AHM Product Planning P. Montero 3/98

1. NSX- AHM Product Planning P. Montero 3/98 Dealer Visits & Product Overview

2. NSX- AHM Product Planning P. Montero 3/98 Historical Perspective All three models avoided a complex, almost brutal approach to high performance for a sophisticated approach. Lightweight... High Performance, but Civilized for street use... Less expensive than other, more complex exotic sports cars. All three models models utilized a rear midship 6-cylinder powerplant. NSX and Dino power plants were expressly developed for this application. (see below) M1’s powerplant was a heavily (Motorsports-) developed version of a sedan engine. All three models were targetted at Porsche 911. Amazingly enough, the 911 has remained a significant target for this segment. All three models were criticized for being too civilized. NSX and M1, in particular, have been accused of being “character-less”, of being “too perfect”. Dino was considered a bit of an orphan when new, with many Ferraristi preferring the traditional 12-cylinders. Some considered the Dino to be too “common”, especially since it shared it’s engine with a Fiat-branded coupe/ spyder. All three models required special production arrangements by the respective manufacturers in order to bring the cars to market. With the M1 and Dino, outside manufacturers were enlisted in a joint venture. In the case of the M1, Lamborghini was to develop and maufacture these cars, but financial and labor woes eliminated them well into the program. In the case of NSX, a showcase low-volume facility was established build these cars. For the Japanese market, the flexibility of this arrangement allows for a Custom Order program. Dino and NSX were developed in honor of engineer’s efforts that dominated F1/ F2 in their respective eras. In the Dino’s case, legend has it that Enzo Ferrari’s son, Dino, had a major part in the development of the F1/F2-dominating V6 engines of the ‘50’s and ‘60’s. In the NSX’ case, not only were F1 engineers utilized in the development of this car, but famed F1 driver Ayrton Senna tested/ provided deveopment input. The M1 was developed for Motorsports, as the adage goes, “Racing improves the breed.” Major considerations were meeting the 400 unit FIA homologation requirement. M1 was not succeeded by a second generation car. M-Technik applied technologies used on M1 to limited production, high performance versions of BMW road cars and also developed the powertrain for the ultra-exotic McLaren F1 GT car. Like the M1, NSX is meant as the technological standard-bearer and image leader of it’s corporate model line-up. Dino was the entry-level model for it’s corporate model line-up. Less emphasis was placed on this model’s performance and technological leadership. The Dino was succeeded by the Dino 308GT4, a rear midship 4-seater, featuring Ferrari’s first road-going V8 and by the V8-powered Ferrari-badged 308GTB. The 308GTB echoed many of the design themes of the 206/246GT. ?

3. Historical Perspective As a storied brand, Ferrari quite possibly has no equal. This image is cemented by an incredible motorsports history. Much of this image is linked to the legendary Ferrari 12-cylinder engine. However, a significant amount of Ferrari’s successes, on the track and off, have been with 6- and 8-cylinder cars, including the Dino V6 (named after Enzo’s then-only son, Dino, who died at the age of 24 in 1956). Throughout Enzo’s history, he tried at various times to build smaller-engined grand turismos aimed at potential competitors such as Alfa Romeo and Porsche. Such cars include the road-going Dinos and, before that, the ASA 1000GT. In neither case were the products identified as Ferraris but, nonetheless, remained true to the Ferrari image. 1970 1980 1990 1974 365 GT4BB 4.4L DOHC Flat-12 1985 Testarossa 5.0L DOHC Flat-12 1968 365 GTB4 Daytona 4.4L DOHC V12 1968 365 GTB4 Daytona 4.4L DOHC V12 1987 328GTS 3.2L DOHC V8 1973 308GT4 2.9L DOHC V8 Never badged as a “Ferrari”, the Dino 206/246GT was, nonetheless, close to Enzo Ferrari’s heart. These cars were built in honor of Dino Ferrari, Enzo’s only acknowledged son, who (legend has it) was vitally involved in the development of the F1/ F2- dominating DOHC V6 engine of the ‘50’s and ‘60’s. A version of this engine powered the 206/246GT. The two seat, V6-powered Dino 246GT was replaced in late 1973 by the four seat (but still mid-engined) Dino 308GT4. This was the first road-going V8 for Ferrari, as well as one of the very few non-Pininfarina Ferraris. There were still no Ferrari emblems on this car; Ferrari badges did not appear on it until the launch of the 308GTB. In 1975, the 308GTB was shown at Paris, starting one of Ferrari’s longer product runs (through the 1990 introduction of the 348tb). This two seater was the spiritual successor of the 246GT, even mimicking the Dino’s widely praised lines. By now, Ferrari badges were on this “entry-level Ferrari” and “Dino” nomenclature was dropped.

4. NSX- AHM Product Planning P. Montero 3/98 Historical Perspective BMW is a company whose “Ultimate Driving Machine” image is unquestioned. It is difficult to imagine a company with a stronger and more consistent image than BMW. However, for most of it’s history, BMW has struggled. During the early fifties, BMW was almost exclusively a six- and eight-cylinder company. At the time, it’s cars were aimed at competitors such as Mercedes Benz (itself struggling in the U.S. market), Bentley (with the 1956 503), and Jaguar-Daimler. This path was a failure and BMW was kept afloat, essentially, by the success it almost coincidentally enjoyed selling the Isetta “bubblecar” (built under license from an Italian company, ISO). Eventually, BMW stopped building V8s, focusing on four- / six-cylinder powered sedans best described as un-exceptional but fun to drive. As BMW became healthier in the late ‘60’s/ early ‘70’s, it’s line-up expanded upward. In the late ‘70’s/ early ‘80’s, BMW came to represent the “Yuppie” market. It was led in the U.S. by such non-enthusiast products as the 320i (a disappointment to 2002 enthusiasts), the low revving 528e and BMW’s only diesel, the 524td. By the ‘late 80’s, partly in response to the ‘87 stock crash and partly in response to internal conflicts, BMW had made a commitment towards a performance positioning, which ultimately led to M-series cars (spawned by the M-1) and development of a V8/V12 modular engine family. 1950 1970 1990 1979-80 M1 3.5L DOHC I-6 1956 502 3.2L V8 1987 M6 3.5L DOHC I-6 1988 M5 3.5L DOHC I-6 1988 M3 2.3L DOHC I-4 1991 M5 3.5L DOHC I-6 1995 M3 3.0L DOHC I-6 1991 850i 5.0L V12 Dropped 1959 CHASING MERCEDES 1962 3200CS 3.2L V8 RE-ESTABLISH PERFORMANCE 1956 503 3.2L V8 (1993) 4.0LV8 replaces I-6 on 7-series 1977 630CSI 3.0L I-6 1972 3.0CS 3.0L I-6 1965 1977 733i 3.2L I-6 (1980) Turbo I-6 in European 7-series V8 production continued until 1965, when BMW turned it’s focus to compact sedans and coupes. 1988 735i 3.5L I-6 5.0L V12 (1994) V8s added to the 5-series 1954 502 2.6L V8 The first BMW V8 and the first post-war German V8 Also available as the 501, with a straight-six. 1965 2000CS 2.0L I-6 1989 535i 3.5L I-6 1992 318i 1.8L I-4 2.5L L-6 1982 528e 2.7L I-6 1974 530i 3.0L I-6 1968 Bavaria 2.8L I-6 (1984) I-6 added to 3-series 1954 Isetta 300cc single 1983 318i 1.8L I-4 1976 320i 1.8L I-4 1962 1500 1.5L I-4 1988 Z1 2.5L I-6 1962 1500 1.5L I-4 GROWTH IN THE U.S. Dropped 1962 REGAINING PROFITABILITY

5. NSX- AHM Product Planning P. Montero 3/98 Previous Motorsports- developed BMW models Historical Perspective • Grew out of BMW Motorsport, which was established in 1972. • Eventually, Motorsport started “tuning” street cars. • Currently, MGmbh ecompasses five areas of operation, three locations including a test center at the Nurburgring. • Divisions include: Motorsport International, M Production Cars, Individual Special Orders, Driver Training, and Systemtechnik(Co-operative Ventures) • Number of employees: 500 • All motorsports expenses incurred must be paid off by sales of M-badged and M-tuned street cars. • Currently led by Karl-Heinz Kalbfell, whose directive is to “...assist the most demanding individualists in implementing their automotive dreams, today and in the future, without coming into conflict with contemporary requirements.” • Automotive Engineering resources are led by engine designer Paul Rosche, who states,”What inspires me is the desire to reconcile mutually conflicting ob- jectives: High output together with lower emissions and fuel consumption.” 1980 1990 1998 M5 4.4L DOHC V8 1987 M6 3.5L DOHC I-6 1991 M5 3.5L DOHC I-6 1988 M5 3.5L DOHC I-6 1995 M3 3.0L DOHC I-6 1988 M3 2.3L DOHC I-4

6. Historical Perspective Though Maserati built numerous eight cylinder (and larger, including a 1929 V16) racers, the company established itself in the post-WWII years in motorsports, largely with straight six-powered racers (such as the “Birdcage”). On the road, though Maserati built a limited number of 5000GT V-8 roadcars in the early ‘60’s and the V-8 powered Quattroporte sedans, it relied heavily on straight six GTs such as the A6G, 3500GT, Sebring, and Mistral.In an attempt by Maserati to more-directly compete against the exotic 12-cylinder Grand Turismos from Ferrari and the upstart Lamborghini, the stated replacement for the Mistral (the 1968 Ghibli) relied on a V8. Ailing in 1968, Maserati was “rescued” by Citroen, with which a new V6 was developed to be installed in the Citroen SM and all-new mid-engined Merak (little sister to the mid-engined V8-powered Bora). Ultimately, Citroen had to sell-off Maserati and be rescued, itself, by Peugeot. Maserati was liquidated, restructured and introduced a less-expensive line of twin-turbo, small-displacement V6-powered sedans and convertibles. This reconstituted Maserati continued to struggle, even after V8-powered high-performance variants on the Biturbo were introduced (such as the Shamal, Karif, and Ghibli). Latest news centers around Ferrari’s acquisition of control of this great make. 1960 1970 1980 (1984)

7. Historical Perspective Lamborghini was an upstart tractor manufacturer bent on putting the exotic car market on it’s head. Towards that end, the line-up (at least at the beginning) was dominated by V12 engines. In fact, other than the 1967 Marzal showcar (which was powered by 1/2 of the Miura’s V12 mounted in a modified Miura platform), the only Lamborghinis not powered by a V12 remain the Urraco/ Silhouette/ Jalpa series of entry level cars. Like the Marzal (and the Dino 308GT4), the Urraco was a mid-engined four-seater targetted at the Porsche 911. It’s engines ranged from the 2.0L DOHC V8 (Italian market only) to the 2.5L and 3.0L. With the Jalpa, displacement grew to 3.5L. Since the end of Jalpa production in 1989, there have been persistent rumors of a V10-powered “entry level” Lamborghini. One rumor is centered around the ItalDesign “Cala” showcar. 1970 1967 P400 Miura 4.0L V12 1973 P400 Countach 4.0L V12 1968 400GT Espada 4.0L V12 Dropped 1978 1967 Marzal Prototype (6-cyl.) 1974 P250 Urraco 2.5L V8

8. Historical Perspective Jaguar, like Aston Martin made it’s name primarily in the early post-WWII years with the ground-breaking XK120 (120 representing the top speed). Even in the ‘20’s and ‘30’s, before the War, Jaguar (then known as the Swallow Coachbuilding Co. and, later, as SS Cars Ltd.) had developed into a producer of notable sports cars. Recognized as first among these, the SS100 of 1936 was powered by straight sixes. Though, of the two engines used, one was sourced from the Standard Motorcar Co. Ltd., the second was an SS Cars- developed 3.5L six offering higher performance. The Jaguar name was used for the first time shortly thereafter. Until 1971, Jaguar managed to maintain it’s image as one of the premier sports GT producers in the world with a line-up that offered only six cylinder engines. D-types managed to win LeMans (against cars such as the V12 Testa Rossas) in 1955, 1956, and 1957. In fact, there still exists a large contingent of Jaguar enthusiasts that consider the V12 Jaguars inferior to the I-6 cars. Though Jaguar struggled with a drifting direction throughout most of the ‘70’s and ‘80’s, with the re-introduction of the XK-series, Jaguar has made a concerted effort to return to it’s heritage. This time, with V8-power. 1950 1970 1990 1976 XJ-S 5.3L OHC V12 1961 XKE 3.8L DOHC I-6 1971 XKE 5.3L OHC V12 For many, a symbol of Jaguar’s lack of direction and near-demise 1997 XK8 4.0L DOHC V8 First JaguarV8. Jaguar, recently, has introduced a high performance supercharged 4.0L V8, currently only in the XJ-series sedan (XJ-R) 1957 XK-SS 3.4L DOHC I-6 1948 XK120 3.4L DOHC I-6 Fastest production car in the world. Pre- XKE, street-legal D-type derivative.

9. Historical Perspective Though it existed before 1947, this company’s history effectively begins with David Brown’s purchase of Aston Martin and Lagonda (which brought with it a newly developed DOHC straight six engine). From that point until the late ‘60’s, all Aston Martin’s were six-cylinder cars (including the LeMans-winning DBR models). In 1967, the all-new DBS was introduced with the tried and true 4.0L straight six. An all-new 5.3L DOHC V8 was introduced to the DBS in 1969, with the six-cylinder finally dying in 1973. The V8 continued until the introduction of the DB7 in 1993, with an all-new supercharged 4.0L straight six engine. In addition, a V12 was shown in a Ghia-styled Lagonda “Vignale” concept car for, presumably, future application. 1960 1970 1980 1990 Lagonda Vignale V12 Concept 1969 DBS V8 5.3L DOHC V-8 1990 Virage 5.3L DOHC V-8 1965 DB6 4.0L DOHC I-6 1967 DBS 4.0L DOHC I-6 1993 DB7 3.2L Supercharged DOHC I-6