1. Joint architecture development programs 1 Opportunity and Constraints analysis Joint architecture development programs Nevio DI GIUSTO Vice President – Product Development

2. Joint architecture development programs 2  Platform development at Fiat on stand-alone projects  Platform development challenges  Benefits from a modular approach  Joint platform development programs  Barriers to overcome

3. Joint architecture development programs 3 PLATFORM DEFINITION AT FIAT FUNCTIONAL AREAS PLATFORM A PLATFORM B ………… ………… Dt A1Dt A2Dt A3 Dt B1Dt B2Dt B3 …………

4. Joint architecture development programs 4 MARKET OFFER MAINTENANCE A COMPREHENSIVE VISION OF THE WHOLE PROCESS The platform ensures a comprehensive vision of the whole process, participating in Supply Planning and then being responsible for “Impostazione”, Development and Maintenance of the product family MARKET OFFER - “IMPOSTAZIONE” / DEVELOPMENT MARKET OFFER - PLANNING PRODUCTS SERVICES

5. Joint architecture development programs 5 PLATFORM - PROCESS MAP = Process integration PLATFORM -120 -49.5 0+20-80 -41.5 MANUFACTURING “INNOVAZIONE” COMPONENTS DEVELOPMENT “IMPOSTAZIONE” / PLATFORM PRODUCT AND PROCESS development (Industrializzazione) MARKET OFFER PLAN (Strategic) SUPPORT PROCESSES PRODUCT MAINTENANCE LOGISTICS AND COMMERC. MARKET OFFER PLAN (Operational) TARGET SETTING OPERATIVO TARGET ACHIEVING PGP (“Piano Gamma Prodotti”) (TARGET SETTING STRATEGICO)

6. Joint architecture development programs 6  Platform development at Fiat on stand-alone projects  Platform development challenges  Benefits from a modular approach  Joint platform development programs  Barriers to overcome

7. Joint architecture development programs 7  Comprehensive approaches to platform development process may become “monolithic” and, if this occurs, they present many drawbacks  Since platform development scope should span over 2 vehicle lifecycles, an enhanced flexibility and modularity is helpful in  optimizing investment  reducing costs and engineering expenses  The need for flexibility is further enhanced with regard to joint architecture development programs, in which the partners wish to differentiate on subsystems that affect customers’ perception of the vehicle PLATFORM DEVELOPMENT CHALLENGES

8. Joint architecture development programs 8  Two ways of addressing modularity needs  Disentanglement of some portions of the process  P.S.C. (Component Development Platform)  “Impostazione” Process  Definition of a perimeter of systems/subsystems  that can be harmonized  that have enough flexibility to last for 2 lifecycles or - at least – capable to be easily adapted to future requirements PLATFORM DEVELOPMENT CHALLENGES

9. Joint architecture development programs 9 “Innovazione” “Impostazione” Development Maintenance Generation and Alternative Evaluation Process was anticipated to “Impostazione” phase PLATFORM PROCESSES

10. Joint architecture development programs 10 30% 100% Core entriesDerivatives Brand (out of scope) OTHER COMMON COMPONENTS First cycle Second cycle Vehicle value without powertrain ARCHITECTURE 35% JOINT PERIMETER DEFINITION

11. Joint architecture development programs 11 Brand/ Style Vehicles view Architecture CCD Other stand alone components Architectural Center Joint Team BrandCommon development (shared and specific) Development view Dominant (Hard) Tuning/Brand........ JOINT PERIMETER DEFINITION

12. Joint architecture development programs 12  Platform development at Fiat on stand-alone projects  Platform development challenges  Benefits from a modular approach  Joint platform development programs  Barriers to overcome

13. Joint architecture development programs 13 PRELIMINARE  Process  Corporate Culture  Language BARRIERS TO OVERCOME IN JOINT PROGRAMS

14. Joint architecture development programs 14 PROCESS VEHICLE LINE EXECUTIVE GM EUROPE  In some cases, vehicle development process re-design - that was underway in Fiat before the start of joint projects - helped the convergence on process  For instance the role of Platform director in Fiat was already aligned with the GME one  Nevertheless, process and standards alignment is still one of the main barriers that Fiat-GM joint development programs are currently facing  Role  Relationship with Functional Areas  Core Team  Process Integration “PLATFORM DIRECTOR” FIAT AUTO

15. Joint architecture development programs 15 PROCESS Workgroup 2 Program Organization Charts & Roles and Responsibilities Workgroup 3 Key Business Processes and Information Systems Workgroup 3 Key Business Processes and Information Systems Workgroup 1 Architecture Development Process & Timing Workgroup 1 Architecture Development Process & Timing Workgroups for Blue Book activities

16. Joint architecture development programs 16 CORPORATE CULTURE, LANGUAGE, ISP  Team building events, conducted with the support of Parent Co. HR departments, are helpful tools to share project members’ experiences  For Fiat-GM joint programs language represented a big issue;  Expatriates satisfaction