Oak Ridge National Laboratory ORNL Automotive R

1
Oak Ridge National Laboratory (ORNL)Automotive
RD Initiative

• 2006 Tennessee Valley Corridor
• National Summit
• Benjamin J. Ritchey, Battelle Memorial Institute
• June 1, 2006

2
Who Am I?

• Vice President, Battelles Transportation and
  Economic Development Practices
• Battelle Memorial Institute Battelle
• Non-Profit Research and Development Firm
• Headquartered in Columbus, Ohio
• 3 billion in revenue annually
• Battelle and the University of Tennessee
  co-manage US DOEs Oak Ridge National Laboratory
  (ORNL)

3
Short-Term Assignment for ORNL

• Outline ORNLs Automotive RD Strategy for Dr.
  Jeff Wadsworth (ORNL Director) and Dr. Jim
  Roberto (ORNL Deputy Director Science and
  Technology)
• Analyze the components of the Southern Automotive
  Cluster and compare to the Midwest Automotive
  Cluster
• Determine a strategy for ORNL and interested
  Southern universities to conduct research and
  development-related activities for the automotive
  industry
• Identify potential opportunities to explore with
  the automotive cluster/industry that will help
  position the southern region for long-term
  economic development

4
ORNLs Automotive RD Goals and Visions

• ORNLs Goal and Position

• Lab of the South

ORNLs Science Vision

• Provide scientific leadership to generate
  research, development, test/ evaluation, and
  problem-solving activities for the automotive
  industry while working with Southern universities

ORNLs Economic Development Vision

• Enhance the automotive industrys growth and
  diversity of activities in the South

5
ORNLs Automotive RD Strategy

• Working Group of Southern Universities
• Auburn University
• Clemson University
• Mississippi State University
• University of Alabama Birmingham
• University of Alabama Tuscaloosa
• University of Kentucky
• University of Tennessee
• Working Group Hosts TVA and ORNL
• TVA, Amy Bunton, General Manager, Economic
  Development
• ORNL, Tom Ballard, Director of Economic
  Development and Partnerships

6
ORNLs Automotive RD Strategy

• The end goal is to catalyze economic development
  in the South by focusing on automotive RD. To
  be successful, we must
• Determine the strategy of a Southern Automotive
  Research Development initiative for the
  purposes of aligning diverse research
  capabilities and expertise
• Identify the economic development and innovation
  strategies necessary to expand and diversify the
  automotive industrys presence in the South

7
Automotive Clusters The Midwest Versus the
South
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Automotive Industry Market Size

• The U.S. car and light truck automotive market
  was valued at over 400 billion in 2004
• The U.S. has the largest share of the global
  market

Global Market Share by Region, 2004 (of 1,072b)
Source Datamonitor Numbers have been rounded
9
Automotive Clusters Automakers

• Currently, the automakers produce cars light
  trucks in 71 plants nationwide
• 64 of these plants, or 90, are located in the
  Midwest and South

Car Light Truck Assembly Plants
Car Light Truck Assembly Plants
Midwestern Cluster 37 Plants
Midwestern Cluster 37 Plants
20
Southern Cluster 27 Plants
Southern Cluster 27 Plants
Additional plants are located in Delaware,
Kansas, Texas, and New Jersey
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Automotive Clusters Midwest vs Southern
Production

• The Midwest Cluster is the largest producer
• However, production is increasing in the South
  and declining in the Midwest

US Car and Light Truck Production,
2001-2004 (thousands of units)
Source Wards 2005 Market Data Book Numbers have
been rounded
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Trends Shift in Manufacturing Location

• Automotive manufacturing is expected to continue
  to increase in the South for reasons such as
• The population shift to the South, where the
  majority of new cars are being purchased
• Automakers build cars close to their primary
  markets to reduce shipping costs
• Low wages
• Non-unionized labor
• Educated workforce
• Good, affordable power supply
• Large, affordable tracts of land
• Incentives

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Trends Transplant RD Sites

• The Japanese transplants, for example, have
  traditionally located their RD primarily in
  Michigan, or near corporate U.S. headquarters

Current Locations of Select Transplant RD
Facilities
Manufacturing
RD
U.S. Headquarters
Source Japan Automobile Manufacturers
Association
13
Conclusions

• Production and market size are increasing in the
  Southern Cluster, while declining in the Midwest
• In addition to population growth, the South
  offers economic manufacturing advantages over the
  Midwest, such as lower wages, non-unionized
  labor, and affordable power
• The transplants, based primarily in the South,
  may continue to grow at the expense of the Big 3
• Traditionally, automakers locate RD in Michigan
  and/or near their headquarters, rather than with
  manufacturing facilities. However, opportunities
  are available in unique areas of excellence to
  become a player.

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Conclusions

• Over 85 of automotive RD is conducted in
  Michigan
• The state has more than 215 automaker and other
  RD organizations, including engineering,
  research, new product development, design, and
  testing facilities
• Michigan still appears to be the place of choice
  for RD
• The State of Michigan is specifically targeting
  automotive RD to replace the loss in its
  manufacturing sector
• Both Toyota and Hyundai recently opened new RD
  centers in Michigan

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Honda Case StudyCase in Point
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Hondas 25-year Evolution

• Honda has developed in Ohio from a motorcycle
  assembly plant in 1978 to what has become the
  companys North American Manufacturing,
  Engineering and Logistics Hub today.
• Currently, Hondas Ohio Hub focuses on
• Manufacturing
• Production Engineering
• Research and Development
• Purchasing
• Logistics
• Quality Assurance

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Conclusions of Honda Case Study

• Hondas growth, expansion, and diversity of
  activities (including RD) in Ohio has led to
  significant economic development
• 16,049 Ohioans employed by Honda in 2003 with
  total wages exceeding 1.1 billion annually
• 154 Ohio companies are suppliers to Honda,
  employing 40,776
• The Honda Case Study can serve as a roadmap for
  the South as the region focuses on RD strategies

18
ORNLs Automotive RD Strategy(Work in Progress)
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ORNLs Automotive RD Strategy

• Process to determine RD strategy
• Determine business case for automotive RD
• Understand current automotive RD needs/issues
• Focus on leading edge RD issues and needs
  requiring unique science/engineering support
• Inventory expertise/facilities (ORNL/Universities)
  
• Understand current automotive RD assets at
  ORNL/Universities
• Match research expertise to RD needs
• Develop ORNL RD strategy including leadership,
  industry interactions, needed expertise/facilities
  , implementation plan, and monitor progress

20
ORNLs Automotive RD Strategy

• Work with automotive industry to identify
  leading-edge research and development
  opportunities that require unique science and
  engineering support

• Strategic Objective

• Energy Security
• Global Warming/Air Quality
• Passenger Safety
• Consumer Preference

Automotive Industrys Commitment to Advance
Technologies will impact
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ORNLs Automotive RD Strategy
Potential Leading-edge RD Opportunities
(Interviews with automotive industry continues
need to finalize focus areas.)

• Energy/Propulsion Technologies
• Advances in fuel injection and lean burn
  technologies, particularly fog-type injectors
• Diesel NOx after-treatment technologies
• Battery improvements for hybrids
• Production, distribution, safety, delivery, and
  onboard storage of hydrogen
• Fuel cell technologies, including real-time
  imaging of water in a cell
• Electronics
• Improved sensors for accident prevention
• Large scale electronics integration
• Software development in a complex, highly
  integrated environment
• Managing widely varying product life cycles
  within a vehicle

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ORNLs Automotive RD Strategy

• Simulation capabilities to demonstrate the
  integrated vehicle
• Stronger, more robust software development tools
• Inter-vehicle electronics communication
  technologies to support intelligent
  transportation
• Materials
• Formability issues of light weight materials
• Joining and bonding of light weight materials
• Corrosion issues (Magnesium)
• Material failure knowledge
• Advanced manufacturing and design
• Material behavior modeling
• Nano-technology related to light weight
  components, fuel cells, and batteries
• Safety of nano-particles in manufacturing

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ORNLs Automotive RD Strategy

• Thank you for inviting me.
• I look forward to a return visit to provide a
  completed automotive RD strategy, implementation
  plan, and progress to date.
• Contact Information

Thomas B. Ballard Oak Ridge National
Laboratory Director Economic Development
Partnerships [phone] ph ballardt_at_ornl.gov
Benjamin J. Ritchey Battelle Vice
President Transportation Economic Development
Practices [phone] ph ritchey_at_battelle.org
Amy H. Bunton Tennessee Valley Authority General
Manager Economic Development [phone]
ph abunton_at_tva.gov