Stainless Steel in Exhaust Systems

13th International Stainless & Special Steel Submit

Angel Ramirez
September 2nd, 2014
Faurecia: World’s sixth largest automotive supplier

patents
34 countries 500 filed in 2012

18 billion in sales* 5,800 engineers

97,500 employees 30 R&D centers

programs in
320 sites 485 development

*including €13.7 billion of product sales

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 2
Faurecia well positioned on key technology trends

FUEL EFFICIENCY &

ENVIRONMENTAL PERFORMANCE LIFE ON BOARD
CO2 EMISSIONS REDUCTION

 Emissions Control Technologies  Faurecia can offer weight reductions of  Decoration and premium quality
 Nox and particulate reduction for light up to 100 kg per vehicle, representing a  Human-Machine Interface (HMI)
and commercial vehicles reduction of 10g of CO2/km
 Comfort and well-being
 Renewable materials  Energy recovery
 Composite systems

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 3
Faurecia supplies 1 in 3 vehicles worldwide
Recent examples of Faurecia “on board”

Ford Ecosport
 Complete exhaust system
 Instrument panel, door
panels, center console

Mercedes-Benz S-Class
 Complete exhaust system
(standard and AMG versions) Peugeot 308
 Instrument panel, door panels,  Seat frames, tracks and mechanisms, foams and seat
center console covers, complete seat assembly
 Front and rear bumpers, rocker panel  Emissions control systems (Selective Catalytic Reduction)
 Instrument panel, door panels (natural fiber-based injected
material), center console, decorative & acoustic
components, cross car beam
 Rear bumper
Nissan Qashqai
 Front seat frame, seat tracks
and recliners, power height
adjustment mechanism
 Emissions control systems
 Acoustic components

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 4
Faurecia Emissions Control Technologies

#1 worldwide | Widest geographical presence | Large portfolio of products and

technologies | Global program management expertise

€6.4bn/€3.4bn
Total sales/ product sales
2013

21,100
employees Complete exhaust lines Commercial vehicles

79 employees
sites

7 Manifolds Diesel particulate filter

R&D centers

25
countries

Catalytic converters Mufflers

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 5
Faurecia Emissions Control Technologies

Plants R&D centers

EUROPE

33
2

NORTH AMERICA
ASIA
15
1 22
3
SOUTH AMERICA

9
1

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 6 RoW not included
Faurecia Emissions Control Technologies

European Footprint

Preston
Bremen
Fradley Netherlands Germany
Roermond Finnentrop
UK Leipzig
Trabitz Bakov
Mlada
Heilbronn Zilina
Messei Pisek
Nanterre
Aulnay Herrenberg TrnavaSlovakia
Beaulieu Ottmars- Augsburg
Poissy Jaszarokszallas
heim
Bavans Hungaria
Romania Russia
France Italy
Craiova
Turin

Vigo Pamplona Terni

Spain Golcük Turkey

Braganca Barcelona
Portugal Turkey
Madrid
Valencia

Plant
JIT
R&D center
Customer Office

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 7
Faurecia Emissions Control Technologies

Emissions Control

Local Emissions Solutions developed

by a Global Expert Network
CAGO TOOL Manifold stress simulation NH3 distribution & velocity analysis

Complete Emissions Controls

management through wide range of
key products
Tubular Maniverter SCR Compact Bluebox Fuel Vaporizer LP EGR valves

Innovative ideas for 2020 and beyond

GPF (1) Advanced De-NOx ASDS Thermal & Acoustic insulation

(1) Gasoline Particulate Filter

Solutions for all engines to meet the most severe emissions legislation including
Euro 6.2 (RDE) & USA LEV III/Tier III
13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 8
Faurecia Emissions Control Technologies

Energy Recovery

Proven know-how in designing the

exhaust system architecture
to optimize the performance of the
heat recovery system Exhaust integration expertise Thermal system modeling Rankine & TEG test bench

“Heat to Heat” technologies to Up to 6% on

hybrids - cold
address cold start and improve
Improved
thermal system efficiency passenger
EHRM (1) – Ford C-Max Hybrid Compact EHRS comfort

Up to 1.5
“Heat to Power” technologies to kW can be
extracted @
generate power out of exhaust heat 120km/h
Rankine System TEG (2) Rankine test bench results

(1) Exhaust Heat Recovery Manifold – (2) Thermo Electric Generator

Proven capability in recovering energy from the exhaust line

to improve vehicle fuel consumption and lower CO2 emissions
13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 9
Stainless Steel Grades used by FECT

HOT END  Higher Temperature (5 grades)

High-temperature oxidation and corrosion

High-temperature structural effects

Localized external corrosion

Cost
Down sized / Down Down Pipes
fabricated Manifolds Pipes Cat. CC + DPF 444M…
engine converters (D)
manifolds (G)
441
Temp

1000°C 950°C 900°C 820°C 429

444M… 441 + 429 429 + 409 Ferritic
309 Austenitic
409
13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 10
Stainless Steel Grades used by FECT

COLD END  Main materials available

High-temperature structural effects

Localized external corrosion

Temperature-enhanced and salt-corrosion

Catalytic-converter corrosion effects

Internal condensate corrosion

Corrosion
resistance Cost

304 304
436 436
432,441 432 441
439 409 Al 439
409 409Al recommended for
cosmetic external corrosion 409
Formability

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 11
FECT Flat CR Stainless Steel 2014 grade split

304 Other Aus.

(8 %) (1%)
Other Ferr.
(4 %)

409
441 (39 %)
(15 %)

439 409AL
(21 %) (12 %)

Ferritic grades represent > 90%

441 & 439 increase in Asia & NAO, 304 challenged on Cosmetic corrosion
13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 12
FECT Demand Flat CR Stainless Steel in 2014: 435Kt
+6.6% vs. 2013. Forecast 2018 -> 515Kt

Russia
Europe 4 200 t
104 000 t S. Korea
North America 20 500 t
177 000 t
China
India 70 900 t
6 400 t
Thailand
10 700 t

Mercosur S. Africa
29 000 t 12 500 t

Includes Managed Direct, Tier2 & tubes.

FECT also buys 7.5Kt Welding Wire & 7Kt Carbon Alu

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 13
FECT Flat CR Stainless Steel grade split in Europe
2014 104 Kt*

1.4828 / 309 1.4541 / 321

(2 %) (0.8 %)
1.4301 / 304 1.4512 / 409
(24 %) (24 %)

1.4513 / 436
(0.3 %) 1.4510 / 439
(17 %)

1.4509 / 441
(32 %)

27% Austenitic grades used due to Premiun OEM’s requirement.

*>20Kt, not included here, comes into components from outside Europe!
13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 14
Light and Commercial Vehicle market drivers for Exhaust Systems

A market that presents a favorable evolution

Emissions legislations that will influence the market for a long period

CO2 and fuel economy legislations that will keep on evolving …

… will redesign the powertrain landscape

Globalization and standardization that are becoming the rule

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 15
A market that presents a favorable evolution

LVE vehicles Global CVE vehicles (On and Off-Highway Emissionized)

Volume growth (million units) Volume growth (million units)

CAGR 3.2 %
CAGR 10 %
102.6 6.4 Rest of the world
Rest of the world
Japan & S. Korea
85.1 Japan & S. Korea
19.20
Brazil, India, Russia Brazil, India, Russia

3.6
China
China

NAFTA
NAFTA

Europe Europe
19.20 23.15

23.15
2014 2020 2014 2020

LVE production (<3.5T) is estimated CVE production (75HP< & 3.5T<) is estimated
to grow up to 102.7 million units by 2020 to grow up to 6.4 million units by 2020

Market growth will be driven by China, India and Latin America.

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 16
Automotive LVE market evolution (2014-2020)

160.000
LVE vehicles Worldwide
Thousand unit

140.000 2014-2020 CAGR 3.2 %

Volume growth (Thousand units)
120.000 100.959 102.577
93.365 96.539 99.295
100.000 85.122 89.757
+3.4% +2.9% +1.7% +1.6%
80.000 +5.4% +4.0%
60.000
40.000
20.000
-
2014 2015 2016 2017 2018 2019 2020

30.000 LVE vehicles Europe

CAGR 2.5 % 1.800 LVE vehicles Turkey CAGR 3.0 %
w/o. Russia
25.000 1.600
20.163 20.268 20.276 1.374
18.829 19.676 1.400 1.233 1.234 1.204 1.233
20.000 17.529 18.240 1.153 1.190
+2.5% +0.5% +0.0% 1.200 +11.4%
+3.2% +4.5% +3.2% +3.6% +0.1% -2.4% +2.4%
+4.1% 1.000
15.000
800
10.000 600
5.000 400
200
- -
2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

Smooth market growth after recovery from the crisis.

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 17
Emissions legislations that will influence the market for a long
period

2015 2018 2020 2025

Euro 5
Euro 6.1/6.b
Euro 6.2/6.c Euro 7

Euro 4 Euro 5 Euro? 6.2/6.c ?

Federal regulations Tier 2 Tier 3

California + 13 states LEV II LEV III LEV IV ?

Nationwide gasoline CN 4 CN 5

Bejing, Shanghai,
Beijing 5 Beijing 6.2
Guangzhou
?
Nationwide Euro 3 Euro 4
Delhi + Big cities Euro 4+OBD -11 cities Euro 4+OBD -50 cities

Euro 5

Evolution of legislation for LVE

New after-treatment devices, like Gasoline Particulate Filter, will be required.

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 18
Emissions legislations that will influence the market for a long
period

Evolution of legislation for On-highway CVE

Selective Catalyst Reduction technology will become a worlwide solution.

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 19
CO2 and fuel economy legislations that will keep on evolving …

Evolution of legislation for CO2 from passenger cars

Lightweight technologies and higly efficient powertrains will become mandatory.

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 20
… will redesign the powertrain landscape

Evolution of Number of Cylinder and Turbocharger

Millions

100 3 3
7
3 7
3 3 8 L3 engines to grow from 5.9Mio in
80 8
8 36
30
34
2013 to 16Mio in 2020.
60 21 24

40
TC engines to grow from 24.5Mio in
39 39
42 42
43
20
3
5 7 2013 to 46.5Mio in 2020.
1 2 7 10 10
0 5 6
2013 2014 2016 2018 2020
L2 & L3 NA L2 & L3 Turbo L4 NA L4 Turbo V6 V8

Forecasted penetration rate of hybrid powertrain

By 2025, Hybrid powertrains should

45%
40% 40% represent more than 30% of market
20% share.
15% 10%

2020 2025 2020 2025 2020 2025

Engines will get smaller and more electrified.

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 21
Globalization and standardization that are becoming the rule

LVE

Pick-Up
Source : Volkswagen Group

Worldwide footprint is key to support OEMs development

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 22
Some hightlights to remember

Faurecia Material trend

 FECT strategic no. 1 position  High Temperature ferritic grades globally
 Technology leadership - Innovation  Lower cost Ferritic vs. Austenitic
 435Kt Flat CR 2014 Global purchase  Thickness reduction to 0.8 & 0.6mm

Global Market Europe

 Automotive market favorable evolution  Automotive market still stable in Europe
 Emissions regulations rollout  104Kt CR managed purchases for Europe
 Globalization with mega-global platforms  Opportunity or risk >20Kt from Outside EU

Global Competitiveness key to maintain/growth volumes locally

13th International & Special Steel Submit – Istanbul - Sept. 2nd 2014 23