Chrysler 2007 Annual Report Download - page 62

Significant Events Occurring
since the End of the Fiscal Year
and Business Outlook
Report on Operations Significant Events Occurring since the End of the Fiscal Year and Business Outlook 61
Significant Events Occurring since the End
of the Fiscal Year
The most significant transactions completed by the Fiat Group
during early 2008 are set out below:
■The share buy-back programme continued in the first 11 days
of January, following the decision to extend the Programme
from December 31, 2007 to April 30, 2008. As of February 15,
the total number of ordinary shares purchased from the
beginning of the programme amounted to 31.54 million, for a
total invested amount of 603.4 million euros. The Group
intends to continue its share buy-back programme throughout
2008 and the Board of Directors intends to submit to the next
Annual Stockholders Meeting the renewal of the related
authority.
■On January 11 Magneti Marelli and Sumi Motherson Group
signed an agreement for the creation of a joint venture in India
aimed at the production of automotive components in the area
of lighting and engine control systems. The joint venture’s
products will target the Indian market and local and
international carmakers operating in the territory.
■On January 20, 2008 an agreement was reached between
Federmeccanica (the national labour organisation representing
the metallurgical and mechanical industries with which Group
Companies are affiliated) and the Fim-Cisl, Fiom-Cgil, Uilm-Uil
and Fismic labour unions for the renewal of the National
Collective Labour Agreement for Metalworkers (white and blue
collar) of metallurgical and mechanical industries for
approximately 77,000 Fiat Group employees in Italy. The
agreement will be valid for 30 months (until December 31,
2009) for the wage related provisions and until December 31, 2011
for the regulatory provisions. Wage increases were agreed to for a
total of 127 euros gross per month (these amounts refer to a
worker classified in category 5) granted in three instalments: 60
euros from January 1, 2008, another 37 euros from January 1,
2009 and a further 30 euros from September 1, 2009. Furthermore,
a one-off payment of 300 euros gross will be made in March 2008
to cover the period between July and December 2007. The changes
envisaged in the regulatory provisions include certain measures
regarding working time aimed at improving flexibility (an 8-hour
increase in the amount of overtime that companies may
implement without having to obtain prior consent from worker
representatives); the standardisation of regulatory provisions for
blue and white collar workers that will come into effect on
January 1, 2009; revision and reinforcement of the information and
consultation system, particularly in regard to safety at work; the
definition of employment stabilisation paths for fixed-term and
supply contract workers.
■On January 28 FPT Powertrain Technologies, the Region of
Piedmont, the Province of Biella and the Municipality of
Verrone (Biella) signed a Protocol of Understanding aimed at
boosting and developing the Verrone plant, where a new
transmission named C635 will be produced for mid-sized cars.
It will be offered in three versions: manual, Dual Dry Clutch
(DDCT, robotised transmission with dual dry clutch) and
robotised. It is estimated that FPT Powertrain Technologies will
invest approximately 500 million euros between fixed assets
and research and development costs, which will permit
achieving a production capacity of approximately 800,000
transmissions in 2012. Once it is in full operation, it could
employ 1,100 workers, or about 600 more than current levels.
Furthermore, the obligations imposed by the “Personal Data
Protection Code” (Legislative Decree No.196/2003) were
satisfied in compliance with the provisions of the “Technical
Regulation of Minimum Security Measures” (Appendix B of the
Code). Consequently, the Fiat S.p.A. Security Planning
Document was updated by the addition of the Plan for
additional measures reinforcing security levels in order to
combat the evolution of emerging risk factors.
Business Outlook
The Western European automobile market is expected to
remain stable in 2008.
In this context, Fiat Group Automobiles expects to gain market
share in Italy and Western Europe, continuing to leverage on
the recently introduced Fiat 500, Fiat Bravo, Fiat Linea, on the
2008 new model launches (Alfa Romeo Junior, Lancia Delta
HPE and 500 Abarth), as well as on new engines.
The Brazilian market should continue to grow, posting in 2008 an
increase of more than 10% compared to 2007, and Fiat operations
are expected to maintain their leadership of the Brazilian market.
Higher spending in advertising and network investments will
support Fiat Group Automobiles targeted volume growth of
approximately 200,000 units in 2008.