1. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Automotive Industry Study Use of Industry Associations and Analysts in Supplemental Reporting Susan M. Hinds, CEO & President

2. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Scope of Analysis- Key Players Industry Associations JD Powers Analyst Supplemental Information Sources PWC Global Review The Harbour Report Internal Management

3. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Key Success Factors Auto Industry KEY SUCCESS FACTORS WHO MEASURES THIS QUALITY JD Powers, Harbour Assoc, Industry Hawks, Internal Mgmt. COST Internal Mgmt, Harbour, Industry Hawks DESIGN JD Powers, RL Polk SERVICE JD Powers, Internal Mgmt.

4. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC JD Powers and Associates“The Voice of the Customer” Founded in 1968, global marketing info. services firm focused on helping businesses & consumers make better decisions through credible, meaningful, and easily accessible customer-based information. Proprietary Research J.D. Power and Associates conducts custom research and customer satisfaction measurement and tracking on a proprietary basis. Clients gain access to weekly, monthly, or quarterly data to measure their performance over time and identify areas for improvement. Proprietary services include: quality tracking; sales tracking; retailer quality audits; customer satisfaction tracking; and certification programs to ensure compliance with predetermined industry benchmark standards • INDUSTRIES SERVED • Automotive - Boats - Travel • - Finance/Ins - Telecom - Homes • - Healthcare

5. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC JD Powers Awards • JD Powers surveys millions globally & provides awards: • Information is compiled into rankings on product quality, customer satisfaction, and industry-specific metrics • Highest ranking companies can license the use of name • The award program provides consumers better information in their purchasing decisions • AUTOMOTIVE FOCUS • New-vehicle quality - The shopping experience • - Sales satisfaction - Service satisfaction • Brand loyalty - Online consumer behavior - Emerging technologies - Component quality • - Long-term durability - Collision repair

6. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC The Harbour Annual Report “The Voice of Manufacturing” • Harbour Consulting Inc.- Founded 1980, internationally • recognized mfg. & mgmt. consulting firm focused on • Improving competitiveness of mfg. companies by: • Lean Business Operations • Product & Process Development • Cooperative Benchmarking Studies • Competitive Research James Harbour Chairman & Founder • The Harbour Report- A guide to competitive analysis: • Comprehensive analysis of Auto Manufacturing • Data supplied directly by each mfg (KPI & process) • Strengths & Weaknesses by company • Key Performance Indicators & strategic analysis • Major causes of profit variation by manufacturer Ron Harbour President

7. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Voluntary Benchmarking Process-All Major Players Participate

8. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Harbour and Associates Role

9. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Global Automotive Financial Review Annual Report PricewaterhouseCoopers has published its fourth annual Global Automotive Financial Review providing an overview of automotive industry trends and financial reporting practices. The report is based primarily on information from the annual reports and Form 10ks for fiscal years ending during 2000 and early 2001 for leading manufacturers and automotive suppliers around the world. The Review includes 4 articles summarizing (1) major trends which influenced financial results in the industry; (2) movement toward value reporting; (3) challenges and solutions for sustainability in the industry; and (4) the continued focus on shareholder value. The Review also presents a series of charts and graphs highlighting important ratios and performance metrics used by industry executives and analysts, as well as quotes from industry chairmen on topics such as e-business transformation, economic and market forces, strategies for success, enhancing shareholder value, and predictions.

10. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Industry Associations Lacks integration & standards

11. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Analyst Community Space DaimlerChrysler AG (DCX) Example Lacks Independence

12. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC Company’s Internal Management“Profitless Prosperity” Mindset Key Industry Concerns: Global Platforms, Hyper-Competition, Incentive Wars, Consolidation, Disruptive Technology (Alt. Fuel), Outsourcing, Productivity • EXISTING INFRASTRUCTURE- VARIES BY COMPANY • 5 year plans linked to annual budget • Annual budget linked to KPI’s linked to incentive systems • Business planning & competitive intelligence • Benchmarking studies • Continuous Improvement goals and measurement systems • Business process reengineering & IT deployment • Cost accounting (process focused) • Lean accounting (used in some OEM’s) • CRM & Market Studies • Risk management systems • Capacity & Utilization forecast/measurements systems

13. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC EBR Impact & Positioning • Industry Associations • Fragmented niche players • Opinion shopping • Lacks integration • Costly duplication Analyst -Lacks independence -Confusing analysis -Inconsistent opinions among analyst groups -Subjective interpretation & extrapolation • JD Powers • Lacks critical issues focus • Market confusion on interpreting measurements • Lacks standards/definitions • Data ownership/entrenched EBR Framework Integration Standards Guidelines Measurements XBRL enabled PWC Global Review -Lacks market segment analysis -Macro view mfg -KSF not the focus -Sales focus missing • The Harbour Report • Lacks independent assurance • -Enables mfg not investor decisions • -Data ownership/entrenched • Internal Management • Need standard benchmarks • Industry paying for excess • Comparability/Segments • Continuous improvement

14. © 2004 STRATEGIC MANAGEMENT HARMONY, LLC INDUSTRY ANALYSIS • Target industries with a specific reason(Filter Criteria: In Pain, Proactive Leadership, Public Comments, Commercial Viability, Regulation Target, Large Institutional Investors) • Analyze the infrastructure that exists • Understand & identify where gaps exist and where EBR helps/adds value • Sell the target audience from their perspective Target Analyze Understand Sell