Chrysler 2003 Annual Report Download - page 48

The overall decrease in the number of cars sold in Western
Europe is the net result of varying performances in the individual
countries. More specifically, unit sales decreased significantly
in France (-16.3% compared with 2002) but showed gains in
Great Britain (+1.4%), a marked improvement over the 2002
trend, and Spain (+14.8%).
The overall trend was down in Italy (-11.5%) and Brazil (-11.3%),
but the Polish operations bucked the trend, posting a gain of
15.9% compared with 2002.
In 2003, Fiat Auto continued to refocus and integrate the
Sector’s international presence, placing special emphasis
on such major markets as Latin America, China and Turkey.
In Brazil, despite a business climate characterized by increasing
competitiveness and a further decrease in demand, Fiat Auto
retained market leadership for the third consecutive year with
a share of 25.3% (cars and light commercial vehicles combined).
During the year, the Sector launched the new Palio, which
received the prestigious Carro do año (Car of the Year) award;
introduced the Adventure version of the Doblò; and entered
into an agreement with GM Mexico to distribute in Mexico
Fiat-brand cars that are manufactured in Brazil.
In Argentina, the deep slump of 2002 was followed by steady
signs of improvement in 2003, with demand up a strong 41%
year-over-year. In this environment, Fiat increased its market
share to a level above 10%.
In China, Fiat Auto’s joint venture with the Yueijin Motor Group
increased the level of sales, which reached 37,200 units
compared with 23,700 units in 2002. During 2003 the product
line, which comprised the Fiat Palio and Albea, was expanded
with the introduction of the Palio Weekend and of models with
automatic transmission.
In Turkey, the Tofas associated company strengthened its
position as Turkey’s preeminent carmaker in 2003 and
significantly broadened its product line, introducing a 1.3
Multijet engine for the locally-produced Palio and Albea car
models. Furthermore, the Fiat Stilo and Punto were launched
on the Turkish market.
Product innovation
In 2003, Fiat Auto continued to pursue the strategy launched
in previous years to upgrade its model lineup and increase its
competitiveness.
The success of this approach was demonstrated by the
introduction and market launch of four new models that
should enable Fiat Auto to strengthen its presence in Europe.
These models are the new Fiat Panda, a city car honored
with the prestigious 2004 Car of the Year award; the Fiat
Idea compact MPV; the elegant Lancia Ypsilon; and the Alfa
Romeo GT, a grand tourer five-seat coupé. Other noteworthy
products include the Kamal, an SUV concept car, and the 8C
Competizione, a luxurious high-performance sports car.
Innovations in the area of engines include: introduction of
the 1.3 16V Multijet diesel engine, which complies with the
Euro 4 emission standards, for the Punto and the Ypsilon;
development of diesel powerplants, which are scheduled to go
into production during the first half of 2004, for the Doblò and
Panda; launch of the Punto bi-power; upgrades to make the
engines in the Doblò Panorama, Multipla and Punto passenger
transports compliant with EOBD standards; introduction of a 1.4
16V powerplant for the Ypsilon, Idea and Punto and of 1.9 16V
diesel 140 bhp and 1.4 16V Fire 90 bhp engines for the Stilo,
whose 2004 Model Year was launched in the last quarter of 2003.
47 Report on Operations Fiat Auto