FPT 2010-2014 Plan - FIAT Industrial
FPT 2010-2014 Plan - FIAT Industrial
FPT 2010-2014 Plan - FIAT Industrial
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April 21, <strong>2010</strong><br />
<strong>FPT</strong> Powertrain<br />
Technologies<br />
Alfredo Altavilla
<strong>FPT</strong> Powertrain Technologies<br />
Lingotto 2006 <strong>FPT</strong> reasons why<br />
Our strategic<br />
objectives<br />
Technology leadership<br />
Process synergies<br />
Non-captive sales development<br />
April 21, <strong>2010</strong> Fiat Investor Day 2
<strong>FPT</strong> Powertrain Technologies<br />
Performance over last plan period<br />
Trading margin 2.7% 3.8% 2.4% (0.5)%<br />
Net revenues (€bn)<br />
2006<br />
2007 2008<br />
2009<br />
Net revenues (€bn) ~ 6.0 ~ 6.5 ~ 7.0 ~ 7.5<br />
Trading profit (€mn) ~ 160 180-230 280-340 320-380<br />
Trading margin 2.4-2.9% 2.8-3.6% 4.0-4.8% 4.2-5.0%<br />
Lingotto <strong>Plan</strong> Targets (Nov 2006)<br />
April 21, <strong>2010</strong> Fiat Investor Day 3<br />
Trading profit (€mn)
<strong>FPT</strong> Powertrain Technologies at a glance<br />
Key figures<br />
Revenues by application<br />
Revenues by customer<br />
Third-party<br />
customers<br />
& JVs<br />
Iveco<br />
Marine<br />
& Others<br />
1%<br />
Power<br />
Generation<br />
2%<br />
<strong>Industrial</strong><br />
2006 2008 2009<br />
€6.1bn Revenues €7.0bn Revenues €5.0bn<br />
€1.6bn Non-captive sales €1.5bn Non-captive sales €0.8bn<br />
Production Production<br />
2.8mn Engines 2.9mn Engines 2.5mn<br />
1.8mn Gearboxes 2.2mn Gearboxes 2.2mn<br />
0.3mn Axles 0.3mn Axles 0.1mn<br />
26%<br />
CNH<br />
26% 5%<br />
22%<br />
6%<br />
30%<br />
43%<br />
Heavy-duty<br />
FGA<br />
Passenger<br />
Cars & LCVs<br />
61%<br />
Iveco<br />
Marine<br />
& Others<br />
1%<br />
Power<br />
Generation<br />
2%<br />
Third-party<br />
customers<br />
& JVs<br />
<strong>Industrial</strong><br />
27%<br />
8%<br />
April 21, <strong>2010</strong> Fiat Investor Day 4<br />
31%<br />
7%<br />
CNH<br />
44%<br />
Heavy-duty<br />
FGA<br />
Passenger<br />
Cars & LCVs<br />
58%<br />
Marine<br />
& Others<br />
1%<br />
Iveco<br />
Third-party<br />
customers<br />
& JVs<br />
15%<br />
Power<br />
Generation 8%<br />
2%<br />
<strong>Industrial</strong><br />
16%<br />
17%<br />
Heavy-duty<br />
6%<br />
CNH<br />
63%<br />
72%<br />
FGA<br />
Passenger<br />
Cars & LCVs
Passenger & Commercial Vehicles<br />
Major achievements during last 4 years<br />
� New technologies transferred to production<br />
• Gasoline: MultiAir & TwinAir<br />
• Diesel: MultiJet II<br />
• Transmissions: Dual Dry Clutch Technology<br />
� New product launches<br />
• Gasoline: Fire T-jet, 1.8 Turbo GDI, E-torQ<br />
• Diesel: 1.9 Twin turbo, 1.6 Midsize diesel engine<br />
• Transmissions: new Manual 6 speed C635<br />
� International expansion<br />
• Supported FGA in India & China<br />
• Exploited BCC opportunities leveraging on local JVs<br />
...but...<br />
Development of non-captive sales down,<br />
mainly due to reduced GM activity (-75%)<br />
April 21, <strong>2010</strong> Fiat Investor Day 5
Passenger & Commercial Vehicles<br />
<strong>2010</strong>-<strong>2014</strong> goals<br />
Target<br />
• Leadership in CO 2<br />
emissions through new<br />
and cost effective<br />
technologies<br />
Action<br />
• Deployment of<br />
MultiAir & MultiJet II<br />
for diesel engines and<br />
MultiAir2 for gasoline<br />
engines<br />
• Continued<br />
development of<br />
alternative propulsion<br />
systems (CNG &<br />
hybrid)<br />
Delivering<br />
• Positive cash flow for<br />
each plan year with<br />
average EBITDA over<br />
plan period exceeding<br />
10%<br />
April 21, <strong>2010</strong> Fiat Investor Day 6
Passenger & Commercial Vehicles<br />
Leveraging on MultiAir & common-rail technologies<br />
� New breed of technologies to achieve CO 2<br />
reduction in combustion engines<br />
• 2 nd generation MultiAir technology<br />
• In-house development of advanced turbo-charging systems<br />
• MultiAir coupled with GDI technology<br />
� Extension of MultiAir technology to diesel engines combined<br />
with new IP in EGR control functionality<br />
Innovative MultiJet II servo-valve<br />
Multijet<br />
Multijet II<br />
Full deployment of MultiJet II<br />
� Digital injection rate shaping bringing<br />
• Up to 3% lower CO 2 emissions<br />
• Up to 20% lower NO x emissions<br />
� Greater accuracy in fuel injection<br />
quantity control<br />
• Noise and driveability improvement<br />
April 21, <strong>2010</strong> Fiat Investor Day 7
Passenger & Commercial Vehicles<br />
Small and hybrid Dual-Clutch Transmission<br />
New small Dual Dry Clutch Transmission<br />
� To extend dual-clutch transmission technology to A-B segments<br />
� To be the basis for a compact, low-weight and low-cost Hybrid Powertrain<br />
� Add-on option of baseline powertrain minimizing specific investments and<br />
R&D costs<br />
Base version<br />
Add-on<br />
electric motor<br />
Hybrid Small<br />
April 21, <strong>2010</strong> Fiat Investor Day 8
Passenger & Commercial Vehicles<br />
Hybrid powertrain concept for city-car<br />
24% reduction * of CO 2 emissions in urban driving cycle<br />
TwinAir turbo<br />
engine<br />
* When compared to base engine with manual transmission<br />
~80 g/km CO 2 in NEDC cycle<br />
~ 69 g/km CO 2 combined with CNG<br />
+<br />
New hybrid small Dual Dry<br />
Clutch Transmission<br />
April 21, <strong>2010</strong> Fiat Investor Day 9
Passenger & Commercial Vehicles<br />
Gasoline engine portfolio in <strong>2014</strong><br />
Power (Hp)<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Twin<br />
Air<br />
0.9L<br />
65-105Hp<br />
NA/TC<br />
Gas/CNG<br />
Fire<br />
1.0L-1.2L<br />
70Hp<br />
Gas/Flex<br />
0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0<br />
Engine family<br />
Under development<br />
Fire<br />
1.4L<br />
69-170Hp<br />
NA/TC<br />
Gas/CNG/Flex<br />
MultiAir 2<br />
1750 TC GDI<br />
200-235Hp<br />
Air-torQ<br />
1.6L-1.8L<br />
125-140Hp<br />
E-torQ<br />
1.6L-1.8L<br />
115-125Hp<br />
Displacement (L)<br />
Chrysler WGE<br />
2.0L-2.4L<br />
165-186Hp<br />
Chrysler<br />
Pentastar<br />
3.3L-3.6L<br />
273-288Hp<br />
NA: Naturally Aspirated TC: Turbocharged CNG: Compressed Natural Gas GDI: Gasoline Direct Injection<br />
April 21, <strong>2010</strong> Fiat Investor Day 10
Passenger & Commercial Vehicles<br />
Diesel engine portfolio in <strong>2014</strong><br />
Power (hp)<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
SDE<br />
1.3L<br />
75-85-95hp<br />
FGT/VGT/VGT<br />
1,0 1,5 2,0 2,5 3,0<br />
Engine family<br />
Under development<br />
Fam. B<br />
1.6L<br />
90-105-120hp<br />
VGT/FGT/VGT<br />
Displacement (L)<br />
Fam. B<br />
2.0L<br />
135-140-170hp<br />
FGT/VGT/VGT<br />
FGT: Fixed Geometry Turbine VGT: Variable Geometry Turbine<br />
V6<br />
3.0L<br />
225-250hp<br />
April 21, <strong>2010</strong> Fiat Investor Day 11<br />
2.8L<br />
197hp
Passenger & Commercial Vehicles<br />
Transmission portfolio * in <strong>2014</strong><br />
Gears Transmission<br />
6s<br />
5s<br />
Dual-clutch<br />
Automated<br />
manual<br />
(MTA)<br />
Manual<br />
Automated<br />
manual<br />
(MTA)<br />
Manual<br />
Under development<br />
Small DDCT<br />
C514<br />
C514 C510<br />
C514 C510<br />
C513<br />
C625 TCT<br />
Torque (Nm)<br />
C635 TCT AWD<br />
C635 TCT<br />
April 21, <strong>2010</strong> Fiat Investor Day 12<br />
C635<br />
M40<br />
M40<br />
* Ex transmission development plan for Chrysler<br />
TCT: Twin Clutch Transmission AWD: All Wheel Drive DDCT: Dual Dry Clutch Transmission<br />
Transmission<br />
Portfolio
Passenger & Commercial Vehicles<br />
Third-party sales development (engines & transmissions)<br />
€bn<br />
Non-captive sales development leveraging on technology<br />
leadership & extended product line-up<br />
Non-Captive<br />
24%<br />
From 2009 9%<br />
to <strong>2014</strong><br />
Captive<br />
~€0.3bn revenues<br />
Non-Captive<br />
~€1.6bn revenues<br />
95% already contracted<br />
91% 76% Captive<br />
April 21, <strong>2010</strong> Fiat Investor Day 13
Passenger & Commercial Vehicles<br />
Optimization of manufacturing footprint<br />
2,450<br />
Engines<br />
k units/year<br />
3,500<br />
4,550<br />
4,600<br />
2,300<br />
3,100<br />
5,100<br />
4,950<br />
April 21, <strong>2010</strong> Fiat Investor Day 14<br />
350<br />
Production JV production Installed capacity JV installed capacity<br />
Transmissions<br />
k units/year<br />
<strong>2010</strong> <strong>2014</strong><br />
<strong>2010</strong><br />
<strong>2014</strong><br />
normalized Harbour * capacity<br />
*100k normalized Harbour capacity becomes ~160k (18 shifts/week)
<strong>Industrial</strong> & Marine<br />
Major achievements over last plan period<br />
� New technologies transferred to production<br />
• Common rail technology introduced on heavy duty engines<br />
• Twin stage turbo technology on Light and Heavy Duty engines<br />
• Diesel hybrid powertrain on Light Duty vehicles<br />
� New launches<br />
• F5C: 3.2L 4-cylinder engine for off-road applications<br />
• Cursor 9: 6-cylinder engine with common-rail<br />
injection for Heavy Duty applications<br />
� International expansion<br />
• Set-up JV in China for industrial engines<br />
• Exploited sourcing opportunities leveraging on China JV<br />
• F1A localization in Russia under implementation<br />
• R&D centers established in Shanghai and Chicago<br />
� Original target for non-captive business (33%) achieved<br />
notwithstanding worldwide activity slump for sector<br />
April 21, <strong>2010</strong> Fiat Investor Day 15
<strong>Industrial</strong> & Marine<br />
<strong>2010</strong>-<strong>2014</strong> goals<br />
Target<br />
• Cost of ownership<br />
reduction through<br />
deployment of new<br />
and cost effective<br />
technologies<br />
• Increase in noncaptive<br />
business<br />
Action<br />
• Leveraging on<br />
proprietary SCR to<br />
reach cost and fuel<br />
efficient emissions<br />
• Extending MultiAir<br />
technology to diesel<br />
applications<br />
• Increasing in-house<br />
understanding &<br />
development of<br />
turbine technology<br />
Delivering<br />
• Positive cash flow for<br />
each plan year with<br />
average EBITDA over<br />
plan period exceeding<br />
10%<br />
April 21, <strong>2010</strong> Fiat Investor Day 16
<strong>Industrial</strong> & Marine<br />
<strong>FPT</strong> SCR technology<br />
� <strong>FPT</strong> SCR technology provides a very high NOx conversion efficiency<br />
(higher than 95% versus current 80-85%), due to advanced and<br />
proprietary control strategies<br />
� Possible to comply with current and future emissions limits without<br />
EGR, maximizing overall fuel economy<br />
� To further improve operating cost, when required, a light EGR<br />
(~10%) may be applied<br />
� Because of lower EGR amount<br />
• soot emission can be controlled mainly with DPF passive regeneration<br />
• no need to increase cooling power and modify vehicle cooling system<br />
HC<br />
PM<br />
CO<br />
NO X<br />
DOC<br />
DPF<br />
DOC: Diesel Oxidation Catalyst<br />
DPF: Diesel Particulate Filter<br />
Urea<br />
SCR<br />
EGR: Exhaust Gas Recirculation<br />
SCR: Selective Catalytic Reduction<br />
April 21, <strong>2010</strong> Fiat Investor Day 17<br />
N 2<br />
H 2O<br />
CO 2
<strong>Industrial</strong> & Marine<br />
MultiAir technology applied to diesel engines<br />
Combination of flexible internal EGR and dynamic air mass flow<br />
control yields 2-4% reduction in operating costs (both fuel and<br />
Urea)<br />
Diesel MultiAir<br />
electro-hydraulic actuator<br />
Cursor Heavy Duty engine<br />
diesel MultiAir<br />
April 21, <strong>2010</strong> Fiat Investor Day 18
<strong>Industrial</strong> & Marine<br />
Engine portfolio in <strong>2014</strong> (on- & off-road)<br />
Power (hp)<br />
900<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
F1<br />
2.3L-3.0L<br />
116-205hp<br />
WG/VGT/TST<br />
F5C<br />
3.4L<br />
53-115hp<br />
2 4 6 8 10 12 14 16 18 20<br />
Engine family<br />
Under development<br />
Cursor<br />
9L-11L-13L-16L<br />
360-757hp<br />
WG/VGT/TST<br />
NEF<br />
4.5L-6.7L<br />
81-320hp<br />
WG/VGT<br />
Displacement (L)<br />
WG: Wastegate VGT: Variable Geometry Turbine TST: Two-stage Turbo<br />
Vector<br />
20L<br />
768-870hp<br />
April 21, <strong>2010</strong> Fiat Investor Day 19
<strong>Industrial</strong> & Marine<br />
Development of transmission portfolio (Light Duty)<br />
<strong>2010</strong><br />
<strong>2014</strong><br />
Gears<br />
5s<br />
6s ML30<br />
6s<br />
Under development<br />
Light Duty Transmission<br />
Torque (Nm)<br />
April 21, <strong>2010</strong> Fiat Investor Day 20<br />
ML40<br />
ML35 ML40 ML50<br />
Transmission<br />
Portfolio
<strong>Industrial</strong> & Marine<br />
Development of rear axle portfolio<br />
<strong>2010</strong><br />
<strong>2014</strong><br />
Light<br />
Light<br />
Under development<br />
Medium<br />
Light SR<br />
Medium<br />
Light SR<br />
Medium<br />
HR<br />
Medium<br />
HR<br />
Heavy<br />
HR<br />
Rear axles<br />
Heavy HR<br />
Gross Axle Weight (ton)<br />
SR: Single Reduction HR: Hub Reduction<br />
April 21, <strong>2010</strong> Fiat Investor Day 21<br />
Transmission<br />
Portfolio<br />
Medium & Heavy Tandem<br />
HR<br />
Transmission<br />
Portfolio<br />
Medium & Heavy Tandem<br />
HR
<strong>Industrial</strong> & Marine<br />
Non-captive sales development<br />
Non-captive sales increase by leveraging on technology leadership &<br />
extended product line-up<br />
€bn<br />
From 2009 to <strong>2014</strong><br />
Captive<br />
Non-captive<br />
33%<br />
~€0.5bn revenues<br />
Non-captive<br />
47%<br />
~€1.7bn revenues<br />
75% already contracted<br />
67% 53% Captive<br />
April 21, <strong>2010</strong> Fiat Investor Day 22
<strong>Industrial</strong> & Marine<br />
Optimization of manufacturing footprint<br />
Engines<br />
k units/year<br />
April 21, <strong>2010</strong> Fiat Investor Day 23<br />
350<br />
Production Axle Production Installed Capacity Axle Capacity<br />
Transmissions<br />
<strong>2010</strong> <strong>2014</strong><br />
<strong>2010</strong><br />
<strong>2014</strong><br />
200<br />
k units/year<br />
*100k normalized Harbour capacity becomes ~160k (18 shifts/week)<br />
450<br />
350<br />
350<br />
normalized Harbour * capacity
<strong>FPT</strong> Powertrain Technologies<br />
Optimization of manufacturing footprint<br />
Production<br />
Engines<br />
k units/year<br />
April 21, <strong>2010</strong> Fiat Investor Day 24<br />
350<br />
2,500<br />
Axle Production Installed Capacity Axle Capacity<br />
Transmissions<br />
3,550<br />
k units/year<br />
5,450<br />
<strong>2010</strong> <strong>2014</strong><br />
<strong>2010</strong><br />
<strong>2014</strong><br />
*100k normalized Harbour capacity becomes ~160k (18 shifts/week)<br />
5,300<br />
normalized Harbour * capacity
<strong>FPT</strong> Powertrain Technologies<br />
Improvements in product competitiveness<br />
Combined crash programs<br />
to create a breakthrough in product cost by <strong>2014</strong><br />
Technical<br />
savings<br />
~€0.3bn run rate<br />
~2% yearly<br />
savings in<br />
direct material<br />
costs<br />
Commercial<br />
savings<br />
War Room<br />
Project<br />
~€0.3bn run rate<br />
~14% reduction in<br />
product costs from<br />
2013<br />
WCM<br />
efficiency<br />
improvement<br />
plan<br />
~€0.4bn<br />
run rate<br />
~8% yearly<br />
savings in<br />
manufacturing<br />
costs<br />
Total Expected Savings: ~€1.0bn run rate<br />
April 21, <strong>2010</strong> Fiat Investor Day 25
Financials<br />
Capex<br />
April 21, <strong>2010</strong> Fiat Investor Day 26
<strong>2010</strong>-14 Financial targets<br />
Nearly breakeven operating cash flow<br />
in <strong>2010</strong>; cash flow positive thereafter<br />
April 21, <strong>2010</strong> Fiat Investor Day 27
<strong>FPT</strong> Powertrain Technologies<br />
Our way forward<br />
INTERNATIONAL<br />
ALLIANCES<br />
LEADERSHIP IN<br />
COST EFFICIENT & INNOVATIVE TECHNOLOGIES<br />
CO 2 EMISSIONS<br />
FIRST-TO-MARKET<br />
COMPETITIVE ADVANTAGE<br />
TO CAPTIVE<br />
COMPANIES<br />
CONTINUOUS FOCUS ON OPERATING PERFORMANCE<br />
COST REDUCTION<br />
NON-CAPTIVE<br />
SALES DEVELOPMENT<br />
focused on major<br />
OEM’s<br />
CONTINUING OPTIMIZATION OF INDUSTRIAL FOOTPRINT<br />
April 21, <strong>2010</strong> Fiat Investor Day 28
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