Chrysler 2007 Annual Report Download - page 70

Report on Operations Fiat Group Automobiles 69
this vehicle make it a totally original product on the minicargo
market. It first went on sale at the end of 2007 in Italy and
Turkey.
As far as product development is concerned, activities in 2007
mainly related to the completion of the Fiat 500, Linea, Fiorino,
Grande Punto Abarth, New Croma, New Lancia Musa models.
Work continued on the development of the new Alfa 149, which
will replace the Alfa 147, the Alfa Junior and the Lancia Delta
HPE. Work also began on the development of the New Panda,
City Car, New Lancia Ypsilon and New Doblò.
The decision taken by Fiat in December to launch an
extraordinary plan for the industrial relaunch of the
Pomigliano d’Arco plant was particularly significant. This
challenging project, which is intended to complete integration
of the plant into the Fiat Group Automobiles manufacturing
system, will be carried out through an important plan of
technological investments totalling 70 million euros. These
investments will be flanked by intensive training programs for
employees, to which must be added another 40 million euros
in extra costs stemming from the suspension of production
(from January 7 to March 2, 2008) necessary to realise the
plan. The objective is to bring the plant to best-in-class
performance levels and ensure that it will be able to meet the
conditions necessary for the allocation of production of new
future models.
Services
In 2007, Customer Services implemented organizational
improvements in view of continually increasing its focus on
customers.
Actions were taken to improve its ability to respond to
customers and promote the success of the dealer and
assistance network. The system for measuring customer
satisfaction was also completed. Dealers are provided with
customer feedback on the reasons for their purchases and
renunciation of Fiat products and services. This enables the
dealers to improve their ability to serve customers and make
sales.
A program to revise services was undertaken in order to meet
customer transportation needs in the event of car repairs, by
providing them with prompt and effective support. In 2007, car
unavailability times were reduced by 25%, while the capacity to
provide customers needing a Fiat Group courtesy car was
increased by 40%.
The Arese Customer Service Center is one of the Group’s most
important tools for managing customer relations. It currently
operates 20 different services covering 13 European markets.
In 2007 the use of innovative contact channels was increased,
including the web, text messages, instant messaging, call me
back, and video calls.
New technologies and tools were implemented for
maintenance and repair in view of streamlining warranty
process support activities. In 2007, Technical Services
significantly improved the services provided to the dealer
network by increasing the number of Technical Support staff
in Europe and creating a new program for specialized
technical training.
In 2007, the Financial Services segment was characterized
principally by the operating start-up of Fiat Group Automobiles
Financial Services (FAFS), the joint-venture set up with the
Crédit Agricole Group (accounted for using the equity method).
The joint venture supports the Sector’s European sales in the
dealer network and end customer financing and medium and
long-term rental segments.
The collaboration with its partner Crédit Agricole has proven
effective, meeting expectations and permitting successful
support of sales and launch of new Sector products. The
volume of financing to the sales networks reached a total of
10,300 million euros (8,910 million euros in 2006); end-
customer financing was provided for the purchase of 467,700
vehicles (457,400 units in 2006) through the grant of 5,520
million euros in loans (5,070 million euros in 2006). In the
rental segment, new rental agreements were made for 64,770
vehicles (60,060 units in 2006), equivalent to a financed value
of 952 million euros (893 million euros in 2006); during the
year, the proprietary fleet average was 140,650 vehicles
(139,170 units in 2006).
The other Financial Services activities are grouped in Fidis
S.p.A., a wholly owned subsidiary of the Sector that is
consolidated on a line-by-line basis, and are focused on
financing Fiat Group sales in Brazil, where the dealer network
financing business reported a volume of 5,320 million euros in