Chrysler 2007 Annual Report Download - page 183

182 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
prosecution agreement which would impose upon CNH and Iveco a payment of a fine. The total amount of the disgorgement and
fines which the SEC and DOJ initially requested is over $20 million, and this risk has been taken into account in measuring
provisions. Fiat intends to continue such discussions with the SEC and DOJ but management is currently unable to predict the
outcome, if any, of such discussions.
33. Segment reporting
Information by business and geographical area is disclosed in accordance with IAS 14 – Segment reporting , and is prepared in
conformity with the accounting policies adopted for preparing and presenting the Consolidated financial statements of the Group.
The primary reporting format is by business segment, while geographical segments represent the secondary reporting format.
This decision is based on the identification of the source and nature of the Group’s risks and returns, which determine how the
Group is organised and define its management structure and its internal financial reporting system.
Business segment information
The internal organisation and management structure of the Group throughout the world are based on the business segment to
which entities and divisions belong. In addition, the Group has investments in holding entities and service providers whose activity
is different from those of the industrial businesses. The following descriptions provide additional detail of this.
The Fiat Group Automobiles Sector operates internationally with the major brands Fiat, Abarth Lancia, Alfa Romeo and Fiat
Professional, and manufactures and markets automobiles and light commercial vehicles. It also provides financial services through
the Fiat Group Automobiles Financial Services joint venture with the Crédit Agricole group.
The Maserati Sector produces and markets luxury sports cars with the brand Maserati.
The Ferrari Sector consists of the manufacturing and marketing of luxury sports cars with the Ferrari brand and the management of
the Formula One racing cars. It also provides financial services relating to the sale of automobiles.
The Agricultural and Construction Equipment Sector (CNH – Case New Holland) manufactures and sells tractors and Agricultural
equipment under the CaseIH and the New Holland brands and Construction equipment under the Case and New Holland brands.
The Sector also provides financial services to its end customers and dealers.
The Trucks and Commercial Vehicles Sector (Iveco) produces and sells trucks and commercial vehicles, mainly in Europe, (under the
Iveco brand), buses (under the Iveco Irisbus brands) and special vehicles (under the Iveco, Magirus and Astra brands). In addition,
Iveco provides financial services to its customers and dealers mainly through Iveco Finance Holdings Ltd., a company 51% owned
by the Barclays group and 49% by Iveco.
The FPT Powertrain Technologies Sector manufactures and sells car engines and transmissions. Starting from 2006 the Sector also
includes Iveco and C.R.F. powertrain activities.
The Components Sector (Magneti Marelli) produces and sells components for lighting systems, engine control units, suspension
and shock absorbers systems, electronic systems and exhaust systems.
The Metallurgical Products Sector (Teksid) produces components for engines, cast-iron components for transmissions gearboxes
and suspensions, and aluminum components.