Aptiv Plc · NYSE:APTV
Aptiv — Investor Day (June 2021)
98 slides from Aptiv's investor day presentation, Jun 28, 2021
Slide 1: Innovation in Motion: Electrification
INNOVATION IN MOTION: ELECTRIFICATION Monday, June 28 | 8:30 AM EDT
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation, as well as other statements made by Aptiv PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performance. Such fo
Slide 3: Aptiv's Right to Play
BILL PRESLEY APTIV’S RIGHT TO PLAY
Slide 4: Aptiv Perfectly Positioned for Greater Vehicle Electrification
APTIV PERFECTLY POSITIONED FOR GREATER VEHICLE ELECTRIFICATION UNIQUE TECHNOLOGY PORTFOLIO 100+YEARS OF AUTOMOTIVE FULL SYSTEM-LEVEL CAPABILITIES ENGINEERING EXPERIENCE NERVOUS SYSTEM SIGNAL & POWER + = SOLUTIONS (S&PS) BRAIN ADVANCED SAFETY & USER EXPERIENCE (AS&UX)
Slide 5: Signal & Power Solutions
SIGNAL & POWER SOLUTIONS GLOBAL ARCHITECTURE AND COMPONENTS LEADER IN: HIGH SPEED / FIDELITY DATA DISTRIBUTION MULTI-VOLTAGE ELECTRICAL DISTRIBUTION AUTOMOTIVE-GRADE INTERCONNECTS ENGINEERED FASTENING SOLUTIONS
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Slide 7: Expanding Leadership Position in Low and High Power Solutions
EXPANDING LEADERSHIP POSITION IN LOW AND HIGH POWER SOLUTIONS LOW VOLTAGE HIGH VOLTAGE Unique design, systems integration, and Leveraging our global scale and capabilities optimization capabilities in low voltage Global footprint and quality manufacturing Content and margin accretive to S&PS and tot
Slide 8: Power Distribution Boxes and Battery Disconnect Units
POWER DISTRIBUTION BOXES AND BATTERY DISCONNECT UNITS HIGH VOLTAGE CABLES CHARGER HIGH VOLTAGE CHARGING CABLE SETS CONNECTORS AND INLETS HIGH VOLTAGE BUSBARS INTERNAL BATTERY CONNECTIONS
Slide 9: Broadest and Most Relevant Portfolio of High Voltage Technologies
BROADEST AND MOST RELEVANT PORTFOLIO OF HIGH VOLTAGE TECHNOLOGIES ADDRESSABLE CPV* LOW VOLTAGE • Low Voltage Wiring TRADITIONAL INTERNAL • Low Voltage Connectors + $500 COMBUSTION ENGINE (ICE) • Cable Management DECREMENTAL CONTENT – Engine Harness – $150 – ICE Device Connector HIGH VOLTAGE + High V
Slide 10: Providing End-to-End Solutions for Vehicle Electrification
PROVIDING END-TO-END SOLUTIONS THAT ENABLE A MORE EFFICIENT PATH TO VEHICLE ELECTRIFICATION FULL SYSTEM-LEVEL CAPABILITIES TECHNOLOGY ARCHITECTURE GLOBAL SCALE & MFG INNOVATION OPTIMIZATION EXCELLENCE
Slide 11: Technology Innovation
*APTIV: CHRIS REIDER TECHNOLOGY INNOVATION INNOVATIONS SOLVING CUSTOMER CHALLENGES
Slide 12: Innovations Solving Customer Challenges
INNOVATIONS SOLVING CUSTOMER CHALLENGES CUSTOMER CHALLENGES FASTER CHARGING RELIABILITY / PERFORMANCE PACKAGING / WEIGHT / COSTS SAFETY / SECURITY
Slide 13: EVSE Chargers
EVSE CHARGERS Certified in
Slide 14: Modular Core Subassembly
MODULAR CORE SUBASSEMBLY
Slide 15: Inlet Thermal Cooling
INLET THERMAL COOLING 59°c Inlet Temp.
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Slide 17: Direct Contact Technology
Direct Contact Technology
Slide 18: Direct Contact Technology
Direct Contact Technology volume decreases
Slide 19: Charging Speeds
CHARGING SPEEDS faster
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Slide 21: Connector Position Assurance
CONNECTOR POSITION ASSURANCE Locked
Slide 22: High Voltage Interlock Loop
HIGH VOLTAGE INTERLOCK LOOP Powered mode
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Slide 24: Metal Shielding
METAL SHIELDING Contains electrical noise
Slide 25: 4-Way & Splice Connectors
4-WAY & SPLICE CONNECTORS
Slide 26: Busbar vs. Cable
BUSBAR vs. CABLE Height Reduction
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Slide 29: Power Distribution Boxes and Battery Disconnect Unit
WER TRIBUTION BOXES BATTERY DISCONNECT UNIT
Slide 30: Smart Charger Interface Controller
SMART CHARGER INTERFACE CONTROLLER
Slide 31: Innovations Solving Customer Challenges
INNOVATIONS SOLVING CUSTOMER CHALLENGES CUSTOMER CHALLENGES FASTER CHARGING RELIABILITY / PERFORMANCE PACKAGING / WEIGHT / COSTS SAFETY / SECURITY APTIV SOLUTIONS • 32 AMP CHARGER • SHIELDED SOLUTIONS • APTIV SPLICE TECHNOLOGY • SMART CHARGING • ACTIVE COOLED INLETS • SEALING AND ARC • BUSBARS INTER
Slide 32: Architecture Optimization
ERIC ROWLAND ARCHITECTURE OPTIMIZATION FULL-SYSTEM SOLUTIONS DELIVER UNPARALLELED SYSTEM OPTIMIZATION
Slide 33: ICE to BEV
ICE > BEV “APTIV:
Slide 34: ICE and BEV Architecture
ICE COMPROMISED + → ARCHITECTURE AND EXTRA WIRING BEV ARCHITECTURE
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Slide 38: Architecture Creation Process
ARCHITECTURE CREATION PROCESS
Slide 39: Architecture Creation Process: Loading OEM Wiring Data
ARCHITECTURE CREATION PROCESS LOADING OEM WIRING DATA
Slide 40: Architecture Creation Process: Enriching and Modeling
ARCHITECTURE CREATION PROCESS ENRICHING AND MODELING
Slide 41: Architecture Creation Process: Analyzing Content
ARCHITECTURE CREATION PROCESS ANALYZING CONTENT I/O DENSITY PER ZONE
Slide 42: Architecture Creation Process: Analyzing Content
ARCHITECTURE CREATION PROCESS ANALYZING CONTENT I/O DENSITY PER ZONE
Slide 43: Architecture Creation Process: Modifying into Zonal Architecture
ARCHITECTURE CREATION PROCESS MODIFYING INTO ZONAL ARCHITECTURE ZONE 1 PDC1 → PDC2 ZONE 2
Slide 44: Architecture Creation Process: Finding Best Variant
ARCHITECTURE CREATION PROCESS FINDING BEST VARIANT EVALUATION METRICS FUNCTIONAL AVAILABILITY AFTER CRASH CRITERION 3 CRITERION 2 CRITERION 4 CRITERION 1 CRITERION 5 CRITERION N Ref mit G Arch 1 mit G
Slide 45: Architecture Creation Process: Results
ARCHITECTURE CREATION PROCESS RESULTS SMART VEHICLE ARCHITECTURE PDC CVC PDC OSP PDC
Slide 46: Benefits
BENEFITS “APTIV:
Slide 47: Benefits: Reduced Complexity
BENEFITS REDUCED COMPLEXITY
Slide 48: Flexible and Scalable Implementation
BENEFITS FLEXIBLE AND SCALABLE IMPLEMENTATION 2023 2025 2028+ SMART ELECTRICAL CENTERS FULL ZONAL FULL SVA™ ARCHITECTURE 10%+ Wiring weight saving 20%+Wiring weight saving 30%+ Wiring weight saving
Slide 49: Flexible and Scalable Implementation: Major North American OEM Study
BENEFITS FLEXIBLE AND SCALABLE IMPLEMENTATION APTIV VALUE MAJOR NORTH AMERICAN OEM STUDY 2023 SMART ELECTRICAL CENTERS REDUCED REDUCED WEIGHT COST 10%+ = 2KG Wiring weight saving Weight savings $40 Cost savings WEIGHT OEM COST
Slide 50: Flexible and Scalable Implementation: Major European OEM Study
BENEFITS FLEXIBLE AND SCALABLE IMPLEMENTATION APTIV VALUE MAJOR EUROPEAN OEM STUDY 2025 FULL ZONAL REDUCED REDUCED ARCHITECTURE WEIGHT COST 20%+ = 8.5KG Wiring weight saving Weight savings $55 Cost savings WEIGHT COST
Slide 51: Flexible and Scalable Implementation: Reduced Weight
BENEFITS FLEXIBLE AND SCALABLE IMPLEMENTATION MAJOR EUROPEAN OEM STUDY REDUCED WEIGHT 9 ECU housings 1893 G 786 G Connector housings Wiring 5869 G 8.5KG Weight savings Brackets Fixation elements (+300 wires removed) Electrical centers Terminals Relays Fuses
Slide 52: Flexible and Scalable Implementation: Full SVA
BENEFITS FLEXIBLE AND SCALABLE IMPLEMENTATION 2028+ – Dock & Lock™ OEM Assembly automation – Flat Backbone wiring FULL SVA™ 30%+Wiring weight saving
Slide 53: Benefits
BENEFITS
Slide 54: Benefits
BENEFITS
Slide 55: Benefits
BENEFITS
Slide 56: Global Scale & Manufacturing Excellence
BILL PRESLEY GLOBAL SCALE & MANUFACTURING EXCELLENCE
Slide 57: Global Scale with Industry-Leading Capabilities
GLOBAL SCALE WITH INDUSTRY-LEADING CAPABILITIES 34 TECHNICAL CENTERS ENABLING APTIV TO DELIVER CONSISTENT PRODUCT AND SERVICE OFFERINGS IN ALL 52 REGIONS MANUFACTURING SITES GLOBALLY
Slide 58: Pererry
Pererry eeceee
Slide 59: Aptiv Addressing Key Customer Challenges
APTIV ADDRESSING KEY CUSTOMER CHALLENGES AUTOMATING MINIATURIZATION AUTOMATING COMPONENTS Component miniaturization and ASSEMBLY increased wire density QUALITY Automation required for AV content specifications LABOR Global labor cost increases and lack of labor availability
Slide 60: Greater Manufacturing Automation
GREATER MANUFACTURING AUTOMATION DISTRIBUTED OR DOMAIN ORIENTED ARCHITECTURE SVATM ARCHITECTURE Complex connections Simple connections Long wires, mega harness Short wires, other partitioning possible 2X AUTOMATION POTENTIAL 20-40% 40-80% Automation potential of wires Automation potential of wires
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Slide 63: Aptiv Providing Tangible Customer Benefits
APTIV PROVIDING TANGIBLE CUSTOMER BENEFITS BETTER QUALITY AUTOMATING AUTOMATING COMPONENTS ASSEMBLY IMPROVED RELIABILITY AND PERFORMANCE ENHANCED PERFORMANCE SIGNIFICANT COST SAVINGS
Slide 64: Partner-of-Choice
JOSIE ARCHER PARTNER-OF-CHOICE APTIV IS A TRUSTED PARTNER TO BOTH TRADITIONAL AND EMERGING EV PLAYERS
Slide 65: Why We Win
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES TECHNOLOGY INNOVATION ARCHITECTURE OPTIMIZATION WHY WE WIN GLOBAL SCALE & MFG EXCELLENCE
Slide 66: Partner-of-Choice: High Voltage Customers 2014
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES HIGH VOLTAGE CUSTOMERS TECHNOLOGY INNOVATION 7 in 2014 ARCHITECTURE OPTIMIZATION GLOBAL SCALE & MFG EXCELLENCE
Slide 67: Partner-of-Choice: High Voltage Customers 2020
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES HIGH VOLTAGE CUSTOMERS TECHNOLOGY INNOVATION 20+ in 2020 ARCHITECTURE OPTIMIZATION GLOBAL SCALE & MFG EXCELLENCE List of customers served is non-exhaustive. Examples only.
Slide 68: Partner-of-Choice: High Voltage Customers 2023
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES HIGH VOLTAGE CUSTOMERS TECHNOLOGY INNOVATION 25+ in 2023 ARCHITECTURE OPTIMIZATION GLOBAL SCALE & MFG EXCELLENCE List of customers served is non-exhaustive. Examples only.
Slide 69: Partner-of-Choice: Optimized Solutions
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES APTIV PROVIDING OPTIMIZED SOLUTIONS: TECHNOLOGY 40% on heavy gauge cables through alternative material technology INNOVATION WEIGHT REDUCTION ARCHITECTURE 30% on traditional gauge cables through routing optimization and more sophisticated cable OPTIMI
Slide 70: Partner-of-Choice: VW ID.Buzz Leading to Follow-On Wins
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES VW ID BUZZ LEADING TO FOLLOW-ON WINS TECHNOLOGY INNOVATION ARCHITECTURE ✓ ID.3 ✓ ID.4 ✓ ID.5 OPTIMIZATION GLOBAL SCALE & MFG EXCELLENCE ✓ ID.6 ✓ ID.BUZZ ✓ ID.VIZZION1
Slide 71: Partner-of-Choice: Emerging Mobility Players
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES EMERGING MOBILITY PLAYERS TECHNOLOGY INNOVATION APTIV ENABLING CUSTOMERS TO: • Execute on their ambitious timelines ARCHITECTURE OPTIMIZATION • Seamlessly expand their product offerings • Grow their global operations • Ramp up in high volume GLOBAL SC
Slide 72: Partner-of-Choice: Factors Enabling Speed to Market
PARTNER-OF-CHOICE FULL SYSTEM-LEVEL CAPABILITIES FACTORS ENABLING APTIV’S SPEED TO MARKET: TECHNOLOGY INNOVATION • Comprehensive portfolio • A modular approach • Cable extrusion expertise ARCHITECTURE OPTIMIZATION • Common engineering and MFG footprint • In-house rapid prototyping capabilities GLOBA
Slide 73: Scalable Capabilities for Entire EV Space
SCALABLE CAPABILITIES FOR ENTIRE EV SPACE APTIV HAS BEEN AWARDED HV CONTENT IN ALL CLASSES Sedan Sedan CUV CUV / SUV / SUV Pick-up Pick-up Commercial Commercial / Delivery Vans / Delivery Vans Semi-truck Semi-truck ENABLING PATH TO SUSTAINABILITY
Slide 74: Positioned for Strong Growth
BILL PRESLEY POSITIONED FOR STRONG GROWTH CUSTOMER INVESTMENT TRENDS ACCELERATING SHIFT TO EVS
Slide 75: OEMs Accelerating EV Plans
OEMS ACCELERATING EV PLANS Increasing investments to Pulling ahead sales Accelerating pace enable faster transition to EVs targets to achieve zero and number of BEV emissions sooner launches BEVs by 2025 (as of Q2 2018) €20B+ through 2030 (as of Q3 2017) $11B+ through 2022 (as of Q1 2018) 50% BEVs b
Slide 76: IHS Has Revised BEV Forecasts Up Since 2015
SINCE 2015, IHS HAS REVISED ITS BEV FORECASTS UP IN RESPONSE TO DECLINING COSTS, INCREASING REGULATIONS, AND WIDER AVAILABILITY BEV Share (%) 24.7 25 Feb ‘21 20.8 20 15.8 Jan ‘20 15 13.2 12.9 Jan ‘19 11.1 10 8.7 7.7 Jan ‘18 5.4 5 3.3 3.3 Jan ‘17 1.9 Jan ‘16 1.4 Jan ‘15 0.9 0 2015 2016 2017 2018 2019
Slide 77: Consensus Building Around BEV Penetration
CONSENSUS BUILDING AROUND BEV PENETRATION OF 10-15% IN 2025 AND 25-30% IN 2030 BEV Share (%) 30 25 Index (forecast 20 publish date) 2021 2020 15 2019 2018 2017 10 2016 2015 5 0 IHS BNEF BCG Avg. of IHS BNEF BCG Avg. of IHS BNEF BCG Avg. of select select select analysts1 analysts1 analysts1 CY 2020 C
Slide 78: Market Outlook & Electrification Penetration Drivers
AAKASH ARORA MARKET OUTLOOK & ELECTRIFICATION PENETRATION DRIVERS
Slide 79: EV Market Evolution
EV Market Evolution JUN 28, 2021
Slide 80: Setting the Stage: xEV Penetration Continues to Rise
Setting the stage | xEV penetration continues to rise Despite lower overall production volumes, additional 2.6M xEVs produced in 2020 Global vehicle Share of xEVs production (M) Year-over-year growth in % xEVs 34% 28% 33% 33% 36% by type (%) 9.9M 100 100 93 95 94 87 89 3% 4% 6% 89 2.4 84 BEV 3% 3% (
Slide 81: BEV + PHEV Sales Penetration Grew Across Markets in 2020
Setting the stage | BEV + PHEV sales penetration grew across markets in 2020 2019 2020 2019 2020 2019 2020 YoY EV (BEV+PHEV) 1.9% 2.3% 2.2% 9.1% 4.9% 6.2% penetration (%) Light vehicles (K) 17,049 14,582 12,345 9,301 21,444 20,178 EVs (BEV+PHEV) (K) 320 332 272 847 1,060 1,242 100 500 200 400 Copyri
Slide 82: Rest of Decade Set Up for More Rapid Shift to Electrified Powertrains
Rest of decade set up for a more rapid shift to fully electrified powertrains than forecasted earlier But more importantly, Regulations Battery costs Increase in the underlying dynamics tightening further in declining faster than availability of accelerated markedly many markets anticipated offering
Slide 83: Regulations Continue to Tighten Across Key Markets
Regulations continue to tighten across key markets CO2 (g/km) Sample countries 220 Average 2000-2020: USA: In Sep '20, CA banned non-ZEV sale by '35, others expected to follow 200 -3% Biden Administration indicating strong renewed China: Hainan to phase out sales of 180 focus on more stringent new I
Slide 84: Advancements in Battery Costs Propel the Industry
Advancements in battery costs continue to propel the industry Nickel-rich battery pack cost ($/kWh)3 200 Pack cost varies by as Approx. average much as 30% for OEMs with 2020 pack cost: 180 relatively smaller ~$145/kWh procurement contracts 160 ~$20/kWh lower 140 than forecasted 136 in 2019 for 120
Slide 85: Tipping Point Right Around the Corner for Midsized Cars
'Tipping point' right around the corner for midsized cars BEV total cost of ownership (TCO) increasingly competitive 5-year TCO, C-segment car ($k) By 2022, 5-year TCO parity is 45 reached; purchasing a BEV is more favorable than ICE over life of 5 years from 2022-2027 40 Tipping point 35 Copyright
Slide 86: OEMs Dramatically Evolving Their Portfolios
In response, OEMs dramatically evolving their portfolios OEMs increasing commitment to electrification Hundreds of NEVs to enter the market by 2025 Selected quotes Major international OEMs’ NEV roll-out plans (not exhaustive) Electrification will be a catalyst for a range of experiences, We are exci
Slide 87: BCG Market Forecast to 2035: Global
BCG market forecast to 2035—Global Share of electrified powertrains surpasses 50% in 2026 Impact of broader mobility trends1 Electrification (%) Volume (M) Regulation-driven TCO driven Supply-driven Actuals 90 2% 2% 1% 80 1% <1% 3% 3% 100 3% 4% 70 1% 1% 2% 2% 3% 9% 11% 14% 17% 20% 24% 28% 5% 6% 7% 4
Slide 88: Europe and China to Lead Global EV Adoption
Europe and China to lead global electric vehicle adoption US volume projections (M units) EU volume projections (M units) China volume projections (M units) 20 20 40 17 16 17 16 16 16 <1% 31 11% <1% 18% 29 <1% 15 14 15 14 30 3% 27 3% 2% 0% 10% 31% 5% 8% 4% 43% 3% 3% 18% 9% 8% 22 40% 54% 62% 1% 22% 6
Slide 89: Climate Implications
Climate implications | Meeting US and EU climate targets will require even faster penetration Parc emissions: Annual emissions from light duty vehicles (M tonne CO2e) Targets & carbon budget (55%) (28%) (50%) (29%) 433 449 1,232 1,137 310 871 Copyright © 2021 by Boston Consulting Group. All rights r
Slide 90: Indicators Point to Growing Consumer Interest
Indicators point to growing consumer interest; ICE price parity likely to further boost purchase likelihood Consumer attitudes are improving Purchase price a key criteria for customer adoption US consumer Attributes holding back EV purchases purchase intent (%) Not enough public charging stations 48
Slide 91: 2025 Component Costs (ICE vs. BEV)
$18.8k $14.5k $9.0k $4.7k By 2025 we expect direct costs on BEVs to $9.8k be ~$4k higher than ICE Copyright © 2021 by Boston Consulting Group. All rights reserved. ICE Vehicle ICE Powertrain Non-Powertrain BEV Powertrain BEV component components components components component costs costs 2025 compo
Slide 92: What Does This Mean for Aptiv?
BILL PRESLEY WHAT DOES THIS MEAN FOR APTIV?
Slide 93: Aptiv Addressable Content in BEVs Expected to Be 2-3X ICE
APTIV ADDRESSABLE CONTENT IN BEVS EXPECTED TO BE 2-3X THE CONTENT IN ICE VEHICLES $18.8k $0.8k Aptiv $1.2k INCREMENTAL S&PS CONTENT content OPPORTUNITY IN BEVS ACROSS • Wiring • Busbars $14.5k $0.5k $0.2k • Connectors $8.1k • Charger Other $17.6k content • PDB $4.5k • BDU $14.0k $9.8k $0.3k $9.5k IC
Slide 94: $25B+ Addressable Market for Aptiv HV Content in 2030
$25B+ ADDRESSABLE MARKET FOR APTIV HV CONTENT IN 2030 MARKET PENETRATION TOTAL ADDRESSABLE MARKET Volume (M units), Global Penetration % High Voltage Components TAM1 ($B) 99 14% 92 11% 25% BEV High 73 4% Voltage 10% 7% 5% 6% PHEV 45% 28% 20% 14% HEV 27 28% MHEV 88% 14 24% ICE / OTHER 4 2020 2025 203
Slide 95: Aptiv High Voltage Electrification
APTIV HIGH VOLTAGE ELECTRIFICATION QUOTING ACTIVITY BOOKINGS REVENUE Lifetime gross program revenues, $ Billions $ Billions, Adj Growth CAGR1 40%+ TARGET $2.5+ 100+ $2.5+ $2.0 $0.9 Q1 2021 $0.5 $0.9 $0.3 $0.3 10 2014 2021 2018-2020 2021 2018 2019 2020 2021E 2025T Average Target 1. Revenue growth exc
Slide 96: Providing End-to-End Solutions for Vehicle Electrification
PROVIDING END-TO-END SOLUTIONS THAT ENABLE A MORE EFFICIENT PATH TO VEHICLE ELECTRIFICATION FULL SYSTEM-LEVEL CAPABILITIES TECHNOLOGY ARCHITECTURE GLOBAL SCALE & MFG INNOVATION OPTIMIZATION EXCELLENCE
Slide 97: SVA: A Sustainable Architecture
SVA™ A SUSTAINABLE ARCHITECTURE VALUE FOR CUSTOMERS VALUE FOR APTIV Improves reliability and system performance Increasing addressable content value Enables assembly automation Enables automation and improved reuse Lowers total system costs Expands competitive moat
Slide 98: Thank You for Attending
THANK YOU FOR ATTENDING Additional questions can be directed to ir@aptiv.com