national black presentation

Treadwell Singfield

Pallavi Singh

Oladotun Awosemo

Jason Beaton

"This combination represents exceptional value to our shareholders.

The new company will be in an improved position to serve its

customers' needs on a global basis."

— Sergio Marchionne

Making Money While

Doing Good

OUR JOURNEY

Goals

Situational Analysis

Financial Analysis

Segmentation

Targeting/Positioning

Recommendations

Implementation

Timeline

GOALS – PILLARS OF SUCCESS!

Innovation

Community Impact

Profitability

GOALS – WHAT GETS MEASURED GETS DONE!

• Innovation: Develop product for luxury market (US).

• Impact: Reduce annual deaths per year among drivers in US.

Short Term (2018)

• Innovation: Create scale to bring production of AC to mass market, and develop marketing strategy focused on the African American community.

• Impact: Significantly reduce annual deaths per year among drivers in US, China, & Brazil.

Medium Term

(2020)

• Innovation: Bring technologies to the transportation industry.

• Impact: Significantly reduce annual deaths per year in India.

• Profitability: $12B adjusted EBIT for 4 cars in 3 regions

Long Term (2025)

SITUATION

“44% of U.S. drivers will consider buying a fully autonomous vehicle within the next 10years, and 20% would be willing to pay an extra $5,000+ for the advanced technologyrequired to operate such a vehicle.” –BCG

COMPETITORSMaturity of Product

Autonomous

Non-Autonomous

Semi-AutonomousMass Market Premium

Clutter industry & no one has reached full autonomy

Strengths

- Brand portfolios targeting unique segments

- Partnership model

- Experienced engineering team

- Global reach and production ability

- Increased earnings per share (last 3 years)

Weaknesses

- EBIT down 12% after 5 years

- Lower liquidity compared to other larger OEMs

- Profits in NAFTA dependent on trucks and larger utility

vehicles

- Credit rating below investment grade

Opportunities

- Portfolio extension into white space

opportunities

- Web services & autonomous vehicles

- Potential to guide infrastructure

- Increase in access to affordable financing

Threats

- Uncertainties in China

- Lack of developed infrastructure in developing world

- Currency fluctuations and volatile interest rates

- Volatile interest rates in Brazil

- Strict import restrictions in global environments

COMPANY (CORE COMPETENCIES)

Volume (Scalability)

Partnerships

Marketing (Advertising)

Product Development

RECOMMENDATIONS

Segmentation

Implementation

US: Launch a catalog of vehicles that

capture sales from mass market and

premium segments

China & Brazil: Utilize new production

facility and growing strength of Jeep

brand

India: Establish early presence in India

through ride-sharing and public

transportation


Target younger, mass market consumer

Mass market will capture significant

portion of African American community

Target premium consumer

Target US, China, and Brazil regions

Establish early B2B presence in India

B2B vs. B2C

Younger vs. older

Premium vs. mass market

Regions of high impact

AVAILABLE CONSUMER SEGMENTS UTILIZING VEHICLES

ALL CONSUMERS

B2B

Affordability

B2C Age

Region

Transportation

Services

Delivery Services

Premium vs. Mass Market

Older vs. Younger

LATAM, APAC, NAFTA, EMEA

ROAD TRAFFIC DEATHS BY TYPE AND REGION

CHOOSING NOT TO ENTER EUROPE OR THE WESTERN PACIFIC

• Healthy growth %, but limited sales in Western Pacific

• Majority of market in Italy and European market is overcapacity.

DEATHS PER YEAR BY VEHICLE TYPE

By vehicle type

Road Traffic FatalitiesAmount of Deaths per

year Cars Motorcycles Transport

INDIA 207,551 193,071 80,994 70,567 41,510

NIGERIA 35,641 N/A N/A N/A N/A

CHINA 261,367 198,638 117,615 70,569 10,454

INDONESIA 38,279 37,915 10,355 13,780 13,780

BRAZIL 46,935 34,731 20,182 13,141 1,408

USA 34,064 33,041 26,910 5,109 1,022

RECOMMENDATIONS

Segmentation

Implementation



premium segments



brand



transportation








B2B vs. B2C

Younger vs. older

Premium vs. mass market

Regions of high impact

FACTORING IN AGE AND GENDER

FACTORING IN AGE GROUP

By vehicle type Deaths by Age Group

Road Traffic Fatalities

Amount of Deaths per

year CarsMotorcycle

s Transport 15-29 30-45 46-59

Scalable market to attack

Plus Transport

Market

INDIA207,551 193,071 80,994 70,567 41,510 13,499 13,499 13,499 40,497 82,007

NIGERIA35,641 N/A N/A N/A N/A N/A N/A N/A

CHINA261,367 198,638 117,615 70,569 10,454 19,602 19,602 19,602 58,807 58,807

INDONSIA38,279 37,915 10,355 13,780 13,780 1,726 1,726 1,726 5,178 5,178

BRAZIL46,935 34,731 20,182 13,141 1,408 3,363 3,363 3,363 10,091 10,091

USA34,064 33,041 26,910 5,109 1,022 4,485 4,485 4,485 13,455 13,455

497,396 128,028 169,538

CHINA, BRAZIL, INDIA & THE UNITED STATES COULD EXPERIENCE THE LARGEST IMPACT

Number of Deaths*

Registered vehicles

Road Safety Funding Level

Percent of deaths by passenger

vehicle

1 China

261,367

250+ Million

Partially Funded

19%

2India

207,551†

159+ Million

Partially Funded

17%

3Brazil

46,935

81+ Million

Fully Funded

23%

4Indonesia

38,279†

104+ Million

Fully Funded

5%

5Nigeria

35,641†

5.7+ Million

Partially Funded

Not Available

6United States

34,064

265+ Million

Fully Funded

65%

RECOMMENDATIONS

Segmentation

Younger

Premium & mass market

B2C then B2B

Implementation



premium segments



brand



transportation








LOCALIZING OUR EFFORTS

BRAZIL CHINA UNITED STATES

• Strong, increasing demand for

Jeep Cherokee

• New production facility in

Pernambuco reduces cost and

price

• #1 Auto OEM in region

• Strong demand for Jeep

Cherokee

• New production facility in

Changsha plant reduces cost

and price

• Strong, increasing demand for

Jeep Cherokee

• Dodge dart/Avenger discontinued

• Large distribution network

• Autonomous industry already very

competitive

• #4 Auto OEM in region

PHASE 1

Phase 1 (Completion: 2018) Phase 2 (Completion: 2020) Phase 3 (Completion 2025)

Strategy • Launch autonomous Alfa Romeo

Giulia Quadrifoglio

• Launch autonomous Dodge Charger

• Launch semi-autonomous Jeep

Cherokee

• Enter multiple joint ventures with

transportation and transit authority in

India

• Acquire small ride sharing company

for soft launch in India by 2025

Target Market B2C: Premium B2C: Younger, Mass Market, African

American

B2B: Transportation & Transit Services

Main Positions • United States

• China (contingent upon capacity)

• United States

• China

• Brazil

• India soft launch

• Option to scale into more developed

areas (e.g. Japan, US, Italy, England)

PHASE 1 – LAUNCH AUTONOMOUS ALFA ROMEO QUADRIFOGLIO BY 2018

2018 2020 2025 Average Growth Rate

(2018-2015)

Units Sold 100,000 116,265 333,748 33.4%

Price per unit $72,500 $75,429 $83,280 2.1%

Revenues ($Mn) $7,250 $8,770 $27,794 40.5%

Cost ($Mn) $5,836 $6,355 $22,194 40%

Total Profit ($Mn) $1,414 $2,415 $5,600 42.3%

Offerings Strategy Risk Factors

• United States • Compete with Tesla at

high-end mass and

premium markets

• Rebrand Alfa Romeo

as tech-enabled vehicle

• Could face difficulties

branding in the

United States

• Potentially

cannibalize future

autonomous Maserati

sales

PHASE 2



Giulia Quadrifoglio



Cherokee



India




American




• United States

• China

• Brazil




PHASE 2 – LAUNCH AUTONOMOUS DODGE CHARGER

Offerings Strategy Risk Factors Other Considerations

• United States • Establish name in

semi-autonomous

mass market

• Become leader in

autonomous sedan

segment

• Offer affordable

autonomous solutions

• May cater more

towards younger

males than

younger females

Average Income for

African American

household ~ 35,000

2020 2025 Average Growth Rate

(2020-2015)

Units Sold 88,751 113,272 5.5%

Price per unit $30,346 $33,504 2.1%

Revenues ($Mn) $2,693 $3,795 8.2%

Cost ($Mn) $2,197 $3,058 7.8%

Total Profit ($Mn) $496 $737 9.7%

PHASE 2 – LAUNCH AUTONOMOUS JEEP CHEROKEE

Offerings Strategy Risk Factors

• United States

• China

• Brazil

• Capitalize off surge in

Jeep brand

• Leverage new facilities

in China and Brazil to

bypass import laws

• Unexpected increases

in demand could

negatively impact

operations

• Rapid growth may

result in

oversaturation

2020 2025 Average Growth Rate

(2020-2015)

Units Sold 592,003 1,747,053 39%

Price per unit $135,122 $184,423 7.3%

Revenues ($Mn) $23,203 $87,144 55.1%

Cost ($Mn) $17,260 $63,560 53.7%

Total Profit ($Mn) $5,943 $23,583 59.4%

PHASE-FOCUSED APPROACH



Giulia Quadrifoglio



Cherokee



India




American




• United States

• China

• Brazil




PHASE 3 – LAUNCH TRANSPORT MARKET IN INDIA

Offerings Strategy Risk Factors Other

Considerations

• India • Partner with Indian

government to solve

death in transportation

problem. Implementation

by 2025.

• Solution for low income

African American

population

• Lack of infrastructure in

India

• Scale up project

due to large

population

• Planning process

begins in 2018

with Indian

government

support

2025 2030 Total (5 YRS)

Units Sold 12,816 16,902

Price $48,661 $65,119

Revenues $623,627,033.79 $1,100,677,338.84

Cost $515,352,848.35 $679,689,320.60

Total Profit $108,274,185.45 $420,988,018.24 $1,492,018,053.38

FINANCING

•Cash

• Equity

•Debt

Country Total Cost ($)

USA 12, 347, 765, 143

China 2, 888, 652, 358

Brazil 2, 894, 653, 251

India 220, 832, 790

All 18, 351, 903, 542

Total cost of production in all four regions is ~18.4 Billion dollars

COST OF PRODUCTION

• Amount of cash available at the end of 2015 is ~ $23B

• Net Industrial cash available in 2018 ~ $5.5B

CASH

EQUITY

• ~ $18B of equity at the end of 2015

• ~ $99B of liabilities at the end of 2015

• There is no information about outstanding shares available, so,

the value of capital that can be raised can not be determined

DEBT

• ~ $31B of debt at the end of 2015 with equity of ~ $18B

• Do not raise capital through debt• Credit rating is BB-, below investment grade

• Costs of capital may be too high

ROADMAP AND TIMELINE

20252014 2017 2018 2019 2020 2021 2022 2023 2024 2025

Launch autonomous Alfa

Romeo Quadrifoglio in US

2018

Partner with local

government in India to

launch transportation &

delivery support

2025Launch autonomous Dodge Charger in US

Launch autonomous Jeep Cherokee in US,

China, & Brazil

2020

Exploration of Partnership Opportunities

Marketing and Advertising / Scaling production

Start planning process with Indian government to co-ordinate a fleet of autonomous transport cars

Monitoring and Process Improvement

EBIT ~ $12B

THANK YOU!QUESTIONS?!?

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