33
December 1, 2011 The American Contribution to Global Carco Bank of America / Merrill Lynch Annual 2011 Leveraged Finance Conference

The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

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Page 1: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

December 1, 2011

The American Contribution to Global Carco

Bank of America / Merrill Lynch Annual 2011 Leveraged Finance Conference

Page 2: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

1December 1, 2011

This document contains forward ‐ lookingstatements that ref lect management's currentv iews with respect to future events . The words"ant ic ipate“, "assume“, "bel ieve“, "est imate“,"expect“ , " intend“, "may“, "plan“, "project" and"should" and simi lar express ions ident i fyforward ‐ looking statements. Such statementsare subject to r isks and uncerta int ies , inc luding,but not l imited to: the effect ive implementat ionof the Chrys ler Group 2010 – 2014 business planoutl ined on November 4, 2009, includingsuccessful vehic le launches; industry SAARlevels ; cont inued economic weakness, especia l lyin North America, including cont inued highunemployment levels and l imited avai lablef inancing for our dealers and consumers;introduct ion of competing products andcompetit ive pressures which may l imit ourabi l i ty to reduce sales incent ives ; supplydisrupt ions result ing from the natural disastersand other events impact ing our supply chain;and our abi l i ty to real i ze benef i ts f rom ourindustr ia l a l l iance with Fiat . I f any of these orother r isks and uncerta int ies occur, or i f the

assumptions underly ing any of these statementsprove incorrect , then actual results may bemater ia l ly di f ferent from those expressed orimpl ied by such statements. We do not intendor assume any obl igation to update any forward ‐looking statement, which speaks only as of thedate on which it is made, except as required bylaw. Further detai ls of potent ia l r isks anduncerta int ies that may affect Chrys ler Group aredescr ibed in Chrys ler ’s Form 10 f i l ings.

Information included herein regarding Fiat 'sfuture business plans, products or f inancia lperformance was provided by Fiat and is subjectto the r isks descr ibed under the heading "Riskand Uncertaint ies" on the Investor Relat ionspage of i ts web si te : www.f iatspa.com. Theforward ‐ looking statements inc luded in thisinformation relate to events and depend oncircumstances that may or may not occur orexist in the future, and, as such, undue rel ianceshould not be placed on them. Information on,or access ib le through, the Company's website isnot a part of , and is not incorporated into thisdocument.

Forward‐Looking Statements

Page 3: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

2December 1, 2011

One GroupOne Group

Page 4: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

3December 1, 2011

From July 1st, 2012 until June 30th, 2016: Fiat has the option to purchase 40% of VEBA’s original interest in Chrysler Group. Option is exercisable not in excess of 20% of Covered Interest in any 6 month period. Before an IPO, exercise price is based on a market multiple not to exceed Fiat’s multiple applied to Chrysler Group reported LTM EBITDA less net industrial debt and following an IPO based on trading price of common stock

In addition to above option, under Equity Recapture Agreement: i) Fiat may purchase any remaining membership interest held by VEBA at a specified threshold ($4.25bn plus 9% p.a. compounded annually from Jan 1, 2010), and ii) Fiat receives all proceeds from Chrysler Group ownership interest held by VEBA over the above threshold (and once such threshold is reached, any remaining shares are turned over to holder)

Creation of a Global AutomakerMilestones in the Integration of Fiat & Chrysler Group

2009June: 20% initial

ownership interest in Chrysler Group LLC

2011January: achievement of 1st Performance

Event by Chrysler Group

April: achievement of 2nd Performance Event by Chrysler Group

May: exercise of Incremental Equity Call Option by Fiat

July: purchase of ownership interest in Chrysler Group from UST and Canada by Fiat plus UST rights under Equity Recapture Agreement

By year-end: expected achievement of 3rd

Performance Event, moving Fiat’s interest in Chrysler Group up to 58.5% from current 53.5%

VEBA 41.5% FIAT

58.5%

Chrysler Group pro‐forma shareholder structure(on a fully diluted basis)

Page 5: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

4December 1, 2011

Established One Leadership TeamGlobal Executive Council

CHIEFOPERATING

OFFICERS

BRANDLEADERS

INDUSTRIALPROCESSLEADERS

CEO

SergioMarchionne

SUPPORT/ CORPORATE

LEADERS

EMEAGianni Coda

NAFTASergio Marchionne

LATAMCledorvino Belini

APACMichael Manley

Parts& Service

(Mopar)Pietro Gorlier

Systems& Castings

(Comau & Teksid)Riccardo Tarantini

Components(Magneti Marelli)

Eugenio Razelli

DesignLorenzo Ramaciotti

GroupPurchasing

Vilmar FistarolQualityDoug Betts

ProductPortfolio

ManagementMark Chernoby

PowertrainCoordinator

Bob Lee

ChiefManufacturing

OfficerStefan Ketter

ChiefTechnology

OfficerHarald Wester

BusinessDevelopment

Alfredo Altavilla

ChiefHuman

ResourceOfficer

Linda Knoll

ChiefFinancial

OfficerRichard Palmer

JeepMichael Manley

FiatOlivier François

ChiefMarketing

OfficerOlivier François

CommercialVehicles

Lorenzo Sistino

AlfaRomeoAbarth

MaseratiHarald Wester

LanciaChrysler

Saad ChehabDodge

Reid Bigland

Fiat Services& HoldingsAlessandro Baldi

Page 6: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

5December 1, 2011

Operational MomentumOperational Momentum

Page 7: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

6December 1, 2011

State of the Company at June 2009 and Challenges Ahead

A Solid Foundation...

Brands with strong heritage in North America, Jeep globally recognized

US distribution network re‐sized

Complementary partnership with Fiat established

Experienced and talented workforce

Competitive labor rates and significantly restructured OPEB liabilities

Sufficient liquidity to launch a credible business plan with speed being of the essence

...but Several Key Challenges Ahead

Regain customer trust and confidence, reduce reliance on high incentives• Reverse slide in market share• Refresh aged product line‐up• Develop competitive, brand‐relevant focused vehicles and complete C‐ & D‐segment offerings

• Close gap in quality and reliability vs competition• Focus on more fuel‐efficient product portfolio

Streamline development processes, drive architecture convergence with Fiat

Improve manufacturing infrastructure and empower workforce

Reconstruct supply base and converge with Fiat

Develop International distribution leveraging Jeep and Fiat brands

Rebuilding Brand Equity

Page 8: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

7December 1, 2011

8.0

9.6

11.4

11.3

12.8

14.5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Chrysler Group Gaining Market Share in U.S. and Canada19 consecutive months of U.S. year‐over‐year increases

17%

27%

17%

18%

-3%

8%

1%

8%11%

8%

23%

13%

31%23%

10%

30%

20%

31%27% 27%

58%

71%

36% 37%

27%

46%

33%

42%

50%

40%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jan Feb Mar Apr May Jun Jul Aug Sept Oct

CG US Retail Only Sales

CG U.S. Total Sales

U.S. Industry

Year‐over‐year sales growth in the U.S. is outpacing the industry

MARKET SHARE(%)

2010 20112009

U.S.Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009

Six consecutive quarterly year-over-year share gainsFleet mix at 26%, down from 34%

Steady increase in market share primarily resulting from momentum of 16 new and significantly refreshed products

All-new Jeep Grand Cherokee, new Chrysler 200 and Dodge Durango continue to boost sales

Canada

Share steadily increased from 2009 lowsQ3 2011 share at 14.5%, up 1.7 ppt vs. a year ago

Retail sales (excluding fleet) increased 10%Retail of retail market share* increased to 13.4%, up 1.6 ppt

2011

YEAR-OVER-YEAR SALESCHANGE (%)

* - Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet)

Page 9: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

8December 1, 2011

A/B SEGMENT

C SEGMENT

D SEGMENT

E SEGMENT

Up58%

Up309%

Up27%

Up13%

Up101%

F TRUCK

Charger Challenger DurangoGrand CaravanJourneyAvenger

Up34%

Up11%

Up79%

Up9%

New29K

Dn13%

Up71%

New44K

Up4%

Town & Country300200

Chassis Cab

Up97%

500 & Convertible

New11K

The 16 New and Significantly Refreshed Product Driving Sales in all Segments October YTD 2011 U.S. retail only sales versus October YTD 2010

The new Dodge C‐Sedan coming in H1 2012 will fill a void in the largest worldwide segment

Up49%

Up39%

Up53%

Up18%

New11K

Page 10: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

9December 1, 2011

New C‐ and D‐Segment Entries – Heart of the Market

10

23 26

Q1 Q2 Q3

200 & Convertible C‐Sedan(launching H1 2012)

• All‐new interior with world‐class craftsmanship; new exterior design

• High fuel economy standards compared to segment average   (Hwy 29/31 for V6/I4 engines, respectively) 

• “Top Safety Pick for 2011” by the Insurance Institute for Highway Safety

• Named “2012 Motor Trend’s Car of the Year Contender”• Award‐winning “Imported from Detroit” campaign• 2011 Sales (000’s):

“Marchionne insisted the 200 had to be remade and Chrysler’s engineers responded to the challenge.  The car was given a complete makeover inside and out.  The results were impressive.“ 

• Dodge is entering the largest retail segment in the U.S. with a vehicle from the combined Fiat‐Chrysler Compact architecture

• Mid‐size roominess with compact car fuel economy at a compact car price

• Includes the segment’s most powerful lineup of engines

• Hundreds of ways to customize from the factory• Best‐in‐class technology and safety

The ultimate blend of power, performance, fuel economy and style

Page 11: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

10December 1, 2011

Investments in Quality Proving Successful

• Warranty claims down 58% since their peak• Lowest warranty rate in our corporate history

• Warranty impact of launch and quality spikes reduced by more than 70%

Respondents likely to recommend brand to  friend/colleague improved by 48% over the last 2 

years

Other Achievements:• Favorable new model reviews from key opinion makers boosting perceived quality

Eight “Best Buys” from Consumers Digest (Chrysler 300, Town & Country, Jeep Grand Cherokee, Dodge Durango, Grand Caravan, Challenger, Ram 1500 and Fiat 500)

• Third‐party awards total over 100 in 2011, to‐date

2009 2010 2011

WARRANTY CLAIM RATE(CONDITIONS) CUSTOMER PROMOTER SCORE

(@ YEAR 3 OF OWNERSHIP)

Page 12: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

11December 1, 2011

New Powertrains Leading to Improved Performance and Fuel Economy

• First NAFTA OEM implementation of 8‐speed transmission technology; to be followed by 9‐speed transmission in 2013

• Provides 8‐12% increase in EPA Combined Fuel Economy for Chrysler’s RWD V6, V8 and small Turbo Diesel applications (vs. 5‐speed transmission); and reduces CO2 emissions

• Delivers improved performance and shift quality over conventional 5‐ and 6‐speed transmissions

• Will be available across Chrysler Group’s RWD product portfolio; first application with the 3.6L V‐6 Pentastar Dodge Charger and Chrysler 300 vehicles

8‐Speed RWD Transmission

Fuel Economy Improvement for Chrysler 300 and Dodge Charger

+ 10‐12%

2011 MY       2012 MY

• Extensive manufacturing base for FIRE engine: US‐Michigan, Brazil, India and Italy

• MultiAir add‐on package on base engine; shot‐by‐shot control of air / fast response continuously variable valve lift 

• Up to 10% fuel economy improvement; strong reduction of HC/CO/NOxemissions

• Highly fuel‐efficient V6 engine family; first launched in 2011 Jeep Grand Cherokee

• Fuel efficiency improvement up to 10%• Flexible family architecture for downsized displacement, Direct Injection, Turbo Charging and MultiAir

• Produced in two state‐of‐the‐art manufacturing facilities in Trenton (US‐Michigan) and Saltillo (Mexico); ~1 million engines target per year

V6 Pentastar Engine Family

FIRE MultiAir Engine

VM Motori 2.8L & 3.0L Diesel Engines

• Applied to Chrysler Grand Voyager, Jeep Wrangler, Chrysler 300, Lancia Thema and Jeep Grand Cherokee in Europr

• 24% (Grand Voyager) and 27% (Thema) improved fuel consumption vs. 3.6L gas engine

• Meets Euro 5b emmissions; Biodiesel capable

Page 13: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

12December 1, 2011

Improving Competitiveness Through Shared Architectures

Mini

Small

Compact

SUV

Minivan

Pick‐up

Large

LCVs

Segment

Chrysler Group

Origin of architectureMini Small Compact

1Munits

2010 2012E 2014E 2010 2012E 2014E 2010 2012E 2014E

Fiat Chrysler Group

The 3 main Group architectures expected to exceed 1M units each by 2014

Fiat

3 3

8

2

0

2

2010 2014

A/B-Segment

C/D-Segment

E-Segment

11

7 *

1 Fiat Based

2 Fiat Based

0 Fiat Based

Chrysler Architecture Plan

Over half of 2014 car volumes based on Fiat-derived architectures,with three architectures to achieve 1 million vehicles combined each

* Excludes Truck and Specialty

Page 14: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

13December 1, 2011

Product Spending

Vehicle Engineering / ER&D (1)

Capital Spending

$Bil

1. ER&D includes expense for Product Design Office2. Since Company began operations in June 2009

Continued Product InvestmentsCapital expenditures and capacity utilization

2.4

4.24.5

5.6

4.2 4.0

Model BFiat

Model CChrysler Group

Cars developed on common architectures can be allocated to 

same flexible manufacturing plant to optimize industrial costs, including supply 

chain costs

Optimal allocation of production

Plant B

Model AFiat

Model AChrysler Group

Plant A

Capital investments are being made to enhance our product and expand the product line without adding brick and mortar capacity  

Announced Plant Investments2:Sterling Heights Assembly Plant – New Body Shop $0.2 BSterling Heights Assembly & Stamping Plants 0.9Toledo Machining 0.1Toledo Assembly Complex 0.5Trenton North Engine Plant 0.1Kokomo transmission facilities 1.3Belvidere Assembly Plant 0.6Global Engine Manufacturing Alliance 0.3Other (including supplier tooling) 0.5

$4.5 B

73%

93%

49%

63%

0%

20%

40%

60%

80%

100%

2010A 2011 Fcst

Harbour definition = Two 8‐hour shifts @ 235 daysTechnical definition = 3 shifts in all plants (except Saltillo) @ 285 days)

% UtilizationCapacity Utilization

CG Production 1.6M 2.0M(excludes Purchased vehicles)

Harbour

Technical

Page 15: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

14December 1, 2011

New 4‐Year UAW Labor Agreement Highlights – Ratified in OctoberWin‐Win for Chrysler Group and UAW

New plant and product investments

$4.5B in investments; 2,100 new entry‐level jobs

Gains for new hiresHighest maximum rate increases to $19.28 per hour by end of contract; 

no cap on new hires

Ratification, Performance, and Quality / WCM Bonuses

Ratification bonus of $3,500, 50% delayed until a financial milestone is achieved; Performance and Quality bonuses total 

$4,000 over the contract period with 100% upside potential

Simplified  and transparent profit sharing formula

Based on 85% of reported worldwide Modified Operating Profit

Maintained overall labor cost 

competitiveness with foreign transplants

~$51 / hour all‐in

New 4‐year national labor agreement with the UAW maintains Chrysler Group’s cost competitiveness and links variable compensation directly to company performance and product quality

No additional cost for traditional employee defined 

benefit pension plansNew hire pension plan changed to a defined contribution plan; Legal 

Services Plan eliminated after 2013

Page 16: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

15December 1, 2011

Combined Purchasing Power due to Integration with Fiat

$31B$39B

$70B

$41B$45B

$86B

•Sourcing table• Joint sourcing development

• Working collaboratively with Fiat counterparts •Weekly synergy call

•Strategic project updates

• Combined procurement efforts total forecasted level of $86B in 2011 vs. $70B in 2010, nearly tripled from 2010 standalone amount

• Strong and collaborative integration with Fiat Group Purchasing, leveraging Chrysler Group, Fiat and Fiat Industrial

• Exchange program well established and benefiting team cohesion since Q1 2010

• Global leads for commodities and services have been established – 3 from Chrysler and 3 from Fiat

• Merged China office 

• Joint commodity and supplier strategies in place for more than 90% of APV

• Establishing common approach to supplier relationship management

Page 17: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

16December 1, 2011

202K

~500K*

141K 147K

215K+4%

+37%

*Forecast Includes vehicles produced by Chrysler for sale under Fiat brands

Plus: Additional Opportunities in Brazil, China and Russia

International growth driven by global Jeep brand

International Success and Future Volume Development

Dodge/Ram

Chrysler/Lancia

Jeep

Fiat

Europe East Eur, ME& Africa

Asia-Pacific

LatinAmerica

2010 2011

October YTD Sales Gains(International Markets)

(19)% +7%

+57%

+18%

• Europe – Italy and France achieving significant gains; Chrysler brand vehicles being integrated into Lancia brand

• EEMEA – Russia and South Africa achieving significant gains of 104% and 40%, respectively

• Asia‐Pacific – Strength in China and Australia (two largest markets for Chrysler) with YTD gains of 71% and 36%, respectively

• Latin America – YTD gains in all markets (except Venezuela)

Page 18: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

17December 1, 2011

Driving Increased European Sales Performance

• Q3 2011 sales up 126% over same period prior year to ~2K units

• Grand Cherokee CYTD sales up 18% with ~ 4K units.

• Compass sales up +1,340% over Q3 2010 to ~2.5K units

• Compass CYTD sales up 430% over prior year to ~5K units

• Q3 2010 Wrangler sales up +59% over prior year to ~2K units

• Wrangler CYTD sales up 63% to ~6K units

17.432* total Jeep sales up 55% over Q3 CYTD 2010 Strong 2011 Q3 Jeep sales up 135% over same period prior year to ~7K* units

Key actions

• Diesel engine launch June 2011.

• New 3.0 CRD delivering 8.3 L/100 km combined - 20% reduction in CO2 emissions versus prior model

Key actions• Full availability of 2WD in Q3 - 40% mix

• Diesel powertrains introduced in 2011 with 6.3% improvement in CO2

Key action

• Diesel fuel consumption improved in 2011CY to 7.1 L/100 km combined with 15% improvement in CO2

* ACEA Source – Passenger car only – EU27 +EFTA

Wrangler & Wrangler Unlimited

Q3 YTD

+126%+18%

Compass

Q3 YTD

+1,340%

+430%

Q3 YTD

+59%

+63%Grand Cherokee

2011

2010

Page 19: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

18December 1, 2011

• Jeep Grand Cherokee is the most awarded SUV ever, receiving over 30 awards from automotive journalist associations, print/on‐line/television media outlets and industry organizations

Recently voted “SUV of Texas” and the Overland Summit model won top honors in the Luxury SUV category by the Texas Auto Writers Association

• 3.6L Pentastar V‐6 engine delivers up to 23 MPG (highway) fuel efficiency and 550 mile driving range

• Jeep Grand Cherokee SRT8 available in the U.S.; to be available in Europe starting Q1 2012

• Sales increases in all markets (Q3 YTD 2011 versus Q3 YTD 2010) to 118k• U.S. +  78%• Canada +  86%• Mexico +101%• International +  73%

Grand CherokeeThe “Most Awarded SUV Ever”; worldwide sales success

Q1 Q2 Q3

2010 2011

Jeep Grand Cherokee Period-over-Period Worldwide Sales Gains

59%174%

47%

“The 2012 Grand Cherokee, with its well‐trimmed and roomier interior, powerful V6 and more refined performance and ride, is in fighting shape as a top contender among midsize SUVs.”  

Edmunds.com

Page 20: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

19December 1, 2011

300New model builds on history as most awarded new car ever

Q1 Q2 Q3

2010

2011

U.S. Sales

• First eight‐speed automatic transmission in a domestic, luxury sedan

• 3.6L Pentastar V‐6 engine with 292 horsepower

• Best‐in‐class highway fuel economy, with 31 mpg highway 

• Best‐in‐class V‐6 AWD fuel economy, with 18 mpg city and 27 mpg highway

• World‐class interior takes domestic luxury to new level

• SRT8 version is the ultimate combination of world‐class luxury, power and handling

New “If You’re Gonna” advertisements link the 300 to “Imported from Detroit” 

campaign

U.S. sales gaining momentum as vehicle availability increases since Q1 2011

(46)% +18%(24)%

Page 21: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

20December 1, 2011

&                     Momentum is AcceleratingNew and improved products leading the charge for Dodge

Challenger SRT8 392 Yellow JacketChallenger SRT8 392 Yellow Jacket

Charger SRT8 Super BeeCharger SRT8 Super Bee

Dodge and SRT – A Perfect Match• Awe‐inspiring powertrains• Outstanding ride, handling and capability• Benchmark braking• Aggressive and functional exteriors• Race‐inspired and high‐performance interiors

– Street & Racing Technology– Street & Racing Technology

Recent Awards:• Dodge Charger named Automobile Magazine  “All‐Star” for 2012• Dodge Durango named “Full‐Size SUV of Texas” by the Texas Auto Writers Association 

and a “Top Safety Pick” for 2012 by the Insurance Institute for Highway Safety

Challenger

Dodge builds upon nearly 100 years of innovation, racing, and technology with design and value. 

In the past year, Dodge has launched six all‐new or completely redesignedvehicles making Dodge one of the youngest dealer showrooms in the country.  The result – Retail sales up 39% CYTD & countless new awards

Dodge LineupDodge Lineup

Charger

Town & CountryJourney

Avenger

Durango

Page 22: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

21December 1, 2011

Truck SuccessNew versions contribute to share increases

• Designed for a young, value oriented customer

• Standard 5.7L HEMI V8 engine• 390 HP and 20 MPG

• Engineered for the cost conscious  commercial customer• Standard 5.7L HEMI V‐8 engine• Tows up to 10,400 pounds ‐more than similar priced competitors

Ram 1500 ExpressRam 1500 Express

Ram Laramie LonghornRam Laramie Longhorn

Brand focus on Hispanic Market

New, fully integrated Hispanic campaign “A Todo Con Todo”  launched in key markets

First‐ever Hispanic Mexican Regional music platform        live 11/1 on Yahoo!  ‐ “La Banda Ram”

Hispanic Brand website and Mobile Sites launched

Ram pickups continue to gain momentum in the marketplace with quarterly year‐over‐year gains during 2011

New versions driving share gains (versus 2010) in the Large Pickup segment

Mossy Oak EditionMossy Oak Edition• The ultimate truck for 65% of truck customers who hunt, camp, fish and boat

• Based on the successful Outdoorsman package

• The most luxurious Ram ever with a Western flair

• Highly crafted interior

Ram 3500 H.O. Cummins with Max TowRam 3500 H.O. Cummins with Max Tow• Proven Cummins engine with 800lb ft of torque • Best in Class 22,750 Trailer Tow Capability

Ram 1500 TradesmanRam 1500 Tradesman

• Ram partners with Mossy Oak – the top Camo brand in the US

Q1 Q2 Q3

2010 2011

Ram Pickup Period-over-Period U.S. Sales Gains

38%

23%18%

Segment share increase (period‐over‐period) +1.6 ppt +3.3 ppt +1.3 ppt

Page 23: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

22December 1, 2011

Brand in U.S. and Canada

926 

6,578 

10,721 

86

147

181

0

5,000

10,000

0

50

100

150

200

Q1 2011 Q2 2011 Q3 2011

Fiat Dealers(U.S. & Canada)

Fiat Brand Sales

(U.S. & Canada)Fiat 500 AbarthFiat 500 Abarth

• Introduced at the Los Angeles Auto Show• European racing traditions with world‐class performance and precision, purposeful and aggressive styling, and high power‐to‐weight ratio

• 1.4L MultiAir® Turbo engine

FIAT – Jennifer Lopez Advertising CampaignFIAT – Jennifer Lopez Advertising Campaign

The news about the Fiat 500 and Jennifer Lopez advertising campaign generated over 240 

million overall media impressions

FIAT brand sales increasing in U.S. and Canada; dealers, new editions and marketing 

campaigns continue to launch

Facts:• Fiat 500 and Fiat 500 Cabrio produced in Mexico• Run‐rate target of 45‐50K units annually• Abarth version coming in 2012• Named candidate for “2012 North America Car of the Year”• Named “Top Safety Pick for 2011”

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23December 1, 2011

CommercialsCommercials

Page 25: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

24December 1, 2011

Financial MomentumFinancial Momentum

Page 26: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

25December 1, 2011

Financial HighlightsQ1 2010 – Q3 2011

Operating Profit break-even reduced to 1.5M vehicles 2

1. Excludes loss on extinguishment of debt of $551 million in Q2 20112. Breakeven estimates and implied U.S. SAAR are illustrative one‐time calculations that reflect estimates of sales volumes and structural costs; Structural costs are composed of plant and corporate 

expenses, depreciation and amortization (excluding depreciation of equipment on operating leases), sales and marketing expenses and ER&D expensesNote – Financial results based on U.S. GAAP – see Non‐U.S. GAAP Financial Information and Other Items

(197) (172)(84)

(199)

116 181 212

143 183239 198

477 507 483

787 855

937 882

1,171 1,293

1,119

-400

-200

0

200

400

600

800

1,000

1,200

1,400

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

$ Millions

Modified EBITDA

Modified Operating Profit

Adjusted Net Income (Loss) 1

WorldwideShipments (000’s)         380 433 407 382 485 514 469

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26December 1, 2011

Cash from Operations adding to Cash Balance2010‐2011 Y‐T‐D

Dec 31,2009

ModifiedEBITDA

WorkingCapital &Other

CapitalExpenditures

Pension /OPEB

Taxes &Interest

DebtProceeds Netof Payments

(1)

Dec 31,2010

ModifiedEBITDA

WorkingCapital &Other

CapitalExpenditures

Pension /OPEB

Taxes &Interest

DebtProceeds Netof Payments

(2)

Sept 30,2011

Change in Cash+$1.5

(0.5)

2.0

7.3(1.2)5.9

3.5

(2.4)

0.1

Free Cash Flow+$1.4

Note: Numbers may not add due to rounding1. Debt Proceeds Net of Payments include proceeds from the Mexican development banks credit facility of $0.4B partially offset by payments on the Supplier Receivables SPV loan ($0.1B), and Canadian HCT Notes 

and other principal payments ($0.2B)2. Comprised of the New Term Loan for $3.0B, the new Secured Senior Notes for $3.2B, and the Incremental Equity Call Option from Fiat of ~$1.3B, all used to repay UST and EDC Governments’ Debt of $7.6B and 

serve the Transaction Fees and Expenses for $0.2BNote – Financial results based on U.S. GAAP – see Non‐U.S. GAAP Financial Information and Other Items

Change in Cash+$2.1

Free Cash Flow+$2.0

$ Billions

(0.3)

1.8

(0.7)

3.6

(1.9)

(0.3)

9.5

Page 28: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

27December 1, 2011

Cash and Gross / Net Industrial Debt 2010‐2011 Y‐T‐D

7,3677,841 8,260

7,347

9,87710,175

9,454

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

3,825 3,3853,766 5,773

3,377 2,11211,192 11,226

12,026

13,120 13,25412,287

Addition of Mexico Development Banks 

Loan

Addition of Canada Health Care Notes

Refinancing of Gov’t debt plus equity 

proceeds from FiatGROSS

INDUSTRIAL DEBT

CASH

NET INDUSTRIAL

DEBT

$ Millions

2,868

12,322

Note – Financial results based on U.S. GAAP – see Non‐U.S. GAAP Financial Information and Other Items

Page 29: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

28December 1, 2011

Gross Industrial Debt Maturity Schedule

Note: Excluding accrued and accreted interest 

2011 2012 2013 2014 2015 2016+September 30, 2011 (Carrying Value)

0.4 0.4 0.5

10.8

0.20.0

Annual MaturitiesGross

Industrial Debt

$ Billions

0.1 0.2 0.4 0.5 0.5 11.5Face Value

13.2

12.3 1

1 Excludes Gold Key Lease (GKL) self‐liquidating debtNote: Numbers may not add due to rounding

Page 30: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

29December 1, 2011

Management of Financial Matters between Fiat and Chrysler Group

• Chrysler Group and Fiat manage financial matters, including treasury services, separately

• Chrysler Group has no guarantee, support or similar obligations in relation to any Fiat financing obligations, nor does Chrysler Group have any obligation or commitment to provide funding to Fiat

• Financial segregation is also provided for by legally binding documentation

Agreements from Chrysler Group’s recapitalization transaction completed on May 24, 2011

Agreements referring to Chrysler Group’s recapitalization transaction also provides for significant limits on Chrysler Grop’s ability to provide financial support to Fiat, including limits on dividends that can be paid

Agreement from Fiat’s Revolving Credit Facility on Oct 13, 2011

Credit Agreement provides for relevant limits to ability of Fiat financially supporting Chrysler Group, including limits on guarantees and limits on financial loans

Page 31: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

30December 1, 2011

2010Actual

2011Revised Guidance

2012 2013

Net Revenue

Modified Operating Profit & 

Margin

Free Cash Flow

* Using mid‐point convention

Target met or exceeded

$42B >$55B  ~ $57.5B* ~ $62.5B* ~ $67.5B*

$0.8B >2.0B $3.0‐3.5B $3.8‐4.4B $4.7‐5.2B1.8% 3.6% 5.2 to 6.0% 6.1 to 7.0% 7.0 to 7.7%

$1.4B >$1.2B(from >$1.0B) 

$1B $1B $3B

2010‐14 Financial Targets from Nov 2009 Business Plan

‐‐‐‐‐‐‐‐Source: 4Q 2010 and 3Q 2011 Earnings Presentations, Chrysler Group 2010 – 2014 business plan outlined on November 4, 2009Note:  The financial targets set forth for 2012‐2014 are from our November 2009 business plan and have not been updated.  These targets are subject to a number of risks and 

uncertainties, including those under the "Forward‐Looking Statements" slide.  Accordingly, actual results may be materially different from those expressed above.

2014

Page 32: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

31December 1, 2011

Contacts

Chrysler Investor Relations

Timothy Krause phone: 248‐512‐2923email:  [email protected]

Fiat, Group Investor Relations

Marco Auriemma phone: +39‐011‐006‐3290email:  [email protected]

Websites

www.chryslergroupllc.com

www.fiatspa.com

Page 33: The to Global Carco - FCA Group€¦ · Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009 Six consecutive quarterly year-over-year

32December 1, 2011

Non‐U.S. GAAP Financial Information and Other Items

The following Non‐U.S. GAAP Financial definitions apply when the presentation is referring to Adjusted Net Income, ModifiedOperating Profit (Loss), Modified EBITDA, Cash, Free Cash Flow and Gross and Net Industrial Debt.

a) Adjusted Net Income is defined as Net Income excludingthe loss on extinguishment of debt in Q2 2011.

b) Modified Operating Profit (Loss) is computed startingwith net income (loss), and then adjusting the amountto (i) add back income tax expense and exclude incometax benefits, (ii) add back net interest expense(excluding interest expense related to financingactivities associated with a vehicle lease portfolio theCompany refers to as Gold Key Lease), (iii) add back allpension, other postretirement benefit obligations(“OPEB”) and other employee benefit costs other thanservice costs, (iv) add back restructuring expense andexclude restructuring income, (v) add back otherfinancial expense, (vi) add back losses and exclude gainsdue to cumulative change in accounting principles, and(vii) add back certain other costs, charges and expenses

c) Modified EBITDA is computed starting with net income(loss) adjusted to Modified Operating Profit (Loss) asdescribed above, and then adding back depreciationand amortization expense (excluding depreciation andamortization expense for vehicles held for lease)

d) Cash is defined as Cash, Cash Equivalents andMarketable Securities

e) Free Cash Flow is defined as cash flows from operatingand investing activities, excluding any debt relatedinvesting activities, adjusted for financing activitiesrelated to Gold Key Lease financing

f) Gross Industrial Debt is defined as total financialliabilities less Gold Key Lease financing obligations.Gold Key Lease financing obligations are primarilysatisfied out of collections from the underlyingsecuritized assets and out of collections from operatingleases and proceeds from the sale of leased vehicles.Net Industrial Debt is computed starting with GrossIndustrial Debt as described above, and deducting cash,cash equivalents and marketable securities