Chrysler 2008 Annual Report Download - page 84

Report on Operations Iveco 83
In 2008, the Sector placed significant focus on after-sale
service, enhancing the service infrastructure and further
developing the diagnostic capabilities of repair shops. In the
first quarter of 2009, a new system will be launched which will
make it possible to monitor all vehicles being serviced by
Iveco’s primary and secondary networks, with the objective of
concentrating all activities within Iveco and its network so as to
minimize vehicle downtime.
Iveco offers Financial Services in Europe and, through financial
services companies in the Fiat Group Automobiles Sector, in
Latin America and, since the beginning of 2008, China.
In Europe, since 2005 the activity has been managed by Iveco
Finance Holdings Limited (IFHL), a joint venture with Barclays
Group, in which Iveco holds a 49% stake (accounted for using
the equity method). This joint venture supports the Sector’s
European sales through dealer financing and end-customer
financing in France, Germany, Italy, Switzerland and the United
Kingdom.
In Spain, the activity is managed by Transolver Finance Est.
Financiero de Credito S.A., a joint venture with Santander
Group (in which Iveco holds a 50% stake, accounted for using
the equity method). The company offers both dealer and end-
customer financing. In addition, through Transolver Service
S.A., a wholly-owned subsidiary (consolidated on a
line–by–line basis), Iveco offers medium and long-term rentals.
In Switzerland, Austria and Eastern Europe the activity is run
by captive financial services companies (consolidated on a
line-by-line basis).
For subsidiaries alone (consolidated on a line-by-line basis),
the number of financed vehicles more than doubled from 3,077
in 2007 to 6,299 in 2008, with the penetration rate increasing
from 28.3% in 2007 to 39.2% in 2008, on 3,260 new vehicles
(2,845 in 2007).
If the activities of Iveco Finance Holdings Ltd. are added, the
number of financed vehicles increased from 38,605 in 2007 to
43,146 in 2008, with a penetration rate of 28.2% (23.8% in
2007), on 30,738 new vehicles (29,897 in 2007).
In Latin America, the Daily was named “Truck of the Year” by
Autodata magazine, which is the leading automotive
publication in Brazil. The Daily was also named the “Best Large
Van 2008” by the British magazine
What Van? , which came on
the back of being named “Best Light Truck 2008” as part of the
Van Fleet World Honours for the second year in a row. Iveco
Irisbus’ Magelys was named “Tourist Bus of 2009” in Spain by
Viajeros .
In November, Iveco won the Cross Media Interactive Key Award
for Iveco Customer Service’s “Origin 100% Iveco” campaign.
Finally, Iveco won the MediaEye award for marketing and
communication in recognition of the perfect synergy Iveco
achieved between its own values and those of the chosen
spokespeople, the All Blacks.
Services
Iveco Customer Service experienced uneven performance
throughout 2008. In the first half of the year, business volumes
remained essentially in line with the significantly increased
levels recorded in the latter part of 2007. From July onward,
with some exceptions in Eastern Europe and Africa, there was
a slowdown in business, particularly significant in Spain,
reflecting the significantly worsened economic situation, which
had an immediate impact on average mileage leading to a
decline in the demand for spare parts.
There was a significant improvement in the availability of
spare parts throughout Europe, due to improved coordination
with suppliers who, for the most part, had overcome problems
with production capacity experienced in 2007.
In Central and Eastern Europe, the new spare parts distribution
centre in the Czech Republic became operational and is
expected to further improve service for commercial vehicles
and provide spare-parts logistics support for the buses built by
Irisbus in the Czech Republic.
In September 2008, Iveco began distributing spare parts
equipped with radio-frequency identification (RFID) to improve
logistics tracking and to provide a 100% guarantee that the
customer is receiving original Iveco parts.