Chrysler 2007 Annual Report Download - page 68

Report on Operations Fiat Group Automobiles 67
A total of 1,357,000 units were delivered in Western Europe, for
an increase of 5.2% notwithstanding a Western European
market that remained substantially flat with respect to 2006
levels. The Sector’s positive sales performance was due to both
the growing success of the models introduced during the year,
particularly the Fiat Bravo and the Fiat 500, and the continued
success of the models that had been previously introduced,
including the Panda, which retained its leadership position in
the A segment, and the Punto, which was one of the best-
selling models in Europe.
Volumes were up sharply in all principal European countries:
+5.7% in Italy, +14.1% in Spain, +7,6% in France, and +2.1% in
Great Britain, with the exception of Germany where,
notwithstanding a particularly sluggish market, the drop in
volumes was modest (-2.5%).
In Poland volumes rose by 18.6% from 2006.
Outside the European Union, in 2007 Fiat Group Automobiles
intensified its activities on the markets where it has a
consolidated presence, such as Brazil, Argentina, and Turkey,
while simultaneously pursuing growth opportunities on other
emerging markets together with strong local partners.
In Brazil, the Sector delivered 613,100 cars and light
commercial vehicles, thereby increasing its sales by 31.9%
from 2006 and confirming its market leadership. This excellent
result stems primarily from the success of the flex versions (bi-
fuel gasoline/alcohol) of the Palio and the Mille as well as the
Grande Punto, which was introduced on the Latin American
market in 2007 and elected “Carro Do Año 2008” in Brazil and
“Auto Interamericana del Año 2008” by the Interamerican
Federation of Automobile Journalists.
Economic recovery proceeded apace in Argentina: the
automobile market grew by 27.7% from 2006, and Fiat Group
Automobiles achieved a market share of 11.1%, up from 2006
(+0.3 percentage points). Deliveries of automobiles and light
commercial vehicles rose by 29.4% to 56,600 units.
The automobile industry slowed down in Turkey during 2007,
together with the rest of the economy. The automobile and
light commercial vehicle market totalled 594,700 units, down
4.3% from 2006. However, Tofas (the local joint venture in
which Fiat Group Automobiles has a 37.9% stake) reported
a 9.4% sales increase and a total market share of 13.1%, up 1.3
percentage points from the previous year, supported by
introduction of the new Fiat Linea model.
The light commercial vehicle range also scored many
successes in 2007, mainly due to the New Ducato, the New
Doblò, and the New Scudo, which went on sale in January
2007. A total of 387,900 vehicles were delivered, up 19.9% from
2006. In Western Europe, deliveries totalled 238,400 units
(+12.5%). With the exception of Italy, which reported lower
deliveries (-0.8%), the other European countries chalked up an
increase in delivered units: France +32.2%, Spain +30.8%,
Germany +25.7%, and Great Britain +18.2%.
In 2007 the Sector continued pursuing its strategy of targeted
alliances in order to reinforce its position on international
markets.
In August, Fiat Group Automobiles signed a Memorandum of
Understanding with Chery Automobiles, one of the major car
makers in China, to set up a 50-50 passenger car joint-
venture. The company, which will manufacture and distribute
Alfa Romeo, Fiat, and Chery cars, will be operational from
2009.
Fiat Group Automobiles signed a Letter of Intent with the
Russian company Severstal Auto for the creation of a
commercial and industrial joint-venture in Russia. The new
company will be responsible for the sale and marketing of all
Fiat branded vehicles (cars and light commercial vehicles) in
the Russian Federation, as well as for the manufacturing
facility where the Fiat Linea will be assembled starting from
2008.
Fiat withdrew from of the Nanjing-Fiat joint venture in
December, selling its stake to NAC. This decision will enable
Fiat Group Automobiles to operate with full freedom and
concentrate on the restructuring of its automotive business in
China.
On December 28, 2007 the Fiat Group finalised operations
necessary for the establishment of a 50-50 joint venture with
Tata Motors. As of that date, assets and liabilities related to
Fiat Group Automobiles business in India were conveyed to
said joint venture and therefore deconsolidated. Manufacturing
activity, which includes Fiat and Tata branded cars, will be