S C O T T G A R B E R D I N G

Transcription

1 S C O T T G A R B E R D I N G H E A D O F Q U A L I T Y, F C A C E N T E R F O R A U T O M O T I V E R E S E A R C H J U L Y 3 1, /7/2017 1

2 FCA Performance to Plan Globalizing Jeep Luxury & Premium Strategy Volume Growth Strengthening Balance Sheet Margin Expansion Localizing production in all regions Expanding product portfolio Expanding Maserati product range Reviving Alfa Romeo distinctive brand DNA Using existing EMEA region capacity Leveraging broad-based brand portfolio Platform and component sharing to achieve scale Strong cash generation Sizeable net cash position by end of plan NAFTA capacity realignment Leveraging Jeep and Fiat 500 family in EMEA region Pernambuco, Brazil - New products and tax incentives 8/7/2017 2

3 Financial Updates Q2 17 Summary Shipments (k units) 1,225 1, Net revenues ( B) Adjusted EBIT ( M) 1,867 1,628 1,138 1, % margin 5.8% margin Q2 '17 Q2 '16 Q2 '17 Q2 '16 Q2 '17 Q2 '16 JV shipments up 50% primarily due to localized Jeep production in China Lower consolidated shipments primarily driven by NAFTA Adjusted net profit ( M) 1, Net revenues at constant exchange rate (CER), down 2%, in line with shipments Net industrial debt ( M) -4,226-5,112 Record margin, up 90 bps Y-o-y and q-o-q margin improvement in all segments Available liquidity ( B) Q2 '17 Q2 '16 Strong operating performance and reduced financial charges Net profit of 1,155M compared to 321M in Q2 16 Jun Mar Improvement mainly driven by cash flows from operations, net of capex Jun 30 '17 Mar 31 '17 Planned gross debt repayments of 1.4B Negative FX translation of 0.6B 8/7/2017 3

4 Quality Vision Our goal is to design and build safe, high-quality vehicles that owners will be proud to recommend to their friends and family. 8/7/2017 4

5 How do we measure Quality? Corporate Warranty 3rd Party Customer Surveys Expense per Unit Sold Warranty Spend 3 rd Party Perceived Quality Social Media Continuous Quality Insight Consumer Reports Initial Quality Study Vehicle Dependability Study Manufacturing 1 st Impression Things Gone Right Willing to Pay a Premium Performance Blogs Magazines Forums Advertisements And more.. Direct Run First Time Capability Ship-to-Build-Status 1 Month in Service (1MIS) Road Test Powertrain Fuel economy Customer Functional Objectives 8/7/2017 5

6 Corporate Results Conditions per 1000 Problems Per 100 Expense Per Unit Corporate Warranty Corporate Warranty within the first 90 days of ownership 16% IMPROVEMENT YTD 3rd Party Customer Surveys J.D. Power Initial Quality Study 10% IMPROVEMENT Expense per Unit Sold Expense per Unit Sold within the first 12 months of ownership 11% IMPROVEMENT /7/2017 6

7 Quality Objectives Proactive Preventive Reactive Design systems less prone to failure and meet customer needs Prevent flow of problems to customers Identify and solve problems faster Concept Development Launch / Plant Field Vehicle Development Timeline 8/7/2017 7

8 Chrysler Pacifica and Ram Initiatives

9 2017 Chrysler Pacifica New... Highest ranking Minivan in J.D. Power Initial Quality Study (IQS) and Automotive Performance Execution and Layout (APEAL) Study in its inaugural year First plug-in hybrid option for FCA More than 3.4 million real-world miles driven: This distance represents one of the highest pre-production mileage totals of any Chrysler brand vehicle ever Received 59 accolades in its first year of production 8/7/2017 9

10 Quality Objectives Proactive Preventive Reactive Design systems less prone to failure and meet customer needs Prevent flow of problems to customers Identify and solve problems faster Concept Development Launch / Plant Field Vehicle Development Timeline 8/7/

11 Chrysler Pacifica Development Voice of the Customer Interviewed more than 3,000 drivers on a number of customer-focused topics Surveyed more than 1,400 people on design, features and vehicle segment preferences Targeted 9 cities in key markets across the U.S. to speak with current customers and competitors customers Held more than 20 focus groups; several groups included participants children Customer feedback directly influenced many of the 37 segment-first innovations in the new Chrysler Pacifica Conducted extensive, inhome meetings 8/7/

12 Chrysler Pacifica Development Customer Benefit & Use Case Theater Provides 2nd row passenger with in vehicle entertainment and the ability to connect their personal video and audio content to the vehicles rear screens and speakers Functional Description I want my minivan to be an extension of my family room WiFi, DLNA, MirrorLink Two 10 seatback - capacitive touch screens HD Blue-ray DVD player HDMI 1x screen USB - 1 for 1st row - data & charging, 1 x rear screen - charging, and 1 for 3rd row - charging Bluetooth Touchpad Remote Headphones Customer Assessment: Minivan Consideration, Tested Price, Frequency of Use Financial Assessment (Estimates) Cost and Return on Investment Competitive Assessment Industry and Segment Availability Application Key Competitors in Segment 8/7/

13 Chrysler Pacifica Production Windsor Assembly Plant Windsor, Ontario Over 500 error-mistake proof controls implemented prior to PHEV launch Controls developed from cross functional team at Windsor Assembly Plant Pacifica PHEV Super Module Pacifica Underbody Visual work instructions created to guide operator through each critical step Pacifica Work Instructions Pacifica PHEV System 8/7/

14 2017 Ram Truck Since Ram Truck: J.D. Power Initial Quality score improved by nearly 25% Warren Truck Assembly Plant: J.D. Power Initial Quality improved 33% Customer satisfaction within the first 30 days of ownership improved 43% for vehicles built at Warren Truck Plant RAM 1500 Light Duty Trucks produced at Saltillo Assembly Plant - Saltillo, Mexico and Warren Truck Assembly Plant Warren, Michigan 8/7/

15 Quality Objectives Proactive Preventive Reactive Design systems less prone to failure and meet customer needs Prevent flow of problems to customers Identify and solve problems faster Concept Development Launch / Plant Field Vehicle Development Timeline 8/7/

16 Development of People Recruited quality team members with various backgrounds and experience levels University Corporate Personal development plans created to close gaps on technical and leadership skills required for current role and future aspirations Suppliers Warren Truck Assembly Other Assembly Plants 8/7/

17 The Right Tools for the Job Team leaders have the ability to access customer claims within 24 hours Team leaders are the Quality Manager for their Area and understand their impact on the customer The Voice of the Customer is shared throughout the assembly plant floor 8/7/

18 Quality Initiative Manufacturing Quality Campaign OLD Leadership NEW Plant Floor Plant Visits with Team Leaders You have a problem We have a problem Team Leader Floor Reviews Plant Floor Leadership Plant Town Halls 8/7/

19 Moving Forward Products are improving and will continue to improve All employees are engaged and taking ownership of Quality The Voice of the Customer is embedded in everything we do 8/7/

20 THANK YOU 8/7/