Heavy Duty Electronics & MechatronicsGlobal Market Perspective

© 2009 WABCO Holdings Inc. All rights reserved.

Joe KripliGlobal Business Development WABCO Reman Solutions

APRA Heavy Duty Remanufacturing Group SummitLas Vegas, Nevada - January 21, 2013

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Sales of $2.8 BILLION in 2011

A GLOBAL TECHNOLOGY LEADER serving the commercial vehicle industry, specializing in Air Braking and related systems

Over 10,000 EMPLOYEES in 31 countries

18 MANUFACTURING LOCATIONS in 10 countries

Listed on NYSE with the stock symbol WBC

ABOUT WABCO

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MANUFACTURING & REMAN LOCATIONS

Rochester Hills

Stanowice

Jinan

Global Presence

MexicoSan Luis Potosi*

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MANUFACTURING & REMAN LOCATIONS

Rochester Hills

Stanowice

Jinan

Global Presence

MexicoSan Luis Potosi*

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TRUCK AND TRAILER PRODUCTS TRUCK

Electronic Control UnitsAdaptive Cruise ControlEBS Proportional Relay ValvePedal Unit with EBS Brake Signal TransmitterABS Modulator ValveAutomatic Temperature ControlElectronically Controlled Air SuspensionShock AbsorberFront Air Disc BrakeSteering Angle SensorTransmission AutomationClutch ControlRetarder ControlAir CompressorRear Air Disc Brake(Electronic-) Air Processing Unit ReservoirEBS Trailer Control ValveElectronic Stability Control ModuleEBS Axle Modulator

TRUCK AND TRAILERBrake ChamberTristop® CylinderAir BellowIntegrated Vehicle Tire Monitoring ECUIVTM Wheel ModuleDouble Diaphragm Spring Brake

TRAILERTrailer Central ElectronicSmartBoardTrailer Electronic Braking SystemElectronically Controlled Air SuspensionTrailer Air Disc Brake

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1011121314151617181920

21222324

2526

2728293031

EBS: Electronic Braking System

ABS: Anti-Lock Braking System

ECU: Electronic Control Unit

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BUS PRODUCTSEBS Brake Signal TransmitterEBS Proportional Relay ValveABS Solenoid Modular ValveElectronic Stability Control UnitEBS Backup ValveEBS Axle ModulatorAdaptive Cruise Control ModuleHand Brake ValveIVTM DisplayIVTM Wheel ModuleIVTM Electronic Control UnitAutomatic Traction Control Water ValveATC Operating ConsoleATC SubstationElectronic Control Units EBS, CVCECAS Electronic Control Unit ECAS Solenoid valveECAS Level SensorAir Disc BrakeBrake ChamberTristop Cylinder(Electronic) Air Processing UnitCompressorMTS SensorMTS Door CylinderMTS Electronic Control UnitMTS Door Valve

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1011121314151617181920

EBS: Electronic Braking System

ABS: Anti-Lock Braking System

CVC: Central Vehicle Controller

IVTM: Integrated Vehicle Tire Monitoring

ECAS: Electronically Controlled Air Suspension

MTS: Door Control for Bus

21222324252627

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2345

6

7

89

10

11

12

1314

15

16

1718

19

20

21

22

23

24

25

2627

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Heavy Duty Technology led by EU Legislation driven by SAFETY AND ENVIRONMENT

Fuel Efficiency

Emission reduction

Energy recovery

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GLOBAL LEGISLATION OVERVIEW2010 2011 2012 2013 2014 2015

ESCRSS

(Turkey 2013)

LDWSAEBS

(Turkey 2015)

Shorter stoppingdistances

Euro IIIemission

ESC for HCVsFuel efficiency

ABS - trucks, busses & trailers

MandatoryABS

Euro Vemission

Euro Vemission

Euro III & fame emission

ECE Reg 13 LDWS - AEBS Fuel efficiency

ESC = Electronic Stability ControlLDWS = Lane Departure Warning SystemAEBS = Advanced Emergency Braking Systems

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The cause for Mechatronic Evolution in light duty truck and passenger car market Government regulation

– Tighter emission standards– Increased safety 

requirements – Increased CAFE fuel 

economy standards– Recycling Requirements

TECHNOLOGY EXPLOSION - Traditional mechanical systems are being replaced by electronic and mechatronic systems

TECHNOLOGY EXPLOSION - Traditional mechanical systems are being replaced by electronic and mechatronic systems

Technology Impact– Increased number of electronic 

modules (ECM, BCM, TCM, Safety, Security, etc.)

– Increased engine performance (direct Injection, turbocharging, diesel)

– Driver convenience products increases(bluetooth, navigation, web‐enabled, video)

– Complicated system integration (CAN network)

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HD industry is following the same path• Government regulation impact

– Emission Reduction• Selective Catalyst Reduction (SCR)• Exhaust Gas Recirculation (EGR) solutions to reduce emissions

– Safety Improvements• ABS/Stability Control

– Recycling Requirements 

• Fuel economy improvements– Common Rail Diesel injection systems– Hybrid Powertrain (buses, delivery trucks)– Alternate fuels (fuel cells)

• Technology Impact– Increased engine performance– Driver convenience products increases (Automated transmissions)– Systems converting to “by wire” systems replacing pure mechanical

Traditional mechanical systems are being replace “BY WIRE” electronic and mechatronic systems

Traditional mechanical systems are being replace “BY WIRE” electronic and mechatronic systems

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Technology Impact on the Industry?

• New diagnostic & training requirements at the repair level– System integration of multiple electronic products– CAAN communication

• Flashing/Software update requirements• Life cycle production concerns

– Past model electronic component shortages– Life time buy requirements (how do you know how many you need?)

• Core handling changes – Cannot damage connector or case– Cannot damage electronic components– Electro‐Static Discharge (ESD) concerns

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GLOBAL TRUCK & BUS PRODUCTION(over 6 tonnes Gross Vehicle Weight)

India

Total 2,732K units

Total 2,088K units

China

Japan/Korea

S. America

N. America

Europe

Total 2,998K units

2008 2009 2010 .

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GLOBALIZATION: INDIASALES PROJECTIONSIndexed (2010 Sales = 100)

100

152

225

2010 2013 2015

Strongly anchored market leader

Preferred supplier for all OEMs

Nationwide sales and service network

Extensive product & software development capabilities

Lean and Six Sigma driven manufacturing

High record of industry awards

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GLOBALIZATION: CHINASALES PROJECTIONSIndexed (2010 Sales = 100)

100

214

325

2010 2013 2015

CAGR 27%

2005 to 2008 sales grew at 70% CAGR

Signed long term agreement with CNHTC through 2016 including sole supplier of transmission automation systems

Joint venture with Fuwa, world’s largest maker of trailer axles, to produce air disc brakes in China

Growing presence in WABCO’s global manufacturing network and an internal benchmark for Six Sigma Lean

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Mandatory in EU in Nov. 2011

Includes yaw control to keep vehicle on steered course and avoid jack-knifing

Roll Stability Support mitigates roll-over situations for coaches, trucks and trailers

ESCsmart™: Industry’s first technology that uses computational simulation to certify ESC. Breakthrough homologation system approved in 27-country EU and in 20 other countries

INNOVATION: ELECTRONIC STABILITY CONTROL

SALES PROJECTIONSIndexed (2010 Sales = 100)

100

581

857

2010 2013 2015

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An opportunity for the HD Reman Industry

• Substantial Mechatronic and Electronic content per vehicle

• Sustainable Life Cycle Model– Provide service parts for 15‐25 years– More affordable replacement parts

• Need to develop electronic testing and repair capabilities

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“We can't solve problems by usingthe same kind of thinking we used

when we created them.”‐‐ Albert Einstein

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DESIGN FOR REMANUFACTURING

• Allow for easy disassembly of product

– Screws preferred

– Minimize rivets

– Alternative to Tyco “Action Pin” connections for circuit boards?

– Alternative to plastic tabs fasteners for TEBS‐E ECU case?

• Consider wear out electronic components easy access (i.e. 

top side of circuit board) and replaceable.

• Need to diagnose ECU failures

• Need to be able to reflash software to latest version.

19Source: Dekra Verkehrssicherheitsreport LKW 2009, May 2009

POSSIBLE MITIGATION SYSTEMS

LDW

ACC

BSD

ADVANCED SAFETY: MOST FREQUENT ACCIDENTS

Stability Control System

Lane Departure Warning

Collision Mitigation System

Collision Mitigation System

Autonomous Emergency Braking Systems

Autonomous Emergency Brake

Passive under run protection

Advanced mirrors

Blind Spot Detection

Advanced Emergency Braking Systems

Autonomous Emergency Braking Systems

Advanced Emergency Braking Systems

Advanced Emergency Braking Systems

Moving/stopping objects

Stationary objects

Adaptive Cruise Control

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Key Milestones

Initiation Phase

SOP

Production Launch

Process ValidationPhase

Process DesignPhase

Concept/QuotationPhase

IndustrializationPhase

P1P1 P2P2 P3P3 P4P4 P5P5

Mar 23, 12

Dec 1, 11

April 13, 12May 11, 12

May 31, 12

Jun 18, 12

Jun 22, 12Jun 22, 12

Planned Key Milestones

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Exhaust gas recirculation

Mechatronic Control Unitsfor emission and turbocharger

controls

SCR Air & Coolant ControlEngine Brake

Actuation

VEHICLE EFFICIENCY ROADMAP

Fuel Efficiency

Emission reduction

OptiDrive AMT

Retarder Control

Hybrid Controls

Energy recovery

Engine Control

TransmissionControl Brake Control

VCM

J1939

Blue: controlled by WABCO today

Hybrid

AEBS

Retarder Compressor

Friction Brake Trailer Brake

Engine BrakePowertrain (incl. AMT)

El. Drive Regen.

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280 369499 471

621515 600

836 8741,033

1,487

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CHINA: AN ONGOING PHENOMENON

280 369 499 471621 515 600

836 8741,033

1,487

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

9.9 11.0 12.0 13.6 16.018.4

21.225.7

30.133.5

37.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Unit: Trillion RMB

Unit: ‘000

855534Highway (K KM)

300230187Road (M KM)202020102004　

CHINA T&B PRODUCTION GVW > 6T

CHINA GDP Road/Highway Plan

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THANK YOU!

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