Chrysler 2008 Annual Report Download - page 88

Report on Operations Magneti Marelli 87
The Sector furthered its activities in Slovakia with start up
investments in the production of engine controls.
Highlights of the activities of the various business lines are
outlined below.
Lighting
Revenues totalled €1,524 million in 2008, down 5.6% from the
previous year. The overall reduction in sales volumes
attributable to the global financial crisis and spiralling oil
prices, impacted performance in the US market for the entire
second half of 2008 and in the European and Asian markets for
the last four months. Volumes for taillamps, however, went
against the trend, rising in absolute terms.
There was intense innovation activity throughout the year
focused on Full LED headlamp technology, the bihalogen
projection module, LED taillamps, flexboard technologies for
LED applications, as well as light curtain and light guide
technologies.
Significant new orders were received during the year for
headlamps and taillamps for the Alfa MiTo and for Mercedes,
BMW and Opel models, as well as headlamps for Volkswagen-
Audi and Land Rover.
Operating Performance
Despite the impact of the global economic and financial crisis,
particularly in the last quarter of 2008, Magneti Marelli ended
the year with revenues, on a comparable scope of operations,
substantially in line with the previous year.
The increase in absolute terms was due to the inclusion of the
Plastic Components and Modules business (producer of plastic
components for automobiles) in the Sector’s scope of
consolidation from April 2008.
During 2008, the Sector entered into a number of important
agreements to support growth in new strategic markets.
In April, Magneti Marelli and Sumi Motherson Group
established the joint venture Magneti Marelli Motherson India
Holding B.V. for the production of automotive lighting and
engine control systems in India.
In May, two further joint ventures were established in India:
Magneti Marelli SKH Exhaust Systems Private Limited and SKH
Magneti Marelli Exhaust Systems Private Limited, which will
produce exhaust systems for Maruti-Suzuki and Fiat-Tata.
As part of the agreement between Magneti Marelli and
Endurance Technologies for the production of shock absorbers
in India and Thailand, in July the joint venture Endurance
Magneti Marelli Shock Absorbers Private Limited was
established.
In September, Magneti Marelli, Iveco and Serbia’s Minister of
Economy and Regional Development signed a Memorandum of
Understanding as the basis for potential cooperation in the
production of buses, special use vehicles and automotive
components.
Also in September, Magneti Marelli signed an agreement with
the Indian group Unitech Machines Limited to establish a joint
venture for the design, manufacture and assembly of electronic
automotive components.
Highlights
(€ millions) 2008 2007
Net revenues 5,447 5,000
Trading profit 174 214
Operating profit (*) 93 209
Investments in tangible and intangible assets 474 319
- of which capitalized R&D costs 118 92
Total R&D expenses (**) 268 221
No. of employees at year end 33,216 27,962
(*) Including restructuring costs and unusual income/(expense).
(**) Includes capitalised R&D and R&D charged directly to the income statement.
Components – Magneti Marelli