Chrysler 2008 Annual Report Download - page 193

30. Guarantees granted, commitments and contingent liabilities
Guarantees granted
At 31 December 2008, the Group has provided guarantees on the debt or commitments of third parties or jointly controlled and
associated entities totalling €569 million, which has fallen from the amount of €725 million at 31 December 2007 following the
repayment of certain guaranteed loans by joint venture companies.
Other commitments and important contractual rights
The Group has important commitments and rights deriving from outstanding agreements, summarised in the following.
Ferrari
On 24 July 2008 the expiry date of the call option held by Mubadala Development Company PJSC on 5% of Ferrari S.p.A.’s share
capital was extended. This option is now exercisable between 1 January 2010 and 31 July 2010 at a price of €302.07 per share (for a
total of €122.4 million) less any dividends which may be distributed.
Teksid
Fiat S.p.A. is subject to a put contract with Renault in reference to the original investment of 33.5% in Teksid, now 15.2%. In
particular, Renault would acquire the right to exercise a sale option to Fiat on its interest in Teksid, in the following cases:
in the event of non-fulfilment in the application of the protocol of the agreement and admission to receivership or any other
redressement procedure;
in the event Renault’s investment in Teksid falls below 15% or Teksid decides to invest in a structural manner outside the foundry
sector;
should Fiat be the object of the acquisition of control by another car manufacturer.
The exercise price of the option is established as follows:
for the original 6.5% of the share capital of Teksid, the initial investment price as increased by a given interest rate;
for the remaining amount of share capital of Teksid, the share of the accounting net equity at the exercise date.
Sales of receivables
The Group has discounted receivables and bills without recourse having due dates after 31 December 2008 amounting to €5,825
million (€7
,044 million at 31 December 2007, with due dates after that date), which refer to trade receivables and other receivables
for €4,054 million (€5,524 million at 31 December 2007) and receivables from financing for €1,771 million (€1,520 million at 31
December 2007). These amounts include receivables, mainly from the sales network, sold to jointly-controlled financial services
companies (FAFS) for €3,181 million (€3,817 million at 31 December 2007) and associated financial service companies (Iveco
Finance Holdings, controlled by Barclays) for €752 million (€869 million at 31 December 2007).
Fiat Group Consolidated Financial Statements at 31 December 2008192