Chrysler Group LLC Sustainability Report Prequel
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foundation for the future
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 LLCs 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 Groups and Fiats 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
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 Groups 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
$0.8B MODIFIeD OPeRATING PROFIT
$41.9B NeT ReveNUeS
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
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 Groups $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 Groups 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 Fiats 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. Weve 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.
ITS IN OUR bLOOD. ITS WHAT We DO.
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
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
emissions in europe. Alliance provides Chrysler Group with access to Fiats 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.
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