MAGNESIUM: SETTING A NEW PARADIGM IN MASS REDUCTION MERIDIAN LIGHTWEIGHT TECHNOLOGIES - IMPROVING THE FUEL ECONOMY OF OUR AUTOMOBILES

MAGNESIUM: SETTING A NEW PARADIGM IN MASS REDUCTION MERIDIAN LIGHTWEIGHT TECHNOLOGIES - IMPROVING THE FUEL ECONOMY OF OUR AUTOMOBILES

AGENDA SETTING A NEW PARADIGM IN MASS REDUCTION 1. MAGNESIUM & HIGH PRESSURE DIECASTING 2. MAGNESIUM PRODUCT IMPLEMENTATION 3. TECHNOLOGY ROADMAP 1. ALLOYS 2. PRODUCT DESIGN 3. GALVANIC CORROSION 4. COATINGS 5. FASTENING / JOINING 6. BUSINESS PROCESS 4. CHRYSLER PACIFICA LIFTGATE CASE STUDY

MAGNESIUM 8 th most abundant element on the planet Magnesium is the lightest of all metals with a density of 1.7g/cm3 (106.13lb/R3), approximately ⅓ less than aluminum. Magnesium plays a central part in the manufacture and use of compeyng metal, provides ducylity in Al Advantages of magnesium alloy use: Be\er strength to weight rayo than aluminum Can be cast thinner, faster and machined easier than aluminum Dampens vibrayons Provides ElectromagneYc interference reducyon Full recyclability and ample availability

HIGH PRESSURE DIECASTING = High Speed + High Volume ProducWon Provides the most complex, highly integrated shapes in a single process step Fast cycle Ymes are ideal for high volume producyon quanyyes Parts are durable and dimensionally stable, while maintain Yght tolerances Hundreds of thousands of casyngs can be produced before addiyonal tooling is required

PRODUCT DEVELOPMENT TIMELINE Meridian has been designing and manufacturing magnesium automowve components for 30 years 1985 1987 1990 1994 1998 2001 2003 Transfer Case Steering Column Components Pedal Bracket Cross Car Beams Seats Front of Dash Transmission Case 2003 2005 2005 2006 2008 2009 2010 Center Console Header Bow Front End Structures Engine Cradle Steering Armatures Oil Pans (Aluminum) Li_gates

Targeted Magnesium Applica=ons / Industry Timeline Applica=ons Kg Saved 2017 2018 2019 2020 2021 2022 INTERIOR APPLICATIONS Steering Armatures Steering Column Housings Pedal Bracket Cross Car Beam Seat Frames BODY APPLICATIONS Front End Structure LiRgate Inner Door Inner ConverYble Header CHASSIS APPLICATIONS Engine Cradle POWERTRAIN APPLICATIONS Transmission Case Transfer Case Engine CasYngs Internal Trans. CasYngs Engine Mount.75 kg.5-1 kg 2 kg 5 kg 6-30 kg 3 kg 10 kg 10-20 kg 1.5 kg 9 kg 4 kg 3 kg 3 kg 1.5 kg 1 kg ImplementaYon Ready (60-94 kg saved) Shock Tower (3 kg) Under Development (31 kg saved) Underbody CasYngs (10 kg) Tailgate Inner (5 kg) Ba\ery Tray (10 kg) Unassigned (36 kg saved) Wheels (10 kg) Pillar Structures (10 kg) Cross Member (10 kg) Control Arm (3 kg) Knuckles (3 kg) Poten=al Mass Saved (127-161 kg)

TECHNOLOGY AND SPECIFICATIONS ROADMAP Magnesium intensive automowve applicawons ALLOYS PRODUCT DESIGN GALVANIC CORROSION General use CasWng process limits Environment ElongaWon High Temperature SpecificaWons Tolerance capabiliwes Secondary process s SpecificaWons TesWng methods ApplicaWon soluwon sets SpecificaWons COMPLETE COMPREHENSION OF MAGNESIUM SpecificaWons SpecificaWons SpecificaWons E- Coat Self threading fasteners Tier 1 strategy Powder coat Bonding / Welding Prototyping / ValidaWon Paint Rivets / Self piercing rivets CAE correlawon & methods COATINGS FASTENING BUSINESS PROCESS

2017 CHRYSLER PACIFICA LIFTGATE

INTRODUCTION AND FEATURES 2017 Chrysler Pacifica Li_gate The Lightweight liugate assembly consists of: Magnesium alloy die- cast inner structure Two- piece aluminum sheet upper and lower outers Aluminum stamping wiper reinforcement Magnesium Inner Savings provided: ReducYon in pieces from 7 to 1 ReducYon in weight from 24 lbs. to 15.1 lbs. from previous generayon Allows for total assembly weight reducyon of 22 lbs. nearly a 50% weight reducyon.

MAGNESIUM ALLOYS Material Property Comparison Non- ferrous, die cast alloys have the range of mechanical properyes required for most automoyve applicayons. ALUMINUM MAGNESIUM PROPERTY 356- T6 SANDCAST A380 SILAFONT- 36 AZ91D AM60B AE44 MRI153 MRI230D Tensile Strength (MPa) 228 324 283 240 225 245 250 245 Yield Strength (MPa) 186 159 138 160 130 142 170 180 ElongaYon 5.0 3.5 5.0-11.0* 3.0 8.0 10.0 6.0 5.0 Density (g/cm 3 ) 2.68 2.74 2.64 1.81 1.80 1.82 1.82 1.82 ElasYc Modulus (Gpa) 69 71 75 45 45 45 45 45 *requires heat treatment

MAGNESIUM ALLOYS AM60B Performance CapabiliWes Simulated displacement characteris=cs of an offset rear impact crash event tested on a concept magnesium prototype cas=ng The liugate is a key structural component of the vehicle Provides structure to resist intrusion and maintain occupant safety Absorbs energy or can transfer loading ElongaYon (%e) of magnesium cast alloy is sufficient to pass most severe crash tests Low strain rate sensiyvity Improves opymizayon opportuniyes

MAGNESIUM ALLOYS Nominal Wall Thickness 80% of the cast magnesium inner panel is at a nominal wall thickness of 2.3mm Since it is cast instead of stamped, we are able to develop variable thicknesses and use ribbing

PRODUCT DESIGN CAE CorrelaWon & Methods / SWffness Maximizes Sec=on Modulus CAE op=miza=on tools were used during early design due to minimize deflec=on under sta=c loading with least mass: Minimize usage of material for material addiyons by maximizing the secyon of the casyng through computayonal analysis Two topology op=miza=ons completed: 1. Ribbing pa\ern that maximizes enyre secyon 2. Ribbing pa\ern is designed to ensure fluid drainage and not to interfere with the seal surface Restric=ons Seal Surface / Fluid Drainage A number of these op=miza=on modifica=ons were incorporated into the final design to: Improve NVH by over 16Hz in bending from previous generayon Increase torsional syffness over alternayve materials

PRODUCT DESIGN Packaging The liugate structure is a key component to package numerous components of the vehicle: Provides structure and packaging space for mechanical / electrical devices, power and signal distribuyon Design of liugate inner op=mized for magnesium die- cas=ng: Speaker boxes designed in lower poryon of casyng to mount rear speakers Local ribbing and thickness addiyons allowed for design of tail lamp housing Tail lamp housing allows for access to electrical connecyons of the lamp through an access panel and designed clearance holes in the casyng Speaker box Tail- lamp housing

GALVANIC CORROSION Hinge Assembly HINGE DESIGN The lirgate inner is considered to be in a dry area of the vehicle, the hinge assembly is the only component where corrosion was a concern. Galvanic corrosion is a concern when mag is connected to another metal in presence of an electrolyte Contact far bigger issue than surface corrosion An aluminum isolator was inserted between the magnesium casyng and the steel stamping.

CURRENT GENERATION FASTENING, JOINING & ASSEMBLY Reduced joining technologies from 84 to 10 PREVIOUS GENERATION Magnesium casyng inner Aluminum sheet outer panels (upper and lower) Aluminum stamping wiper reinforcement Mass reduc=on Part reduc=on Joining reduc=on Cas=ng replaces: 7 steel stampings including reinforcements in hinge & latch areas 2 plasyc pieces ConsolidaYon to one casyng reduces joining technologies from 84 to 10 (6 rivets and 4 welds)

COATINGS Powdercoat Cas=ng is coated with Alodine 5200 and PPG PCT99106 Powdercoat in- house at Meridian Powdercoat primer verified for compaybility with the FCA assembly plant paint system Provides protecyon for the zinc phosphate baths in the BIW e- coat process from magnesium dissoluyon Acts as a layer of corrosion protecyon for the casyng. CompaYble with and serves as a clean and consistent surface for hem / glass panel adhesive bonding ConducYvity is maintained to aluminum panels/brackets through hinges and regions by masking prior to the pre- treatment process

BUSINESS PROCESSES CollaboraWve Process DIE 1 DIE 2 DIE 3 Mg Diecast Inner CASTING CASTING TRIM TRUING MULTIPLE CAVITIES STREAM INTO ONE PROCESS SAND / BUFF POWDER COAT MEASURE, EVALUATE SHIP TO TSA The lirgate closure inner casyng is a collaborayon between Fiat Chrysler Automobiles, Meridian Lightweight Technologies and Thai Summit America Corp. and represents the first high- volume Magnesium applicayon of its kind in the automoyve industry Outer Stampings and Hemmer FIBER PATCH BRACKETS WIPER HEM INNER AND OUTER PANEL MEASURE, EVALUATE SHIP TO FCA OEM ASSEMBLY PLANT

CASTING OF THE YEAR Comprehension of magnesium in automowve applicawons INTERNATIONAL MAGNESIUM ASSOCIATION 2016 Award of Excellence AMERICAN FOUNDRY SOCIETY 2016 Metal CasYng Design & Purchasing CasYng of the Year NORTH AMERICAN DIE CASTING ASSOCIATION 2016 Magnesium CasYng over 0.5 lbs.

CONCLUSIONS In summary, the 2017 Chrysler Pacifica Magnesium li_gate inner is the result of successful implementawon of a comprehensive magnesium strategy. Alloys Product Design Galvanic Corrosion Fastening CoaYngs Business Process

COMPANY PROFILE

WE ARE THE LIGHTWEIGHT HEAVYWEIGHT Meridian is the leading full service supplier of innovawve lightweight magnesium die cast components and assemblies in the global automowve market. Magnesium and Aluminum alloy casyng capability World s largest producer of magnesium components Die casyng magnesium since 1981 Over 1,600 dedicated employees 7 global manufacturing sites In- house design and advanced engineering 63 total die- cast machines from 500 to 4,500 tons 28 die cast machines 2,500 tons and over Secondary machining, coayng, and assembly capabiliyes

GLOBAL FOOTPRINT Meridian Lightweight Technologies Noinghamshire, UK Manufacturing Coahuila, Mexico Manufacturing Eaton Rapids, MI Manufacturing Plymouth, MI Business Development Strathroy, Ontario Global Technology Center 2 Manufacturing Facili@es Munich, Germany Business Development Xinchang, China Manufacturing Shanghai, China Manufacturing 4 North American Manufacturing Sites 1 European Manufacturing Site 2 Asian Manufacturing Sites 3 InternaYonal Sales Offices