APAC Region
Mike Manley
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
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
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%
APAC
APAC Region
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%
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
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
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
APAC
APAC Region
China Levers for Growth
1 Brand Development and
Expansion of Product Portfolio
2 Local Industrialization
3 Continued Development of
Distribution Channels
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
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
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
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
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
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
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
APAC
APAC Region
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)
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
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
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%
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
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
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
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
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
APAC
APAC Region
South Korea
Japan
Indonesia
Malaysia
Australia
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
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
APAC
APAC Region
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
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
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.
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