Product Development Scott Kunselman Chrysler Group LLC 2010 14 Business Plan November 4, 2009
Product development priorities 1 Align organization to Fiat Group for maximization of communication 2 3 4 Align resources to support Chrysler s 5 year business plan Maximize use of common platforms, systems, and components through sharing with Fiat Group and expansion of Chrysler usage profile Maximize fuel economy by reducing vehicle weight and optimizing aerodynamics 5 Deliver technologies to meet demanding customer expectations in fuel economy, infotainment and connectivity 6 Enhance speed to market using Fiat Group timing benchmarks, virtual tools, and component commonization 7 Implement advanced powertrain systems across vehicle platforms Chrysler Group LLC 2010 14 Business Plan November 4, 2009 2
Reaching additional segments through platform sharing with Fiat Group 2010 2014 Platforms per Segment 0 8 A/B C/D 2 1 1 Highlights: Future car models (21)* New segments enabled by Fiat (2) Shared platforms with Fiat (3) Platforms consolidated (4) Development efficiency improves as resources focused on fewer, high volume platforms Platforms Models Segments 21 21* 11 7 4 6 2010 2014 3 E 3 Year Average models per platform Average volume per platform 2010 1.9 125,000 2014 3.0 305,000 Chrysler Platform F Truck Change 58% 144% *Count includes Chrysler engineered models excluding full size trucks Fiat Group Platform Chrysler Group LLC 2010 14 Business Plan November 4, 2009 3 3
Commonization will accelerate through sharing with Fiat Group ization Total vehicle cost Increased Model l/ Brand Shared parts with ihfiat differentiated 20 30% Group components Volumes per part Quality Powertrain 25 30% ER&D capacity Focus of common Modules / Systems 30 35% 35% Components 10 15% 15% Decreased Investment / Variable cost Time to market Product changes Development resources Chrysler Group LLC 2010 14 Business Plan November 4, 2009 4
Vehicle energy demand reduction requires weight savings and aerodynamic improvements Vehicle energy consumption Forces impacting energy consumption Performance Content Content Aerodynamic analysis and design Offsetting Chrysler actions Regulations Regulations Material optimization and weight reduction Old generation Performance Powertrain selection New generation Chrysler Group LLC 2010 14 Business Plan November 4, 2009 5
Vehicle energy demand reduction process: aerodynamic improvements Design actions based on aerodynamics 2009 Dodge Ram 1500 4x4 5.7L Crew Cab Pickup Optimize i cooling opening Body mounted fascia (li (eliminated i gap to bumper) Tapered C pillar design Integrated tailgate spoiler Cab to box seals Rigorous process to deliver best inclass aerodynamic performance On site world class wind tunnel is a strong enabler Recessed wipers Lowered & recessed front air dam Mirror shape & location Triple door seals / lowered sill Tightened wheelhouse openings 11% improvement in Ram aerodynamics delivered 5% increase in fuel economy Competitive comparison Vehicle Cd CdA Dodge Ram 1500 Crew Cab Short Box 0.414 15.2 GM Silverado Crew Cb Cab Short Box 0.435 15.3 Ford F 150 Supercrew Short Box 0.425 16.0 Result: best in class aerodynamics Chrysler Group LLC 2010 14 Business Plan November 4, 2009 6
Vehicle energy demand reduction process: weight reduction Use proprietary, automated computer technology to optimize structure Packaging gvolume Holistic forces: safety, refinement, durability Beam model Load paths Optimization Steel gauge and solution development Implement alternate materials to minimize gauge, eliminate parts, and reduce vehicle weight X X X Weight Reduction: 11 lbs (5.0 kg) 27.5% weight saved New design Advanced d HS steels combining parts Steel hood Weight Reduction: 15 lbs (6.8 kg) 45% weight saved Steel Weight Reduction: 8 lbs (3.6 kg) 36% weight saved Previous design All parts 50ksi High Strength Steel Ultra High Strength Steel Aluminum Magnesium Chrysler Group LLC 2010 14 Business Plan November 4, 2009 7
Optimizing systems across product plan by adding Fiat Group electrical architectures Current state Chrysler EE Architecture Plan 2010 2011 2012 2013 2014 C Segment????????? D Segment g?????? E Segment - Cars E-Segment - Minivans Trucks Existing EE Architecture (TIPM) New Powernet Electrical Architecture EE Architecture Solution TBD Powernet developed for E segment C/D Segment solutions not optimal Future state Future State Chrysler EE Architecture Plan 2010 2011 2012 2013 2014 A/B Segment CSegment D Segment E Segment - Cars E-Segment - Minivans Trucks Existing EE Architecture (TIPM) New Powernet Electrical Architecture Fiat Compact Electrical Architecture EE architectures are appropriately sized to vehicle segment allowing component and system sharing Segment ts A B C D E Truck Small Chrysler and Fiat Group electrical architectures CHRYSLER GROUP LLC Use Fiat Group EE architecture optimized for C/D vehicles Compact PowerNet Electrical architectural contents Use Chrysler Powernet EE architecture for E segment Chrysler Group LLC 2010 14 Business Plan November 4, 2009 8
Common electrical architecture enables customer access to advanced features Entertained Feature rich multimedia experience Connected & Synchronized Connected to people, places and things that matter most Secure Hands on the wheel, eyes on the road Environment Socially responsible, environmentally conscious Easy to Own Affordable, easy to use, intuitive Chrysler Group LLC 2010 14 Business Plan November 4, 2009 9
UConnect enables seamless integration of mobile devices and services Hands free call Address sync Voice command Nav Traffic POI s Geo fencing Sirius TV Music carry in Download Search email Social Calendar security Safety security Roadside Door lock / Unlock Locator Deals Files Tracking Geo fencing services Remote updates Remote diagnostic Personal settings FU TURE CURRENT Chrysler Group LLC 2010 14 Business Plan November 4, 2009 10
Shared vehicle architectures and components combined with virtual analysis tools to reduce program lead times From months SPV2 Program start Start of production development Technical validation Job 1 Market Launch Product concept Technical concept Sequential / Technical development Tooling Product/process validation Pre production Ramp up 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 To months Approve concept direction Feasibility briefing 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Improving speed to market time by incorporating Fiat Group/Chrysler best practices Timing improvements Product development phase starts later allows resources to be allocated to other programs Product development phase minimized through parallel vs. sequential activities Launch vehicles 5 months sooner. Through use of virtual tools and prototype vehicles, S0 build phase is eliminated Key timing enablers Enhanced use ofvirtual tools Disciplined design freeze Early supplier involvement Commonization of components Chrysler Group LLC 2010 14 Business Plan November 4, 2009 11
Execution of our product plan requires expanded use of virtual tools to enhance design efficiency Virtual tool strategy Expand use of virtual tools immediately to meet short term product needs Trust results of virtual analysis to eliminate redundant physical builds Maximize synergies with Fiat Group capability to achieve state of the art capability on new programs eliminate fully skinned prototypes Implement common world class approach with new C/D segment Impact simulation Cooling module sizing Warm up simulation Chrysler Group LLC 2010 14 Business Plan November 4, 2009 12
Virtual tools improve speed, reduce cost, and improve quality but require a resource shift Program timing CU URRENT STA ATE Manpow wer Program start Theme select V1 Some virtual analysis Physical prototype builds Late discovery / product changes Less efficient resource use STATE FUTURE Manp power More resources up Fewer resources Thorough virtual front after design freeze development Eliminate full skin prototypes Program start Theme select V1 Early discovery and design solutions More resources earlier / efficient resource redeployment Chrysler Group LLC 2010 14 Business Plan November 4, 2009 13
Development needs will be met by flexible resources and selective technical hiring Chrysler 2009 2010 Engineering Workforce On Roll Manpower +100% +100% Contract Purchased service +7% June 2009 Jul 2010E Note: ex powertrain engineering Chrysler Group LLC 2010 14 Business Plan November 4, 2009 14
Conclusion Chrysler product development Aligned to Fiat Group Ali d Fi G Enhanced resources Modern architectures Reduced complexity Reduced complexity Increased efficiency Expanded technology Faster to market Chrysler Group LLC 2010 14 Business Plan November 4, 2009 15