Pernambuco Project in Brazil



Pernambuco Project in Brazil
Pernambuco Project in Brazil
Stefan Ketter
Betim Plant
Sao Paulo
LATAM Region
Over 13 million vehicles produced
1 car every 20 seconds
6 body-in-white lines, 4 assembly lines
50,000 parts
18,000 people
We Need a Jeep Plant
• Requires additional 250k annual capacity
Sao Paulo
LATAM Region
• Flexibility for multiple models
The Opportunity
LATAM Region
• 2% higher GDP growth than Brazil average
• Major global companies already present
Suape Port
• Suape is the most modern port in Brazil
• Home of Brazil’s Silicon Valley
Sao Paulo
In 2010, Automotive Regime (1997) extended
and revised for a period up to 2020
(valid for existing local automotive producers)
LATAM Region
The Deal
Our Commitment (minimum)
• 4B R$ (1.3B €) investment
• 200k vehicles/year production
• 4,500 direct FCA employees
• 70% localization*
• Localized R&D in the region at 2%
of revenue
*parts and equipment localized in Brazil
LATAM Region
Our Benefits
Government Development Support
>12 million square meters of land donation
and partial site preparation
Direct and indirect infrastructure - utilities,
roads, and port
Subsidized financing from national
development banks for 80% of investment
Various tax incentives
including income tax reduction of 50%
(valid for local manufacturing in NE region)
The Industrial Plan
 FCA’s largest single industrial project ever
 FCA’s most advanced and efficient WCM plant
 Production capacity of >250 k vehicles annually
 On-site supplier park
 Space protected to expand capacity
 Development of 2nd supplier park
 Create local R&D activities
LATAM Region
Plant Principles
Communication Center is central hub
for physical results and rapid decisions
• Developed from extensive
company-wide WCM knowledge
• >15,000 best practices leveraged
• Focus on quality and logistics flow
• “Team Leader” centered
• Layout guarantees space
protection for capacity expansion
when required
LATAM Region
Communication Center
Simulation Room
Metrology Lab
LATAM Region
Derived from proven and standardized FCA technologies
Assembly Shop
Press Shop
Paint Shop
Body In White
LATAM Region
MAIN PLANT EMPLOYEES: >1,000 at SOP / >3,000 by 2016
(up to 1,000 per year)
• Customized automotive
• Knowledge transfer
LATAM Region
• Basic technical development
• Over 500 local employees
• Operation training
• Team Leader practice
Integrated Supplier Park
• Supplier park provides 40% of total 80% localization in Brazil
• Strategic components with high degree of vertical integration
• Buildings logistically oriented to align with assembly building
LATAM Region
• Multiple models industrialized, beginning with Jeep Renegade
• Based on FCA standard architecture (small-wide)
LATAM Region
Brazilians Already Building Renegades in Italy
• 100 future employees
currently training in Melfi,
• Developing proficiency to
deploy a duplicate process
for launch in Pernambuco
• Benefit from implemented
process improvements
LATAM Region
On Time
Q2 2014
Q3 2014
Start of Production: Q1 2015
LATAM Region
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
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.