NAFTA Region

NAFTA Region
Sergio Marchionne
Our plan leverages the resources of a
global company
Architecture
Sharing
Industrial
Infrastructure
Purchasing
Synergies
NAFTA Region
Powertrains
Technology
Sharing
We have 12 assembly, 8 stamping/support and
16 powertrain/component manufacturing facilities
ACTIVE WORKFORCE
ASSEMBLY
000s
2009 2013
Manufacturing
33.1
3.2
Engineering
51.8
V
4.7
Other Industrial
2.8
4.9
Commercial/Corporate
6.9
9.7
46.0
71.1
London
H
Labor Contract Expiration Dates
UAW - September 2015
Unifor - September 2016
CTM - May 2016
2A E
MR
PN
Grand Rapids
1
Lansing
I J 7
W X
4 D
3OF 5
B
C Detroit
L Q
Michigan
K8
Windsor
1
2
3
4
5
6
7
8
U
6G S
T
Toronto
Southern
Ontario
Conner, Detroit, MI
Jefferson, Detroit, MI
Sterling Heights, Sterling Heights, MI
Toledo, Toledo, OH
(North & South)
Warren Truck, Warren, MI
Brampton, Brampton, Ontario, Canada
Windsor, Windsor, Ontario, Canada
Saltillo (Truck), Saltillo, Mexico
Saltillo (Van), Saltillo, Mexico
Toluca, Toluca, Mexico
STAMPING / SUPPORT
POWERTRAIN / COMPONENT
Auto Die Tool & Die, Grand Rapids, MI
L
M
N
O
P
Q
R
S
T
U
V
W
X
Belvidere Stamping, Belvidere, IL
Mt. Elliott Tool & Die, Detroit, MI
Sterling Stamping, Sterling Heights, MI
Warren Stamping, Detroit, MI
Brampton Stamping, Ontario, Canada
Saltillo Stamping, Saltillo, Mexico
Toluca Stamping, Toluca, Mexico
AFFILIATE COMPANIES
Magneti Marelli - 6 locations (3 US, 3 Mexico)
Comau - 2 locations (US)
Teksid - 1 location (Mexico)
NAFTA Region
A
B
C
D
E
F
G
H
I
J
K
Belvidere, Belvidere IL
Dundee Engine Plant, Dundee, MI
Indiana Transmission, Kokomo, IN
(1&2)
Kokomo Trans / Casting, Kokomo, IN
Mack Engine Complex, Detroit, MI
Tipton Transmission Plant, Tipton, IN
Trenton Engine, Trenton, MI
(North & South)
Toledo Machining, Perrysburg, OH
Etobicoke Casting, Toronto, ON, Canada
CPK Interior Products, Belleville, ON, Ca
CPK Interior Products, Guelph, ON, Canada
CPK Interiors, Port Hope, Ontario, Canada
Saltillo North Engine, Saltillo, Mexico
Saltillo South Engine, Saltillo Mexico
We have invested in our manufacturing infrastructure
to improve processes and increase capacity
~ $4.2B invested in NAFTA assembly plants over the last 5 years
Sterling Heights
•
•
•
•
~$1.1B Invested
New Flexible Body Shop
New Paint Shop
New Onsite Logistics Center
200
Toledo North
• ~$700M Invested
• Body Shop Expansion
• Retool General Assembly
Cherokee
Saltillo Van
• ~$600M Invested
• All New Greenfield Plant
Belvidere
• ~$550M Invested
• New Flexible Body Shop
Promaster
Dart
Added Shifts & Increased Capacity in 6 Assembly Plants
State-of-the-Art Body Shops
Jefferson North, Sterling Heights, Belvidere,
Warren Truck, Toledo North, Saltillo Van
Allows production of multiple nameplates
from the same architecture
NAFTA Region
We have invested in our manufacturing infrastructure
to improve quality and optimize capacity
~ $3.8B invested in NAFTA powertrain plants over the last 5 years
Kokomo Transmission
Trenton Engine
• ~$750M Invested
• ~$700M Invested
• All New Flexible Machining
• All New Flexible Machining
• >1M Units Produced Annually
8-speed ATX
6-speed ATX
Pentastar V6
Tigershark I4
Mack Engine
Tipton Transmission
• ~$300M Invested
• All New Flexible Machining
• Revitalization Of A Plant
Scheduled For Shut Down
• ~$150M Invested
• All New Plant And Flexible
Assembly System
Pentastar V6
Added Shifts & Increased Capacity in 11 Powertrain Plants
Kokomo (2), Trenton, Mack, Tipton, Dundee, Saltillo (2), Toledo, Indiana, Etobicoke
NAFTA Region
9-speed ATX
We are optimizing our NAFTA
manufacturing footprint
Harbour FCA NAFTA Assembly Plant Asset Utilization
2009 – 2013 Actual, 2014-2018 Business Plan Forecast
100%
Volume
109%
Capacity
Flexibility
43%
2009
2013
ACTUAL
2014
2015 *
2016
PLAN
* Decline in utilization due to model conversion
NAFTA Region
2017
2018
Growth in NAFTA will be supplemented by
production from other regions
vehicle sales (000s)
IMPORT
LOCALIZED
2013
32
2,116
253
2018
360
2,590
380
Produced in other regions
and sold in NAFTA
NAFTA Region
Produced and
sold in NAFTA
EXPORT
Produced in NAFTA and
sold in other regions
We have made significant
enhancements to our product portfolio
2010
2011
70th Anniversary
Commemorative
product actions across
all nameplates
2012
2013
• We Have Launched
Over 30 New or
Significantly Refreshed
Products Since 2009
• We Have Focused on
Key Segments
- Compact Sedan (Dart)
- Mid-Size SUV (Cherokee)
- Full-Size SUV (Gr. Cherokee)
- Small Cars (added Fiat brand)
- Truck & LCV
refresh
NAFTA Region
Each of our brands is uniquely
positioned in the market
NAFTA Region
NAFTA: Historical industry trend
(1998-2013)
(Millions)
19,6
20,3
20,0
19,9
19,6
20,0
20,2
19,9
19,3
18,7
18,1
17,5
16,2
15,6
14,2
12,9
17,4
16,0
17,8
17,5
17,1
17,0
17,3
17,4
17,1
16,5
14,8
13,5
10 Year NAFTA Average Industry: 19.7M
1998
NAFTA Region
1999
2000
2001
2002
2003
2004
10,6
(1998-2007)
2005
2006
2007
2008
2009
11,8
2010
15,9
13,0
2011
2012
2013
NAFTA: 2009-2013 Business Plan
November 4, 2009
NAFTA TOTAL SALES
What We Said…
~2.1M
~1.2M
NAFTA Region
Nov. 4th Plan
Nov. 4th Plan
2009
2013
NAFTA: 2009-2013 Business Plan
November 4, 2009
NAFTA TOTAL SALES
… What We Did
+82%
968K units
~1.2M
1.180M
Nov. 4th Plan
Actual
2009
NAFTA Region
~2.1M
2.148M
Nov. 4th Plan
Actual
2013
NAFTA: All brands have contributed to our growth
(2009-2013)
Total NAFTA Sales (000s)
BRAND
NAFTA Region
2009
2013
% Increase
445
736
+65%
277
557
+101%
258
463
+80%
197
332
+69%
3
60
BIG
1,180
2,148
+82%
NAFTA: Total sales & share league standings
(2009-2013)
RANK
TEAM
NAFTA
NAFTA
TOTAL VOLUME TOTAL SHARE
GROWTH
GROWTH
1
968 K
+2.3 ppts.
2
928 K
+0.2 ppts.
3
755 K
(2.0) ppts.
4
599 K
+0.7 ppts.
5
465 K
(2.5) ppts.
6
423 K
(1.0) ppts.
and the
7
367 K
+0.9 ppts.
8
320 K
+0.4 ppts.
HIGHEST
TOTAL SHARE GROWTH
9
261 K
+0.6 ppts.
in NAFTA since 2009!
10
222 K
+0.6 ppts.
delivered the
HIGHEST
TOTAL SALES GROWTH
Source: SIR
NAFTA Region
Digging a little deeper: U.S. Market
U.S. retail share gain/loss
U.S. Retail Share Gain/Loss
3,3
(2010CY - 2013CY)
0,5
0,4
0,3
-0,2
-0,4
-0,4
-0,5
-1,3
is the FASTEST GROWING OEM at retail share since 2010
NAFTA Region
-1,4
NAFTA: Total market share by region
(Q4 2009 – Q1 2014)
20%
Total Share
10%
12,5%
8,1%
0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
'10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14Q1
Q4
'09
2009
20%
2014
Total Share
16,7%
11,6%
10%
0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
'10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14Q1
Q4
'09
2009
10%
11,4%
2014
Total Share
7,2%
0%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
'10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14Q1
Q4'09
2009
NAFTA Region
2014
• Grew Total Share by 4.4 ppts.
• Grew Retail Share by 6.5 ppts.
• Fastest growing OEM in U.S.
• 48 Consecutive months of YoY Sales growth
• Grew Total Share by 5.1 ppts.
• Fastest growing OEM in Canada
• #1 Selling OEM 2014 CYTD
• 52 Consecutive months of YoY Sales growth
• Total Share down 4.2 ppts.
• Removed low margin purchased products
• Profitable replacement products in plan
• Relationship with Hyundai ended
We will continue to manage our Fleet
business in a manner to maintain brand equity
Fleet Business Plan Objectives
U.S. Total Sales Mix
- Fleet mix at roughly 20% of total U.S. sales
Fleet
36%
28%
26%
22%
- Concentrate on most profitable Fleet business
- Improve vehicle mix within each Fleet channel
PRIMARY FOCUS
Retail
64%
2010
72%
2011
74%
78%
COMMERCIAL
2012
2013
GOVERNMENT
Types of
Fleet Business
- Significantly lowered Fleet mix
- Residual values have increased ~9 ppts. since
2009 vs. industry average increase of ~6 ppts.*
* source: Automotive Lease Guide
NAFTA Region
DAILY RENTAL
Clear product priorities have been
identified by our brands
STRENGTHEN OFFERINGS IN COMPACT AND MID-SIZE CAR SEGMENTS
RENEWAL OF AGED PRODUCTS USING MODERN ARCHITECTURES
REGAIN LEADERSHIP POSITION IN THE MINIVAN SEGMENT
EXTEND MARKET COVERAGE OF RAM BRAND
CONTINUED RENEWAL OF POWERTRAINS
CONSISTENT PRODUCT CADENCE
NAFTA Region
NAFTA growth driven by many factors
Strong Unique
Brands
World-Class
Products
High Capacity
Utilization
NAFTA Region
Broad Market
Coverage
Robust Dealer
Network
NAFTA industry outlook is favorable
+
+
+
+
+
Moderate economic growth
Positive job outlook
Efficient credit markets
Age of car parc at historic high
Growing consumer confidence
NAFTA Region
- Increasingly competitive marketplace
- Regulatory compliance costs
- Tight capacity in supply base
We are forecasting NAFTA SAAR to
remain stable over the plan period
SAAR - FCA Forecast
Millions of Units
Actual
1,0
1,6
1,1
1,2
1,6
1,6
1,2
1.6
Plan
1,1
1,1
1,7
1,0
1.0
0,9
1,7
0,8
0,8
1,5
17,0
17,3
17,4
17,1
1,3
1,3
1,7
1,7
1,7
1,7
1,7
16,6
16,9
17,0
17,0
1,7
1,6
1,6
16,5
14,8
13,5
10,6
1.7
1,2
1,3
1,2
11,8
16,3
15,9
13.1
-
Total
NAFTA
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2014 2015 2016 2017 2018
19.6
19.2
NAFTA Region
20.0
20.2
19.9
19.3
16.2
12.9
14.2
15.6
17.5
18.7
19.5
19.9
20.0
20.0
NAFTA sales increase through the plan period
on the strength of new product offerings
NAFTA TOTAL SALES
WHAT WE PLAN TO DO …
+~48%
+~1M units
2.1M
3.1M
2.9M
2014-2018 Cumulative Sales
>13 Million Vehicles
in NAFTA
Actual
2013
NAFTA Region
2018
2018
Jeep, Ram and Chrysler brands are key
drivers of NAFTA volume growth
Total NAFTA Sales (000s)
BRAND
SUBTOTAL
NAFTA Region
2013
2018
% Change
736
660
- 10%
557
800
+ 44%
463
620
+ 34%
332
770
+ 132%
60
100
+ 67%
2.1 M
2.9 M
+ 38%
-
150
BIG
2.1M
3.1M
+ 48%
Our dealer network productivity and
throughput will continue to grow
Dealer Throughput
2013
1,404
Top OEM
1,138
566
342
2009
519
186
220
295
375
376
354
2013
2014
2015
2016
2017
2018
CJDR Network
Fiat Network
Facility Capacity to Increase
• $1B Renovation/New
Construction since 2009
• Optimize Metro Representation
• Close Network Gaps
Industry Average
Strengthen the Backbone
•
Increase Loyalty
 Sales and Service Advocacy Focus
− $400M further required
•
Increase Dealer Staff
 Sales Consultants
 Service Advisors
 Technicians
NAFTA Region
798
765
695
662
660
+ 25%
+ 20%
+ 25%
We have initiatives in place to
improve margins in NAFTA
• Increase Brand Equity
-
Clearly Defined Brands
Minimize Showroom Overlap
Distinctive Marketing
Focused Fleet Strategy
• Strengthen Product Offerings
- World-Class Quality
- Increased Fuel Efficiency
- More Refinement
• Manage Cost Structure
-
Leverage Global Platforms
Higher Component Commonization
Efficiencies of Scale
Limit Powertrain Complexity
Optimize Industrial Footprint
NAFTA Region
Disclaimer
Certain information included in this presentation, including,
without limitation, any forecasts included herein, is forward
looking and is subject to important risks and uncertainties that
could cause actual results to differ materially. The Group’s
businesses include its automotive, automotive-related and other
sectors, and its outlook is predominantly based on what it
considers to be the key economic factors affecting these
businesses. Forward-looking statements with regard to the
Group's businesses involve a number of important factors that
are subject to change, including, but not limited to: the many
interrelated factors that affect consumer confidence and
worldwide demand for automotive and automotive-related
products and changes in consumer preferences that could
reduce relative demand for the Group’s products; governmental
programs; general economic conditions in each of the Group's
markets; legislation, particularly that relating to automotiverelated issues, the environment, trade and commerce and
infrastructure development; actions of competitors in the
various industries in which the Group competes; production
difficulties, including capacity and supply constraints, excess
inventory levels, and the impact of vehicle defects and/or
product recalls; labor relations; interest rates and currency
exchange rates; our ability to realize benefits and synergies from
our global alliance among the Group’s members; substantial
debt and limits on liquidity that may limit our ability to execute
NAFTA Region
the Group’s combined business plans; political and civil unrest;
earthquakes or other natural disasters and other risks and
uncertainties. Any of the assumptions underlying this
presentation or any of the circumstances or data mentioned in
this presentation may change. Any forward-looking statements
contained in this presentation speak only as of the date of this
presentation. We expressly disclaim a duty to provide updates to
any forward-looking statements. Fiat does not assume and
expressly disclaims any liability in connection with any
inaccuracies in any of these forward-looking statements or in
connection with any use by any third party of such forwardlooking statements. This presentation does not represent
investment advice or a recommendation for the purchase or
sale of financial products and/or of any kind of financial services.
Finally, this presentation does not represent an investment
solicitation in Italy, pursuant to Section 1, letter (t) of Legislative
Decree no. 58 of February 24, 1998, as amended, nor does it
represent a similar solicitation as contemplated by the laws in
any other country or state.
Copyright and other intellectual property rights in the
information contained in this presentation belong to Fiat S.p.A.
Fiat and FCA are trademarks owned by Fiat S.p.A. “Fiat Chrysler
Automobiles” (FCA) is the name expected to be used following
completion of the merger of Fiat S.p.A. into a recently formed
Dutch subsidiary.