NAFTA Region. Sergio Marchionne

Transcription

1 Sergio Marchionne

2 Our plan leverages the resources of a global company Industrial Infrastructure Architecture Sharing Powertrains Purchasing Synergies Technology Sharing

3 We have 12 assembly, 8 stamping/support and 16 powertrain/component manufacturing facilities ACTIVE WORKFORCE 000s Manufacturing Engineering Other Industrial Commercial/Corporate Labor Contract Expiration Dates UAW - September 2015 Unifor - September 2016 CTM - May 2016 Grand Rapids 1 Lansing Michigan 4 D 3 O F 5 B C Detroit L Q I W J 7 X K 8 2 A E M R P N H Windsor London G S T U V Toronto Southern Ontario STAMPING / SUPPORT Auto Die Tool & Die, Grand Rapids, MI 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) A B C D E F G H I J K ASSEMBLY Belvidere, Belvidere IL 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 POWERTRAIN / COMPONENT L M N O P Q R S T U V W X 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

4 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 Toledo North Saltillo Van Belvidere ~$1.1B Invested New Flexible Body Shop New Paint Shop New Onsite Logistics Center ~$700M Invested Body Shop Expansion Retool General Assembly ~$600M Invested All New Greenfield Plant ~$550M Invested New Flexible Body Shop 200 Cherokee Promaster Dart Added Shifts & Increased Capacity in 6 Assembly Plants Jefferson North, Sterling Heights, Belvidere, Warren Truck, Toledo North, Saltillo Van State-of-the-Art Body Shops Allows production of multiple nameplates from the same architecture

5 We have invested in our manufacturing infrastructure to improve quality and optimize capacity Kokomo Transmission ~ $3.8B invested in NAFTA powertrain plants over the last 5 years Trenton Engine Mack Engine Tipton Transmission ~$750M Invested All New Flexible Machining >1M Units Produced Annually ~$700M Invested All New Flexible Machining ~$300M Invested All New Flexible Machining Revitalization Of A Plant Scheduled For Shut Down ~$150M Invested All New Plant And Flexible Assembly System 8-speed ATX 6-speed ATX Pentastar V6 Tigershark I4 Pentastar V6 9-speed ATX Added Shifts & Increased Capacity in 11 Powertrain Plants Kokomo (2), Trenton, Mack, Tipton, Dundee, Saltillo (2), Toledo, Indiana, Etobicoke

6 We are optimizing our NAFTA manufacturing footprint Harbour FCA NAFTA Assembly Plant Asset Utilization Actual, Business Plan Forecast 100% 43% 109% Volume Capacity Flexibility * A C T U A L P L A N * Decline in utilization due to model conversion

7 Growth in NAFTA will be supplemented by production from other regions vehicle sales (000s) IMPORT Produced in other regions and sold in NAFTA LOCALIZED Produced and sold in NAFTA EXPORT Produced in NAFTA and sold in other regions , ,

8 We have made significant enhancements to our product portfolio th Anniversary Commemorative product actions across all nameplates 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

9 Each of our brands is uniquely positioned in the market

10 NAFTA: Historical industry trend ( ) (Millions) 18,1 19,6 20,3 20,0 19,9 19,6 20,0 20,2 19,9 19,3 16,2 12,9 14,2 15,6 17,5 18,7 16,0 17,4 17,8 17,5 17,1 17,0 17,3 17,4 17,1 16,5 10 Year NAFTA Average Industry: 19.7M ( ) 13,5 10,6 11,8 13,0 14,8 15,

11 NAFTA: Business Plan November 4, 2009 What We Said NAFTA TOTAL SALES ~2.1M ~1.2M Nov. 4 th Plan Nov. 4 th Plan

12 NAFTA: Business Plan November 4, 2009 What We Did +82% 968K units NAFTA TOTAL SALES ~2.1M 2.148M ~1.2M 1.180M Nov. 4 th Plan Actual Nov. 4 th Plan Actual

13 NAFTA: All brands have contributed to our growth ( ) Total NAFTA Sales (000s) BRAND % Increase % % % % 3 60 BIG 1,180 2, %

14 NAFTA: Total sales & share league standings ( ) RANK TEAM NAFTA TOTAL VOLUME GROWTH K +0.2 ppts. 755 K K (2.5) ppts. 423 K 367 K 320 K NAFTA TOTAL SHARE GROWTH K +2.3 ppts. (2.0) ppts K +0.7 ppts. (1.0) ppts ppts ppts K +0.6 ppts K +0.6 ppts. delivered the HIGHEST TOTAL SALES GROWTH and the HIGHEST TOTAL SHARE GROWTH Source: SIR in NAFTA since 2009!

15 Digging a little deeper: U.S. Market U.S. retail share gain/loss 3,3 U.S. Retail Share Gain/Loss (2010CY CY) 0,5 0,4 0,3-0,2-0,4-0,4-0,5-1,3-1,4 is the FASTEST GROWING OEM at retail share since 2010

16 NAFTA: Total market share by region ( ) 20% 10% 0% 8,1% ' '10 Q2 '10 Q3 '10 '10 Total Share '11 Q2 '11 Q3 '11 '11 '12 Q2 '12 Q3 '12 '12 '13 Q2 '13 12,5% Q3 '13 '13 ' 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 20% 10% 0% 11,6% ' '10 Q2 '10 Q3 '10 '10 Total Share '11 Q2 '11 Q3 '11 '11 '12 Q2 '12 Q3 '12 '12 '13 Q2 '13 16,7% Q3 '13 '13 ' Grew Total Share by 5.1 ppts. Fastest growing OEM in Canada #1 Selling OEM 2014 CYTD 52 Consecutive months of YoY Sales growth 10% 0% 11,4% ' '10 Q2 '10 Q3 '10 '10 Total Share '11 Q2 '11 Q3 '11 '11 '12 Q2 '12 Q3 '12 '12 '13 Q2 '13 Q3 '13 7,2% '13 ' Total Share down 4.2 ppts. Removed low margin purchased products Profitable replacement products in plan Relationship with Hyundai ended

17 We will continue to manage our Fleet business in a manner to maintain brand equity U.S. Total Sales Mix Fleet Business Plan Objectives - 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% 72% 74% 78% COMMERCIAL 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 DAILY RENTAL

18 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

19 NAFTA growth driven by many factors Strong Unique Brands World-Class Products Broad Market Coverage High Capacity Utilization Robust Dealer Network

20 NAFTA industry outlook is favorable + Moderate economic growth + Positive job outlook + Efficient credit markets + Age of car parc at historic high + Growing consumer confidence - Increasingly competitive marketplace - Regulatory compliance costs - Tight capacity in supply base

21 We are forecasting NAFTA SAAR to remain stable over the plan period SAAR - FCA Forecast Millions of Units 1,0 1,1 1,2 1,6 1,6 1,6 1,2 1.6 Actual 1,1 1, ,7 0,8 1,5 0,8 1,6 0,9 1,6 1,0 1,7 1,1 1.7 Plan 1,2 1,2 1,3 1,3 1,3 1,7 1,7 1,7 1,7 1,7 17,0 17,3 17,4 17,1 16,5 13,5 10,6 11, ,8 15,9 16,3 16,6 16,9 17,0 17,0 Total NAFTA

22 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 2.9M 3.1M 2.1M Cumulative Sales >13 Million Vehicles in NAFTA Actual

23 Jeep, Ram and Chrysler brands are key drivers of NAFTA volume growth Total NAFTA Sales (000s) BRAND % Change % % % % % SUBTOTAL 2.1 M 2.9 M + 38% BIG 2.1M 3.1M + 48%

24 Our dealer network productivity and throughput will continue to grow 2013 Dealer Throughput Top OEM 1,404 1, Facility Capacity to Increase $1B Renovation/New Construction since 2009 $400M further required Optimize Metro Representation Close Network Gaps CJDR Network Fiat Network Industry Average Strengthen the Backbone Increase Loyalty Sales and Service Advocacy Focus Increase Dealer Staff Sales Consultants + 25% Service Advisors + 20% Technicians + 25% 519

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

26 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 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.