DEFINITIONS. Supply Chain Improvement Program Goals:

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1 Routine HDX /8 PURPOSE The purpose of this document is to define the Haldex Supply Chain Improvement Program (SCIP) and associated requirements. SCIP is a tool to monitor and improve the quality of the Haldex supply base. Our objective is to develop a mindset within Haldex and in our supply chain that results in continuous improvement in all aspects of our business relationships. Supply Chain Improvement Program Goals: Intentional pursuit of zero defects Improve Haldex products Identify, quantify, and eliminate waste Improve supply chain processes Optimize total procurement costs SCOPE This Supply Chain Improvement Program is focused on developing supplier relationships by challenging Haldex and our supply base to establish highly competitive performance standards and promote continuous improvement in the areas of Quality, Delivery, Value, and Support. This program applies to all Haldex locations. This program applies to all current, active direct material suppliers to Haldex. The Supply Chain Improvement Program contains provisions for the following: an annual supplier performance review, a quarterly supplier performance report card, according to the Haldex supplier rating system, and monthly details on supplier quality and delivery. DEFINITIONS PPM RMR SCIP parts per million rejected material report (non-conformance report) Supply Chain Improvement Program 3 Factor SCIP suppliers: includes measurement of PPM, RMRs, and Delivery all direct material suppliers monthly reporting

2 Routine HDX /8 5 Factor SCIP suppliers: includes measurement of PPM, RMRs, Delivery, Value, and Support all direct material ( 3-Factor SCIP) suppliers excluding the following: o Outside Vendor Processing (OVP), such as plating, heat treatment o Raw material, where there is little Haldex engineered content o Niche low frequency, low value quarterly reporting RESPONSIBILITY The Haldex Sourcing Council is responsible for approving, implementing, and maintaining this policy, and for monitoring overall SCIP program performance. Local Haldex Site Quality and Purchasing personnel are responsible for compiling information and reporting supplier Quality Performance (PPM and RMR) and Delivery Performance results. Haldex Strategic Sourcing personnel are responsible for compiling information and reporting the Value Improvement/Cost and Support results. Haldex Strategic Sourcing, local Purchasing, and local Quality personnel shall jointly review supplier performance, develop appropriate supplier performance improvement action plans, and implement required supplier development actions. PROGRAM DEFINITION (Refer to the following pages.)

3 Routine HDX /8 Haldex Direct Material Supplier Rating Primary Rating Elements Rating % Sub-Elements Rating % Points (0-5) Quality 36% PPM 50% Rejected Material Reports (RMR) 50% Delivery 31% Delivery 100% Value Improvement / Cost 20% Approved and/or Implemented Ideas 70% Payment Terms 30% Support/Compliance of Expectations 13% Supplier Involvement Technical Support Documentation Integrity Quality and Environmental Management System Compliance Continuous Improvement Haldex Supplier Quality Manual Compliance A weighted point total will be calculated from the 4 Primary Rating Elements. Performance Level A - High Performance Supplier B - Approved Performance Supplier C - Low Performance Supplier, Action Plan Requested

4 Routine HDX /8 Quality Rating Criteria Rating Element: Quality Primary Rating: 36% Sub-Elements Points Rating % Rating Criteria PPM PPM PPM PPM ,000 PPM 1 1,001-5,000 PPM 0 > 5,000 PPM Supplier PPM = Number of confirmed nonconforming units x 1,000,000 Total number of received units The number of confirmed nonconforming units is the number of units that Haldex found in the defined period. Haldex will only register the actual number of units confirmed to be nonconforming when rejecting a batch or lot to the supplier. Rejected Material Reports (RMR) 5 50 Zero RMR s per Quarter 4 1 to 2 RMR s per Quarter 3 3 to 4 RMR s per Quarter 2 5 to 7 RMR s per Quarter 0 > 7 RMR s per Quarter RMR Definition: The reporting of any nonconformance with a shipment of products or materials from a supplier. This includes deviations from any requirements, including but not limited to product dimensions and specifications, function, packaging, labeling, damage, and cosmetic/appearance requirements. This applies to services and products. On-time delivery and incorrect shipment quantities are excluded. These are reported in the Delivery measurement.

5 Routine HDX /8 Delivery Rating Criteria Rating Element: Delivery Primary Rating: 31% Sub-Elements Points Rating % Rating Criteria Delivery % of shipments on time with correct quantity 4 >/= 96 < 100% on time with correct quantity 3 >/= 92 < 96% on time with correct quantity 2 >/= 87 < 92% on time with correct quantity 1 >/= 80 < 87% on time with correct quantity 0 < 80% on time with correct quantity Supplier Delivery Performance (%) = Number of order lines received without deviations * 100 Total number of order lines to be received Number of order lines received without deviations = The number of supplier order lines received by Haldex with the agreed quantity and within the agreed delivery window, in a defined period. Total number of order lines to be received = The total number of supplier order lines to be received (due for receipt at Haldex) during the same period as above. This measure is based on order lines (not quantities or value).

6 Routine HDX /8 Value Rating Criteria Rating Element: Value Improvement/Cost Primary rating: 20% Sub-Elements Points Rating % Rating Criteria Approved and/or Implemented Ideas / Value Improvements 5 70 Approved / implemented ideas or equivalent price reductions greater than or equal to 5.0% of annual volume. 4 Greater than or equal to 4.0 % of annual volume 3 Greater than or equal to 3.0 % of annual volume 2 Greater than or equal to 2.0 % of annual volume 1 Greater than or equal to 1.0 % of annual volume 0 Less than 1.0% of annual volume Payment Terms 5 30 Vendor managed inventory, consignment, or >/= 90 days 4 >/= 60 days < 90 days 3 >/= 45 days < 60 days 2 >/= 30 days < 45 days 1 < 30 days

7 Routine HDX /8 Support Rating Criteria Rating Element: Business Relations Support Primary Rating: 13% Support Element is rated as follows: 5 Points Exemplary Support (examples) Provides continuous improvement support above and beyond expectations Less than 24-hour response on all communications, such as: Corrective Action responsiveness, containment actions Requests for Quotes Provides complete Corrective Action response according to Haldex Supplier Quality Manual requirements Provides value improvement opportunities 3 Points Satisfactory Support (examples) Meets Haldex expectations (refer to support areas below) ISO environmental compliance Demonstrates continuous improvement (Lean Manufacturing, 6 Sigma, etc.) 0 Points Unacceptable Support (examples) Lacks support in various categories Unwillingness or inability to demonstrate commitment in any area Support areas to consider: General involvement Open communications Support for requested interactions Timeliness/Responsiveness Technical support, effective corrective action Documentation (shipping labels, invoices, order acknowledgements, etc.) Quality Management System, Environmental Management System compliance Continuous improvement, demonstrated improving trends on Quality and Delivery Haldex Supplier Quality Manual compliance

8 Routine HDX /8 Example Supplier Report Card Supplier: ABC Manufacturing Rating Period: 1Q2010 Primary Rating Elements Rating % Sub-Elements Rating % Points (0-5) Weighted Quality 36% PPM 50% RMR Incidents 50% Result [4.00] Delivery 31% Delivery 100% Result [5.00] Value Improvement / Cost 20% Approved and/or Implemented Ideas 70% Payment Terms 30% Result [4.00] Support / Compliance 13% Overall Support 100% Result [3.00] Performance Level A - High Performance Supplier B - Approved Performance Supplier C - Low Performance Supplier, Action Plan Requested Supplier Performance Summary Weighted Result: 4.18 Performance Level: A