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Chrysler LATAM – MOPAR results Miguel Mercado Orlando, FL July 9-12, 2013

Chrysler LATAM – MOPAR results Miguel Mercado Orlando, FL July 9-12, 2013. AGENDA. Parts Net Sales After-Sales Balanced Scorecard Results Incentives Programs Service Contracts. Mopar parts net sales. J une 2013 YTD Chrysler LATAM Parts Sales*. * Excluding Argentina and Brazil.

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Chrysler LATAM – MOPAR results Miguel Mercado Orlando, FL July 9-12, 2013

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  1. Chrysler LATAM – MOPAR results Miguel Mercado Orlando, FL July 9-12, 2013

  2. AGENDA Parts Net Sales After-Sales Balanced Scorecard Results Incentives Programs Service Contracts

  3. Mopar parts net sales June 2013 YTD Chrysler LATAM Parts Sales* * Excluding Argentina and Brazil

  4. Mopar parts net sales June 2013 YTD Chrysler LATAM* – Rest of Latin America * Excluding Argentina and Brazil ** Bolivia has already placed a parts order by $48,000 USD = + 21%

  5. After-Sales Balanced Scorecard - Chrysler LATAM AFTER-SALES PERFORMANCE 100% TARGET 130% Maximum SERVICE Recalls → 10% RRTs → 10% Technical Training → 5% Business Training → 5% Service Facilities → 5% Essential Tools SRA → 5% PARTS Net Sales → 20% PNUR → 10% Order type → 5% Product Portfolio→ 5% Parts Facilities → 5% Parts Locator → 5% Mopar Marketing → 10% New KPIs for 2013

  6. Parts Net Sales Target achievement (June 2013 YTD) % TARGET 100% * Excluding Argentina and Brazil Source: Business Objects.

  7. Per New Unit Retailed (PNUR) Target achievement(June 2013 YTD) 450% % 350% + 6.8% * Total LATAM June 2013 YTD = 173 USD / Unit June 2012 YTD = 162 USD / Unit 250% TARGET 100% $ 210 USD Nicaragua * Excluding Argentina and Brazil Source: Business Objects and Cinonconnect.

  8. RECALLs Target achievement %(June 2013 YTD) Last 2 years excluding last 3 months. TARGET 80% Average International Recall Completion 54% * Excluding Argentina and Brazil Source: Global Recall System.

  9. Rapid Response Transmittal (RRTs) Target achievement %(June 2013 YTD) All available RRTs excluding last 3 months. TARGET 90% Average International RRTs Completion 43% Source: Field Connect. * Excluding Argentina and Brazil

  10. Overall Mopar performance per country – Chrysler LATAM % Minimum required by Chrysler LATAM 80% Average 77% Source: Business Objects, Cinonconnect, Field Connect, GWA, Global recall system.

  11. Incentives Programs We have 2 programs running for Latin America • Mopar International → • Colombia • Peru • Venezuela • Chrysler LATAM → • Costa Rica • DominicanRepublic • Guatemala • Honduras • Peru Winners in 2012 Winners in 2012 COMMERCIAL OPERATIONS INCENTIVE PROGRAM Note: In 2013 the Chrysler LATAM incentive program does not depend on the sales results.

  12. 2013 After-Sales AWARDS

  13. 2013 After-Sales AWARDS Grupo Q 3rd Place Honduras

  14. 2013 After-Sales AWARDS Diveimport S.A. 2nd Place Peru

  15. 2013 After-Sales AWARDS Reid & Compania S.A. 1st Place DominicanRepublic

  16. Overall Mopar performance per country – Chrysler LATAM % Minimum required by Chrysler LATAM 80% Average 60% Source: Business Objects, Cinonconnect, Field Connect, GWA, Global recall system.

  17. Service Contracts Frequently referred to as extended warranty.

  18. Service Contracts Impact of declining Service Retention for Mopar parts business (US data, 3Y basic warranty) Service Spend Increases With Vehicle Age Service Retention Significant Drop in Retention After Yr. 4 w/o SC Vehicle Yr. $198 $233 $324 $452 $570 $672 $655 $672 $696 Parts Consumption Service retention begins to decline as the vehicle ages and the customer must spend more to maintain the vehicle – a missed opportunity for Mopar

  19. Service Contracts Service Contracts helps retain customers within our dealerships With SC Service Retention W/O SC +7% Additional revenue +15% Repair cost 1Y 3Y 4Y 2Y 0Y 5Y

  20. Service Contracts Middle East data – Network Service Retention Great Opportunity to increase retention and profits • Middle East Service Retention = minimum 1 visit/year

  21. Service Contracts The Service Contracts offer several benefits for SALES, SERVICE and PARTS: Service Contracts

  22. Service Contracts in Dominican Republic

  23. Service Contracts in Dominican Republic

  24. Service Contracts for Chrysler LATAM It is the right time to implement the Service Contracts in our markets to ensure a positive trend of profits for the future. We need to offer these benefits to our customers to be more competitive against the competency. There is the possibility to add the Service Contracts KPI for next year in the After-Sales balanced scorecard.

  25. SUMMARY Even when we are on the way to achieve our targets this year, it is important to double our efforts for the second half of the year to keep going the positive trend and beat the competency. We need to implement new strategies to become a well recognized brand of Service, Parts and Customer Care in the region . The best choice for our customers must be Mopar.

  26. Chrysler LATAM – MOPAR results Miguel Mercado Orlando, FL July 9-12, 2013

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