Qualitas 2016 Annual Strategy Meeting and Supplier Awards

QUALITAS 2016 ANNUAL STRATEGY MEETING & SUPPLIER AWARDS CEREMONY

Head of Purchasing & Supplier Quality, FCA – North America

Confidential Information – ©2016 FCA US LLC Agenda Corporate and Global Update Scott Thiele Supplier of the Year Awards 3rd Party Perspective from JD Power Jacob George Corporate Quality Update Scott Garberding Intermission North America Update Scott Thiele Industrialization Plan Steve Beahm Supplier of the Year Awards Product Design Ralph Gilles Supplier of the Year Award

My Background

Manager Director Global Commodity Buyer Supply Base Commodity Analyst Management Management

General Manager Director Director Director Global Raw Purchasing Product Cost & Global Technology Materials (2 Positions) Standardization

= Whirlpool Director Vice President Vice President Finance Global Product Global P&SQ (2 Positions) Finance = FCA

SERGIO MARCHIONNE Chief Executive Officer - FCA

164 40 238,162 84 €4.1B* PLANTS COUNTRIES EMPLOYEES R&D CENTERS INVESTMENT OF OPERATION IN R&D

* Includes Ferrari, Capitalized R&D and R&D Charged Directly to the Income Statement Confidential Information – ©2016 FCA US LLC Key Actions for Success: Meeting Business Plan Targets LATAM APAC NAFTA EMEA

. Localize and invest . Develop the GAC . Shift from cars to . Continue product in production FCA joint venture trucks and UVs in mix from Jeep and facilities: to support local the market Fiat 500 family Pernambuco and Jeep production in . Utilize existing Cordoba China . Invest in premium infrastructure to brands: Alfa Romeo . Increase exports out . Re-cadence accommodate long & Maserati of Brazil product launch range plan plans for Alfa Romeo Jeep Volume Targets Increased to ~2M Units Worldwide Key Actions for Success: Unique Brands and Products

Production in Windsor, Canada Production in Betim, Brazil

Chrysler Pacifica Chrysler Pacifica PHEV Fiat Mobi

Production in Cassino, Italy Production in Torino, Italy Production in Guangzhou, China

. Regulatory compliance planned through GLOBALLY OPTIMIZED CO2 new product technologies and COMPLIANCE PLAN architecture efficiency actions Battery / Electric Technologies: – Mild hybrid – 48V (2018) . Prioritizing vehicle efficiency – Hybrid Electric Vehicles (HEV/2008) improvements and powertrain – Plug-in Hybrid Electric Vehicles (PHEV/2016) technologies across all regions – Battery Electric Vehicles (BEV/2013)

. Leveraging global systems to incur the least amount of cost needed to comply

FCA IS WORKING TOWARDS BECOMING ONE UNIFIED TEAM

What does Aligning for Excellence mean for Group Purchasing?

What are we doing to work better together globally?

What are we doing to better align with you?

GLOBALLY ALIGNED MERGED TO OLD STRUCTURE TO ENGINEERING & SQ 4 DEPARTMENTS

BODY & METALLIC BODY M B B RAW MATERIALS INTERIOR & CHEMICAL INTERIOR C I I ELECTRICAL CHASSIS & ELECTRICAL CHASSIS E C C ENGINE SYSTEMS P POWERTRAIN E ELECTRICAL P POWERTRAIN

E ENGINE SYSTEM

P POWERTRAIN

Confidential Information – ©2016 FCA US LLC Global Group Purchasing Leadership NORTH AMERICA EMEA Scott Thiele Monica Genovese Chief Purchasing Officer Head of EMEA Group Purchasing Head of North America Purchasing & Supplier Quality . INTERIOR: Marlo Vitous . BODY & RAW MATERIALS: Marco Dalla Vedova . CHASSIS & ENG SYS: Doug Doran . ELECTRICAL: Marcello Bariani . POWERTRAIN ELECTRIFICATION: Paolo Sasso . CAPEX: Sara Lovera . POWERTRAIN: Fred Solomon . MOPAR: Marco Manavello . SERVICES: Jay Wilton . STANDARDIZATION: Leonardo de Toma . SUPPLIER RELATIONS & RISK: Sig Huber . SUPPLIER QUALITY: Tony Brenders . HUMAN RESOURCES: Daniela Antovski . FINANCE: John Patel LATAM APAC Antonio Filosa Larry Walker Head of LATAM Group Purchasing Head of APAC Group Purchasing

DESTINATION STATEMENTS: GROUP PURCHASING VISION 1. Perfect quality products and services that The efficient selection, management and enable FCA to exceed all corporate development of the world’s highest quality, best objectives. performing automotive supply base 2. Aligned commodity strategies across FCA and the supply base. 3. Fastest and most effective OEM sourcing process. 5 YEARS 4. All supplier relationships consistent with Foundational Principles. 3 YEARS 5. Maximized value by basing decisions on a fundamental understanding of total life 1 YEAR cycle cost. Foundational Principles

Commodity Strategy Creating common global strategies to source the best quality suppliers

Developing robust processes and tools that will allow more consistent and Supplier Relationship efficient business practices

Total Life Cycle Cost Reducing costs for FCA and suppliers by analyzing historical metrics

Minimizing risks by having more cross-functional engagement in the sourcing Quality process and additional time to complete testing and validation

Developments Complete In-Progress . Implemented commodity . Establishing one common methodology changes global material group Cross-functional process that . Trained production buyers . Launching a new supports long-term planning globally and provided commodity strategy system and improves supplier continuous mentorship . Providing enhancements to alignment . Aligned material groups the training and extending it globally and reduced the to engineering number of codes by 73%

Developments Complete In-Progress . Implemented pre-sourcing . Creating Cost Model processes that can reduce Element Agreements source selection time by up Allows earlier supplier to 11 weeks . Developing a common involvement in the product global source package development process, provides . Prioritized quality and process and automated consistency globally, and warranty within sourcing system increases transparency. decisions globally

Developments Complete In-Progress . Global agreement on . Development, testing and consistent operational validation of the new global measurement categories scorecard and weights More consistent performance . Launch strategy and measurement of global . Approved funding for communication plans suppliers implementation Anticipated Launch Q1 2017

Developments Complete In-Progress . Launched a Supplier Help . Developing strategies for Desk in North America and production schedule EMEA stability in all regions Advocates open two-way . Standardized the Supplier . Supporting packaging best communication and drives Advisory Council practices practice efforts efficiency . Rolled out the Foundational . Training employees and Principles globally suppliers on the Foundational Principles

Integrity Empathy & Advocacy

Mutual Transparency Sense of Urgency

Proactive Collaboration Continuous Improvement

Personal Accountability Long-Term Mindset

Following one path together for long-term success

1. Body Quality 11. Diversity Supplier Development – Production 2. Capital Equipment Quality 12. Diversity Supplier Development – Non-production 3. Chassis Quality 13. Foundational Principles – Logistics 4. Electrical Quality 14. Foundational Principles – Production 5. Engine Systems Quality 15. Foundational Principles – Non-production 6. Interior Quality 16. Innovation – Production 7. Mopar Quality 17. Innovation – Logistics 8. Powertrain Quality 18. Logistics 9. Raw Materials Quality 19. Supply Chain Management 10. Services Quality 20. Sustainability 21. Technical Cost Reduction 22. Tooling Analysis Group 23. Supplier of the Year

Award Selection Criteria

BASED ON 2015CY PERFORMANCE . Quality Awards: Top Quality/Warranty performance in each major commodity area – plus good External Balanced Scorecard (EBSC) in all 20% 20% other categories QUALITY WARRANTY . Other Awards: Criteria specific to each award – 20% 20% plus good EBSC in all other categories PARTNERSHIP DELIVERY . Self-Nomination Categories: Sustainability, Innovation & Diversity Supplier Development 20% COST . Supplier of the Year: Top Quality/Warranty and strong commitment to Foundational Principles – plus excellent overall EBSC

Supplier of the Year Mopar Quality Innovation – Logistics Brose Trico Products Corporation Ann Arbor Railroad

Interior Quality Services Quality Sustainability Summit Polymers Inc. Xerox Corporation Metalsa, S.A. de C.V.

Electrical Quality Capital Equipment Quality Diversity – Non-Production SiriusXM FANUC America Corporation Walbridge

Body Quality Tooling Diversity – Production Brose QCR Tech Henkel

Raw Material Quality Logistics Foundational Principles – Non-Production PPG Industries, Inc. AMPORTS Snap-on Business Solutions

Chassis Quality Supply Chain Management Foundational Principles – Production Piston Automotive Flex-N-Gate Bridgestone

Engine Systems Quality Technical Cost Reduction Foundational Principles – Logistics Mann + Hummel Iroquois Industries Inc. Cassens Transport Company

Powertrain Quality Innovation - Production Guangdong Hongtu Technology Co. Ltd. Prime Wheel Corporation

CUSTOMER FOCUS Scott Garberding Head of Quality FCA – Global & North America

Our goal is to design and build safe, high-quality vehicles that owners will be proud to recommend to their friends and family.

Earnings Sales Warranty

Confidential Information – ©2016 FCA US LLC We must develop new ways to improve Quality and create products customers want to purchase Align internally and partner with suppliers to: .Solve existing customer problems faster .Ensure that our vehicles meet customer needs & expectations

Expected reliability 49% . In addition, after purchase: Exterior styling 43% . People who have no problems are far more likely (81%) to Price/payment 42% recommend their vehicle to others, than those who have more than one problem (58%) Previous experience 42% . People who have no problems are far more likely (53%) to Reputation/reviews 38% repurchase their make, than those who have more than one Fuel economy/range 38% problem (29%) Safety 36% . For FCA: Ride and handling 36% . Many people do not consider FCA due to concerns about Quality of Workmanship 30% reliability (19%, as compared to industry: 14%) 4WD or All-Wheel 30% . Even after visiting an FCA store, a large number of consumers (10%) reject FCA due to these concerns

Source: 2016, JDPower IQS; JDPower VDS Quality Performance Congratulations! FCA is one of the most improved in the industry

Hyundai Motor Company 87 Toyota Motor Corporation 95 . Chrysler and Jeep are the most BMW AG 97 improved brands in the industry General Motors Company 97 (28pph) Nissan Motor Co, Ltd. 101 Ford Motor Company 102 Volkswagen AG 104 . However, there is still significant Industry 104 opportunity for improvement to Daimler AG 112 Rank #10 Fiat Chrysler Automobiles 115 reach industry average Mitsubishi Motors Corporation 116 Fuji Heavy Industries Ltd.… 118 . Longer term, FCA’s goal is to be Honda Motor Company 120 Mazda Motor Corporation 127 Up 5 positions in top quartile Jaguar Land Rover Limited 132 (17pph)

Volvo Car Corporation 152

Source: 2016, JDPower IQS; JDPower VDS Quality Performance About 40% of the problems experienced at 3 months continue to 3 years

Top 10 IQS problems at FCA: Top 10 VDS problems at FCA: 3 months of ownership 3 years of ownership VR Doesn't Recognize Commands 7.3 VR Doesn't Recognize Commands 8.6 Bluetooth/Mobile Issues 5.5 Bluetooth/Mobile Issues 7.6 Automatic Transmission – Hesitates 3.7 Automatic Transmission – Hesitates 5.1 Brakes are Noisy 2.5 Automatic Transmission - Shifts Roughly 5.0 Materials Scuff/Soil Easily 2.3 "Check Engine" Light Problem 4.9 Media Ports in Poor Location 2.1 Excessive Wind Noise 4.8 Automatic Transmission - Shifts Roughly 2.1 Exterior Light - Bulb Failed 4.5 Cup Holders – Difficult to Use 1.8 Brakes are Noisy 4.1 Radio Has Poor/No Reception 1.7 Water Leaks into Vehicle 3.9 Seat Materials Scuffs/Soil Easily 1.6 Exterior Molding/Trim – Falls off 3.4

“The transmission smoothness could be improved substantially.”

“RUSTED cross bar to which seatbelts attach and rusted frames on front seats.” “Brakes make a loud squeaking noise. It started at 3000 miles. Very annoying. Would like this to be fixed.”

Many of these issues require supplier participation to resolve

Source: 2016, JDPower IQS; 2016; JDPower VDS The Evolution of Quality The Changing Definition of Quality

Traditional Quality (things

broken) is being enveloped by Holistic Quality (vehicles not Warranty Cases aligned to consumer

expectations)

Malfunctions Traditional Quality Traditional (not brought to warranty )

Extended Quality Extended

Holistic Quality Holistic “Soft” Inadequacies (e.g. “There’s too much wind noise in the car”)

Vehicle not aligned to Customer Expectations

(e.g. “I can’t access my phone contacts easily”)

Source: 2016, JDPower IQS; 2016; JDPower VDS The Requirements of Quality Holistic Approach Needed

Supplier . Supplier’s have direct impact on consumer satisfaction, despite indirect relationship Direct . In addition this relationship has become stronger over the last 15 years with suppliers taking more Indirect responsibility for systems

OEM . 2015 has seen more recalls linked to supplier quality than ever before

Direct . Manufacturers need to meet VoC (Voice of Consumer) . Suppliers need to meet VoCC (Voice of the Consumer and Client) Consumer

Source: 2016, JDPower IQS; 2016; JDPower VDS The Requirements of Quality Suppliers must investigate VoCC to differentiate themselves

Gather Survey Data Analyze Survey Data Learn from Gain insights into VoC your performance and BIC: Listen feedback Best Executions

In-depth Interviews Focus Groups VoC insights into Understand

activities and concerns and Ask

vehicle interactions vehicle issues

Dealership-Customer Interaction Customer-Vehicle Interaction Observe Understand Look consumer stated consumer behavior needs and latent customer needs Source: 2016, JDPower IQS; 2016; JDPower VDS The Requirements of Quality Suppliers must support the comprehensive quality improvement approach

. Focus across Product Development, Manufacturing and Retail Top Tier . FCA has started a comprehensive Quality by 2018 approach, which will pay off in time if consistent efforts are maintained

Supplier

Product Production DTU Cycle Gateway System Training Reviews Assessments

1.0 2.0 3.0

Product Design Manufacturing Delivery System System Vehicle Systemic Defect/ Retailer Delivery Evaluations Malfunction Performance Resolution Support

Source: 2016, JDPower IQS; 2016; JDPower VDS QUALITY UPDATE Scott Garberding Head of Quality FCA – Global & North America

Our goal is to design and build safe, high-quality vehicles that owners will be proud to recommend to their friends and family.

. Designed . Engineered . Manufactured . Sold

NAFTA

EMEA APAC

LATAM

Top Goal: Top Quartile by 2018 Quartile TOP QUARTILE 2nd Quartile . Warranty 3MIS . J.D. Power Initial Quality Study (IQS) 3rd Quartile

4th Quartile

Confidential Information – ©2016 FCA US LLC Voice of the Customer Data Source J.D. Power Continuous Consumer Reports Parts Return Quality Insight Scores from Road Initial Quality Study, Analysis System Surveys Test, Safety and Vehicle Parts Reliability Dependability Warranty . 600 surveys/daily . Parts reviewed daily . Frequency varies . AnnualStudy, APEAL Warranty Claims . CQI is a licensed 3rd . Quality, Engineering, . party product which . Data used by Quality Data utilized and Supplier Quality and . 75000 claims / daily provide customer and Engineering to analyzed across the Suppliers review parts company . Quality Engineering, survey data on FCA identify areas of for issues to diagnose customer Supplier Quality, and investigate NTF vehicle at of a Suppliers, combination of dissatisfaction Manufacturing elements at 45 days, Service Quality reviews claims and 9MIS and 21MIS of Data Feed develops action plans ownership . Quality, Engineering Uconnect and Manufacturing . Continuous reviews survey data . Allows service to daily. Issues are access additional escalated through data about the Confidential Information – ©2016 FCA US LLC dedicated forums vehicle Quality Objective

Sales and Service

Manufacturing CUSTOMER SATISFACTION

Suppliers VOICE OF THE CUSTOMER Product Development

Confidential Information – ©2016 FCA US LLC Aligning for Excellence for Our Customers Product Development Supplier . Upgraded development testing & validation . Committed to ownership of methods customer claim reduction with direct . Realigned Customer Satisfaction Teams access to FCA data like warranty from Quality to Engineering (EWT) and Parts . Implemented over 470 product Return Analysis System (PRAS) actions across all programs . Focus on No Trouble Found in direct response to (NTF) 2015 IQS results Manufacturing Customer Experience . Mapped all J.D. Power & Customer . Fixed First Visit (FFV) Quality Insight questions to work . Total Cost of Ownership stations . Industry leading dealership tools & . Improve alignment of Customer Equipment Product Audit in the plants

Proactive Preventive Reactive

 Facilitate lessons learned  Mastering the understanding  Use Early Warranty Tracking sharing to eliminate and execution of PFMEA’s tool daily to continuously recurrence monitor the customer voice  Apply safe launch plans for  JD Power supported action additional process and  Focus on No Trouble Found plan to address competitive product control issues gaps  Address high DFMEA criticality  Containment  Increase product reliability items with design changes  Solve issues systemically and  Identify and implement  Use warranty data and work faster to resolution upfront design improvements analytics to understand to improveEXAMPLE quality emergingEXAMPLE issues EXAMPLE Partnering with suppliers to 191 Master PFMEAs with Traditional test methods may not develop a utilization model for thousands of lessons have enough detail implemented across all Service Quality Data Feed (SQDF) raw data Confidentialcommodities Information – ©2016 FCA US LLC Closing Remarks

Aligning for Excellence:

- Top Leadership must own Quality -

- Use preventive tools to avoid launch problems -

- Respond to problems with high urgency and stop the

flow of customer problems immediately -

- Use structured and rigorous methods to solve problems and ensure that root causes are eliminated -

Seats Weather Strips Approximately 75% of Speakers our vehicle content Cargo Area Pistons comes from suppliers

Great vehicles require Lights parts with best-in- Mirrors class quality, innovation and performance

Supplier Development Warranty Reduction

Processes Recall Execution

Supplier Development Warranty Reduction

Processes Recall Execution

FCA US Actions Supplier Impact Complete In-Progress Next

Rolled out newly branded Foundational Represents a commitment to long-term, mutually Principles to employees and suppliers beneficial relationships

Developed Foundational Principles training for Promotes consistent behaviors across the entire employees and suppliers enterprise

Re-launch One Voice initiatives Promotes consistent messages across the entire (e.g. cross-functional open issues meetings) enterprise

Removed individual production Created the Supplier Advocate Team in Aligned the Purchasing & buyer cost savings targets – teams conjunction with the Supplier Help Desk Supplier Quality organization with are managing cost goals 1,251 cases resolved Apr. – Dec. 2015 Engineering globally

MARLO DOUG MARVIN AMY VITOUS DORAN WASHINGTON SCOTT Interior & Chassis & Body & Raw Product Electrical Eng. Systems Materials Development Purchasing Purchasing Purchasing Purchasing

PAOLO FRED BRET SIG SASSO SOLOMON HARDY HUBER Powertrain Powertrain Mopar Supplier Electrification Purchasing Purchasing & Relations & Risk Purchasing Supplier Quality Management JAY TONY ANDRES KELLY WILTON BRENDERS CHAVEZ Services, Indirect LYNCH Supplier Quality Mexico Materials, & Capital P&SQ Purchasing & Equip. Purchasing Operations & Supplier Quality & Tooling Analysis Integrations Group (TAG) Confidential Information – ©2016 FCA US LLC = Global Lead North America Focus Areas

Supplier Development Warranty Reduction

Processes Recall Execution

Confidential Information – ©2016 FCA US LLC Process Improvements FCA US Actions Supplier Impact Complete In-Progress Next Tooling Payment Process: Enables faster payments by easing the (Changes implemented on July 14, 2016) tooling payment process for all Tooling • Minimized requirements for tool line up Purchase Order (TPO) line items not yet approval and tool markings complete • Simplified asset existence verification Production Schedule Stability: • Inventory reduction • Locking volumes two weeks out • Fewer release adjustments • Stabilizing shipping and delivery (pilot) • Improved schedule management • Launched global KPI metric • Consistent reporting across all plants Pre-Sourcing Process: • Launch on time • Engaged Supplier Quality and the suppliers • Contain issues faster earlier in the sourcing process • Introduce new technologies • Gave 10 weeks back to Engineering • Increase transparency & communication Reigniting the innovation submission process Allows for earlier commitment and better

adaptability to future market changes

Positive Press Reactions 2.5 Billion Media Impressions In-Market

Eyes On Design Award of Design Excellence

WardsAuto 10 Best Interiors List for 2016

Supplier Development Warranty Reduction

Processes Recall Execution

Supplier Capacity and Throughput Initiative . Established a new group dedicated to development activities only . Supported by cross-functional experts Continuous Improvement Goal: Purpose . Identify and resolve capacity constraints Improve Overall Equipment (Including those caused by FCA) Effectiveness (OEE) by 10% . Create a collaborative environment to improve throughput and prepare for volume changes . Monitor metrics to ensure long-term operational excellence and sustainable performance Confidential Information – ©2016 FCA US LLC Supplier Development Strategy

Collaborative

problem solving

Production stability and

continuous improvement Inefficiencies

Phase I Phase II

Time

Supplier State Supplier Capacity and Throughput Team Results • Capacity restraints • OEE improved from 56.5% to 77.5% in 7 weeks • High warranty return • Achieved a 77% downtime improvement • Chronic absenteeism • 44% reduction in changeovers • Plant running 7 days a week • Weekend overtime eliminated • Gage R&R improved from 31.1% to 8.5% • Warranty issue eliminated and poke yoked • Plant-wide read across implementation

OVERALL IMPROVED TEAMWORK THROUGHOUT THE SUPPLY CHAIN

Supplier Development Warranty Reduction

Processes Recall Execution

Mark R. Rosekind Ph. D. NHTSA is now overseeing a “record setting nearly 900 recall campaigns.” National Highway and Safety Administration

Industry Look at Total Recalls FCA US Recall Campaigns The number of U.S. vehicle recalls through the first seven months of 2014 and 2015 was higher than the same period of any other year

MARK R. ROSEKIND, PH. D. Administrator National Highway Traffic Safety Administration

When potential safety concerns do occur… • We expect a rapid response • Proactive engagement with FCA US and NHTSA • Notify FCA US about actual or potential safety issues • Adopt a “Fast Track” parts accumulation process • Prompt development of effective remedies Improving Customer Experience

Improving Completion Overall Recall Timing/Availability of Customer/Dealer Rates Remedy Effectiveness Parts/Service Efficiency Communications

Goals and metrics focused on Speed to Execution • Early supplier engagement • Expedited supplier kick-off • Reduced lead time/increased capacity for campaign parts • Execution of committed supply plans

CONCURRENT

Product Development & Manufacture & Customer Development Validation Accumulate Stock Experience

COMPRESSION COMPRESSION COMPRESSION (Proof of Concept & Prototypes) (Part Banking) (Targeted Launch)

Supplier Development Warranty Reduction

Processes Recall Execution

One Spill Can Tarnish

Consumer Confidence

Claims

Time Work Together to Prevent Customer and Plant Disruptions

Reduce Claims Reduce C/1000

2015 Total Warranty Score Reduce by CLAIM BASED 30%*

FCA US Actions Supplier Impact Complete In-Progress Next

Created a warranty playbook for SQEs and Demonstrates how to utilize the fundamental suppliers that supplements the CQI-14 manual warranty systems and data to attack and prevent warranty issues.

Offering more education and training to the Equips the SQEs with the resources to better Supplier Quality Engineers (SQEs): identify and resolve warranty issues. • Sharing lessons learned • Best practice forums • In-depth warranty training Assigned an executive sponsor to each of the Leadership provides support at the supplier highest warranty claim contributors location, attends monthly performance reviews, and assists with removing roadblocks.

Situation Root Cause A part was being replaced incorrectly by The service manual listed the incorrect technicians at the dealership causing resistance range compared to the design disruptions to customers specification resistance range Analysis Service Manual • Supplier reviewed the dealer technical information • SQE reviewed the Part Return Analysis System (PRAS) data Design Spec • The two systems showed different data 2.9 - 2.7 • PRAS data showed that the replacement parts were not solving the issue

Key Actions for Mutual Success:

. Communication – Seamless collaboration with consistent behaviors and messages

. Processes – Increase efficiencies through systems, processes, and innovation

. Supplier Development – Develop a robust strategy that anticipates changes

. Recall Execution – Proactively communicate potential safety concerns and act with a sense of urgency

. Warranty Reduction – Eliminate issues that affect the customer

Steve Beahm Head of Supply Chain Management FCA – North America

Units millions June CYTD 17.5M 20 17.8 17.8 18 17.4 17.1 16.5 16.8 15.9 16 Record 14.8 SAAR 13.5 14 13.0 11.8 12 10.6 10

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Passenger Cars as a % of Total Industry

60%

55%

50%

50% Segments Share Loss

-9ppts 45% Segment as as SegmentTotalofPercent Industry 41%

40% 2009 CY 2015 CY 5,312,014 +1,965,939 7,277,953 vehicles vehicles

UVs & Trucks as a % of Total Industry

60%

57%

Segments Share 55% Gain

+9ppts 50% 48%

45% Segment as as SegmentTotalofPercent Industry

Segment Trends

60% UV & Truck

57% Segments

55%

+9ppts

50% 50% 48% -9ppts 45% Segment as as SegmentTotalofPercent Industry 41% Passenger Car Segments

40% 2009 CY 2015 CY

Price of Dated Brent crude oil 125

100

50 Dollars/barrel 25

0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Current US dollars

Grand Cherokee Fuel Economy (highway mpg)

30 mpg +42% 21 mpg

2009 CY 2015 CY

Ram 1500 Fuel Economy (highway mpg) 29 mpg +45% 20 mpg

2009 CY 2015 CY

Honda Civic Fuel Economy (highway mpg) 41 mpg +20% 34 mpg

2009 CY 2015 CY

Toyota Camry Fuel Economy (highway mpg)

35 mpg 31 mpg +12%

Large Pickup LD Compact/Mid-Size Segments Segment Entries: 55 Entries: 6 Segment Size: 5.3M Segment Size: 1.5M Sales per Entry: 96K Sales per Entry: 258K 2015 2015

.Industry moving to Trucks/UV’s.

.Fuel prices projected to remain stable.

.Trucks/UV’s closed the gap on fuel economy.

.Crowded House in small/midsize Car vs. Truck and UV segments.

ADJUST OUR FOOTPRINT TO MATCH

Today Future • Toledo North • Belvidere • 2 Shifts • 3 Crews

Today Future • Toledo Supplier Park • Toledo North • 2 Shifts • 3 Crews

+75,000 units/year of Increased