The Journey to achieving a new production facility in China.

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1 The Journey to achieving a new production facility in China.

2 2

3 Structure of GETRAG GETRAG GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG GETRAG International GmbH GETRAG s.r.o. GETRAG S.p.A. GETRAG Americas GmbH GETRAG Transmissions Corporation GETRAG Transmission Manufacturing de México S. A. de C. V. GETRAG FORD Transmissions GETRAG FORD Transmissions GmbH GETRAG FORD Transmissions Sweden A.B. GETRAG FORD Transmissions Slovakia s.r.o. GETRAG Transmissions India Private Ltd. GETRAG Asia Pacific GETRAG Asia Pacific Transmission Technology (Shanghai) Co. Ltd. GETRAG (Jiangxi) Transmission Co. Ltd. Dongfeng GETRAG Transmission Co., Ltd. 3

4 GETRAG Manufacturing Purchasing PD Finance /IT Sales HR QEHS Corporate Affairs GFT GAP 4

5 Product Portfolio: ManualShift PowerShift HybridDrive ExtendedDrive 5

6 GETRAG in figures 24 locations worldwide in Europe, North America and Asia 14 individual companies Key facts 2012 Employees 12,824 Global production 3.5 m transmissions Sales 3.0 bn EUR* *consolidated (01/2011) ** current figures after sale of the axle business 6

7 7

8 Go East to win the West The decision to Go east was driven by a desire to participate from an early stage in the expected automotive growth in China and become a significant independent transmission supplier in Asia. A WHOFE (Wholly owned foreign enterprise) Or buy into a JV. Learn from a different culture using experience in China to potentially challenge our western norms. Go east to win the west. 8

9 The Decision JV due to : existing business, hit the road running, management team. Jiangling Gear Works was identified with three existing plants. An existing business of approx 200k trans/year, a management team and a customer profile that included virtually all local Chinese OEMs. The joint venture went live in 2007 as a 70/30 GETRAG/Jiangling enterprise named GETRAG Jiangxi Transmissions, GJT. And the work to building new plants and what we have today started. 9

10 Company introduction GETRAG(Jiangxi) Transmission Co., Ltd. is the joint venture of GETRAG and JMCG. 66,6% 33,3% GETRAG JMCG GETRAG (Jiangxi) Transmission Co. Ltd Yudu Plant Nanchang Plant Ganzhou Plant 10

11 GJT Plant Locations 11

12 13

13 Management of GJT (2007) western Chinese western western Chinese Chinese Chinese 14

14 GJT Opening

15 Nanchang

16 Yudu

17 Ganzhou

18 Lowest Cost Best Quality Shortest Lead time Quality Material flow Quality Value Stream process Mapping system (QPS) (VSM) Error Proofing Lean Layout (EP) Quick Change QOS (Quality Over (QCO) Operating Pull-System System) Continuous Visual Factory Visual Factory Improvement Operational Stability Cultural Awareness Standardisation Total Productive Maintenance (TPM) Process Confirmation Workplace organisation & Visualisation (5S) Policy Deployment, GPS & Global Manufacturing Dashboard GPS Manufacturing Objectives EVP level Manufacturing Objectives Plant level Manufacturing & Plant level Dashboard 19

19 Launch strategy 投 产 策 略 Equipments strategy Local equipments 24.5% Asian equipments 36.5% European equipments 39.0% Cost + 1. Simple operation 2. Part quality important Advantage 1. Low price 2. Good service 3. Short deliver time 4. Cheap spare parts 1. Mid level efficiency 2. Part quality critical 1. Good value ratio 2. Good service 3. Cheaper spare parts than European s 4. Need open bidding process 5. Need custom tax 1. High efficiency 2. Part quality critical 3. Unique European equipment 1. High price 2. Not fast service 3. Long deliver time 4. High price spare parts 5. Need open bidding process 6. Need custom tax 20

20 Team Board in NCP Demonstration: Team Activities Board : 21

21 Team Board in NCP Demonstration: Customers Focus: Work group foremen check the customers focus problems and finish tracking cards every shift. 22

22 CNC National Skills competition 23

23 24

24 1Complete Start Floor Official st steel fundamental beam concreting work column public raising begin lifting power construction installation, project finished 2008/12/ /1/ /2/ /2/ /5/ /9/8 25

25 0 Months 9 Months 26

26 2009/9/16 official move 27

27 28

28 Management of GJT (2013) Board of Directors Management Board CEO & President western Executive VP / PD Chinese VP Manufacturing Chinese VP Sales & Business Dev. Chinese VP Finance & CFO Chinese VP Purchase Chinese Labor Union Chinese Central Quality Nanchang Man Plant Nanchang DCT Plant Ganzhou Plant Yudu Plant Central ME Central MPL Quality Manager Launch Manager 1 x launch engineer Process Manager Layout Productivity 29

29 New Headquarters Warehouse Phase 1 Power supply and waste disposal area Phase 2 Canteen RDC Headquarter building 30

30 Nanchang Plant Key figures 2012 Main Products RWD transmissions Sales Volume 407,640 transmissions Employees 1,072 Total Land Area 254,000 m² Product capacity 600,000 transmissions 31

31 DCT Plant Nanchang Key figures 2012 Main Products Dual clutch transmissions Employees 157 Total Land Area 133,000 m² Capacity 65,000 transmissions 32

32 Ganzhou Plant Key figures 2012 Main Products FWD / RWD transmissions Sales Volume 392,388 transmissions Employees 1,193 Total Land Area 293,000 m² Product capacity 840,000 transmissions 33

33 Yudu Plant Key figures 2012 Main Products Components Sales Volume 4,925,000 sets of components Employees 795 Total Land Area 160,000 m² Product capacity 11,000,000 sets of components 34

34 36

35 Summary Be prepared to be surprised Speed Enthusiasm Willingness to learn Need to teach Need to listen, European processes, machines and methods but modified If you have a clear vision, spend time communicating it, you can make an incredible amount happen in a relatively short period of time 37

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