BILL MAY GM Spring Hill Manufacturing
GM SPRING HILL MANUFACTURING 1,800+ employees 5 business units Stamping Paint/Polymers Vehicle Interior Systems Powertrain Assembly 6.9 million sq. ft. 2,100 acres
2011 ECONOMIC IMPACT Payroll $104 million Payroll Taxes $19 million Property Taxes $1.7 million
RECENT INVESTMENTS ANNOUNCED INVESTMENTS OF $759 MILLION SINCE SEPT. 17, 2010 CREATED OR RETAINED 2,427 JOBS
External Customers External Customers LGE Engine VEHICLE INTERIOR SYSTEMS Interiors Injection Molding and Sub-assembly Spring Hill Complex Operations Detail Engine Dress Chassis Final Security External Customers Facilitie s Fascia Injection Molding External Customers Spring Hill Regional Stamping Door Subassembly ASRS Fascia Paint L850 Engine Chassis Trim Main Paint Body Shop Medical Elpo / Phosphate External Customers GENERAL ASSEMBLY 6
STAMPING Current operations 5 Transfer presses 2 Blanker presses Ship parts to 6 plants
STAMPING CUSTOMERS
COMPONENTS Ship 35 molded commodities to LDT daily for the Chevrolet Traverse Current Operation VIS: 15 injection molding machines Polymers: 24 injection molding machines 9 assembly machines Fascia paint line
VIS INTERIOR AND EXTERIOR PARTS
POLYMERS EXTERIOR PARTS
COMPONENTS CUSTOMER
CURRENT-GENERATION ECOTEC ENGINE 4 products produced: cylinder block, cylinder head, crankshaft, camshaft >200 machines and part handling devices March 23, 2012 produced 3 millionth engine
CURRENT-GENERATION ECOTEC PRODUCTS 2.0L Turbo 2.4L Direct Injection
ECOTEC 2.0 LITRE TURBO 2012 Ward s 10 Best Engine Winner With 270 hp and 295 lb.-ft. (400 Nm) of torque, this mighty mill is the most power-dense engine ever certified by the Society of Automotive Engineers.
CURRENT-GENERATION ECOTEC CUSTOMERS
ALL-NEW ECOTEC ENGINE BENEFITS Improved fuel efficiency Reduced noise and vibration Improved packaging (i.e. shorter length) New engine architecture to accommodate new vehicle architectures (i.e. front exhaust in transverse applications, etc.)
ALL-NEW ECOTEC CUSTOMERS
SPRING HILL ASSEMBLY Announced Nov. 21, 2011 $61 million investment/685 jobs First Product = Chevrolet Equinox Not traditional assembly plant Production based on customer demand or manufacturing need Second investment of $183 million for future midsize vehicle with 1,196 jobs. Timing not announced.
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U.S. Manufacturing Don Stoegbauer, Director Paint & Plastics Canton, MS Plant
U.S. MANUFACTURING Smyrna, TN Canton, MS Decherd, TN
U.S. MANUFACTURING Smyrna Vehicles Altima Infiniti JX LEAF Maxima Pathfinder Rogue
U.S. MANUFACTURING Smyrna Battery Plant 200,000 Annual Production LEAF Production for U.S. Market New State-of-the-Art Paint Plant Third Production Shift Approx. 2,000 New Employees
U.S. MANUFACTURING Machining and Assembly of 4,6,and 8 Cylinder Engines Crank Shaft Forging Engine Block Casting Electric Motor Production for Nissan LEAF Nissan Daimler Alliance to Produce 4 Cylinder Engines for Mercedes Benz and Infiniti New Facility Under Construction Decherd
U.S. MANUFACTURING Canton Vehicles Altima Titan NV Passenger & Cargo Xterra Frontier Armada Sentra
OUR FUTURE Key Contributions 51 all-new Nissan and Infiniti models globally & 90 new innovative advance technologies Altima Sentra Pathfinder Infiniti JX Six year mid-term business plan global BRAND POWER SALES POWER 8% GLOBAL MARKET SHARE 8% OPERATING PROFIT Easy fill tire alert Safety Shield Technologies Zero-gravity seats Zero-emissions leadership Nissan LEAF Enhancing quality Cost leadership
U.S. MANUFACTURING Canton Maximum Flexibility and Efficiency Combination of 8 Cars, Trucks and vans Body-on-Frame Center of Excellence for U.S. Market: Trucks SUVs Commercial Vehicles Second production shift for Truck Systems Approx. 1,400 New Employees
OUR MISSION Our continuing mission To be the most trusted, growing car company in the Americas Innovation that excites. Innovation for all.
Das Auto The Story Of The All New Passat Frank Fischer CEO & Chairman, Volkswagen Group of America, Chattanooga Operations, LLC Chattanooga, October 2012
Das Auto. Status: 9. Oktober 2012 Chattanooga Operations, LLC 2
Chattanooga and the mach18 Strategy Achieve 800,000 VW car sales by 2018 1 2 3 4 5 Time zones Snowfall Tornados Site Selection Workforce Logistics Quality of Life Whole of USA: 398 locations High level filter: 10 states Bidder's conference Brand strategy Product Strategy Local Production Dealer Network VWGoA Organization Position the brand Volkswagen as an innovative volume manufacturer Offer competitive product range with high quality Manufacture US specified products locally Increase efficiency of dealer network Establish efficient and competitive organization Status: 9. Oktober 2012 Chattanooga Operations, LLC 3
Timeline Plant Chattanooga 2008 2009 2010 2011 Ground preparations VFF* Construction of buildings PVS* 0-S* 2012 AGCC South Korea First foundation 2/3/09 Wall raising 5/14/09 * VFF: Pre-series vehicle acceptance PVS: Production series test 0-S: Pre-series SOP: Start of Production Start installations 11/2/09 Installations Full system trial SOP* Ramp up Vehicles /Day 520 480 440 400 360 320 280 240 200 160 120 80 40 Plan Actual 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Calendar Week Status: 9. Oktober 2012 Chattanooga Operations, LLC 4
The 4 Pillars of the Project Chattanooga Operations Product Plant Parts People Processes and Systems Status: 9. Oktober 2012 Chattanooga Operations, LLC 5
Product Prototype Build Quality Confirmation Drive Pilot Hall Status: 9. Oktober 2012 Chattanooga Operations, LLC 6
The All New Passat Insurance Institute For Highway Safety TopS a fet yp ic k2011 September 2011 mama The Family Vehicle Of The Year 2012 January 2012 Kelley Blue Book Best Family Car Of 2012 & Best Sedan Under $25,000 February and March 2012 JD Power APEAL Study Number 1 in Midsize Car Segment August 2012 Motortrend Car Of The Year 2012 November 2011 Cars.com Best of 2012 February 2012 CAR and DRIVER Winner Of Hot Six Comparison March 2012 Status: 9. Oktober 2012 Chattanooga Operations, LLC 7
Plant of Short Distances & The Spine Assembly 900 ft Body Shop CP5 300 ft CP7 Finish CP5a CP8 E B P Q Paint Status: 9. Oktober 2012 Chattanooga Operations, LLC 8
Chattanooga Site September 2011 Supplier Park Body Shop Spine Assembly Academy Technical Center Paint Shop Status: 9. Oktober 2012 Chattanooga Operations, LLC 9
New Standard Plant LEAN and LEED LEAN: New standard layout for VW Body Shop: Framer Paint Shop: Process 2010, dry paint separation Assembly: H-Layout, signal call, takt line Conveyor technic: Decoupling Logistics: Forklift-free plant LEED: building isolation Rainwater usage Recycling concept Solar park Status: 9. Oktober 2012 Chattanooga Operations, LLC 10
Supplier Readiness Involved Parties Logistics Tracking of main activities in overall roadmap parts Tooling R&D Purchasing Quality Assurance Tracking of supplier visits with standardized templates Close collaboration with all involved parties to manage status of supplier parts Status: 9. Oktober 2012 Chattanooga Operations, LLC 11
Supplier Integration Days and Supplier Forums BF* LF* VFF* PVS** 0S** SOP** SID1 SID2 SID3 SID4 SID5 SID6 SF1 SF2 * BF: Purchasing Release LF: Launch Release VFF: Pre-series vehicle acceptance ** PVS: Production series test 0S: Pre-series SOP: Start of production CP5 CP7 CEO review SID: Supplier Integration Day SF: Supplier Forum Status: 9. Oktober 2012 Chattanooga Operations, LLC 12
Supplier Park Volkswagen Chattanooga Status: 9. Oktober 2012 Chattanooga Operations, LLC 13
Integrated Development Program Builds Competence Competence On-The-Job Training Profi Room Fundamental Skills Production System Common Core Competence Qualification Time Status: 9. Oktober 2012 Chattanooga Operations, LLC 14
Our culture Think Blue. Team Spirit.for our customers Status: 9. Oktober 2012 Chattanooga Operations, LLC 15
Thank you! Status: 9. Oktober 2012 Chattanooga Operations, LLC 16