chrysler group llc sustainability report prequel

12
FOUNDATION FOR THE FUTURE

Upload: drew-wallace

Post on 06-Mar-2016

232 views

Category:

Documents


3 download

DESCRIPTION

The prequel to their much larger corporate sustainability report.

TRANSCRIPT

Page 1: Chrysler Group LLC Sustainability Report Prequel

foundation for the future

Page 2: Chrysler Group LLC Sustainability Report Prequel
Page 3: Chrysler Group LLC Sustainability Report Prequel

The fundamental values of a company rarely change year to year, even decade to decade. The very best, most respected companies in the world allow the values that define them to guide the way they conduct their business and achieve their goals.

Chrysler Group LLC’s lineage dates back to 1925, when Walter P. Chrys-ler first established his namesake automobile company focused on the values of engineering excellence and innovation. These core values have inspired the Company to create an incomparable number of sector and engineering firsts that have transformed the modern automotive industry.

In 2009, Chrysler Group formed a global strategic alliance with Fiat S.p.A., a company much like Chrysler with a long, rich history and strong propensity toward technological innovation for its products and produc-tion processes. Fiat brings world-class technology, platforms and power-trains for small- and medium-size cars, enabling Chrysler to add these environmentally friendly vehicles to its world-class product line.

Today, Chrysler Group designs, engineers, manufactures, distributes and sells Chrysler, Jeep, Dodge and Ram brand vehicles, and Mopar parts and accessories in more than 120 countries around the world. As part of the alliance with Fiat, the Company is also manufacturing and selling the Fiat 500 vehicle in North America. Headquartered in Auburn Hills, Michigan, Chrysler Group operates 33 manufacturing facilities in four countries and employs more than 52,000 people.

Our new Company is a reflection of Chrysler Group’s and Fiat’s shared values, as we both strive to be a responsible corporate partner in every community we serve. We are building a solid foundation and a sustaina-ble future by investing in our people, products and manufacturing facilities to support a more economically, environmentally and socially responsible approach to business.

All thAt we do is A result of who we Are

Page 4: Chrysler Group LLC Sustainability Report Prequel
Page 5: Chrysler Group LLC Sustainability Report Prequel

In 2010, Chrysler Group exceed-ed its projected financial objec-tives and signaled the continued transformation and rebuilding of the Company. The Company posted a Modified Operating Profit of $0.8 billion for the year, with Net Revenues of $41.9 billion. Cash at the end of 2010 was $7.3 billion, enabling continued invest-ment in new products as well as in building the value of our brands. Over the past 12 months, we have delivered on our commitment to launch 16 all-new or significantly refreshed vehicles. Chrysler Group’s worldwide sales increased 15 percent in 2010, outperform-ing worldwide industry sales. Our vehicle sales in the U.S. rose 17 percent compared with 2009, and market share improved from 8.8 percent to 9.2 percent. In Can-ada, our second largest market, sales grew 26 percent, with mar-ket share increasing to 13.0 per-cent from 11.0 percent in 2009. We realize that these successes and the achievement of our future objectives fundamental-ly rely on our commitment to economic, environmental and social sustainability.

PeRFORMANCe IS MeASUReD by MORe THAN JUST

HORSePOWeR

$0.8B MODIFIeD OPeRATING PROFIT

$41.9B NeT ReveNUeS

$7.3B CASH

9.2% U.S. MARkeT SHARe,

UP FROM 8.8% IN 2009

13% CANADIAN MARkeT SHARe,

UP FROM 11% IN 2009

1.5M TOTAL WORLDWIDe SALeS

2010 FINANCIAL ReSULTS

Page 6: Chrysler Group LLC Sustainability Report Prequel

Chrysler Group has a rich history of creating compelling products that appeal to a wide variety of consumer needs and tastes. In 2010, the Company launched 16 all-new or signifi-cantly refreshed vehicles. These vehicles repre-sent the first phase of Chrysler Group’s $23 bil-lion investment in engineering and capital to rebuild and expand our product portfolio and manufacturing infrastructure.

In addition, the Company invested approxi-mately $155 million in part to introduce World Class Manufacturing (WCM) principles in our manufacturing operations. WCM fully engages and empowers employees to eliminate waste and improve safety, quality and effi-ciency. Realizing our success will depend on the knowledge, creativity and dedication of our people to implement this program.

As part of our commitment to sustainability, Chrysler Group has also invested in the devel-opment of more fuel-efficient technologies. Our efforts are focused on five areas aimed at reducing fuel consumption and emissions: ve-hicle energy demand; engines; transmissions; axles; and alternatively fueled powertrains, such as flex-fuel, compressed natural gas, and hybrid and fully electrified vehicles.

In 2010, we introduced our new Pentastar v-6 engine in 10 vehicles, including the all-new 2011 Jeep Grand Cherokee. The Pentastar v-6 is the most technically advanced six-cylinder engine ever offered by Chrysler Group and im-proves fuel efficiency on average by 7 percent over predecessor engines. It is expected to be installed in 30 percent of Chrysler Group vehicles and will substantially contribute

to a planned increase in Chrysler Group’s over-all fuel efficiency.

With the production launch of the Fiat 500 in December 2010, we added a small, fuel-effi-cient engine from our partner Fiat S.p.A. to the lineup. The 1.4 liter four-cylinder Fiat Fully Integrated Robotized engine (FIRe), incorpo-rating Fiat’s MultiAir technology, delivers up to a 7.5 percent improvement in fuel economy and CO

2 emissions while enhancing perform-

ance. MultiAir technology will play an increas-ing role in our powertrain strategy as it is adapted to future Chrysler Group engines.

Two new fuel-efficient transmissions have also been announced: an eight-speed rear-wheel-drive automatic transmission that is expected to reduce fuel consumption by up to 12 percent and a nine-speed front-wheel-drive transmission that is planned to improve fuel economy by up to 11 percent.

Safety is a key component in the design of every Chrysler Group vehicle. Our vehicles help keep our drivers and passengers safe with a wide range of available features, such as Parkview rear backup camera, blind-spot Mon-itoring, Rear Cross Path Detection, Forward Collision Warning and electronic Stability Con-trol. The Insurance Institute for Highway Safety awarded seven of our 2011 model vehicles with the Top Safety Pick Award*, including the Chrysler 300, Chrysler 200, Dodge Charger, Dodge Avenger1, Dodge Journey1, Jeep Grand Cherokee1 and Jeep Patriot1. We’ve also spon-sored innovative safety programs such as SeatCheck, as well as a number of initiatives to address the issue of distracted driving.

*“TOP SAFeTy PICk” bASeD ON 31 MPH SIDe-IMPACT CRASH TeST, 40 MPH FRONTAL-OFFSeT CRASH TeST, 20 MPH ReAR-IMPACT TeST, ROOF STReNGTH TeSTING AND THe AvAILAbILITy OF eSC. TeSTS PeRFORMeD by THe INSURANCe INSTITUTe FOR HIGHWAy SAFeTy. FOR DeTAILS, vISIT iihs.org. 1 WHeN eqUIPPeD WITH OPTIONAL SIDe AIRbAGS.

IT’S IN OUR bLOOD. IT’S WHAT We DO.

Page 7: Chrysler Group LLC Sustainability Report Prequel

16NUMbeR OF veHICLeS THAT WeRe ALL-NeW

OR SIGNIFICANTLy ReFReSHeD IN 2010

Chrysler 200 Chrysler 300

Chrysler Town & Country Dodge Avenger

Dodge Journey Fiat 500

Jeep Compass Jeep Grand Cherokee

Jeep Liberty Jeep Patriot

Jeep Wrangler Ram Chassis Cab

Dodge Challenger Dodge Charger Dodge Durango

Dodge Grand Caravan

Page 8: Chrysler Group LLC Sustainability Report Prequel

THe PATH TO SUSTAINAbLe MObILITy

1999ePIC electric minivan offered, a second- generation battery-powered fully electric minivan with fast- charge technology and advanced nickel metal hydride batteries.

1992First full-line auto manu-facturer to introduce environmentally-friendly CFC-free refrigerants in all company products, beginning with Jeep Grand Cherokee.

2004First U.S. automaker to offer fuel-saving Multiple Displacement System technology with the HeMI® engine on the Chrysler 300, improving fuel economy up to 20%.

1993First U.S. automaker to begin conversion from solvent paints and prim-ers to high-solid water-borne paints and powder primers.

2002ISO 14001 certification earned by all Chrysler Group manufacturing facilities, ensuring continuous improvement in environmental performance through a robust environmental management system.

June 2009 Global strategic alliance announced with Fiat S.p.A., the automaker with the lowest CO

2

emissions in europe. Alliance provides Chrysler Group with access to Fiat’s small- and medium-size cars, as well as fuel-efficient engine technology.

Nov. 2009Five-year business planrevealed, including long-range product plan and commitment to improve fuel economy by 2014.

Jan. 2010The 2009 environmental Leadership Award (eLA) program recognizes CO

2 output reduction of

approximately 370,000 tons, roughly the annual CO

2 output equivalent of

four large manufacturing plants or 71,000 automo-biles operating on the road.

March 2010The Trenton South engine Plant becomes the first automotive engine manufacturing facility to receive U.S. Green building Council Leadership in energy and environmental Design (LeeD) Gold cer-tification, setting a new industry benchmark for automotive facility design.

March 2010Plans announced to design and produce a fully electrified version of the Fiat 500 for the North American market in 2012.

Page 9: Chrysler Group LLC Sustainability Report Prequel

2010Since 1998, more than 2 million Chrysler Group Flexible Fuel vehicles (FFvs) have been produced by Chrysler Group brands, capable of running on clean, renewable, American-made ethanol fuel, e85.

dec. 2010Production of North American version of Fiat 500 begins. The vehicle, equipped with advanced green technology including the 1.4-liter FIRe engine with MultiAir tech- nology, will be sold at approximately 230 dealers across the United States and Canada.

Jan. 201 1Chrysler Group and the U.S. environ-mental Protection Agency (ePA) an-nounce a partnership to evaluate adaptation of a hydraulic hybrid powertrain for large passenger cars and light-duty vehicles.

March 201 1Fiat brand records the lowest CO

2 emissions

rating in europe for fourth straight year.

March 2010Production of all-new Pentastar v-6 engine launched at Trenton South engine Plant. The Company’s most advanced six-cylinder engine will ultimately replace seven v-6 legacy engines.

May 2010Production begins of the all-new 2011 Jeep Grand Cherokee, the first of the Company’s 16 all-new or significantly refreshed vehicles to be produced under World Class Manufacturing (WCM). WCM contin-uously improves plant efficiency by reducing waste, advancing quality, increasing cost savings and improving the workplace environ-ment, all with a focus on safety.

April 2010Three-year alliance with NASA announced to share information related to advanced technologies, including materials engineering, robotics, radar, battery systems and other ener-gy-storage mediums.

oct. 2010Production of the Pentastar v-6 engine is celebrated at Saltillo, Mexico engine Plant. This new facility incor-porates many progres-sive environmental features, including a system of 1,900 solar cells which reduce CO

2

emissions by 7,500 tons and a wastewater treat-ment plant that saves 30 million gallons of water annually.

Nov. 2010Production of two new fuel-efficient transmissions in partnership with ZF Getriebe GmbH announced: a rear- wheel-drive 8-speed transmission expected to reduce fuel consumption by up to 12% and a front- wheel-drive 9-speed transmission expected to reduce fuel consumption by up to 11%.

Nov. 2010Production begins at Global engine Manufac-turing Alliance (GeMA) plant of new 1.4-liter four-cylinder Fully Integrated Robotized engine (FIRe) with MultiAir technology. This engine cuts emis-sions by 7.5% and im-proves fuel efficiency by 7.5%. The GeMA plant in Dundee, Michigan, is a zero-waste-to-landfill facility.

Page 10: Chrysler Group LLC Sustainability Report Prequel

$1.3B kOkOMO TRANSMISSION AND

CASTING PLANTS (INDIANA)

$600M beLvIDeRe ASSeMbLy PLANT (ILLINOIS)

$27.2M eTObICOke CASTING PLANT

(ONTARIO, CANADA)

$850M STeRLING HeIGHTS ASSeMbLy PLANT (MICHIGAN) AND TWO

MICHIGAN STAMPING FACILITIeS

$150M GLObAL eNGINe MANUFACTURING

ALLIANCe (GeMA) PLANT (DUNDee, MICHIGAN)

$179M INveSTeD IN GeMA TO LAUNCH 1.4-LITeR, 16-vALve FIRe eNGINe

INveSTMeNTS ANNOUNCeD SINCe

JUNe 2009

Page 11: Chrysler Group LLC Sustainability Report Prequel

Community involvement is part of Chrysler Group’s long tradition of being a good corporate citizen—one that is actively engaged in projects that make a positive, lasting impact in our commu-nities. The Chrysler Foundation, the philanthropic arm of Chrysler Group, has a long legacy of enriching the physical, educational and cultural needs of local communities in which Chrysler Group conducts business. The Foundation also supports a wide diversity of initiatives—from disaster relief programs to youth develop-ment efforts—and from major cultural programs to neighborhood groups engaged in improving social conditions. Since its inception in 1953, the Founda-tion has awarded more than $500 million in charitable grants.

In 2010, the Foundation donated $100,000, $50,000 each to Oxfam America and the United States Fund for UNICeF, to support humanitarian relief and recovery efforts in Haiti after that country’s devastating earthquake. Later in the year, the Foundation contributed $50,000 to the village of Dundee, Mich-igan, and another $50,000 to ISOH/Im-pact in Perrysburg, Ohio, for relief ef-forts following severe tornadoes that hit the two states.

While we have focused on transform-ing our Company and laying the ground-work for a sustainable future, our most valuable resource—our employees—has been instrumental in promoting positive change by volunteering their time and talents in the communities

where they live and work. Involved em-ployees have demonstrated in concrete ways what it means to be a good neigh-bor. They have collected and delivered food for community food banks, beauti-fied neighborhoods, built playgrounds in cities across the country, supported the U.S. Marines’ Toys for Tots campaign, joined the fight to save lives by register-ing for the National Marrow Donor Pro-gram and mentored at-risk children.

In addition, through the generosity of our employees, Chrysler Group’s 2010 U.S. and Canadian United Way cam-paign resulted in employee pledges of approximately $4.7 million. Chrysler Group is proud to support United Way’s mission to improve lives by mobiliz-ing the caring power of communities around the world to advance the com-mon good.

One of the most important ways we can positively affect our communities is to continue to invest in and promote a sus-tainable, stable Chrysler Group that contributes to the economic vitality of our communities. Since June 2009, Chrysler Group has made significant progress toward building a successful en-terprise, including numerous investments in our facilities, our people and in the cre-ation of jobs. In addition to the invest-ments listed at left, we have made signifi-cant investments in support of our new vehicle launches at the Jefferson North Assembly Plant (Detroit, Michigan), bramp-ton Assembly Plant (Ontario, Canada), Windsor Assembly Plant (Ontario, Can-ada) and Toluca Assembly Plant (Mexico).

THe CHRySLeR GROUP COMMUNITy DRIveS POSITIve CHANGe

$500MCHRySLeR FOUNDATION CHARITAbLe

GRANTS SINCe ITS INCePTION

Page 12: Chrysler Group LLC Sustainability Report Prequel

Chrysler Group LLC | 1000 Chrysler drive, auburn hills, Mi uSa 48326 | chryslergroupllc.comfor more information, please contact Chrysler’s sustainability group at [email protected].

this document printed april 2011.

Chrysler, Jeep, dodge, ram, Mopar and the Pentastar logo are registered trademarks of Chrysler Group LLC. fiat is a registered

trademark of fiat Group Marketing & Corporate Communication, S.p.a., used under license by Chrysler Group LLC.

Cert no. XXX-XXX-XXXX