Chrysler 2008 Annual Report Download - page 37

Report on Operations Financial Review – Fiat Group36
Introduction
Principal changes to the scope of consolidation in 2008
Effective 1 January 2008, the Fiat Group consolidated the
Ergom Group (producer of automotive plastic components
acquired on 6 December 2007) on a line-by-line basis. As of 1
April 2008, these activities were included in Magneti Marelli’s
scope of consolidation.
On 20 March 2008, as part of the agreement to purchase an
engine plant in Campo Largo (Brazil), FPT Powertrain
Technologies acquired 100% of Tritec Motors Limitada from
Chrysler L.L.C. and subsequently changed its name to FPT
Powertrain do Brasil - Industria e Comércio de Motores Ltda. In
the second quarter of 2008, the Group completed the purchase
accounting for this acquisition, including conversion of the
acquired company's financial statements to IFRS, and
consolidated it on a line-by-line basis from 1 April 2008.
In the third quarter of 2008, as part of the shareholder
restructuring of the joint ventures between FPT, CNH and
Cummins in the production of diesel engines, the Group
acquired the remaining one-third of shares in EEA (European
Engine Alliance). Concurrent with that transaction, CNH sold its
shareholding in the 50/50 joint venture Consolidated Diesel
Company.
In the third quarter of 2008, the sale of the entire interest in
Teksid Aluminum Getti Speciali S.r.l. (included under Assets
held for sale in the consolidated financial statements for the
year ended 31 December 2007) was completed.
As part of the adoption of IFRS 8 –
Operating Segments , the
businesses of the Publishing and Communications Sector were
aggregated with Other Businesses, due to their small relative
weighting within the Group. The corresponding amounts for
2007 have, consequently, been reclassified.
Financial Review – Fiat Group