Dana Incorporated (DAN) Earnings Call Transcript & Summary

Okay. Let's get started this morning. Good morning, and welcome to Dana Incorporated's 2021 Capital Markets Day, Electrification. Delivered. My name is Craig Barber, IR Director at Dana, and I'd like to thank all of you for joining us this morning. While our event today is primarily virtual, we do have a small contingent of investors, analysts and capital markets partners with us in the room here today at our World Headquarters campus. Thank you for making the trip to be with us today. We posted this morning's presentation on Dana's investor website and on our event portal. If you're joining us by webcast, you will notice our event today includes video. We will be presenting our slides in with the video to provide a more engaging experience. The slides are also viewable in a small box off to the left side of the screen. If you wish to, you can expand this box and when we see the slides or you can close it altogether and just watch the show. Before we begin, let me remind you that today's event is being recorded and supporting materials are the property of Dana Incorporated. They may not be copied, recorded or rebroadcast without our written consent. Our discussion will include forward-looking statements about our expectations for Dana's future performance. Actual results could differ from those suggested by our comments this morning. Additional information about the factors that could affect future results are summarized in our safe harbor statement found in our public filings. Presenting this morning are Jim Kamsickas, Chairman and Chief Executive Officer; Jonathan Collins, Executive Vice President and Chief Financial Officer; as well as the leaders of our 2 largest business units: Aziz Aghili, President of our Heavy Vehicle Business Units, which includes commercial, vehicle and off-highway drive and motion segments; and Byron Foster, President of our Light Vehicle Drive Systems segment. Today is going to be all about delivering value in an electrified world. We began earlier this morning with a brief tour of our Sustainable Mobility Center, our newest state-of-the-art electric motor manufacturing facility here in our Maumee, Ohio campus. We hope that many of you joining us virtually will be able to have the opportunity to visit our campus in the near future. The formal part of our agenda will begin with Jim giving a brief introduction to Dana. Then Jonathan will walk us through how electrification and mobility will impact our addressable market. Our business leads will then provide an in-depth look at the market, technology and customer trends that are driving this transition and highlight the vital role Dana plays. We will pick up after a brief break where Jonathan will use an interactive demonstration to answer a common question: what happens to a vehicle powertrain as it evolves from internal combustion to electric power? And finally, we'll conclude the morning with a discussion on what sets Dana apart, and Jonathan will highlight our value creation proposition. And finally, a brief question and answer session, where we will take questions from those in the room with us here in Maumee. Now also as a further reward for making the trip out to join us today, we will then end our formal presentation, and the folks here in the room will go outside to our test track and demonstrate some of the capabilities and products we talk about today with real vehicles representing all of our 3 end markets. With that, it's now my pleasure to introduce Dana's Chairman and Chief Executive Officer, Jim Kamsickas.

Well, thank you, Craig. First of all, I'd like to welcome everyone who's here today in person as well as those of you that are attending virtually. Our goal today is to provide further insight into Dana's perspective on how electrification mobility will evolve in the coming years and how our class-leading innovation and global presence will help to drive outsized growth and financial returns for our shareholders. But before we dive into today's presentation, I appreciate this opportunity to provide you with an overview of Dana and set the stage for how we're helping to transform the future of mobility. Dana is a global provider of high-technology products to virtually every major vehicle manufacturer in the world. The light vehicle market makes up about half of our business, while the other half comes from the heavy vehicle markets, which include both commercial vehicle and off-highway. Dana also serves the stationary industrial market. We're comprised of 4 major segments. Our largest business unit is Light Vehicle Drive Systems, accounting for nearly half of our global business. The next 2 largest segments comprise of the heavy vehicle business with Off-Highway Drive and Motion Systems and Commercial Vehicle Drive and Motion Systems. Our fourth business is Power Technologies, which is at the center for sealing and thermal management technologies that primarily serve the light vehicle market. Our global footprint is a significant competitive advantage with more than 140 facilities spanning 33 countries across 6 continents. We do about half of our business here in North America and the other half driven by a strong presence in Europe, Africa and South America as well as significant and growing presence in the Asia Pacific. We believe that putting capacity near our customers is the most effective way to serve as a valuable partner to them. We bring our global expertise to the local level with technologies that customize to individual requirements through a network of strategically located technology centers, manufacturing locations and distribution centers. Moving to the right of the slide, Dana is a leader in the design, engineering, manufacturing and service of highly efficient propulsion and energy management solutions for all mobility markets. Our conventional and clean energy solutions support nearly every vehicle manufacturer with: drive systems, composed of axles, drive shafts and wheel and track drives; motion systems, including winches, slew drives and hub drives; electrodynamic technologies, which consist of motors, inverters, battery management system and fuel cell plates; digital solutions, including software and controls; and lastly, thermal management and sealing solutions. All of these core technologies are aiding in the transition to electrification as you will see throughout the remainder of today's presentation. Dana's competitive advantage of scalability across all 3 mobility markets in which we participate positions us to continue growing our business and augmenting our core capabilities to support all our customers' needs regardless of the power source. Our talented people all around the world work together to power a customer-centric organization that is continuously improving performance and efficiency of vehicles and machines across all of our markets. We consistently strive to deliver superior products and services to customers and generate exceptional value for our shareholders, all while doing it the right way. Dana partners with our customers on some of the world's most recognized vehicles. Our more than a century -- for more than a century, we have earned a reputation of always being a forefront of innovation while serving as a trusted partner that can be relied upon. Our vision at Dana is to power innovation to move the world. This guiding belief expresses the strength and reliability of our global family and embraces our core capabilities that are linked to world-class innovation and customer centricity. Our mission is to drive stakeholder value by powering vehicles and machines around the world, shaping sustainable progress through the invention and execution and making the amazing happen wherever people live, work and play. This is all accomplished through our core beliefs, which are summed up by valuing others, inspiring innovation, growing responsibly and ultimately, winning together. Our vision, mission and values reflect who Dana is and who we stand for. It is how we are, people finding a better way. At Dana, we take a holistic approach to empowering people. We are deeply committed to our strong One Dana culture. And while we'll never rest on our laurels, we are very proud to be recognized as World's Top Employer by Forbes Magazine and received similar honors around the world. In addition, we're very honored to be named one of America's Most Responsible Companies for 2021 by Newsweek Magazine, which recognizes companies for corporate social responsibility efforts, including environmental, social and corporate governance. Our One Dana culture ensures that everyone in the Dana family is able to contribute and thrive because we know embracing our unique and valuable perspectives is how we empower our people. Driven by a very clear enterprise strategy and backed by a track record of consistent execution, Dana has always been committed to driving growth for our company, customers, employees and stakeholders. Many of you will recall that we rolled out our original enterprise strategy in 2016, refreshing it in 2019 with the launch of Powering into e-Drive. The framework for the strategy was to be our road map to ensure that we deliver a sustainable competitive advantage that will lead to attractive financial returns for our stakeholders. Each of the 5 gears is intended to help Dana evolve our increased focus on the growth vector in electrification, ultimately helping our customers achieve their growth and sustainability goals. At the heart of the strategy is leverage the core, which is the foundation of all that we do. It's the center of the page for a reason. You will notice that all of the other components of our strategy are built around it in the form of supporting gears. It also allows us to exploit being a major drive system supplier across all 3 mobility and end markets and takes the unique structure of Dana and our multi-market focus and converts it into a sustainable advantage. Driving customer centricity continues to define who we are. It is embedded in the culture to put our customers at the center of our value system. It's driving growth by focusing on what is driving our customers' needs. Expanding global markets means you're utilizing our global capabilities and presence to further penetrate growth markets. Delivering innovative solutions enables us to capitalize on growth trends to evolve our core technologies, increasing our content per vehicle. As a technology company, we have a culture of innovation that anticipates industry trends and challenges. Our global technology centers are home to some of the world's leading engineers, technicians and scientists dedicated to breakthrough advances to empower mobility and industrial customers. Lastly, to lead in electric propulsion, over the past several years, we have elevated our leadership position in e-Mobility space, developing new electric propulsion systems across all of our end markets and expanding our global capabilities and capacity for our electrification portfolio. In doing so, we have the opportunity to increase our content per vehicle as core markets continue to rapidly shift from the internal combustion engine or ICE to electric propulsion. As we look ahead, we believe that continuing to execute our enterprise strategy will position us to future success and differentiate Dana within the mobility industry as a supplier of choice, capable of supporting our customers across the diverse powertrain options. As I stand before you, I am pleased to share that the strategy we put together and is in place is working. I think about the effectiveness in 3 dimensions. Dana's financial results are dramatically improved from where they were 5 years ago. The commitment and dedication of the Dana family has paid off as we have significantly grown the business along with strong profit and earnings per share growth. In fact, in 2019, we reported the most profitable year in the company's history. Despite the unprecedented challenges resulting from the global pandemic, we have continued to successfully execute our strategy throughout 2020 and through to 2021. These strong financial results have led to significant increases in our share price along with considerable return of cash to shareholders in the form of dividends and share buybacks, ultimately delivering impressive returns for our shareholders. Finally, I'm most proud of the fact that we have not only delivered strong financial returns and shareholder returns, but we've completely repositioned the business to capitalize on the trend of vehicle electrification at the same time. This has been accomplished by deploying significant capital which included prudent and judicious M&A to acquire the capabilities to lift our business to a competitive level of EV sales, which today are nearly $350 million. We have also worked to transform how we do business by taking aggressive actions to strengthen our commitment to sustainability and social responsibility. These actions have resulted in the highest scores possible for ISS for environmental and social responsibility, something we're extremely proud of. This remarkable evolution is because of the hard work and dedication of the global Dana family as well as the support of our customers and our investors. While our enterprise strategy covers all aspects of our business today, today, we're going to focus -- our focus will almost be exclusively on leading electric propulsion. And for -- and what we mean by this is the clear intention to develop and deliver fully integrated e-Propulsion systems to capture increased content per vehicle as core markets shift from the ICE to electric propulsion. Today's presentation will go into extensive detail on how we plan to accomplish this lofty perspective. Dana, a company that has led innovation across global mobility markets for the last century, is an EV growth business positioned to deliver outsized risk-adjusted financial returns. To support this assertion, we're outlining 8 elements which will demonstrate that we have built a substantial EV franchise. First, we have a guiding vision towards zero-emissions future. As I've highlighted a few moments ago, this is at the heart of everything we do, and this laser focus is the overarching theme of our electrification pursuits. Second, it's often said that a rising tide lifts all boats. Well, the Dana boat is in the right harbor as all total addressable market is going to rise dramatically in the decade ahead. For the first time today, we are going to quantify the prize that electrification represents. Third, our technical competence in e-Propulsion systems is unparalleled. Over several years, we've acquired the capabilities to design, engineer and manufacture each component of these systems in-house. And today, we are going to explain why this is essential to lead in electric propulsion. Fourth, there are clear winners and losers as the powertrain migrates from the internal combustion to the electric propulsion. The engine, the transmission and the fuel tank are no longer necessary as batteries and electrodynamics enter the scene. But the driveline will remain. Our core product does not go away. Every EV on the road today and for decades to come will have a driveline. Every -- what's more, the driveline content will increase approximately 3 times, and we are perfectly positioned to capture this incremental content that's being integrated into our product. Fifth, the powertrain controls that are executed with embedded software, which is used -- used to be in the engine and transmission are moving to the driveline, making it a smart system. This migration, along with the vertical integration of high-value subcomponents, will drive significant margin expansion potential for Dana as we transition from delivering purely mechanical products to smart mechatronic products and systems. Sixth, e-vehicle OE production will be competitive, and the markets are trying to sort out who will lead and who will lag. Dana is a unique and compelling investment in this regard as we are doing business with both major categories. The established OEs transforming their businesses and the emerging OEs that are just getting started. Our e-Propulsion systems will be a broad array of vehicles. And as a result, we are positioned to capitalize on both. Seventh, we will utilize our existing global asset base, established operating system and deep industry knowledge that startup competitors do not have and would require decades to establish. And finally, our company's financial profile will remain robust throughout our electrification journey because the nature of our core ICE product will remain through the transition, thus generating significant cash flow to power our growth. Our core business is not in the state of secular decline but rather grows modestly through the transition, with assets that will remain largely relevant to offset future investment requirements for any electrification growth trajectory. The combination of all these factors is embodied in Electrification. Delivered. Now I'm going to walk you through how we plan to execute on this compelling proposition. The first element of the value proposition is our strategy that is guiding towards a zero-emission future and how Dana is taking a lead role in achieving it. This includes our relentless quest to work smarter as we provide solutions that support our customers while at the same time, minimizing our impact on the environment. In our journey toward 0 emissions, we are committed to reducing annual greenhouse gas emissions across the entire value chain. If you recall, in 2020, we committed to reducing our total annual greenhouse gas emissions by 50% before the end of 2035. And we also signed a long-term renewable energy agreement that would reduce our current U.S. annual greenhouse gas emissions for electricity by approximately 90%. Last quarter, we announced plans to accelerate that goal by reducing annual Scope 1 and Scope 2 greenhouse gas emissions by at least 50% by the year 2030. Whether it's being among the first companies to show support for the Paris Climate Agreement or partnering with organizations such as Science Based Targets initiative, the collective Dana family is committed to helping our customers innovate and achieve their goals, focused on the total systems thinking and creating substantial practices that strengthen our business in this changing world. One of the main ways we will accomplish this goal is by reducing our company's Scope 1, 2 and 3 greenhouse gas emissions through a number of actions, including expanding our electrification product portfolio, implementing energy-efficient initiatives across all of our operations and participating in both on- and off-site renewable energy products -- projects. As part of a Scope 1, we are committed to reducing greenhouse gas emissions across all of our operations through a variety of means, including reducing on-site fuel consumption across every facility. In Scope 2, we continue to lock in operational efficiency improvements and reduce electricity consumption by solar, wind turbines and renewable energy credits. We believe the greatest impact on the environment will overwhelmingly come from Scope 3, where Dana has committed to reducing additional greenhouse gas emissions by delivering new clean energy technologies and products and driving improvements across the supply chain. You can read more about our sustainability actions and goals in our sustainability report, which is published on dana.com. Our goal through the remainder of the presentation is to showcase what differentiates Dana amongst mobility suppliers to support our customers for the trends shaping our industry. Now I'd like to introduce Jonathan who will talk about the electrification of mobility.

Thank you, Jim. In this next section, we will provide our perspective on the electrification of the mobility markets and the impact it will have on our business. The second element of our value proposition sets the groundwork for the financial opportunity electrification presents by defining our total addressable market. External factors continue to increase the rate of adoption for electric vehicles. For Dana, this means the total addressable market for our EV products will grow eightfold in the decade. At our last capital markets event in early 2019, we outlined our view on the 5 key factors driving EV adoption for the global mobility markets, which are reflected on the left of Page 19: customer pull, regulation, technology advancements leading to lower total cost of ownership, infrastructure readiness and industry focus and investment. Without exception, each of these factors have advanced in all our end markets. A few examples include significantly increased consumer acceptance of electric vehicles, local emissions restrictions, falling battery costs, improved charging infrastructure and prolific introductions of new EV nameplates by established OEMs and emerging startups. On the remainder of the page, we've depicted the impact of each of these factors associated with our 3 end markets, where the darker blue bars and the battery icons represent our assessment back in 2019, and the lighter blue bars represent the increases since then. The rate of acceleration is most pronounced in our largest market, light vehicle, while we're approaching full systems go in the commercial vehicle market and our off-highway market is seeing an increase in demand from customers. In summary, these drivers have increased dramatically across the entire mobility landscape in the last couple of years. And while this is true around the globe, these increases are most pronounced in our largest geographic market, the U.S. Here at home, customer pull, regulation and infrastructure and OEM investments are exploding. A few examples of these include corporations like Dana making bold ESG commitments, as Jim just outlined, federal and state governments following California's lead in pushing for lower emissions, and ICE phase-out plans for major OEMs for their U.S. vehicle lineups. The U.S. is closing the gap with Europe and China's prominent adoption drivers, and this is creating significant opportunities for Dana in our largest market. We not only opined on the key factors driving EV adoption at our last Investor Day a couple of years ago, but we also looked out more than 5 years at the time to 2025 and estimated the adoption rates in our core segments. These are shown on the light gray horizontal bars on Page 21. As is no surprise, based on the commentary regarding adoption of drivers from the last couple of pages, our current outlook for 2025, which is highlighted in the colored bars, has increased significantly in most of these segments. Notably, in the upper left, our largest light vehicle segment, light-duty truck, is expected to reach 6%, a full 5 percentage points higher than our prior outlook. There is significant expansion in the adoption rates across the board in commercial vehicle in the middle of the page with 6, 5 and 17 percentage point increases in medium-duty truck, heavy-duty truck and bus, respectively. Additionally, in the upper right of the page, the construction and mining segments of the off-highway market continue to accelerate. These increases, combined with our higher win rates are contributing to the outperformance of the initial EV sales target we established for 2023 back in 2019, which I'll detail towards the end of the presentation. But in order to fully appreciate the trends in our end markets, it's now necessary to look at the end of the decade where much more notable inflection points are clear in our key segments of the global mobility market. As you'll see on Slide 22, we're now taking a view on adoption rates for our core segments in 2030, where EV production is expected to have meaningful penetration across the board. Please recall that the high-volume passenger car market is noncore for Dana, and the higher torque vehicles we serve require much more robust technology to electrify. As a result, they will take longer to reach a comparable penetration rate, which is why most of the numbers are lower than the approximately 50% penetration rate most people now associate with 2030. You can see in the upper left section of the page that the light-duty truck and van segments will approach 15%. In the upper right, medium-duty truck approaches 40%, and in the lower left, heavy-duty truck will likely top 20%. In the middle bottom, buses exceed 75%. And in the lower right, the rates in the off-highway segment of construction and mining increased 5x to 25%. We believe this longer outlook will help to make a much clearer picture as to why we're investing so much to capitalize on this mega-trend but will also lay the foundation for the financial prize we are chasing in the form of a rapidly escalating addressable market. On Page 23, for the first time, we dimensioned the addressable market for our electrified product and do so by end market through the end of the decade. On the left, you can see that on a unit basis, we expect the market to grow rapidly from less than 1.5 million to nearly 6.5 million over this period. On the right, you will see this translates to a total addressable market that will increase 8x at a growth rate of 22% from $2.5 billion to nearly $19 billion. Please note that while we estimate the total market value for our products will exceed $30 billion by 2030, we fully anticipate our customers will build about 40% of these systems in-house, which is a slightly higher captive share than what we see in our ICE market today. Since the level of OE outsourcing for EV propulsion systems is a very common question we get, Jim is going to spend some time explaining our perspective on this later in the presentation. In summary, the investments we initiated years ago to position us to capture meaningful share in this market proved to be the right call, and we're thrilled to share today what we believe this will mean for our investors. With that, I'm going to turn it back over to Jim, who will highlight these investments, the technology we've developed and the sequencing of the adoption in our end markets.

The next element highlights all that we've done to differentiate Dana to deliver complete e-Propulsion systems. By the end of the year -- this year, we will have invested over $0.5 billion to bring electric motor and power electronics capabilities in-house. And we've accumulated a portfolio of more than 1,200 electrification patents that serve as the bedrock for these systems. These strategic investments have elevated our leadership position in the e-Mobility space, delivering new electrified propulsion systems across all of our end markets and expanding our global capabilities and capacities for our electric portfolio. Bottom line, with all of the core elements of a complete fully integrated, electrified system under one roof, we have a unique understanding of how each of the components interact, allowing us to efficiently develop components and modules that are optimized for seamless integration. Turning to the next slide, I will talk about how we accomplish that. One of the ways that we've positioned ourselves to lead in electrification is that we've actively built our capabilities through acquisitions that have offered technologies and applications across all of our end markets. As a reminder, we embarked on this journey nearly 4 years ago with the acquisition of a controlling stake of TM4, enabling us to become vertically integrated to produce -- in producing electric motors, inverters and vehicle control units. Shortly thereafter, we built our low-voltage capabilities through the acquisitions of Ashwoods and SME, which rounded out an already robust offering of permanent magnet motors, including AC induction and synchronous reluctance as well as inverters and controls. We also bolstered our software and controls capabilities by acquiring Vocis, Rational Motion, Nordresa and Pi Innovo. With our acquisition of Graziano, we expanded on a long strong foundation of advanced mechatronics, which are highly applicable to the light vehicle market while the Fairfield suite of products provided applications targeted towards the heavy vehicle markets. These acquisitions have placed us in the pole position to deliver complete electric propulsion systems composed of electric motors, the heart of the system; the power electronics, which is the nerve center; and software and controls, that serves as the brains of the system; and the core mechanical torque transfer capabilities from our legacy business that are still the muscle. We're able to cover the breadth of the system requirements and technologies, including a full voltage range, high to low, as well as 3 major motor types: permanent magnet, induction and synchronized reluctance. Moving to the right, top right, we have both high- and low-voltage inverters to match our electric motors and strong onboard charging capabilities. Our full suite of electric control units and the critical associated software can be applied to an array of functions, including propulsion, vehicle integration and charge control. Linking all of this together on the mechanical side, we offer robust capabilities in both parallel and perpendicular torque transfer. Dana stands as one of few suppliers that have in-house capabilities to deliver these full systems, and it's even more rare to do so for the entire mobility market. We believe this is a fundamental differentiator as we support a broad range of customers in their adoption of electric vehicles. This slide shows the adoption sequence of EVs across our core markets. As you can see, commercial vehicles have set the pace and the off-highway is following. However, the light-duty truck segment is just beginning to accelerate, as Jonathan outlined earlier, and because our light vehicle business unit is concentrated in light-duty trucks, that segment is now seeing significant activity. In order to fully appreciate how this sequencing will occur, I want to quickly highlight the life cycle of an electric vehicle program. First, development is initiated then prototype components are delivered for the vehicles. Next, the business is put out for quote, resulting in the selection of a winner, who then initiates preproduction development and ultimately leads to the start of production. This has been going on for years in the commercial vehicle and off-highway, which has led to numerous program awards that we'll talk about in a few minutes. The difference is our portion of the light vehicle market, the light truck segment is just beginning to ramp up over the last year. The early RFQs are out for bid today and we're engaged in a number of these processes. As these opportunities in the full-frame truck segment continue to increase, Dana is well positioned to capture on the anticipated rapid growth. The combination of our past successes, present capabilities, application know-how and clearly defined strategy for the future enables us to partner with our customers at any stage in the electrification progression, ultimately leading us to winning our fair share of the growing market in the coming years. I've asked Aziz and Byron to help provide detail around how we are leading in electric propulsion across all 3 end markets. With that, I'm pleased to introduce Aziz.

Thank you, Jim. Good morning, everyone. I am delighted and honestly, I don't know how I can contain my excitement. You may ask why. Because what I'm going to share with you in the slides, it's going to show the transformation which has taken place, which is enabled by our technology and our people, helping us to capture increased content across our heavy vehicle markets. I will try to reduce my excitement as I go through the presentation here now. Today, I would like to talk about the technologies and trends we are seeing in the heavy vehicle markets, which consist of our off-highway and commercial vehicle segments. The OEMs and fleets in these segments share a common need for uncompromising and highly durable solution that can withstand demanding duty cycles as well as delivering the best-in-class total cost of ownership. As Jonathan highlighted earlier, the electrification opportunity in these markets will grow dramatically in the -- over the next decade, expanding an annual rate of 20% from $1.7 billion in 2020 to a significantly larger $10 billion in addressable market by 2030. Dana is well positioned to capitalize on this growth, which is a complete portfolio of e-Propulsion systems, which I will discuss in more detail throughout my presentation. The transition to electrification in heavy vehicle segment require a range of driveline configuration that customers select based on the level of change required to the structure of the vehicle. Customer while looking for an immediate solution with limited changes to the frame and body of the vehicle, they are adopting direct drive system as seen on the left side of this slide. This replaces a traditional internal combustion engine directly with an electric motor. For vehicles with higher speed and higher torque requirements, e-Transmission offer a robust solution that leverages a traditional mechanical driveline with reduction gearing attached to the electric motor for maximum torque capacity and efficiency. Eventually, we expect the most -- we expect most electric vehicles will migrate towards e-Axle and e-Hub drives, which are able to take full advantage of electrodynamic technology in a more integrated approach mounted in the rear of the vehicle or directly to the wheel end. Dana has developed a complete portfolio of in-house solutions, leveraging our expertise in mechanical system, electric motor, inverters, software and controls to offer a range of driveline configuration that will enable our customer to make the shift towards electrification confidently and seamlessly. Turning to Slide 33. Dana off-highway segment offers a complete suite of products to meet our customers' unique needs from fully integrated e-Axle to e-Transmission and e-Hub drives. These products cover low- and high-voltage application ranging from 48- to 800-volt to meet the robust durability requirement of our construction, material handling and mining applications. Dana has launched new solutions progressively as the off-highway segment accelerates towards the adoption of electrified vehicles. We continue to see expansion in our addressable market where there are many new opportunities emerging, such as compact excavators and popular utility vehicles. We are able to support every vehicle from golf cart and scissor lift to the large and complex reach stackers and mining equipment. Our goal is to leverage common parts across as many different applications as possible to minimize the cost while still achieving maximum efficiency, productivity and performance for each individual vehicle. Many of these solutions are already being utilized by our off-highway customers as demonstrated by the growing list of new business wins we have announced across 3 of our major sectors. What you see in this Slide 34 is only a sample of our electrification wins. One example, as seen in the top left of this slide, is the compact construction sector when Dana is selected by JCB to supply Dana TM4 interior permanent magnet motor for their many excavators. We have this excavator outside, and later on after the presentation, you will have a chance to look at it and even test drive it, if you wish. The demand for many excavators expanding to grow in in the coming years as they are widely used in residential construction, industrial and infrastructure projects. Dana's portfolio of low-voltage motor is an ideal fit for these 1.5-ton and 3.5-ton applications. In the underground mining, we have been working closely with Sandvik and have been able to provide a complete package of electrified solution, covering not only traction requirement but also electric functions. The driveline features Dana's axles, driveshaft and field-proven SUMO LD motor, combining our mechanical expertise with power-dense motor and inverter for maximum efficiency. Just last week, Sandvik announced that they believe the majority of their underground mining equipment will be electrified by 2030, demonstrating just how important our technology will be in achieving safe and emission-free mining. Turning towards material handling sector, Montini has chosen Dana to provide our electrodynamic technologies to support forklift trucks with a low-voltage system. Leveraging our synchronized reluctance motor technology, the system is able to provide optimal efficiency in both low speed and high torque as well as high-speed operation, all controlled by Dana's inverters. It is clear that the strategic investment Dana made in expanding our product portfolio are delivering strong results. In addition to these programs, I am pleased and excited to announce several new business wins. These are significant wins in nature since they are significantly expanding our content going forward. Starting in the mining sector, Dana has been selected by Komatsu to provide our Spicer Electrified e-Direct Drive system for their horizontal electric mining drill. We worked closely with Komatsu to design a system that was able to support a vehicle with a single-frame design for internal combustion power and electrically driven drills. This vehicle also includes Dana's electronic control unit with a library of function to support vehicle integration for the customers. Beyond this mining application, Dana has also been chosen by Taylor Machine to support its next generation of battery electric container handler, featuring Dana's heavy-duty e-Hub drives, Dana TM4 SUMO LD motors and inverters and software and control, representing a 4x increase in our content from traditional powered container handler. As ports continue to push for zero-emission vehicles, our material handling customers are seeking out Dana's expertise to help them determine the best architecture and technology for maximum efficiency and best total cost of ownership. Before I turn to the next slide, it's important to note that Dana is not only well positioned to support customers with motors, inverters, e-Axles, but we are also leveraging our expertise in e-Transmission to support our heavy-duty customers. You saw one example in the customer center [ stadium ] this morning. Dana has been manufacturing transmission over 50 years in Brugge supporting our mining, material handling and construction segment of our customers. Reinforcing this, I am pleased to announce Hyster-Yale has chosen Dana to supply e-Transmission in support of its new electric terminal tractor. Dana's eSP502 transmission comes in a single or dual motor and delivers high efficiency and superior performance in a compact package that will further enable the rapid transition to electrification. Now you have seen the transformation which has taken place in the off-highway segment. Next, I would like to turn your attention to our electrified product range for the commercial vehicle market, which includes medium- and heavy-duty trucks as well as buses and specialty vehicles ranging from Class 4 to Class 8. Many of these technologies are already in use by our customers, and we continue to look for opportunities to expand our offering to support their unique needs. For example, earlier this month, we announced the expansion of our heavy-duty offering to include a family of single and tandem e-Axle design for a wide variety of Class 7 and Class 8 applications. The Spicer Electrified 06 and 08 and by the way, 0 means 0 emission and 8 means Class 8 or 6 means Class 6, are fully integrated e-Axle solutions that support 4x2, 6x2, 6x4 multi-speed e-Axle systems. These vertically integrated offerings are scalable and modular in design, allowing customers to select the motors, inverters, axle housing, gearbox housing and controllers that are best suited for their needs. As we look to the future, we see an opportunity with a family of new e-Transmission that will further support the need of these rapidly shifting markets. And as Jim mentioned, in Dana, it is -- we are able to transfer technology and assets across different end markets. We also offer a full range of SUMO motor and inverter products for direct drive application that are already in production and being used on vehicles today. This complete portfolio of offering has helped us to secure a market-leading position in commercial vehicle electrification. And we continue to win the confidence of our customers, as demonstrated by a number of programs evolved across the CV segment as showcased in Slide 39. Again, these are significant wins, expanding our content as we go forward. As an example, in the medium-duty space, Dana will be providing a direct drive system, including motor, inverter, axle, driveshaft for Xos medium-duty truck, which has been used by FedEx Ground. On the heavy-duty side, you may recall earlier this year, we announced our first Class 8 e-Propulsion win with an unnamed OEM. Today, I am pleased to finally reveal that Hyundai, a long-standing customer, will be utilizing our technology. At the bottom of this slide, you will see that we continue to be at the forefront of the world's largest bus market, including with Foton in China to electrify passenger buses. In addition to these previously announced wins, I am pleased and excited to share several new and significant business awards that further establishes our leading position in the supply of electrified driveline solution in the commercial vehicle market segment. The first piece of new business I would like to announce is Navistar electric medium-duty truck, which was highlighted at the Advanced Clean Expo -- Transportation Expo last month in Long Beach, California. This vehicle demonstrates the high value content that Dana is able to provide as it is equipped with a Spicer Electrified e-Direct Drive, which includes our motor, inverter, axle and driveshaft. We are also announcing today that PACCAR has selected Dana to supply the e-Propulsion system for the next generation of global electric medium-duty truck application. This extends Dana's work on this vehicle platform beyond the current generation we previously announced and demonstrates our full vehicle integration knowledge and capability. In addition to these truck wins, I am pleased to share that Navistar has selected Dana for its electric school bus application, where we will provide our e-Direct Drive system. We are excited about the opportunity to place zero-emission transportation front and center for our students each day. You may recall that earlier on, we had placed a strong emphasis in electrification in the bus market segment. And we have now secured contracts with 2 of the large -- of the 3 largest school bus manufacturers here in North America. Continuing the list of wins, Dana has been selected by a major European heavy-duty OEM to supply Dana TM4 MOTIVE electric motors for its entire heavy-duty and vocational electric vehicle lineup. This high-volume program will help to bolster Dana's motor manufacturing around the world and will dramatically accelerate our position in the cost curve to deliver lower overall unit cost. Additionally, the utilization of our MOTIVE motors in both commercial vehicle and vocational applications uniquely demonstrates our ability to leverage technologies across our end markets. I am also pleased today to announce Dana has selected to supply -- Dana has been selected to supply the e-Propulsion system for a major North American OEM all-electric Class 8 truck. While this customer also remains confidential, this program establishes our position as a clear leader in Class 8 electrification. These wins demonstrate just how fast electrification is coming to the commercial vehicle market and how Dana has positioned itself to be a major player in this segment. Now I would like to turn it over to Byron Foster to give you his perspective on the light vehicle market. Thank you.

Thank you, Aziz, and good morning, everyone. It's my pleasure to now offer you a look at the product evolution within our light vehicle business. As you are likely aware, the vast majority of Dana's light vehicle business comes from light-duty full-frame trucks. But it is important to note that we also provide technology to support the growing van segment as well as high-performance and exotic sports car applications, which have highly demanding propulsion systems. Electrification in these segments is expected to rapidly expand from less than $1 billion in 2020 to nearly $9 billion in 2030 at an annual growth rate of nearly 30%. This presents a great opportunity for Dana as our customers migrate from internal combustion engine technology to electrified drivelines to meet evolving regulatory requirements and the desire for more sustainable personal mobility. Turning to Slide 47. Aziz described for you the incredible proven technologies that were designed, developed and tested in our commercial vehicle business and have won us a leading share in the medium-duty truck market. Dana's leadership in multiple end markets allows us to take advantage of the timing of development cycles in commercial vehicle to accelerate our product offering for trucks on the light vehicle side of the business. These highly relevant technologies not only give strong credence to our ability to deliver fully integrated e-Axles, but they also give us an advantage in terms of scale and capital invested in design. This positions us to deliver a robust, differentiated product for the first generation of electrified light trucks. Before I provide a more detailed look at our light vehicle electrified technologies, I think it's important to highlight the breadth of the offering we have today. Truck axles and suspensions play a key role in delivering on the value and performance objectives of our customers. There are 2 primary types of axles, independent and rigid. Dana provides industry-leading axles for both rigid and independent architectures to meet the needs of rugged, high-torque applications. On the left of the slide, the Jeep Wrangler, one of our flagship programs, leverages rigid axle solutions for both front and rear. In the middle, the all-new Ford Ranger, which launched last year, utilizes a rigid axle in the rear and an independent in the front, both from Dana. And our largest customer in Europe, Jag Land Rover, takes advantage of Dana's rugged independent axles for the Defender, Range Rover, Range Rover Sport and Discovery vehicles. Rigid and independent axles each have unique features that help to meet specific design and cost criteria for our customers. The choice of axles is important for driver experience, so OEMs use varying combinations to meet the preferences of the vehicle's end user. As you can see on the slide, in general, a rigid axle is used on trucks that primarily move cargo or have rigorous off-road requirements. These are the types of applications that demand maximum durability, payload and towing capabilities, grade ability, off-road performance and personalization. Independent axles, on the other hand, are more suited for vehicles that primarily transport people and thus require superior ride and handling. Both rigid and independent axles are used by our customers today and both will have a future in electric vehicles. As you can see from the chart, full-size SUVs largely use independent axles because their primary function is to comfortably transport people. Off-road and larger work trucks use a combination of rigid and independent, while 0.75-ton work trucks exclusively utilize rigid axles. On this page, we have provided examples of current programs as well as early electric vehicles that follow the same approach to their vehicle architectures. While some early electric vehicles featured here in the off-road and 0.5-ton work truck segments have elected to use independent suspension, we know that many of our customers will also choose to use rigid axles for the reasons we just discussed. The requirements on these vehicles, coupled with our current position with independent and rigid solutions in the full-frame truck market, positions us to deliver both of these architectures for future battery electric trucks. As you will see in the coming slides, our team is already leveraging the technology competence Jim outlined earlier so that we remain the partner of choice that we are today. To that end, we have developed a full suite of solutions that will meet the needs of the most rugged and capable light vehicle segments. These fully integrated solutions will support trucks, SUVs and vans as they transition to electrification, leveraging our in-house capabilities in mechanical solutions, electric motors, power electronics and software and controls. Furthermore, our experience delivering robust high-torque technologies enables us to meet the needs of the demanding propulsion systems in the high-performance passenger car segment. As the market evolves, we will be in the best position to provide tailor-made solutions for our customers' unique needs, as laid out on Slide 53. This shows our wide range of offerings that are capable of meeting the most demanding use cases. For example, our eS5500 rigid e-Axle's durable and lightweight design supports midsized SUVs and Class 1 pickup trucks. Designed with high power density and available as a single or 2-speed option, this fully integrated e-Axle meets the demands of rugged off-road vehicle applications. On the higher end of the range, our innovative eS9000 to 15000 products, which have been designed and developed but are cloaked on this slide, will give us a strong competitive advantage across the critical truck segments. We expect to be able to reveal these solutions to the broader market in the near future. As Jim mentioned earlier, there are a significant number of light vehicle full-frame truck programs that have already begun the development cycle, and we are working closely with our customers in the prototype phase of these projects. I will provide more detail on this later in my presentation. We believe the technologies we have developed as well as our early program awards and engagement with customers are the precursor to significant program wins on the horizon. We have provided mechanical solutions for hybrid vehicles as well as emerging vans and high-performance vehicles that have already electrified. We have also opportunistically participated in our noncore passenger car market with mechanical products. We expect that our success in these areas will continue to expand as the vehicles in our core segment come out for quote and are ultimately awarded. Although the vast majority of these awards are slated for the future, I am pleased to announce an early program win today. While I am unable to disclose the customer, I can tell you that Dana has been selected to provide a Spicer Electrified independent e-Axle that leverages our expertise in parallel gear design for an exciting electric lifestyle vehicle, which is expected to be available beginning next year. We are also excited to announce that a European high-performance sports car manufacturer has selected Dana to provide our Graziano hybrid 8-speed dual-clutch transmission system for all of their new super sports car. Dana's transmission delivers a cutting-edge hybrid system. One of the most important points I will convey today represented on Slide 57 is insight into a sampling of the customer programs we are currently engaged with in our core light-duty truck segment. We are collaborating with OEMs around the world to support electric vans and light-duty trucks across all regions. The majority of these programs are complete electric propulsion systems. We are fast approaching the RFQ stage for many of these important programs, and we hope the information we have shared today gives you an appreciation of the high level of confidence we have in our ability to maintain our leading position in the light vehicle market as it goes electric. While up to this point, I have focused my comments on our Light Vehicle Driveline business, it is important to recognize that our Power Technologies business continues to provide industry-leading sealing and thermal solutions for battery electric and fuel cell vehicles. Batteries and power electronics are critically important in the operation of battery electric vehicles. The ability to retain a consistent and even temperature plays an important role in delivering efficiency and range within these vehicle applications. Dana's best-in-class cold plate technology combine superior thermal performance in a thin, lightweight package and features a sophisticated channel path for optimized coolant flow, resulting in a more stabilized battery temperature and faster charging. Our power electronics cooling enhances the heat transfer of power inverters using a flat, exceptionally clean and patented flux-free design. The technology enables electric and hybrid vehicles to achieve consistent operation and long-lasting performance by managing optimal system temperatures within a compact, lightweight and cost-effective solution. For fuel cell vehicles, Dana offers composite and metallic bipolar plates, which are an integral component in fuel cell stacks and deliver improved cost performance and manufacturability, enabling faster adoption of fuel cell powertrains. Historically, Dana's thermal components was used to cool fluids in the engine and transmission to ensure an optimum operating temperature. Dana has since leveraged this ability to manage thermal properties and applied it to electric applications, enabling us to provide optimized cooling for both the battery packs and power electronics. Similar to our thermal expertise, our sealing competence was developed to protect engines and transmissions using gaskets. The core competence is highly relevant in fuel cell electric vehicles where we have transferred this knowledge to develop our Hydroseal, fuel cell bipolar plates that provide durability, electrical conductivity and integrated sealing, all in a single solution. The development of these innovative power technologies has paid dividends in the form of an impressive array of new business awards as seen on Slide 61. As we announced in February, Dana will be supplying the battery cold plates for GM's Ultium battery platform, starting with the Hummer EV program this year. For passenger cars, Dana has been supplying cold plates to the MINI electric in Europe, and we'll continue to provide them as the vehicle comes to the U.S. beginning next year. In addition to these wins, I am pleased to announce we have signed a joint development agreement with Bosch to supply our Hydroseal metallic bipolar plate technology to support the Nikola Tre electric Class 8 truck. The total production volume associated with this agreement is expected to exceed 100 million metallic bipolar plates for Europe, Asia Pacific and North America as the demand for fuel cell vehicles continues to expand. A couple of months ago, we announced a veiled program for our battery cooling plates. Today, we are proud to reveal that Dana has been selected by Ford to supply our state-of-the-art battery cooling plates to support the all-new F-150 Lightning's liquid cool lithium-ion battery packs. We are honored to make an important contribution to this iconic vehicle. I'm also pleased to announce that the first Rivian R1T driven off the assembly line in Normal, Illinois just 2 weeks ago, included Dana's innovative battery cold plate technology. We look forward to growing with Rivian as they continue to bring new vehicles to market. I'm excited about the opportunities ahead for Dana's light vehicle business as our market-ready solutions will serve as a catalyst in the trend towards vehicle electrification. We're now going to take a brief break. And when we come back, Jonathan will join us to discuss the evolution of the powertrain. Thank you.

Okay. It's about 11:05. We're going to take a 10-minute break and we'll come right back here. [Break]

All right. In this next section, we plan to illustrate how the powertrain will evolve during the transition from the internal combustion engine to electric propulsion. There are 2 key takeaways from this section. First, we don't lose driveline content through the migration. And second, our driveline content per vehicle opportunity, which we previously indicated would double, will actually triple through the migration. In order to help visualize this, I'm going to have all of you who just sat down stand back up and join me down here in front of the stage near this vehicle display. Go ahead and start making your way down. We probably should have you to stay here. For those of you listening in, please bear with us for just a second as we make our way to the model. So to operate this display, I'm joined by Seth Metzger, our Senior Vice President of Vehicle Electrification, at the front of the vehicle; and Ryan Laskey, our Senior Vice President of our Commercial Vehicle business unit at the rear of the vehicle. To my left is a monitor that's showcasing Slide 67, which will animate to highlight the powertrain progressions. To my right is a vehicle model representing the chassis and powertrain of a full-frame truck, which would typically be at the higher end of our light vehicle segment and the lower end of the medium-duty segment. So for those of you that are joining us virtually on your screen, you will see the overhead view of this model. These are the front and rear bumpers of the vehicle that are connected by the frame rails. So the body of this truck, typically a cab in the front and a bed or a box in the rear, would rest on the frame, but it's not represented here so that we can get a closer look at the powertrain. This first configuration shown here is an ICE powertrain, which has 4 main components, the engine and the transmission, which are combined in our model at the front by Seth, the fuel tank at the rear by Ryan and the driveline in the middle, which includes a driveshaft and an axle for this rear-wheel drive 4x2 configuration. We've color-coded the parts to highlight the relevance for Dana. Anything in black, we do not produce and the blue components are ours. We're not going to go into an overview of how this configuration works because it's been around for over a century, but it's important to note that of the 4 major components, the driveline in blue, which we produce is the only thing that will remain in an electric vehicle. To be clear, every single one of the electric versions of this vehicle on the road today has a driveline in it. What's more, the driveline content opportunity triples as the electrodynamics will be embedded in the driveline, and that's what we're going to illustrate next as we build up the EV powertrain. So EV powertrains are following a path of adopting 3 configurations, which Aziz and Byron both highlighted. And we're going to walk through each, starting with the e-Direct Drive. So in this configuration, Seth is going to remove the engine and transmission from the front while Ryan removes the fuel tank from the rear as these components are no longer relevant in any electric vehicle and importantly, these are not Dana systems. The energy source of the EVs are the batteries, so they're going to add 2 battery packs mounted to the outside of the frame rails. You'll notice the blue lines on the outside of the batteries represent Dana's battery cooling technology that Byron just highlighted in his presentation. Next, Seth is adding the power inverter, which regulates the flow of electricity and the electric rotary traction motor attaching directly to the driveshaft. Ryan will then add the powertrain controls, which were previously embedded in the engine and transmission. So this configuration is what we've been referring to as the e-Direct Drive, and now Seth is going to highlight some of the benefits of this configuration.

Yes. Thank you, Jonathan. So direct drive systems are excellent for low and medium-speed vehicles. Vehicles such as city buses, school buses as well as personal delivery-type vehicles are our typical applications. This type of architecture also offers something unique for the OEMs. It's obviously a very simple and robust architecture with which to replace the internal combustion engine with. And it also offers tremendous flexibility. If one wants to continue to offer the ICE configuration as well as the battery electric configuration, this is an excellent choice.

Great. Thank you, Seth. The second configuration is the e-Transmission, which will be added as the e-Direct Drive system is removed. This system includes the electrodynamics, the inverter and motor just like the e-Direct Drive, but now adds a reduction gearbox as well as an integrated controller. And now Ryan is going to highlight the benefits of this configuration.

Yes. As Seth mentioned, the direct drive or the central mounted configuration allows for a lot of flexibility within the current chassis today. However, when we bring in a 3-speed gear reduction or a multi-speed gear reduction here, it allows us to support higher speeds and more torque. So this allows for high-powered applications that need to travel at highway speeds, so think of regional haul applications, think of city delivery applications, and this can range from Class 6 to Class 8.

Great. Thank you, Ryan. And the third and ultimately optimal configuration, the e-Axle, all of the components that are in the e-Transmission move closer to the wheels and are embedded in the axle to maximize system efficiency and performance. As Seth removes the e-Transmission, Ryan will remove the driveshaft. And you will note, this is the first time any Dana content has left the vehicle. The removal of the driveshaft will allow the battery packs to move inside the frame rails. So the guys are taking the externally mounted packs out and replacing them with internally mounted battery packs and placing them in the center of the vehicle where the driveshaft used to be positioned. With the batteries now in place, we can start building up the key components of the electric axle. First, the drive head will be removed and replaced with the gearbox, which alone more than offsets the content loss of the driveshaft. Next, Ryan is going to be adding the electric motor, which is now mounted parallel to the wheels. And Seth will add the inverter and controller, making this e-Axle a software-controlled smart system. Now Ryan is going to be kind enough to highlight the benefits of this final configuration of the e-Axle.

As we move to an e-Axle configuration, the key benefits that we have here, as Jonathan mentioned, is all the power has now moved to the wheels. In the process of moving all of the power generation in between the wheels, we've optimized the overall architecture of this vehicle for weight, packaging as well as less moving components, so we're not transmitting power from the front all the way to the rear. By moving the batteries inside the frame rail, we've provided a much more packaging flexibility for the commercial vehicle trucks who have to have flexibility outside the frame rails for a number of different mounting elements, including side-loaded beverage haulers, for instance. By moving the power back to the back and taking advantage of the weight, the weight can now be translated into range, which is the most important aspect of EV adoption.

Great. Thank you, Ryan. This final e-Axle configuration, while electrified, remains a 4x2 rear wheel-drive vehicle because there's only one e-Axle. To turn this into all-wheel drive or 4x4, we're going to add an e-Axle in the front. So the guys are going to remove the front mechanical steer axle and replace it with an independent e-Axle, the technology that Byron highlighted in his section, which contains the motor and the inverter, the gearbox and the controls all in the center front of the vehicle and then has independent half shafts going out to the wheels. The model vehicle now has a rigid e-Axle in the rear and an independent e-Axle in the front. Finally, as Jim, Aziz and Byron all highlighted earlier, we, Dana, design, engineer, manufacture and service each of these components in the e-Axles in-house, positioning us to deliver an optimal system solution for our customers and putting us in a pole position to capture this incremental content. I want to thank both of you guys for your help and everyone can return to your seats. And now I'll put some numbers to this increased content. Slide 68 memorializes what we just walked through using the vehicle model. On the left is one representative example of rear-wheel drive 4x2 driveline for this type of vehicle, which could cost around $1,500. As we highlighted in an e-Axle configuration, the driveshaft is no longer needed, but as you'll see on the right, the axle remains, a gearbox is added, along with the electrodynamic components, the motor and the inverter and then finally, the controller for the system. The new content per vehicle for this mechatronic system could cost around $4,500 for an increase of 3x the original mechanical system. On Slide 69, for the first time, we're disclosing the same estimated CPV uplift for our Power Technologies products. The typical sealing products we provide for a diesel engine are represented in the upper left, a cylinder head gasket and a valve cover. Below those, you will see the typical thermal products we produce for a gasoline engine-powered vehicle, oil coolers for both the engine and the transmission. Combined, these products could cost around $150. On the right of the page, we show the products these same competencies deliver for electric vehicles. First, in the upper right, our sealing competence is levered to deliver metallic bipolar plates for a fuel cell stack. Below those are the thermal products for electric vehicles, battery cold plates and power electronics cooling modules. Combined, these products could cost around $450 per vehicle when weighted for the expected mix of fuel cell vehicles within the electric fleet. In summary, Dana's content per vehicle is expected to triple across all 3 of our drive segments as well as our Power Technologies segment. But the top line growth is only half of the story. As we demonstrated in the vehicle model, the software and controls for the powertrain move from the engine and transmission to the driveline. This, combined with our vertical integration of high-value subcomponents, will lead to significant margin expansion potential for our smart integrated driveline products. Slide 71 illustrates this margin expansion potential. On the left, you will see that the powertrain controls, which were embedded in the engine and transmission, now move to the e-Axle in the middle of the page. This e-Axle includes high-value electrodynamic components alongside the mechanical parts. Since we're able to produce all of these subsystems in-house, including embedded software, we have the potential to meaningfully expand our margins as these systems come to market. And the bar chart on the right of the page depicts the illustrative uplift from these drivers. We stand to grow our top and bottom lines significantly as we migrate from ICE to EVs. And towards the end of the presentation, I'll provide some further details on the financial return profile for our electrified business. With that, I'm going to turn it back over to Jim to articulate the Dana difference.

Next, I will highlight that Dana represents a unique investment opportunity to participate in an EV growth trend because we are partnering with both established OEMs and emerging start-ups. One of the most common questions we get from investors is around the rate of in-sourcing versus outsourcing that will be occurring in the transition to electrification. Let me reinforce, as there has been for decades, there will continue to be a significant amount of both in-sourcing and outsourcing as Jonathan evidenced earlier when revealing our addressable EV market. There are some noticeable patterns as to why customers would choose to outsource and at other times they may elect to in-source. The primary reason that customers choose to outsource is that there's competing demands for their capital to be competitive in the emerging mega trends across their markets, including shared mobility, autonomous driving, digitalization and electrification. There are also many applications where it's cost prohibitive to develop certain specialized solutions. So it's economically preferable for OEMs to utilize suppliers for their expertise across a broad range of vehicles. For instance, customers come to Dana for a differentiated technology on solutions in high torque, high payload and robust applications. This includes, as one of many examples, the renowned Dana 44 off-road axle system, which for decades has remained the driveline of choice for off-road enthusiasts around the world. However, our customers may continue to in-source some components as they could have existing in-house capabilities that they want to leverage or have made specific commitments to their workforces. Other times, in certain applications, they may want to differentiate select aspects of their vehicle for their customers. This often comes down to 2 key criteria driving the outsourcing decision that's illustrated by the chart in the middle of the page. Customers will typically in-source programs with higher relative volumes and comparatively lower number of variants. Conversely, the type of business that we see outsource will usually have a higher number of variants and relatively lower volume. This concept is evidenced by the examples that I will share on the next page. This slide shows a representative sample of vehicles across all of our end markets that illustrate this concept. A primary example that can be seen with our largest customer on the Ford F-150 which has few variants in the driveline configuration and a nearly 1 million units produced per year, the driveline is manufactured in-house at a Ford facility in Michigan. However, for the Ford Super Duty trucks, they've chosen to outsource the driveline to Dana. The vehicle is considerably higher number of driveline configurations and about 1/3 of the volume. These dynamics play out in many situations across the broader mobility markets, including sourcing patterns for heavy vehicles. In light vehicles, for electrification, we expect to continue to see similar scenarios. The proof points for this trend continuing in electric vehicles are the sourcing decisions from a number of established and emerging OEMs across all of our end markets choosing to outsource to us. When you combine Dana's commitment to customer centricity with our legacy of high-powered rugged axles and unmatched electrification portfolio, I believe it positions to be -- positions us to be a go-to partner for our customers in the e-mobility space for years to come. We talked a lot this morning about how Dana has elevated our leadership position in e-mobility space throughout -- through innovation. Next, I'd like to outline how we differentiate ourselves through our ability to leverage our robust infrastructure and scale to meet growing demands of a world quickly moving towards electrified mobility. With our expansive global footprint spanning 33 countries, Dana is prepared to bring full -- our full enterprise to the table to ensure that we continue to be the supplier of choice for our customers around the world. Dana has a growing electrification infrastructure with both technology centers and talent. As I stated earlier, we have a sizable team of the world's leading engineers, technicians and scientists dedicated to breakthrough advances that empower mobility and industrial customers. To meet the growing demands in electrification, we're actively expanding our electrodynamic footprint around the world. This includes the location that we are broadcasting from here today our all-new state-of-the-art sustainable mobility center on the campus of our world headquarters in Maumee, Ohio. We also have recently expanded our capacity and made significant investments in Weifang, China, and built a brand-new manufacturing center in Chakan, India. In addition, we will be further expanding our footprint in Europe and North America over the course of the next 2 years to support recent customer success. But it's important to recognize that while we're making technology, talent and footprint investment, the asset base that we already have is highly relevant for e-Propulsion systems. It's important that I illustrate the broad range of complex processes required to produce e-Propulsion systems from electrodynamic manufacturing to mechanical manufacturing assembly and final system assembly. The first row highlights that all these competencies are highly relevant for e-Propulsion systems. We have substantial mechanical and final assembly assets that can reused for electric propulsion system assembly. Some areas where we need to make further investment, such as power electronics assembly, are not capital intensive. But we will be making meaningful investments in motor assembly and in the line testing to produce these systems. Today, we produce axles on assembly lines that will be converted to produce e-axles by adding stations and end-of-line testing so that the equipment can be largely reused for the next-generation systems. The implication for us is that Dana will have much lower investment and be more cost competitive than many of those entering the EV space. The bottom line, Dana is a reliable partner our customers trust, and they recognize we have the ability to move quickly, accelerating our customers' speed to market. Physical assets are a small part of what it takes to perform high-volume, high-quality complex manufacturing. It takes decades of operational expertise and know-how to efficiently produce these systems. The Dana operating system is at the core of all that we do, and our high-level capabilities highlighted in the 4 pillars of the system shown on the right will be differentiators in electric vehicles, just as they are in traditional manufacturing. If you're part of the Dana family, you know how important safety and quality are for us. Safety first, all day, every day is built into our culture, promoting the stop-and-fix mentality where everyone is quick to intervene, be proactive and implement best practices for safety across every aspect of the business. Like safety, building quality into our products and process is the foundation to customer centricity. Exceeding customer expectations with a quality-focused culture by safely delivering products with 0 defects and on time is how we build lasting relationships we have developed with our customers. Make no mistake, producing systems like those needed for electrified vehicles is very complex when you factor in all the advancements that customers require today. What sets Dana apart is that we have more than a century transforming the mobility industry and making us a company our customers can always trust and rely upon. This slide represents the financial implications of the technical capability, talent and asset base and knowledge that we have across all 3 of our end markets. Our market reach is unparalleled because we can leverage our existing assets and future investments across the widest variety of sectors, customers and solutions to drive progression of our products down the cost curve and amplify the return on investment that we can deliver for our stakeholders. The final element is our strengthening core business that will fund our growth. Today, we have emphasized that we will not lose content in the migration to EV. And the financial implication is that our existing business will continue to grow and generate significant cash flow to fund the transition. In previous section, Jonathan, Ryan, Seth and [ Seth ] walked you through the model of this transition. As a summary of what was said, when the powertrain converts from traditional ICE to EV, the engine, the transmission and the fuel tank, which Dana does not produce, will no longer be present in the vehicle. And in an electric vehicle, the battery packs are added as new content, which creates, as Byron discussed earlier, an opportunity for thermal management capabilities, and Dana has a strong presence in this market. As Jonathan highlighted, the driveline content for EV increases significantly by 3x. While the driveshaft may go away, axle content remains and the gearbox content is added along with the electrodynamic software and controls. The key takeaway is that as a driveline supplier, Dana is a clear winner in the migration from the internal combustion to electric vehicles. Not only does our content remain, but there is significant amount of incremental content coming into our system with electric vehicles. This slide depicts why we expect to disproportionately benefit from the ICE to EV transition. The left side of the chart represents the range of in-house e-Propulsion technologies where Dana ranks near the top, having secured complete capabilities across all of our end markets. The scale at the bottom of the slide shows the potential for content per vehicle loss. The content headwind for Dana is relatively low, as we have an insignificant content loss through the electric transition. This starts us from an advantage position as we do not need electrification growth to first compensate for a loss of traditional products and that preserved business can fund the future. The financial implication of that competitive positioning is that the strength of Dana's core business which has resilient technologies in mechanical driveline systems will be maintained over the next decade, providing consistent cash flows to fund investments required for our growing electrification business. Now I'd like to turn it back to Jonathan, who will walk you through some specifics on how we view the financial prospects of electrification as well as an update on our financial outlook.

Thank you, Jim. This section will provide a clear road map for the value that will be created through electrification delivered. And I'd like to take this to -- you through this in 3 respects: First, by providing an overview of the expected financial performance of our EV business; second, by affirming our near-term financial targets; and finally, by providing an update on our capital allocation priorities. I'm pleased to share this morning that we're on track to surpass our $0.5 billion near-term EV sales target for 2023 by $200 million or 40%. I'm also excited to cast the long-term EV sales target of $3 billion in 2030, and we expect that by this time, it will be about 1/4 of our business. It's important to also emphasize that we look at EV growth like any other business decision, it has to be accretive. And today, we will outline the key milestones that provide us the confidence that the returns will far surpass our cost of capital. Despite the significant growth investments we're making, the tumult within the global supply chain and rapidly rising input cost, we still see a path to our 2023 financial targets of $10 billion of sales, 12% profit margins, 5% free cash flow margins and EPS of $3.50. Our first and primary use of capital will be to fund our growth. This will come in the form of substantial engineering and capital spending, but we still plan to generate over $1 billion of free cash flow in the next few years. As Jim mentioned at the onset of the presentation, while we reposition this business to compete in the changing landscape over the last 6 years, we have still returned $400 million of cash to investors in the form of dividends and share buybacks. Our Board of Directors remains committed to the $0.10 per share quarterly dividend, and we expect to fully utilize the remaining $150 million share repurchase authorization in the next couple of years and will still be able to strengthen our balance sheet to about a turn of leverage so that our customers have confidence in our ability to invest through this cycle when they choose to partner with Dana in vehicle electrification. And with these priorities, we still leave enough dry powder to opportunistically execute M&A transactions that will expand the moat we've built around our EV franchise. Page 88 outlines the financial trajectory of our EV business over the decade. I'd like to start by reminding everyone that by the end of this year, our cumulative investments in electrified technology will surpass $0.5 billion, and we fully expect to exceed $1 billion by 2025. Over these next few years, as the investment grows due to the commercial success that both Aziz and Byron outlined earlier, our sales will double from $350 million this year to $700 million in 2023, which is $200 million or 40% higher than we indicated at our last Investor Day in 2019. This accelerated growth will mean that our EV business should reach the profit breakeven point in 2023, ahead of what we originally expected. Even with the breakeven point on the near horizon, the EV business will constrain our overall profit margins by up to 100 basis points over the next few years. As we look towards the end of the decade, we fully expect our EV sales will reach $3 billion by quadrupling from 2023 to 2030, resulting in a 27% CAGR from today's sales level. Along the way, we expect to be free cash flow breakeven near mid-decade and to be margin accretive to the enterprise before the end of the decade. These key financial milestones in our journey provide the confidence that the return profile of this business will far exceed our cost of capital, delivering significant economic value to our shareholders. The layout of Page 89 will be quite familiar to those of you who follow us closely as these quadrants represent our key financial metrics. At our last Investor Day, we outlined a path to $10 billion of sales, 12% profit margins, 5% cash flow margins and record EPS. Since then, a global pandemic jolted the economy, and our supply chain is still feeling the tremors of this black swan event. And our input costs have skyrocketed. So needless to say, it's going to take us a bit longer to reach these levels than we anticipated back in 2019. But I'm pleased to share today that we see a path to achieving these targets by 2023. Let me highlight the key things that need to happen in order for these results to materialize. First, demand for our heavy vehicle products needs to continue to improve, and the current trends bode very well for this outlook. But more importantly, OEMs across all our end markets need to secure adequate supply, namely in microchips, to meet the demand from end customers. Second, to expand our profit and cash flow margins to these levels, absorbing the near-term 100 basis point profit headwind from electrification, our own global supply chain needs to stabilize. Global logistics and raw material costs need to abate from dramatically elevated levels, and our operations need to run on a more consistent and less interrupted cadence through improved OEM schedule stability. So we're monitoring these variables very closely as they continue to impact our business. Based on the current state, we now expect this year's profit margin to be towards the lower end of our guidance range, and cash flow margins will likely be closer to about 2% as we build additional inventory to optimize efficiency in the near term. But we will provide more color on this at Q3 earnings in about a month. In summary, as we expect these conditions will improve over the next couple of years, we believe this business will deliver $1 billion of free cash flow for investors after making more than $1 billion of capital spending investments to fuel our growth. So please turn with me now to Slide 90, where I'll walk you through how we plan to deploy this capital. The chart on the left of the page depicts our indicative capital allocation plans for the $1 billion. I'll start at the top and work clockwise. First, our Board intends to remain committed to our $0.10 per share quarterly dividend. Second, we plan to fully exhaust the remaining $150 million share repurchase authorization they've given us over the next couple of years. And we got started on this in the current quarter when we bought back about 1 million shares at an attractive price. Third, we're going to leave some room to continue to opportunistically pursue bolt-on M&A transactions that are accretive and enhance our competitive position. And finally, we plan to take about half of our free cash to pay down our term loan and a portion of our 2025 bonds. This extinguishment of debt, along with the profit growth I outlined on the prior page, will allow us to approach our net leverage target of about a turn by 2023, which is illustrated in the chart on the right of the page. In summary, as Jim outlined at the onset of the presentation, these 8 elements definitively demonstrate that Dana is a great investment within the EV growth landscape, which as you will see on Slide 92, we don't believe is fully reflected in our stock price. The primary goal of today's event is to help the capital markets recognize the attractive return prospects for Dana's investors. On this page, we outline the potential implications of electrification delivered. On the left, you will see that we have a substantial EV business that we expect will generate $700 million of sales in 2023. These sales are entirely from awarded programs and have realistic volume expectations applied based on our decades of experience within the mobility supply industry. It's worth noting that over the last couple of years since our prior capital markets event, this business has developed a very useful comp set from EV pure plays in both the heavy and light vehicle markets which currently trade at nearly 2 turns of 2023 revenue. On the right, through today's presentation, we hope you also more fully appreciate that we have a stable traditional business that doesn't lose content through the migration. If we go back about 5 years before the electrification trend really started to take hold, you will see this business typically traded at greater than 5x the 2-year forward profit expectation. We just confirm this number is expected to reach 1.2 billion, which is right on current consensus. Through the combination of these 2 businesses, our enterprise value should increase significantly from the implied amount in our current trading levels as the overall market digests and appreciates today's message that Dana's narrative is no longer electrification expected but electrification delivered. I want to thank all of you for listening in this morning. I'm now going to ask Craig to help moderate a Q&A session with the investors and analysts in the room here.

Thank you, Jonathan. Again, we're taking questions in the room today. So anyone have a question? We have our first question.

Ryan Brinkman from JPMorgan. In the past, you've spoken about some of the cost or go-to-market synergies that may exist by servicing each of light vehicle, commercial truck and off-highway end markets. Can you talk about how electrification impacts this dynamic?

Yes. It's a fair point. What we highlighted at our last Investor Day is we estimate the multi-market synergies for our core products to be $200 million across the enterprise. And that's primarily because we have the ability to leverage the purchasing and engineering scale for making very common products across the 3 largest mobility markets in the world. We believe that's going to continue in electrification. So the continued investment we make in the next few years is going to start in the commercial vehicle space, like Aziz highlighted, and the off-highway space, but that's making its way to the light vehicle space as well, too. So many of the costs that we're incurring in engineering and program management in those heavy vehicle businesses are highly relevant for the products that Byron featured for the light vehicle market. So we anticipate that this will continue to come and grow in the next few years, and we'll keep everyone updated on that as it progresses.

Another question is you mentioned electrification disintermediating the engine and the transmission but not the driveline and software content and value-add flowing to the driveline from engine and transmission. So what response are you seeing from the engine or transmission manufacturers? Are you seeing any of the directly disintermediated suppliers attempt to make forays into driveline or otherwise try to engineer rival solutions?

Yes. I mean, we are certainly seeing the competitive landscape for e-axles evolve and change. The last chart that Jim highlighted in the final section illustrated that there are traditional powertrain suppliers that have developed very formidable capabilities in electrodynamics. So the competition set is changing. And it is fair to say that some of those that have secured those in-house electrodynamic capabilities did have content that is going away inside the engine and transmission. So certainly a rapidly evolving competitive landscape for e-axles.

Joe Spak from RBC Capital Markets. I guess I wanted to have a little bit of discussion about the TAM and the insourcing. First is just a point of clarification. When you list all those TAMs, is that just what you think is available for outsourcing? Or does that include what you think will also be done in-house? And then it was really helpful, James about the slide. It shows the different factors for in-sourcing versus outsourcing. Maybe you could talk a little bit about that by end market because it does seem, based on that chart, you would see potentially more outsourcing in commercial vehicle and off-highway. And even one of the things we're hearing on the light vehicle side is one of the reasons they want to do this is to be able to offer OTA throughout the vehicle and different drive modes and such and really differentiate to the customer. It seems like that might be less necessary on the commercial vehicle on the off-highway side.

Yes. I'm not sure I caught the first part of the question, but Joe, let me take...

Sorry. The first part was just -- was really like definitional like is when you mentioned these TAMs, does it include the in-source and the outsource of opportunity or just what's available today?

I can get that out of the way and then Jim can talk about how the market is evolving. So the total market value for our products that we estimate in 2030 would be about $30 billion. So the $19 billion that we're highlighting excludes what we estimate would be the captive share at about 40%. So everything in the bar graph on that page was what we estimate is available for third-party suppliers.

Yes. So then back to your in-source and outsourcing model, I'll do the best I can to answer it because there is absolutely not an immediate correlation to the question of what is today versus what is tomorrow. What you said specifically about, like, say, the light vehicle customers wanting to differentiate via now the powertrain and back into the e-axle and all that other stuff is absolutely correct. However, specific to our business, there's also, and I hope I emphasized it enough, there is also a very much a need and a desire to leverage off of a company like Dana that understands high torque, high payload, has direct feedback from the customer groups, et cetera, et cetera, to pull into that market so that still that high complexity niche market that we're in on the higher-end truck side is certainly that we still see it just as much as ever. Why did customers come to us in the past? Not because they just said to themselves, "Well, let's just give them that." They came to us for specific value creation for them to be able to sell more vehicles. There's no doubt about it. So I really don't see it that significantly different. Again, passenger cars, a whole another story, maybe less complex programs, but high volume. That certainly could be. Now let me jump to the other segments. I will tell you, I'm going to go all the way over from light vehicle to off-highway. If you go back to the history of time as well that's a more fragmented customer group. You may think of certainly the big customers, which are great customers of ours, such as Caterpillar or John Deere, whatever the case may be, but it's also much more fragmented. And then when you think about that, their ability to leverage technology, scale on component costs, system, the capability, et cetera, et cetera, I think there's -- not I think, you can see it in the evidence we showed you today, they're going to continue to migrate us for all the reasons I just mentioned. Commercial vehicle net-net really isn't changing that much as well because they're kind of in the sweet spot of what I just said, right? They're going to be lower volume, but they're also going to want to differentiate in the powertrain. So they're going to pick their spots to work with us. But as you can see, an award after award after award, we think we can continue to create value for them, not just here in North America, but around the world.

And then, Jonathan, just a second question on the '23 target. So you upped the EV, revenue. The total enterprise revenue and margins are the same. I guess we didn't really know what you were thinking before about profitability on EV or breakeven, but it seems like something between the lines had to -- have changed. So I was wondering if you could just enlighten us is it that because the sales are higher, you get to breakeven a little bit faster and there's -- or is that you're investing more and it's still ways and maybe the legacy business is a little bit stronger than you expected?

Sure. The primary change from a couple of years ago is largely the incremental contribution margin from the higher sales that's helping us to get to breakeven a little bit quicker than we expected. So we originally thought it'd be a year or 2 after that. From an overall company perspective, that implies that the margins, and as I highlighted on the page, we think we'll be compressed by up to 100 basis points even at breakeven in 2023. So it just highlights that if it weren't for the electrification investment as the heavy vehicle markets improved, the margins could be quite a bit higher than the 12% that we're indicating.

But does that imply that something on the legacy side business is a little bit softer than you anticipated before?

Yes. Yes. So undoubtedly, the raw material cost increases that we've seen in the last couple of years, even though we recover the vast majority of those, those are going to compress our margins. I would say that's probably the biggest outlook change from just a couple or a few years.

Brian Sponheimer from Gabelli Funds. First of all, really well articulated day. This is about as good as I've seen. I'm curious about the vetting process and the quoting process for traditional OEMs for EV platforms versus the new entrants. Talk about that and then just a follow-up on the numbers.

I'll take the quoting process. And Brian, thanks for the question. And again, thanks for everyone's attendance today and on the phone or virtual. The quote process really isn't that dramatically different than it's ever been. We were trying to illustrate that a little bit that it still comes out where you better have innovation and technology to have a seat at the table. Let's just start there. The difference maker for us is it's not just mechanical innovation at the table. We have the full suite of it. And we believe the system benefits of pulling it all together is how customers win in selling your vehicles. So it's still innovation and technology at the table. And then you're typically going to maybe perhaps produce some sample products or whatever it may be to illustrate them and some of you that are here today are going to see some out there on the test track. And then you go through the standard RFQ process that we call it a request for quote and go through it. And so you still have to be cost competitive. You still have to have the right manufacturing footprint. I spend a little time today emphasizing the importance of it. As I've said many times on our prospective earnings calls, we're a build where we sell type of company because you have to be. You don't have the luxury of shipping things around the world. So you can see with our process. All of those things will come into the ability to win or not win. Footprint, technology, people, credibility, operating system, that all carries over. I hope that answers your question.

It does in one way. I guess the other way is that it's not PACCAR or GM coming to you saying, prove yourself. How do you look at someone that's never produced a vehicle before and say, prove to me that this is worth our resources?

Yes. Great question. So on the infamous managing risk in a business would be a way to think about that and certainly something that I spend a lot of time on as well as our entire team is when you're in those type of circumstances, it's not by accident that we have designed the organization that we have flexibility, commonality and shared products that go across all of our end markets. So if hypothetically, OEM X is just not going to make it, oh by the way we've designed the product that the same products or something similar in some variance is going to be utilized across multiple other products. So we used an example of today of a significant motor win that we had, right? Even in that, it's not just in commercial vehicle, but not by accident, it's also going to use essentially the same product in the off-highway market. So we feel like we've built in a good level of risk of vetting us in that regard.

So just taking that finally, and I'll get out of my own way here. Just 2030, you've got $3 billion of EV sales. How do you handicap traditional OEMs versus new entrants there?

Yes. While we haven't outlined it by customers, I will say that we think in our end markets, obviously, our established and existing customers are going to make up a very large portion of that. We certainly believe that there's going to be a significant amount of growth. So proportionately, we'll see more business from emerging OEs, but it would be fair to say that the lion's share of those products or a very large component of those will be from customers that we've done business with for a very long time.

Shreyas Patil, Wolfe Research. So just coming back to the TAM question, we've seen -- I just wanted to better understand within some of the subcomponents how you're thinking about in-sourcing versus outsourcing. I know you talked about 40% overall, but we've seen some estimates where motors are going to be 40%, 50% insourced. Power Electronics may be largely outsourced, et cetera. So I'm just trying to -- as you -- how are you thinking about some of the subcomponents in that?

Yes. I think the most important thing to appreciate is when you hear a lot of those terms, they obviously include the very high-volume passenger car segment, which we've highlighted a couple of times today is not our core market. So that addressable market for us doesn't include or has negligible -- unibody construction vehicles. There may be some vans that are included in there. So these are largely full-frame trucks. The torque requirements and the performance requirements of those systems are such that we are tailoring our electric motor and power electronic development to meet those requirements. So broadly, as Jim indicated just a moment ago, that 40% factor, we believe, is going to be pretty common across the end market. As it exists today, even in mechanical drivelines, customers make a meaningful portion of those systems in-house. But that technology requirement for what's going to meet the mainstream pass car volume may be one of the things that creates that dissonance for what the insourcing percentages will be in our core heavier vehicle segment.

Okay. So for subcomponents, it's going to be pretty similar at that 40%.

Yes. And we're highlighting there an example of a full system. So we're looking at the TAM as the entire system. But you saw one of the new awards today. European-based OEM has awarded Dana a specific subcomponent motors that they're going to be using in their e-Propulsion system. So we'll see situations where they take the full system from us or components and all of those are captured in the TAM that we highlighted.

Okay. And then on the question about the EV margins, so today, is the way to think about it that essentially the primary reason the margin is basically not at the average is essentially because of the weight of investment that's been put in that? So essentially, the incremental margin on those EV products as you ramp up is going to be comparable to what it would be for an ICE product?

Well, we're actually saying today that the contribution margins are going to be healthier, largely for 2 reasons. First and foremost, the software is now embedded in our systems, and we capture more of the value there. And second, we have higher-value subcomponents that were vertically integrated on, which can help to bolster margins. The reason we're not going to get to breakeven in '23 is that the dollar contribution is just not big enough yet to offset the meaningful investment we're making in technology. And we've highlighted, if we were making money already, we and you should be concerned. We're at a point where we're heavily investing. But the long-term margin profile of the business, we think, is very attractive. And it's just continued adoption of vehicles that are going to drive us to breakeven and margin accretion later in the decade.

Thanks for the presentation. Very helpful, as everybody would agree. I just wanted to follow up on the 2030 target. I know you don't want to get too granular, but I was just curious if you could comment on 2 things. One, the CPV that you outlined, the 3x increase, is that the CPV right now where a lot of these are low-volume developmental projects? Or is that kind of the steady state add volume CPV? So just curious, in your 2030 targets, is that 3x CPV -- are you using the same CPV there? And then two, I was just wondering if you could comment on the portion of light vehicle electrification in that 2030 target, whereas right now, you're 50% to 60% light vehicle -- light vehicle moving slower. But as you -- when you look at the breadth of opportunities by 2030, is it a similar mix of what you have now?

Sure. So to the first part of the question, the content opportunity that we highlighted for our EV products is the estimated price or cost towards the end of the decade. So clearly, early on, if OEs are buying a very small amount, the prices are higher, but we have estimated what the cost curve is going to look like through the end of the decade. So the content opportunity that we shared that was just a representative on-highway vehicle is years from now, not what we may sell those at just today. To your second point, I think you raised a really interesting point, the light vehicle segment in our expectations will continue to become a more meaningful point. Because even though the adoption rate, I think we highlighted for light-duty trucks is going to be in the teens by the end of the decade. The volume is going to be significantly higher compared to some of the other segments. So as Byron indicated, we've got a lot of things that we're working on today with major OEs around the world. We're very confident. We're going to win a good share of that business, and that is reflected and is a more meaningful component of that $3 billion number by the end of the decade.

Is more meaningful and that the mix might even be higher than your current...

Yes. Sorry. More than where we are today. So obviously, the majority of the $350 million that we're doing today is in the heavy vehicle segments. It will make -- it will be a much healthier share, and I think we'll expect it to be pretty comparable with what we see in the traditional business eventually.

Got you. Very helpful. And then the second question, and I want to be sensitive to it. But it was a great layout of how a lot of driveline content doesn't go away and how a lot of the electric content is able to reuse footprint. So as we think about kind of your 140-odd locations, your engineering base in traditional driveline, the growth in FTEs in electrification, I was just hoping you could sort of talk about to what extent we should think about any restructuring in the business as it relates to kind of the driveline facilities. And I guess the comparison I would draw is when we think about the trade-off between ICE and EV in certain product lines, one example being the wire harness where the electric wire harness is effectively able to pretty much reuse the exact same facilities and investors generally look at that as a purely accretive business versus a trade-off business. I'm wondering to what extent we can kind of look at your business and draw the same conclusion.

Yes, I'll take a swing at that. I am not at all sugar coating it. I mean we all come from somewhere, finance, marketing, ops, I'm an operations guy, right? That's where I came up. When you look at our overall business, there's a reason for the footprint the way we have it, largely speaking, near to the customer, right? There's also a strategic plan and intent around kind of our bull's eye strategy where our major gear manufacturing facilities are around the world as well. When you think about at the core, we're still going to have the core gear manufacturing. It's kind of just a swap from EX or from a regular axle -- 20 axle. If you go along the line of like where our propshaft plants, let's assume those are going to go away, assume it's going to be a long time, but let's assume they're going to go away. Those are still positioned appropriately to support the customers' needs. When you think about an operating system and the capabilities in manufacturing to launch the programs, yes, you will have to distribute and you'll have to bring in certain capabilities from people to do the electrodynamics, motors or inverters or converters or chargers and the other stuff we're doing. But if you still back up from -- you still need a financial department. You still need a quality department. You still need a manufacturing department. You're still doing all the same things you're doing that we've been doing for 117 years. You still reuse that. And by the way, just to speak with data, we are already repurposing many plants to build electrification products. We're building electrification products in former mechanical plants today.

Tim Caleb, BMO Capital Markets. Listening to you today, you guys have clearly done a phenomenal job building out the technological know-how, winning a significant amount of contracts with new customers and existing customers. What we haven't talked about today was the opportunity potentially over in Asia, right, which is half the electrified market. What's the plan of attack for that geography if there is a plan of attack in place?

Yes. Let me take a swing at it first. And if I don't hit it exactly, please let me know. So let me set some foundation that we elaborated the -- again, we are 50% North America-based. But if you just go look back on the journey from our enterprise strategy of '16 and '19 and then again today, take, for example, we've doubled our business in India. We've gone directionally, I'll just leave it at that, but hundreds of millions of dollars in India alone. We have a very substantial business in Thailand and not as less concentrated in China, to your point, largely speaking, because of 2 factors. One is there's not that many trucks, and that's where we try to not be everything to everyone, and we're not -- we're going to continue to not try to be everything to everyone and just deliver on that with an exception that we have a very large unconsolidated joint venture with Dongfeng over there in the commercial vehicle business. So we are going to be able to continue to support them in the China market specifically. And we're going to be able -- as the markets evolve, as you saw in here, we are a very strong participant in China as it relates to forklifts, as it relates to all of the off-highway equipment. You'd be quite surprised to learn if we had more time today just to how much we are actually cascading through that -- through the China region and throughout Asia. So we are growing at a reasonable pace. But again, we will never be as big in China because of pure fact and unless it turns into a truck, high payload, high torque business, we just won't be that big. But we have all the same resources, the same technical centers and e-technology centers, the same capabilities, the same validation capabilities to be able to go wherever the market leads us.

Okay. We're just about out of time. I think we have all the questions answered in the room today. So Jim, I'll turn it over, if you have any last comments.

Well, thank you very much, Craig. First of all, I'd like to thank Craig and the entire Dana team for really putting this all together. It's no small feat to pull this out. I'd also like to thank everyone that traveled distance in these difficult times and challenging times in this global pandemic, once in a 100-year pandemic. We appreciate that. But we also do as much appreciate the attendance of you out there virtually with us. We're very excited about what we've done for sure. But the one thing I would offer is we often use in manufacturing companies, we use the 3Ps. We use it either the process, the product or the people. Anybody out there in virtually today or with us today, you might have walked away and said, boy, did I learn something or was beneficial on the process side. We just talked about that or you learned something on the product. But what I would offer to you is you should take away the third P. It's really all about people. People, people, people. That's not a soft set of words or a word. It's about when we started on this journey, we got on a first -- our strategy was to be a first mover opportunity to go acquire companies with skilled, talented people that have been doing electric vehicles for over a decade, not just started it up yesterday. And that's what was going on, right? These companies such as TM4 in the bus market for over a decade and so on and so forth. This is an accumulation of those assets with great people, combined with the Dana DNA to go work together and make special things happen for our mobility customers. So hopefully, those of you who are still here today, you'll get an opportunity to experience some of that. For those of you aren't, we'll do it the next time. Thank you all very much for your time and attendance. Thank you.