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APAC Region Mike Manley

APAC Region - Autoblog.gr · D D-Sedan D UV Freemont Small Wide CUSW Other Import Local Crossroad . APAC APAC Region ... Avventura Fiat Group Auto Sales India Private Ltd Network

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Page 1: APAC Region - Autoblog.gr · D D-Sedan D UV Freemont Small Wide CUSW Other Import Local Crossroad . APAC APAC Region ... Avventura Fiat Group Auto Sales India Private Ltd Network

APAC Region

Mike Manley

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APAC

APAC Region

Sales Organization Summary

National Sales Companies 6

General Distributors 13

Dealership Summary (2013)

Region FGA CJD

China 208 188

India 100 0

Other APAC 162 208

Shanghai

FCA China Sales ⊲ Employees: 141

APAC Engineering Center ⊲ Employees: 311

APAC Manufacturing & Powertrain ⊲ Employees: 210

FCA APAC Headquarters ⊲ Employees: 377

Hangzhou

HAVECO Transmission Plant capacity: 330K units ⊲ Employees: 774 ⊲ Products: 7DDCT, 5MTX, AMT

Changsha

GAC-Fiat JV ⊲ Assembly Plant capacity: 195K units ⊲ Engine Plant capacity: 140K units ⊲ Employees: 2,821 ⊲ Products: Fiat Viaggio and Ottimo

Mumbai

Fiat Group Automobiles India Pvt. Ltd. ⊲ Employees: 120

Chennai & Pune

APAC Technical Centers ⊲ Employees: 970

Ranjangaon

FIAL – JV ⊲ Assembly Plant capacity: 135K units ⊲ Engine Plant capacity: 350K units ⊲ Transmission Plant capacity: 300K units ⊲ Employees: 2,250

2014 APAC Footprint Rapidly growing infrastructure

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APAC

APAC Region

APAC Market Industry Evolution Fastest growing region globally

24.2

35.3 37.3 40.0

42.5 44.7 46.2

0

10

20

30

40

50

60

2009 2013 2014 2015 2016 2017 2018

China

Units (M)

Source: Q4 2013 IHS

⊲ Industry grows from 35M units in 2014 to 46M units in 2018 (6% CAGR)

⊲China remains the world’s largest market in 2018 with 28.8M units

⊲ India surpasses Japan as the 2nd largest market in the region, 3rd largest in the world, with 5M units in 2018

⊲Sedans (33% of industry) remain the dominant body style with C-sedan (8.4M units) being the largest segment

⊲The UV segment is the fastest growing (10% CAGR) and grows from 5M in 2014 to 8M units in 2018

+6% CAGR 2014-2018

+10% CAGR 2009-2013

India Japan Australia ASEAN Others

S. Korea

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APAC

APAC Region

72 73 90

115

200

335

0

50

100

150

200

250

300

350

400

2009 2010 2011 2012 2013 2014E

Total APAC FCA Volume Growth APAC sales projection to exceed 330K units by 2014

Units (K)

Fiat Includes Fiat Professional and Abarth

+29% CAGR

2009-2013

+2%

+28%

+72%

+24%

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APAC

APAC Region

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APAC

APAC Region

12,9

20,6 22,4

24,5 26,2

27,7 28,8

0

5

10

15

20

25

30

35

2009 2013 2014 2015 2016 2017 2018

Projected China Market Evolution Consistently strong industry growth through 2018

+7% CAGR 2014-2018

Includes Passenger Cars and Light Commercial Vehicles

+12% CAGR 2009-2013

Source: Q4 2013 IHS

⊲Despite a slowdown in growth, China forecasts a 7% CAGR through 2018 and remains the world’s largest automotive market

⊲Year over year industry increases through this period are in excess of one million units

Units (M)

+4% +6%

+7% +9%

+59%

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APAC

APAC Region

Projected China Market Evolution Sedans & UVs will remain the dominant segments

⊲With 12% CAGR, the UV segment is the fastest growing segment in China

⊲C sedan remains the largest single passenger car segment at 7M units in 2018

3,4

11,9

5,6

1,3

5,5

1,0

+5% CAGR

+11% CAGR

+9% CAGR

+3% CAGR +11%

CAGR

+12% CAGR

Units (M)

2,1

9,2

3,3

0,7 4,6

0,7

2013 2018

Sedan UV MPV VANS Others HATCH Source: Q4 2013 IHS

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APAC

APAC Region

⊲Grand Cherokee

⊲ Fiat 500 ⊲ Fiat Freemont ⊲ 4 Special

Editions

⊲ 300 ⊲Grand

Voyager ⊲ Journey ⊲Viaggio ⊲ Fiat 500C ⊲ 7 Special

Editions

⊲Cherokee ⊲Grand

Cherokee MCA

⊲Compass MCA ⊲ 4 Special

Editions

⊲Ottimo ⊲ 9 Special

Editions

25 24 39 57

130

235

0

50

100

150

200

250

300

2009 2010 2011 2012 2013 2014E

China Sales History Significant growth driven by new product launches and strong dealer development

+64%

+45%

+126%

(2%)

+51% CAGR 2009-2013

Units (K)

New Model Launches:

Dealer Network (Points of Sale):

70 94 132 267 396 648

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APAC

APAC Region

431 760

1.042 450

857

5.682

875 326

1.912 1.470

187 558 489 228

0

1.000

2.000

3.000

4.000

5.000

6.000

A Car B HB B Sedan B UV C HB C Sedan C UV B/C MPV D Sedan D UV D MPV E/F Sedan E/F UV E/F MPV

CY2013 China Product Portfolio Import based portfolio significantly limits segment coverage

Compass

Grand Voyager 300

Wrangler Grand Cherokee Patriot Cherokee

Viaggio Freemont 500/500C

Journey

Ottimo

Volume (K)

Source: Q4 2013 IHS

Brand Segment Coverage

Price Range Coverage (Industry)

Price Range Coverage

(Participating Segments)

Jeep 19% 2% 17%

Chrysler/Dodge 15% 2% 14%

Fiat 55% 32% 57%

Local Assembly / Manufacturing

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APAC

APAC Region

China Levers for Growth

1 Brand Development and

Expansion of Product Portfolio

2 Local Industrialization

3 Continued Development of

Distribution Channels

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APAC

APAC Region

2013 2014 2015 2016 2017 2018

B UV Renegade

C UV Compass/Patriot

C SUV

D UV

Wrangler

Cherokee

E UV

Grand Cherokee

Grand Wagoneer

E

300

Grand Voyager

D UV Journey

China Portfolio Cadence Jeep – Chrysler – Dodge

Import Small Wide CUSW Other Local

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APAC

APAC Region

China Portfolio Cadence Fiat

2013 2014 2015 2016 2017 2018

A 500/500C

B UV 500X

C

Ottimo

Viaggio

Bravo

D D-Sedan

D UV Freemont

Import Small Wide CUSW Other Local

Crossroad

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APAC

APAC Region

Expansion of Product Portfolio in China 13 major product actions through the period

2015 2016 2017 2018 2014

Ottimo

Import MID-CYCLE FRESHENING Local Production

Grand Voyager

Wrangler

Grand Cherokee

Grand Wagoneer

500X 500X

Imported Cherokee

Grand Cherokee

500

300

D Sedan

Crossroad

Viaggio

Ottimo

300

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APAC

APAC Region

Haveco - Hangzhou

Transmission Plant 3 Transmissions

GAC Fiat JV - Changsha

Vehicle Assembly Plant 1 Platform 2 Models Engine Plant 1 Engine

Haveco - Hangzhou

Transmission Plant 2 Transmissions

Summary

Vehicle Production capacity: 195K units, 99% utilization* Engine Production capacity: 140K units Transmission Production capacity: 180K units Total Employees: ~3,600

Summary

Vehicle Production capacity: 775K units, 150% utilization* Engine Production capacity: 820K units Transmission Production capacity: 700K units Total Employees: ~13,000

GAC Fiat JV - Guangzhou

Vehicle Assembly Plant 1 Platform 3 Models

GAC Fiat JV - Changsha

Vehicle Assembly Plant 1 Platform 5 Models Engine Plant 5 Engines

China Industrialization Industrial expansion in assembly and powertrain operations

2014 2018

2 plants 1 platform 2 models 1 engine 2 transmissions 3 plants 2 platforms 8 models 5 engines 3 transmissions

*Calculation based on Harbour Normalized Capacity

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APAC

APAC Region

682 1.129

1.633 954

1.580

6.990

1.600

647

2.456 2.370

264 834 722

348

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

A Car B HB B Sedan B UV C HB C Sedan C UV B/C MPV D Sedan D UV D MPV E/F Sedan E/F UV E/F MPV

CY2018 China Product Portfolio Portfolio expansion and localization dramatically improves industry coverage

500/500C 500X

300 Grand

Voyager

C UV Grand Cherokee

Renegade Grand Wagoneer

Wrangler Renegade Cherokee

Ottimo Viaggio D Sedan

Volume (K)

Source: Q4 2013 IHS

Local Assembly / Manufacturing

Brand Segment Coverage

Price Range Coverage (Industry)

Price Range Coverage

(Participating Segments)

Jeep 26% 11% 42%

Chrysler 5% 1% 14%

Fiat 57% 37% 65%

Crossroad

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APAC

APAC Region

China C SUV Price Volume Curve

Compass Covers 6.5% of Segment by Price Total Segment Share of 4% 58% Share of Price Range

50K 500K

Segment Volume: 875K Units (2013) 1,600K Units (2018)*

Compass with No Duties Covers 43% of Segment by Price

Price (RMB)

Vo

lum

e

Localization

*Source: Q4 2013 IHS

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APAC

APAC Region

25

130

235

~815

0

100

200

300

400

500

600

700

800

900

1000

2009 2013 2014E 2018

China FCA Volume Growth Plan achieves growth of 38% CAGR through the period

+262%

+51% CAGR

2009-2013

+38% CAGR

2014-2018

+418%

⊲Vehicle volume growth of 38% CAGR from 2014 to 2018CY is enabled by local production and the launch of Alfa Romeo

Units (K)

50 20 60

~850

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APAC

APAC Region

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APAC

APAC Region

2,1

3,1 3,3

3,7

4,2

4,7 5,1

0

1

2

3

4

5

6

2009 2013 2014 2015 2016 2017 2018

India Market Evolution Anticipated industry growth continues to be strong through the business plan period

+12% CAGR 2014-2018

+10% CAGR 2009-2013

+49%

+55%

Includes Passenger Cars and Light Commercial Vehicles

⊲ India is projected to be 3rd largest market in the world by 2018

Source: Q4 2013 IHS

Units (M)

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APAC

APAC Region

570

1.350

350

220

65 550

Projected India Market Evolution Hatches remain key, with UVs set to overtake Sedans

Units (M)

HATCH UV MPV PUP VANS SEDAN

2013 2018

810

2,240

710

420

70

830

+2% CAGR

+9% CAGR

+7% CAGR

+14% CAGR

+15% CAGR

+11% CAGR

⊲ UVs are the fastest growing segment in the India market with a 15% CAGR

⊲ B Hatch is the largest segment in the Indian market at 1.3M units in 2013, growing to 2M units in 2018

⊲ D and larger segments represent less than 10% of the industry

Source: Q4 2013 IHS

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APAC

APAC Region

India Sales History Declining sales trend was reversed in 2013 by network restructuring

23 22

17

11 10

25

0

5

10

15

20

25

30

2009 2010 2011 2012 2013 2014E

(4%)

(23%)

(35%)

(9%)

⊲FCA restructured distribution in Q1 2013

⊲From Q2 2013 through to the end of

2013 CY, Fiat achieved 41% sales growth – making Fiat the fastest growing brand in India despite a declining market

Units (K)

(19%) CAGR 2009-2013

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APAC

APAC Region

54

740

550

395

144 151 79

114

217

18 0

100

200

300

400

500

600

700

800

A Hatch B Low Hatch B HighHatch

C Low Sedan C HighSedan

B UV C UV D UV MPV Others

Grande Punto Linea Linea

Classic

2013 India Product Portfolio Limited portfolio achieves 44% segment coverage

Volume (K)

Source: Q4 2013 IHS

Local Assembly / Manufacturing

Brand Segment Coverage

Price Range Coverage (Industry)

Price Range Coverage

(Participating Segments)

Fiat 44% 26% 60%

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APAC

APAC Region

India Growth Drivers Products, portfolio, & network evolution

Products

New Avventura

Fiat Group Auto Sales India Private Ltd

Network

100 dealers - 13 CY 220 dealers - 18 CY

New Grande Punto

New Linea

Portfolio

New Global Small Platform

B Hatchback

C Sedan

B UV

Jeep Industrialization Brand Launch

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APAC

APAC Region

2013 2014 2015 2016 2017 2018

B Hatch

Grande Punto

Avventura

C Sedan

Linea/ Grand Siena

Linea Classic

Specialty

500

Punto

C UV C SUV

D UV Wrangler

E UV Grand Cherokee

India LRP Cadence POR

CKD

Import SC04 New Global Small Platform

Other Local

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APAC

APAC Region

Major new model launches in India Launch 2 brands and 12 major product actions through the period

2015 2016 2017 2018 2014

Avventura

Import MID-CYCLE FRESHENING Local Production

C SUV

Punto

Grande Punto

Linea

Punto Grand Siena

Wrangler Grand Cherokee

Wrangler Grand Cherokee

500 Punto

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APAC

APAC Region

Summary

Vehicle Production capacity: 135K units, 64% utilization* Engine Production capacity: 350K units Transmission Production capacity: 300K units Total Employees: ~2,250

Summary

Vehicle Production capacity: 245K units, 155% utilization* Engine Production capacity: 350K units Transmission Production capacity: 330K units Total Employees: ~5,000

FIAL JV - Ranjangaon

Vehicle Assembly Plant 3 Platforms 6 Models

Engine/Transmission Plant 6 Engines 3 Transmissions

FIAL JV - Ranjangaon

Vehicle Assembly Plant 1 Platform 3 Models Engine/Transmission Plant 3 Engines 1 Transmission

India Industrialization Industrial expansion in assembly and powertrain operations

2014 2018

2 plants 1 platform 3 models 3 engines 1 transmission 2 plants 3 platforms 6 models 6 engines 3 transmissions

*Calculation based on Harbour Normalized Capacity

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APAC

APAC Region

23

10

25

~130

0

20

40

60

80

100

120

140

160

180

2009 2013 2014E 2018Units (K)

India FCA Volume Growth Increased local production drives a 51% CAGR through 2018

+420%

(19%) CAGR 2009-2013

(57%)

⊲ In Q1 2014 Fiat achieved a year over year increase of 292%, making them the fastest growing brand in India

⊲ Fiat Brand grows after restructuring and refreshed/new models

⊲ Introduction of Jeep Brand in 2015

+51% CAGR 2014-2018

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APAC

APAC Region

South Korea

Japan

Indonesia

Malaysia

Australia

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APAC

APAC Region

9,2

11,7 11,5 11,8 12,0 12,2 12,4

0

2

4

6

8

10

12

2009 2013 2014 2015 2016 2017 2018

Rest of APAC Markets Evolution Strong growth is expected in ASEAN with modest changes in Japan, Australia & South Korea

+6% CAGR 2009-2013

+2% CAGR 2014-2018

⊲The ASEAN region exhibits the strongest growth in APAC outside of China and India with 5% CAGR from 2014-2018

Units (M)

Japan ASEAN S. Korea Australia New

Zealand

Rest of APAC

4.2

4.5

1.6

1.4

0.7 0.6

1.2

1.5

3.3

5.1

Source: Q4 2013 IHS

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APAC

APAC Region

24

60

80

~125

0

20

40

60

80

100

120

140

160

180

2009 2013 2014E 2018

+56%

+26% CAGR 2009-2013

+12% CAGR 2014-2018

Totals include Dodge, Alfa Romeo and Ram Fiat Includes Abarth

FCA Volume Growth – Other APAC Markets Plan achieves 12% CAGR through 2018

+146%

⊲New C SUV drives Jeep volume

growth beginning in 2017

⊲Continue to grow footprint in region with ongoing network development

Units (K)

10

35

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APAC

APAC Region

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APAC

APAC Region

Total APAC FCA Volume Growth FCA APAC volume grows by approximately 900K units from 2013 to 2018

72

200

335

~1,065

0

200

400

600

800

1000

1200

1400

2009 2013 2014E 2018

+228%

+29% CAGR 2009-2013

+35% CAGR 2014-2018

+179%

Fiat Includes Fiat Professional and Abarth

Units (K)

30 95

70

~1,100

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APAC

APAC Region

72

200

1,065

60 13 55

0

200

400

600

800

1000

1200

2009 2013 2018

APAC Growth Drivers Improved competitiveness of products will result in share gains

Volume Increase from

Industry Growth

Volume Increase from Share Growth

Volume Increase from New Models

Volume Increase from

Industry Growth

Volume Increase from Share Growth

Volume Increase from New Import

Models

6%

9%

11%

47% 10% 43%

Units (K)

Volume Increase from

New Local Models

74%

~1,100

57 79

96

668

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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.