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Automotive News World Congress

What’s the status of the China automotive industry and where are the opportunities for

growth?

Robert J. Remenar President and CEO, Nexteer Automotive

Company Profile ! Global Headquarters: Saginaw MI ! 2011 Revenue: $2.2B ! 10,000+ global employees (as of Dec 2011) ! Products:

!  Electric Power Steering, !  Hydraulic Power Steering, !  Steering Columns, Halfshafts

! Global Customers: !  60+, GM, Ford, Chrysler, Fiat, BMW,

Toyota, PSA Peugeot-Citroen and India-China OEM’s!

What PCM Bought

" Support Nexteer’s growth as a premier steering & driveline supplier – capture more of untapped global and Chinese share

" Capitalize on conversion to EPS

" Chinese domestic parts suppliers lagging

" Build a global reputation in critical, green products

Business Thesis

!"#"$

! HQ moved to China

! Production shipped to China

!  Investment only in China

!  IP, engineering moved to China

! Management out

!"##$

! HQ remains local Employment up

! Balanced investment globally

! R&D HQ remains local Engineering up 30%

! Management remains

! Global production jobs added

Year One: Perception vs. Reality

" Chinese are not mysterious, not different - Needs are the same

PROFITABLE GROWTH

BUSINESS EXCELLENCE

Year One Lessons

" Committed to the industry and success

" Bring knowledge, capital and better access to new markets

" Learning from each other - and how to communicate with one

another

" Investment helped save Nexteer

Chinese Investment Here To Stay

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“China Autos: Transition to an Innovative Industry”

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2012 Automotive News World Congress

Jack Perkowski

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ASIMCO Technologies – at a glance

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Products for Commercial Vehicles

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JFP Holdings Ltd. “A Merchant Bank for China”

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Access to Capital:

Getting the Strategy Right:

Implementation:

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China’s 12th Five Year Plan – Key Objectives

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Transition from “Made in China” to “Designed in China.”

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Overview of China’s Position

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WTO Entry: A Key Inflection Point Three Phases of China’s Domestic Automotive Industry Growth (Units in millions of vehicles)

* Refers only to cars; excludes SUVs, MPVs, and crossover vehicles

Local Assemblers Are Gaining Market Share

Passenger Car Market Shares in China* (by origin of technology)

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Conventional Vehicles: Only the Tip of the Iceberg

V E H I C L E S / T R A N S P O R TAT I O N

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C O N C L U S I O N S

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CHINA MARKET

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China’s Natural Market: 5.7 Billion People

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Chinese Assemblers: International Expansion

!  China’s exports of vehicles increased by 53% to 867,000 units in 2011

!  Great Wall

!  Chery

!  Brilliance

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!  Major export markets: Southeast Asia, Middle East/North Africa, Russia and Poland

!  Chery is exporting to 64 countries

Egypt, Iran, Malaysia, Russia, Indonesia, Vietnam, Senegal, Bulgaria, Venezuela, Philippines

Egypt, Iran Malaysia

Egypt, Iran, Malaysia, Russia, Ukraine

Summary of Major Trends

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Business in China – Available Reports +

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