Chrysler 2002 Annual Report Download - page 46

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profitability. Overall, financing was provided to buyers of almost
774,000 vehicles (-33%), equivalent to 30% of the new vehicles
sold by Fiat Auto (39% in 2001). In Italy and Western Europe
this percentage is roughly the same.
At 23.7 billion euros, financing offered to the distribution
network and suppliers was 3% less than in 2001, due to the
sales decrease mentioned above and to a drop in production
volume.
In 2002, the main focus of Fiat Auto’s rental operations —
Leasys, a company jointly controlled by Fidis and Enel (long-
term rentals for large, multibrand fleets) and Savarent
(management of small and medium-size fleets through the
Fiat Auto sales network) — was on increasing the profitability
of new contracts.
The Sector’s rental fleet numbered 123,000 vehicles, or 14%
more than in 2001.
For Fiat Auto’s operations in the area of mobility services, which
are provided by the Targasys Group, 2002 was a year of further
strengthening and streamlining of the service business through
extension of the services rendered (call-center management
through the newly established In Action S.r.l.).
In December 2002, the Sector agreed to sell its Brazilian
retail financing business to Itaú, Brazil’s second largest
banking group. This agreement was implemented during
the first quarter of 2003.
Also in December 2002, Fiat Auto S.p.A., Fidis S.p.A. and
ACI (Automobile Club Italia) signed an agreement for the sale
of a 50% interest in Targasys.
The Sector’s financing and service operations generated
revenues of 2,236 million euros in 2002, compared with 2,313
million euros in 2001 (-3.3%). The main reasons for this decrease
are the negative impact of unfavorable exchange rates on
operations outside the EU and the virtual stoppage of business
in such high-risk countries as Argentina and Turkey.
The performance of these operations was in line with the
positive results reported in prior years. Operating income
totaled 313 million euros (352 million euros in 2001). Most
of the decrease is attributable to the difference in the impact
of securitization transactions in the two years and the less
favorable exchange rate used to recognize the contribution
of non-EU operations, especially those in Brazil.
Income before taxes of the normal business of these activities
declined to 285 million euros (290 million euros in 2001). The
shortfall compared with the previous year was offset, among
other factors, by the gain earned on the sale of an interest in
Targasys.
44 Report on Operations Fiat Auto Holdings