Global External Balanced Scorecard (GEBSC) – Warranty 9/9/2018 Global External Balanced Scorecard (GEBSC) – Warranty Delivery Quality Cost Warranty

Warranty Measured by FCA Region NAFTA Supplier Warranty Agenda Global Measure Warranty Measured by FCA Region NAFTA Supplier Warranty Calculations and Parameters C/1000 & WIS Target & SAWRP Deductions Global EBSC for Warranty 2

The Global External Balanced Scorecard (GEBSC) Global Measure Delivery Quality Cost Warranty The Global External Balanced Scorecard (GEBSC) Warranty is now 30% of the overall supplier GEBSC rating 3

Warranty Measured by FCA Region Supplier Name – Location Code EMEA Field Actions (y/n) LATAM NAFTA EBSC - Warranty APAC Out of scope GLOBAL Supplier Name and Location Code Score is based on Service or Recall Campaigns Score is based on Service or Recall Campaigns Score is based on SAWRP targets and deductions for Recalls, Customer Satisfaction Notifications, Rapid Response Transmittals, or Forever Requirements Violations APAC is not in scope for phase 1 Global score is calculated by taking a straight average of the Regional scores 4

Deduction for each Warranty campaign Warranty Measured by FCA Region - EMEA & LATAM EMEA: Warranty Score is Deduction for each Warranty campaign EMEA & LATAM Deduction for Service Campaigns (customer initiates the service) or Recall Campaigns (FCA notifies customers to repair vehicles)

Warranty Measured by FCA Region - NAFTA C/1000 3MIS vs. target - Deductions (Recall, CSN, RRT, FRV) Notes: Warranty Final Monthly Score Range: 0% through 100% Calculations: Warranty Score = 1− Actual C 1000 − Target 0.5 1− Actual C 1000 − Target 0.5 × 100 Warranty Final Monthly Score = Warranty Score - (deductions ) Deductions= Recalls & CSNs are based on Percentage of Supplier Responsibility determined by the Warranty Recovery Group. RRTs & FRVs are a 10 point deduction per occurrence. All deductions remain on scorecard for a rolling 6 month period.

NAFTA Supplier Warranty Supplier associated warranty measured Vehicle requires service Supplier’s component part is replaced and identified as the failed component on the warranty claim Performance (C/1000) is measured in the Warranty Information System (WIS) Warranty parameters Months in Service (MIS) Vehicles built and sold within 90 days Vehicles repaired in the first 3 months of service Retail vehicles only USA sold vehicles only SAWRP is an Associated Warranty measure. This means that the claim, based on part number, is measured regardless of responsibility. The performance is measured in the Warranty Information System (WIS) under these specific parameters. 7

FFR* = 1− Actual C 1000 − Target 0.5 × 100 – (deductions ) NAFTA Supplier Warranty - Calculation NAFTA Supplier Monthly Warranty Measure – by Supplier Manufacturing Location Code (SMLC) and Commodity Code (LCC). 2017 Calculation  FFR* = 1− Actual C 1000 − Target 0.5 × 100 – (deductions ) *FFR = Fulfillment Rate, a whole number between 0 & 100 This is the formula used to calculate the Fulfillment rate used to populate the EBSC Warranty Score. The details of the calculation are explained in the following slides. 8

NAFTA Supplier Warranty Calculation - C/1000 This is the formula used to calculate the Fulfillment rate used to populate the EBSC Warranty Score. Use the Warranty Information System (WIS) to view current C/1000 data. Use the Supplier Associated Warranty Reduction Program (SAWRP) system to view the monthly C/1000 data which will match to GEBSC. 9

C/1000 Parameters used in WIS (Warranty Information System) This is a representation of the parameters used in the Warranty Information System (WIS). To review the current performance, enter the Supplier Manufacturing Locations Code (SMLC) and report by the Local Commodity Code (LCC). Once all the parameters are entered, use the C/1000 tab to query the data. Your SMLC 10

Click the C/1000 tab to view your current C/1000 Example LCC (99AZ) Your SMLC This is a copy of the results page from the query. Note that the C/100 tab is highlighted, the Report MIS and the current C/1000 performance for the specific LCC. 11

NAFTA Supplier Warranty – Target Use the Supplier Associated Warranty Reduction Program (SAWRP) to view Target data. 12

Target-setting Methodology for MY 2017 Establish the Local Commodity Code (LCC) set of suppliers. Determine the 2015 and 2016 Year End C/1000 for each supplier. Average the Best of the Prior two years Actuals (removing the highest). Apply the Improvement Factor to calculate the target for the LCC. If a warranty target increased from 2016MY to 2017MY, the warranty target will default to the 2016MY target. 13

Targets in SAWRP (Supplier Associated Warranty Reduction Program) Click the “Supplier Target” tab at the top then click “Supplier Target” on the left. Optionally pick a Supplier Code, Model Year, or MIS then click “Show Report”. C/1000 is the monthly data used for GEBSC. The Target value remains constant for the year. This is a copy of the Supplier Target Screen which is available to suppliers from the eSupplier Connect Portal via the Warranty Recovery Programs application. SAWRP “Supplier Target” screen is available through the Warranty Recovery Programs site in eSupplierConnect If this site is not visible in your “My Applications” list, you will need to ask for it in “Request Applications” 14

NAFTA Supplier Warranty – Deductions Use GEBSC to view the deductions. 15

Deductions Recall Customer Satisfaction Notification (CSN) Initiated by NHTSA, percent of supplier responsibility determined by Warranty Recovery Case. Customer Satisfaction Notification (CSN) Initiated by FCA, percent of supplier responsibility determined by Warranty Recovery Case. Forever Requirement Violation (FRV) Initiated by FCA for suppliers lack of response to Part Return Analysis requirements. Rapid Response Transmittal (RRT) Initiated by FCA to correct field concerns, at dealer locations, prior to the sale of the vehicle. These are the 4 deductions used in the EBSC Warranty Score calculation. Note that these situations are NOT measured in the general SAWRP parameters which is the reason for the deductions. 16

Deductions Details Recall & CSN Issued in the current calendar year. Identified in a monthly notification by Warranty Recovery. Percent deduction, based on percentage of supplier responsibility as determined by the Warranty Recovery case. Maximum deduction is 100%. Supplier EBSC Warranty Score = 0%. Deductions persist for 6 months after the initial deduction. RRT & FRV Identified by review of RRT & FRV databases on a monthly basis. 10 point deduction per occurrence. Deductions persist for 6 months after the initial deduction. 17

FFR* = 1− Actual C 1000 − Target 0.5 × 100 – (deductions ) NAFTA Supplier Warranty Review NAFTA Supplier Monthly Warranty Measure - Review 2017 Calculation  FFR* = 1− Actual C 1000 − Target 0.5 × 100 – (deductions ) *FFR = Fulfillment Rate, a whole number between 0 & 100 This is the formula used to calculate the Fulfillment rate used to populate the EBSC Warranty Score. The FFR can not be less than zero or over 100%. The deductions will be discussed in a later slide. 1. Use the Warranty Information System (WIS) to view current C/1000 data. 2. Use the Supplier Associated Warranty Reduction Program (SAWRP) to view actual C/1000 and Target data used for GEBSC. 3. Use GEBSC to view deductions and all scorecard details. 18

GEBSC - Viewing the Warranty details In eSupplierConnect, login to the Global External Balanced Scorecard. Choose “By Location”. Current Year and Month are defaults, but can be changed. Choose “NAFTA”, “Production”, and “By Location/Material Group”. Type or pick your Supplier Manufacturing Location Code (SMLC) or Material Group Code (also known as Commodity Code or LCC) as necessary. 19

Viewing the Warranty details of the Global Scorecard (con’t) 6. Click the Warranty Score (underlined number). 7. Click the “Detail Reports” tab at the top. 8. Click “Warranty” in the box and the details will be displayed – there is a “YTD View” to see all months. 20

Please contact the Supplier Quality Warranty team Questions ? Please contact the Supplier Quality Warranty team at SQWARR@fcagroup.com 21