Chrysler 2000 Annual Report Download - page 53

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Overall, financing provided to end customers totaled 9,314
million euros, or 20.4% more than in 1999. Financing was
provided for the purchase of 1,247,700 vehicles (+15.2%),
equivalent to about 40% of new vehicles sold by Fiat Auto.
In Italy, the Division financed the sales of 348,600 new
vehicles. Its share of the units shipped by Fiat Auto was
unchanged at 36.6%. In the rest of Europe, including Poland,
customers financed purchases of 376,000 new Fiat Auto cars,
equivalent to 45.6% of the total. In addition, the Division
provided financing for the sale of 313,546 used cars
worldwide, for a gain of 28.2% over 1999.
The Sector’s Leasing Division expanded its fleet by about
19% to almost 68,000 vehicles. In the area of customer
services, the Fiat network responded to 145,000 roadside
assistance requests, and the call center handled more than
3,500,000 calls.
RESULTS FOR THE YEAR
Fiat Auto’s consolidated revenues amounted to 25,361
million euros, or 1,260 million euros (+5.2%) more than in
1999. Increased unit sales in Italy and the rest of Western
Europe and higher prices are the main reasons for this
improvement.
In Europe and in Italy in particular, competitive pressures
showed no signs of abating in 2000. As a result, even though
sales increased, the programs implemented by Fiat Auto
to strengthen its product line and enhance its brands had a
negative impact on its ability to improve profitability. In Brazil,
however, an upswing in demand produced better operating
results. In Argentina, the ongoing restructuring of the
manufacturing operations will help the Sector significantly
reduce its losses starting from 2001.
During the year, Fiat Auto continued to support and
enhance the image of its brands with increased investments
to renew the product line, higher expenditures for advertising
and network support, and a steady upgrading of vehicle
equipment. The cost of these improvements was reflected
in the prices charged to customers and required a reduction
of sales discounts.
The Sector achieved significant reductions in product
costs and overhead, owing in part to the successful
reengineering of the support activities. At the same time,
the synergies generated by the alliance with General Motors
have already produced measurable benefits in the area of
purchasing, that fully offset the costs incurred to implement
joint projects.
Other factors that had an impact on the profitability of
the Sector’s operations were a reduced contribution from
the sale of real estate properties compared with a year ago
and higher charges incurred in Argentina by the financing
operations.
Alfa Sportwagon.