Less…is more! · Dante Giacosa (1960’s) September 15, 2009 IAA Investor & Analyst Conference -...
Transcript of Less…is more! · Dante Giacosa (1960’s) September 15, 2009 IAA Investor & Analyst Conference -...
September 15, 2009 IAA Investor & Analyst Conference - Frankfurt 1
Less…is more!
Harald J. WesterGroup Executive VP & Chief Technical Officer
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Developing products with excellence in speed, cost, quality, innovation
PRODUCT DEVELOPMENT
Group Engineering
Virtualanalysis
Standardizationstrategy
PRODUCT
Productagility
Leading-edge technologies
Safeguard of environment
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Physical prototypesModifications
Development costs Time-to-Market
MORE
Quality & reliabilityResponsiveness to market trends
Less is…more!
LESS
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Group EngineeringCentralized worldwide organization
Breaking-through new frontiers in product development process
Technology cross-fertilization
Job rotation
Culture of specialized competence centers
Complexity reduction & total quality control
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BRAZIL• Customization• Local applications• Excellence in body
design• Low-cost development
center
TURKEY• Customization• Local applications• Low-cost development
center
CENTRALIZED ENGINEERING & DESIGN• Know-how, standard methods, tools, product
concept• Component, technical solution & architecture
standardization• Series development / main applications• Excellence in safety, noise &
vibration, weight, consumption
CHINA• Customization• Low-cost development
center
INDIA• Customization• Local applications• Low-cost development
center
Research Center• Innovation• Methodologies• Intellectual
property management
Group EngineeringExtension of organizational model
Fiat Group Automobiles
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From page to screen
“Electronic brains will become fundamental to the creation of better
automobiles in the future”Dante Giacosa (1960’s)
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Frontload virtual development in technical concept definition phase
Enhancing multifunction
integration and optimization in
Technical/ Technological development
Developing integration with Manufacturing
virtual development, involving also
Logistics & Quality
Productconcept
Technicalconcept
Technical / Technologicaldevelopment Tooling Process
validation Pre-series Ramp-up
Kick-off BriefingStart of seriesdevelopment
Technical validation Job 1
Modellaunch
Productconcept Execution & realization Pre-series Ramp-upTechnical
concept
Product development processKey role of virtual analysis
FROM...
...TO
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Productconcept
Technicalconcept
Technical / Technologicaldevelopment Tooling Process
validation Pre-series Ramp-up
2 3 4 5 6 7 8 9 9.5 11 12 13 14 15 16 17 18 19 20 21 2322 24 25 26
• Significant changes in process organization in order to allow parallel phases of activities
• Integrated approach to marketing, engineering & manufacturing from earliest stage of development
• Early involvement of suppliers
1
13 Month2 3 4 5 6 7 8 11109 12 14 151
122 3 4 5 6 7 8 10 119 13 14 1615 17 181 Month
Month
Product development processBreaking-through new frontiers
Kick-off Briefing Start of seriesdevelopment
Technical validation Job 1 Model
launch
Stilo
500 Bravo
MiTo Delta
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Small Gasoline Engine
Current average competitor
development time about 36-40
months
28 29 30 Month
Product development processBest practice across Group Sectors
Case IH Small Frame Magnum
16-month development from program approval
vs. previous standard of 24
months
1917 18161514 20 21 22 23 Month24
14 15 16 Month
Month3129 3028 32 33 34 35 36 40
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Modular architecture
Powertrain
Additional common components
Total vehicle cost
Vehicle specific components
(model/branddifferentiation)
30-35%
25-30%
10-15%
25-30%
InvestmentDevelopment costs
Time-to-Market
MORE
Economies of scaleQuality & reliability
• Front & rear floors• Front & rear suspensions• Braking system• Steering system• HVAC• Front-seat structure• ...
• Airbags• Lighting• Brake disks• Instruments
• Engine• Transmission• Hot exhaust system• Gear shift
• Upperbody & closures• Interior trims, seat trim• Exterior trims• Dashboard• Front & rear lamps• Windows• ...
• Hinges• Locks• Sensors• ...
Standardization strategyTowards best practice in standardization, re-use & upgrade
LESS
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Standardization strategyCost benefits in C-Segment
R&D and Capex product-related spending
(index)
Maximizing standardization of components, re-use & upgrade
100
50
41
32
Fiat Stilo (2001)• All new components
Fiat Bravo (2007)• Architecture carry-over• Fully new upperbody &
interiors
Lancia Delta (2008)• Architecture carry-over• Fully new upperbody• Partial carry-over of
interiors
New Alfa C-Segment (2010)• Full architecture
review & upgrade• Fully new upperbody
& interiors• Integration of new
powertrains
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Less…is more!European benchmark
Industrial R&D expense*
(as % of Sales)
* Including R&D capitalized and R&D charged directly to P&L
Source: Fiat Group Annual Report; Goldman Sachs BMW, Daimler Group, PSA, Renault, VW
Fiat Group Automobiles (including FPT Powertrain Technologies)
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Large economies of scale required to enable continued investment in development of products and markets
1 million vehicles per architecture for mass-production vehicles
Standardization strategyVolume leverage
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Worldwide architecture standardization strategyIncluding partner volumes
Each of the 3 main architectures nearing or exceeding 1mn unit mark by 2014
Mini Small Compact
1 million units
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# o
f fa
mili
esComponent standardizationHVAC module example
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• High-volume architecture
• Volume leverage from component standardization
• Average savings for metallic, electrical & chemical components
Avera
ge s
avin
gs
Volume increase
Standardization strategyPurchasing efficiency range for single architecture (case study)
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B-Pillar in 2 components:FEE600 DP 2.0 mmTRIP 800 1.8 mm
Previous solution Standardized solution
B-Pillar in a single component:Hot pressed HSS 2.0 mm
Piece costsaving
(€)
Investmentsaving
(€)
Piece weight reduction
(Kg)
~25% ~40% ~25%
Archetype standardizationB-Pillar example
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4%
7%
16%
Hot pressed HSSFiat Grande Punto
Fiat 500
Fiat Bravo
Alfa MiTo
Archetype application & evolution
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MOREFuel economyPerformanceRoominess
Maneuverability/handling
Less is…more!
LESSWeight
Inefficient space & layoutEngine displacementEngine power losses
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Less is…more!
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Vehicleweight
Performance
“old” generation
“new” generation
Design optimization
New materials
Improved space
efficiency
Fiatresponse
Regulations
Contents
Engine downsizing
Historic trend
Product agilityWeight evolution scenario
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Fiat 500
Fiat Bravo
Alfa MiTo
-3%
-5%
-9%
Archetype application Evolution to lighter vehicles while same performance
Weight reduction vs. previous standard
Hot pressed HSSFiat Grande Punto
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Reversing current trend of increasing size without compromising space & comfort
Vehicle architecture
Product agility through space efficiency “Form follows function”
Minimization of front
package
Optimization of passenger
compartment
Optimization of rear package &
boot volume
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“The difference...makes the difference”
1987-91
1979-91
2008
2006
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Leading-edge technologies
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Diesel engines
MultiJet II offering reduced fuel consumption and emissions and enhanced acoustic comfort
Transmissions
New dry dual-clutch transmission providing improved fuel efficiency and driving comfort
New & upcoming powertrain innovations
Gas engines
MultiAir technology providing reductions of 60% in NOx and 40% in HC/CO emissions and significant improvement in fuel consumption and CO2emissions
New 2-cylinder, 0.9-liter family (65-105hp) representing excellence in downsizing with best-in-class power density and low-speed performance
• Equipped with MultiAir technology
• Available in naturally-aspirated, turbo-charged & CNG versions, ensuring optimum fuel consumption and CO2 emissions
2009
2010
2009
2010
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Hybrids
• Technology based on Dual Mode hybrid transmission (automatic transmission + 2 electric motors) developed by a consortium (Daimler, BMW, Chrysler, GM)
• Technology upgrade available in medium term
Electric
• GEM/Pea Pod: Family of small, low-speed vehicles with plug-in and recharge battery
• Plug-in Battery Electric Vehicle: Electric cars with 40 to 100 mile range and plug-in and recharge battery
• Available in medium term, technology for electric automobiles with recharging unit consisting of conventional engine and generator
Hybrid & electric vehicles Sharing new technologies between Fiat Group & Chrysler
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Best-in-Class sustainabilityA way of doing business which drives daily decision making at Fiat
Fiat S.p.A. is part of Dow Jones Sustainability World and Dow Jones Sustainability STOXX indexes
To continue in our commitment to maintaining high standards and improving performance, thereby contributing to the creation of long-term value for all stakeholders
2009 Industry score
Best
Fiat Group
Average
Economic
Environmental
Social
Best
Fiat Group
Average
Best
Fiat Group
Average
Best
Fiat Group
Average
Overall by Dimension
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…rapidly and efficiently bringing new products to customers matching market trends and
sustainability needs
We are...
This is the new FIAT
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Safe Harbor Statement
Certain information included in this document isforward looking and is subject to important risksand uncertainties that could cause actual results todiffer materially. The Company's businesses includeits automotive, automotive-related and othersectors, and its outlook is predominantly based onits interpretation of what it considers to be the keyeconomic factors affecting these businesses.Forward-looking statements with regard to theGroup's businesses involve a number of importantfactors that are subject to change, including: themany interrelated factors that affect consumerconfidence and worldwide demand for automotiveand automotive-related products; factors affectingthe agricultural business including commoditiesprices, weather, and governmental farm programs;general economic conditions in each of the Group'smarkets; legislation, particularly that relating toautomotive-related issues, agriculture, theenvironment, trade and commerce andinfrastructure development; actions of competitorsin the various industries in which the Group
competes; production difficulties, including capacityand supply constraints and excess inventory levels;labor relations; interest rates and currencyexchange rates; political and civil unrest; and otherrisks and uncertainties. Any forward-lookingstatements contained in this document are referredto the current date and, therefore, any of theassumptions underlying this document or any ofthe circumstances or data mentioned in thisdocument may change. Fiat S.p.A. expresslydisclaims and does not assume any liability inconnection with any inaccuracies in any of theseforward-looking statements or in connection withany use by any third party of such forward-lookingstatements. This document does not representinvestment advice or a recommendation for thepurchase or sale of financial products and/or of anykind of financial services. Finally, this documentdoes not represent an investment solicitation inItaly, pursuant to Section 1, letter (t) of LegislativeDecree no. 58 of February 24, 1998, or in anyother country or state.
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Fiat Investor Relations team
Marco Auriemma phone: +39-011-006-3290 Vice President
Vincenzo Torrisi phone: +39-011-006-2749Federico Donati phone: +39-011-006-2756Maristella Borotto phone: +39-011-006-2709
fax: +39-011-006-3796email: [email protected]
website: www.fiatgroup.com
Contacts