Chrysler 2004 Annual Report Download - page 57

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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.
■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., Comau S.p.A., Business Solutions S.p.A., C.R.F. Società
Consortile per Azioni 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 and other Group
companies), and to secure bank loans (Fiat Auto S.p.A., Teksid
S.p.A., Fiat Partecipazioni S.p.A., Fiat Automoveis S.A., Banco
CNH Capital S.A., CNH America LLC, and other Group
companies), and payment obligations under building rental
contracts (Ingest Facility S.p.A., Fiat Auto S.p.A., Isvor Fiat
Società consortile di sviluppo e addestramento industriale
per Azioni, 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
Information & Communication Services società consortile
per azioni.
■Loans granted to Fiat Ge.Va. S.p.A.
■Purchase of support and consulting services provided by Fiat
Gesco S.p.A. (corporate, fiscal and administrative issues),
KeyG Consulting S.p.A. (administration), Fiat Ge.Va. S.p.A.
(financial services).
■Purchase of inspection and internal auditing services from
Fiat Revisione Interna S.c.r.l.
■Purchase of information technology services provided
by Global Value S.p.A. and eSPIN S.p.A.
■Purchase of external relations services provided by Fiat
Information & Communication Services S.c.p.a.
■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.
Fiat S.p.A., as consolidating company, and almost all its Italian
subsidiaries decided to comply with the fiscal consolidated
report according to articles 177/129 of T.U.I.R. (Italian Tax
Income Consolidation Act).
Transactions with related parties that must be mentioned
include legal professional consultancy services and activities as
secretary of the Board of Directors rendered by Franzo Grande
Stevens to Fiat S.p.A. for 427 thousand 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 a special section of the
Notes to the Consolidated Financial Statements (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:
■partial repayment of capital, insofar as it is buoyant compared
with the small size of investments in equity interests, by IHF
S.A. to the single stockholder Fiat S.p.A.
■sale of maintenance activities at the different plants of the
Sector and metal sheet pressing at the Mirafiori plant from
Comau S.p.A. to Fiat Auto S.p.A. and Fiat GM Powertrain,
for a defined price, on the basis of appropriate accounting
assessments and appraisals of market value carried out by
an independent appraiser.
In 2004, Fiat S.p.A. acquired from Fiat Partecipazioni S.p.A. the
investments this company held in Comau S.p.A., Teksid S.p.A.
and Business Solutions S.p.A. as part of the corporate and legal
streamlining program.
TRANSACTIONS AMONG GROUP COMPANIES
AND WITH RELATED PARTIES
Stock Options Plans 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 Number of Number of
shares held at shares bought shares sold shares held at
First name and last name Description of investments 12.31.2003 in 2004 in 2004 12.31.2004
Luca Cordero di Montezemolo Fiat ordinary 19,172 – – 19,172
Cesare Ferrero Fiat ordinary 1 – – 1