Chrysler 2008 Annual Report Download - page 323

31. Significant non-recurring transactions
Pursuant to the Consob Communication of 28 July 2006, in 2008 Fiat S.p.A. has not taken part in any significant non-recurring
transaction as defined in such Communication.
32. Transactions resulting from unusual and/or abnormal operations
Pursuant to the Consob Communication of 28 July 2006, in 2008 Fiat S.p.A. did not take part in any unusual and/or abnormal
operations as defined in that Communication.
33. Subsequent Events
On 20 January 2009, Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority
owner of Chrysler LLC, announced the signing of a non-binding term sheet for the establishment a global strategic alliance. On the
basis of the term sheet, the alliance, to be a key element of Chrysler’s viability plan, would provide Chrysler with access to
competitive, fuel-efficient vehicle platforms, powertrains, and components to be produced at Chrysler manufacturing sites. Fiat
would also provide distribution capabilities in key growth markets, as well as substantial cost-saving opportunities. In addition, Fiat
would provide management services, as required, in support of Chrysler’s submission of a viability plan to the U.S. Treasury. The
alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to fully optimize
their respective manufacturing footprints and global supplier bases. As consideration for the Group’s contribution of strategic
assets – consisting of product and platform sharing (including city and compact segment vehicles), technology sharing (including
fuel efficient and environmentally friendly powertrain technologies), and access to additional markets (including distribution for
Chrysler vehicles in markets outside of North America) - Fiat would receive an initial 35 percent equity interest in Chrysler. The
alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future. The
proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler and completion is
subject to due diligence and regulatory approvals, including the approval of the U.S. Treasury.
During January, the three leading credit rating agencies announced that they had placed Fiat’s long and short-term ratings under
review: Moody’s Investors Services placed the ratings under review with a possible downgrade; Standard & Poor’s Rating Services
placed them on CreditWatch with negative implications (together with the long-term rating for CNH Global N.V.) and Fitch Ratings
placed them on Rating Watch Negative.
Fiat S.p.A. Statutory Financial Statements at 31 December 2008322