2014 Supplier Warranty

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Specific Exceptions*
CHRYSLER GROUP LLC
Commodities with pre-defined, Chrysler-agreed warranty programs, e.g.:
- Tires
- Radios - Windshields – Non Encapsulated Glass
forward, the Seller’s liability for Chrysler’s expense of reimbursing warranty claims made by Chrysler’s dealers due to Seller’s breach of Clause 8(a) hereof or any warranties implied by law or otherwise made by Seller shall be determined in accordance with the Supplier Associated Warranty Reduction Program Policies and Procedures or any successor program or policies as published on Chrysler’s (accessed through Chrysler’s Supplier Portal).
Requires a manual recalculation of supplier’s warranty
2010 and prior model year warranty
Recovery will be managed using Chrysler case-based methodology, “AWR”
extended to Chrysler's customers by Chrysler on the date of the Order, or any other date agreed upon by Chrysler and Seller in the Order (except to the extent, prior to the commencement of initial volume production in connection
• Note: “(b)” is the replacement for section (b) of the currently published GT&C “(a)” refers
to section (a) of the as published GT&C • See previous slide for published GT&C’s
Evaluation Point
Floor = 0.05 C/1000
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Months of Production
Program Parameters
CHRYSLER GROUP LLC
Supplier Manufacturing Location Code / Local Commodity Code (SMLC/LCC) level in the Warranty Information System (WIS)
General Terms & Conditions for PO’s Issued AFTER September 2010
CHRYSLER GROUP LLC
8. GENERAL WARRANTY. (a) Seller warrants that the goods or services will (i) comply with all performance standards and product characteristics, including without limitation specifications, drawings, descriptions or samples, furnished and/or specified by Chrysler, (ii) be merchantable, and (iii) be free from defects in material and workmanship. Seller further warrants that to the extent that Seller designs any goods, or Chrysler relies on Seller’s expertise in any aspect of the design of the goods communicated by Seller to Chrysler, those goods will be fit and sufficient for the purposes intended. The warranty term will be coterminous with the warranty
the Order or on the date of any amendment to the Order. (c) Seller further warrants that Chrysler will receive good title upon delivery of goods, services, Tooling, fixtures, or equipment under this Order, free and clear of all liens and encumbrances and that all goods, services, Tooling, fixtures, or equipment will be free from any actual or claimed patent, copyright or trademark infringement. (d) These warranties are in addition to any warranties implied by law or otherwise made by Seller and will survive acceptance and payment by Chrysler.
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General Terms & Conditions Clause Addition for 2011 PO’s Issued PRIOR to September 2010
CHRYSLER GROUP LLC
“Emphasis Added”
•(b) For all parts purchased for 2011 Model Year product &
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Major Exceptions
CHRYSLER GROUP LLC
Recalls
Recovery will be managed using Chrysler case-based methodology
Customer Satisfaction Notifications (CSNs) Rapid Response Transmittals (RRTs)
or otherwise made by Seller shall be determined in accordance with the Supplier Associated Warranty Reduction Program Policies and Procedures or any successor program or policies as published on Chrysler’s website (as referenced in Clause 1 hereof) on the date of
with the applicable Request for Proposal, that Chrysler and Seller agree that the goods must meet quality or durability requirements for a longer term, in which case the warranty term will be such longer term). (b) Seller’s liability for Chrysler’s expense of reimbursing warranty claims made by Chrysler’s dealers due to Seller’s breach of Clause 8(a) hereof or any warranties implied ears 15% Internal % Improvement 15% Improvement Rate Objective Rate Share cost 50% / 50%
C/1000
Share savings 50% / 50% MCM credit CCM credit
Contractual agreements
Current agreements remain in place and supersede this program
Low warranty components
Components with warranty levels below a specified threshold are exempt from this program
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2014 MY SAWRP Program Description
CHRYSLER GROUP LLC
Supplier program targets set as best performance of prior two years less corporate improvement rate. If the C/1000 measure at 15 MIS is above the target line, the supplier will share in the warranty cost, if the measure is below the target line, the supplier will share in the savings.