Chrysler 2000 Annual Report Download - page 52

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Report on Operations – Automobiles
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outlays, which amounted to 776 million euros, charged in full to
income for the year, compared with 711 million euros in 1999.
A major boost to the Sector’s competitiveness will
undoubtedly come from the industrial alliance with General
Motors. The purpose of this alliance is to help Fiat Auto’s
manufacturing operations and those of General Motors in
Europe and Latin America realize economies of scale on a
combined output of about 5.5 million cars a year. The resulting
synergies are expected to generate savings of about one
billion euros by 2005 for Fiat Auto.
Two joint ventures, Fiat-GM Powertrain B.V. and GM-Fiat
Worldwide Purchasing B.V. were established in 2000. Fiat
Auto owns 50% of each of these two companies, whose names
are indicative of their respective fields of activity. The Powertrain
joint venture, which is based in Turin, will have 26,000
employees working in 19 factories and 7 R&D centers in 11
European and Latin American countries. It has already defined
plans to consolidate several powertrain lines, which, when fully
implemented, will result in significantly lower product costs.
The Purchasing joint venture, which is based in Rüsselsheim,
Germany, handles a procurement volume of about 32 billion
euros. It has already developed substantial synergies,
generating net savings of more than 20 million euros.
Strategic plans for these two joint ventures call for Fiat Auto
to realize savings of about 200 million euros in 2001, most
of which will be realized through the Purchasing joint venture,
since synergies can be more readily exploited in this area.
Powertrain, which is engaged in a consolidation effort prior
to the joint development of new product architectures, will
develop steadily greater synergies over the intermediate term.
FINANCIAL ACTIVITIES
During 2000, Fiat Auto strengthened its position in the areas
of financing and mobility services, which were combined in a
single Financing and Customer Services Division. This enabled
the Sector to introduce personalized products like Formula
Bridge and high-tech services like Targa Connect.
Production of Fiat Auto and its subsidiaries – Automobiles
and Light Commercial Vehicles
(in thousands of units) 2000 1999 1998
Fiat 1,153.1 1,165.2 1,154.7
Lancia Autobianchi 170.4 160.1 175.4
Alfa Romeo 206.8 208.3 197.7
Total Western Europe 1,530.3 1,533.6 1,527.8
Brazil 433.5 391.6 393.0
Poland 291.3 343.8 336.7
Argentina 33.9 42.8 93.4
Total 2,289.0 2,311.8 2,350.9
Other regions 35.9 41.2 38.1
Grand total 2,324.9 2,353.0 2,389.0
Fiat Doblò ELX.