Center for Automotive Research | October 2014 NEWS&UPDATES Accelerating the Growth of the U.S. Automotive Manufacturing Industry SARA Supporting States Assembly Plant Supplier Plant A New CAR Study for the Six-State Southern Automotive Research Alliance (SARA) As the North American automotive industry has continued its steady evolution over the last three decades, its manufacturing footprint has been transformed. Key drivers of this dynamic have included the expansion of international automakers, and the growth of the industry in the U.S. South, as well as the ongoing rise of Mexico as an automotive powerhouse. Automakers and suppliers have made a powerful recovery from the effects of the most recent recession (December 2009–August 2012). The industry is once again profitable and growing, leading to new opportunities for states seeking auto-related investment. Auto assembly plants are among the crown jewels of economic development. A typical auto plant employs up to 5,000 people, with above average wages and benefits, and will generate thousands of spinoff jobs. According to CAR Research, every assembly plant job creates a total of 10 jobs in the supplier and support industries. The last announcement by an automaker of a new assembly plant in the United States or Canada took place five years ago. In contrast, over the last two years alone, Mexico has seen seven new assembly plants announced. In addition to manufacturing, both automakers and suppliers report increasing reliance on Mexico for engineering. Mexico is therefore emerging as a key competitor not just for manufacturing jobs but also for the high-paying white collar continued on next page zz CAR Transportation Experts Speak at 2014 ITS World Congress zz Fostering a Future in Automotive— [email protected] Program zz CALM Co-Development Lightweighting Demonstration Project zz People Driving CAR: New Hire zz Knowledge Transfer Symposium Alcoa Foundation Awards $175,000 Grant in Support of Lightweighting Research Efforts and Student Education In early August, CAR received a $175,000 grant from the Alcoa Foundation to support CAR’s research efforts in vehicle lightweighting technologies. The grant has been directed towards the development of case studies to advance CAR’s research in evaluating the costs and benefits of introducing I NS I D E lightweighting technologies into the manufacturing process as well as gaining a better understanding of the barriers to implementation. As part of the Alcoa Foundation grant, two student interns, Alaa Noah from Oakland University and Luke Deptula from Macomb Community College, began working with CAR this summer to collect continued on page 4 zz New CAR Affiliates Accelerating Industry Growth Southeast Region Study continued from page 1 jobs provided by R&D operations. The competitive threat posed by Mexico provides a key motivator for U.S. states and regions to embark on new initiatives including collaboration for regional automotive attraction. In a new study prepared for the Southern Automotive Research Alliance (SARA), CAR examines the critical success factors necessary for continued global automotive investment growth within the southern U.S. automotive manufacturing region. CAR conducted more than 40 interviews with key industry stakeholders, including representatives at 10 automaker facilities, as well as dozens of automotive suppliers, educational institutions, and other regional influencers. The primary objective of this initiative was to gather and identify an unbiased “voice of the industry” from auto manufacturers and suppliers to ascertain efforts that may further improve the southeast region’s competitiveness in attracting additional foreign investment and For more information, contact Kim Hill, Director, Sustainability and Economic Development Strategies, at [email protected] or 734-929-0488 or Bernard Swiecki, Senior Project Manager, Sustainability and Economic Development Strategies, at [email protected] or 734-929-0484. Automotive Employment and Production Forecast—SARA Region Employment Plateau (blue): Because of the success of Mexico in attracting new automotive assembly plant investment, CAR forecasts the SARA region to begin to plateau in terms of both production and employment. CAR’s findings will be previewed at the Southern Automotive Conference in Birmingham, Alabama on October 10. CAR President & CEO, Dr. Jay Baron, will present recommendations aimed at helping improve the region’s competitiveness to support, retain, and attract automotive investment and to grow U.S. employment through the implementation of collaborative efforts with regional scope. The full study is expected to be released later this year. 250,000 5,000,000 200,000 4,000,000 150,000 3,000,000 100,000 2,000,000 50,000 1,000,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 OE Employment Supplier Employment Vehicle Production Recovery (green): Despite openings of several new assembly plants and other investments, production and employment are only now just returning to their prerecession peak. encouraging U.S. companies to invest more at home rather than abroad. 0 Vehicle Production CAR Transportation Experts Speak at 2014 ITS World Congress Detroit The ITS World Congress, in Detroit for the first time, attracted nearly 10,000 attendees and highlighted the global transportation industry’s future of connectivity, safety and automation. The annual conference, now in its 21st year, alternates location each year and is the largest gathering of intelligent transportation systems (ITS) professionals in the world. Executives from the automotive industry led more than 250 sessions, panels, and speeches and among them were four industry experts from the Transportation Systems Analysis Group: Richard Wallace, Director, presented to the French ITS Delegation on the future of connected and automated vehicle technology. Notably, the next ITS World Congress will be held in Bordeaux, France. Dr. Qiang Hong, Senior Research Scientist, presented at the Big Data Management Analysis session regarding the benefits of being proactive in ITS adoption and how it can facilitate a safe and efficient transportation system, improve public safety, assist with various research programs, stimulate economic growth, and improve the environment. Joshua Cregger, Project Manager, presented at the Cooperative Systems session where his research highlighted several recent connected and automated vehicle deployment efforts throughout the world. Eric Paul Dennis, Transportation Systems Analyst, presented three research papers in the Policy Changes to Connected and Automated Vehicles session and one in the Implication and Assessment of Automated Driving session. Eric’s research discussed U.S. state policies, NHTSA’s advisory document concerning automated vehicle regulations, NHTSA’s efforts to propose a connected vehicle rulemaking, and the results of a survey that CAR and MDOT administered to automated vehicle industry stakeholders. One of CAR’s student interns, Katelyn Drake, Research Assistant, Sustainability and Economic Development Strategies Group, presented at the Youth Connections Showcase: Education and Training Needs for Emerging ITS Technologies session on why she chose the automotive industry for her career path. For more information contact Richard Wallace, Director, Transportation Systems Analysis, at [email protected] org or 734-929-0475. [email protected] Program: Fostering a Future in Automotive Over the past four years, CAR has provided undergraduate students interested in pursuing a career within the automotive industry, with the opportunity to participate in one of the industry’s leading conferences, the CAR Management Briefing Seminars. The [email protected] Program has continued to grow each year as well as the number of events on-site organized to engage these students with automotive leaders and executives. These events, such as Inforum’s Executive Roundtable, encourage conversations that allow students to learn about the industry in a personal way while beginning to build a professional network before they graduate. pursue a career in this industry. Every person I sat next to was encouraging of students in higher education and very helpful.” Sarah Fortunato, Michigan State University, Supply Chain Management and International Business With the assistance of 12 sponsors, 41 students from 13 schools attended the 2014 CAR MBS. Over the course of the four days these students, majoring in subjects such as engineering, finance, economics, accounting, design, law, logistics, and information technology, were introduced to the automotive industry and were given the opportunity to understand the potential of an automotive career. Here’s what one student had to say: CAR is honored to host these students who are the future of the industry and are appreciative of all sponsors who continue to make this program possible. “Every minute was a new learning experience for me. The speakers were all so inspiring and passionate about the automotive industry that they excited me and many other students to For more information regarding the [email protected] program contact Denise Semon, Program Coordinator, at [email protected] or 734-929-0461. CALM Co-Development Lightweighting Demonstration Project The Coalition for Automotive Lightweighting Materials (CALM) has undertaken a co-development demonstration project focused on mixedmaterial solutions for high volume vehicle doors. The project is being implemented in collaboration with an automaker and is designed to accelerate the introduction of new and novel lightweighting innovation. By fostering communication and collaboration between auto manufacturers and suppliers, the project will help to demonstrate and accelerate the introduction of lightweighting technologies. CALM goals for this development and demonstration project include: zz Provide an integrated co-development demonstration platform zz Introduce and showcase state-of-theart technologies to reduce weight zz Facilitate mixed-material concepts and solutions zz Demonstrate direct interaction between suppliers and vehicle manufacturers zz Develop a business case for mixed material solutions, considering mass reduction, cost, volumes and more. CALM is pursuing a multiple phase project. Phase 1 will be a non-proprietary project, with anticipated results leading to a whitepaper and determination of next steps. CAR will facilitate the effort by selecting the baseline architecture for benchmarking and analysis of current best-practice for the selection of materials and design for the door system. The CALM group will develop a portfolio of feasible, conceptual design alternatives to be scrutinized for weight, implementation cost and potential impact on manufacturing and product requirements. Participants will complete any required computer-aided engineering (CAE) analysis for performance validation and optimization. CAR will conduct economic analyses to assess cost impacts and manufacturing strategies for the automaker, and will summarize the findings with a written report and dissemination of the findings. Phase 1 of this CALM project is expected to be completed in early 2015. If results warrant, a further engineering analysis will be undertaken in a second phase. Phase 2 would then concentrate on extending the project beyond basic ordinate data, providing deeper analysis and more specific results. More detailed selections of materials, with closer analysis of the overall system performance will be pursued in this second phase, with attention spent on methods to improve the performance of the door system while significantly reducing weight. For additional information visit www.cargroup.org/CALM People Driving CAR: New Hire Aaron Champion joined the Industry & Labor Group in September 2014 as a research project manager. Aaron will support analysis of automotive industry education, training, and occupations, and government data, as well as developments in human resource and education issues and policies. Prior to joining CAR, Aaron worked at the Clean Energy Coalition as project manager and coordinator for the Detroit Area Clean Cities Coalition. Knowledge Transfer Symposium The nature of R&D is changing. Companies have shifted from a traditional internally focused innovation strategy to a more outward-looking innovation model. The Southeast Michigan region, dominated by the domestic automobile industry, has at times struggled in this transformation. Within the automotive industry, vehicle manufacturers are increasingly focused on immediate needs of product development, and looking to suppliers, academics and others to innovate. To improve the innovation ecosystem within the region, CAR organized the Knowledge Transfer Symposium, which took place September 15, at the General Dynamics Land Systems Maneuver Collaboration Center. CAR defines knowledge transfer as an innovation, idea or technology that must be further developed before it is considered ready for application. CAR presented research results from an 18-month effort, funded by the U.S. Economic Development Administration. The day-long symposium focused on how the automotive industry can make needed connections with aca- Symposium moderator Brett Smith (left) leads panelist discussion. Panel includes (left to right) Dan Koester, JCI; Steve Wilson, University of Michigan; and Chuck Gulash, Toyota demia, economic developers and other entrepreneurial companies in order to accelerate knowledge transfer. This symposium identified knowledge transfer models through interactive discussions with invited guests. Based on attendee feedback, the event was an important next step in understanding how organizations can apply the innovation frameworks in the real world, and identify challenges and opportunities for collaboration and improvements in innovation processes. CAR continues to work with the region’s stakeholders to address this opportunity. For more information contact Brett Smith, Program Director, Industry Analysis and Community Activities at [email protected] or 734-929-0491. Alcoa Foundation Grant continued from page 1 manufacturing case study data. In addition, both students are involved in interviewing industry experts to assimilate costbenefit analyses of lightweighting solutions involving new designs with lightweight materials and advanced forming and joining processes used by vehicle manufacturers and suppliers in the automotive industry. Once compiled, the comprehensive research results will be disseminated at the 2015 CAR Management Briefing Seminars and other engineering events, and help to inform automotive technology curricula at academic institutes. Luke Deptula is now working toward his bachelor of science degree in Electric Transportation Technology at Wayne State University. Luke earned an associate degree in Automotive Technology at Henry Ford Community College in 2012 and a Certificate in Electric Vehicle Development at Macomb Community College in 2014. Alaa Noah is pursuing a bachelor of science degree in Electrical Engineering at Oakland University with an expected graduation date of December 2016. Alaa also earned associate degrees in pre-engineering and mathematics in 2014 from Macomb Community College. Luke Deptula Alaa Noah Mark Stevens Mark Stevens, an industry consultant and expert in manufacturing, tooling and part fabrication, will be managing this research initiative for CAR, working with the students and Dr. Jay Baron, CAR’s CEO, and Greg Schroeder, assistant director of the Manufacturing, Engineering and Technology group. Mark has more than 30 years experience in the automotive industry and was previously Executive Director, Global Die & Press Center Manufacturing Engineering, at General Motors. For more information regarding this lightweighting research, contact Mark Stevens, at [email protected] or 734-929-0482. Welcome New CAR Affiliates With nearly 70 diverse organizations, the Affiliates Program provides CAR with a pulse of the automotive industry, enabling CAR researchers to quickly respond to critical issues and trends. Affiliates may choose to engage in a variety of ways including participation in working groups and thought leadership roundtable discussions focused on advanced powertrain and alternative fuels, lightweighting and mass reduction strategies, or connected and autonomous vehicles. Affiliates share in CAR’s mission for a strong and viable automotive industry and enjoy exclusive access to research, networking events and opportunities to guide CAR’s future research, conference activities and more. For more information on becoming an affiliate, contact Brian Esterberg, Director, Affiliates Program at 734-929-0466 or [email protected] CAR Affiliates 3M AAA AISIN Chrysler Group LLC Alliance of Automobile Manufacturers Dassault Systèmes Delphi DENSO Dow Automotive Systems Dow Corning DuPont Automotive Eastman Chemical Company Eaton Corporation EISENMANN EWI EY Faurecia Ford Motor Company Freudenberg-NOK General Motors Altair Aluminum Association American Automotive Policy Council American Axle & Manufacturing American Chemistry Council AP&T BASF Bayer MaterialScience Böllhoff, Inc. BorgWarner, Inc. Braskem America Chevron Continental Automotive Systems GfK Custom Research North America HELLA Henkel Corporation Hewlett Packard Honda IPG Photonics J.D. Power Johnson Controls, Inc. (JCI) KOSTAL of America Macomb Community College Magna International Inc. The Magni Group, Inc. McKinsey & Company, Inc. Michelin National Renewable Energy Laboratory Mitsubishi Electric Automotive America Steel Market Development Institute Mitsubishi Motors Toyota Trexel United Tooling Coalition (UTC) Volkswagen Group of America ZF Momentive Specialty Chemicals, Inc. National Automotive Center, U.S. Army Nissan North America, Inc. PPG PTC Ricardo, Inc. Rifast Systems Rio Tinto Alcan Robert Bosch LLC SABIC SAP Schuler, Inc. Shiloh Industries Affiliate Exclusive: Summary of U.S. DOT Moves towards V2V Requirements For several years, the U.S. Department of Transportation (U.S. DOT) has supported the development of technology, standards, and policies regarding connected vehicles. In February 2014, the National Highway Traffic Safety Administration (NHTSA) announced it would begin working on a regulatory proposal that would require vehicle-to-vehicle (V2V) communication devices in all new light vehicles. On August 20, 2014, NHTSA published an Advanced Notice of Proposed Rulemaking (ANPRM) in the Federal Register, along with an accompanying report, “Vehicle to Vehicle Communications: Readiness of V2V Technology for Application.” Public comments will be accepted until October 20, 2014. Both documents can be accessed at: www.nhtsa.gov 3005 Boardwalk, Suite 200 Ann Arbor, MI 48108-5218 Tel: 734.662.1287 Fax: 734.662.5736 www.cargroup.org In a report prepared and released exclusively for Affiliates, CAR’s Transportation Systems Analysis group summarized the NHTSA documents which enabled Affiliate readers to easily locate items of interest and value to their company. For more information on becoming an Affiliate, contact Brian Esterberg at [email protected] or 734-929-0466. The nonprofit Center for Automotive Research is focused on a wide variety of important trends and changes related to the automobile industry and society at the international, federal, state and local levels. CAR conducts industry research, develops new methodologies, forecasts industry trends, advises on public policy, and sponsors multi-stakeholder communication forums.
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