SMMT International Business Group Thursday 27 November 2014

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd Chairman’s Welcome Richard Long, BorgWarner Thermal Systems

Competition compliance and terms of reference

Presentations from CEE, , USA, Messe Frankfurt and Santander

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 1  Around the world, around the table

SMMT Events

 Any other business

 2015 meetings

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2

Opportunities in the Automotive Sector in CEE 4 What is Emerging Europe / CEE

• A region of nine markets: Austria, , Croatia, Czech Republic, , Poland, Romania, Slovakia, Slovenia – 110 million consumers • Easy and inexpensive access – located just 2-3 hours from the UK • Export of British goods and services to Emerging Europe have more than doubled in the last 10 years • Potential to double exports by 2020 • All EU regulated, part of the EU’s Single Market • Lower overall risk profile than emerging markets further from the UK • Proven market for UK businesses • Language of business is English

5 UKTI Central European Network

Strategic Campaigns 2014/15 • Energy • Infrastructure • Automotive & Advanced • Healthcare & Life Sciences • Services • Security & Defence

6 CEN Automotive & Advanced Manufacturing Campaign

JOINT APPROACH

• one of the six strategic campaigns in UKTI’s Central European Network • Cross-border co-operation of UKTI advisers in nine markets • Regional Strategy & Business Planning in Automotive and Advanced Manufacturing • Representing the CEE region at events in the UK and overseas • Holding thematic webinars • Co-operation with key stakeholders: relevant associations, event organisers, industry experts, consultants, key accounts etc. • Assistance to UK companies in identifying business potential in the CEE region

CEE:

Facts: • Annual turnover of approximately £118 billion • Expansion of OEM plants in the region – (Mercedes, , PSA Citroen, Audi, Skoda, KIA motors, Dacia, Ford, Renault, Hyundai, etc.) 44 OEMs • CEE automotive industry increased by 170% between 2009-2014 (still double digit growth figures) • Produced over 3.5 million vehicles in 2013 • Automotive and its supporting industries account for some 10% of the GDP of most CEE countries • CEE: production hub of compact cars

CEE: Automotive Industry

Opportunities in Central and Eastern Europe

• OEMs are constantly looking for new suppliers • Worth bringing R&D capabilities into the region (e.g. BOSCH mini Silicon Valley, National Instruments Science Park) • Innovation capabilities, which are set by “mega trends” such as:

– Reduction of fuel consumption and CO2 emission – Shorter product life-cycles – Growing amount of electronic components – Customer experience / connected lifestyle • Knowledge transfer – UK excellence in education and training; consultancy

CEE: Automotive Industry

Challenges in Central and Eastern Europe

• Price sensitive industry • To get involved in the local supply chain • High competition, long-term business relationships • Local presence is a huge advantage – to be able to respond to changing demand (price – delivery time – logistics costs) • Lack of transparency

UKTI CEN: Automotive Events 2014/15

• Automotive Supply Chain Congress 2014, Liverpool • Innovation is GREAT Regional Automotive & Aerospace Workshop, Budapest • Cenex-Low Carbon Vehicle Event, London • Automechanika, Frankfurt • Automotive Hungary, Budapest • Advanced Engineering UK 2014, Birmingham To come: • Opportunities in the Automotive Sector in CEE, Webinar by UKTI Warsaw • 2nd British Automotive Board Meeting, Budapest • British Automotive Supply Chain Conference, Prague

11 Innovation is GREAT Regional Automotive & Aerospace Workshop 12 Innovation is GREAT Regional Automotive & Aerospace Workshop

Workshop @ British Embassy Budapest – 24 July 2014 • Introduction of the CEE automotive environment (PwC, Mercedes-Benz Manufacturing Hungary, Videoton • Showcase British excellence – introduction of UK capabilities (Delcam, Caterham, Radical Sportcars, Bloodhound SSC) • Further networking opportunities in the evening

Professional partners:

13 British Automotive Board

Workshop @ British Embassy Budapest – 24 July 2014

Some statistics: • over 100 participants from 90 companies • 90 CEE, 22 UK attendees • Nearly 50 webinar registration • 71 pieces of press coverage across the CEE • Overall satisfaction rate: 4.82 (out of 5) 14 British Automotive Board

Pilot programme in Hungary (and in Slovakia)

Aims to: • Provide a platform for UK companies already present in the market • Invite government officials and industry experts to hold presentations for board members in certain topics • Harmonize strategic actions of UK Trade & Investment with key UK stakeholders • Quarterly meeting – sharing information, networking

Trade Advisers in UKTI CEN

Austria Bulgaria Croatia Jan Grusser Sashka Evtimova Diana Manenica [email protected] [email protected] [email protected]

Czech Republic Hungary Poland Gabriela Liparova Krisztina Gorog Robert Dabrowski [email protected] [email protected] [email protected]

Romania Slovakia Slovenia Alice Sapcaliu Ivana Winbladh Aleksandra Barič [email protected] [email protected] [email protected]

16 SUPPORTING YOUR INTERNATIONAL AMBITIONS John Carroll, Head of International, Santander Corporate & Commercial

“At Santander Corporate & Commercial, we understand that entering overseas markets for the first time can be a daunting experience. Even seasoned exporters tell me that they face problems that can be difficult to solve without the right knowledge and support. Our aim is to ensure your business is supported not only by the right products and services but also by a team of international specialists across the UK who understand the nuances of international trade, and are therefore able to provide the best solutions for your business. So whether you’re an SME beginning to spread your wings overseas or a large corporate trading with all four corners of the globe, we have innovative services that can help you on your international journey.”

17 Santander - Global Reach, Local Support A strong global presence with a comprehensive range of international solutions and services, 14,000 branches worldwide, the largest international bank network, 14 major markets, 2.9 million business customers globally

USA UK • Branches: 706 • Mkt. Share: 11% • Customers: 2.2m • Branches: 1,157 • Customers: 14.0m • Mkt. Share: 14% • Branches: 1,258 • • Customers: 10.9m Branches: 253 • Customers: 6.5m

More than 10% Market Share in the Majority of Countries Puerto Rico • Mkt. Share: 10% • Branches: 115 • Customers: 412k

Colombia Corporate Brazil Banking • Mkt. Share: 11% only • Branches: 3,566 • Customers: 30.06m Poland • Mkt. Share: 9% Peru Uruguay • Branches: 830 Corporate • Mkt. Share: 17% • Customers: 4.3m Banking only • Branches: 40 • Customers: 280,000 Chile Argentina Portugal • Mkt. Share: 18% • • Mkt. Share: 10% • Mkt. Share: 13% • Branches: 493 Mkt. Share: 9% • • Branches: 640 • Branches: 4,067 • Customers: 3.5m Branches: 377 • Customers: 2.0m • Customers: 14.2m • Customers: 2.5m

*Figures are based on Group Financial Report. Market share based on total credit.

18 Strategic Alliances

In talks with a Pilot with Abu Dhabi Stake in Bank of In talks with a Bank in Canadian Bank Commercial Bank

Alliance with a Bank in South

Stake in Alliance with a Bank in In talks with a bank in In talks with a Bank in Attijariwafa bank Australia & NZ Singapore

19 We often ask our clients what they want…

How can you help us How do I get paid? Can we get access improve our supply to cheap freight chain? forwarders? How do we identify new markets? What shipping How do I go about documents do I need setting up a for a new market and subsidiary in Poland? are there any barriers I should know about?

How can we source new and reliable trading partners? Do I have the option of making payments to using RMB or USD?

20 The Six Step Path to International Success

GLOBAL COPING WITH LEADERSHIP GROWTH EXPORTING

GROWING CONNECTING OVERSEAS SETTING UP ABROAD

21 What Santander Can Offer to SMMT Members

Payments & Supply Chain Currency Finance Negotiating/ Commitments Accounts Discounting To Of Export Extending Negotiate LC Foreign Payment Exchange terms Confirmation of import LC Import Risk Mitigation/ Of Import/ Trade Funding Loans Transactional Export LC Discounting Bonds & Trade Import Guarantees Advising & Missions LC Pre and Post Payment Passport Export/ Advance against Export Loans of Export Export Import Doc LC Collections Trade Doc Collections Club OUR Differentiators Trade Portal International Desk

Round Master Tables Classes

22 We can help you at every step of the International Growth ladder

COPING WITH GLOBAL GROWTH LEADERSHIP GROWTH TRADE CLUB CAPITAL & EXPORTING ICC TRAINING TRADE PORTAL

GROWING BREAKTHROUGH CONNECTING OVERSEAS SETTING UP GEOGRAPHICAL ABROAD COVERAGE & PASSPORT ALLIANCES

23 Trade Portal – Gateway to the World

A market leading tool free for Santander customers  10,000 pages covering 185 countries • Demystifies the challenges of understanding trade opportunities  40,000 trade shows by sector • Helps our customers understand which countries to  60,000 suppliers trade with • Answers a lot of first time trade questions  100,000 importers  1 million public and private tender How to Where? connect? opportunities How to Who? How to set-up? execute?

Free to try on www.santandertrade.com

24 EXAMPLE OF A INTERNATIONAL PROSPECT PLAN FOR ABC INTERNATIONAL

ABC INTERNATIONAL OVERVIEW

 ABC INTERNATIONAL operates in the automotive industry since 2001. • Insert Picture  This company has presence in the European market and is now willing to expand geographically.  Following their successful track record, the business is currently looking at the Mexican market as a target of their international expansion plan.

26 Santander Trade Portal can help ABC INTERNATIONAL explore new markets

 10,000 pages covering 185 countries A market leading tool free for Santander customers  40,000 trade shows by sector • Demystifies the challenges of understanding trade opportunities  60,000 suppliers • Helps our customers understand which countries to  100,000 importers trade with  1 million public and private tender • Answers a lot of first time trade questions

opportunities

Demo available at www.santandertrade.com

27 TRADE PORTAL ABC INTERNATIONAL 1. Identifying new markets

Identify the most promising countries for your products and services….

28 TRADE PORTAL ABC INTERNATIONAL 1. Identifying new markets

Identify the most promising countries for your products and services….

29 ABC INTERNATIONAL TRADE PORTAL 1. Identifying new markets

30 ABC INTERNATIONAL TRADE PORTAL 2. Find new Counter Parts Importers Find out who imports your products and services

31 ABC INTERNATIONAL TRADE PORTAL 2. Find New Counterparts

32 ABC INTERNATIONAL TRADE PORTAL 2. Find new Counter Parts Suppliers

Find out who supplies your products and services worldwide…

33 ABC INTERNATIONAL TRADE PORTAL 2. Find New Counterparts Target new business opportunities through Professional Associations, Trade shows, Market reports and much more…

34 ABC INTERNATIONAL TRADE PORTAL 3. Operating Understand how to operate in target market…

35 ABC INTERNATIONAL TRADE PORTAL 4. Exporting Find information to export and distribution in new markets

36 ABC INTERNATIONAL TRADE PORTAL 5. Establishing

Find information to create, run and operate a company abroad.

37 TRADE CLUB

Trade Club, is an online community of Santander customers from around the world. The club will allow you to access possible target companies and source new business leads. Some of club benefits are : • Business opportunities in 13 countries where Santander customers can interact with each other. • Connect directly with companies of interest to you. • Access to value-added services and discounts for club members • Online seminars covering a wide range of trading topics • 40 hours of a free online course on International Trade for two employees STEP 3 • It allows companies to find out what the member companies are looking for e.g. joint business ventures. • Help from our troubleshooting Community Manager

38 Passport

We are committed to serve you consistently in all our Santander banks

Fostering and strengthening global relationships with key international clients by providing a seamless transition into new markets

Real privileges for companies in other Santander countries

• All subsidiaries supported by an account manager, preferably in their own language or in English

• Streamlined procedures for account opening and local credit assessment

• Support from a Santander local specialist in business trips to Santander geographies

• Market intelligence services: list of importers/exporters, tenders, subsidies, etc.

• Each country supplements the above with other value added local services

39 40 Opportunities in Canada’s Automotive Sector

27 November 2014 An Automotive Jurisdiction

Automotive is Canada’s Largest Manufacturing Sector • 117, 414 employed in auto manufacturing and 376,643 in distribution and aftermarket (2013). • The automotive sector accounts for 10% of Canada’s manufacturing GDP. • Automotive Manufacturing activity is clustered in .

Vehicle Assembly • 10 large scale light vehicle assembly plants. • 2.37 million light vehicle units produced – 14.7% of NAFTA output (2013). • $79.9 billion in shipments (2013).

Automotive Components Source: Industry Canada. (Light vehicles made in Canada 2014) • 750+ firms. • $27.1 billion in shipments (2013).

42 A Player in North America

● Canada is part of a fully integrated Motor Vehicle Sales in North America North American market with normal (in millions of units) annual sales of 20 million units. 25 Mexico

U.S. Sales and production have returned 20 ● Canada to normal since the U.S. financial crisis of 2008-09, and North America should 15 remain one of the world’s largest and most lucrative automotive markets. 10

● The N.A. Free Trade Agreement 5 (NAFTA) ensures duty-free trade for

originating goods throughout the 0 region. 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 2019f

Source: Industry Canada, from IHS | CSM Worldwide Note: Figures include passenger and commercial vehicles

43 Assembly Plants in Canada

Parent Plant / Location Products 300/300C; Charger and Challenger; Assembly Plant (Brampton ON) Thema Chrysler Chrysler Town & Country; Dodge Grand Caravan; Ram Windsor Assembly Plant (Windsor ON) Cargo Van Ford Oakville Assembly Complex (Oakville ON) Ford Edge and Flex; Lincoln MKX and MKT

CAMI Automotive (Ingersoll ON) Chevrolet Equinox and GMC Terrain Vehicles GM Buick Regal and Regal eAssist; Cadillac XTS; Chevrolet Oshawa Car Plants 1-2 (Oshawa ON)

Camaro, Equinox and Impala Light Honda HCM Plants 1-2 (Alliston ON) Honda Civic and CR-V

North and South Plants (Cambridge ON) Toyota Corolla, Matrix; Lexus RX350 and RX450h Toyota West Plant (Woodstock ON) Toyota RAV4 and RAV4 EV

Parent Plant / Location Products Blue Bird Micro Bird (Drummondville PQ) Type A school buses Hino [Toyota] Hino Motors Canada (Woodstock ON) Class 4-7 trucks (CKD)

Lion Bus Lion Bus Inc. (St. Jerome PQ) Type C school buses

MCI MCI International (Winnipeg MB) intercity buses

Trucks Trucks Buses New Flyer New Flyer Industries Canada (Winnipeg MB) urban transit buses

and and PACCAR PACCAR of Canada (Ste. Therese PQ) Class 6-7 trucks Heavy Heavy Nova Bus Corporation (St. Eustache PQ) urban transit buses Volvo Bus Prévost Car (Ste. Claire PQ) intercity buses

44 The Canadian Supply Base

AUTOMOTIVE INTERIORS AUTOMOTIVE EXTERIORS ELECTRICAL & ELECTRONICS BODY SYSTEMS MANUFACTURING MACHINERY, ABC Group 3M Commercial Spring and Tool Co. ABC Group TOOLS & EQUIPMENT AGS Automotive Systems ABC Group D&V Electronics Ltd. AGS Automotive Systems ABB Inc. Aisin Canada AGS Automotive Systems DBG ArcelorMittal Tubular ArcelorMittal Tubular ArcelorMittal Tubular Amino North America Corp. Denso Manufacturing Canada Armada Toolworks Ltd. Burlington Technologies Inc. Bend All Essar Steel Algoma Inc. Digital Dash Cannon Automotive Solutions DBG Brose Canada ArcelorMittal Intertec Systems Commercial Spring and Tool Co. Electromac Group Canadian General-Tower Limited ArcelorMittal Tubular Kasai Canada Inc. DBG Falcon Tool & Die (1979) Ltd. Commercial Spring and Tool Co. Enstel Manufacturing Inc. KSR International Inc. Enstel Manufacturing Inc. Flex N Gate DBG Canadian General-Tower Ltd. Inc. Exco Technologies Limited Magna International Inc. Enstel Manufacturing Inc. Commercial Spring and Tool Co. MIS Electronics F&P Manufacturing Inc. The NARMCO Group Exco Technologies Limited DBG Omron Dualtec Automotive Inc. Falcon Tool & Die (1979) Ltd. ODG Group Falcon Tool & Die (1979) Ltd. Delhi-Solac Inc. QNX Software Systems Flex N Gate Stahlschmidt Cable Systems Freeway Washer Limited Exco Technologies Limited Schukra Of North America Ltd. Freeway Washer Limited Valiant Tool & Mold Inc. H. Paulin & Co. Ltd. F&P Manufacturing Inc. Spatial View H. Paulin & Co. Ltd. Van-Rob Inc. Hayashi Canada Inc. Falcon Tool & Die (1979) Ltd. Tyco Electronics Canada Ltd. Hematite Manufacturing Exco Technologies Limited Hematite Manufacturing Flex N Gate Van-Rob Inc. Huzura Manufacturing Ltd. PlasmaTreat North America Inc. JYCO Sealing Technology Freeway Washer Limited Windsor Mold Group KSR International Inc. J.P. Bowman Limited Lear Canada H. Paulin & Co. Ltd. Lanex Manufacturing Inc. ABC Group BRAKING Magna International Inc. Henkel Canada Corporation Magna International Inc. Anchor Danly CTS Systems Martinrea International Inc. KSR International Inc. Martinrea International Inc. Husky Injection Molding DANA Corporation Marwood Metal Fabrication Lanex Manufacturing Inc. Marwood Metal Fabrication Vari-Form DYNA-MIG Manufacturing Inc. Matcor Automotive Inc. Magna International Inc. Matcor Automotive Inc. Windsor Mold Group F&P Manufacturing Inc. MetriCan Stamping Co. Inc. Martinrea International Inc. Maxtech Manufacturing Inc. FANUC Robotics Canada Ltd. KSR International Inc. MIS Electronics Marwood Metal Fabrication MetriCan Stamping Co. Inc. Nachi Robotic Systems Inc. PRODUCTION CONTROL EQUIPMENT Linamar Corporation Mitchell Plastics Matcor Automotive Inc. Multimatic Yaskawa Motoman Canada Ltd. AUTOMATION & DESIGN CHASSIS Martinrea International Inc. Omron Dualtec Automotive Inc. Maxtech Manufacturing Inc. AIR INTAKE / EXHAUST SYSTEMS ODG Group TRW ABC Group ABC Group Maxtech Manufacturing Inc. EDUCATION & RESEARCH Papp Plastics MetriCan Stamping Co. Inc. ABC Group Omega Tool ABB Inc. AGS Automotive Systems Nichirin Incorporated Advanced Design & PlasmaTreat North America Inc. ODG Group Enstel Manufacturing Inc. Omron Dualtec Automotive Inc. Altair Engineering Canada, Ltd. ArcelorMittal Tubular Sinteris Manufacturing Institute (ADMI) Salflex Polymers Ltd. PlasmaTreat North America Inc. Commercial Spring and Tool Co. Samuel Automotive Applied Precision Inc. Armada Toolworks Ltd. AUTO21 Inc. Samuel Automotive PPG Canada DBG Sinteris ArcelorMittal Tubular Bend All CON*NECT Schukra Of North America Ltd. Quality Safety Systems Company Falcon Tool & Die (1979) Ltd. POWERTRAIN The NARMCO Group Armada Toolworks Ltd. Enstel Manufacturing Inc. Conestoga College Sealed Air (Canada) Co./Cie. Salflex Polymers Ltd. H. Paulin & Co. Ltd. ABC Group The Woodbridge Group Bend All Burlington Technologies Inc. Georgian College Stahlschmidt Cable Systems Samuel Automotive Huarong Purification Inc. AGS Automotive Systems Tiercon Cannon Automotive Solutions Canadian Autoparts Toyota Inc. Humber College The NARMCO Group Sealed Air (Canada) Co./Cie. Linamar Corporation ArcelorMittal Tubular Van-Rob Inc. Centreline DANA Corporation McMaster University-MAC Auto The Woodbridge Group Sinteris Magna International Inc. Bend All Vari-Form Clover Tool Mfg. Ltd. DBG Mohawk College Tiercon The Butcher Engineering Limited Martinrea International Inc. Burlington Technologies Inc. Warren Industries DBG DYNA-MIG Manufacturing Inc. Ontario Centres of Excellence TG Minto Corp. The NARMCO Group Marwood Metal Fabrication Commercial Spring and Tool Co. WEGU Manufacturing Engineered Solutions Corp. (ESC) Electromac Group Seneca College of Applied Arts & Technology Toyota Boshoku Canada The Woodbridge Group THE NARMCO GROUP D & V Electronics Ltd. Windsor Mold Group Exco Technologies Limited F&P Manufacturing Inc. University of Waterloo - WatCAR TS Tech Tiercon Van-Rob Inc. DANA Corporation Woodstock Stampings Inc. Falcon Tool & Die (1979) Ltd. Falcon Tool & Die (1979) Ltd. University of Windsor Van-Rob Inc. Trimont Manufacturing Inc. Wescast Industries Inc. DBG Yachiyo of Ontario Manufacturing FANUC Robotics Canada Ltd. Flex N Gate ECONOMIC DEVELOPMENT Vari-Form Van-Rob Inc. Windsor Mold Group Giffels Associates Limited/IBI Group Global Technologies Canada's Automotive Corridor Velcro Canada Inc. Vari-Form Woodstock Stampings Inc. Exco Technologies Limited PRODUCTION Henkel Canada Corporation H. Paulin & Co. Ltd. Canada's Technology Triangle Inc. Windsor Mold Group Warren Industries COMMUNICATION F&P Manufacturing Inc. HANDLING Husky Injection Molding Jefferson Elora Corporation City of Brantford Woodstock Stampings Inc. WEGU Manufacturing & INFORMATION Freudenberg-NOK Inc. ABB Inc. Huzura Manufacturing Ltd. Kautex-Textron City of Hamilton COMFORT & WindsorHVAC Mold Group ABC Group H. Paulin & Co. Ltd. Marwood Metal Logikor Kumi Canada Corp. Durham Region CONVENIENCE WoodstockABC Group Stampings Inc. AGS Automotive Systems Invotronics Fabrication Magna International Inc. Linamar Corporation Greater Toronto Marketing Alliance ABC Group ArcelorMittal Tubular ArcelorMittal Tubular Linamar Corporation ODG Group Marwood Metal Fabrication Magna International Inc. London Economic Development Corp. AGS Automotive Systems Burlington Technologies Inc. DBG Magna International Inc. Panasonic Canada Inc. ODG Group Martinrea International Inc. Municipality of Chatham-Kent ArcelorMittal Tubular Commercial Spring and Tool Co. Exco Technologies Limited Martinrea International Inc. Schaefer Systems Inc. OES, Inc. Matcor Automotive Inc. Niagara Economic Development Corp. DBG DANA Corporation Magna International Inc. Musashi Auto Parts Canada Inc. Schenker DB Logistics Omega Tool MetriCan Stamping Co. Inc. Regional Municipality of Halton Exco Technologies H. Paulin & Co. Ltd. Matcor Automotive Inc. Nichirin Incorporated Sealed Air (Canada) Panasonic Canada Inc. MMSC Canada Sarnia-Lambton Economic Partnership Limited Linamar Corporation Omron Dualtec Automotive Inc. NTN Bearing Mfg Canada Co./Cie. PlasmaTreat North America Inc. Musashi Auto Parts Canada Inc. South Western Ontario Marketing Alliance Magna International Inc. Magna International Inc. QNX Software Systems Sinteris SEW Eurodrive PricewaterhouseCoopers LLP Nichirin Incorporated WindsorEssex Economic Development Matcor Automotive Inc. Martinrea International Inc. Tutelar Technologies The NARMCO Group The NARMCO Group QNX Software Systems ODG Group QNX Software Systems Nichirin Incorporated Van-Rob Inc. UltraFit Manufacturing Valiant Tool & Mold Inc. RWDI AIR Inc. Sanoh Canada Ltd. Van-Rob Inc. Omron Dualtec Automotive Inc. Vari-Form Van-Rob Inc. Sanyo Canadian Machine Works Showa Canada Inc. Vari-Form Windsor Mold Group Vari-Form TRAINING Schenker DB Logistics Sinteris Windsor Mold Group Zenn Motor Company ABB Inc. ENGINE COOLING Siemens PLM Software (CA) Ltd. Toyotetsu Canada Inc. Engineered Solutions Corp. (ESC) Bend All Solarsoft Business Systems The NARMCO Group ENGINE MANAGEMENT Exco Technologies Limited Brose Canada Stahlschmidt Cable Systems SAFETY Van-Rob Inc. Magna International Inc. Henkel Canada Corporation Denso Manufacturing Tech Con Automation ABC Group Vari-Form MIS Electronics HumberCollege Magna International Inc. The NARMCO Group Intertec Systems Wescast Industries Inc. Omron Dualtec Automotive Inc. Magna International Inc. Martinrea International Inc. Tutelar Technologies Magna International Inc. Windsor Machine & Stamping Zenn Motor Company Ontario Centres of Excellence The NARMCO Group Valiant Tool & Mold Inc. Quality Safety Systems Co. Windsor Mold Group The PIC Group Vari-Form Van-Rob Inc. Tyco Electronics Canada Ltd. Woodbine Tool & Die PlasmaTreat North America Inc. Vari-Form Woodstock Stampings Inc. RWDI AIR Inc. 45 Windsor Mold Group The Canadian Automotive Aftermarket

Source: AIA Canadian Automotive Aftermarket Demand Study (2013)

46 Launch-Point to Global Markets

Canada is the sixth largest exporter of road motor vehicles in the world • In 2013, Canada exported more than $60 billion of automotive vehicles and parts. • Trade agreements, including those recently announced and anticipated, provide further opportunities and deepen existing relationships with key global partners: • North American Free Trade Agreement (NAFTA) • Canada-European Union Comprehensive Economic and Trade Agreement (CETA) • Canada- Free Trade Agreement (CKFTA) • Trans-Pacific Partnership Agreement (TPP) • Canada-Japan Economic Partnership Agreement (CJEPA)

47 A Snapshot of Automotive R&D in Canada

Automotive R&D Expenditures $700 ● Expertise in light weighting, biomaterials and composites, (in CAD$ millions) advanced safety systems, software and the “connected $600 car”, alternative fuels and EVs, vehicle testing, and more. $500

$400 ● Annual R&D spending in the motor vehicle and parts $300 industry averaged $425 million in the last decade. $200 average $100 $425M/year $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Statistics Canada

● Focus on private and collaborative R&D.

● Five automotive OEM R&D Centres (Chrysler, Ford, GM, Honda, Toyota).

● Automotive focused R&D institutes/universities. Climatic wind tunnel at UOIT-ACE

48 Automotive Industry Associations

Automotive Parts Manufacturers Association ● original equipment (OE) suppliers to the automotive industry

Canadian Association of Mold Makers ● mold makers, designers, manufacturers, suppliers and service companies for auto and other industrial sectors

Canadian Tooling and Machining Association ● tooling and machining manufacturers for auto and other sectors

Electric Mobility Canada ● manufacturers and distributors of electric vehicles, EV components, and related organizations

Automotive Industries Association of Canada ● manufacturers, importers and distributors of automotive aftermarket products

ITS Canada ● manufacturers and distributors of intelligent transportation systems products, services and technologies

49 For more information contact us at

The Canadian Trade Commissioner Service in the UK [email protected]

http://www.tradecommissioner.gc.ca/uk Richard Colley

(Former) Vice Consul – US Automotive 52

Preconceptions

• Gas guzzlers • No interest in fuel economy or lowering CO2 emissions • Old technology • NASCAR • Big trucks

53

Reality

• Fuel economy - CAFÉ Regulations (54.5mpg by 2025) • CO2 not a consideration • Safety is a big issue • Mature market – highly competitive • Global technology • SUVs (Trucks) still biggest sellers in the US – buyers are becoming more sophisticated • Smaller cars adopted in cities

54

US Industry Overview – Oct 14

Units Total Car Production 6,066,417 Total Truck Production 8,522,251 Total NA Production 14,588,668

Domestically produced 10,928,079 Imports 2,789,908 Total US Light Vehicle Sales 13,717,987 (7,063,026) 55

US Industry – Sales by Brand to Oct 14

2,500,000

2,000,000

1,500,000

1,000,000 Light Vehicles Trucks 500,000

0 56

Vehicles by Nameplate (selected Cars)

400,000 350,000 300,000 250,000 200,000 150,000 100,000 Units 50,000 0 57

Vehicles by Nameplate (selected Trucks and SUVs)

Vehicle Units Ford F-Series 620,447 Chevrolet Silverado 429,119 Dodge Ram 359,702 Ford Escape (Kuga) 306,171 Honda CR-V 270,272 Toyota RAV4 223,593 58

Where are the opportunities

• Technology – Engineering Services – Connected Vehicle – Materials – Manufacturing Processes and Systems – Powertrain

• Motorsport

• Aftermarket – Huge fleet (passenger and commercial)

59

Tips

• Do your homework – use available support (tradeshows, introductions, business opportunities…..) • Focus on a geographical area or subsector (bite-sized chunks) • Be very clear on USPs • Be persistent • Visit the market (and go back)

60

UKTI USA Network 61

Support

• UKTI International Trade Advisors • Automotive Investment Organisation • SMMT – Pat Shaw [email protected] • UKTI Chicago – Joshua Williams [email protected]

• Events: – PRI – December in Indianapolis (Motorsport) – Autosport – January in Birmingham (Motorsport – US buyers) – SEMA/AAPEX – November in Las Vegas (Aftermarket) – SAE World Congress – March in Detroit (Automotive Engineering) – Engine Expo – October in Novi (Automotive Engineering) – Work Truck Show – March in Indianapolis (Commercial Vehicles) – COMVEC – October in Chicago (Commercial Vehicles Eng.)

Automechanika Chicago

Tara Lovelock November 27, 2014 Messe Frankfurt corporate group 2013: A global player in the trade fair sector

- Organiser of 114 trade fairs worldwide, more than half outside Germany - Own exhibition centre in Frankfurt, second largest in the world - 28 subsidiaries worldwide - 50 international Sales Partners, covering more than 150 countries

- Turnover: 543 million EURO - 78,500 exhibitors - more than 3.6 million visitors ´ - Total area: 578,000 m2

63 Automechanika Worldwide

Moscow

St. Petersburg

Frankfurt Kiev Chicago Madrid Shanghai Mexico City New Delhi Istanbul Kuala Lumpur

Johannesburg

Buenos Aires Dubai

Press conference Automechanika Frankfurt 2014 64

SMMT pavilions at Automechanika events in 2015

 ACMA Automechanika New Delhi

 Automechanika Istanbul

 Automechanika Chicago

 Automechanika Dubai

 Automechanika Shanghai

Automechanika Chicago – Making History

Show Dates: April 24 - 26, 2015

Opening Hours: 10:00am – 18:00pm

Location: McCormick Place, Chicago

Exhibition Space: 18,000 sqm gross

Exhibitors: 400 (30% International)

Attendees: 8,500 expected (10% International)

Supporters: ASA: Federal Association of the Manufacturers & Importers of Automobile Service Equipment (Germany) ZDK – German Federation for Motor Trades & Repairs

Strategic Partner in the U.S.

Advanstar Automotive Group is THE leading provider of integrated media solutions to the automotive aftermarket, with a dynamic and wide-reaching portfolio of business-to-business brands.

The US Automotive Aftermarket Industry

• Currently largest automotive market in the world with a value of more than $300 billion annually.

• Annual aftermarket growth of more than 3.4% YOY

• Increase in average age of cars on US roadways - 11.4 years

• 162,482 light vehicle repair locations in the US

• During the recession there was a 20% drop in OE repair centres which has opened new opportunities for independent repair facilities.

• Currently US Brands represent close to 50% of North American vehicle population, trend is showing that this figure will decline by nearly 13% due to increased demand for imported vehicles.

U.S. Automotive Exhibitions - Filling a void in the market

SEMA

Accessories Accessories Tuning &

NACE/CARS Repair

Collision /Body /Body Collision AUTOMECHANIKA

Market Segment Market

CHICAGO AAPEX

Repair & & Repair Maintenance Consumers Shops/Technicians Jobbers Wholesalers/Distributors Attendee Base Source: Advanstar Communications Visitor Travel Analysis – Las Vegas

• Only 10% of target visitor pool within 500 miles driving distance of Las Vegas.

• Only 14% of target market able to travel under $375 in air travel.

• Result from 5% of target market would yield a little over 3,000 shops. Visitor Travel Analysis - Chicago

• 23% of target visitor pool is within 500 mile driving distance to Chicago.

• 37% of target market able to travel under $375 in air travel.

• Chicago is a much easier location for international travel into the US Why Chicago - Location is key

The show is strategically located in Chicago, . It is an international destination, easily accessible from anywhere in the world and close to Detroit and the East Coast Market.

• Of the 160,000 individual shops in the , 23% of them are within 500 miles of Chicago.

• 50% of all repair shops are east of the Mississippi River.

• 37% of the entire target market are able to travel by flight for under $375.

74 Product Groups Visitor profile  Parts & Components  Independent Shop Owners  Electronics & Systems  Managers  Accessories & Tuning  Technicians  Repair & Maintenance  Repair Shops  IT & Management  Fleet Management  Service Station & Car Wash  Service Stations

Conference Program Truck competence

In addition to the showcase of innovative products and services, Truck Competence covers the Automechanika Chicago offers entire value chain in the truck unparalleled education and sector from truck parts and training opportunities, direct from accessories, via workshop equipment to body repairs and the field of experts, leading care. companies & manufacturers.

SMMT Pavilion

 Prime location at the front of the exhibition hall

 Fully fitted 10’ x 10’ ft stands (9sqm)

 Cost - £4,000 package to include: - hard wall construction and furniture (table, chairs, counter, literature rack), signage, lighting & electricity - listing in the official show catalogue - the services of an experienced SMMT Event Manager prior to the event, throughout the build – up and for the duration of the exhibition

For further information please speak to Pat Shaw, SMMT International Dept.

We hope to see you all in Chicago! Thanks for coming. SMMT International team wishes you a Merry Christmas and a Prosperous New Year!

Society of Motor Manufacturers and Traders Limited 71 Great Peter Street, London SW1P 2BN www.smmt.co.uk

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED