Chrysler 2004 Annual Report Download - page 8

6
Clearly, in 2004 we laid the groundwork for continued
improvements in our performance in the current year.
The Group strengthened all levels of management. It also
made significant changes in its organization. Fiat Auto adopted
a leaner structure, and Fiat SpA reconfigured the way in which
its corporate functions and operating units interact.
In 2005, these changes will enable us to enhance the
Company’s efficiency and competitiveness, to fully exploit
all available synergies and to bring about a profound
transformation in the mentality of our people.
From an economic standpoint, the work done during
the year helped the Group achieve across-the-board
improvements. All Sectors except Fiat Auto reported a positive
operating result.
In 2004, the Group was faced with the need to change its
top management, following the painful loss of Umberto Agnelli
and the resignation of Giuseppe Morchio. As a result, on May
30, 2004, the Board of Directors appointed a new Chairman and
Vice Chairman and, on June 1, 2004, a new Chief Executive
Officer.
Dear Stockholders:
In 2004, Fiat worked hard and with determination
to overcome the obstacles in its path, as it faced strong
competition in the market at the same time that it was busy
resolving structural problems. As a result, the data that we are
presenting to you are those of a difficult and challenging year
during which the Group nevertheless took a decisive step on
the path to recovery.
We delivered on all of our stated objectives: attained
operating breakeven, sharply reduced negative cash flow and
maintained a strong liquidity position, which amounted to 5.3
billion euros by year’s end. These improvements were achieved
despite heavy restructuring costs and extraordinary charges of
about 1 billion euros, which were attributable in large part to
Fiat Auto.
But not all problems have been solved. At December 31,
2004, the Group’s net financial position was negative by about 5
billion euros, and its statement of operations showed a net loss
of 1.5 billion euros, which, however, was smaller than in 2003.
As we have been saying, Fiat is changing its course, and
2004 will be the last year of net losses for the Group.
OVERVIEW