Chrysler 2003 Annual Report Download - page 45

44 Report on Operations
Significant Events Occurring Since the End
of the Fiscal Year and Business Outlook
SIGNIFICANT EVENTS OCCURRING SINCE THE END
OF THE FISCAL YEAR
The most significant transactions completed by the Fiat Group
during early months of 2004 are reviewed below.
❚In February 100% of the interest held in Fiat Engineering
S.p.A. was sold to Maire Investimenti S.p.A. At the same time
Fiat Partecipazioni S.p.A. subscribed to a capital increase in
Maire Investimenti S.p.A. and now owns 30% of its capital.
On said 30% interest, both parties hold call and put options
that are exercisable within three years at a predetermined
price.
❚Fiat signed an agreement to sell 65 million ordinary shares
of Edison S.p.A., representing Fiat’s direct stake in Edison.
Fiat retains its 24.6% interest in Italenergia Bis, the controlling
entity of Edison. The transaction does not change any of the
future strategic options of the Fiat Group.
❚The following new products were introduced during the first
quarter of 2004:
Fiat Auto chose the 74th International Geneva Motor Show
for the worldwide introduction of several Fiat-brand models,
including the on-road and off-road versions of the gasoline-
and diesel-powered Panda 4X4, the new Fiat Multipla with
updated styling, and the Trepiùno, a small car that serves as
a styling and technological laboratory for the development
of future microcars.
Alfa Romeo staged the worldwide launch of the Alfa
Crosswagon, a sporty and elegant all-wheel-drive car
capable of handling off-road driving conditions.
Lancia presented to buyers worldwide its Musa, a new
compact MPV for motorists who want to enjoy good
taste but are unwilling to give up convenience.
An important development involves work to update the
measures taken to comply with the requirements of the
previous and now repealed privacy law and make them
consistent with the changes contained in Legislative Decree
196/2003. More specifically, the planning paper on safety has
undergone the upgrade process that is inherent in the nature
of this constantly evolving document, which is designed to
ensure the achievement of a steadily rising level of safety.
BUSINESS OUTLOOK
The forecast for 2004 calls for the global economy to grow,
driven by expansion in the United States and Southeast Asia.
However, the growth rates projected for Italy and the rest of
Europe are significantly lower. Consequently, the Group will
be faced with market demand that will expand slightly in the
United States but hold relatively steady in most other countries,
and with aggressive competition from other carmakers.
In this environment, all of the Group’s Sectors will strive to
achieve significant gains in profitability. They will pursue this
goal by following the guidelines set out in the Relaunch Plan,
by restructuring and by streamlining their manufacturing
operations. At the same time, they will be making major
investments in renewing their product range and improving
their distribution networks.
The Group will continue to strengthen its management
organization by pursuing a strategy of bringing in top
professionals from the outside and leveraging the competencies
available inside.
While taking into account the current business outlook,
management aims at achieving the objectives of the Relaunch
Plan: operating break-even at Group level, a further reduction of
Fiat Auto’s losses and better operating results than in 2003 from
all other Sectors.