Chrysler 2005 Annual Report Download - page 58

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Report on Operations Fiat Auto
average, are less than two years old and, consequently, are highly
competitive.The competitiveness of the product line is bolstered
by the significant success achieved in terms of safety and customer
satisfaction.Three new models introduced in 2005 - the Fiat Croma,
Alfa 159 and Grande Punto - were awarded five stars, placing them
at the top of the Euro NCAP safety ranking.The Grande Punto was
also honoured with several prizes in Europe, including the Golden
Steering Wheel in Germany and the Auto Europa prize awarded
by the Italian Association of Automotive Journalists (UIGA).
The Fiat Veicoli Commerciali (Fiat Light Commercial Vehicles)
brand also had a very positive year with the launch in October
of the new Doblò, which was awarded the coveted Van of the Year
2006 international prizeand was able to achieve a high level of
market penetration. By the end of 2005, a total of 3 million vehicles
had been produced at the Sevel Val di Sangro plant, which also set
arecord by manufacturing more than 200,000 units in 12 months.
The Sector’s research and development activities focused on
completing the ongoing development of the Grande Punto, Croma,
Alfa 159 and Doblò; continuing the development of the Nuovo
Ducato, Nuovo Scudo and a new car in the International B Segment;
and starting the development of the Nuova Stilo and Fiat 500.
Another area of activity involved basic research in engines
and components for future applications.
Financial Services
In 2005, Sector companies that provide financing to the sales
network handled loans totalling about 9,810 million euros (11,090
million euros in 2004). When combined with other financial
instruments available to provide financing support to the sales
network, these operations generated financing averaging about
3,150 million euros in 2005 (3,660 million euros in 2004).
The reduction in business volume reflects a decrease in sales
in some European countries, a policy designed to reduce and
selectively control dealer inventories and a change in the scope
of consolidation due to the sale of retail financing activities in the
United Kingdom in the fourth quarter of 2004. In Brazil, on the
contrary, lending activity mirrored the positive sales performance
in the local market.
In 2005, the total loan volume handled by the Sector’s activities
that provide financing to suppliers declined to 3,670 million euros
(6,342 million euros in 2004), for an average loan position of 560
million euros (990 million euros in 2004). This decrease reflects
aselective approach to the portfolio of loans held by these
operations and the decision to focus on Fiat Auto’s strategic
suppliers.
In the renting business, Fiat Auto strengthened its position in Italy
by acquiring, at the end of 2005, full control of Leasys, a joint
venture that it had established with Enel and that is active in the
field of companyfleet management.
Savarent continued to performthe function of a captivecompany
that operates through the Fiat Auto dealer network, serving mainly
individuals and small and medium-sizebusinesses.
The work done in previous years to strengthen their sales and
customer supportnetwork enabled these two companies to
end 2005 with a portfolio of more than 39,000 contracts
(+14% compared with 2004).Their rental fleet also increased,
rising to 144,500 vehicles at the end of 2005, or 3% more than
ayear earlier.