1. 1 Automotive News - May 20, 2008 Enhancement of Virtual Development in FGA Harald J. Wester Chief Technical Officer Fiat Group

2. 2 Automotive News - May 20, 2008 Virtual Development 1.Standardization of Technical Solutions and Components 2.Widespread use of Virtual Analyses in all Development Phases 1.Standardization of Technical Solutions and Components 2.Widespread use of Virtual Analyses in all Development Phases 1.Reduce the TTM 2.Improve Product Performances & Quality 1.Reduce the TTM 2.Improve Product Performances & Quality OBJECTIVES APPROACH

3. 3 Automotive News - May 20, 2008 FIAT: Pioneer in Virtual Reality Dante Giacosa, the father of “500” and “600”, : “electronic brains will become fundamental to the creation of better automobiles in the future” Dante Giacosa, the father of “500” and “600”, : “electronic brains will become fundamental to the creation of better automobiles in the future”

4. 4 Automotive News - May 20, 2008 Concept definition Technical concept definition Technical / technological Development & Tooling Pre- series Ramp-up Approval of the initiative Kick offBriefing Job 1 - 4 -16,5 2001 -2.5 -9 2006 -18 -26 Launch 0 0 -2.5 -8.5 2008 -16 What we achieved Technical release Product / process validation

5. 5 Automotive News - May 20, 2008 Key Drivers of Virtual Development Enhancement  Frontload V.D. in Technical Concept Definition Phase  Enhance multifunction integration and optimization in Technical / Technological Development  Develop integration with Manufacturing V.D., involving also Logistics & Quality  Frontload V.D. in Technical Concept Definition Phase  Enhance multifunction integration and optimization in Technical / Technological Development  Develop integration with Manufacturing V.D., involving also Logistics & Quality Concept definition Technical concept definition Pre- series Ramp-up Approval of the initiative Kick offBriefing Job 1Launch Technical release Technical / technological Development & tooling Product / process validation

6. 6 Automotive News - May 20, 2008 Virtual Coverage in Technical Release Ergonomics & Driver Interface Climate Fuel Economy and Driveability Vehicle Dynamics Aerodynamics Passive Safety NVH Operational Strength Electric / Electronic Compliance Environmental Compliance 80 % of the targets are now evaluated in virtual Physical verification is done with Process Verification Vehicles In few cases physical evaluation is not needed Concept definition Technical concept definition Pre- series Ramp-up Approval of the initiative Kick offBriefing Job 1Launch Technical release Product / process validation Technical / technological Development & Tooling

7. 7 Automotive News - May 20, 2008 Technical / technological Development & tooling Approval of the initiative Technical release Technical Targets Covered in Virtual 2001 20-30% 40-50% 2007/8 40-50% 80% 2010 80% 85% With reference to the set of targets relevant in each phase Technical concept definition The Growth in Virtual Coverage of Targets

8. 8 Automotive News - May 20, 2008 Virtual engineering has enabled the initial less significant test cycles to be eliminated and the number of prototype vehicles to be reduced or even cancelled. From physical to virtual: no prototypes

9. 9 Automotive News - May 20, 2008 From physical to virtual: infinite number of tests Computer simulations enable a limitless number of virtual prototype configurations to be realised and subjected to practically infinite number of tests, far greater than ones feasible with physical prototypes.

10. 10 Automotive News - May 20, 2008 From physical to virtual: deeper insight Mathematical models to perform highly complex analyses enables our engineers and designers to gain an understanding of the vehicle which is significantly deeper and more detailed than was possible in the past.

11. 11 Automotive News - May 20, 2008 A company-wide evolution now involving Engineering & Development, Manufacturing, Parts & Services, and others From physical to virtual: paperless Traditional drawing: 3D Annotated CAD model: 3D View: Section 3D View: Mid-plane 3D View: composite view

12. 12 Automotive News - May 20, 2008 From physical to virtual: product / process integration Product optimization and robustness are achieved assuming the real properties given by the process.

13. 13 Automotive News - May 20, 2008 From physical to virtual: product / process Integration StampingBody in whitePaintingFinal assembly Each assembly step has manufacturing virtual validation in parallel with each step of product development Each assembly step has manufacturing virtual validation in parallel with each step of product development First process verification vehicle is virtual

14. 14 Automotive News - May 20, 2008 From physical to virtual: the Digital Mock-Up The Digital Mock-Up enables all aspects of layout, assembly and accessibility to be evaluated with the option of using a total immersion approach employing state-of-the-art virtual reality equipment. 13

15. 15 Automotive News - May 20, 2008 Functional virtual prototypes: Aeroacoustics Today we can carry out virtual checks before prototypes are made, even for performances involving complex phenomena

16. 16 Automotive News - May 20, 2008 Functional virtual prototypes: Handling and Ride-Comfort Simulation models also embrace the wide range of active systems such as ABS, Stability Control, Damping Control which may be incorporated into the vehicle. 14

17. 17 Automotive News - May 20, 2008 Computation Power Index Index of Virtual Development Computation Power

18. 18 Automotive News - May 20, 2008 Achieved performances 16 The investment in virtual techniques pays those companies trusting them through the full exploitation in Product Development.

19. 19 Automotive News - May 20, 2008 Our Vision for the Future Achieving the fully virtual Product-Process Development  Optimization of Product performances through a rigorous multi-objective approach  Improved quality  Reduced time-to-market, constrained only by tooling time  Optimization of Product performances through a rigorous multi-objective approach  Improved quality  Reduced time-to-market, constrained only by tooling time to gain excellence in customer perception THIS IS THE NEW FIAT