Pernambuco Project in Brazil
Betim Plant
•
Over 13 million vehicles produced
•
1 car every 20 seconds
•
6 body-in-white lines, 4 assembly lines
•
50,000 parts
•
18,000 people
Betim
Rio
We Need a Jeep Plant
•
Requires additional 250k annual capacity
•
Flexibility for multiple models
Betim
Rio
In 2010, Automotive Regime (1997) extended
and revised for a period up to 2020
(valid for existing local automotive producers)
Pernambuco
Pernambuco
Suape PortBetim
Rio Sao Paulo•
2% higher GDP growth than Brazil average
•
Major global companies already present
•
Suape is the most modern port in Brazil
•
4B R$ (1.3B €) investment
•
200k vehicles/year production
•
4,500 direct FCA employees
•
70% localization*
•
Localized R&D in the region at 2%
of revenue
The Deal
Our Commitment
(minimum)
Our Benefits
*parts and equipment localized in Brazil
Government Development Support
•
>12 million square meters of land donation
and partial site preparation
•
Direct and indirect infrastructure - utilities,
roads, and port
Economics
•
Subsidized financing from national
development banks for 80% of investment
•
Various tax incentives
including income tax reduction of 50%
(valid for local manufacturing in NE region)
The Industrial Plan
FCA’s largest single industrial project ever
FCA’s most advanced and efficient WCM plant
Production capacity of >250 k vehicles annually
On-site supplier park
Space protected to expand capacity
Development of 2
ndsupplier park
Plant Principles
•
Developed from extensive
company-wide WCM knowledge
•
>15,000 best practices leveraged
•
Focus on quality and logistics flow
•
“Team Leader” centered
organization
•
Layout guarantees space
protection for capacity expansion
when required
Communication Center is central hub
for physical results and rapid decisions
Communication Center
Metrology Lab
Simulation Room
Assembly Shop
Paint Shop
Technology
Press Shop
Body In White
People
MAIN PLANT EMPLOYEES: >1,000 at SOP / >3,000 by 2016
BETIM
PLANT
BENCHMARK
PLANTS
ON THE JOB
LOCAL
TECHNICAL SCHOOLS
SIMULATION CENTER
•
Basic technical development
(up to 1,000 per year)
•
Customized automotive
program
•
Knowledge transfer
•
Over 500 local employees
•
Operation training
Integrated Supplier Park
16
suppliers17
Product lines4,000
employees•
Supplier park provides 40% of total 80% localization in Brazil
•
Strategic components with high degree of vertical integration
Products
•
Multiple models industrialized, beginning with Jeep Renegade
•
Based on FCA standard architecture (small-wide)
2016
2015
Brazilians Already Building Renegades in Italy
•
100 future employees
currently training in Melfi,
Italy
•
Developing proficiency to
deploy a duplicate process
for launch in Pernambuco
•
Benefit from implemented
process improvements
Start of Production: Q1 2015
On Time
15Supplier
Park
Q3 2014
Plant
Q2 2014
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.
