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Slide Heading Appears Here (24Pt Arial) Analyst Note> Autofacts R March 2014 Gaining traction Advanced drivetrains are fueling driver safety and experience Added security, better torque management, increased stability and affordability… these are the ingredients that have made all-wheel drive (AWD) and four-wheel drive (4WD) more attractive while preserving the driver experience. A brief look at the present and future of drivetrain technology. Vehicle Drivetrain Technologies Off-road capabilities vs. On-road performance Part-time Permanent 4WD 4WD 4WD AWD p + 4WD Part-time eMotor in wheel AWD w/lock Value gap « off-road » (AWD → 4WD) option (extreme conditions)(extreme Torque Vectoring Permanent AWD AWD Part-time capabilities AWD Value gap « off-road » road - (4x2 → AWD) off Traction Control 4 x 2 4x2 Increased Increased on-road performance (road handling) Value gap « on-road » (4x2 → AWD) Source: Autofacts Analysis 4WD, AWD, and the changing spectrum traction to be sent to the second axle. Due to its basic While the origins of 4WD technology can be traced layout, a classic 4WD system is virtually undriveable back to military vehicles in times of war, AWD on the road, but offers superior traction in soft systems have their roots in high-performance on- terrain. Therefore, most 4WD vehicles only operate road cars looking to increase mechanical traction. “part-time” – when the driver explicitly activates the Technically, the main difference between the central transfer case or the freewheel locks at the systems lies in the way driving force, or torque, is wheels. In addition, they offer the possibility to lock distributed between the front and rear axles. While the axle differentials to climb or descend terrain at 4WD systems rely on a central transfer case that steep grades while still maintaining a steady speed splits torque in a fixed ratio, AWD systems use a with either a “descent-hill-control” electronic system central differential that allows variable amounts of or specific transmission with a short first gear. For information regarding our products and services please visit us at www.autofacts.com The first on-road AWD system was introduced in the Global: Market Share by Vehicle Type 1960s in the Jensen FF, and taken to a larger scale 2005 vs. 2020 with the Audi Quattro sports coupe in 1980. These variants offered additional grip and performance on 2005 2020 wet, icy, snowy, or muddy road conditions. Part-time AWD is generally defined as operating mostly in 4% two-wheel drive (2WD) configuration – either front 12% 20% or rear wheel drive – transferring power to the opposite axle through the central differential only when slip is detected. Additional differentials at the 9% axles provide for even more flexible traction distribution between the wheels as torque vectoring 84% 71% systems actively enhance torque at individual wheels to support driving dynamics. With a higher price tag, such systems are higher in fuel consumption when compared to the 2WD alternative, given their added CUV + SUV MPV Rest weight and mechanical friction. Source: Autofacts 2014 Q1 Data release As countries implement stricter CO2 emission regulations, new technologies such as stability/traction control and hybrid AWD systems development, involves an electric motor and battery have emerged to help address these standards and placed on the non-driving axle operating in parallel appeal to a broader consumer base. Less effective to the combustion engine and main driving axle. but more affordable for lower-mid-range sedans and Electric-driven axles, like on the Peugeot Hybrid4 CUVs buyers, traction control systems offer better system, can be used either alone to propel the traction in 2WD cars, thanks to brake activation or vehicle with zero emission, or as AWD to provide engine power cut to put the car back on track after additional torque. Even when the traction battery is slippage is detected. Hybrid AWD, a recent depleted, the car still offers 2WD with electric traction aid. Today, many automakers are investing AWD system scheme example in R&D to combine electric in-wheel motors with combustion engines to comply with environmental regulations, or to offer AWD for CUVs, sedans or even smaller hatchbacks without requiring complex changes to the vehicle platform. Cost, market perceptions, and the road ahead In a survey of 1,200 existing drivers and potential buyers across five major automotive markets, the top three considerations in relation to advanced Consumers sentiment regarding improved traction systems were: ability to keep the car out of traction systems difficult situations, improved safety, and dynamic Percentage of buyers who are traction control, especially in curves. However, the 53% reluctant to buy improved traction reality remains that the advanced technologies option due to price concern required to address these concerns are still cost- prohibitive. Further compounding these costs are the potential higher taxes levied against less- Percentage of buyers who see the efficient 4WD and AWD options when compared to higher fuel consumption as 2WD models. Though 4WD and AWD applications compared to 2WD alternatives as 31% are must-haves in some regions, they are still an obstacle considered premium options elsewhere and thus, demand remains cost-sensitive. Continued investment in drivetrain R&D is needed Percentage of 4WD/AWD to help close the gap between consumer owners who purchased expectations and price, achieving a balance between 67% advanced drivetrain options to cost, fuel efficiency, platform integration and traverse difficult terrain Source: Autofacts Analysis ultimately, high performance. © 2014 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. For information regarding our Each member firm is a separate legal entity. Please see www.pwc.com/structure for further products and services please visit us at details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Autofacts is a registered trademark www.autofacts.com of PricewaterhouseCoopers LLP. .
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