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NAFTA Region
Our plan leverages the resources of a global company
Architecture Sharing
Powertrains
Technology Sharing
Purchasing Synergies
Industrial Infrastructure
NAFTA Region
We have 12 assembly, 8 stamping/support and 16 powertrain/component manufacturing facilities
W I 7
X J
K 8
Michigan
Grand Rapids
Lansing
Detroit L
O
Q
B C
5 D
F
4 3
1
R A 2 E
N M P
Southern Ontario
Windsor
Toronto
London
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H
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S 6
V
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000s
Labor Contract Expiration Dates UAW - September 2015 Unifor - September 2016 CTM - May 2016
Manufacturing
Engineering
Other Industrial
Commercial/Corporate
2009
33.1
3.2
2.8
6.9
46.0
2013
51.8
4.7
4.9
9.7
71.1
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
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2
3
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8
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 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
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D
G
H
I
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K
AFFILIATE COMPANIES
Magneti Marelli - 6 locations (3 US, 3 Mexico)
Comau - 2 locations (US)
Teksid - 1 location (Mexico)
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ACTIVE WORKFORCE
NAFTA Region
• ~$1.1B Invested • New Flexible Body Shop • New Paint Shop • New Onsite Logistics Center
~ $4.2B invested in NAFTA assembly plants over the last 5 years
Added Shifts & Increased Capacity in 6 Assembly Plants
Jefferson North, Sterling Heights, Belvidere, Warren Truck, Toledo North, Saltillo Van
• ~$700M Invested • Body Shop Expansion • Retool General Assembly
• ~$550M Invested • New Flexible Body Shop
State-of-the-Art Body Shops
Allows production of multiple nameplates from the same architecture
• ~$600M Invested • All New Greenfield Plant
Sterling Heights Saltillo Van Belvidere Toledo North
We have invested in our manufacturing infrastructure to improve processes and increase capacity
200 Promaster Dart Cherokee
NAFTA Region
We have invested in our manufacturing infrastructure to improve quality and optimize capacity
• ~$750M Invested • All New Flexible Machining • >1M Units Produced Annually
Added Shifts & Increased Capacity in 11 Powertrain Plants
Kokomo (2), Trenton, Mack, Tipton, Dundee, Saltillo (2), Toledo, Indiana, Etobicoke
8-speed ATX 9-speed ATX Pentastar V6
• ~$300M Invested • All New Flexible Machining • Revitalization Of A Plant
Scheduled For Shut Down
• ~$700M Invested • All New Flexible Machining
• ~$150M Invested • All New Plant And Flexible
Assembly System
Pentastar V6 Tigershark I4 6-speed ATX
Tipton Transmission Kokomo Transmission Mack Engine Trenton Engine
~ $3.8B invested in NAFTA powertrain plants over the last 5 years
NAFTA Region
We are optimizing our NAFTA manufacturing footprint
Harbour FCA NAFTA Assembly Plant Asset Utilization 2009 – 2013 Actual, 2014-2018 Business Plan Forecast
A C T U A L P L A N
43%
109%
2009 2013 2014 2015 2016 2017 2018
Volume
Capacity
Flexibility
100%
*
* Decline in utilization due to model conversion
NAFTA Region
380
253
vehicle sales (000s)
IMPORT EXPORT
2013
2018
Produced in other regions and sold in NAFTA
Produced in NAFTA and sold in other regions
32
360
2,116
2,590
Growth in NAFTA will be supplemented by production from other regions
LOCALIZED Produced and sold in NAFTA
NAFTA Region
We have made significant enhancements to our product portfolio
2010 2011 2012
70th Anniversary Commemorative product actions across
all nameplates
2013
refresh
• 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
NAFTA Region
16,0 17,4 17,8 17,5 17,1 17,0 17,3 17,4 17,1 16,5
13,5
10,6 11,8
13,0 14,8
15,9
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
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
NAFTA: Historical industry trend (1998-2013)
10 Year NAFTA Average Industry: 19.7M (1998-2007)
(Millions)
NAFTA Region
~1.2M
~2.1M
2009 2013
NAFTA: 2009-2013 Business Plan November 4, 2009
What We Said…
NAFTA TOTAL SALES
Nov. 4th Plan Nov. 4th Plan
NAFTA Region
~1.2M 1.180M
~2.1M 2.148M
2009 2013
+82% 968K units
Nov. 4th Plan Nov. 4th Plan
NAFTA TOTAL SALES
Actual Actual
… What We Did
NAFTA: 2009-2013 Business Plan November 4, 2009
NAFTA Region
NAFTA: All brands have contributed to our growth (2009-2013)
BRAND 2009 2013 % Increase
445 736 +65%
277 557 +101%
258 463 +80%
197 332 +69%
3 60 BIG
1,180 2,148 +82%
Total NAFTA Sales (000s)
NAFTA Region
NAFTA: Total sales & share league standings (2009-2013)
delivered the
HIGHEST TOTAL SALES GROWTH
and the
HIGHEST TOTAL SHARE GROWTH
in NAFTA since 2009!
Source: SIR
3
6
8
7
RANK TEAM
5 465 K (2.5) ppts.
928 K 2 +0.2 ppts.
423 K
320 K
367 K
(2.0) ppts.
(1.0) ppts.
+0.4 ppts.
+0.9 ppts.
755 K
4 599 K +0.7 ppts.
NAFTA TOTAL VOLUME
GROWTH
NAFTA TOTAL SHARE
GROWTH
9 261 K +0.6 ppts.
10 222 K +0.6 ppts.
968 K 1 +2.3 ppts.
NAFTA Region
3,3
0,5 0,4 0,3
-0,2 -0,4 -0,4 -0,5
-1,3 -1,4
Digging a little deeper: U.S. Market U.S. retail share gain/loss
U.S. Retail Share Gain/Loss (2010CY - 2013CY)
is the FASTEST GROWING OEM at retail share since 2010
NAFTA Region
NAFTA: Total market share by region
8,1%
12,5%
0%
10%
20%
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Total Share
Q4 2009
Q1 2014
•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
11,6%
16,7%
0%
10%
20%
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Total Share
Q4 2009
Q1 2014
•Grew Total Share by 5.1 ppts. • Fastest growing OEM in Canada • #1 Selling OEM 2014 CYTD • 52 Consecutive months of YoY Sales growth
11,4%
7,2% 0%
10%
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Total Share
Q4 2009
Q1 2014
• Total Share down 4.2 ppts. •Removed low margin purchased products • Profitable replacement products in plan •Relationship with Hyundai ended
(Q4 2009 – Q1 2014)
NAFTA Region
- Significantly lowered Fleet mix
- Residual values have increased ~9 ppts. since 2009 vs. industry average increase of ~6 ppts.*
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
- Concentrate on most profitable Fleet business
- Improve vehicle mix within each Fleet channel
DAILY RENTAL
COMMERCIAL GOVERNMENT
PRIMARY FOCUS
Types of Fleet Business
* source: Automotive Lease Guide
64% 72% 74% 78%
36% 28% 26% 22%
2010 2011 2012 2013
Retail
Fleet
NAFTA Region
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
NAFTA Region
World-Class
Products
Strong Unique
Brands
Broad Market
Coverage
Robust Dealer
Network
High Capacity
Utilization
NAFTA growth driven by many factors
NAFTA Region
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
NAFTA Region
Actual Plan
We are forecasting NAFTA SAAR to remain stable over the plan period
17,0 17,3 17,4 17,1 16,5
13,5
10,6 11,8
13.1 14,8
15,9
-
16,3 16,6 16,9 17,0 17,0
1,6 1,6 1,6 1.6 1,7
1,7
1,5
1,6
1,6
1,7
1.7
-
1,7 1,7 1,7 1,7 1,7
1,0 1,1 1,2 1,2 1,1
1.0
0,8
0,8
0,9
1,0
1,1
-
1,2 1,2 1,3 1,3 1,3
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SAAR - FCA Forecast Millions of Units
19.6 20.0 20.2 19.9 19.3 16.2 12.9 14.2 15.6 17.5 18.7 19.2 19.5 19.9 20.0 20.0 Total
NAFTA
NAFTA Region
NAFTA sales increase through the plan period on the strength of new product offerings
WHAT WE PLAN TO DO …
2.1M
2.9M 3.1M
2013 2018
NAFTA TOTAL SALES
Actual
+~48% +~1M units
2014-2018 Cumulative Sales
>13 Million Vehicles in NAFTA
2018
NAFTA Region
Jeep, Ram and Chrysler brands are key drivers of NAFTA volume growth
BRAND 2013 2018 % Change
736 660 - 10%
557 800 + 44%
463 620 + 34%
332 770 + 132%
60 100 + 67%
SUBTOTAL 2.1 M 2.9 M + 38%
- 150 BIG
2.1M 3.1M + 48%
Total NAFTA Sales (000s)
NAFTA Region
Our dealer network productivity and throughput will continue to grow
Facility Capacity to Increase • $1B Renovation/New
Construction since 2009 − $400M further required
• Optimize Metro Representation • Close Network Gaps
Strengthen the Backbone
• Increase Loyalty Sales and Service Advocacy Focus
• Increase Dealer Staff Sales Consultants + 25% Service Advisors + 20% Technicians + 25%
342
566 660 662 695 765 798
186 220 295 375 376 354
2009 2013 2014 2015 2016 2017 2018
CJDR Network Fiat Network Industry Average
Top OEM 1,404 2013
519
1,138
Dealer Throughput
NAFTA Region
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
NAFTA Region
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 automotive-related 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 forward-looking 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.