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Autofacts®

Industry Update

September 10, 2015

PwC Autofacts ®

Global 1 Global

2

PwC Autofacts ®

Regional outlook The lion’s share of the new volume is expected to come from developing markets, and in particular developing Asia-Pacific, providing nearly 65% CTG** from 2014-2021.

3

Regional Contribution to Growth* 2014 – 2021 (percentage share)

5.5%

South America

6.0%

Eastern Europe

4.5%

Middle East & Africa

10.4%

European Union

13.6%

North America

-4.8%

Developed Asia-Pacific

64.8%

Developing Asia-Pacific

3.8m 3.3m 1.9m 16.7m 17.1m 13.4m 30.0m

5.0m 4.6m 2.9m 19.0m 20.2m 12.4m 44.4m

Regional Topline Comparison & Volume Change 2014 vs. 2021

+1.2m +1.3m +1.0m +2.3m +3.1m -1.0m +14.4m

2014

2021

∆

Americas Europe, Middle East & Africa (EMEA) Asia-Pacific

1 Global

Source: Autofacts 2015 Q3 Forecast Release *Region size not to scale **CTG = Contribution to Growth

PwC Autofacts ®

Alliance group outlook Despite calls for industry consolidation, particularly in China, the global automotive market is expected to remain highly diversified throughout the forecast window, with little to no M&A activity at the automaker level.

4

1 Global

Source: Autofacts 2015 Q3 Forecast Release *RN = Renault-Nissan **FCA = Fiat-Chrysler Automobiles

56 Alliance Groups (22%)

53 Alliance Groups (24%)

PwC Autofacts ®

Supplier consolidation on the rise 2015 will likely be a record year for automotive supplier deal value. PwC is forecasting $48b in closed transactions for the full year.

1 Global

Source: Thompson Reuters, CapIQ, Other publicly available sources, Strategy& Analysis

5

PwC Autofacts ®

Powertrain outlook A myriad of technologies will be used as the industry balances consumer demands with global emission standards. Market share for alternative propulsion vehicles is expected to reach 6.7% in 2021, more than doubling from 2014 (3.3%).

1 Global

Source: Autofacts 2015 Q3 Forecast Release *Includes mild & full hybrid

2014

2021F

6

PwC Autofacts ®

North America 2 North America

7

PwC Autofacts ®

16.5 16.1 13.4

10.4 11.6 12.7 14.4 15.5 16.4 17.1 17.3 17.3 16.5 16.9 17.2 17.3

-

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F 2021F

Light Vehicle Sales by Country 2006 – 2021(millions)

US Canada Mexico

Increased sales expected, but at a slower rate While a record sixth consecutive year of sales growth is all but certain for the U.S. in 2015, a slowdown and eventual downturn is on the horizon.

8

Source: Autofacts 2015 Q4 Preliminary Forecast Release

2 North America

PwC Autofacts ®

Low rates continue to drive sales Auto interest rates remain near their historic low levels, thanks in part to aggressive measures taken by the Federal Reserve, however with the Fed likely to raise rates this year, the good times aren’t likely to last for consumers.

2 North America

Source: Federal Reserve G20 Report, Autofacts Analysis, Oxford Economics

9

PwC Autofacts ®

Industry nearing a tipping point Consumers are likely to feel increased upward pressure on the amount financed as average selling prices continue to rise, helping to drive the total amount of outstanding auto loan debt to record highs.

2 North America

Source: NADA, Federal Reserve Bank of New York

10

PwC Autofacts ®

What goes around, comes around While the U.S. auto industry is enjoying one of its most successful periods in recent memory, history also reminds us that the good times can’t last forever.

11

Source: Autofacts 2015 Q3 Forecast Release

2 North America

U.S. Economic Recessions 1960 – 2021

PwC Autofacts ®

Import share continues to erode Driven by increased localization of assembly within the region, non-NAFTA U.S. light vehicle imports are expected to see a YoY (year-over-year) decline for the 5th time in the last 6 years.

12

Source: Ward’s Automotive Reports, Autofacts Analysis *Non-NAFTA **Thru August 2015

2 North America

PwC Autofacts ®

Big 3 import markets still dominating While Japan, South Korea and Germany still represented the countries of origin for over 90% of vehicle imports in 2014, the drop in import volume for those OEMs who localized assembly is telling of the direction the industry is heading.

13

Source: Ward’s Automotive Reports, Autofacts Analysis *Includes Audi & Porsche **Includes Kia

2 North America

PwC Autofacts ®

US imports poised for a sharp decline Taking into account both announced and forecasted capacity expansion through 2021, Autofacts estimates that US imports could see a decline of nearly 50% from current levels.

14

Source: Company Announcements, Autofacts 2015 Q3 Forecast Release, Autofacts Analysis 1 Includes Kia 2 COMPAS = Cooperation Manufacturing Plant Aguascalientes) 3 Includes Audi & Porsche

2 North America

North America Capacity Expansion by Company 2015 – 2021

2.65m * .84 = 2.23m 2.23m * .83 (US regional sales share) = 1.85m

PwC Autofacts ®

Steady growth anticipated for exports Increased global demand for large CUVs and SUVs, many of which are sole sourced from North America, are expected to result in export growth for the foreseeable future.

15

Source: Autofacts 2015 Q3 Forecast Release, Autofacts Analysis

2 North America

MT

WY

ID

WA

OR

NV

UT

CA

AZ

ND

SD

NE

CO

NM

TX

OK

KS

AR

LA

MO

IA

MN

WI

IL IN

KY

TN

MS AL GA

FL

SC

NC

VA WV

OH

MI

NY

PA

MD

DE

NJ

CT RI

MA

ME

VT

NH

MI

Fiat-Chrysler Automobiles

Plant: Jefferson North (Detroit, MI) Vehicles Produced: Jeep Grand Cherokee, Dodge Durango 2014 Assembly: 364,000 Non-NAFTA Export Estimate: 93,000 (26%)

Fiat-Chrysler Automobiles

Plant: Toledo Supplier Park (Toledo, OH) Vehicles Produced: Jeep Wrangler / Wrangler Unlimited 2014 Assembly: 235,000 Non-NAFTA Export Estimate: 34,000 (14%)

Daimler AG

Plant: Tuscaloosa (Vance, AL) Vehicles Produced: C, GLS, GLE-Class 2014 Assembly: 230,000 Non-NAFTA Export Estimate: 122,000 (53%)

BMW

Plant: Spartanburg (Spartanburg, SC) Vehicles Produced: X3, X4, X5, X6 2014 Assembly: 344,000 Non-NAFTA Export Estimate: 241,000 (70%)

General Motors Company

Plant: Arlington (Arlington, TX) Vehicles Produced: Cadillac, Chevrolet, GMC SUVs 2014 Assembly: 300,000 Non-NAFTA Export Estimate: 33,000 (11%)

PwC Autofacts ®

North America forecasted to remain highly utilized OEMs have shown considerable restraint in over-expanding their assembly footprint in the North American region, leading to a highly utilized market.

16

Source: Autofacts 2015 Q3 Forecast Release

2 North America

Thank you!

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The information contained in this report represents the culmination of proprietary research conducted by Autofacts, an analytical group within the PwC Data Analytics Organisation. All material contained in this report was developed independently of any PwC client relationship and does not represent the firm’s view as an auditor to any legal business entity. While every effort has been made to ensure the quality of information provided, no representation or warranty of any kind (whether expressed or implied) is given by PwC as to the accuracy, completeness or fitness for any purpose of this document. As such, this document does not constitute the giving of investment advice, nor a part of any advice on investment decisions. Accordingly, regardless of the form of action, whether in contract, tort or otherwise, and to the extent permitted by applicable law, PwC accepts no liability of any kind and disclaims all responsibility for the consequences of any person acting or refraining from acting in reliance on this document.

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