Professor, University of Michigan Vice President, GM Global R & D, retired

April 13, 2016 Ann Arbor

ALAN TAUB

GLOBAL INNOVATION IN THE AUTOMOTIVE INDUSTRY

“REFLECTIONS ON MY EXPERIENCE AT GM”

QUALITY TECHNOLOGY

BRANDS

“DESIGN, BUILD AND SELL THE WORLD’S BEST VEHICLES”

THE NEW GENERAL MOTORS

GM BEFORE RESTRUCTURING

Program Management

Design

Powertrain Engineering

Purchasing & Supply Chain

Research & Development

Quality

Vehicle Engineering

Product Development – Vice Chairman

Design

CHIEF EXECUTIVE

OFFICER

Intellectual Property

Rights

GLOBAL PRODUCT

OPERATIONS – Vice Chairman

Strategic Product Alliances

GM AFTER RESTRUCTURING (2009)

Program Management

Design Powertrain Engineering

Quality

Vehicle Engineering

Purchasing & Supply Chain

Research & Development

Define

Concepts

Refine Validate Concept (s)

Concept(s) Approval

Concept Refinement Complete

Concept Validation Complete

Definition Approval

ONE ORGANIZATION DRIVING FROM INVENTION TO IMPLEMENTATION

(Advanced Development) 6 - 36 Months Pre-DC/DSI

Production Implemen-

tation Validation DC/DSI/VPI

Exploratory Pre-Gate 0

R&D

PROD ENG

EXPLORATORY ADV TECH INNOVATION PROGRAMS KEY ASSISTS

ADV ENG

(2010)

Sweden

Shanghai

Bangalore

Mainz-Kastel

Australia

Korea Pontiac Warren

Canada

Engineering Centers

Brazil

GLOBAL ENGINEERING FOOTPRINT – 2009

U.K.

Mexico

South Africa

Central R&D organization for General Motors

Organized in 1920 under Charles (“Boss”) Kettering

World’s first automotive research organization

Activities centralized in Michigan for >85 years

GM R&D HISTORY

Premise: Innovation is enabled by diversity (background,

education, local environment…) Analysis (2001): U.S.-centric mindset with Detroit-centric workforce >50% researchers born outside U.S. but 98% recruited

from U.S. graduate schools Change Model: Globalize GM footprint Rebalance resources from <5% external collaboration

to >25% Globalize collaboration network

SHIFTING THE R&D BUSINESS MODEL

Israel (2007)

China (2008)

India (2003)

HRL (2000)

Silicon Valley (2007)

Honeoye Falls (2007)

Germany (2007)

Warren (1920)

GLOBAL R&D FOOTPRINT

Complementary Centers of Expertise (COEs) vs.

Satellite Laboratories Dependent on HQ Laboratory

Equal ownership: Boeing and GM

Project portfolio: – Shared research ~20% – Directed research ~40% – Government contracts ~40%

Integrated HRL with GM R&D without losing the beneficial synergies of a co-owned West Coast entity

HRL – MALIBU, CA

Premise: Innovation is enabled by diversity (background,

education, local environment…) Analysis (2001): U.S.-centric mindset with Detroit-centric workforce >50% researchers born outside U.S. but 98% recruited

from U.S. graduate schools Change Model: Globalize GM footprint Rebalance resources from <5% external collaboration

to >25% Globalize collaboration network

SHIFTING THE R&D BUSINESS MODEL

Sweden (2005)

Israel (2007)

China (2008)

India (2003)

HRL (2000)

Silicon Valley (2007)

Honeoye Falls (2007)

Germany (2007)

Russia (2005)

Australia (2006)

Korea (2004)

Warren (1920)

Canada (2002)

GM Labs

Science Offices Affiliated Lab

Brazil (2008)

GLOBAL R&D FOOTPRINT

Japan (2010)

Facilitate interactions among GM researchers and technical resources in a particular country – Universities – National labs – Technical centers – Suppliers

Drive aggressive global university and national laboratory portfolio with government leveraging

Master agreements with universities around the world using common IP terms and conditions to make it easy for researchers to manage the relationship

ROLE OF SCIENCE OFFICES

GM GLOBAL ACADEMIC PARTNERSHIPS – 2010

U.S.

Australia

Argentina

Canada Switzerland

China

France Germany U.K.

Sweden

Belarus Russia

Greece Italy

Ireland

Israel

India

Japan

Korea

Poland

Spain

Ukraine

Singapore

North America

Europe

Middle East

Asia

Pie areas by percentage of funding

Global Academic Collaboration Funding

Master Agreements with Universities in 25 Countries

Egypt

Netherlands

Strategic partnership in a key technology area for GM Incorporates a group of professors in a large program

vs. individual projects GM fully funds automotive exclusive engagement

5-year commitment with renewal expected

Collaborative Research Lab is co-directed Tasks and goals are defined together

Encourages people exchange, sabbaticals, student interns, visits

COLLABORATIVE RESEARCH LABORATORIES

University of Michigan Engine Systems Research Advanced Vehicle Manufacturing Smart Materials & Structures

Carnegie Mellon Information Technology Autonomous Driving

Indian Institute of Science Lightweight Materials

Brown University Materials Modeling

RWTH-Aachen Advanced Engines

University of Wisconsin-Madison Engine Combustion

M.I.T. Materials & Manufacturing Systems Analysis

Indian Institute of Technology-Kharagpur Electronics, Controls and Software

Shanghai Jiaotong University Advanced Manufacturing

COLLABORATIVE RESEARCH LABS (2010)

University Technology Area

Sweden (2005)

Israel (2007)

China (2008)

India (2003)

HRL (2000)

Silicon Valley (2007)

Honeoye Falls (2007)

Germany (2007)

Russia (2005)

Australia (2006)

Korea (2004)

Warren (1920)

Canada (2002)

GM Labs Science Offices Affiliated Lab

Brazil (2008)

GLOBAL R&D FOOTPRINT

Japan (2010)

SILICON VALLEY – AUTOMOTIVE RELATED (2006)

BMW labs Bosch labs Honda labs Daimler labs Toyota labs VW labs

Intel labs Pirelli labs Siemens labs ST Micro labs Toyota labs Yahoo! labs

Early observation of new trends, features and concepts

Select promising new technologies that enable these features

Conduct a 3-6 month collaborative assessment of the technology/feature/concept with local technology suppliers/ high-tech companies – Address technical, business, automotive, and integration feasibility

VC MODUS OPERANDI

Architecture Exploration

Tools & Methods

Venture Capital Portal

Automotive Cleantech – Technologies related to the greening and electrification of the vehicle, e.g., electric vehicle and fuel cell technology, charging infrastructure, emission controls, motors, smart grid, vehicle energy efficiency technology, biofuels

Infotainment – e.g. vehicle HMI, voice recognition technologies, in-vehicle advertising, cloud services, integration of personal devices

Smart Materials – Technologies that can provide efficiency, performance, cost, mass, and/or environmental benefits to the vehicle, e.g., lightweight materials, eco-friendly materials, materials with phase changing characteristics

Other Game-Changing Technologies – Innovations that address unmet consumer needs or solve technological challenges for GM, e.g., advanced sensors to enable autonomous driving, safety features

Value Chain/Business Model – Alternatives to the traditional automotive business model and opportunities to leverage our technology and assets to capture upstream or downstream revenue opportunities, e.g., car-sharing, secondary battery use

GM VENTURES FORMED IN 2010 ($100M INITIAL FUNDING)

FOCUS ON EARLY-STAGE STARTUPS, TARGETING THE FOLLOWING SECTORS:

GM’S GLOBAL R&D NETWORK

Alliance Partner

USCAR EUCAR

OEMs

Collaborative Research

Labs

Science and Tech

Offices

Universities Suzuki

U. of Michigan RWTH-Aachen Brown Carnegie Mellon IISc-Bangalore M.I.T. U. of Wisconsin IIT-Kharagpur SJTU-Shanghai Australia Canada China India Israel Japan Korea Russia Sweden Individual Contracts Individual

Contracts

HRL

Sandia Government Lab

Global Sites

Strategic Partners

… … … Suppliers

Affiliated Lab

Warren Bangalore Honeoye Falls Mainz-Kastel

Palo Alto Herzliya Shanghai

“CONNECTED VEHICLES”

SUBSCRIBERS

5,500,000

SAFETY AND SECURITY

Electric-Networked Vehicle (EN-V)

ROBONAUT-2 Robotic Manufacturing

WHAT DOES THIS MEAN GOING FORWARD?

• Rate of technology development and implementation is accelerating

• Increasing value-add from Electronics, Controls & Software • Greater role of non-traditional automotive companies • Personal mobility innovation is growing globally

• Companies need to be integrated into the “innovation ecosystem”

• “Passive Observation” is not sufficient • “Active Collaboration” is required

• Startups and VC’s • Universities and national laboratories • Global presence to enable “locally-relevant” solutions