Chrysler 2005 Annual Report Download - page 72

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Report on Operations Business Solutions
Operating Performance
In 2005, the Sector further accelerated its efforts to concentrate
on the captive market, confirming the strategy outlined in 2004.
Excluding the impact of changes in the scope of consolidation,
Business Solutions limited the shortfall in revenues to approximately
5%, a decrease attributable to reassignments of the services
provided to Group companies, which brought less administrative
services to the Sector.
The Sector operates through the following units:
Human Resources:This unit provides payroll and HR services.
The unit was radically restructured in 2005, with the sale of
companies operating on the non-captive market (in particular
the sale of WorkNet, atemporaryemployment agency).
Facility Management:Through Ingest Facility S.p.A., the unit
handles regular and extraordinary maintenance of industrial
and non-industrial buildings.
Administration: During 2005, parameters and boundaries for the
unit’swork for the Group were reviewed, clarifying service levels
and mutual responsibilities.This approach rationalised the unit’s
activities, cutting volumes but boosting efficiency.
I.C.T. - Information and Communication Technology:This unit
has been deeplyaffected byrestructuring in order to improve
efficiency and competitiveness. As part of this effort, an
agreement was reached between Fiat and IBM at the end of
June which, among its other provisions, enabled Business
Solutions to dispose of its equity investments in Global Value
Services and Global Value S.p.A. Also as part of the unit’s
reorganisation, an agreement (subject to approval from the
antitrust authorities, which was obtained in February 2006)
with British Telecom was signed in December 2005 for the
sale of Atlanet, a provider of fixed telephony services and
connectivity in general. Fiat’s connectivity needs will be served
byBritish Telecom in the coming years.
Services
Business Solutions
Highlights
(in millions of euros) 2005 2004
Net revenues 752 976
Trading profit 35 41
Operating result (*) 734
Investments in tangible and intangible assets 19 25
Employees at year-end (number) 5,436 6,519
(*) Including restructuring costs and unusual income (expenses).