Chrysler Canada
Reid Bigland
Chrysler Canada
Reid Bigland
Chrysler Group LLC 2010 14 Business PlanChrysler Group LLC 2010‐14 Business Plan
November 4, 2009
Chrysler Canada footprint 2009
Corporate Offices• Windsor Ontario Canada
Manufacturing Facilities• Windsor, Brampton, Etobicoke• Chrysler Canada manufacturing• Chrysler Canada manufacturing
Oct YTD production of 245k vehicles~33% of Chrysler’s North America production
Regional Offices• Montreal, Toronto, Calgary• Chrysler Canada sales
Oct YTD sales of 140k~12.5% of global sales
Parts Distribution Facilities
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• Montreal, Toronto, Red Deer
Canadian vehicle industry forecast
• Prior to 2009, Canadian industry
Canadian industry SAAR (millions of units)
yremained stable at 1.6 to 1.7M units
• In spite of H2 strength –2009 will be the lowest industry in over 10 years
• Chrysler Canada is forecasting a steadyforecasting a steady industry improvement through to 2014
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Chrysler Canada market share trend
Market share trend
• Chrysler Canada’s market share has stabilized in last six years athas stabilized in last six years at 13%
• Chrysler’s 2009 bankruptcy, plant shutdowns and financing p gchallenges have weighed heavily on our YTD share
• H2 2009 share is improving, with f i %FY forecast in 11.0‐11.5% range
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Canadian market segment breakdown
Mid Size Sedan 11%
Full Car 3%
Large Car 0.5%Specialty
2.0%
3 segment groups dominate
Full Size SUV 4.5%
Large SUV 0.5%
3 segment groups dominate Canada
• Small & Compact vehicles –
Small & Compact Vehicles
Mid Size SUV9%
Small & Compact vehicles 39%
• Pickup Trucks – 17%
Vehicles 39%
People M
• “People Movers” – Minivans & Mid/Full‐Size Crossovers –14%
Pick‐up Trucks17%
MoversMinivansCrossovers
14%
70% of Canadian market
14%
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70% of Canadian market
Chrysler Canada
Key to success
Product alignment
Fiat Group opportunitiesopportunities
Dealer networkDealer network
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Product alignment: Minivan
#1 selling Minivan in Canada for 25 consecutive years!
• Current segment share 70%
• Unmatched:• Unmatched:EconomyFunctionalityValue
• Awarded most dependable Van (J.D. Power 2009)Power 2009)
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Product alignment: Journey
#1 selling Crossover vehicle in Canada
• No. 1 seller out of 39 Crossover competitors
• Ultimate “Utility Infielder”• Ultimate Utility Infielder part:SUVCompact CarpMinivanAll Crossover
(• Top safety pick (Insurance Institute for Highway Safety)
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Product alignment: Ram Pickup
Ram 1500“Most Award Winning 2009 Truck”
#1 Growth Opportunity#1 Growth Opportunity
Ram 1500
• Received 17 “Best Truck” Awards
• Segment exclusive:
Multilink coil rear suspension
Most Award Winning 2009 Truck
Multilink coil rear suspension
Ram box storage system
In Floor storage bins
Most powerful V8Most powerful V8
Ram HD
• 2500 best in class hp and torque• 2500 best‐in‐class hp and torque
• Class exclusive diesel exhaust brake
• 6.7L Cummins diesel ‐ already 2010
i i li
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emissions compliant
Product alignment: Caliber, Compass & Patriot
• Largest vehicle segment in• Largest vehicle segment in Canada
• All new Caliber interior effective January 1 2010effective January 1, 2010
• Most fuel efficient SUVs in Canada
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Fiat Group Automobiles & Chrysler: 2008 global sales
ChryslerShipments
Fiat Group AutomobilesShipments (ex JVs)
2.2M units 2.0M units
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Source: Company data
Fiat Group opportunities: a perfect fit
2008 combined global sales = 4.2M units(shipments, ex JVs for FGA)
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Source: Company data
Strong dealer network
Chrysler Canada Inc. dealer count trend
R ti li dRationalized• 440 dealers
• All sell a full lineup of Chrysler, Jeep, Dodge & Ram vehicles
Profitable• 88% of dealers are profitable (Sep YTD ‘09)
• 25% Return on Investment (Sep YTD ‘09)• 25% Return on Investment (Sep YTD 09)
Growth & opportunity• Existing dealers continue to invest in their
facilities
• In the past 30‐days, 5 new dealerships have opened or announced their intent to open
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Target
Canadian industry, volume & share[units; percent]
2009E 2014E Delta
Total industry 1.48M 1.60M +8%
Chrysler volumes 166K 220K +33%
Market share 11.0‐11.5% 13.8% 2.5 ppt.
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