Automatic Transmission Fluids 08 -27 -03 2009

Automatic Transmission Fluids 08 -27 -03 © 2009 The Lubrizol Corporation AT 100 -001

Automatic Transmission Fluids Agenda • • • 08 -12 -08 Function and Formulation of ATF AT Market Drivers AT Designs North American OEM Updates Summary © 2009 The Lubrizol Corporation ATTemp-009

Mechanics Automatic Transmission Technology or torque converter Driveline image courtesy of www. How. Stuff. Works. com 10 -30 -08 © 2009 The Lubrizol Corporation AT 101 -041

Mechanics Automatic Transmission Technology Automatic Transmission Components and How they Work Torque Converter Hydraulic System Reproduced by kind permission of ZF Friedrichshafen AG 02 -10 -09 © 2009 The Lubrizol Corporation AT 101 -042

Function of ATF Performance -ANTI-SHUDDER -OXIDATIVE STABILITY -COMPONENT COMPATIBILITY 10 -30 -08 © 2009 The Lubrizol Corporation AT 102 -003

Formulation of an ATF Base Fluid VM Performance Additive 05 -21 -07 Higher severity No Group I base oils allowed! Group II, II+ and III base oils Predominately Group II+ & III Shear stability Next generation performance Shudder resistant © 2009 The Lubrizol Corporation AT 103 -014

Formulation of an ATF Typical Automatic Transmission Fluid Component % Volume Trend Additive package Friction modifiers Oxidation inhibitors Detergents/dispersants Corrosion inhibitors Anti-wear Seal swell agents Anti-foam 10 -12 % Friction Durability/ Shudder Resistance Sludge Resistance Oxidation Resistance/Friction Shudder Resistance Decreased Gear Wear Better Seal Compatibility Viscosity modifier 3– 8% Very Shear Stable Base oil 80 – 90% Group II & III base oils; Better Low Temp Red dye 250 PPM Red Dye 08 -12 -08 © 2009 The Lubrizol Corporation AT 103 -002

Formulation of an ATF Lubrizol Friction Modifier Systems Type Low Static Friction (Traditional) High Static Friction (LZ Generation III) Properties: Low static μ Higher surface saturation More thermally stable Advantages: Controls green friction Friction durability Excellent anti-shudder Excellent torque capacity Simplistic Structure: Two-tail structure saturates surface; leads to higher static friction 02 -10 -09 © 2009 The Lubrizol Corporation AT 103 -016

Formulation of an ATF Dialing in the Correct Friction Performance High Static Friction LOW µ terg Low Static & Torque Converter Shudder Medium Static Friction & Stability FM 1 A FM De ent 6 FM Low Static Durability HIGH µ 3 FM 2 5 FM Anti-shudder Durability FM FM 4 High Static Durability 1 Friction Stability Running in & Shift Quality Mixtures of high μ and low μ are customized for a variety of friction materials. 02 -10 -09 © 2009 The Lubrizol Corporation

ATF Market Trends 02 -28 -03 © 2009 The Lubrizol Corporation AT 116 --001

Market Trends of ATF Market Drivers • Fuel economy • Transmission requirements becoming more demanding − Increased driver comfort & reliability • Reduced maintenance costs − Fill for life fluids 05 -21 -07 © 2009 The Lubrizol Corporation AT 116 -042

Market Trends of ATF CAFE Cost to OEM • Heightened pressure to increase lightduty CAFE − CAFE is sales –weighted average fuel economy rating − 27. 5 mpg for passenger car * − 22. 2 mpg for light duty trucks * • Each 0. 1 mpg over CAFE limit carries $5. 50 fine per vehicle 1. 0 mpg…. . $55 per vehicle * * www. nhtsa. dot. gov 08 -12 -08 © 2009 The Lubrizol Corporation AT 116 -043

Market Trends of ATF Fuel Economy Contribution of AT • Design a more efficient transmission − Lighter − More aggressive lock-up (ECCC) − Utilize a lower viscosity fluid • Operates at its most efficient gear ratios − 6 & 7 Speed transmission − CVT or IVT − AMT − DCT 10 -30 -08 © 2009 The Lubrizol Corporation AT 116 -044

Market Trends of ATF Low Viscosity Fluids • Typical ATF − 7. 0 – 7. 5 c. St @ 100° C • Low viscosity ATF − 5. 5 – 6. 0 c. St @ 100° C • Theoretical Gain = 0. 1 mpg • Small change for driver, but significant for CAFE 08 -12 -08 © 2009 The Lubrizol Corporation AT 116 -045

Automatic Transmission Fluids Two Main Product Types Standard Viscosity (>6. 8 c. St) − − − 05 -21 -07 Chrysler ATF+4 Ford Mercon V Toyota T-IV Honda Z-1 Nissan Matic-J Low Viscosity (5. 5 – 6. 5 c. St) − − − © 2009 The Lubrizol Corporation MB NAG-2 Ford Mercon SP Ford LV GM Dexron-VI Toyota WS ATTemp-017

Market Trends of ATF Automatic Transmission Designs are Changing Market Driver – Reduced Emissions and Improved Fuel Economy 1948 - Present Conventional or Stepped Transmission (AT) • • • 09 -28 -05 Mid 1990’s Belt Drive Continuously Variable Transmission (CVT) 2002 6 -Speed Conventional Automatic Transmission (AT) 2004 Dual Clutch Transmission (DCT) Conventional Stepped Automatics − Lock-up AT − More available speeds (6 & 7 Speed) Continuously Variable Transmissions Automated Manuals − Dual Clutch © 2009 The Lubrizol Corporation AT 116 -020

Market Trends of ATF Transmission Designs Efficiencies Improving Fuel Economy AI-May 2002 AEI-May 2002 04 -08 -05 © 2009 The Lubrizol Corporation AT 116 -030

Driveline Hardware, Fluid and Market Driver Overview of Driveline Components Estimated Global Market Share (%) for Transmission Types Transmission Type 2010 2015 Geographic Region MT 50 47 43 Europe, China, India AT 46 41 37 North America Japan and Korea CVT <1 6 7 Asia Pacific DCT <1 4 10 Europe AMT 02 -10 -09 2005 2 2 3 Europe © 2009 The Lubrizol Corporation AT 116 -060

Formulation of an ATF Unique Automatic Transmission Fluid Component Friction modifiers Anti-wear Oxidation inhibitors Detergent/dispersants Corrosion inhibitors Seal swell agents Anti-foam ATF Paper on steel CVT (versus ATF) Steel-on-steel (Paper on steel) EP/AW similar to MTF Paper on steel but very strong anti-shudder performance for wet start clutch EP/AW similar to MTF (synchronizers, more bearings than ATF) Similar to ATF Need improved anti-foam Viscosity modifier Very high shear stability Red dye Not included in CVTF 02 -10 -09 DCT (versus ATF) © 2009 The Lubrizol Corporation More shear stable than ATF Not usually included in DCTF AT 103 -002

ATF Specification Update SF and OEM FF 02 -10 -09 © 2009 The Lubrizol Corporation ATTemp-027

Automatic Transmission Fluids Specification Timeline 1992 Revised MERCON Ford Type A/B Type F/G 1987 MERCON 2004 Upgraded MERCON & MERCON-V Released MERCON-SP 2005 MERCON-C 1995 MERCON-V 2007 MERCON LV 1960 1950 1970 1967 DEXRON 1957 TASA General Motors 10 -30 -08 1973 DEXRON-IID 1980 1990 DEXRON-IIE 1993 DEXRON-IIIF 2000 1997 DEXRON -IIIG 2010 2005 DEXRON-VI 2003 DEXRON-IIIH 1995 DEXRON-IV (never formally released) © 2009 The Lubrizol Corporation ATTemp-028

General Motors ATF Specifications Factory Fill (FF) since 2006 • DEXRON VI • Low viscosity fluid (6. 0 c. St) • Improved low temp performance, shear, and friction stability 08 -13 -08 Service Fill (SF) • DEXRON VI • Obsolete SF Specs − Dex II (sold in Europe and Latin America) − Dex IIIG (Dec 2006) − Dex IIIH (Dec 2007) © 2009 The Lubrizol Corporation AT 110 -053

Ford Motor ATF Specifications Service Fill (SF) Factory Fill (FF) since 2007 • MERCON LV (FWD) • MERCON LV − Low viscosity fluid (6. 0 c. St) • MERCON V − Each additive supplier − Improved low temp allowed single DI performance, shear and − Lubrizol 9680 series friction stability • MERCON SP − RWD 5 and 6 speed • Obsolete SF Specs − MERCON (July 1, 2007) 02 -10 -09 © 2009 The Lubrizol Corporation AT 112 -038

Chrysler ATF Specifications Factory Fill (FF) since 2003 • ATF+4 Service Fill (SF) • MOPAR ATF+4 − Lubrizol 3300 A − All major oil marketers • Certification through program testing • Obsolete SF specs − ATF+3 (2006) 10 -30 -08 © 2009 The Lubrizol Corporation AT 115 -022

Asia-Pacific OEM Highlights Toyota ATF: Hyundai T-IV (4/5 speed ATs, 7 c. St) WS (6 speed ATs, 5. 5 c. St) CVTF: TC ATF: SP-III (7 c. St) CVTF: coming Mistubishi Honda ATF: Z-1 (7 c. St) CVTF: HMMF ATF: SP-III (7 c. St) CVTF: SP-III Nissan ATF: Matic J (7 c. St) CVTF: NS-2 DCTF: new 08 -13 -08 © 2009 The Lubrizol Corporation AT 122 -033

European OEM Highlights Volkswagen-Audi Group (VAG) ATF: LT 71141 (5 -speed ZF, 7 c. St) 1375. 4 (6 -speed ZF, 6. 5 c. St) DCTF: Direct Shift Gearbox (DSG) Daimler. Benz ATF: NAG-2 V-sport (6. 5 c. St) BMW ATF: 1375. 4 (6 -speed ZF, 6. 5 c. St) DCTF: Getrag transmission 08 -13 -08 © 2009 The Lubrizol Corporation AT 122 -034

Lubrizol SF ATFs Dex IID Dex III Mercon 9636 G Ccurrent Merc V ZF/Voith /MAN 9678 Old Merc V JASO Zone 1 9680 9684 Zone 2 7907 9679 Zone 4 1067 9636 G 9678 02 -10 -09 © 2009 The Lubrizol Corporation AT 124 -047

Market Trends of ATF Summary of Global ATF Trends • Improved fuel economy and reduced emissions are driving transmissions trends toward higher efficiency transmission options − Asia Pacific region: CVT − Europe: AMT/DCT − North America: 6 -Speed AT • The most recent transmission requirements suggest that specialized fluids will be required in the future − Lower viscosity, higher shear stability, and improved anti -wear performance − Better low temperature properties − Increased oxidation performance − Extended anti-shudder durability 08 -12 -08 © 2009 The Lubrizol Corporation AT 116 -053

Market Trends of ATF Summary of Global ATF Trends • Transmission applications are changing with consumer demand • Expect the proliferation of ATFs to continue well into the future as fluids are tailored to the specific transmission design to enable maximum gains in system performance • Many OEM’s moving toward “genuine fluid” approach • Oil marketers looking for simplified product lines to meet a range of AT applications. Lubrizol will provide our customers with a range of products to meet their increasingly rigorous requirements. 08 -12 -08 © 2009 The Lubrizol Corporation AT 116 -057

© 2009 The Lubrizol Corporation