Chrysler 2008 Annual Report Download - page 195

The question relating to the participation of certain Fiat Group companies, belonging to the CNH and Iveco Sectors, in the Oil-for-
Food Program was concluded in 2008 with signing of two settlement agreements with the SEC and the US Department of Justice
(DOJ). Following the report presented in October 2006 by the Independent Inquiry Committee into the United Nations Oil-for-Food
Program on the conduct of the approximately 2,000 companies involved in the Program, between 1999 and 2002, which alleges that
certain of these companies were party to contracts where sums of money were paid inappropriately to the Iraqi government at the
time, in February 2006 the SEC initiated an investigation into a large number of companies, including some belonging to the Fiat
Group, and the US DOJ also subsequently instituted a similar initiative. The Fiat Group closed the matter with the US authorities,
with whom it has cooperated fully, by coming to a settlement agreement in 2008 which led to payment by Group companies
totalling €13 million (equivalent to US$17 million, provisions were made in the 2007 Consolidated financial statements based on an
estimated potential liability of over US$20 million). The settlement papers acknowledge Fiat’s high level of cooperation and the fact
that the Group has strengthened its compliance programmes and internal control system considerably since the period in which
the events took place.
31. Segment reporting
The operating segments through which the Group carries out its activities are based on the internal reporting used by the Group’s
Chief Executive Officer to make strategic decisions. That reporting, which reflects the Group’s current organisational structure, is
broken down by the various products and services offered by the Group and prepared in accordance with the accounting policies
described under Significant Accounting Policies above.
The individual operating segments derive revenues from their usual production and sales activities as follows:
Fiat Group Automobiles derives its revenues from the production and sale of passenger cars and light commercial vehicles, in
addition to the provision of financial services associated with the sale of those vehicles in markets outside of the European Union.
Financial services activities within the European Union are, however, carried out through a 50/50 joint venture between Fiat Group
Automobiles Financial Services and the Crédit Agricole group.
The Maserati segment derives its revenues from the production and sale of Maserati-brand luxury sport cars.
The Ferrari segment derives its revenues from the production and sale of Ferrari-brand luxury sport cars, in addition to
management of the Formula 1 team and financial services offered in conjunction with its vehicle sales.
The Agricultural and Construction Equipment segment (CNH-Case New Holland) is active globally in the design, production and
sale of agricultural and construction equipment. This segment also provides financial services to its end customers and dealers.
The Trucks and Commercial Vehicles segment (Iveco) derives its revenues from the production and sale, predominantly in Europe,
of commercial vehicles, buses and special use vehicles. The segment also offers financial services directly to its customers and
dealers in Eastern Europe, while in Western Europe they are offered through Iveco Finance Holdings Ltd., which is owned 51% by
the Barclays Group and 49% by Iveco.
The FPT Powertrain Technologies segment (FPT) derives its revenues from the production and sale of engines and transmissions
for passenger and commercial vehicles (P&CV), in addition to the powertrain activities of Iveco (Industrial & Marine) and Centro
Ricerche Fiat.
Fiat Group Consolidated Financial Statements at 31 December 2008194