Chrysler 2002 Annual Report Download - page 45

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second half of 2002 (the Lancia Thesis and Phedra, the Fiat
Ulysse and, most importantly, the Fiat Stilo Multi Wagon).
Sales were down in all of the principal markets with the
exception of Spain, where they increased by 5.9%. In Italy,
the sales decline (-8.0%) was offset only in part by an upturn
during the last months of the year that was due to government-
sponsored environmental incentives.
The reversals experienced in Brazil and Poland, where sales
decreased by 13.9% and 20.4%, respectively, and market share
was down, were only partially mitigated by a recovery (especially
in Poland) during the last six months of 2002.
Product innovation
In 2002, Fiat Auto continued to upgrade its model lineup
and increase the competitiveness of its brands by introducing
increasingly sophisticated technologies and making its products
safer and more environmentally friendly.
This strategy is embodied in the new cars launched by Fiat (Stilo
Multi Wagon and Ulysse), Lancia (Thesis and Phedra) and Alfa
Romeo (GTA configuration for the 156, Sportwagon and 147),
and in the new 1.9-liter 16-valve JTD diesel engine with Multijet
technology (for the Alfa 147, 156 and Sportwagon), the direct
injection JTS gasoline engine (for the Alfa 156) and the new
1.3 liter JTD engine (produced by the Fiat-GM Powetrain joint
venture) that is scheduled for launch in 2003.
In addition, the Sector continued to expand its line of cars
fueled by methane gas (Doblò Bifuel, Ducato Bifuel and,
starting in 2003, Fiat Punto) and LPG (Multipla and Ducato).
Growth strategies
During 2002, Fiat Auto continued to strengthen its industrial
and commercial presence around the globe. More specifically:
❚In China, the joint venture with Yuejin achieved gratifying
results with the Palio. The Siena, which was introduced in
April 2002, was also well received.
❚In India, the Sector increased its market share from 2.2% to
4.5% despite the plan launched toward the end of the year
to streamline the sales organization in that country.
❚In Turkey, the Tofas associated company responded to the
challenge posed by a protracted market slump by using
the Doblò to obtain the leadership of the market for light
commercial vehicles.
In March 2002, the Automobile Sector adopted a new structure
based on five Business Units, each with full responsibility for its
operating and financial performance and business development.
They are: Fiat, Lancia & Light Commercial Vehicles B.U., Alfa
Romeo B.U., International Developments B.U., Fiat Auto
Consumer Services B.U. and Aftersales B.U.
Financial and service activities
In 2002, the Sector’s financing and mobility services provided
financial support for transactions totaling over 6.8 billion euros,
including 345 million euros earmarked for assets covered by
long-term rental agreements. The decrease of 23% compared
with 2001 reflects weakness in Fiat Auto’s target markets and
afinancing policy focused on increasing loan quality and
43 Report on Operations Fiat Auto Holdings