Automotive Australia 2020

VISION
The Automotive Australia 2020 project would like to thank the following workshop participants.
Their knowledge and insight has shaped this vision of the automotive industry.

Mr Zoran Angelkovski Mr Peter Keley

President and Chief Executive Officer Executive Director, Planning
Continental Pty Ltd GM Holden 
Mr Stan Anson Mr Steve Payne
Senior Adviser Head, Manufacturing Division
Office of Senator the Hon Kim Carr, Minister for Innovation, Department of Innovation, Industry, Science and Research
Industry, Science and Research
Mr Nixon Apple Mr Russell Pettis
National Economics and Industry Advisor Managing Director
Australian Manufacturing Workers Union Australian Automotive Air Pty Ltd
Mr Juergen Bracht Mr Len Piro
Managing Director Executive Director, Manufacturing and Business Services
ZF Lemforder Australia Department of Trade and Economic Development, South
Australia Government
Hon Stephen Bracks Mr Mike Rausa
Australia Automotive Ambassador Senior Divisional Manager, Manufacturing Support
Australian Government Toyota Motor Corporation Australia
Mr Sam Casabene Mr Mike Shnier
Vice President , Purchasing Managing Director
Ford Motor Company of Australia Limited Tenneco Australia and New Zealand
Dr David Charles Mr Gavin Smith
AIIC Chairman Regional President, Powertrain & Chassis Systems Control
Deloitte Touche Tohmatsu Robert Bosch (Australia) Pty Ltd
Mr Barry Comben Mr Terry Stinson
Independent Chairman Chief Executive Officer and Managing Director
Cooperative Research Centre for Advanced Automotive Orbital Corporation Limited
Technology
Mr Tony Ellul Mr Geoff Susans
Business Development Manager Manager, Advanced Manufacturing Industry and Trade Division
Marand Precision Engineering Pty Ltd Department of Innovation, Industry and Regional Development
Prof. Rob Evans Mr Evan Thornley
Director NICTA Victoria Research Laboratory and Professor Chief Executive Officer
of Electrical Engineering Better Place
NICTA and University of Melbourne
Dr Barrie Finnin Dr Gary White
General Manager, Advanced Engineering Components Research Manager
Commonwealth Scientific and Industrial Research Organisation Cooperative Research Centre for Advanced Automotive
Technology
Mr Bruce Grey Mr Hayden Williams
Managing Director National Manager, Automotive and Advanced Manufacturing
Bishop Technologies Austrade

Mr Bruce Griffiths Mr Chris Wong

Executive Chairman Program Manager, Automotive Industry and Trade Division
Futuris Automotive Group Ltd. Department of Innovation, Industry and Regional
Development
 Automotive Australia 2020

Foreword
The Automotive Industry Innovation Council (AIIC) was formed in late 2008 with an objective that includes building innovation
capacity through the nurturing and development of new and existing capability. The achievement of this goal requires
the development of a strategic vision and an associated long term plan. The Australian automotive industry cannot be
internationally competitive on all fronts. There are however, distinctive opportunities where Australia can be competitive in
the short, medium and long term.

The Rudd Government’s New Car Plan for a Greener Future encompasses a $6.2 billion investment which is designed
to reshape Australia’s automotive industry and improve its competitiveness. This funding must be invested strategically to
develop the capabilities that underpin these distinctive opportunities. To clearly identify both these opportunities and the
underlying capabilities, the AIIC has endorsed the development of an industry roadmap.

In July 2009, AutoCRC, in partnership with the Australian National University (ANU) and Australian Commonwealth Scientific
Industrial and Research Organisation (CSIRO), in collaboration with the University of Cambridge, and supported by the
Australian and Victorian Governments, began working with the Australian automotive industry to develop a roadmap to
2020 and beyond – the Automotive Australia 2020 Project.

The development of an Australian automotive industry roadmap has been designed as a six phase programme with each
phase serving to populate a corresponding section of the roadmap. The six phases include:

• Phase 1 – Establishing a vision

• Phase 2 – Defining immediate domestic and long-term future global market need
• Phase 3 – Understanding national capability
• Phase 4 – Identifying key tactical & strategic opportunities
• Phase 5 – Strategic opportunity roadmap development
• Phase 6 – Prioritisation

Phase 1, establishing a vision, identifies a strategic vision for the industry, which is the primary driver for the roadmapping
process. This has been achieved through extensive research, interaction with industry (through interviews and surveys),
and culminated in a one day Vision Workshop. During this workshop a strategic vision for the industry was defined through
the identification of trends and drivers, resulting technology needs and required capabilities. Another key outcome of
this workshop was the definition of broad evaluation criteria which will be used to prioritise both shorter and longer term
strategic opportunities in Phase 4 of the programme.

The Vision workshop was held on the 4th of September 2009, and was hosted by the Victorian Department of Innovation,
Industry and Regional Development. The workshop drew together 26 participants representing significant stakeholders
within the automotive sector and related industries. The active involvement of all participants ensured a successful
workshop process, resulting in significant outcomes. This report summarises these outcomes, which form the focus for the
subsequent phases of the roadmap – Automotive Australia 2020.

Dr Matthew Doolan
Project Manager 
Automotive Australia 2020

Page 3 
Automotive Australia 2020

Table of Contents

Introduction.............................................................................................................................................................................. 5

The Australian Automotive Industry......................................................................................................................................... 5

A Vision for the Automotive Industry....................................................................................................................................... 7

A Roadmap to the Future........................................................................................................................................................ 8

Evaluation Criteria.................................................................................................................................................................. 10

Trends and Drivers................................................................................................................................................................. 11

Technology Needs................................................................................................................................................................. 12

Capabilities. ........................................................................................................................................................................... 13

Next Steps............................................................................................................................................................................. 14

Acknowledgements............................................................................................................................................................... 15

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 Automotive Australia 2020

Introduction
This report presents the vision developed in the first phase of the Automotive Australia 2020 Project. Building on extensive
research and industry consultation, this phase culminated in a Vision Workshop on September 4th, 2009.

The context for the project is outlined in the section below. A vision for the future of the Australian automotive industry is
presented in “A Vision for the Automotive Industry” which includes a graphical overview of identified trends and drivers,
technology needs, and capabilities. This is followed by the evaluation criteria that will be used to assess the opportunities
identified in future phases of the roadmapping programme.

Trends and drivers across short, medium and long time horizons have been categorised and are presented in “Trends
and Drivers”. Customer requirements then lead to the technologies identified in “Technology Needs”. Technology needs
have been categorised and prioritised. These technologies are underpinned by industry capabilities that are identified in
“Capabilities”.

 The outcomes of this first phase form the basis for the remaining five phases, which are outlined in “Next Steps”.

The Australian Automotive Industry

Australia’s automotive industry includes three Motor Vehicle Producers (MVPs) and more than two hundred specialist
component suppliers. The industry’s main activities include production of vehicles, components, engineering, tooling and
design. There is also a vibrant specialised tooling and services industry that comprises in excess of 500 firms that support
large vehicle production in Australia for domestic and export markets.

While the vehicle manufacturing industry in Australia dates back to the late 1890s, it was not until the end of World War
II that serious industrialisation and local manufacturing commenced. At this time local production, which was supported
by subsidies, tariffs and quota systems, climbed to an historical peak of 2 percent of worldwide production. In the 1960’s
increasing national wealth saw major investment and growth in the Australian market. International investment created a
local automotive market that had a variety of brands and products, including multiple manufacturers and assemblers.

As production reached a plateau in the 1980’s, the Australian government initiated a major strategic realignment of the
industry through the Button Plan. This saw a reduction in the number of models produced from 13 to 4 and the gradual
reduction of import tariffs and other industry protection systems. Continuing government support was put in place through
the creation of the Automotive Competitiveness and Investment Scheme (ACIS) replacing the export facilitation and duty
compensation schemes. This approach worked well serving to increase exports of vehicles and components. In addition,
the gradual reduction of tariffs and the strengthening of the Australian dollar against the American dollar have increased the
affordability of imported vehicles across all segments.

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Automotive Australia 2020

In 2002, a Productivity Commission review of the industry concluded that “in recent years, the automotive industry has
transformed itself to become a major exporter and innovator”. The Australian vehicle market is one of the most open and
competitive in the world. The industry employs over 46,000 people (source: ABS) and in 2008 local production volumes
reached approximately 325,000 vehicles (source: DIISR 2008 Key Automotive Statistics). The Australian automotive
2. MOTOR
industry accounts for approximately VEHICLE
0.6 percent of Gross PRODUCTION
Domestic Product.– In
AUSTRALIA
2006, local component producers supplied
Australian MVPs with 75% of their components (worth $4.6 billion).
Figure 2.1.1 Markets for locally produced PMVs and PMV derivatives

450,000

400,000

350,000

300,000

250,000
units

200,000

150,000

100,000

50,000

0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Domestic market Export market

Reference Table 8 Figure 1 – Australian Vehicle Production

Source:
Figure 2.1.2 Value DIISR 2008
of production Key Automotive
of locally Statistics
made PMVs and PMV derivatives

10 severely impacted the global automotive industry resulting in dramatic decreases in sales.
The global economic crisis has
Global climate change is becoming
9 a key issue with growing pressure to reduce emissions worldwide. Coupled with
increasing fuel prices, a resultant
8 shift in consumer preferences towards ‘greener’ products is placing pressure on the
global automotive industry to 7meet rising expectations. Intense competition from emerging automotive players in Asia –
the emerging centre of mass 6of the global light vehicle market, makes conditions for the Australian automotive industry
particularly challenging.
$billion

4
These pressures open up many opportunities, several of which require significant and sustained innovation and investment.
3
The Australian Government’s New Car Plan for a Greener Future provides $6.2 billion of investment to reshape the Australian
automotive industry. Such investment needs to be targeted carefully based on an understanding of the opportunities that
2

will reap real reward for the industry,

1 ensuring its continued development and growth.
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Reference Table 9

Key Automotive Statistics 2008 9

Page 6 
 Automotive Australia 2020

A Vision for the Automotive Industry

Australia’s automotive industry must achieve recognition as a strategic element of the global automotive
industry to be attractive to global companies and their investors. Australia must have a sustainable,
profitable vehicle manufacturing industry with global reach that maximises opportunities in local and
international markets. The industry must be bigger, more productive, and provide more jobs in the
manufacturing and supply sectors. This can be achieved through leveraging existing strengths and
building new capabilities.

Australia has a globally integrated industry including three vehicle manufacturers and more than 200 specialist suppliers
with the capacity to develop a vehicle from concept to release. The industry is capable of producing cars that excite
consumers in local and overseas markets through environmental compliance, safety excellence and value for money. By
aligning development with leading technologies, Australian suppliers can develop and expand distinctive global leadership
positions in key systems and components, assuring the long term survival of the industry. Excellence in design, development
and implementation of new technologies, combined with an increasingly flexible labour force, will result in developing and
expanding export markets for Australian products and expertise.

Through advanced green car initiatives with global export potential, Australia can become one of the world’s leading
designers and producers of competitive, large, powerful, zero emission passenger vehicles. This game changing initiative
will use Australia’s strategic strengths and capabilities, supported by investment attraction and focused government support,
and will meet the identified and emerging needs of the global automotive market. By leading development in this segment,
Australia will own a greater portfolio of IP and become the industry of choice for design, engineering and testing of globally
desirable fuel efficient and environmentally responsible products.

As concerns over environmental challenges and energy security drive increased public awareness of emissions and efficiency,
a paradigm shift is looming in the automotive market. A radical shift presents opportunity to benefit from a fundamental
change in strategy and vision, but emerging economies with large automotive sectors are becoming increasingly competitive
for investment dollars in the global industry. These are significant challenges for the Australian industry, but a commitment
to long term development targeting vital gaps in technology and capability will lead to a sustainable, innovative growth
industry. This revitalised automotive industry will create more wealth and more skilled, well paid jobs for Australians.

Page 7
Automotive Australia 2020 Automotive Australia 2020

AARoadmap
Roadmap to
to the Future
the Future
The
Therealisation
realisationofofthe
the vision
vision for
for the automotiveindustry
the automotive industryisisrepresented
represented
in in
thethe roadmap
roadmap below.
below.

Emissions
Emissions& & Energy
Energy
Scarcity
Scarcity
& &Industry Industry
Capability Overseas
Overseas
Markets
Markets
& & Advances
Advances Infrastructure
Infrastructure Customer
Customer
Requirements
Requirements
Efficiency
Efficiency Security
Security Capability Competition
Competition in Technology
in Technology & Government
& Government Customers
Customers
demand
demand
vehicles
vehicles
thatthat
are:are:
Trends & Drivers

Trends & Drivers

Support
Support

More individual niche and

More individual niche and
Growing markets in BRIC
Growing markets in BRIC

Fueling infrastructure for

Increased environmental
Increased environmental

More Globally Appealing

More Globally Appealing
R&D expenditure above
R&D expenditure above

IN, TH, MX, SK, BR, RU

IN, TH, MX, SK, BR, RU
Transition to an energy
Transition to an energy

More affordable to buy

More affordable to buy
Competition from: CN,
Competition from: CN,

Fuelling infrastructure
80% reduction in CO2
80% reduction in CO2

Increasing price of oil

Increasing price of oil

utilisation of capacity
utilisation of capacity
environmental issues
environmental issues

Gaseous fuel storage

Gaseous fuel storage
Advances in wireless
Advances in wireless
Development of new
Development of new
issues driving policy
issues driving policy

Automotive industry
Automotive industry
Manufacturing shift
Manufacturing shift

Advances in energy
Advances in energy

for alternative fuels

storage technology
storage technology
Energy and carbon
Energy and carbon
Social pressure on
Social pressure on

production (2050)
production (2050)

More Comfortable
More Comfortable
Restructuring and
Restructuring and
R&D driving rapid
R&D driving rapid

Continued under-
Continued under-

support schemes
schemes
of electricity grid
of electricity grid

More Convenient
More Convenient
Improved vehicle
Improved vehicle

away from China

away from China
Strict emissions
Strict emissions

alternative fuels
alternative fuels

alternative fuels

More Integrated
More Integrated
Development of
Development of
technology, ICT
technology, ICT

Transformation
Transformation
(>$140/barrel)
(>$140/barrel)

OECD average
OECD average
driven market
driven market

More Flexible
More Flexible
consolidation
consolidation

management
management
regulations
regulations

technology
technology
awareness
awareness

economies
economies
efficiency
efficiency

materials
materials

Greener
Greener

exciting
exciting
support

and run
and run
change
change

Safer
Safer
1 1 Reduced weight of body & chassis structure & components; Advanced lightweight materials; Increased use of structural composites The table at left presents
2 2 Reduced aerodynamic drag through body & running gear design
3 3 Common systems and modules across brands (Invisible to customers) the linkages between
Body & Chassis
Body & Chassis 5
4 4 Flexible and reconfigurable vehicle concepts identified trends and drivers
5 Smart regenerative braking for safety
6 6 Globally competitive niche platform and technology needs.
7 7 New design concepts take advantage of constraints for alternative fuel vehicles
8 8 Comfortable vehicles featuring technologies including: highly damped materials, noise insulation, enhanced HMI design
Key:
9 9 Development of alternative fuels, gaseous fuels (including CNG, LPG, LNG, H2) and systems for onboard storage and distribution
Identified Technology Needs
Identified Technology Needs

10 10 Driver – Technology Relationship

Reduced weight of driveline components & systems; Advanced lightweight materials
Driveline (Internal
Driveline (Internal 11 11 Engine downsizing and boosting Strong
Combustion)
Combustion) 12 12 Petrol direct injection; LPG, CNG Direct injection
13 13 Flexible, reconfigurable vehicle concepts Medium
14 14 Reduced weight driveline components & systems; Advanced lightweight materials
Minimal
15 15 Lithium, Lithium-Polymer, Lithium Iron Phosphate batteries; Advanced battery chemistry and design
Driveline (Non
Driveline Internal
(Non Internal16 16 Electric vehicle driveline and drive systems; High efficiency, high power, low cost electric motors
Combustion)
Combustion) 17 17 Onboard energy generation for range extension
18 18 Flexible, reconfigurable vehicle concepts
19 19 Standard interfaces (USB, A2DP, HDMI, etc.)

Electrical & Control 20

& Control
Electrical 21
20
21
Integrated intelligent transport systems (Traffic & safety management, reduced travel times, reduced fuel consumption); Vehicle-vehicle, vehicle-infrastructure protocols and systems
Convenient, easy recharging systems
Systems
Systems 22 22 Integrated control, information and safety systems (Autonomous); Driver health & alertness monitoring; Seeing car integrating IR, Ultrasound, radar, augmented reality
23 23 Low power consumption accessories
24 24 Design for weight reduction; Increasing use of common systems; High strength aluminium alloy processes for large cars; High strength aluminium alloys; Advanced lightweight materials
25 25 Vehicle safety standards and testing
Manufacturing,
Manufacturing, 26 26 Improved simulation to reduce prototyping
Engineering
EngineeringServices
Services27 27 Reduced drag coefficient design
28 28 Artificial intelligence process control & monitoring
& Materials
& Materials 29 29 Focus investment on core engineering and other reusable investments
30 30 Flexible and reconfigurable vehicle concepts

1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 `

Lightweight materials Capabilities have also been linked to market

Aluminium/Magnesium casting & forming; High pressure magnesium casting
Body & Chassis
Body & Chassis Corner module, spring, damper – design, development and manufacturing; Integrated friction & electric braking; Braking systems including ABS/ESC needs and these linkages have been
Seating systems and interior design for lightweighting; Instrument panel design
Gaseous fuels and drivetrain – design, development and manufacturing; Gaseous fuel storage technology
presented at left. The needs have been
Identified Australian Capabilities

Driveline (Internal
Driveline (Internal numbered according to their position in the
Identified Australian Capabilities

Combustion engine boost and efficiency; Direct injection diesel technology; Exhaust systems – design, development and manufacturing
Combustion)
Combustion) Electric-integrated drivetrain (medium to large)
previous figure.
Lightweight materials; Aluminium, magnesium casting & forming
Batteries and power systems development; Lightweight batteries
Driveline (Non
Driveline Internal
(Non Internal Integrated electric drivetrain (medium to large)
Key:
Combustion)
Combustion) Gas storage technology
Lightweight materials Technology – Capability Relationship
Instrumentation and driver HMI design and integration; Internal data and communication systems
Electrical & Control
Electrical & Control Driver condition and state monitoring
Strong

Systems
Systems HVAC systems Medium
Battery and power systems
Advanced tooling capability; Rapid tool development Minimal
Manufacturing,
Manufacturing, Materials development; Experimental foundry for lightweight, low cost materials; Environmental sustainability in design & manufacturing
Engineering Services
Engineering Services Established, flexible engineering sector; Manufacturing flexibility. Low volume,; Education system & R&D; Strategic planning & visioning;
Innovative & efficient robotics and automation; Software development; Traffic & accident scenario modelling
& Materials
& Materials
Rapid technology deployment, speed to market; Digital mockup and computer aided testing
Small population, skilled adaptable, engineering capability; Sc&T represent ~38% of labour resources; Workforce becoming more flexible; Strong education system, and research and development infrastructure
Other
Other Australian
Australian Linkages in global industry; ‘Smart’ reputation in economic management & fundamentals
Resources
Resources
Natural resource endowment; Per capita GDP on par with 4 dominant West European economies
Battery charging infrastructure; Hydrogen liquid & gas manufacture

Figure
Figure22––Linkages
LinkagesofofTrends
Trends&&
Drivers, Technology
Drivers, Needs
Technology andand
Needs Capabilities
Capabilities

Page 8  Page 9
8 
 Automotive Australia 2020

Evaluation Criteria
Beyond setting a vision, the workshop participants developed evaluation criteria. Focusing on aspects of the attractiveness of
opportunities and their fit with Australian capability, the following criteria have been identified as they apply to two time horizons:
the short-term (next vehicle model) and longer-term (new car plan and beyond). Opportunities identified in the following phases
of the programme will be prioritised against these criteria.

Short-term Opportunities
Opportunity Attractiveness
Next vehicle model
• Meets needs of next model year vehicles
– Global accessible market size
Key: – Australian accessible market size
• Market open to local suppliers
Opportunity • Meets the immediate industry financial imperative for
Significant market & strong capability cash flow and profit
• Potential for low risk early market testing learning in
attractive long term sectors

Technology Need and Attractiveness

Low High
• Supply base competitiveness to meet
Current Automotive Capabilities

Critical Success Factors

Fit with Australian Capability

• Supply base capability to supply

Good

(including capacity, financial and

management capabilities)
• Criticial mass and importance of
Australian supply chain
• Potential for long-term sustainable
competitive position
• Partnerships with China for technology
and trade
Poor

Figure 3– Short-term opportunity evaluation criteria

Long-term Opportunities
Opportunity Attractiveness
New car plan and beyond
• Meets needs of next model year vehicles
– Global accessible market size
Key: – Australian accessible market size
• Opportunity to establish and protect leadership position
Opportunity • Likelihood of technical feasibility
• Potential to sustainably deliver industry triple bottom line:
Significant market & strong capability
Economic, Social & Environmental Performance (Profit,
People and Planet)

` Global Technology Need and Attractiveness

Low High
• Fit with Australian capabilities:
Current Automotive Capabilities

– Global accessible market size

Fit with Australian Capability

– Alignment with future Automotive

Good

supply base consolidation

– Non-Automotive supply chain
– Science Base
– Human and Natural Resources
• Global alliances and alignment with
international standards
Poor

Figure 4– Long-term opportunity evaluation criteria

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Automotive Australia 2020

Trends and Drivers

The Australian automotive industry is influenced by internal and external forces. These external forces, realised as trends,
will determine the technology required in the automotive industry to 2020 and beyond. The trends and drivers, as deemed
most relevant by the participants, can be categorised into six key focus areas: Emissions & Efficiency; Energy Scarcity &
Security; Industry Capability; Overseas Markets & Competition; Advances in Technology; and Infrastructure & Government
Support. Within these categories, the workshop participants identified the most relevant trends and drivers and their relative
importance as presented in Figure 5.
2009 – 2011 2012 – 2015 2016 – 2020 Beyond 2020
Increased public awareness of environmental issues driving consumer behaviour Energy economics drive consumer behaviour. Consumers developing willingness to pay for efficiency.
Emissions Social pressure on environmental issues, leading to political pressure on policy and funding
and
140g per kg CO2 target 120g per kg CO2 target 90g per kg CO2 target target 80% reduction in Australian CO2 production
Efficiency
Trend toward more efficient, lighter vehicles. Accelerated adoption of electric vehicles. Accelerated adoption of diesel.

Energy Oil price peaks >$140/barrel Transition to an energy driven automotive market
Scarcity &
Policy driven by energy and carbon emission issues Alternative technologies become cost competitive
Security

Australia has capability to take car from concept to release Research and Development driving change and redefining possibilities
Australian Continued under-utilisation of production capacity in the automotive industry
Industry
Continued under-utilisation of production capacity in the auto industry Restructuring and consolidation of smaller firms Commitment to long-term Australian R&D expenditure at levels substantially above OECD average
Capability
Imported content as a percentage of value increased to 60% Increased expansion by Australian suppliers and manufacturers into export markets, reduced reliance on domestic markets

Growth markets in developing Asian economies, particularly China and India

Overseas Continued under-utilisation of production capacity in the automotive industry Manufacturing shift away from China & India
Markets &
Significant competition from China, South Korea
Competition
Emerging competition from India, Brazil, Russia, Thailand, Mexico

Materials development: Low cost, low mass, low waste

Advances Wireless communications Advances in ICT (speed, size, cost, increasing wireless)
in
Advances in energy storage – batteries, supercapacitors Advances in gaseous fuel storage technology
Technology
Development of alternative fuels

Increased public awareness of environmental issues driving consumer behaviour

Infrastructure
& Government Green car fund, ACIS scheme, etc.

Support Development of fuelling infrastructure for LPG, CNG, LNG

Key: Low Priority High Priority

Figure 5 – Prioritised Trends and Drivers.

Trends and drivers are linked to technologies by customer demands. Though this link can be made implicitly, the workshop participants
identified nine key areas of customer requirement. Identified customer requirement areas are presented in Figure 6.

Greener — Consumers demand uncompromising green cars and are reluctant to sacrifice size or performance. Social pressure on environmental issues has created a market for large, efficient vehicles
Safer — Safety excellence has become a prerequisite for vehicle sales
More flexible — To accommodate demands of individualisation, comfort and convenience, flexible vehicle designs and architectures are important
More integrated — Integrated infrastructure and communications systems will increase safety while reducing fuel consumption and travel time
Customer
More convenient — New vehicles and systems must be convenient through all lifecycle phases: purchase, use, servicing and disposal
Requirements
More comfortable — Physical comfort can be improved using new interfaces, and vibration and noise damping
More affordable to buy and run — Energy costs are becoming an increasingly relevant economic driver
More individual, niche and exciting — Consumers are increasingly demanding niche vehicles and individual customisation options
More globally appealing — A vehicle that appeals to a global market will be immediately applicable to customers in emerging and developing economies like the BRIC nations

Figure 6 – Customer Requirements.

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 Automotive Australia 2020

Technology Needs
Technologies will be applied or developed to respond to trends and drivers. The workshop participants identified a wide
range of technologies which have been categorised according to the automotive systems or manufacturing processes
where they will be applied. These systems include: Body & Chassis; Driveline (Internal Combustion); Driveline (Non-IC);
Electrical & Control Systems; and Manufacturing, Engineering Services & Materials. In the same way as the trends and
drivers, the technology needs identified by the participants have been distributed across four time horizons and have been
prioritised as shown in Figure 7.

2009 – 2011 2012 – 2015 2016 – 2020 Beyond 2020

Reduced weight of body & chassis structure & components Advanced lightweight materials

Smart regenerative braking for safety Reduced aerodynamic drag through body & running gear design Flexible and reconfigurable vehicle concepts
Body &
Common systems and modules across brands (Invisible to customers) New design concepts take advantage of constraints for alternative fuel vehicles
Chassis
Comfortable vehicles featuring technologies including: highly damped materials, noise insulation, enhanced HMI design, etc. Globally competitive niche platform

Increased use of structural composites

Development of alternative fuels (ethanol), gaseous fuels, (CNG, LPG, LNG, H2) including vehicle fuel injection, vehicle storage and distribution infrastructure.
Driveline
Reduced weight of powertrain components & systems Advanced lightweight materials
(Internal
Engine downsizing and boosting Flexible, reconfigurable vehicle concepts
Combustion)
Petrol direct injection LPG, CNG Direct injection

Reduced weight driveline components & systems Advanced lightweight materials

Driveline Lithium, Lithium-Polymer, Lithium Iron Phosphate (LiFePO4 ) batteries Advanced battery chemistry and design

(Non-IC) High efficiency, high power, low cost electric motors Electric vehicle driveline and drive systems

Onboard energy generation for range extension Flexible, reconfigurable vehicle concepts

Standard interfaces (USB, A2DP, HDMI, etc.) Integrated intelligent transport systems. Traffic & safety management. Reduced travel times, fuel consumption Integrated control, information and safety systems (Autonomous)

Vehicle-vehicle, vehicle-infrastructure protocols and systems Driver health & alertness monitoring Advanced batteries
Electrical &
Control Systems Convenient, easy recharging systems Low power consumption accessories Seeing car integrating IR, Ultrasound, radar,
augmented reality

Design for weight reduction Advanced lightweight materials

Manufacturing, Increasing use of common systems Improved simulation to reduce prototyping Flexible and reconfigurable vehicle concepts
Engineering
High strength aluminium alloy processes for large cars Reduced drag coefficient design Focus investment on core engineering and other reusable investments
Services &
High strength aluminium alloys Convenience in vehicle purchasing, use and ownership
Materials
Vehicle safety standards and testing Artificial intelligence process control & monitoring

Key: Low Priority High Priority

Figure 7 – Prioritised Technology Needs.

Driven by trends and drivers, these technology needs will help in achieving Australia’s strategic vision. To realise these
technologies, the enabling capabilities must exist. Current capabilities need to be identified along with critical gaps relating
to future strategic opportunities.

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Automotive Australia 2020

Capabilities
The Australian industry provides capabílities to realise identified technology needs. In the short term, technologies can only
build on existing capabilities. As timelines stretch into the future, research capabilities can develop into production capacíty.
The workshop participants identified a subset of important capabilities existing in the Australian industry as well as a number
of emerging capabilities. These have been categorised, according to relevant automotive systems, in the same manner as
technology needs. The participants then identified priority areas as presented in Figure 8.

2009 – 2011 2012 – 2015 2016 – 2020 Beyond 2020

Lightweight materials Aluminium/Magnesium casting & forming

Corner module, spring, damper – design, development and manufacturing

Body &
Seating systems and interior design for lightweighting Integrated friction & electric braking
Chassis
Braking systems including ABS/ESC Instrument panel design

High pressure magnesium casting

Lightweight materials Aluminium, magnesium casting & forming Gaseous fuel storage technology
Driveline
Gaseous fuels and driveline – design, development and manufacturing
(Internal
Combustion engine boost and efficiency Direct injection technology
Combustion)
Exhaust systems – design, development and manufacturing Electric-integrated driveline (medium to large)

Driveline Lightweight materials Integrated electric driveline (medium to large) Gas storage technology

Batteries and power systems development Lightweight batteries

(Non IC)

Electrical Battery and power systems HVAC systems Driver condition and state monitoring

& Control Instrumentation and driver HMI design and integration

Internal data and communication systems

Systems

Established, flexible engineering sector in global top 25% Materials development Education system & R&D infrastructure Rapid technology deployment, speed to market

Engineering & Strategic planning & visioning Manufacturing flexibility. Low volume, many variants Environmental sustainability in design & manufacturing

Manufacturing Advanced tooling capability Experimental foundry for lightweight, low cost materials Rapid tool development Digital mock-up and computer aided testing

Development and implementation of advanced design and analysis software (FEA, CFD, CAD, CAM)

Innovative & efficient robotics and automation Software development Traffic & accident scenario modelling

Small population, skilled adaptable workforce, engineering capability Workforce becoming more flexible

Other ‘Smart’ reputation in economic management & fundamentals Natural resource endowment Battery charging infrastructure

Australian Linkages in global industry Per capita GDP on par with 4 dominant West European economies

Resources Science & technology represent ~38% of labour resources Strong education system and research and development infrastructure

Hydrogen liquid & gas manufacture

Key: Low Priority High Priority

Figure 8 – Prioritised Australian Capability.

Capabilities and Technology Needs that have been identified in the workshop will provide baseline data in the following
phases of the Automotive Australia 2020 project. The remaining phases of the programme are outlined in the following
section – Next Steps.

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 Automotive Australia 2020

Next Steps

Phases 2 & 3: Understanding Global Technology Needs and Australian Capabilities

An important output from the Vision Workshop has been to establish the most promising technology opportunity areas and
strongest capabilities for the Australian Automotive Industry, identified in sections 4 and 5. These will be refined through
further detailed discussions with the MVPs, suppliers and other stakeholders and used to focus the data gathering during
phases 2 – Understanding Technology Needs and 3 – Understanding National Capability. These will involve over 200
surveys and interviews across the industry, science and technology base. Key areas for investigation will be quantifying
these opportunities and understanding the factors that will be critical for success, and researching relevant capabilities and
assessing their strengths and competitive position.

Phase 4: Matching Needs and Capabilities

The objective for the Automotive Australia 2020 Roadmap is to identify opportunities where Australia can be competitive
in the short-term and longer-term (2020 and beyond) horizons. In both timescales it will be important that attractive
opportunities are supported by matched Australian capabilities and resources, whether these are currently deployed in
the automotive sector or elsewhere. Only by building on the foundations of these distinctive capabilities will a sustainable
and differentiated competitive position be established. Phase 4 of the programme will establish these “matching points”
in workshops covering each of the time horizons; with the outputs reviewed by the AIIC in a final workshop to maximise
the linkages between short and long term opportunities. The prioritisation will be achieved using a portfolio approach
embracing the evaluation criteria developed in the Vision Workshop (see page 10)

Phases 5 & 6: Roadmapping Opportunities to Action

Phase 5 of Automotive Australia 2020 programme will develop detailed roadmaps towards the implementation of the
prioritised strategic opportunities; identifying necessary enablers such as skills, funding, policy and technology development.
These will then be reviewed by the AIIC in phase 6 to prioritise investment decisions.


  

 

  



 
             


 
 


     


   



   

 
     
    
    


   
 





     


  

   

 



  

 


   
     
    
    

   

  
  




  



 
  
 




      

 
 
   




   
  

  


  


                


   
 
    

  
  







 
  

 
 
  
 




       

 
 
   



   
 
 
  


 



  

  
   



 
     
 
 


 
 


 
 
 

 
  



       

   
  
   

 








  

 

 










    
  
  

   
 
  
  




   
   
     
 







  

 



 
  
 
 


  

 
  

  

    





 



    

   


 

 




 

 

 





Figure 9 — Automotive Australia 2020 Program Phases

  

Page 14 
Acknowledgements
Automotive Australia 2020 would like to acknowledge the contributions of the following partner organisations:
Further Information
An appendix containing supplementary information will be available,
on request, through the Automotive Australia 2020 website. For further
information, please visit www.autocrc.com/2020.htm or contact the
Automotive Australia 2020 Project Office at:

AutoCRC
Suite 1/3 Westside Avenue
Port Melbourne VIC 3207
Tel: +61 3 9681 8626
Fax: +61 3 9673 5999
Email: automotiveaustralia2020@autocrc.com