Autofacts®

2010 Automotive Review Global Automotive Outlook

1 Global summary 7 Regional overview

259 Summary powertrain data75 Leading alliance group data

61 Pure electric vehicles

Contents

Global summary 1

Regional overview 7

North America – market overview with sales and assembly

European Union+EFTA – market overview with sales and assembly

East Europe – market overview with sales and assembly

Asia Pacific developed – market overview with sales and assembly

Asia Pacific developing – market overview with sales and assembly

South America – market overview with sales and assembly

Additional content 61

Pure electric vehicles: a long-term solution to sustainable transportation?

Leading alliance group data 75

Assembly

Capacity

Summary powertrain data 259

© 2010 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” and “PwC” refer to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way. DT-10-0069

PricewaterhouseCoopers I 27

Market SummaryEast Europe

0

200

-200

400

-400

600

-600

800

-800

Source: PwC Autofacts 2010 Q2

1,000

-1,000

East Europe light vehicle assembly 2008 vs. 2009 by quarter

2008 2009 % Change (R-axis)

100%

-100%

-80%

-60%

-40%

-20%

80%

60%

40%

20%

0%

Q1 Q2 Q3 Q4

East Europe

Despite a recent history of strong growth, East Europe has proved no more resilient to the global decline in vehicle demand than any other region. The region, which had posted an average annual assembly growth rate of 10% between 2000 and 2008 (peaking at 25% in 2004), saw a decline in assembly of more than 46% in 2008.

This development came against a background of rapid change in

the economies that constitute the region. To some extent, all the major assembling countries of East Europe (Russia, Turkey and Ukraine) had enjoyed the fruits of economic stability, low interest rates, access to credit and the benefits of global trade (e.g. exports of both consumer goods and raw materials and energy). All this changed during the latter half of 2008, as the effects of the global slowdown began to affect the economies of East European countries: Credit began to dry up, and exports declined.

In Russia, the market had benefitted from economic growth driven by access to easy credit and the booming revenues from Russia’s raw materials and energy exports. These fed into a rising economy: GDP grew 8.1% in 2007. However, during 2008 the economy began to contract and grew only 5.6%, then fell by 7.9% in 2009. New car sales, which began to decline from May 2008 and fell dramatically throughout 2009, reflected the economic contraction. Indeed 2009 sales, at fewer than

PricewaterhouseCoopers I 19

Market PerformanceEU+EFTA

2009’s gain will be 2010’s loss.

The extent of 2009’s volatility is clearly seen by the SAAR range of over 4m units compared to a normal range of 1–1.5m units. Whilst 2010 is unlikely to see a repeat, volatility is still likely to be higher than normal as scrappge schemes end. Overall, we expect EU LV registrations of 14.98m units in 2010.

EU+EFTA car sales were slightly ahead of initial expectations in Q1 2010, increasing by 9.5%, because of a number of factors. Those markets where scrappage schemes were in place but ending, such as Italy and the United Kingdom, saw strong growth as people rushed to benefit from the incentives. Germany saw a smaller-than-expected contraction following the ending of its scheme last year, suggesting the overall market contraction in 2010 may be less than initially feared. Finally, many markets which were not distorted by scrappage schemes in 2009 got off to a strong start, illustrated by Belgium (+12.1%), Denmark (+12.8%), Sweden (+34.6%) and Norway (+57.4%).

WE (EU15+EFTA) annual and SAAR forecast 2003–2010 (Millions)

Source: ACEA, Autofacts 2010 Q2

10

11

12

13

14

15

16

17

Sales Forecast

Annual SalesSAAR

May

10

Jan

10S

ep 0

9M

ay 0

9Ja

n 09

Sep

08

May

08

Jan

08S

ep 0

7M

ay 0

7Ja

n 07

Sep

06

May

06

Jan

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ep 0

5M

ay 0

5Ja

n 05

Sep

04

May

04

Jan

04S

ep 0

3M

ay 0

3Ja

n 03

At present the upside potential appearsto be outweighing the downside risk,with post scrappage scheme falls appearingless severe than anticipated and other WEmarket growth starting strongly.

Taking WE first (EU15+EFTA), the second half of 2009 was extremely strong, with the SAAR recovering to near-normal levels, because of the rush to benefit from the German scrappage scheme before funds ran out combined with the increasing impact from the UK and Spanish schemes, which did not start until midyear. Following a drop in January 2010, primarily because of the removal of the scrappage boost from Germany, the SAAR recovered strongly in February and especially March. However, we do not anticipate this level of demand to be sustained, currently forecasting new car sales of about 12.7m units in WE.

PricewaterhouseCoopersI61

PureElectricVehicles:

Thelong-termsolutiontosustainabletransportation?

Introduction

Pureelectricvehicles(PEVs)havereceivedplentyofpublicattentionlately.The2009FrankfurtMotorShowhostedmanyelectricvehicles,suchasRenault’szeroemissionfleetconsistingoftheFluence,Kangoo,

TwizyandZoe,aswellasDaimler’sBlueZerovehiclesincludingplug-inhybrid(PHEV),PEVandfuelcellvariants.Furthermore,the2010NorthAmericanInternationalAutoShowhaditsown“ElectricAvenue”toshowcasePEVdevelopmentsbyvarioussuppliersandautomakers.

0

100

200

300

400

500

600

700

800

900

1.000

Scenario range

Baseline

20162015201420132012201120102009

Global EV assembly scenario forecast

Source: PwC Autofacts 2010 Q2

PricewaterhouseCoopers I 115

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PricewaterhouseCoopers I 259

Consumption of engines by fuel type is subject to regional variation. The share of diesel engines has been and will be the highest in the EU, accounting for more than 50% of the total consumption volume. Moreover, the share of alternative fuels will be comparatively low even in 2013.

Engine fuel type

0%

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2009 2013

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South America

2009 2013

GasolineDiesel Hybrid Total volume (R-axis in millions of units) Source: PwC Autofacts 2010 Q2

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PricewaterhouseCoopers

RegionalAutomotivePracticeLeadPartners

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Regional Automotive Practice Lead Partners

GlobalRichardHannarichard.hanna@us.pwc.com

Europe HaraldKayserharald.kayser@de.pwc.com

Central & Eastern EuropeMatthewPottlematthew.pottle@cz.pwc.com

North AmericaDavidBreendavid.j.breen@us.pwc.com

South AmericaMarceloCioffimarcelo.cioffi@br.pwc.com

Asia PacificAlanYamalan.yam@cn.pwc.com

Assurance ServicesGlobalAutomotiveAssuranceLeaderRickHannarichard.hanna@us.pwc.com

Tax and Legal ServicesGlobalAutomotiveTaxLeaderHorstRättighorst.raettig@de.pwc.com

Global PricewaterhousecoopersAutofactsLeaderCalumMacRaecalum.j.macrae@uk.pwc.com

Visit our website at www.pwc.com/auto

© 2010 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” and “PwC” refer to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way. DT-10-0069