Chrysler 2003 Annual Report Download - page 49

Major upgrades were also done by Alfa Romeo on its current
product line, particularly on the GTV/Spider (2.0 JTS and
240-bhp 3.2 V6 24-valve gasoline engines), the 156 and 166
(175-bhp 2.4 JTD 20V Multijet engine). A new 100-bhp 1.9 JTD
engine was also introduced on the Alfa 147.
In addition, Alfa Romeo now offers new automatic Sportronic
(166 diesel) and robotized Selespeed (147 and 156 GTA)
transmissions.
Financial and service activities
At the end of March 2003, as part of its streamlining effort, Fiat
Auto sold its Brazilian consumer credit and leasing operation
to the Itaù bank. This transaction was followed, in May 2003,
by the signing of an agreement with several large Italian credit
institutions covering the sale of a 51% interest in Fidis Retail
Italia S.p.A., which holds equity investments in companies that
provide consumer credit and leasing services to customers
in Italy and other European countries.
In 2003, financing support provided to the distribution network
and suppliers totaled more than 20 billion euros, or 14% less
than in 2002. The programs implemented to streamline the
loan portfolio and make it more profitable and focused on
providing support for the Sector’s sales organization, which
produced a contraction of the scope of operations, coupled
with a drop in production and a decrease in orders are the
main reasons for this decline.
The renting operations focused on strengthening their presence
at the local level and improving the profitability of new
contracts, even at the cost of forfeiting volume increases.
Leasys, a joint venture of Fiat Auto and Enel, retained the
leadership of the Italian market, with a 23% share. Savarent
achieved a gain in sales volume of about 5% and increased
its penetration of rental companies that use Fiat Auto vehicles
to about 28%.
At the end of 2003, the Sector’s rental fleet numbered 134,000
vehicles, or 9% more than a year earlier.
Fiat Auto’s operations in the area of mobility services
continued to work on streamlining and improving their business
performance, introducing new bConnect Voice products and
an OBN system, and expanding the Clickar website.
Noteworthy transactions completed in 2003 included:
❚In February, Fidis sold 50.1% of In Action S.r.l. to the Cos
Group;
❚In October, Fidis bought a 40% interest in its Targa Assistance
S.r.l. subsidiary from Europ Assistance Trade.
The Sector’s financing and service operations generated
revenues of 1,339 million euros in 2003, compared with 2,236
million euros in 2002. The main reasons for this decrease are:
a change in the scope of consolidation resulting from the asset
disposals mentioned above; the sale to ACI of a 50% interest
in Targasys in late December 2002; and a drop in revenues
caused by a contraction in business volume that was influenced
by market trends and a marketing strategy focused on helping
the operations servicing sales networks, suppliers and outside
car buyers improve the quality of their loan portfolios.
Operating income totaled 196 million euros (313 million euros
in 2002). This decrease is attributable almost entirely to changes
in the scope of consolidation, since virtually all of the reduction
in revenues generated by continuing activities was offset by
cost savings.
48 Report on Operations Fiat Auto