Pernambuco Project in Brazil. Stefan Ketter

Transcription

1 Pernambuco Project in Brazil Stefan Ketter

2 Betim Plant Betim Sao Paulo Rio Over 13 million vehicles produced 1 car every 20 seconds 6 body-in-white lines, 4 assembly lines 50,000 parts 18,000 people

3 We Need a Jeep Plant Betim Sao Paulo Rio Requires additional 250k annual capacity Flexibility for multiple models

4 The Opportunity

5 Pernambuco Pernambuco Suape Port 2% higher GDP growth than Brazil average Major global companies already present Suape is the most modern port in Brazil Home of Brazil s Silicon Valley Betim Sao Paulo Rio In 2010, Automotive Regime (1997) extended and revised for a period up to 2020 (valid for existing local automotive producers)

6 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 Our Benefits Government Development Support >12 million square meters of land donation and partial site preparation Direct and indirect infrastructure - utilities, roads, and port Economics 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)

7 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 2 nd supplier park Create local R&D activities

8 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 organization Layout guarantees space protection for capacity expansion when required

9 Communication Center Simulation Room Metrology Lab

10 Technology Derived from proven and standardized FCA technologies Assembly Shop Press Shop Paint Shop Body In White

11 People MAIN PLANT EMPLOYEES: >1,000 at SOP / >3,000 by 2016 LOCAL TECHNICAL SCHOOLS Basic technical development (up to 1,000 per year) Customized automotive program BETIM PLANT ON THE JOB BENCHMARK PLANTS Knowledge transfer Over 500 local employees SIMULATION CENTER Operation training Team Leader practice

12 Integrated Supplier Park 16 suppliers 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 17 Product lines 4,000 employees

13 Products Q Multiple models industrialized, beginning with Jeep Renegade Based on FCA standard architecture (small-wide)

14 Brazilians Already Building Renegades in Italy 100 future employees currently training in Melfi, Italy Developing proficiency to deploy a duplicate process for launch in Pernambuco Benefit from implemented process improvements

15 On Time Plant Q Supplier Park Q Start of Production: Q

16 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.