Chrysler 2003 Annual Report Download - page 43

42 Report on Operations
Transactions among 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 competitive
with 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%).
❚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., Fiat Engineering S.p.A., Comau S.p.A., and other
Group companies.
❚Grant of suretyships and guarantees in connection with the
issuance of billets de trésorerie (Fiat France S.A.), bonds
and lines of credit (Fiat Finance and Trade Ltd, Fiat Finance
Luxembourg S.A., Fiat Auto Financial Services Limited,
and New Holland Credit Company LLC); and to secure bank
loans (Fiat Auto S.p.A., Teksid S.p.A., Fiat Partecipazioni S.p.A.
(formerly Sicind S.p.A.), Fiat Automoveis S.A., Banco CNH
Capital S.A., Case LLC, and other Group companies), and
payment obligations under building rental contracts (Ingest
Facility S.p.A., Fiat Auto S.p.A., Isvor Fiat S.c.p.A., Editrice La
Stampa S.p.A., Fiat Automobil Vertriebs GmbH, International
Metropolitan Automotive Promotion (France) S.A., Fiat Motor
Sales Ltd, and other Group companies).
❚Rental of buildings to Ingest Facility S.p.A. and Fiat I&CS S.r.l.
❚Loans granted to and received from Fiat Ge.Va. S.p.A.
❚Purchase of support and consulting services provided by Fiat
Gesco S.p.A. (taxation 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
Global Value S.p.A.
❚Purchase of external relations services provided by Fiat I&CS S.r.l.
❚Purchase of office space, personal and real property
maintenance services provided by Ingest Facility S.p.A.,
and other general services provided by Fiat Servizi per
l’Industria S.c.p.a.
❚Purchase of personnel training services provided by
Isvor Fiat S.c.p.A.
❚Purchase of automobiles from Fiat Auto S.p.A.
Among transactions with related parties that must be
mentioned, legal professional consultancy services rendered
by Franzo Grande Stevens to Fiat S.p.A. for 317 thousand
euros, and to Fiat Partecipazioni S.p.A. for 599 thousand
euros, consultancy services by Luigi Arnaudo to Fiat S.p.A.
for 40 thousand euros, and professional services by the
Benessia-Maccagno law firm, in connection with the equity
investment in Italenergia Bis, for 2.5 million euros.
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 (Note 21 – Other Information).
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 in the following page:
Transactions among Group Companies
and with Related Parties
Interests held by Directors and Statutory Auditors (Article 79 of Consob Regulations, Resolution No. 11971 of 5/14/1999)
(number of shares)
Number of Number of
shares held at Number of shares Number of shares shares held at
First name and last name Description of Investments 12.31.2002 bought in 2003 sold in 2003 12.31.2003
Luca Cordero di Montezemolo Fiat ordinary (1) 11,984 7,188 19,172
John Philip Elkann Fiat ordinary 300 – 300 –
Cesare Ferrero Fiat ordinary 1 – – 1
Paolo Fresco Fiat ordinary 211,452 5,650 – (2) 217,102
Gabriele Galateri di Genola Fiat ordinary 2,750 – – (3) 2,750
Fiat preference 440 – – (3) 440
Felix George Rohatyn Fiat ordinary 1,000 – – (2) 1,000
(1) shares held at February 28, 2003, date of his appointment.
(2) shares held at February 28, 2003, when he left the office.
(3) indirectly owned through his spouse, shares held at April 12, 2003, when he left the office.