2014 Sustainability Brochure

2014 SuStainability

1

“We have created a leading global automaker that is the 7th largest in the world. Even more importantly, we have created an organization that is

unique and rich with potential at the technical, professional and human level – 300,000 people around the world driven by the spirit and values of an

organization intent on distinguishing itself not only in terms of the excellence of its products, but also for the commitment, integrity and transparency with which it conducts its activities. The coming together of Fiat and Chrysler has

enabled us to intensify our sustainability-related activities by sharing best practices and leveraging our respective strengths.”

Sergio MarchionneChief Executive Officer

“Fiat-Chrysler continues in its commitment to responsible and sustainable development and achieved significant new milestones in the environmental and social areas. With completion of the integration of Fiat and Chrysler expected during the year, our commitment to sustainability will not diminish.The Group’s targets and long-term initiatives planned up to 2020 are a tangible sign of our desire to maintain this commitment in the years to come, wherever we are present.”

John ElkannChairman

(As of 31 December 2013)2

A global automakerGrowing and competitive

M A S S - M A R K E T A n d p R E M i u M B R A n d S

€87 billion in revenues

Fiat Group is an international auto group engaged

in industrial activities in the automotive sector.

The integration of Fiat and Chrysler confirms

the Group’s strength and competitiveness as

a leader in innovation with a global presence

and comprehensive product range. With annual

shipments of more than 4.4 million vehicles and

revenues of €87 billion, the numbers speak for

themselves. The Group’s technological edge is a

major component in its sustainability strategy. in

2013 alone, we invested around €3.4 billion on

research and development aimed at implementing

some of the most innovative and advanced

processes and products in the world.


1 responsible

global group

78 research and development

centers

18,700employees directly

involved in R&D

40countries

of operation

150national

sales markets

4.4 million vehicles

shipped

THE GROUPS T R O N G A N D R E S P O N S I B L E

159plants

225,600 employees worldwide

4operating regions (1)

15brands

L u X u R Y A n d p E R F O R M A n C E B R A n d S C O M p O n E n T S A n d p R O d u C T i O n S Y S T E M S

(1) The Group’s operations relating to mass market brand vehicles and related parts and services are run on a regional basis and attributed to four regions representing four geographical areas: NAFTA (U.S., Canada and Mexico), LATAM (South and Central America, excluding Mexico), APAC (Asia and Pacific countries) and EMEA (Europe, Russia, Middle East and Africa).


For Fiat Group, our commitment to sustainability

means putting the principles into practice every

day. Over the years, this approach has led to the

design and implementation of solutions that set

new standards in ecological and safe mobility. We

are committed to safeguarding the environment,

because it is our legacy to future generations.

Success requires the contribution of all of

us – 225,600 people around the world – who are

committed to the creation of lasting value. For us,

it is the natural choice...and the only choice.

A commitment to responsibility

1992 Fiat S.p.A. publishes first

Environmental Report

long-term sustainability commitments

engage customers in eco-responsible behavior

offer new services to improve the mobility experience

assess environmental and social impacts throughout the entire product life-cycle

focus on improving vehicle safety and quality

minimize environmental impacts related to the use of our products

increase competitiveness leveraging workforce diversity

reduce environmental impact of operations and transport

advocate social inclusion and development in local communities

foster a culture of health and safety

strengthen the relationship with customers at the global level

promote social and environmental responsibility among suppliers


SUSTAINABILITYO U R C O N C E P T O F T H E F U T U R E


We are in a race against time. Climate change

and the increasing scarcity of traditional sources

of energy require new approaches to mobility.

Fiat Group is addressing this challenge head-on

by ensuring individual freedom of movement with

maximum consideration for the environment

and local communities. Our system of corporate

governance is continuously evolving to incorporate

values, rules and procedures that reflect

international best practices. We strive to ensure

our production processes achieve increasingly

higher standards in environmental performance

and efficiency, supported by the implementation

of World Class Manufacturing (WCM), a best-in-

class system of manufacturing that encompasses

all plant processes. Our research activities are

focused on the development of fuel efficient,

low-emission products that contribute to the

achievement of sustainable, efficient and

accessible mobility.

Innovative solutions with lasting benefitsAt our plants, on the road and for the environment

~3,000 WCM projects generating

€70 million in savings

PRODUCTS


Our commitment to sustainable mobility is

founded on a balanced approach which takes into

consideration the achievement of these objectives:

Ecology in action

continued efficiency improvementsfor conventional

engines and transmissions

reduction

in vehicle energy demand

increased use of

alternative fuels

development of

emission-reducing

technologies

development

of alternative propulsion

systems

provision of economically viable and affordable

new sustainable mobility concepts


emission levels. in 2013, Fiat Group’s European

leadership was reconfirmed, with a natural gas

market share of more than 67%, corresponding to

more than 62,000 natural gas vehicles registered

(+15% compared with 2012), for almost 600,000

cars and commercial vehicles sold since 1997.

A fundamental aspect of Fiat Group’s vehicle

emission reduction strategy centers on the use of

alternative fuels. From natural gas to biofuels, the

objective is to offer technologies that are aligned

with the fuels available in the various markets, and

capable of resulting in an immediate reduction in

Making the world’s roads greener

12 natural gas models available in Europe

Punto Van Panda Van Fiorino Doblò CargoQubo DucatoPunto Panda YpsilonDoblò 500L 500L Living

Leader in Europe for natural gas vehicles

Fiat 500elaunched in the US

PRODUCTS


16%reduction in fuel consumption

with

up to

Building on our long experience in Europe in the

development of natural gas-powered vehicles, in

2013 the Group remained the only automaker in

the United States to offer a factory-built natural

gas pickup, the Ram 2500 Heavy duty CnG.

The Group’s first zero-emission Battery Electric

Vehicle for mass production, the Fiat 500e, began

production in 2012 for the uS market.

in Brazil, we sold 744,100 alternative fuel vehicles

(FlexFuel and TetraFuel) in 2013.

Fiat Group has invested in the eco:Drive system:

software offering personalized tips to drivers

based on driving style, to help them reduce fuel

consumption and emissions. eco:drive is currently

available in Europe, Brazil, the United States and

Canada for most Fiat and Fiat professional models.

By the end of 2013, more than 94,000 customers,

including 11,500 new users in 2013 alone, had used

the software, generating CO2 savings in excess of

5,800 tons/year.

Powered by

TM

3 more plants

achieved WCM gold level in 2013:

Pomigliano plant (Italy)Tychy plant (Poland)Tofas plant (Turkey)

WCM

(As of 31 December 2013)1 0

As a result of our continued focus on environmental

performance, 99% of Group plants are already

certified to ISO 14001, an international standard

for environmental management. Since 2010, we

have reduced CO2 emissions by 15.5% and energy

consumption by 14.2%. Water consumption in

2013 was reduced by 6.1% per vehicle produced.

Our plants are built and operated to be sustainable.

Sustainable manufacturing

98.8%of water recycled

Lower emissions

Less water

Less waste

PROCESSES

2.1 bnm3 of water saved at plants

in 2013 worldwide, equal to the flow over Niagara Falls for 13 consecutive days

-15.5% vs 2010 in CO2 emitted per vehicle

produced worldwide

CO2

-1,300 tonsof hazardous waste reduced in 2013

at plants worldwide, equal tothe weight of 500 hippos



For Fiat Group, sustainable mobility extends to

protecting drivers, passengers and other road users.

We are constantly in search of solutions to enhance

active and passive vehicle safety. But safety doesn’t

stop there. The Group also encourages responsible

driving behavior through the use of various in-

vehicle information systems and campaigns to

promote proper vehicle maintenance. To design and

deliver well-crafted vehicles, we monitor six different

types of vehicle quality. Our global quality process

incorporates not only customer feedback but also

benchmark performance comparisons to ensure we

understand both our customers’ requirements and

the competitive market.

Focus on safety and quality

5-stars received Maserati Ghibli

and Jeep Cherokee

2014 Top Safety Pick

Dodge Dart

Dodge Avenger

Chrysler 200 sedan

PEOPLE


Strength in diversity: the single most significant

asset of our Group is the diversity that comes

with being a global organization. Being able to

draw on and build from a vast wealth of cultures,

experience and know-how enables us to compete

at the very highest level in the global marketplace.

Teamwork and international collaboration provide

a solid platform for innovation. A strong, cohesive

and capable team leads to success.

225,600employees representing 63 nationalities

A tool for growthMaking a difference


EmployeesHealth

and Safety Training

4.2mnhours of training provided to

0.19 accidents per 100,000 hours worked: steadily decreasing for the past 7 years

Evaluation process completed for

100% of managers/professionals and 69%

of salaried employees worldwide

83,800employees in 17 countries have

access to job posting services

1.3 mnemployee suggestions

on improving production processes

186,000employees in 2013

PEOPLE


Customers Dealers Suppliers

-685 tons of CO2 in company-owned dealerships in Italy, equivalent to the gas needed

to fill 140 hot air balloons

26Customer Contact Centers

over110 mn km of travel around the world avoided through web-based

training of our dealership staff

22languages

24hroadside assistance

in 32 countries around the world

€44.5 bnin purchases for direct materials

€3.9 bn spent by Chrysler Group with

minority suppliers, representing 16.8%

of its total annual purchasing value in North America

PEOPLE


Local communities

€19.7mn donated

39%for educational

and cultural initiatives

25%for social welfare


Sustainability indices and ratings

Fiat S.p.A. at the top of the Italy 100 Carbon

Disclosure Leadership Index and Carbon Performance

Leadership Index

Dow Jones Sustainability Indices: one of the most prestigious equity indices, that only admits those companies judged best-in-class in the sustainable management of their businesses, from an economic as well as social and environmental perspective.

Carbon Disclosure Project: non-profit independent organization

that operates on behalf of 767 institutional investors managing assets amounting to $92 trillion and which holds the largest worldwide database on the actions taken by companies to mitigate climate change.

Vigeo: one of the leading European sustainability rating agencies that assesses the degree to which public and private companies take into account the environmental, social and governance aspects of their businesses.

ECPI: rating company that manages different types of indices devoted to Socially Responsible Investors who integrate non-financial information into their investment decisions.

FTSE ECPI Italia SRI: indices for the italian market aimed at describing the performance of companies that follow the highest standards of environmental, social and governance.

5th consecutive year,Fiat S.p.A. confirmed in the Dow Jones Sustainability World and Europe Indices


Making headlines

Fiat’s “Methane Program” is Ecobest 2013 for being

the simplest and most cost-effective solution with the lowest environmental impact among fuels available today

3.0-liter EcoDiesel V-6

and Fiat 500e Battery-Electric Drive System among Ward’s

10 Best Engines for 2014

The innovative 0.9 TwinAir Turbo bi-fuel natural gas-powered engine was

named “Best Green Engine of the Year 2013” one of the twelve categories

of the prestigious International Engine of the Year Awards

Ram 1500 named Motor Trend 2014 Truck of the Year for its fuel economy,

torque, style and amenities – the only consecutive

winner in the history of the award


2013

Fiat Professional named Light Commercial Vehicle Manufacturer of the Year

at the Green Fleet Awards 2013 for the second year in a row

City Brake Control given the

2013 award for advanced safety technologies

30 US dealerships honored

for eco-friendly operations

by Chrysler Group

Bielsko Biala plant in Poland presented with the prestigious

Automotive Lean Production Award 2013

About 730 GWh

of electricity saved within all company-owned dealerships in Italy


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2014 Sustainability Brochure

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