The Future of the Automotive Industry

Extract of the presentation : The Automotive Industry in 2020?

September 29, 2008, Luxembourg Pierre Mangers, Advisory Director

Quo Vadis Automotive? Cui Bono? PricewaterhouseCoopers

September 2008

Shaping forces at work

The car industry will be shaped by market growth patterns, innovations, regulatory constraints and by the impact of related industries
1 2

Patterns of growth
Impact on the automotive industry and supply chain

Technology and innovation

Related industries
Quo Vadis Automotive? Cui Bono? PricewaterhouseCoopers

Legal and regulatory context

September 2008 Slide 2

Automotive industry in 2020?

China is expected to lead the race due to its giant local market and its still very competitive manufacturing footprint for exports
Ranking of top five producing car countries
(in million units)

2007

18.9

2020

13 10.5 X 1.6 10.8 8.9 6.2 Max-Min = 7.5 4.1 South Korea China Japan USA Germany India Max-Min = 12 7.3

11.6

7.0

Japan
Countries :

USA
Emerging

China

Germany

Traditional

The gap between N1 and N5 is expected to almost double by 2020, with a predominance of China on the world scene
Sources: VDA, OICA, PwC Forecasting Model

Quo Vadis Automotive? Cui Bono? PricewaterhouseCoopers

September 2008 Slide 3

Luxembourg : a real laboratory for next generation cars

The bonus question arrives now: What is in it for Luxembourg?

Market test criteria Hybrid car testing market
t l i fe of c a s pa n rs (~ 4 year s)
September 2008 Slide 4

Luxembourg is in a favourable position to become the most representative market test platform for next generation cars
Quo Vadis Automotive? Cui Bono? PricewaterhouseCoopers

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To receive the full version of the presentation, please feel free to fix a meeting date with our strategy & operations head:
Pierre Mangers, Advisory Director Tel.: + 352 49 48 48 2194 pierre.mangers@lu.pwc.com http://www.pwc.com/lu/eng/about/ind/automotive.html

2008 PricewaterhouseCoopers. All Quo Vadis Automotive? Cui rights reserved. PricewaterhouseCoopers refers to the network Bono? of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent PricewaterhouseCoopersa trademark of PricewaterhouseCoopers LLP (US). legal entity. *connectedthinking is

September 2008

PwC Automotive team in Luxembourg

Philippe Pierard, Automotive Leader Pierre Mangers, Laurence Demelenne, Alexandre Jaumotte, Karine Bellony, Magalie Cormier, Yoann Sapanel, Christophe Pompe http://www.pwc.com/lu/eng/about/ind/automotive.html

Key publications

Quo Vadis Automotive? Cui Bono? PricewaterhouseCoopers

September 2008