Automotive Airbags -



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Automotive Airbags - What Now? William C. Smith Industrial Textile Associates Greer, SC 29650 864-292-8121/Fax 864-292-5333 Email: billsmith@intexa.com URL: www.intexa.com

Safety Systems in Modern Car Source: Gerber

Frontal Airbag Effectiveness Percent Reductions in Driver and Passenger Deaths with Airbags (Data from Insurance Institute for Highway Safety IIHS, 2000) Crash Type All Belted Unbelted Frontal All P D P D 18 23 11 14 14 26 8 12 23 32 14 19

200 180 Air Bags Millions of Units 150 100 50 81 55 63 Vehicles 0 Year 1999 Year 2005 SOURCE: Price Waterhouse Coopers AUTOFACTS 2000 Q3 (the Second AutomotiveCentury- Global Outlook) Airbag Penetration in Vehicles 1999-2005

ESTIMATED UNIT AIRBAG PRODUCTION 120,000,000 100,000,000 80,000,000 60,000,000 CURTAIN SIDE FRONT 40,000,000 20,000,000 0 YEAR 2000 YEAR 2005 SOURCE: Price Waterhouse Coopers AUTOFACTS 2000 Q3 (the Second AutomotiveCentury- Global Outlook) Market for airbag units

Millions 14% Unit Growth 228% Unit Growth 1035% Unit Growth 10 0 90 80 70 60 INT EUR US 50 40 30 20 10 0 FRONT FRONT SIDE SIDE CURTAIN CURTAIN 2000 2005 2000 2005 2000 2005 Airbag Unit Growth by Region 2000-2005 SOURCE: Price Waterhouse Coopers AUTOFACTS 2000 Q3 (the Second AutomotiveCentury- Global Outlook)

GLOBAL AIRBAG MODULE MARKET -- 2001 Others (15) 24% Delphi 5% Takata/Petri 18% Autoliv 29% TRW 24% Autoliv TRW Takata/Petri Delphi Others (15) Source: Providata; The Global Automotive Airbag market 2001-2010

GLOBAL AIRBAG MODULE VOLUMES 2001 & 2010 2001 2010 Driver 43.1 57.0 Passenger 36.6 50.0 Side-Impact 28.8 80.0 Head Curtains 6.8 60.0 Other Modules 2.0 13.0 TOTAL: 117.3 260.0 Source: Providata; The Global Automotive Airbag market 2001-2010

Worldwide Consumption of Air Bag Fabric (Passenger Cars and Light Vehicles World 2000-2005) Meters of fabric: 2000: Approximately 225 million sqm 2005: Approximately 325 million sqm Tons of Yarn: 2000: Approximately 57M tons of yarn in 2000 2005: Approximately 83M tons by 2005 SOURCE: Acordis Industrial Fibers

What s Being Used? Coated Fabric 15% of the market globally at $6.00 per linear yard Widths: 94-96 + Growing? Uncoated Fabric: 95% of the market globally at $4.00 per linear yard Source: Gerber

Fabrics/Yarns Used While original yarns/fabrics used were variations of 840 denier nylon 6.6, neoprene coated, today s fabrics are primarily nylon 66, lighter denier/dtex, lower dpf yarns, and silicone coated. Typical yarns and constructions being used and evaluated are plain weave: 210 denier/235 dtex, 72X72 315 denier/350 dtex, 60X60 420 denier/470 dtex, 49X49 525 denier/580 dtex, 43X44 630 denier/700 dtex, 41X41

Coatings Neoprene was the original coating - available, cheap, adequate, familiar Most new developments involve silicone. - Low or no flammability (FMVSS302) - Abrasion resistance - Good flex - Low gas permeability (<0.3 cfm) - Thermal aging stability - Low stiffness (for packing) SOURCE: Wacker Silicones

Coatings are used in: Driver side essentially 100% Passenger side Some Side Impact Most Curtains Most

The Air Bag Process a textile perspective Fiber Yarn Fabric Coating Airbag Cut/Sew Module Assembly Silicone SOURCE: Wacker Silicones Others

What is driving the growth in airbags: Federal regulation first and foremost Public awareness General increase in concerns for safety Development of rollover and side impact systems Increased sophistication of systems Competitive dynamics

World Trends to 2005 Front airbags will - Fluctuate with the car production rates in WE, the USA, and Japan - Still grow in other area Side airbags fueling growth Head protection and roll-over protection will be fast growing application New systems are under development for such areas as knee, foot, and headrest, even an external pedestrian system

World Trends to 2005 BUT: Price reductions will be difficult to achieve as system becomes more sophisticated Further cost reductions will have to be based on innovation and new development. Acordis Industrial Fibers - 2000

What s Ahead? Composites? Combinations of materials nonwovens and film? Use specific? Lighter fabrics for packability and for use with cold inflator technology and special areas? New coating polymers? Consolidation/Integration of supply chain? New applications for air bags but selective: side curtains, rollover protection, others?

Autoliv Head and Thorax Bag

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Knee Bags Ford

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GLOBAL AIRBAG GROWTH FACTORS Continued growth of side-impact and curtain applications in North America, Europe and Asia-Pacific. Developing airbag markets in South America, Eastern Europe, Southeast Asia, India and China. Conversion to global platforms by the Big 6 vehicle manufacturers promotes safety product usage -- airbags, pretensioners, occupant sensing systems and anticipatory crash technologies. Maturing supply base in developing areas, ready to produce airbags in mass quantities, often licensing technologies or partnering with large airbag suppliers (China is a prime example). Technology maturation, growing consumer acceptance and lower prices will push airbag utilization to near 100% in Japan and Western Europe. Improved fabric technologies are decreasing cushion weight and increasing foldability, new coating applications are a major contributor to this trend. Source: Providata; The Global Automotive Airbag market 2001-2010

Requirements for Automotive Industry Suppliers Price Quality Competence in production, technology and development Long-term strategy Innovation Financial stability Integrated service package Logistics Flexibility Globalization

ITA is grateful to the following persons and companies for allowing the use of their information an d, sometimes, graphics, in the preparation of this report: Acordis Industrial Fibers Greg Janicki, CSM Worldwide E. I. DuPont Steve Kozak, Ford Motor Company Joe Lautner, Gerber Technology Price Waterhouse Coopers AUTOFACTS 2000 Q3 (the Second AutomotiveCentury- Global Outlook) Scott Upham, President, Providata Wacker Silicones