Chrysler 2001 Annual Report Download - page 76

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76
Transactions between Group companies, whether they are
made to support vertical manufacturing integration or to
provide services, are carried out at terms that, considering the
quality of the goods or services involved, are more competitive
than those available in the marketplace.
The specific mission of a Group Sector is to provide services
to other members of the Group through companies which,
because of their specialized nature, are able to achieve
continuous improvements in quality and economies of scale.
Within this framework, the main transactions between the
Parent Company, Fiat S.p.A., and its subsidiaries and
associated companies are summarized below:
❚Licensing of the right to use the Fiat trademark, for a
consideration based on a percentage of sales, to Fiat
Auto S.p.A. (0.5%), Iveco S.p.A. (0.2%) and FiatAvio S.p.A.
(0.5%);
❚Services provided by Fiat management personnel to Fiat
Auto S.p.A., Iveco S.p.A., Teksid S.p.A., Magneti Marelli
Holding S.p.A., Toro Assicurazioni S.p.A., Business
Solutions S.p.A. and other Group companies.
❚Grant of suretyships and guarantees in connection with the
issuance of debentures (FiatSava S.p.A.), commercial paper,
money market claims and billets de trésorerie (New Holland
Credit Company LLC, Fiat Finance Canada Ltd., Fiat
Finance and Trade Ltd., Fiat France S.A. and Fiat Polska
Sp.zo.o.), bonds and lines of credit (Fiat Finance and Trade
Ltd and New Holland Credit Company LLC); and to secure
bank loans (Fiat Auto S.p.A., Iveco S.p.A., Teksid S.p.A.,
Fiat Automoveis S.A., Iveco Fiat Brasil Ltda, Fabbrica
Motori Automobilistici S.r.l., Banco CNH Capital Brazil S.A.,
Sevelnord S.A. and other Group companies), payment
obligations under building rental contracts (Ingest Facility
S.p.A., Fiat Auto S.p.A., Isvor Fiat S.p.A., Editrice La
Stampa S.p.A., Property and Car Retailing – Pro.Ca.R.
Deutschland GmbH, International Metropolitan Automotive
Promotion - France - S.A., Fiat Motor Sales Ltd. and other
Group companies), and payment obligations under financial
leases (Teksid Aluminum Components Inc., Fraikin Location
S.A., Fraikin Locatime S.A. and Locamion S.A.).
❚Rental of buildings to Ingest Facility S.p.A. and Fiat
I&CS S.r.l.
❚Deposit of liquid funds with Fiat Ge.Va. S.p.A.
❚Loan to Elasis S.c.p.A.
❚Purchase of support and consulting services provided
by Fiat Gesco S.p.A. (taxation, law and administration),
Fiat Ge.Va. S.p.A. (financial services) and Fiat International
S.p.A. (international relations).
❚Purchase of inspection and internal auditing services from
Fiat Revi S.c.r.l.
❚Purchase of information technology services provided by
ITS S.r.l., Fiat G.S.A. S.r.l., Global Value S.p.A. and eSPIN
S.p.A.
❚Purchase of external relations services provided by Fiat
I&CS S.r.l.
❚Purchase of support and consulting services outside Italy
provided by Fiat U.S.A. Inc., Fiat United Kingdom Ltd.
and Fiat Iberica S.A.
❚Purchase of office space, personal and real property
maintenance services provided by Ingest Facility S.p.A.,
and real estate services and other general services
provided, respectively, by IPI S.p.A. and Fiat Servizi
per l’Industria S.c.p.a.
❚Purchase of personnel training services provided by Isvor
Fiat S.p.A.
❚Purchase of insurance services provided by Augusta
Assicurazioni S.p.A.
❚Purchase of automobiles from Fiat Auto S.p.A.
A transaction with related parties that needs mentioning, even
though the amount involved is not significant, is a consulting
contract with Jack Welch LLC for an annual amount of one
million U.S. dollars.
Details about the transactions with the greatest financial
impact are provided in the analysis of the individual items
in the Notes to the Statutory Financial Statements.
All the transactions involving intra-Group deliveries of goods and
services that are part of the regular operations of the companies
involved are discussed in other sections of this Report.
Based on the information received from the various Group
companies, there were no atypical or unusual transactions
during the year. Extraordinary transactions among Group
companies or with related parties that occurred during
the year are reviewed below:
❚In order to enhance the value of the Group’s energy
operations, certain subsidiaries sold some of their industrial
sites (brownfields) to Fiat Energia S.p.A., which was
transferred to Italenergia S.p.A. as part of the transaction
through which the Group acquired a 38.6% interest in
Italenergia S.p.A. and, through this company, in the
Montedison-Edison Group.
❚In December 2001, Sicind S.p.A. bought from Ciao Holding
N.V. the entire capital stock of Ciao Web S.p.A. at a price
of 28,808,300 euros.
Transactions among Group Companies and with Related Parties