1. ELV Directive BRAKENET 21/03/02

2. KGP Research Projects • KGP is an automotive industry specialist consultancy • Large proportion of its work is in technology based market segments: • Close involvement in international OE and AM braking business

3. KGP Research Projects cont. • Typical recent projects: • OE technology and market acceptance assessment of new disc technology - global • Materials type and usage study - Europe • AM customer satisfaction benchmarking - Europe • AM distribution strategy - Europe • AM marketing distribution strategy - N America

4. KGP experience in ELV • SMMT Compliance Company • SMMT Government Policy • Sewells Conference • Supply Chain Issues in the ELV Industry

5. Overview of Directive Objectives: • To increase rate of reuse & recovery to 85% by 2006 and 95% by 2015 • To increase rate of reuse and recycling to 80% by 2006 and 85% by 2015

6. Overview of Directive cont. Main Requirements: • To design & produce vehicles that facilitate recycling • To restrict use of heavy metals in vehicles from 2003 • Producers to meet all or part of costs of implementing free take back system • To increase use of recycled materials in vehicle manufacture

7. Key Issues For VM’s: • Financing take-back system • Problem of “orphan brands” • Design for recycling • Historic car parc

8. Key Issues cont. For Suppliers: • Increasing use of recycled materials in component manufacture • Developing applications for non-metallic materials • Material coding – EU wide standards? • R&D costs • Parts marking

9. Key Issues cont. For dismantlers: • Removal and segregation of non-metallic materials • Receiving ATF status For shredders: • Minimising shredder residue

10. Proposed UK Policy • DTI Consultation Paper gave three options: 1) Brand-specific contractual scheme 2) Tonnage target scheme 3) Hybrid scheme

11. Proposed UK Policy cont. Industry Alternative: • SMMT’s “Option 4” • Majority of support, but not unanimous • Trade & Industry Select Committee suggests more dialogue is needed

12. Implementation • 2002 for new vehicles • 2007 for all cars in parc • DTI has suggested bringing 2007 deadline forward

13. Actions to reach conformity VM’s: • Preparation of dismantling information • Ensuring take back system is in place • Information for suppliers

14. Actions to reach conformity cont. Operators/Workshops: • Collection systems for old parts

15. Actions to reach conformity cont. Suppliers: • Identification of materials – IMDS? • Assessing materials applications that need changing • Restriction of hazardous material usage • Increase in recyclate use

16. Actions to reach conformity cont. Dismantlers: • Improve depollution techniques • Investments in equipment etc. • Meeting requirements to become ATFs Shredders: • Improve technologies for material extraction from shredder residue

17. Supplier Concerns Issues raised during previous KGP research: • Cost implications • Dialogue with customers (VM and Tier 1)

18. ELV and Braking Systems Key Issues: • Avoiding heavy metals e.g. lead, chromium etc • Ease of fluid removal from brakes and shock absorbers • Design for recycling

19. Future technologies Brake-by-wire Systems: • Electro-mechanical • Electro-hydraulic

20. Conclusions • Case for improved communication/dialogue in OE supply chain • Identification of development costs for design for recycling • Pressure for material re-use