AIAG (Automotive Industry Action Group)

Update June 2015

Outline

• About AIAG

• Damage Claims Committee

– Damage Codes

– Jump Chock

– Standardized Inspection and Verification

– Universal Major Exception Form

• AAR Member Input

AIAG: at-a-glance

3

• Globally recognized trade association founded in 1982

• Unique forum to collaborate on industry issues • Mitigate Risk • Manage Uncertainty • Drive pervasive access and utilization of the solutions developed by

the industry, for the industry

• Our Strength • 1100 member companies & growing • 900 Industry volunteers and 270 companies providing expertise • Over 60 active projects and committees

• Subject matter experts on staff in Quality, Corporate Responsibility and Supply Chain Management

• Senior Executives ‘on loan’ from Chrysler, Ford, GM and Magna

AIAG Board Companies (20)

Interface & Leadership

Tom Lake Vice President

North America Purchasing Honda North America, Inc.

Robert Young Vice President – Vehicle Parts & Materials

Toyota Motor Engineering & Manufacturing North America, Inc.

Hau Thai-Tang Group Vice President

Global Purchasing Ford Motor Company

Thomas Finelli Vice President

Purchasing & Supplier Quality Fiat Chrysler Automobiles N.V.

Steven Kiefer Vice President

Global Purchasing & Supply Chain General Motors Company

Global Alliances

6

North American Alliances

7

AIAG Process

8

Identify Projects - Insight • Leadership Forums (“3D” Meetings)

• VP’s, Board, Steering Committees

• Surveys

Drive Implementation - Results • Pervasive utilization of the industry

developed solutions is the goal

• More efficient and responsible supply chain

• Focus on sub-tier supplier development

Develop Solutions - Expertise • Volunteers

• SME’s on Staff

• “Fast Track”

What’s in it for you?

9

Current

AIAG Finished Vehicle Logistics INITIATIVES:

DAMAGE CLAIMS/QUALITY.

OEM International Vehicle Collaboration

QUALITY HANDLING MANUAL WITH ECG - completed

ePOD STANDARD To be Adapted for Rail Heads

QCHAT – PORT QUALITY AND AUDIT PROGRAM.

Current

• Create Inspection and Verification Document • Ensure standard inspections and proper

liability determination. • Issues like loose shipped items, opening trunks

and how to inspect roofs • Review and Accept new jump chock codes • Universal Finished Vehicle Major Damage Form

Universal Finished Vehicle Major Exception Form

• In certain instances Manufacturers and Carriers request additional information in order to handle damaged vehicles and associated costs. Those instances generally fit into the following categories;

• Major Damage: – Missing units

– Damage severity 3 or greater or above a certain dollar threshold

– Inoperable vehicle

– Repetitive damage.

• The additional information includes pictures of the vehicle as well as facts about the damage such as who had possession of the vehicle, transportation details and information that can be used for future damage prevention. Such information is used to for determining liability and to ensuring compliance with laws of the destination location. The definition listed below is intended to serve as a guide for when additional information is collected on vehicles damaged in transit. The form is intended to include all necessary information. Responsibility for completing the form varies by OEM, carrier and location.

Damage Report Example

Reporting Location: Date of Report: (If "Other" list here):

Date of Inspection: Railcar Number:

Damage Location: Railcar Type:

Damage Category: Primary Chock Type:

Chock condition:

VIN 1: Railcar Position: Area - Type - Sev.

Date Unloaded: Bay location: - -

Supp. Restraint Type: Supp. Condition: - -

Assembly Center: Origin Loading Pt.: - -

Comments:

- -

- -

- -

- -

- -

VIN 2: Railcar Position: Area - Type - Sev.

Date Unloaded: Bay location: - -

Supp. Restraint Type: Supp. Condition: - -

Assembly Center: Origin Loading Pt.: - -

Comments:

- -

- -

- -

- -

- -

VIN 3: Railcar Position: Area - Type - Sev.

Date Unloaded: Bay location: - -

Supp. Restraint Type: Supp. Condition: - -

Assembly Center: Origin Loading Pt.: - -

Comments:

- -

- -

- -

- -

- -

VIN 3: Railcar Position: Area - Type - Sev.

Date Unloaded: Bay location: - -

Supp. Restraint Type: Supp. Condition: - -

Assembly Center: Origin Loading Pt.: - -

Comments:

- -

- -

- -

- -

- -

VIN 4: Railcar Position: Area - Type - Sev.

Date Unloaded: Bay location: - -

Supp. Restraint Type: Supp. Condition: - -

Assembly Center: Origin Loading Pt.: - -

Comments:

- -

- -

- -

- -

- -

Damage Report Example

Universal Finished Vehicle Major Exception Form

Blank Form –

Select Truck or Rail Truck – Fields auto-populate

based on requirements

Rail – Fields auto-populate

based on requirements

Photo Page

PHOTOS

VINRailcar ID LF 1/2 View

RR 1/2 View RF Chock RR Chock

R Bumper Spacing Damage Overview Damage Close Up

LR Chock LF Chock F Bumper Spacing

Get Involved

• FINISHED VEHICLE LOGISTICS IS A NEW ARENA FOR AIAG AND THEY NEED YOUR PARTICIPATION.

• QUESTIONS – What standardization in claims process would save your

organization money?

– What would you like to change about the vehicle claims process?

– How can the AIAG better help you?

– What Topics would you like to see addressed?