FIAT Automobiles Serbia

Giovanni De FilippisFiat Automobiles Serbia CEO

Beograd, May 25th 2010

Kragujevac factory: THE PLAN Kragujevac factory: THE PLAN

todaytoday tomorrowtomorrow

WCM methodologyWCM methodology

SUPPLIER PARKSUPPLIER PARK

SUSTAINABILITYSUSTAINABILITY

Corporate responsibilityCorporate responsibilityEnvironmentEnvironmentCultural integration Cultural integration

AA PRODUCT for thePRODUCT for the world marketworld market

INTEGRATION within FIAT footprintINTEGRATION within FIAT footprint

Capacity:Capacity:Harbour definition: 235 days per year / 16 hours per dayHarbour definition: 235 days per year / 16 hours per dayTechnical: 280 days per year / 3 shift a dayTechnical: 280 days per year / 3 shift a day

HarbourHarbourDefinitionDefinition

TechnicalTechnicalHarbourHarbourDefinitionDefinition

TechnicalTechnical

CapacityCapacity

ProductionProduction

Utilization rate %Utilization rate %

39%39% 28%28%

161%161% 108%108%

200

100

4060

20

80

120140160180

WCM EVOLUTION in Kragujevac plantWCM EVOLUTION in Kragujevac plant

Program introduced in 2006Program introduced in 2006

All FIAT plants encompassedAll FIAT plants encompassed

Kragujevac Kragujevac target:target:

SILVER standardSILVER standardby 2012by 2012

in FGAin FGA

by the end of 2010 by the end of 2010

PEOPLE DEVELOPMENT PEOPLE DEVELOPMENT

From the 80From the 80’’s to PUNTOs to PUNTO……

From PUNTO to FUTUREFrom PUNTO to FUTURE……

GAP ANALYSIS GAP ANALYSIS EVALUATIONEVALUATION

FIAT TASK FORCEFIAT TASK FORCE

TRAINING PLANSTRAINING PLANS

NEW PEOPLENEW PEOPLE

NEW SKILLSNEW SKILLS

ACADEMY

ACADEMYACADEMY

Young people from vocational and Young people from vocational and techincal schoolstechincal schools

People from Fiat Automobili Serbia People from Fiat Automobili Serbia and local suppliersand local suppliers

University of University of KragujevacKragujevac

Secondary Secondary Technical SchoolsTechnical Schools

FASFAS

LocalLocalInstitutionsInstitutions

Italian Italian InstitutionsInstitutions

ACADEMYACADEMY

ENVIRONMENTENVIRONMENT

A LANDMARK PROJECT coordinated by MINISTRY of ENVIRONMENTA LANDMARK PROJECT coordinated by MINISTRY of ENVIRONMENT

DEVELOPMENT of ENVIRONMENTAL CULTUREDEVELOPMENT of ENVIRONMENTAL CULTURE

BUILDING a GREEN FACTORYBUILDING a GREEN FACTORY

REDUCING USE OF RESOURCESREDUCING USE OF RESOURCES

THE PARTNERSHIP MODELTHE PARTNERSHIP MODEL

General infrastructuresGeneral infrastructures

Bureaucracy reductionBureaucracy reduction

IncentivesIncentives

InvestmentsInvestments

TechnologyTechnology

Industrial cultureIndustrial culture

Local infrastructuresLocal infrastructures

Quick proceduresQuick procedures

Supplier park areaSupplier park area

FAS FAS –– Main factsMain facts

2008

2009

2010

Oct 14, Oct 14, ’’0808Sept 29, Sept 29, ‘‘0808

Jan 30, Jan 30, ’’0909 April, April, ’’0909 Dec, Dec, ’’0909PUNTO CLASSICPUNTO CLASSIC

Car of the year Car of the year 2009 in Serbia2009 in Serbia

Jan 18, Jan 18, ’’1010 Feb 1, Feb 1, ’’1010

JV investmentJV investmentagreementagreement

FoundationFoundationof FASof FAS

Punto License Punto License agreementagreement

Start of Punto Start of Punto Classic productionClassic production

ShareholdersShareholders’’ContributionContribution(100 (100 €€ mil)mil)

Start of distribution Start of distribution of all FIAT brands of all FIAT brands

in BALKANSin BALKANS

1000 Zastava 1000 Zastava employeesemployees

hiredhired

PLANT RESTRUCTURING: PLANT RESTRUCTURING: Building a world class experienceBuilding a world class experience

1,4 million m21,4 million m2 areaarea

51 buildings51 buildings

350.000 m2350.000 m2 covered surfacecovered surface

700 700 €€ mil investmentmil investment

2.400 employees2.400 employees

Dedicated Supplier ParkDedicated Supplier Park

Free Trade ZoneFree Trade Zone

KRAGUJEVAC KRAGUJEVAC -- General road planGeneral road plan

44 Public road toPublic road to

KORMAN KORMAN POLJEPOLJE

FASFAS

Korman PoljeKorman Polje

HIGHWAY to HIGHWAY to ‘‘CORRIDOR XCORRIDOR X’’

PUBLIC ROAD to HIGHWAYPUBLIC ROAD to HIGHWAY

PUBLIC ROAD to South RINGPUBLIC ROAD to South RING

South RING + TUNNELSouth RING + TUNNEL

FASFAS

Korman PoljeKorman Polje

7 km7 km

KORMAN POLJE KORMAN POLJE –– Dedicated Supplier ParkDedicated Supplier Park

67 ha green field67 ha green field

Urbanization & utilitiesUrbanization & utilities

General infrastructuresGeneral infrastructures

Free Trade ZoneFree Trade Zone

OPPORTUNITIES FOR FAS SUPPLIERSOPPORTUNITIES FOR FAS SUPPLIERS

5000 € for each employee

CORPORATE TAX HOLIDAY (10 years)

TAX SALARY EXEMPTION (according to the law)

FREE TRADE ZONE

ADDITIONAL LAND for further expansion

INCENTIVE PACKAGE INCENTIVE PACKAGE to FAS suppliers to FAS suppliers

located in Korman Poljelocated in Korman Polje

POSSIBLE SERVICES POSSIBLE SERVICES to be provided by FASto be provided by FAS

CUSTOM OPERATIONS

INFORMATION TECHNOLOGY

TRAINING

PAYROLL