Material data collection in the Automotive Industry James Lundström, Manager, Material & Weight management

1. Material data collection in the Automotive Industry James Lundström, Manager, Material & Weight management <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

2. The world of Volvo Cars • Head office, product development, marketing, administration –Göteborg, Sweden, (Shanghai, China) • Design Centre - Göteborg, Sweden; Barcelona, Spain; Camarillo, California/USA • Component manufactures in Sweden – Skövde (engine), Floby (component), Olofström (stamping) Represented in about 100 countries at approx. 1,900 dealers Sales/Service units 2011 Europe 1,184 USA & Canada 361 China 91 Rest of the world 356 Total: 1,892 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

3. Global sales - top ten markets 2011 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

4. Product Planning Product Development Purchasing Production Market Communication Market & Sales Recycling Environmental issues at Volvo; 1972 • End of pipe solutions • Higher chimneys • Dilution <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

5. Product Planning Product Development Purchasing Production Market Communication Market & Sales Recycling Today’s Environmental focus at Volvo Cars • Producer responsibility • ELV-Networks • Reuse • Recycling • Recovery • Reports • Seminars • Labelling • Product Declarations • Environmental • Requirements • Fuel Economy • Vehicle Emissions • Noise • Materials of Concern • Alternative Fuels • Mobility • Occupant Environment • Alternative Powertrains • Solution at source • Closed loop systems • Energy efficiency • Control of Chemicals • Dealer Environmental standards • Packaging • Maintenance products • Exchange system Logistics Education Environmental Management Systems Holistic view <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

6. …And brought this focus to our products • First Automotive company to have 3rd party certified ”Environmental Product Declaration” and the use of LCA • Widespread use of simplified LCA-based tools such as E-FMEA • Focus on Air Quality since the 90’s. Both interior and exterior • ”Clean Compartment” Sub-brand • First OEM to be certified by Swedish Asthma and Allergy Association • DRIVe Focus on CO2 emission and holistic Environmental Impact • Volvo Car Corporation led the CO2 reduction in 2011, with a reduction of 9%.   <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

7. ELVs - Problems or possibilities? (and the impact of material data collection) <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

8. Relevant information about cars • The most complex consumer product • Many different types of materials (metal, plastics, textiles, rubber, fluids) • 3000-5000 parts per car • 15-25 year life span • Many spare parts and accessories • Few OEMs • Volvo: more than 250.000 parts are currently being sold worldwide <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

9. Material content? Automotive Industry anno1998 Why Collect Information? • End of Life Vehicle Directive, 2003 • Recyclability part of Type Approval • Internal requirements • Customer concerns • Efficiency • Future Needs • REACh • Green Chemistry initiative • Scarce raw materials <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

10. The European End of Life Vehicle Directive (2000/53/EEC) • ELV objectives: • Prevention of waste from vehicles • Improvement in environmental performance • Reuse & recycling of End-of-Life vehicles to reduce disposal of waste • Limits the use of Heavy Metals • Producer pays principle <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

11. The rest of the world • North America: Focus on hazardous substances, not recycling • Korea: ELV-type legislation in place • China: Draft ELV legislation in place • Japan: JAMA voluntary agreement and ASR tax (After Shredder Residue) • Taiwan: Voluntary regulation • India: ELV under development • Mexico: ELV subsidised by Japan Conclusion: A Diverse climate to work in <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

12. The Start of the International Material Data System (IMDS) 1998 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

13. What is IMDS • Web based tool to create and send “Material Datasheets” • Used to transfer information about material, substances and weight per components • Launched in 2001… • …and has turned into an industry standard • Free for all users, funded by the OEMs • Used throughout the whole sypply chain • For more information; http://www.mdsystem.com <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

14. Scope of process solution Material “Collect all information regarding material and recycling virtually, to prove currentand future legal compliance” <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

15. The Communication Issue <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

16. The Solution: Common industry solution (IMDS) Lieferant Lieferant Lieferant Hersteller <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

17. Material Datasheets • Provides a detailed specification of the part: • Component: Complete engine to small wahser… • Material: SS-EN steel, ISO1043 Polymers… • Substances: Iron, Lead, PBDE, Polypropylene etc. • The user creates a ”Bill of Material” with all necessary information • Components with attached materials • Materials with attached substances <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

18. Additional use of IMDS • Collect data on usage of recycled materials • REACH relevant information highlighted • Automatic feedback on non-compliant parts • Communication platform • Tools to manage program timing and data delivery • Communication platform • (Industry network platform) <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

19. 1998 2011 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

20. IMDS In Numbers • 100.000 Companies • 40.000.000 Material Datasheets • 350.000 new datasheets every month • Available in 9 languages • Used on every continent of the world <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

21. Timing… <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

22. Limitations of IMDS • Only for the automotive industry • Not always in the interest of our suppliers • Very centralized approach • IT-structure • Funding (i.e interest) • Easily becomes a political issue • 12 years old, starting to show • Difficult to expand beyond original scope <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

23. Spin-offs from IMDS • Huge impact regulatory development • Legislation developed around IMDS • Used as best industry example • Improved Environmental Performance • Global industry harmonization of ”Restricted Substances” within the Automotive Industry (GADSL) • Industry networks formed around substance compliance • Chemical industry a main contributor of knowledge <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

24. Global Automotive Declarable Substance List • Common Industry wide ”Black and Grey list” for parts • Specifies substances of ”interest” to the Automotive industry • Developed in cooperation between OEMs, suppliers and raw material producers • Updated annually • GADSL fully integrated into our processes, such as IMDS • GADSL will manage any future regulation such as REACh <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

25. How does IMDS help with REACH? • Tool in place to track all relevant substances • Article 33 under control with no additional processes • Annex XIV and Annex XVII can be tracked automatically • Facilitates impact assessments of new candidate list entries • Easy to understand relevant Annex XV dossiers and provide industry input <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

26. ”Lessons learned” with IMDS • Tremendous effort to launch, end customer will always be the driver • Time and resources • ”Ketchup effect” • Good internal organization needed, support over time • Common requirements is a must • Good communication between suppliers and manufacturers is a must • Educational effort is needed throughout the industry, don’t overestimate supplier knowledge • Suppliers must be given time to react • Strong correlation between system quality and data quality • Cooperation is the key to success! <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

27. Thank you for your Time! • Contact information • James Lundström • :jlundst2@volvocars.com • : 031-325 8771 <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

28. Backup <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

29. Some advice • Business drives Environment Environment drives Business • Legal requirements seldom follow business logic • Make sure your business can adapt efficiently • Legal requirements always evolve, be proactive • Legal requirements are (mostly) Non-competitive, Co-operation saves time and money • Never underestimate the timing issue for major change • Involve all affected parties from the beginning • Keep engineering issues outside of politics <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

30. Next gen. IMDS? http://public.cdxsystem.com/web/cdx/home <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

31. AIG - Automotive Industry Guideline Version 2.0 • How Does REACh affect you? • What are your responsibilities? • Is there any recommendations? AIG is yourguide! http://www.acea.be/reach/ <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

32. Conclusions • Environmental product development has moved from generic tools (LCA-based) to specific subjects • Key subjects today (beyond CO2) are: • Recycling, Substances of concern and consumer impact • The residual value of our products creates a good business case for recycling • Volvo and the Automotive industry is well adapted for future material and substance regulations, worldwide • The knowledge level is beyond any other industry today • Which helps us being proactive and improves our environmental performance The automotive industry is one of the most regulated but also most succesful in terms of Environmental Product Development <Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>