Chrysler 2005 Annual Report Download - page 52

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Report on Operations Transactions among Group Companies and with Related Parties
Iveco expects a slight increase in market shares, in the framework
of a stable Western European market, especially for its heavy-range
vehicles and buses. Growth is also expected in the rest of the world,
particularly for buses. Additionally, Iveco will focus on manufacturing
efficiencies to offset higher labour and utilities costs. Iveco is planning
major improvements to its product range, including restyling of the
Daily, early introduction of Euro 4- and Euro 5-compliant engines, and
the launch of new special-purpose vehicles.
Overall, the Group expects that all its businesses will achieve sales
volumes in line with the forecast of essentially flat market demand.
Cost-reduction measures are on track. As a result, the Group
confirms its targets for 2006: positive operating cash flow, trading
profit between 1.6 and 1.8 billion euros and net income of about
700 million euros.
Broken down by Sector, full-year 2006 trading margin targets
(trading profit as a percentage of revenues) are as follows:
Autos (excluding Maserati and Ferrari), 0.5% to 1.0%,
CNH, 7.0% to 7.5%;
Iveco, 5.5% to 6.0%; and
Components, 3.5% to 4.0%.
The Fiat Group will continue to implement its strategy of
targeted alliances, in order to reduce capital commitments,
and share investments and risks. Efforts will be made to
complement Fiat’s advanced technological resources with
better quality, commercial distribution and customer service
capabilities.