distance, direction and speed of moving objects such as other vehicles)

Plant closures

Date Summary

— Ford announced plans to close three manufacturing plants in Brazil as part of its $11 bn global Jan 12, restructuring to cut 5000 jobs and discontinue sales of Ford Ka subcompact car, EcoSport and T4 2021 SUVs in South America

Notes: (a) The list is indicative and might not be exhaustive; (b) US based autonomous mobility solution provider; (c) Association involved in testing of automated vehicles, members include Honda, SAE, Toyota etc.; (d) Refers to Society of Automotive Engineers (SAE), defines 6 levels of autonomous driving; (e) Level 0: No Driving Automation, Level 1: driver assistance, Level 2: partial driving automation, Level 3: conditional driving automation, Level 4: high driving automation and Level 5: full driving automation; (f) US based semiconductor chip, software and related services provider; (g) Sweden based auto parts manufacturer; (h) Refers to advanced driver assistance systems; (i) SoC integrates all components on a single chip; (j) Zonal architecture is central connectivity hub optimizing computation resources and consolidating engine control units; (k) Japanese auto part manufacturer; (l) US based manufacturer of optical sensors for automotive industry; (m) Refers to Frequency Modulated Continuous Wave; (n) Refers to light detection and ranging sensor used to measure distances Sources: Third party sources; all accessed in Feb 2021

Industry highlights: Carbon neutral initiatives ad Government efforts(a)

Carbon neutral initiatives

Date Summary

Jan 28, — GM announced plans to be carbon neutral by 2040 and reduce light-duty vehicles emissions by 2021 2035, initiative is followed by planned(b) transition to BEVs and zero emission vehicle technologies

Jan 22, — Nissan announced Nissan Rogue (compact SUV) built using closed-loop(c) aluminum recycling 2021 to reduce CO2 emissions in manufacturing

Jan 20, — Ford reiterated its plans to become carbon neutral by 2050 and completely rely on renewable 2021 energy for all its operating sites by 2035

Government efforts

Date Summary

Feb 02, — Senators from US states including Michigan, Ohio, and Illinois urged President Biden to address 2021 global semiconductor shortage and support NDAA(d) to boost domestic semiconductor production

Jan 25, — President Joe Biden announced plans to replace US government’s fleet of ~645k vehicles(e) with 2021 American-built EVs, further, the government plans to build 550k EV charging stations in the US

Jan 20, — President Joe Biden signed executive order to review fuel efficiency standards(f) made under 2021 Trump govt. to roll back to stringent(g) fuel economy standards similar to Obama administration

Notes: (a) The list is indicative and might not be exhaustive; (b) GM plans to offer 30 all-electric models globally by 2050 and 40% of the its US models will be BEVs by 2025 end; (c) In closed loop recycling used product is recycled into a new product and not sent in landfill waste; (d) National Defense Authorization Act; (e) Includes cars, trucks and SUVs; (f) In Mar 2020, US Department of Transportation's National Highway Traffic Safety Administration and the US Environmental Protection Agency released Safer Affordable Fuel-Efficient Vehicles guidelines related to average fuel economy and emission standards for 2021-26 passenger cars and light truck models; (g) Per revised Mar 2020 guideline, fuel economy standards were set to 40.4 mpg, as compared to 46.7 mpg under 2012 standards and corporate average fuel economy and CO2 emissions standards were set to 1.5% per year, as compared 5% annual increases under 2012 standards Sources: Third party sources; all accessed in Feb 2021

Industry highlights: Others(a)

Others Date Summary

Feb 02, — Coalition for Sustainable Automotive Regulation(b) announced its withdrawal(c) from legal battles 2021 between federal government and California over rights to set emission and fuel economy standards

Jan 22, — American Axle (US based auto part maker) launched 17 products (comprising electric drives, 2021 front and rear axles etc.) to cater to global OEMs such as GM and Mercedes-Benz

Notes: (a) The list is indicative and might not be exhaustive; (b) Refers to OEM industry group representing Stellantis, Toyota, Subaru, Hyundai, Kia, Mazda, Mitsubishi and the National Automobile Dealers Association; (c) OEMs had sided with former President Donald Trump in a lawsuit to roll back emissions and mileage standards Sources: Third party sources; all accessed in Feb 2021

Key M&A activity: Jan 18 – Feb 11 2021(a)(b) Acquisitions Deal Announced/ Target Deal rational Target Acquirer Acquirer description value, Closed date HQ (for Acquirer) $ million

US based automotive Expand its battery system Feb 15, 2021 BorgWarner Akasol AG(c) Germany parts and equipment portfolio and strengthen 880 (Announced) Inc. manufacturer global footprint

Advantage- Canada based oil and Diversify its portfolio, with a Feb 08, 2021 Starvolt Inc. US won Oil gas exploration and focus on renewable/solar 1.3 (Closed) Corporation production company energy solutions for EVs

US based Augment its tracking and manufacturer and Jan 26, 2021 MFSS telematics devices portfolio GPSi, LLC US distributor of vehicle NA (Closed) Holdings LLC and strengthen its footprint telematics and in North America tracking devices

ubitricity Netherlands based oil Gesellschaft Boost its portfolio, primarily Jan 25, 2021 Royal Dutch and gas extraction, für verteilte Germany with on-street charging NA (Closed) Shell plc transportation and Energie- solutions for EVs in Europe distribution company systeme mbH

US based Augment its air suspension manufacturer and portfolio (with offerings for Jan 25, 2021 Flo Airride Air Lift distributor of air supercars etc.) and enhance US NA (Closed) Mfg Performance management systems customer service and suspensions for capabilities (such as faster vehicles order execution)

Notes: (a) The list of transactions is indicative and might not be exhaustive; (b) List excludes stock purchase agreements, and deals related to the companies primarily selling bikes, commercial / recreational vehicles (c) While M&A research is through February 11th, given the size of this deal we have added it as of February 15th Sources: Third party sources; all accessed in Feb 2021

Key M&A activity: Jan 18 – Feb 11 2021(a)(b) Divestiture Announced/ Target Deal rational Deal value, Target Acquirer Seller Closed date HQ (for Seller) $ million

Feb 02, 2021 Cia Wheel Wynnchurch Capital, Cia Wheel US NA NA (Closed) Group L.P Group

Aftermarket Jan 22, 2021 Performance US NA NA NA $250 mn (Rumored) Group, LLC

Jan 22, 2021 Transtar Blue Point Capital Transtar US NA NA (Closed) Industries, Inc. Partners IV, L.P. Holding, Co.

Reverse merger(c) deals (via SPACs – Special purpose acquisition companies)(d) Announced Target Target Acquirer Target Key executives Sponsor date HQ description (SPAC) CEO & REE 10X Capital Chairman Hans 10X Capital Feb 03, 2021 Israel based EV Automotive Israel Venture Acquisition Thomas, SPAC Sponsor I (Announced) platform maker Ltd. Corp CFO Guhan LLC Kandasamy Property US based Chairman, Co- Jan 28, 2021 Faraday& Property Solutions Solutions US autonomous EV CEO & Secretary (Announced) Future Inc. Acquisition Corp. Acquisition maker Jordan D. Vogel Sponsor, Llc

Board Chairman, Jan 12, 2020 Lucid Motors US based EV Churchill Capital Churchill US CEO & President (Rumored) Inc. maker Corp IV Sponsor IV LLC Michael S. Klein

CEO Daniel US based Hennessy Dec 21, 2020 Canoo Hennessy Capital Hennessy; US manufacturer of Capital Partners (Closed) Holdings Ltd. Acquisition Corp CFO Nicholas electric vehicles IV LLC Petruska

Notes: (a) The list of transactions is indicative and might not be exhaustive; (b) List excludes stock purchase agreements, and deals related to the companies primarily selling bikes, commercial / recreational vehicles; (c) A reverse merger is when a private company becomes a public company by purchasing control of the public company; (d) A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company Sources: Third party sources; all accessed in Feb 2021

Key M&A activity: Jan 18 – Feb 11 2021(a)(b)

Joint Ventures Announced/ Joint Venture/ Partnership Ownership status Deal rational Closed date Seeks joint venture opportunities in the US, — SK Innovation Co., Ltd. Jan 25, 2021 China and Europe to (South Korea based energy and chemical NA (Rumored) expand its battery company) business and boost global presence

Industry performance US light vehicle production and sales volume, monthly (000’ units)(a) US light vehicle sales in Jan’21 fell below Jan’20 levels (recorded a monthly y-o-y dip of 3.0%) 1,800 20% 1,500 0% 1,200 -20% 900 -40%

600 -60% 300 -80% 0 -100% MARKET STATS MARKET Jul'20 Jan’21 Oct'20 Apr'20 Jun'20 Jan'20 Mar'20 Feb'20 Dec'20 Nov'20 Aug'20 Sep'20 May'20 Production (000' units) Sales (000' units) Production y-o-y change (%) Sales y-o-y change (%) Note: (a) Data for US light vehicle production in the month of Jan’21 has not been published as of Feb 11, 2021 Source: Third party sources; accessed on Feb 11, 2021

Top gainers(a) Net Debt/EBITDA ratio(b)(c) Avg. share price, Net Debt / Supplier name CQ1'20 CQ2'20 CQ3'20 CQ4'20 Supplier name Dec-20 to Jan-21 EBITDA LTM LTM LTM LTM (% change) (latest LTM)(d) The Goodyear Tire 4.2 7.6 8.5 6.6 Shiloh Industries 249.5% 11.5 Nexteer Automotive 28.0% - Adient plc 4.8 4.4 8.8 5.7

Garrett Motion 24.5% 4.5 Asbury Automotive 4.6 3.4 5.5 5.4 Magna International 13.2% 1.4 Meritor 2.4 2.2 3.2 4.3 Bosch Limited 13.1% - Asbury Automotive 12.9% 5.4 Modine Manufacturing 2.5 2.7 3.0 3.1 Aptiv PLC 12.3% 1.0 AutoZone 2.7 2.8 2.6 2.0 American Axle 12.0% 4.9 BorgWarner 0.7 0.8 0.5 1.8 Modine Manufacturing 11.0% 2.0 AutoNation 10.7% 3.8 Autoliv 1.3 2.0 1.7 1.5 Veoneer 10.6% - Lear Corporation 0.7 1.6 1.2 1.2

Top decliners(b) Aptiv PLC 2.1 1.7 1.5 1.0

Avg. share price, Net Debt / Cooper-Standard 3.6 28.1 17.2 - Supplier name Dec-20 to Jan-21 EBITDA SUPPLIER PERFORMANCE (% change) (latest LTM)(d) Avis Budget 7.9 10.8 12.4 - Nemak -5.3% 3.8 Shiloh Industries 3.8 5.8 11.5 -

Meritor -1.6% 4.4 Tenneco 4.5 6.8 6.1 - Autoliv -1.3% 1.5 American Axle 3.3 5.4 4.9 - Martinrea International -1.1% 3.0 Adient plc -0.6% 4.8 Superior Industries Intl. 3.8 6.0 4.9 -

Notes: (a) Delphi Technologies has been excluded from share price analysis, post acquisition by BorgWarner’s in Oct’20; (b) Represents information for calendar year quarters; (c) Populated for automotive suppliers with CQ4’20 LTM basis data availability followed by CQ3’20 LTM data, arranged chronologically; (d) Indicates latest LTM information per 3Q OR 4Q per company’s latest filings Sources: Third party sources; all accessed in Feb 2021

Automotive supplier's debt rating(a)(b) Since Mar-20, several automotive suppliers witnessed credit risks on their debt loans, however, there has not been any significant supplier credit rating issue during past four months Offering Credit risk per Rating Company Ultimate Security Offering date/ Moody’s security amount Moody’s rating date (Issuer) parent type Maturity date rating action ($ million) scale Foreign Sep 23, Garrett Motion Sep 21 2018/ Downgrade: Garrett LX I SARL Currency 411.2 2020 Inc. Oct 15 2026 From Caa1 to Caa2 Very high Debenture Jun 19 Faurecia S.E. Faurecia S.E. Corporate Mar 08 2018/ Downgrade: 863.2 2020 (ENXTPA:EO) (ENXTPA:EO) Debentures Jun 15 2025 From Ba1 to Ba2 Substantial

Jun 19 Tenneco Inc. Tenneco Inc. Corporate Jun 06 2016/ Downgrade: 500.0 2020 (NYSE:TEN) (NYSE:TEN) Debentures Jun 15 2026 From B3 to Caa1 Very high INA-Holding Jun 15 Schaeffler Corporate Mar 26 2019/ Downgrade: Schaeffler AG 903.0 2020 GmbH & Co. Debentures Mar 26 2024 From Baa3 to Ba1 Substantial KG Avis Budget Rental Jul 10 Asset Backed Aug 19 2019/ Downgrade: Car Funding 535.6 2020 Security Mar 20 2026 From Aa1 to Aa2 Very low (AESOP) LLC Avis Budget Group, Inc. Apr 24 Avis Budget Car Corporate Jul 02 2013/ Downgrade: (NasdaqGS: 500.0 2020 Rental, LLC Debentures Apr 01 2023 From B1 to B3 High CAR) Foreign Apr 24 Avis Budget Oct 04 2018/ Downgrade: Governments 403.0 2020 Finance plc Jan 30 2026 From B1 to B3 High and Agencies

The Goodyear Tire Mar 25 & Rubber Corporate Nov 02 2015/ Downgrade: The Goodyear 1000.0 2020 Company Debentures Nov 15 2023 From B1 to B2 High Tire & Rubber (NasdaqGS:GT) Company (NasdaqGS:GT) Mar 25 Goodyear Europe Corporate Dec 15 2015/ Downgrade: 273.2 2020 B.V. Debentures Dec 15 2023 From Ba2 to Ba3 Substantial

Mar 25 Adient plc Corporate Apr 25 2019/ Downgrade: Adient US LLC 800.0 2020 (NYSE:ADNT) Debentures May 15 2026 From Ba2 to Ba3 Substantial

Delphi Delphi Mar 25 Technologies Corporate Sep 14 2017/ Downgrade: Technologies PLC 800.0 2020 PLC Debentures Oct 01 2025 From B2 to B3 High (NYSE:DLPH) (NYSE:DLPH)

Cooper- Mar 25 Cooper-Standard Corporate Oct 27 2016/ Downgrade: Standard 400.0 2020 Automotive Inc. Debentures Nov 15 2026 From B3 to Caa1 Very high Holdings Inc.

Note: (a) The list is indicative and not exhaustive. The table above demonstrates the rating for each company (issuer), only for their largest loans/debts, which received downgrade/upgrade from Moody’s, post Mar 2020; (b) Excludes rating downgrades for OEMs, automotive dealers, retailers and distributors etc.; Sources: Third party sources; all accessed in Feb 2021 © 2021 KPMG Global Services Private Limited, a company incorporated under the laws of India and a member firm of the KPMG network of independent member firms affiliated with KPMG International Limited (“KPMG International”), a private English company limited. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. 36 Key market statistics Monthly Health Monitor Automotive

Light vehicle sales summary by vehicle type

Sales Market share

YoY % bps 2021 Type Jan-21(a) Jan-20(a) Jan-21 Jan-21 2020 2019 2018 2017 change change YTD

Cars 16,257 27,448 -40.8% 7.4% 9.7% -240bps 7.4% 7.0% 8.2% 10.6% 11.7% GM Trucks 185,179 183,080 1.1% 21.9% 21.4% 50bps 21.9% 20.6% 20.2% 19.9% 20.6% Total 201,436 210,528 -4.3% 18.9% 18.5% 40bps 18.9% 17.4% 16.9% 17.1% 17.4% Cars 10,109 17,878 -43.5% 4.6% 6.3% -180bps 4.6% 5.7% 7.4% 9.2% 9.8% Ford Trucks 135,500 138,163 -1.9% 16.1% 16.2% -10bps 16.1% 16.6% 16.7% 16.7% 17.8% Total 145,609 156,041 -6.7% 13.7% 13.7% -10bps 13.7% 14.0% 14.1% 14.4% 15.0% Cars 10,698 9,227 15.9% 4.8% 3.3% 160bps 4.8% 4.6% 4.3% 4.1% 4.3% FCA Trucks 113,138 126,439 -10.5% 13.4% 14.8% -140bps 13.4% 14.9% 16.2% 16.8% 16.1% Total 123,837 135,666 -8.7% 11.6% 11.9% -30bps 11.6% 12.5% 12.9% 12.9% 12.0% Cars 45,032 60,151 -25.1% 20.4% 21.3% -100bps 20.4% 19.9% 18.0% 16.9% 16.7% Toyota Trucks 116,034 105,714 9.8% 13.8% 12.4% 140bps 13.8% 12.9% 12.5% 12.8% 12.7% Total 161,066 165,865 -2.9% 15.1% 14.6% 50bps 15.1% 14.5% 14.0% 14.0% 14.1% Cars 33,485 42,371 -21.0% 15.2% 15.0% 10bps 15.2% 16.2% 14.9% 13.7% 13.2% Honda Trucks 60,092 59,254 1.4% 7.1% 6.9% 20bps 7.1% 7.2% 7.3% 7.3% 7.5% Total 93,577 101,625 -7.9% 8.8% 8.9% -20bps 8.8% 9.3% 9.4% 9.3% 9.5% Cars 24,685 27,460 -10.1% 11.2% 9.7% 140bps 11.2% 9.7% 11.5% 11.5% 11.9% Nissan Trucks 40,629 52,352 -22.4% 4.8% 6.1% -130bps 4.8% 5.1% 6.5% 7.4% 7.8% Total 65,314 79,812 -18.2% 6.1% 7.0% -90bps 6.1% 6.2% 7.9% 8.6% 9.3% Cars 32,246 38,831 -17.0% 14.6% 13.8% 80bps 14.6% 15.0% 14.2% 13.7% 13.2% Hyundai Trucks 54,444 45,667 19.2% 6.5% 5.3% 110bps 6.5% 6.4% 5.3% 4.5% 4.2% Total 86,690 84,498 2.6% 8.1% 7.4% 70bps 8.1% 8.5% 7.8% 7.3% 7.4% Cars 48,425 58,515 -17.2% 21.9% 20.8% 120bps 21.9% 21.9% 21.5% 20.5% 19.3% Other Trucks 138,750 143,757 -3.5% 16.4% 16.8% -40bps 16.4% 16.3% 15.3% 14.5% 13.1% Total 187,175 202,272 -7.5% 17.6% 17.8% -20bps 17.6% 17.6% 17.0% 16.4% 15.3% Cars 220,938 281,881 -21.6% 20.8% 24.8% -410bps 20.8% 23.4% 27.8% 30.7% 35.3% Total Trucks 843,766 854,426 -1.2% 79.2% 75.2% 410bps 79.2% 76.6% 72.2% 69.3% 64.7% industry Total 1,064,704 1,136,307 -6.3%

Note: (a) Number of selling days: Jan 2021 = 24, Jan 2020 = 25 Source: Third party sources; all accessed in Feb 2021

Global Auto Sales Summary

Light vehicle total unit sales (million)

Net change # Prior Net change % 5yr CAGR % Current forecast (Current Country 2019 forecast (Current over (2016-21E) (2021E) minus Prior (2020E) prior forecast) forecast) China 21.4 (5.5)% 18.4 18.2 0.2 1.1%

US 17.1 (1.9)% 16.0 14.5 1.5 10.3%

Canada 1.9 (5.9)% 1.7 1.6 0.1 6.3%

Mexico 1.3 (5.6)% 1.2 1.1 0.1 9.1%

Total North America(a) 20.3 (2.5)% 18.9 17.2 1.7 9.9%

France 2.7 (0.8)% 2.3 2.0 0.3 15.0%

Germany 4.2 - 3.8 3.3 0.5 15.2%

Italy 2.1 (2.1)% 1.8 1.6 0.2 12.5%

Spain 1.5 (1.6)% 1.2 1.0 0.2 20.0%

UK 2.7 (5.8)% 2.3 2.0 0.3 15.0%

Other 3.6 (1.2)% 3.2 2.8 0.4 14.3%

Total Western Europe(a) 16.7 (2.1)% 14.5 12.7 1.8 14.2%

Legend: Decrease Neutral Increase

Note: (a) Totals may slightly vary due to rounding off Source: Third party sources; all accessed in Feb 2021

Regional performance – US

SAAR by quarter(a) 19

13 17.9 17.8 17.7 17.7 17.6 17.5 17.4 17.3 17.3 17.3 17.2 17.2 17.2 17.1 17.1 17.0 16.9 16.9 16.9 16.8 16.7 16.7 16.6 SAAR (mn) SAAR 16.2 11 15.9 15.4 15.1

9 11.3

7 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q19 2Q19 1Q14 2Q14 3Q14 4Q14 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Notes: (a) Data for 1Q’21 has not been published, as of Feb 11, 2021 Source: Third party sources; all accessed in Feb 2021

New vehicle share evolution – FCA, Ford, GM(a)

Note: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Source: Third party sources; all accessed in Feb 2021

New vehicles share (%)(a) Dec-19 Dec-20 18.3% 18.0% 15.5% 14.1% 13.5% 12.9% 12.5% 12.4% 8.9% 8.4% 6.8% 6.1% 4.3% 4.3%

GM Ford Toyota FCA Honda Nissan Hyundai

Note: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Source: Third party sources; all accessed in Feb 2021

Regional performance – US

Sales Segment Mix(a) (2020 YTD Dec. vs. 2019 YTD Dec)

Compact Enthusiast 9.5%

Compact SUV 0.9%

Subcompact Enthusiast -1.5%

Large Pickup -5.1%

Large SUV -6.1%

Middle SUV -8.8%

Middle Pickup -12.5%

Small Enthusiast -13.6%

Small SUV -14.9%

Total Market -15.1%

Small Van -15.9%

Large Van -16.9%

Middle Enthusiast -19.2%

Middle Car -23.2%

Small Car -29.3%

Compact Car -32.7%

Middle Minivan -33.9%

Subcompact Car -42.3%

Large Car -57.4%

-80.0% -60.0% -40.0% -20.0% 0.0% 20.0%

Note: (a) Data as of Jan 26, 2020 Source: Third party sources; all accessed in Feb 2021

Regional performance – US

D3 Incentives Evolution(a)

Note: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Sources: Third party sources; all accessed in Feb 2021

D3 Inventory (Units)(a)

Note: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Sources: Third party sources; all accessed in Feb 2021

Regional performance – US

US regular reformulated retail gasoline prices ($ / Gal) Jan 2013 – Jan 2021 and US vehicle miles traveled (VMT), Millions of miles, Jan 2013 – Nov 2020(a)

4 315,000 ilo f vehicleMillion travelled of miles

295,000 3.5

275,000

US$ / Gal 255,000

235,000 2.5

215,000

2 195,000

1.5 175,000 Jul-2013 Jul-2016 Jul-2018 Jul-2019 Jul-2014 Jul-2015 Jul-2017 Jul-2020 Oct-2013 Oct-2014 Oct-2015 Oct-2016 Oct-2018 Oct-2019 Oct-2017 Oct-2020 Apr-2013 Apr-2014 Apr-2015 Apr-2016 Apr-2019 Apr-2020 Apr-2017 Apr-2018 Jan-2016 Jan-2017 Jan-2013 Jan-2014 Jan-2015 Jan-2018 Jan-2019 Jan-2020 Jan-2021

US regular reformulated retail gasoline prices (US$ / Gal) US vehicle miles traveled (VMT), Millions of miles

Note: (a) Data for the US Vehicles miles travelled is available till Nov 2020, as accessed on Feb 04, 2021 Sources: Third party sources; all accessed in Feb 2021

Regional performance – US

US Plug-in unit salesg (a) YTD Dec 2020 ()

Tesla Model 3 122,700 Tesla Model Y 65,400 Chevrolet Bolt 20,754 Toyota Prius Plug-In Hybrid 14,698 Tesla Model S 10,125 Nissan Leaf 9,564 Tesla Model X 7,375 Audi E-Tron 7,212 Audi Q5 PHEV 4,072 Honda Clarity PHEV 3,940 Hyundai Ioniq PHEV 3,637 Ford Fusion Energi Plug-In Hybrid 3,630 Porsche Taycan 3,435 Toy ota RAV 4 P rime 3,207 Hyundai Kona EV 3,021 Kia Niro EV 2,848 BMW 5 Series Plug-In Hybrid 2,640 Volvo XC90 Plug-In Hybrid 2,557 Kia Niro Plug-In Hybrid 2,306 Mercedes-Benz GLC Plug-In Hybrid 2,206 Volvo XC60 Plug-In Hybrid 2,040 Mitsubishi Outlander PHEV 2,004 BMW X3 xDrive30e 1,999 Jaguar I-Pace 1,958 Lincoln Aviator PHEV 1,845 BMW i3 1,722 Hyundai Ioniq EV 1,535 Porsche Cayenne Plug-In Hybrid 1,413 Land Rover Range Rover Sport 2.0 PHEV… 791 Volkswagen e-Golf 767 Land Rover Range Rover 2.0P PHEV AWD 616 Hyundai Sonata Plug-In Hybrid 601 MINI Cooper SE BEV 542 BMW 7 Series Plug-In Hybrid 341 BMW 330e xDrive Plug-In Hybrid ** 228 BMW X5 xDrive 45e & Plug-In Hybrid 227 Volvo S60 Plug-In Hybrid 226 BMW i8 184 MINI Cooper Countryman PHEV 175 Audi A8 & A7 PHEV 174 Kia Optima Plug-In Hybrid 148 Fiat 500e 73 Chevrolet Volt 71 Honda Clarity BEV 45 BMW 3 Series Plug-In Hybrid 19 Ford Escape PHEV 13 Ferrari SF90 Stradale 7

Note: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Sources: Third party sources; all accessed in Feb 2021

Regional performance – US

US BEV Monthly Sales(a)

Notes: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Sources: Third party sources; all accessed in Feb 2021

US industry transaction prices vs. incentives ($/vehicle)

Sources: Third party sources; all accessed in Feb 2021

Regional performance – China

China Monthly Passenger Vehicle Sales Volume Trend(a)

Notes: (a) Data for Jan-21 has not been published, as of Feb 11, 2021 Sources: Third party sources; all accessed in Feb 2021

China Monthly Passenger Vehicle Sales by Segment(a)

Notes: (a) Data for Dec-20 has not been published, as of Feb 11, 2021 Sources: Third party sources; all accessed in Feb 2021

Regional performance – China

China Passenger Vehicle Market Share by Segment(a)

100% 3% 6% 1% 6% 7% 8% 7% 10% 11% 10% 4% 1% 12% 2% 4% 6% 90% 4% 4% 5% 2% 5% 2% 3% 2% 3% 6% 5% 6% 8% 9% 8% 10% 3% 8% 7% 80% 4% 9% 3% 9% 4% 12% 3% 16% 8% 5% 14% 15% 18% 70% 19% 8% 4% 8% 7% 60% 26% 4% 10% 12% 14% 12% 26% 6% 10% 3% 50% 27% 4% 5% 5% 5% 6% 27% 5% 6% 7% 40% 8% 26%

25% 30% 23% 22% 23% 23% 45% 20% 41% 35% 31% 25% 10% 20% 19% 18% 16% 13%

0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sedan Low Sedan Middle Sedan High Sedan Luxury SUV Low SUV Middle SUV High SUV Luxury MPV

Notes: (a) Percentage values may not add up to 100% due to rounding-off error Sources: Third party sources; all accessed in Feb 2021

2013 2014 2015

2016 2017 2018

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The term “KGS” refers to the KGS Platform of Indian delivery entities, which consist of KPMG Global Services Private Limited (“KGSPL”), KPMG Global Services Management Private Limited (“KGSMPL”),

KPMG Global Delivery Centre Private Limited (“GDCPL”) and KPMG Resource Centre Private Limited (“KRCPL”), unless the specific private limited entity is specifically noted.

Use in these materials of the term “Our”, or “Us” means KGSPL, KGSMPL, GDCPL and/or KRCPL as the case may be and all four such legal entities are referred to collectively as “KGS”.

Note that Audit services for the clients of the US and Canadian firms are delivered from the GDCPL and for UK (and other firms except US and Canada) Audit services are delivered from KRCPL.