High Value Metal Replacement in Automotive Powertrain Applications

1. High Value Metal Replacement in Automotive Powertrain Applications • New Opportunities with Thermosets Under the Hood Jim Cederstrom Automotive Business Development Manager Bulk Molding Compounds, Inc Sept 16, 2009 SPE – Automotive Composites Conference & Exhibition

2. Past Drivers for Plastics (Vehicle Weight Gain) Market Share (%) Lbs *Source: U.S. Environmental Protection Agency, Light-Duty Automotive Technology and Fuel Economy Trends: 1975 Through 2008

3. Past Drivers for Plastics (Vehicle Weight Gain) • Consumer Preference • High displacement engines (Fun to Drive) • 4 wheel drives • Advanced climate control systems • NVH improvements • Infotainment systems • Advanced Safety Systems • Anti-lock brakes, Stability/Traction Control, Airbags • Emissions Systems • Fed Tier II and CARB LEV requirements • Negative impact on cost/weight/CAFE

4. Plastics Growth in Vehicles(Weight reduction) • 331 lbs of Plastics/Composites • More than 30% increase • Average 150 lbs vehicle weight reduction • UTH last to grow • 250 lbs of Plastics/Composites *Source: American Chemistry Council

5. Typical Application Requirements • Temperature Resistance: -40C to 130C • Chemical Resistance: • Coolant, Brake Fluid, Fuels, Solvents, NaCl, Humidity, Hot Engine Oil • Vibration/Impact Resistant • Structural Rigidity • Creep Resistance • Long Term Dimensional Stability

6. Progression of Plastics Under the Hood PP, PA66, PBT BMC, SMC, PA66, PA6, PA66 PPA, PPS, PA4,6, BMC, Phenolic 18 lbs 9 lbs Lbs of Plastic 2005 1995 1985

7. What’s Next for Composites Under the Hood?(Market Drivers) RESULT MARKET DRIVERS • Dramatically increased emissions and fuel economy regulations • US CAFE - 35 mpg • US Emissions Fed Tier 2 and CARB LEVII (CO2, NOx) • EURO 5 and EURO 6 Emissions • Rising fuel prices • Extended warranties • Consumer sentiment towards greener vehicles • Drive toward energy independence • Vehicle Downsizing • Engine Downsizing • More Efficient Powertrains • Complex Powertrain Controls • Alternative Fuels/Energy • More extreme requirements • Renewed and aggressive focus on lightweight materials and cost reductions

8. New and more demanding applications RESULT TECHNOLGY TRENDS • More complex systems • Tighter packaging space • Higher heat • Higher pressures • More corrosive fluids • Added Cost • “Higher Performance Polymers” • Existing composite apps • New hydraulic/mechatronic systems • GDI and diesel engines • Turbo/super charging • Highly active intake systems • Electronically controlled valve actuation/timing • Drive by wire systems • Cylinder deactivation • EGR • Alternative/bio fuels • Engine start/stop systems • Hybrid Electric Powertrains

9. Future Growth in Plastics Under the Hood(New Requirements for PT Composites) • Higher Temperature Resistance: -40C to 150C (>200C) • Mechanical Strength and Impact Resistance Across a Wider Range of Temperatures • Chemical Resistance (New more aggressive fluids): • Long Life Engine Coolants: OAT, HOAT • Alternative fuels: Flex fuels, Diesel Fuel, BioDiesel Fuels • EGR gases • Long Term Dimensional Stability • Tighter tolerance requirements • Across wider temperature range • Creep Resistance (high temp) • Longer Warranty Periods

10. Bulk Molding Compound (BMC) Composite Materials • Long history of BMC composites in demanding automotive applications • More than 90% of all automotive headlamp reflectors are produced in BMC • Very high temperature resistance, high precision parts, low system cost.

11. BMC Composite Material Composition (Wide Range of Materials/Properties) 20% 50% 25%

12. Composite Cost Comparison On a cost / unit volume basis thermosets offer significantly higher value compared to many High Performance Thermoplastics.

13. PPA, PA4,6 LCP, PEEK PE-BMC VE-BMC PPS PA66, 6, PBT, PET Phenolic PEI PP BMC vs. High Performance Thermoplastics PERFORMANCE Thermosets offer a much higher Performance vs. Price ratio PRICE

14. BMC vs. High Performance Materials

15. BMC Precision Net Shape Molding BMC composites provide the tightest tolerance and dimensional stability over any other high performance composite material

16. Key Factors Driving Dimensional Improvements in BMC • Normally lower shrinkage BMC’s result in higher CTLE, and less compressive creep resistance • Optimization of the low profile additives, resin cross-linking density, filler system, and fiber have resulted in a new BMC composite systems that provide the maximum creep resistance, lowest possible CTLE and smallest possible molded part tolerances • These breakthroughs can now being translated in to various high precision powertrain applications. Pump Housings Intake Systems Transmission Systems

17. BMC Dimensional Change/Fluid Exposure Dimensional Change (%) After Exposure to Various Automotive Fluids (2000 hours) • Part dimensions can also be affected by the absorption of various automotive fluids. • BMC demonstrate very low dimensional change to most automotive fluids.

18. BMC Electronic Throttle Valves • BMC Dimension X Polyester Composite • Cost savings: 20 - 35% • Weight savings: 25-30% (≈ 0.5lb) • Zero mold shrinkage • Tight/repeatable tolerances • +0.03/-0.06mm, 90mm bore • +/- 0.015 MM ,20mm bore • Reduced manifold dynamic loading • Improved icing / no heating • Possible electric motor down sizing • Improves safety during crash

19. BMC in Engine Oil Applications(Engine Sealing) • BMC 665, 675, 695 • Excellent Track Record • >60 MM parts w/o failure • Strong/Rigid Parts at High Temps • Excellent Flatness/Tolerances • Excellent Creep Resistance Engine front/timing covers Pressurized Engine Lubrication Circuit

20. BMC Thermal Mechanical Performance BMC composites offer very high glass transition temperatures and exceptional stiffness enabling metal replacement in dimensionally critical applications with constant mechanical loading under long term high temperature exposure

21. Rigidity at Elevated Temperature (BMC vs. Engineering Thermoplastics)

22. BMC High Pressure Engine Oil Applications(Oil Pump and Filter Housings) • BMC TDV584, BMC 665, BMC 695 • Piece price savings: 30-50% • Weight savings: 25-30% • 0.25 -1 lb • Strong/rigid material at high temps (150°C) • Withstands high oil pressure/cycling • > 15bar • Low deflection • Self lubricating formulation for low wear • Tight/repeatable print tolerances • Very low creep/CTE

23. BMC Property Retention vs. Fluid Aging 150°C 2000hr Engine Oil Exposure 150°C 2000hr ATF Exposure 120°C 2000hr Long Life Coolant Exposure

24. BMC Pump Applications(Electric Pump Housings) BMC TDV584, BMC 665, BMC 695 • Electric engine oil pumps • Electric auxiliary CVT pumps • Electric/auxiliary coolant pumps • ICE thermal efficiency control • Charge-air cooling • Battery cooling for electric vehicles • Electronics cooling for electric vehicles • Vacuum pumps for braking • Electric fuel pump inlet/outlet

25. BMC High Temperature Exposure(Engine Covers/Heat Shields) • Higher engine compartment temps >150°C • BMC low cost/high temp solution for covers/heat shields • Continuous use temps > 220°C • Low S.G. 1.5-1.6 • Class A surface • Excellent flatness • Low thermal conductivity • 0.5 W/mK • Easily painted, colored, coated • Inherently flame retardant 200°C 2000hr Air Exposure

26. BMC Alternative Powertrain Systems (Hydrogen Fuel Cell) • Low cost/high performance material solution for proton exchange membrane (PEM) “Bi-Polar” plates • Excellent balance of conductivity, moldability and physical properties • Excellent resistance to aggressive fuel cell stack environment • Very flat and dimensionally stable plates • Very thin plates to 1mm (web thickness as low as 0.3mm) • Innovative conductive adhesive/sealant for anode-cathode bonding – 50% stack height reduction • Successful Automotive OEM Pilot Programs

27. BMC Alternative Powertrain Systems (Electric Vehicles) • Long history high voltage applications • High Dielectric Strengths (>15 kv/mm) • High UL Relative Temp. Index (RTI) rating (160˚C) • High volume resistivity retention with humidity exposure (1E+14 Ωcm) • High Comparative Tracking Index to prevent carbon tracking (>600 Volts ) • Inherently flame resistant (UL-94-HB/V0) • Low CTE – Excellent for overmolding and insulating metal components

28. BMC Alternative Powertrain Systems (Hybrid Electric Vehicles) • Power distribution module boxes • Inverter/converter boxes/frames • Battery pack frames • Thermal management system components • Overmolded electrical lead frames/bus bars • High voltage connectors • Low cost/high temp solution for heat shielding/thermal barriers

29. Summary • Molding parts to the correct dimensions, with very tight tolerances, and a wide processing window, has never been easier than with BMC. • BMC composites maintain tighter print tolerances out of mold and at elevated temperatures as compared to higher cost high performance thermoplastics...and are highly suited for metal replacement in powertrain applications • BMC thermosets offer the most cost-effective performance at elevated temperatures under load, pressure, and chemical exposure in automotive applications compared to metal and engineered thermoplastics. • BMC materials are suited for metal replacement in hybrid vehicle powertrains, from highly conductive solutions to high dielectrics