The Culture of Quality

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North America The Culture of Quality ….an influence on Premium Interiors Division ContiTech of Continental AG Peter A. Evans Vice President CBU NAFTA Benecke-Kaliko AG

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North America “You have to know the past to understand the present” Dr Carl Sagan “ The Devil is in the Details.” German Proverb Division ContiTech of Continental AG

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North America Division ContiTech of Continental AG Geert Hofstede, an organizational psychologist, developed a survey by studying IBM employees in 40 different nations. From the survey, he derived dimensions that he then used to categorize the 40 nations. One of which is Uncertainty Avoidance. Uncertainty Avoidance: A culture’s desire for structure and predictability. Cultures with high UA (Germany) will seek more predictability and structure. For these cultures, “different is bad.” Low UA cultures (U.S.A) will be more flexible in rules and are more likely to see “different as interesting.” Psychological Analysis of Cultures:

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North America “Made in Germany” is recognized worldwide. With more than 250,000 scientists, Germany is the world's third-largest “Country of Researchers.“ Division ContiTech of Continental AG Albert Einstein

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North America Why are German luxury cars so expensive? ….because of German engineering. And what is this whole "German Engineering" thing all about? According to Audi, the automaker's three main tenets are Value, Precision, and Fascination, and they all add up to Quality. Division ContiTech of Continental AG

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North America The top 13 Luxury Large Cars of 2010 U.S. News editors referenced published auto ratings, reviews and test drives to rank premium large cars, generally priced $40,000 to $60,000. Ranking: Overall Performance Exterior Interior Safety Reliability Division ContiTech of Continental AG

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North America Best Interior Ranking #1 Mercedes-Benz E-Class #2 Acura RL #3 BMW 5-Series #4 Cadillac DTS #5 Audi A6 #6 Volvo S80 #7 Lincoln MKS #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Infiniti M #11 Lexus GS Hybrid #12 Jaguar XF #13 Cadillac STS Division ContiTech of Continental AG Overall Ranking #1 Mercedes-Benz E-Class #2 Infinity M #3 Acura RL #4 Lexus GS Hybrid #5 Audi A6 #6 Jaguar XF #7 BMW 5-Series #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Volvo S80 #11 Cadillac DTS #12 Lincoln MKS #13 Cadillac STS The top 13 Luxury Large Cars of 2010

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North America Best Interior Ranking #1 Mercedes-Benz E-Class #2 Acura RL #3 BMW 5-Series #4 Cadillac DTS #5 Audi A6 #6 Volvo S80 #7 Lincoln MKS #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Infiniti M #11 Lexus GS Hybrid #12 Jaguar XF #13 Cadillac STS Division ContiTech of Continental AG Overall Ranking #1 Mercedes-Benz E-Class #2 Infinity M #3 Acura RL #4 Lexus GS Hybrid #5 Audi A6 #6 Jaguar XF #7 BMW 5-Series #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Volvo S80 #11 Cadillac DTS #12 Lincoln MKS #13 Cadillac STS The top 13 Luxury Large Cars of 2010 German Engineering

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North America Best Interior Ranking #1 Mercedes-Benz E-Class #2 Acura RL #3 BMW 5-Series #4 Cadillac DTS #5 Audi A6 #6 Volvo S80 #7 Lincoln MKS #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Infiniti M #11 Lexus GS Hybrid #12 Jaguar XF #13 Cadillac STS Division ContiTech of Continental AG Overall Ranking #1 Mercedes-Benz E-Class #2 Infinity M #3 Acura RL #4 Lexus GS Hybrid #5 Audi A6 #6 Jaguar XF #7 BMW 5-Series #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Volvo S80 #11 Cadillac DTS #12 Lincoln MKS #13 Cadillac STS The top 13 Luxury Large Cars of 2010

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North America Best Interior Ranking #1 Mercedes-Benz E-Class #2 Acura RL #3 BMW 5-Series #4 Cadillac DTS #5 Audi A6 #6 Volvo S80 #7 Lincoln MKS #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Infiniti M #11 Lexus GS Hybrid #12 Jaguar XF #13 Cadillac STS Division ContiTech of Continental AG Overall Ranking #1 Mercedes-Benz E-Class #2 Infinity M #3 Acura RL #4 Lexus GS Hybrid #5 Audi A6 #6 Jaguar XF #7 BMW 5-Series #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Volvo S80 #11 Cadillac DTS #12 Lincoln MKS #13 Cadillac STS The top 13 Luxury Large Cars of 2010 High Overall, Low Interior

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North America Best Interior Ranking #1 Mercedes-Benz E-Class #2 Acura RL #3 BMW 5-Series #4 Cadillac DTS #5 Audi A6 #6 Volvo S80 #7 Lincoln MKS #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Infiniti M #11 Lexus GS Hybrid #12 Jaguar XF #13 Cadillac STS Division ContiTech of Continental AG Overall Ranking #1 Mercedes-Benz E-Class #2 Infinity M #3 Acura RL #4 Lexus GS Hybrid #5 Audi A6 #6 Jaguar XF #7 BMW 5-Series #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Volvo S80 #11 Cadillac DTS #12 Lincoln MKS #13 Cadillac STS The top 13 Luxury Large Cars of 2010

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North America Best Interior Ranking #1 Mercedes-Benz E-Class #2 Acura RL #3 BMW 5-Series #4 Cadillac DTS #5 Audi A6 #6 Volvo S80 #7 Lincoln MKS #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Infiniti M #11 Lexus GS Hybrid #12 Jaguar XF #13 Cadillac STS Division ContiTech of Continental AG Overall Ranking #1 Mercedes-Benz E-Class #2 Infinity M #3 Acura RL #4 Lexus GS Hybrid #5 Audi A6 #6 Jaguar XF #7 BMW 5-Series #8 Mercedes-Benz E-Class Coupe #9 Lexus GS #10 Volvo S80 #11 Cadillac DTS #12 Lincoln MKS #13 Cadillac STS The top 13 Luxury Large Cars of 2010 Low Overall, High Interior

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North America 4 of top 10 Luxury Vehicles were German Engineered : Mercedes (2) Audi BMW Division ContiTech of Continental AG

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North America Through our German Engineering Benecke-Kaliko supplies material Globally to 7 of the top 13 Luxury Vehicles ( “US News & World Report” Top 13 Luxury Large Cars of 2010) Division ContiTech of Continental AG

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North America #1 Mercedes E Class 2010 Division ContiTech of Continental AG

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North America #5 Audi A6 2010 Division ContiTech of Continental AG

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North America #7 BMW 5-Series 2010 Division ContiTech of Continental AG

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North America #8 Mercedes E Class Coupe 2010 Division ContiTech of Continental AG

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North America “ We can't solve problems by using the same kind of thinking we used when we created them.” Albert Einstein Division ContiTech of Continental AG

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North America Division ContiTech of Continental AG Over the past few years US Car Makers have renewed their focus on the interior. The emphasis has moved away from the low cost instant society to individuality and style reminiscent cars from the 50s & 60s. Some of the successes from this new direction are….

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North America #12 Lincoln MKS 2010 Division ContiTech of Continental AG

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North America Cadillac CTS Wagon 2010 Division ContiTech of Continental AG

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North America Division ContiTech of Continental AG So what is the new Premium …genuine?...synthetic?…personalized? PRESENT: Cut & Sew Real Metal Long term program for material and color Craftsmanship Detail Tradition Use genuine leather FUTURE: Wide variety of color and surface structure Reaction to the request of the globalization Short lead time to market Flexible quick changes Emphasize Synthetic appearance benefits, not achieved in nature No fakes

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North America Division ContiTech of Continental AG “Individual = Premium” …doesn’t always mean you have to pay more… but if you do, the consumer immediately wants to see the value. Top Designers in Mainstream Advertising Paint from Martha Stewart for less than $25 Own Function: Is it a newspaper? Is it a book? Is it for email or for social media? Own Style: Pick your style? Stylish Design for Value Price Create your own style or function

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North America Division ContiTech of Continental AG The image of Premium is conveyed through individual consumer choice for a Carbon Fiber or Metallic Brush with no cost impact or timing impact “Individual = Premium” Fiat Bravo Carbon Brush

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North America "Wachstuchmacherey vor dem Steinthore" ("Oilcloth Factory outside the Stone Gate"), which later became J.H. Benecke AG, produced oilcloth for products including the carriage top for Napolean Bonaparte. Benecke-Kaliko AG has been providing material for premium applications since the 1700s Division ContiTech of Continental AG

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North America How has Benecke-Kaliko AG remained a Global leader in the rolled goods industry? …with the BK Formula! Division ContiTech of Continental AG

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North America Division ContiTech of Continental AG The BK Formula for success:

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North America Division ContiTech of Continental AG + = + 2010 Cadillac SRX The Elements of the BK Formula: BENOVA™ Ancona

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North America Division ContiTech of Continental AG + = + The Elements of the BK Formula: 2010 Cadillac SRX 2010 GMC Terrain TEPEO2™ Flinders

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North America “Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution; it represents the wise choice of many alternatives.” William A. Foster Division ContiTech of Continental AG