The HARBOUR Report™ 2007 North America Press Release MANUFACTURING COMPANY BY COMPANY PLANT BY PLANT Contents 1 Harbour News 2 Industry Overview 3 Performance Data 4 Conclusions ©2007 Harbour Consulting. All rights reserved. 1 N.A. Market Share industry. the throughout gains productivity and flexibility by supported ofmodels widervariety a and more vehicles producing are Fewer plants impact in 2007. offsetwill a FordbuyoutsGM and losses, partially andbigger have volume done. be must more off,but pay to beginning is agreements competitive more through Flexibility morevehicles appealing. mone allows productivity labor Improved tostrengthen. continues productivity and quality between correlation The narrow. The gap among the sixmajorNorth automakersAmerica continues to per hours vehicle. 21.13 with productivity assembly vehicle in companies largest six the leads Honda GM captures 3of 4BestPlant awards. vehicle. (assembly, stamping, engine and transmission), using29.93 labor hours per Toyota leads the sixlargest competitors in total manufacturing productivity Percentages 14% 1989 51% 51% 15% 2006 29% 71% 24% 1989 61% 39% 17% 2006 33% 67% 34% 1989 67% 33% North American MarketShare American North 24% 2006 41% 59% y to be redirected to make future future tomake redirected tobe y 5% 1989 100% 0% 9% 2006 59% 41% Car Volume Volume Truck 5% 76% 24% 1989 Volume Car /Truck Car / Truck Volume Car /Truck 2006 Headlines ©2007 Harbour Consulting. All rights reserved. ©2007 Harbour Consulting. All rights reserved. 6% 2006 56% 44% 1989 & 2006 1989 & 2006 6% 1989 72% 28% 15% 2006 58% 42% 2 Capacity Utilization Range 148% 138% 124% 108% 98% 91% 100% 103% 88% 77% 93% 93% 77% 95% 79% 64% 51% 52% 27% ©2007 Harbour Consulting. All rights reserved. North American Pre-Tax Profit Per Vehicle Percent Change from 2005 $2,069 $1,575 -30% $1,581 13% $1,214 $1,368 $1,266 -20% $701 $226 ($50) ($1,072) -581% ($1,436) 43% ($5,234) -787% 2002 2003 2004 2005 2006 DCX / Ford / GM - data based on calendar year Currency Conversions: 108 Yen / 1.245 Euro Honda / Nissan / Toyota - data based on fiscal year ©2007 Harbour Consulting. All rights reserved. 3 Vehicle Assembly MANUFACTURING COMPANY BY COMPANY PLANT BY PLANT The Hours Per Vehicle (HPV) Measure Hours worked by all plant personnel Salary Direct Hourly Indirect Hourly All units produced ©2007 Harbour Consulting. All rights reserved. 4 History of Vehicle Assembly - HPV Hours Per Vehicle: Body, Paint, Trim, Chassis, and Final Assembly 28.04 26.14 Percent Change 24.44 from 2005 23.42 1.3% 23.19 2.5% 22.27 22.15 1.2% 21.83 22.05 -3.3% 21.13 1.4% 20.51 -8.3%* 16.83 2002 2003 2004 2005 2006 GM excludes Medium Duty plants. Honda and Toyota data include partial reporting of North American plants. * Nissan data estimated by Harbour with publicly available data ©2007 Harbour Consulting. All rights reserved. 2006 Company Assembly Labor Productivity Hours Per Vehicle (HPV) HPV 40 2005 2006 43.74 Companies not ranked due % = Percent change 2005 - 2006 35 to partial reporting of plants. 30 7.9% 6.0% 2.5% 1.3% 25 1.2% -1.8% 1.4% -3.3% -8.3%* 6.1% 26.48 8.4% 25.43 24.39 23.91 23.77 20 23.73 23.42 23.19 22.97 22.58 22.42 22.15 22.05 21.43 21.33 21.13 20.59 20.51 19.48 19.34 15 18.93 17.85 10 5 0 Industry Average Industry Average includes all companies. GM excludes Medium Duty. * Nissan data estimated by Harbour from publicly available data ©2007 Harbour Consulting. All rights reserved. 5 Top Ten Vehicle Assembly Plants *Hours Per Vehicle Oshawa #2 Allure, Grand Prix, LaCrosse 15.68 Oshawa #1 Impala, Monte Carlo 16.34 Kansas City #1 Escape, Mariner, Tribute 17.83 CAMI Equinox, Torrent, XL-7 17.85 Fairfax Aura, Malibu 17.89 Alliston#1 and ELP Civic, CSX, CR-V, Element 18.82 NUMMI Car Corolla, Vibe 19.00 Chicago Five Hundred, Freestyle, Montego 19.06 Lordstown Cobalt, G5, Pursuit 19.17 Georgetown #2 Camry, Hybrid Camry, Solara 19.77 * Ford Atlanta (15.24) not included due to plant idling in October 2006 ©2007 Harbour Consulting. All rights reserved. Plant Segment Ranking – Top 3 Compact Non-Premium Conventional Spring Hill ION 18.25 ELP/Alliston #1 Civic 18.53 NUMMI Car Corolla, Vibe 19.00 Midsize Non-Premium Conventional Atlanta Taurus 15.24 Oshawa #2 Allure, Grand Prix, LaCrosse 15.68 Fairfax Aura, Malibu 17.89 Midsize Non-Premium Van Windsor Caravan, Town & Country 21.95 St. Louis S. Caravan, Cargo Van Town & Country 24.71 TMMI East Sienna 24.73 ©2007 Harbour Consulting. All rights reserved. 6 Plant Segment Ranking – Top 3 Compact Non-Premium CUV CAMI Torrent 17.84 CAMI Equinox, XL-7 17.85 ELP CR-V 19.63 Midsize Non-Premium CUV Chicago Freestyle 20.25 Ramos Arizpe Rendezvous 21.95 Windsor Pacifica 23.92 Midsize Non-Premium Pickup NUMMI Truck Tacoma 19.84 Shreveport Canyon, Colorado, I-Series 19.93 Twin Cities B-Series, Ranger 21.05 ©2007 Harbour Consulting. All rights reserved. Plant Segment Ranking – Top 3 Midsize Non-Premium Utility Jefferson N. Grand Cherokee 19.88 Toledo North Nitro 20.11 Moraine Ascender, Envoy, Rainier 20.58 Large Non-Premium Pickup Fort Wayne Sierra, Silverado 21.34 Kansas City #2 F-Series 21.50 Norfolk F-Series 21.72 Large Non-Premium Utility Arlington Suburban, Tahoe, Yukon, Yukon XL 23.54 Newark Durango 25.99 Janesville Suburban, Tahoe, Yukon, Yukon XL 26.30 ©2007 Harbour Consulting. All rights reserved. 7 Stamping MANUFACTURING COMPANY BY COMPANY PLANT BY PLANT Stamping – Index Methodology Parts Per Parts Per Labor Hour Line 20% 10% Operating Hours Per 10% Die Change 40% 20% Parts Per Average Die Hour Changeover Time ©2007 Harbour Consulting. All rights reserved. 8 Stamping - Top Ten Plants Marysville Georgetown Cambridge East Liberty Princeton West NUMMI Toluca Silao Dearborn Belvidere ©2007 Harbour Consulting. All rights reserved. Stamping Measures By Company Parts Per Hour (PPH) Percent Change from 2005 803 1% 789 7% 764 709 687 1% 684 -3% 638 631 624 -16% 624 2002 2003 2004 2005 2006 ©2007 Harbour Consulting. All rights reserved. 9 Engine MANUFACTURING COMPANY BY COMPANY PLANT BY PLANT Engine Productivity Hours Per Engine 5.47 Percent Change 4.87 from 2005 4.59 3.6% 4.00 3.60 5.0% 3.44 4.3% 3.33 3.34 -2.3% 2.95 2.85 2.0% 2002 2003 2004 2005 2006 ©2007 Harbour Consulting. All rights reserved. 10 Top Ten Engine Plants - Hours per Engine Spring Hill 2.0L L4 L850 Turbo; 2.2, 2.4L L4 L850 2.27 West Virginia 1.8L I4, 3.3L V6 2.29 Dundee - GEMA 1.8, 2.0, 2.4L I4 2.68 Georgetown 2.4L L4, 2.4L L4 Hybrid, 3.5L V6 2.72 Flint South 4.2L I6 3.00 Lima 3.0 V6 3.01 Flint North 3.8L V6 3.16 Tonawanda 2.2L L4 L850; 2.8, 2.9L I4; 3.5, 3.7L I5; 3.5, 3.9 HVV6 3.17 Anna 1.8L L4 CNG; 1.8L L4; 2.0, 2.3, 2.4L L4; 3.0, 3.2, 3.5, 3.7L V6 3.34 Mack Avenue II 3.7L V6 3.38 ©2007 Harbour Consulting. All rights reserved. Engine Segment Comparisons - Top 3 8 Cyl OHV 6 Cyl OHV Lima 3.01 Romulus 3.21 Flint North 3.16 Saltillo 3.38 Kenosha 3.90 St. 3.46 Catharines 6 Cyl OHC 8 Cyl OHC Flint South 3.00 Mack Ave. I 3.61 West Virginia 3.03 Romeo 4.38 Mack Ave. II 3.38 Windsor 5.15 4 Cyl OHC West Virginia 1.69 Georgetown 2.08 Spring Hill 2.24 *Gasoline engines only ©2007 Harbour Consulting. All rights reserved. 11 Transmission MANUFACTURING COMPANY BY COMPANY PLANT BY PLANT Top 5 Transmission Plants - HPT Top 5 Plants Toledo 4L60E, 4L65E, 4L70E RWD 4-speed 2.54 Indiana #2 W5A580 RWD 5-speed 2.80 Ramos Arizpe 4L60E, 4L65E RWD 4-speed 3.36 Kokomo 42RLE RWD 4-speed, A604 FWD 4-speed, RWD Heavy Duty 3.36 Livonia 4R75W RWD 4-speed, 6R RWD 6-speed 3.40 ©2007 Harbour Consulting. All rights reserved. 12 Transmission Segment Comparisons – Top 3 FWD Kokomo 3.52 Van Dyke 3.87 Windsor 3.87 RWD Toledo 2.54 Kokomo 2.69 Indiana #2 2.80 ©2007 Harbour Consulting. All rights reserved. North American History - Total Hours Per Unit 40.60 39.95 Percent Change 37.14 from 2005 1.9% 35.10 34.54 2.4% 32.90 32.36 2.5% 31.63 31.22 2.7% 29.97 29.93 (5.3%)* 29.37 (1.8%) 2002 2003 2004 2005 2006 GM excludes Medium Duty. Honda and Toyota data includes partial reporting of North American plants. * Nissan data estimated by Harbour with publicly available data ©2007 Harbour Consulting. All rights reserved. 13.