New challenges for the tyre development from an OEM perspective

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from an OEM perspective Dr. Thomas Roscher AUDI AG, Ingolstadt Tire Technology EXPO 2015 Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 84

Introduction Movie Tyre requirements Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 85

Introduction Vehicle line up 15 years ago Audi A3 Audi A4 Limousine Audi A2 Audi TT Roadster 1999 Audi A4 Avant Audi TT Coupè Audi A6 Limousine Audi Cabriolet Audi A8 Audi A6 Avant Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 86

Introduction Vehicle line up today Audi A3 Audi A3 Limousine Audi A3 Cabriolet Audi A1 Audi A4 Avant Audi R8 Audi R8 Spyder Audi A4 Limousine Audi TT Roadster Audi TT Coupe 2014 Audi A5 Audi A4 allroad quattro Audi Q7 Audi Q5 Audi A5 Sportback Audi A5 Cabriolet Audi A7 Audi A8 Audi A6 Limousine Audi Q3 Audi A6 allroad quattro Audi A6 Avant and more models to come. Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 87

Tyre program cars in production 1999 vs. 2014 Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 88

Tyre requirements Market Requirements Customer Requirements Costs Competition Technology Sourcing Fuel Consumption and CO 2 Emission Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 89 Regulation and Standards Complexity Development time

Concept phase During the concept phase the rim/tyre program is defined based on the vehicle positioning, target definitions and a priorisation process. Exterior design Vehicle weight Handling Traction/ Braking Fuel efficiency/ CO2 Wheel/ Tyre Program (tyre diameter, width, tyre aspect ratio; rim diameter, width) Acoustic/ Noise Robustness/ Local Markets Vehicle Architecture Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 90

Concept phase Advanced testing- and simulation methods during the concept phase yield a more precise requirement specification and by that a more efficient tyre development process Standardised tyre measurements on component level Driving dynamics Ride comfort Deriving objective tyre parameters for driving dynamics and ride comfort on component level Simulation/ Testing Definition of objective parameter range for tyre development based on whole vehicle simulation and testing of target vehicle Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 91

Series development process today Tyre series development process TCP First specification Hydroplaning Wet braking / handling Dry handling Dry braking Runflat test (AOE only) Tyre dimension check Rolling resistance High speed test itpms screening Rollover analysis (SUV only) First release 30 tyre delivery Pass-by-noise Robustness test Acoustic test Tread wear testing Finale release Industrial production Initial sampling Quality assurance SOP Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 92

Indoor Outdoor New challenges for the tyre development Testing conducted by Audi tyre development Handling (dry, wet, snow) Ride comfort (noise & vibration) Braking (dry, wet, snow) Traction (snow) Hydroplaning (longitudinal & lateral) Acoustics (pass-by-noise) Roll over Acoustics (interior noise) Subjective Rolling resistance High speed Tyre uniformity TCP Endurance Acoustics (interior noise) Objective Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 93

Outdoor testing Audi Outdoor Testing Cycle S-Models & max dimensions Dry handling Wet handling Wet objective Dry braking Snow handling Ice handling Snow objective 3 dev. loops possible 2 dev. loops possible Summer Cycle (Summer tyres) Winter Cycle (Winter & all season tyres) NUR ATF ATF ATF SEU1 SEU2* SEU1 MEU MEU MEU SEU1 SEU1 MEU MEU MEU SEU1 ATF ATF ATF SEU1 SEU2* SEU1 ALP SCA SCA SCA NUR... Nuerburgring ATF... Audi Testing Facility SEU1 / SEU2... Southern Europe 1/2 ALP... Alp Mountains MEU... Middle Europe SCA... Scandinavia * Winter/ Summer tyre joint test Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 94

Outdoor testing Going by the numbers... Each test session takes 1 4 weeks Up to 170 tyre sets per session Up to 20 vehicles on site More then 15 people involved in the testing (subjective & objective drivers, tyre mechanics, coordinators...) Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 95

Indoor Outdoor New challenges for the tyre development Testing conducted by Audi tyre development Subjective Handling (dry, wet, snow) Ride comfort (noise & vibration) Acoustics (interior noise) Subjective Braking (dry, wet, snow) Traction (snow) Hydroplaning (longitudinal & lateral) Acoustics (pass-by-noise) Roll over Rolling resistance High speed Tire uniformity TCP Endurance Acoustics (interior noise) Objective Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 96

Testing subjective outdoor Criteria subjectiv: Steering Stability Grip Braking Traction Balance Comfort acoustic / mechanical Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 97

Winter tyre testing Movie Winter tyre testing Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 98

Indoor Outdoor Outdoor New challenges for the tyre development Testing conducted by Audi tyre development Handling (dry, wet, snow) Objective Braking (dry, wet, snow) Traction (snow) Hydroplaning (longitudinal & lateral) Ride comfort (noise & vibration) Acoustics (pass-by-noise) Roll over Rolling resistance High speed Acoustics (interior noise) Tyre uniformity TCP Endurance Acoustics (interior noise) Subjective Objective Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 99

Testing objective outdoor Roll-over: Driving manouvers Traction on snow: Acceleration Hydroplaning straight: Speed at 15% slip on front axle Acoustic: Pass by noise according ECE R51 Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 100 Braking: 100 to 0 km/h on dry 80 to 0 km/h on wet 60 to 0 km/h on snow Hydroplaning lateral: Lateral acceleration over speed

Indoor Indoor Outdoor New challenges for the tyre development Testing conducted by Audi tyre development Handling (dry, wet, snow) Ride comfort (noise & vibration) Braking (dry, wet, snow) Traction (snow) Hydroplaning (longitudinal & lateral) Acoustics (pass-by-noise) Roll over Rolling resistance High speed Acoustics (interior noise) Subjective Tyre uniformity TCP Endurance Acoustics (interior noise) Objective Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 101

Indoor testing done by Audi tyre development Rolling Resistance Endurance... and the future is under construction RR Certification High-Speed Tyre Uniformity Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 102

Tyre properties with regards to itpms Tyre pressure monitoring legislation current status USA (FMVSS 138) ECE (ECE-R 64) China Active since 10/2005 100% since Sept. 2007 Proposition: Technology neutral Motivation: Safety Detection of -25 % pressure loss from P rec (cold) in 1 up to all 4 tyres 20 min. Learning Phase 20 min. Detection Phase Tyres: OE Tyres OEM Self-Certifying Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 103 Nov. 2012 (New Type Approval) Nov. 2014 (New Registrations) Proposition: Technology neutral and cost effective Motivation: Safety and CO 2 Reduction > 20 min. Learning Phase Safety : 1 tyre at -20% pressure loss from P warm in 10 min CO2 : 4 tyres at -20% pressure loss from P warm (or 1,5 bar) in 60 min Tyres: OE Tyres Homologation Process China has decided to introduce a mandatory TPMS legislation Current draft (May 2014): Detection of -25 % pressure loss from P rec (cold) Detection of pressure loss in 1 tyre in 5 min (Safety) Detection of pressure loss in 4 tyres in 15 min (CO 2 )

Tyre properties with regards to itpms Based on tyre pressure dependent characteristics, all Audi models provide the customer friendly indirect measuring tyre pressure monitoring system RKA+ Together with the tyre manufacturers a rig procedure has been defined to evaluate the itpms relevant tyre properties early and efficient in the tyre development process Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 104

Current development focus Braking Regional market and legislative requirements Fuel efficiency / CO2 Acoustic / Noise Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 105

Current development focus Braking Regional market and legislative requirements Fuel efficiency / CO2 Acoustic / Noise Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 106

Braking distance Braking distance remains in focus as a base for the effectiveness of all new Audi advanced driver assistance systems with regards to accident avoidance and mitigation Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 107

Current development focus Braking Regional market and legislative requirements Fuel efficiency / CO2 Acoustic / Noise Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 108

Regional market requirements Spikes Ice tyres All season tyres V Robust tyres All season tyres H rough road countries Additional special market requirements due to... Commercial reasons for preferred brands Flat-Spot issues in hot countries Image acceptance of certain tyre brands Need of silent tyres for certain countries with harsh road surfaces Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 109

Regional legislative requirements and consumer information Strong impact in vehicle homologation: ECE R51 (Noise) ECE R83 (CO 2 emission) ECE R101 (Fuel consumption) Europe ECE R117 ECE R30 South Korea MKE USA DOT Colombia NTC Brazil INMETRO Argentina CHAS Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 110 Gulf Countries GSO India AIS Japan China CCC Taiwan CNS

Current development focus Braking Regional market and legislative requirements Fuel efficiency / CO2 Acoustic / Noise Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 111

World wide CO 2 regulations USA In force MY 2012-2016 In force MY 2017-2025 Europe In force 2012 2019 In force ab 2020 China In force 2012-2015 Draft 2016-2020 Canada In force MY 2011 2016 In force MY 2017-2025 Japan In force 2010-2015 In force 2015-2020 status of regulation In force Draft Deliberations Switzerland In force 2012-2019 Deliberations for 2020 Saudi Arabia Draft; from 2015 South Korea In force 2012-2015 Draft till 2020 Mexico In force MY 2014-2016 Brazil Targets for 2017 (through Excise Tax) India In force; from 2017 Vietnam In force; from 2015 Taiwan In force ; from 2015 (EPA) In force; from2016 (BOE) Status: October 2014, source: EG-3 Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 112

all manufacturers lokal Import New challenges for the tyre development CO 2 targets - 38% - 38% -37% 212 132 154 95 185 166 117 actual state 2008 target 2020 actual state 2008 target 2020 actual state 2008 source: EG-3 target 2020 C0 2 emission [g/km] for all OEM s Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 113

Rolling Resistance optimizing potential Inner liner 1% Sidewall 5-10% Bead 10-15% Tread 50% 2020 Target 15-20% lower RR without impact on other performances Carcass 5-10% Source: Tyre manufacturers Belt 20% Compounds (Tread, Sidewall, Chafer, Ply) Curing Modeling Casing Crown 2013 RR level Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 114

Rolling Resistance vs. dry handling performance RR Lable according Reg. (EG) 1222/2009 Source: Tyre manufacturers Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 115

Rolling Resistance target conflicts Source: Tyre manufacturers Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 116

Rolling resistance targets Average rolling resistance improvement from current vehicle model to it s successor B-segment C-segment D-segment SUV-segment -11,2% -16,2% -9,8% -6,1% Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 117

Rolling resistance targets Rolling resistance improvement in C-segment from current vehicle model to it s successor over tyre size C-segment 16 inch 17 inch 18 inch 19 inch 20 inch 21 inch Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 118

Current development focus Braking Regional market and legislative requirements Fuel efficiency / CO2 Acoustic / Noise Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 119

Acoustic & Noise, limits in regulation R51 (vehicle noise) 68 Current R51.02 New measurement procedure R51.03 Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 120 J = July

Acoustic & Noise, measurement principle Limit value power train noise tyre-/road noise Surface according ISO 10844/2012 accel. current procedure R51.02 tyre share at noise: ~ 1/3 new procedure R51.03 tyre share at noise: ~ 2/3 Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 121

Tyre requirements for new drive train concepts Market share drive train concepts 2025 75% Conventional vehicles 15% Hybrid vehicles 8% Battery electric vehicles 2% CNG/ LPG driven vehicles Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 122

Tyre requirements for new drive train concepts New drive train concepts increase the overall vehicle weight and tyre load requirements Internal combustion engine Plug-in hybrid electric vehicle Battery electric vehicle Cooling system Drive train Energy storage (fuel, 12V battery) Equipment Body Chassis Overall Cooling system Drive train Energy storage (fuel, batteries) Equipment Body Chassis Overall Cooling system Drive train Energy storage (batteries) Equipment Body Chassis Overall 100% Relative weight increase of new drive train concepts compared to traditional drive train Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 123

Tyre requirements for new drive train concepts The increasing vehicle weight of hybrid or battery electric vehicles require higher tyre load index values This requires the use of XL tyres or even use larger tyres in order to carry the vehicle weight Larger tyres tend to increase the vehicle length, width and height The challenge is to solve the target conflict of the increasing vehicle weight when at the same time keep the existing tyre dimensions This is an effort that can only be solved by the close cooperation of OEMs, tyre manufacturers and norming agencies (ETRTO) Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 124

Summary & Conclusion Tyre development is driven by customer demands, legislative and regional requirements Tyre variance has increased manifold over the last 15 years The increase in tyre requirements and variances has made tyre development much more complex In order to fulfil the higher performance requirements in shorter development times, the development process needs to evolve to an even more efficient process: New technologies are needed Existing standards need to be reviewed Requirement definitions need to be refined already in an early development phase Advanced and efficient testing and evaluation methods need to be applied These challenges can only be mastered, in close cooperation with each other! Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 125

Audi Original Movie Audi Original Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 127

Thank You! Any questions? Dr. Thomas Roscher Audi AG Tire Technology EXPO 2015 128