Chrysler 2008 Annual Report Download - page 25

Report on Operations Main Risks and Uncertainties to which Fiat S.p.A. and the Group are exposed24
In particular, the Fiat Group operates in a number of emerging
markets, principally Brazil. It is also active in other countries –
such as Turkey, India, China and Russia – through joint
ventures. The Group’s exposure to these countries has
increased in recent years, as the number and importance of
such joint ventures and cooperation agreements has increased.
Unfavourable political or economic developments in any one of
these areas (which may vary from country to country) could
have a material adverse effect on the Group’s activities and
future prospects, as well as its earnings and financial position.
Risks associated with environmental regulation
The Group’s products and operations are subject to numerous
environmental laws and regulations (local, national and
international) which are becoming increasingly stringent in
many countries in which it operates (particularly in the
European Union). Such regulations govern, among other
things, products – with requirements for emissions of polluting
gases, fuels and safety becoming increasingly stricter – and
industrial plants – with requirements for emissions, treatment
of waste and water and prohibitions on soil contamination. To
comply with such regulations, the Group expects to continue to
incur substantial costs in the future.
* * * * *
Fiat S.p.A., as Parent Company of the Group, is exposed in
substance to the same risks and uncertainties as those
described above for the Group.