Chrysler 1999 Annual Report Download - page 8

6
A GROUP IN TRANSITION
From a strategic standpoint, 1999 was marked by a
rapid acceleration in the process of transformation that
characterizes the Group. As we emphasized repeatedly
during the course of the year, we are committed to enabling
all Sectors to achieve positions of competitive excellence,
which entails attaining a leadership position in the markets
we serve, ensuring the satisfaction of our customers and
creating steadily rising value for our shareholders.
During 1999, we sought to shorten the time needed to
attain this objective by implementing numerous programs
involving both a more effective management of our portfolio
of businesses and the strengthening of all our internal system,
which was achieved by streamlining our organization,
innovating our products, expanding our range of services,
and partnering with suppliers and distribution networks.
PORTFOLIO MANAGEMENT AND COMPETITIVE
EXCELLENCE
By deploying financial resources in excess of 6 billion euros,
we were able to carry out acquisitions and alliances of
sufficient magnitude to alter radically the size, geographic
footprint and customer mix of many Group Sectors.
The seminal event of the year was New Holland’s purchase of
Case Corporation in the United States. This merger created
CNH, a world leader in the agricultural and construction
equipment markets. Thanks to its diversified geographic
base, the complementarity of its product skills and the
significant synergies that will be generated by merging the
human and technological resources of both companies, CNH
has the potential of redefining the competitive landscape in
the businesses where it operates, and can look forward to
achieving outstanding levels of profitability.
The acquisition of Fraikin, France’s leading provider of
contract-hire services, helped Iveco accelerate the development
of its financial services, which have become an essential tool
in meeting the evolving needs of its customers. 1999 was
also the first year of operation for Irisbus, the joint venture
established by the Sector with Renault Véhicules Industriels
which ranks as a co-leader in the European bus industry and
has become one of the most profitable companies in this field.
In addition, Iveco continued to implement its 1997-2001 capital
spending program. In particular, it launched the new Daily, a light
commercial vehicle that will help the Sector reaffirm its leadership
in this market segment, and introduced the Cursor 10, the
second engine in a family of powerplants that has provided
renewed momentum to the sales of Iveco’s heavy-load vehicles.
The purchase of Pico in the United States and the integration
of Renault Automation’s operations into Comau turned the
Group’s Production Systems Sector into the undisputed leader
in the field of automotive bodywork systems. It also transformed
it into the largest full liner among the world’s top production
systems groups, with excellent geographic diversification
and a customer roster that includes all the most prestigious
automobile manufacturers. With Comau Service, the Sector is
helping develop the fast growing market of plant maintenance
services. After just one year of operation, Comau Service
ranked among the leading players in Europe and is expanding
in the Mercosur and Nafta countries.
During the year, Teksid underwent an important process of
competitive repositioning. Its status as a majority partner in
Renault’s foundry operations and the acquisition of complete
control of Meridian Technologies have turned it into the
largest non-captive producer of metallurgical components for
automotive applications. In particular, the Sector is ranked
first both in cast iron and aluminum components, as well as
in the emerging field of magnesium technology.
Magneti Marelli, which established Automotive Lighting, a joint
venture with Bosch, and toward the end of the year announced
that it agreed to purchase Seima in Italy, has become one
of the top three producers of lighting systems in the world.
As part of its effort to concentrate its portfolio of businesses
in areas of strategic importance, Magneti Marelli acquired
Fiat Auto’s Suspension Systems operations, concluded a
cooperation agreement with Textron Automotive Company,
a U.S. manufacturer, for the development and production
of integrated dashboard modules, sold its Rotary Devices
Division and announced the disposal of its Lubricants