Chrysler 2009 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... Nizza, Turin at 11 a.m. on 25 March 2010, at first call, or on 26 March, at second call, to vote on the following: AGENDA 1. Motion for approval of the Statutory Financial Statements at 31 December 2009 and allocation of net profit for the year. 2. Authorisation for the purchase and disposal of own...

  • Page 3
    ... 116 119 Board of Directors and Auditors Letter from the Chairman and the Chief Executive Officer The Group at a glance Group structure Our brands and products Fiat Group around the world Innovating for growth A responsible commitment Report on operations Highlights Shareholders Key events in 2009...

  • Page 4
    ... Statement of Financial Position pursuant to Consob Resolution No. 15519 of 27 July 2006 Consolidated Statement of Cash Flows pursuant to Consob Resolution No. 15519 of 27 July 2006 Notes to the Consolidated Financial Statements Appendix I - The Companies of the Fiat Group Appendix II - Information...

  • Page 5
    ...Tata Mario Zibetti (2) (3) Secretary of the Board Franzo Grande Stevens (1) (2) (3) Member of the Nominating, Corporate Governance and Sustainability Committee Member of the Internal Control Committee Member of the Compensation Committee BOARD OF STATUTORY AUDITORS Regular Auditors Riccardo Perotta...

  • Page 6
    5

  • Page 7
    ... EXECUTIVE OFFICER Dear Shareholders, 2009 was a particularly difficult year for the industrial sector globally and, consequently, also for the Fiat Group. The economic crisis severely impacted all of our markets, pushing demand to extremely low levels and, for certain businesses, such as the truck...

  • Page 8
    ...2009, an agreement was signed with Guangzhou Automobile Group for the establishment of a 50/50 joint venture in China which, beginning in mid-2011, will produce engines and passenger cars for the local market. Once fully operational, the plant will have a production capacity of 140 thousand vehicles...

  • Page 9

  • Page 10
    THE GROUP AT A GLANCE 12 Group structure 14 Our brands and products 22 Fiat Group around the world 24 Innovating for growth 26 A responsible commitment

  • Page 11
    ... RESULTS GROUP REVENUES E50.1 BILLION TRADING PROFIT E1.1 BILLION NET LOSS E0.8 BILLION NET INDUSTRIAL DEBT E4.4 BILLION LIQUIDITY E12.4 BILLION 117 R&D CENTRES 190 NATIONAL MARKETS 188 PLANTS 14,000 INDIVIDUALS DEDICATED TO INNOVATION 190,014 EMPLOYEES E1,692,000,000 FOR RESEARCH AND DEVELOPMENT...

  • Page 12
    ... of the improvement to IAS 16 in 2009, net revenues for 2008 were increased by E184 million NET (DEBT)/CASH (E million) PROFIT/(LOSS) (E million) (15,898) 2009 2008 (17,954) (5,949) 2008 2007 (10,423) 355 -20,000 -17,500 -15,000 -12,500 -10,000 Fiat Group -7,500 -5,000 -2,500 0 500 2007 -1,000...

  • Page 13
    12 THE GROUP AT A GLANCE GROUP STRUCTURE GROUP STRUCTURE

  • Page 14
    13 1.1 - QUADRO GENERALE DI RIFERIMENTO CONGIUNTURALE ED EVOLUZIONE DEI MERCATI FINANZIARI

  • Page 15
    ... and sells cars, trucks, agricultural and construction equipment, engines, transmissions and components, with an emphasis on technological innovation and eco-compatibility. The Group carries out industrial and financial services activities in the automotive sector through companies located in...

  • Page 16
    ... commercial vehicles was created to partner small and large companies in growing their businesses. Customers seeking productivity, ease of use and fuel efficiency rely on the know-how and innovation of Fiat Professional, an ally for businesses as they confront the challenges of the market. Maserati...

  • Page 17
    ...to telescopic handlers. Case dealers work in close professional partnership with their customers, providing excellence in equipment and after-sales service, industry-leading warranties and flexible financing. Kobelco Kobelco's success was built through a striving for total customer satisfaction. The...

  • Page 18
    17

  • Page 19
    18

  • Page 20
    ...) This Sector operates internationally and develops, produces and sells an extensive range of trucks and buses under the following brands: Iveco A range of light, medium and heavy commercial and industrial vehicles for transportation and distribution of goods, which are cost effective to operate and...

  • Page 21
    ... of experience; continuous technology upgrades; high level of automation; investment in research and development to improve quality standards; and, close integration with the product development activities of customers. Comau Comau makes "the machines that make machines": body welding and assembly...

  • Page 22
    21

  • Page 23
    .... By employing a global vision but interacting at the local level, the Fiat Group has prepared itself to confront new challenges, to achieve the maximum in each market and to react rapidly to the needs of its millions of customers. REVENUES BY DESTINATION EMPLOYEES WORLDWIDE NORTH AMERICA EUROPE...

  • Page 24
    23 PLANTS NORTH AMERICA EUROPE 16 57 REST OF WORLD 24 ITALY 64 MERCOSUR 27 R&D CENTRES NORTH AMERICA EUROPE 15 33 REST OF WORLD 11 ITALY 48 MERCOSUR 10

  • Page 25
    ... several strategic areas: new production methodologies and processes to reduce time to market; research to enhance vehicle performance, safety and versatility and reduce environmental impacts; development of advanced telematic platforms which offer solutions to reducing traffic congestion. Using the...

  • Page 26
    25

  • Page 27
    ..., Corporate Governance and Sustainability Committee. The Committee evaluates proposals related to strategic guidelines on sustainability-related issues, presenting opinions to the Board of Directors, as necessary, and reviewing the annual Sustainability Report. Every year, the Fiat Group prepares...

  • Page 28
    ... and up-to-date information, a Sustainability website was also created during the year. The site provides in-depth information on a variety of sustainability issues and the Sustainability Report can also be viewed in an interactive version or downloaded. The site was named "Best Improver in Italy...

  • Page 29

  • Page 30
    ... Incentive plans based on financial instruments 83 Transactions between Group companies and with related parties 84 Subsequent events and outlook 86 Operating performance by Sector 87 93 95 97 101 107 110 114 115 Fiat Group Automobiles Maserati Ferrari Agricultural and Construction Equipment Trucks...

  • Page 31
    .../(loss) per savings share (E) Investments in tangible and intangible assets of which: capitalised R&D costs R&D expenditure Total assets Net (debt)/cash of which: Net industrial (debt)/cash Total equity Equity attributable to owners of the parent No. of employees at year end 2009 50,102 1,058...

  • Page 32
    ... in the Investor Relations section of the Group website (www.fiatgroup.com), which provides historic financial data and highlights, investor presentations, quarterly publications, official communications and real-time trading information for Fiat shares. Shareholders can also contact the company at...

  • Page 33
    ... the Nikkei 19%. During this period, Fiat shares more than doubled (+123%) over the closing price for 2008 (best performer in 2009 against European peers). MAJOR SHAREHOLDERS At the date of this Report, Fiat had a total of 1,092,247,485 ordinary shares outstanding and the following institutions held...

  • Page 34
    33 MONTHLY MINIMUM AND MAXIMUM PRICE IN 2009 (figures in E) FIAT ORDINARY 14 12 10 8 6 4 2 01 02 03 04 05 06 07 08 09 10 11 12 FIAT SAVINGS 8 FIAT PREFERENCE 8 7 6 7 6 5 5 4 4 3 2 1 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 3 2

  • Page 35
    34 REPORT ON OPERATIONS KEY EVENTS IN 2009 KEY EVENTS IN 2009 JANUARY The new Quattroporte Sport GT S, the best synthesis ever achieved by Maserati between luxury sedan and performance sports car, presented at the Detroit Motor Show. JANUARY Fiat Linea wins two awards in India: "Car of the Year" ...

  • Page 36
    ... including long-reach, mass and compact models, with increased fuel efficiency and reduced noise levels. APRIL Fiat 500 named "2009 World Car Design of the Year". The Sedici is upgraded with interior and exterior styling modifications and two new Euro 5 engines. Presentation of the Panda Panda Cross...

  • Page 37
    36 REPORT ON OPERATIONS KEY EVENTS IN 2009 JUNE The European Investment Bank (EIB) and Fiat Group sign â,¬400 million loan agreement. The proceeds will be used to finance certain of the Group's research and development projects. As part of the World Class Manufacturing process, two FGA plants ...

  • Page 38
    ...MultiAir, the first application of this revolutionary technology developed for gasoline engines, and the 170 hp "Quadrifoglio Verde", a pure-bred sports car with the highest specific output ever recorded by an Alfa Romeo. Launch of the Fiorino Metano, a new bifuel (CNG/gasoline) vehicle which is the...

  • Page 39
    ... in North America and Australia. North American launch of the new Magnum with CVT transmission and output range of 180-225 hp. Puma upgraded with output range of 125-192 hp. MultiAir wins the "Engine Development Team of the Year" award from Automotive Testing Technology International. OCTOBER The...

  • Page 40
    ...of new Fiat Doblò, with renewed styling, range of engines and technical specifications. In India, three tractor models are launched in the TT range with output ranging from 35-50 hp in both two and four wheel-drive. Chief Executive Sergio Marchionne meets in Rome with representatives of the Italian...

  • Page 41
    40 REPORT ON OPERATIONS DATI ECONOMICI E PATRIMONIALI PER SETTORE DI ATTIVITÀ

  • Page 42
    ... and Construction Equipment (CNH) Trucks and Commercial Vehicles (Iveco) FPT Powertrain Technologies Components (Magneti Marelli) Metallurgical Products (Teksid) Production Systems (Comau) Other Businesses and Eliminations GROUP (*) Total operating liabilities 2009 2008 16,137 15,184 511...

  • Page 43
    ... and financial position. Similar risks exist by virtue of the fact that the Fiat Group operates in industries which have historically been highly cyclical and which tend to reflect the general performance of the economy, in certain cases even amplifying the effect. RISKS ASSOCIATED WITH FINANCING...

  • Page 44
    ... its capital commitments, reducing risk and accessing new markets and it intends to continue seeking opportunities for further such alliances. In 2009, Fiat signed an agreement with Chrysler Group LLC to create a global strategic alliance, and subsequently launched related operating activities...

  • Page 45
    ..., safety, customer service and financial services. Competition, particularly in pricing, has increased significantly in several of the Group's areas of activity in recent years. In addition, partly as a result of the contraction in demand for automobiles, current global production capacity for...

  • Page 46
    ... profitable. In particular, failure to develop and offer innovative products that compare favourably to those of the Group's principal competitors in terms of price, quality, functionality and features, or delays in bringing strategic new models to market, could result in reduced market share...

  • Page 47
    ..., and developing materials and processes, optoelectronics and microtechnologies. C.R.F. has achieved significant results over the years, as demonstrated by the 29 new patent applications filed in 2009, bringing the total number of patents it holds to over 2,300, with a further 500 patents currently...

  • Page 48
    ... in terms of the design and implementation of collaborative systems (based on communication between vehicles and infrastructure) to enable safe and sustainable mobility in the future and services for end customers (based on the Blue&MeTM platform) that assist drivers to adopt a driving style which...

  • Page 49
    ... use of wireless Vehicle-to-Vehicle and Vehicle-to-Infrastructure communication technologies. The European Commission considers road safety and effective traffic management to be high-priority issues and, as such, has given significant support to various research projects focused on the development...

  • Page 50
    ...) and FPT Powertrain Technologies (New Engine Family Iveco, NEF, Turin). At each site, concrete opportunities were identified to reduced energy consumed by production processes through, for example, optimised control of machine operating cycles and the most appropriate tooling (in the case of NEF...

  • Page 51
    ...an automotive line. Vehicle research. In 2009, research and development activities at Elasis ranged from light commercial vehicles to high-performance cars. Vehicles included the new Fiat Fiorino, the new Fiat Doblò, the Alfa Romeo 8C Spider and the Ferrari 458 Italia. Elasis worked on the planning...

  • Page 52
    ... first application will be on the Alfa MiTo in 2010. ICT for product/process development. Elasis continued to play a key role in supporting Fiat Group companies in the definition of methods and solutions for product development and related processes. Its involvement in Product Lifecycle Management...

  • Page 53
    ... for all personnel management decisions. During 2009, a new application was launched in several countries (first phase of roll-out), that will enable information on individuals and entities within the Fiat Group to be integrated into a single, global database by year-end 2010. Training Investment in...

  • Page 54
    ... agreements being reached with trade unions on pay and employment conditions in countries where Group companies are located. Social dialogue At the European level, the Fiat Group European Works Council (EWC), a representative body for Group employees in the European Union, took part in information...

  • Page 55
    ... of the Group's Italian plants, resulting in a reduction in the use of the temporary layoff benefit scheme and, in some cases, making it necessary to resort to overtime, or to transfer or second employees from other sites and companies where production stoppages were in effect, in order to respond...

  • Page 56
    ...was signed. This agreement applies to the majority of Group managers in Italy. The new agreement is valid until 31 December 2013 and covers both pay and employment conditions. At Group level, on the basis of the Agreement of 17 July 2009 (applicable to the majority of employees of Group companies in...

  • Page 57
    ... part of the Plastic Components & Modules line. FINANCIAL REVIEW Operating Performance (â,¬ million) Net revenues Cost of sales Selling, general and administrative Research and development Other income/(expense) TRADING PROFIT/(LOSS) Gains/(losses) on disposal of investments Restructuring costs...

  • Page 58
    ... demand increasing slightly (+0.5%) over 2008. Fiat Group Automobiles' strong offering of environmentally-friendly cars enabled the Sector to fully benefit from eco-based government incentives. The Sector continued to make positive share gains in the passenger vehicle market, reaching 32.8% in Italy...

  • Page 59
    ...where CNH has a limited presence) and Western Europe, in a highly competitive environment driven by aggressive destocking actions. Trucks and Commercial Vehicles Iveco reported 2009 revenues of â,¬7,183 million, down 34.1% year-over-year, with lower sales volumes reflecting the negative market trend...

  • Page 60
    ...% of total revenues (22% for 2008). The Passenger & Commercial Vehicles product line reported revenues of â,¬3,372 million, a 7.6% decline over 2008, which was contained by a recovery for passenger cars in many major markets during the second half of 2009. Sales to Fiat Group companies accounted for...

  • Page 61
    60 REPORT ON OPERATIONS FINANCIAL REVIEW FIAT GROUP Trading profit/(loss) by Business (â,¬ million) Automobiles (Fiat Group Automobiles, Maserati, Ferrari) Agricultural and Construction Equipment (CNH - Case New Holland) Trucks and Commercial Vehicles (Iveco) Components & Production Systems (FPT...

  • Page 62
    ... and increased production and purchasing efficiencies enabled the Sector to contain the impact of lower revenues. Teksid closed the year with a trading loss of â,¬12 million (profit of â,¬41 million for 2008), reflecting the significant contraction in volumes. Comau reported a trading loss of...

  • Page 63
    ...to-market value of two stock option-related equity swaps (a â,¬263 million loss in 2008). Excluding the effect of those equity swaps, financial expense for the year increased â,¬186 million, primarily due to the higher level of debt existing during the year. Investment income for 2009 totalled â,¬27...

  • Page 64
    ..." reported in the 2008 Consolidated Financial Statements was reduced by â,¬218 million and "Cash used in investing activities" was reduced by the same amount. In 2009, â,¬4,601 million in cash was generated from operating activities, consisting of a â,¬2.6 billion decrease in working capital...

  • Page 65
    ... sales network, of â,¬2,530 million (â,¬3,181 million at 31 December 2008) sold to jointly-controlled financial services companies (FGA Capital group) and of â,¬440 million (â,¬752 million at 31 December 2008) sold to associate financial services companies (Iveco Finance Holdings Limited). Working...

  • Page 66
    ... December 2008. Positive cash flow from operating activities and portfolio decreases for the financial services companies during 2009 more than offset capital expenditure and currency translation differences. (â,¬ million) Financial payables Asset-backed financing Other Current financial receivables...

  • Page 67
    ... income statement, statement of financial position and statement of cash flows between "Industrial Activities" and "Financial Services". The latter includes the retail finance, leasing and rental companies of CNH - Case New Holland, Iveco, Fiat Group Automobiles and Ferrari. Financial Services...

  • Page 68
    ... 2008 (*) Financial Services 1,535 1,047 176 12 324 4 5 (3) 320 78 79 (1) 398 98 300 4 304 (â,¬ million) Net revenues Cost of sales Selling, general and administrative Research and development Other income/(expense) TRADING PROFIT/(LOSS) Gains/(losses) on disposal of investments Restructuring costs...

  • Page 69
    ... Case New Holland) Trucks and Commercial Vehicles (Iveco) Holding and Other Companies, and Eliminations 2009 35 6 153 (26) 168 2008 Change 40 2 265 18 (1) 324 -5 4 -112 -44 1 -156 Total Trading profit for the Financial Services businesses of Fiat Group Automobiles totalled â,¬35 million for 2009...

  • Page 70
    ... Property, plant and equipment Investment property Investments and other financial assets Leased assets Defined benefit plan assets Deferred tax assets Total non-current assets Inventory Trade receivables Receivables from financing activities Current taxes receivable Other current assets Current...

  • Page 71
    ... a pre-determined use of â,¬530 million (â,¬473 million at year end 2008), primarily for the Financial Services companies and allocated to servicing securitisation vehicles (included under asset-backed financing). Net debt for the Financial Services companies at 31 December 2009 reflected a decrease...

  • Page 72
    ...the improvement to IAS 16 in 2009, amounts previously reported for 2008 "Cash used in operating activities" and "Investments in property, plant and equipment and intangible assets (net of vehicles sold under buy-back commitments or leased)" were reduced by â,¬6 million and â,¬7 million, respectively...

  • Page 73
    ... taxes Changes relating to buy-back commitments (b) Changes relating to operating leases (c) Change in working capital TOTAL D) CASH FROM/(USED IN) INVESTING ACTIVITIES: Investments in: Property, plant and equipment and intangible assets (net of vehicles sold with buy-back commitments or leased...

  • Page 74
    ... on the new 3-year â,¬1 billion syndicated loan facility and â,¬0.4 billion in financing from the European Investment Bank), net of dividend payments, primarily to holders of Fiat S.p.A. savings shares. Financial Services Cash and cash equivalents for Financial Services activities totalled â,¬1,407...

  • Page 75
    74 REPORT ON OPERATIONS FINANCIAL REVIEW FIAT GROUP

  • Page 76
    75

  • Page 77
    ...of risk management and internal control over financial reporting. This Report, available in the Corporate Governance section of the Fiat Group website (www.fiatgroup.com), is divided into four sections: the first contains a description of the governance structure; the second gives information on our...

  • Page 78
    ... and strategic direction for the activities of the Board of Directors, while the Chief Executive Officer is responsible for the operational management of the Group. From an operational perspective, the Chief Executive is supported by the Group Executive Council (GEC), a decision-making body led...

  • Page 79
    ... Sergio Marchionne: Chief Executive Officer of Chrysler Group LLC, Chairman of SGS S.A., Non-executive Vice Chairman and Senior Independent Director of UBS AG, Director of Philip Morris International Inc.; Virgilio Marrone: Director of Old Town S.A. and Member of the Management Board of Intesa...

  • Page 80
    ...in the Annual Report on Corporate Governance, enable public disclosure of the accounts prepared by companies included in the scope of application of the Regulation and used in preparation of the consolidated financial statements and are adequate for the regular provision to management and the Parent...

  • Page 81
    ...the Annual Report on Corporate Governance) to submit a minority list. Additional information provided to Shareholders on the candidates and lists presented are still available in the Investor Relations section of the Group website (www.fiatgroup.com). The Board of Statutory Auditors' current term of...

  • Page 82
    ...than 900 Group employees, in Italy and abroad, whose activities and leadership have a significant impact on the Group. Five plans are currently in place, approved by Fiat S.p.A. between 2002 and 2009, which in certain cases allow shares to be purchased at a predetermined price (stock options) and in...

  • Page 83
    82 REPORT ON OPERATIONS INCENTIVE PLANS BASED ON FINANCIAL INSTRUMENTS On 3 November 2006, Fiat S.p.A.'s Board of Directors approved an eight-year plan consisting of 20 million stock options, authorised by Shareholders on 5 April 2007, which grants certain Group managers and the Chief Executive ...

  • Page 84
    ... at standard market terms for the nature of goods and/or services offered. Information on transactions with related parties, including specific disclosures required by the Consob Communication of 28 July 2006, is provided in Note 35 of the Consolidated Financial Statements and in Note 30 of Fiat...

  • Page 85
    ... venture for the production of passenger cars and SUVs. The new JV is expected to reach total production capacity of up to 500,000 vehicles per year by 2016. Nine new models (C & D segment and SUV) will be sold in the Russian market, six of which will be based on a new global Fiat-Chrysler platform...

  • Page 86
    ... the year, which are heavily influenced by the non-renewal of eco-incentives on new car purchases in Italy, are as follows: Revenues of approximately â,¬50 billion. Trading profit of â,¬1.1 to â,¬1.2 billion. Net profit near break even. Net industrial debt above â,¬5 billion. Fiat will, in any event...

  • Page 87
    86 OPERATING PERFORMANCE BY SECTOR

  • Page 88
    ... performance in 2008 underpinned by government purchase incentives and a generally favourable economic environment. FGA's strong offering of environmentally-friendly cars enabled the Sector to fully benefit from eco-based government incentives. Fiat Group Automobiles continued to make positive share...

  • Page 89
    ... market share for light commercial vehicles, which was up 1.1 percentage points to 24.1%. Fiat Group Automobiles delivered a total of 2,150,700 passenger cars and light commercial vehicles for the year, in line with 2008 (-0.1%). In Western Europe, total deliveries were unchanged at 1,238,100 units...

  • Page 90
    ...in sales with market share up 2.9 percentage points year-on-year to 15.3%. STRATEGIC ALLIANCES In 2009, the Group took a major step forward in its strategy of international strategic alliances through its agreement with Chrysler. On 10 June 2009, Chrysler Group LLC and Fiat finalized an agreement to...

  • Page 91
    ... very active in launching new models with highly innovative technological solutions. Upgrades to and expansion of the range across all brands enabled Fiat Group Automobiles to best respond to difficult market conditions and also resulted in several major international awards being received for its...

  • Page 92
    ... on a further six models. Development also continued on new models which will be presented in 2010, including the Alfa Romeo Giulietta. This vehicle's world debut will be at the Geneva Motor Show in March and it will be progressively rolled out to all major European markets during the spring...

  • Page 93
    92 REPORT ON OPERATIONS OPERATING PERFORMANCE BY SECTOR In Italy, further investment was made in support for the network through establishment of new communication channels and management of dealer requests using the same methods and service level offered to end customers. The Customer Service ...

  • Page 94
    ...reduction in sales volumes, the company achieved a trading profit of â,¬11 million (compared to a profit of â,¬72 million in 2008). With 1,653 units sold during the year, the Quattroporte was once again the fourth best-selling car in its class in Maserati's eight main markets and the model continued...

  • Page 95
    ...INNOVATION AND PRODUCTS Although 2009 proved a difficult year, Maserati was present at every major event to showcase its new models. At the Detroit Motor Show in January, Maserati presented the new Quattroporte Sport GT S, targeted at the luxury sport sedan segment. This car is the best optimization...

  • Page 96
    ...) Net revenues Trading profit/(loss) Operating profit/(loss) (*) Investments in tangible and intangible assets of which capitalised R&D costs Total R&D expenditure (**) Type-approved vehicles delivered to the network (no. of units) No. of employees at year end (*) Including restructuring costs and...

  • Page 97
    ... in December 2009, financing was also offered to customers in the UK. During the year, the new Dealer Finance business line was added to support the Ferrari sales network. This programme was launched toward the end of the year and is currently limited to the United States, Germany and Switzerland...

  • Page 98
    ... CNH - Case New Holland HIGHLIGHTS (E million) Net revenues Trading profit/(loss) Operating profit/(loss) (*) Investments in tangible and intangible assets (**) of which capitalised R&D costs Total R&D expenditure (***) No. of employees at year end 2009 10,107 337 251 330 151 283 28,466 2008(1) 12...

  • Page 99
    ... conditions in the global construction equipment market, CNH has undertaken a thorough review of the positioning of its brands and undertaken a series of actions to reduce operating costs and strengthen the competitiveness of its product portfolio. Reorganization of the internal management structure...

  • Page 100
    ... reducing operating costs through more efficient and productive use of equipment. Additionally, the brand expanded its Customer Assistance programme to include all models from its 15 product lines. During 2009, New Holland Agriculture launched a lead management service in Spain, the UK, Germany...

  • Page 101
    ... businesses. In North America, the activity is run by wholly-owned financial services companies that support the Sector's sales through wholesale financing, retail financing to end customers, operating lease agreements, private-label credit cards and insurance products. CNH Capital also offers...

  • Page 102
    101 TRUCKS AND COMMERCIAL VEHICLES Iveco HIGHLIGHTS (E million) Net revenues Trading profit/(loss) Operating profit/(loss) (*) Investments in tangible and intangible assets (**) of which capitalised R&D costs Total R&D expenditure (***) No. of employees at year end (****) (1) 2009 7,183 105 (90) ...

  • Page 103
    ... markets where Iveco offers its full range of vehicles: 17,001 units were sold in 2009, down 19.1% over the 21,012 figure for 2008. Iveco delivered a total of 7,771 buses during the year, an 18.7% decline from 2008. Commercial Vehicle Market (GVW âˆ' > 2.8 tonnes) (units in thousands) France Germany...

  • Page 104
    ... in previous years, with both product- and methodology-focused initiatives geared toward sustainable mobility. Product innovation centred around six key elements: new-generation low environmental impact vehicles, best-in-class fuel efficiency, high-quality cabin environment, cost-effective solutions...

  • Page 105
    ...48.9 -46.7 -72.6 -22.6 -45.9 28.4 -12.3 -27.1 Sales Performance Commercial Vehicles by product (units in thousands) Heavy Medium Light Buses Special-use vehicles (*) Total Sales (*) Astra, defence, fire trucks 2009 22.1 12.0 57.4 7.8 4.6 103.9 2008 57.9 20.2 98.9 9.6 5.5 192.1 % change -61.9 -40...

  • Page 106
    ... website design. SERVICES For 2009, performance in the Customer Services area was heavily influenced by a decline in after-sales activity, which had already shown signs of a slowdown in the latter part of 2008. During the year, spare parts inventories were scaled back by dealers to adjust to reduced...

  • Page 107
    ... in all Western European markets by year-end 2010. Iveco offers financial services in Europe and, through the financial services companies of Fiat Group Automobiles, in Latin America and China. Since 2005, activity in Western Europe has been managed by Iveco Finance Holdings Limited (IFHL), a joint...

  • Page 108
    ... statement. (***) Also includes Iveco personnel employed at powertrain product lines transferred to FPT (7,685 employees at year-end 2009 and 8,335 employees at year-end 2008). OPERATING PERFORMANCE FPT Powertrain Technologies operates through two product lines: Passenger & Commercial Vehicles...

  • Page 109
    ...began production of a new range of cutting-edge and extremely cost-effective mid-size engines. The plant underwent a major upgrade related to new systems required for Fiat applications. In June, FPT and Perkins Engines Company Limited signed a strategic cooperation agreement for the long-term supply...

  • Page 110
    ...the Iveco range was also completed. As part of the strategic cooperation agreement with Perkins Engine Company Limited, referred to above, development began on a 3.4-litre engine based on the current F32. The engine is intended for application on agricultural and construction equipment and will meet...

  • Page 111
    ...REPORT ON OPERATIONS OPERATING PERFORMANCE BY SECTOR COMPONENTS Magneti Marelli HIGHLIGHTS (E million) Net revenues Trading profit/(loss) Operating profit/(loss) (*) Investments in tangible and intangible assets of which capitalised R&D costs Total R&D expenditure (**) No. of employees at year end...

  • Page 112
    ... vehicles. For the business line's other principal markets: Poland benefited from an increase in sales to Fiat and other manufacturers, and Brazil was in line with 2008. The principal production launch during the year was the suspension system for the Fiat 500C in Poland, while major new orders...

  • Page 113
    ... external customers. Revenues from telematics recorded a significant drop (-52%), however, due to the shift in demand toward less content-rich infotainment products. Sales of products for vehicle interiors were in line with 2008. In the area of innovation, a number of new products were developed for...

  • Page 114
    ... application of multilayer blow-moulding technology to production of tanks for small/medium displacement vehicles and the use of slush technology (for enhanced aesthetics) for development of dashboards for commercial vehicles. All business lines began development of new products for Fiat 500 models...

  • Page 115
    114 REPORT ON OPERATIONS OPERATING PERFORMANCE BY SECTOR METALLURGICAL PRODUCTS Teksid HIGHLIGHTS (E million) Net revenues Trading profit/(loss) Operating profit/(loss) (*) Investments in tangible and intangible assets Total R&D expenditure (**) No. of employees at year end (*) Including ...

  • Page 116
    ... market conditions, together with a series of temporary cost-cutting measures, made it possible to limit losses from significantly lower business volumes. In 2009, Comau sold its companies in South Africa and the German company germanINTEC (engineering activities). New orders for contract work...

  • Page 117
    116 REPORT ON OPERATIONS FINANCIAL REVIEW FIAT S.P.A. FINANCIAL REVIEW - FIAT S.P.A. The following financial review is based on the 2009 financial statements prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board...

  • Page 118
    ... non-cash expenses related to stock options. In 2009, the Company had an average of 152 employees (151 for 2008). Other income of â,¬75 million (â,¬70 million for 2008) related principally to services rendered, including by senior managers, to other Group companies, and changes in contract work in...

  • Page 119
    ...At 31.12.2008 553 1,810 2,363 At 31 December 2009, current financial assets essentially consisted of the current account balance held with the subsidiary Fiat Finance S.p.A. On the same date, current financial liabilities primarily represented amounts payable to factoring companies for advances on...

  • Page 120
    ... remaining amount totalling approximately â,¬79.3 million. Payment of the dividend will be from 22 April 2010, with detachment of the coupon on 19 April. The dividend will be payable on shares outstanding at the coupon detachment date. 16 February 2010 On behalf of the Board of Directors /s/ Luca...

  • Page 121

  • Page 122
    ... Statement of Financial Position pursuant to Consob Resolution No. 15519 of 27 July 2006 Consolidated Statement of Cash Flows pursuant to Consob Resolution No. 15519 of 27 July 2006 Notes to the Consolidated Financial Statements Appendix I - The Companies of the Fiat Group Appendix II - Information...

  • Page 123
    122 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 INCOME STATEMENT CONSOLIDATED INCOME STATEMENT (â,¬ million) Note 2009 (*) 2008 Net revenues Cost of sales Selling, general and administrative costs Research and development costs Other income (expenses) TRADING PROFIT/(LOSS)...

  • Page 124
    ... 2008 PROFIT/(LOSS) (A) Gains/(Losses) on cash flow hedges Gains/(Losses) on fair value of available-for-sale financial assets Gains/(Losses) on exchange differences on translating foreign operations Share of other comprehensive income of entities accounted for using the equity method Income tax...

  • Page 125
    ... 2008 ASSETS Intangible assets Property, plant and equipment Investment property Investments and other financial assets: Investments accounted for using the equity method Other investments and financial assets Leased assets Defined benefit plan assets Deferred tax assets Total Non-current assets...

  • Page 126
    ... to owners of the parent Non-controlling interest Provisions: Employee benefits Other provisions Debt: Asset-backed financing Other debt Other financial liabilities Trade payables Current tax payables Deferred tax liabilities Other current liabilities Liabilities held for sale TOTAL EQUITY...

  • Page 127
    ... taxes Change in items due to buy-back commitments Change in operating lease items Change in working capital TOTAL D) CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES: Investments in: Property plant and equipment and intangible assets (net of vehicles sold under buy-back commitments and leased...

  • Page 128
    ... interests Total AT 1 JANUARY 2008 Changes in equity for 2008 Capital increase Dividends accrued or distributed Buy-back of treasury shares Increase in the reserve for share based payments Total comprehensive income for the period Other changes AT 31 DECEMBER 2008 Changes in equity for 2009 Capital...

  • Page 129
    ... Total Total Net revenues Cost of sales Selling, general and administrative costs Research and development costs Other income (expenses) TRADING PROFIT/(LOSS) Gains (losses) on the disposal of investments Restructuring costs Other unusual income (expenses) OPERATING PROFIT/(LOSS) Financial income...

  • Page 130
    ... sale TOTAL ASSETS EQUITY AND LIABILITIES Equity: Issued capital and reserves attributable to owners of the parent Non-controlling interest Provisions: Employee benefits Other provisions Debt: Asset-backed financing Other debt Other financial liabilities Trade payables Current tax payables Deferred...

  • Page 131
    ... held for sale B) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR C) CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES DURING THE YEAR: Profit/(loss Amortisation and depreciation (net of vehicles sold under buy-back commitments and leased assets) (Gains) losses on disposal of: Property, plant and...

  • Page 132
    ... in which the Group operates. SIGNIFICANT ACCOUNTING POLICIES Basis of preparation The 2009 consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (the "IFRS") issued by the International Accounting Standards Board ("IASB") and adopted...

  • Page 133
    ... in the Group's financial statements. The investment portfolios of financial services companies are included in current assets, as the investments will be realised in their normal operating cycle. Financial services companies, though, obtain funds only partially from the market: the remaining...

  • Page 134
    ... in previous financial statements, are recognised in the income statement. Consolidation of foreign entities All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the exchange rates in effect at the balance sheet date. Income...

  • Page 135
    ... average life, as follows: Cars Trucks and Buses Agricultural and Construction Equipment Engines Components and Production Systems N° of years 4-5 8 5 8 - 10 3-5 All other development costs are expensed as incurred. Intangible assets with indefinite useful lives Intangible assets with indefinite...

  • Page 136
    ...10% 5% - 20% 15% - 25% 10% - 33% Land is not depreciated. Leased assets Leased assets include vehicles leased to retail customers by the Group's leasing companies under operating lease agreements. They are stated at cost and depreciated at annual rates of between 20% and 33%. When such assets cease...

  • Page 137
    136 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES Investment property Real estate and buildings held in order to obtain rental income are carried at cost less accumulated depreciation (charged at annual rates of between 2.5% to 5%) and impairment losses. Borrowing costs ...

  • Page 138
    ... for trading financial assets are measured at fair value. When market prices are not available, the fair value of available-for-sale financial assets is measured using appropriate valuation techniques e.g. discounted cash flow analysis based on market information available at the balance sheet date...

  • Page 139
    ... foreign operation. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognised immediately in the income statement. Sales of receivables The Group sells a significant part of its financial, trade and tax receivables...

  • Page 140
    ... service costs are recognised in the income statement on a straight-line basis over the average period remaining until the benefits become vested. If a change is made to a plan that significantly reduces the number of employees who are members of the plan or that alters the conditions of the plan...

  • Page 141
    140 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES Post-employment plans other than pensions The Group provides certain post-employment defined benefit, mainly health care plans. The method of accounting and the frequency of valuations are similar to those used for defined...

  • Page 142
    ... sale price and the buy-back price is recognised as rental revenue on a straight-line basis over the term of the operating lease. Assets sold under a buy-back commitment that are initially recognised in Property, plant and equipment are reclassified to Inventories at the end of the agreement term...

  • Page 143
    ... operating lease arrangements or sold with buy-back clauses, pension funds and other post-employment benefits, and deferred tax assets. The following are the critical judgements and the key assumptions concerning the future, that management has made in the process of applying the Group accounting...

  • Page 144
    ..., considering the fact, therefore, that the economical and financial environment and the market situation have undergone profound changes as the result of the present crisis and taking into account different operating conditions arising from the strategic realignment with Chrysler Group LLC. These...

  • Page 145
    ... the used vehicle market over the final part of 2008 and throughout the whole 2009. It cannot be excluded that additional writedowns may be needed if market conditions should deteriorate yet again. Sales allowance At the later time of sale or the time an incentive is announced to dealers, the Group...

  • Page 146
    ... of derivative financial instruments in the Statement of financial position as the Group uses the mixed current/non-current distinction format for presentation that is permitted by IAS 1. IAS 23 Revised - Borrowing Costs The revised version of the standard removes the option previously available...

  • Page 147
    ... for rental under operating leases as cash flows from (used in) investment activities. The Group also followed the accounting treatment used for leased assets for assets of the Trucks and Commercial Vehicles Sector sold under a buy-back commitment; at the end of the buy-back agreement term, however...

  • Page 148
    ... from the sale of assets under buy-back commitment and leased assets Amount as restated 2008 59,380 184 59,564 2008 49,423 189 49,612 2008 (23) (18) 23 (18) The effects on the Statement of cash flows presented as comparative figures are as follows: (â,¬ million) Cash flows from (used in) operating...

  • Page 149
    148 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES Improvement to IAS 19 - Employee Benefits The improvement to IAS 19 - Employee Benefits clarifies the definition of positive/negative past service costs and states that in the case of a curtailment, only the effect of the ...

  • Page 150
    ..., improvements and interpretations have also been issued and are effective from 1 January 2009; these relate to matters that were not applicable to the Group at the date of these financial statements but which may affect the accounting for future transactions or arrangements: Amendments to IAS 32...

  • Page 151
    ... having a deficit balance. The new rules will apply prospectively from 1 January 2010. As part of its 2008 annual improvements project, the IASB issued an amendment to IFRS 5 - Non-Current Assets Held for Sale and Discontinued Operations. This amendment, to be applied prospectively from 1 January...

  • Page 152
    ... Financial Instruments: Recognition and Measurement: this amendment restricts the non-applicability of IAS 39 under paragraph 2(g) of the standard to forward contracts between an acquirer and a selling shareholder to buy or sell an acquiree in a business combination at a future acquisition date when...

  • Page 153
    ... the definition of a related party. The revised standard is effective for annual periods beginning on or after 1 January 2011. The revised standard had not yet been endorsed by the European Union at the date of these financial statements. On 12 November 2009, the IASB issued a new standard IFRS...

  • Page 154
    ... particular dealer financing and finance leases in the European Union market for the Fiat Group Automobiles and Trucks and Commercial Vehicles Sectors, and in North America for the Agricultural and Construction Equipment Sector. Financial assets are recognised in the statement of financial position...

  • Page 155
    ... total assets. Interests in jointly controlled entities (65 companies, including 28 entities of the FGA Capital group, are accounted for using the equity method, except for Fiat-GM Powertrain Polska S.p z o.o., accounted for using proportionate consolidation. Condensed financial information relating...

  • Page 156
    ... balances of the Group's share in the principal income statement items of jointly controlled entities accounted for using the equity method are as follows: (â,¬ million) Net revenues Trading profit/(loss) Operating profit/(loss) Profit/(loss) before taxes Profit/(loss) 2009 4,447 161 152 92 57 2008...

  • Page 157
    ..., in any event, have the option to purchase, at a price determined using a pre-established market-based formula, the percentage interest corresponding to the objective(s) not reached. As part of the transaction, the Fiat Group has transferred specific technologies to the new Chrysler group in the...

  • Page 158
    ...). The purchase price is to be determined using a pre-established market-based formula. This option may not be exercised until total loans outstanding from the US Treasury and the Canadian government fall below USD 3 billion. In addition, Fiat's equity interest in Chrysler may in any case not exceed...

  • Page 159

  • Page 160

  • Page 161
    ...income of financial services companies Contract revenues Rents on assets sold with a buy-back commitment Rents on operating leases Other Total Net revenues 2009 45,973 2,496 918 258 271 167 19 50,102 2008 54,687 2,525 959 732 305 154 202 59,564 2. Cost of sales Cost of sales comprises the following...

  • Page 162
    ...million made by Fiat Group Automobiles and Iveco as a consequence of the sudden serious crisis in the world automotive market, to provide mainly against the risks of the residual values of vehicles leased out under operating leases, those sold with buy-back clauses and those included in used stocks.

  • Page 163
    ... in the specific lines of the income statement, Net financial income (expenses) in 2009 also includes the Interest income from customers and other financial income of financial services companies included in Net revenues for฀â,¬918 million (â,¬959 million in 2008) and Interest cost and other...

  • Page 164
    ... Taxes relating to prior periods Total Income taxes 2009 99 545 644 2008 168 755 923 (33) (154) (187) 24 481 (65) (415) (480) 23 466 The decrease in current taxes in 2009 over the previous year is the result of lower taxable profits in the foreign companies and (for IRAP) in the Italian companies...

  • Page 165
    ... deferred) Current and deferred income tax recognised in the financial statements 2009 (101) 56 24 45 426 (64) 29 415 66 481 2008 602 52 23 100 (193) (250) 29 363 103 466 Since the IRAP tax has a taxable basis that is different from income before taxes, it generates distortions between one year and...

  • Page 166
    ... financial instruments Other Total Deferred tax assets Deferred tax liabilities arising from: Accelerated depreciation Deferred tax on gains on disposal Capital investment grants Employee benefits Capitalisation of development costs Other Total Deferred tax liabilities Theoretical tax benefit...

  • Page 167
    ...238 12. Other information by nature The income statement includes personnel costs for฀â,¬6,810 million in 2009 (â,¬7,466 million in 2008). An analysis of the average number of employees by category is provided as follows: Managers White-collar Blue-collar Average number of employees 2009 2,333 57...

  • Page 168
    ... arose from stock option plans granted by Fiat S.p.A. on its ordinary shares at an exercise price above฀â,¬12.35 per share. In addition, the net profit or loss attributable to the Group in 2008 was adjusted to take into account the dilutive effect that would arise if the stock options granted by...

  • Page 169
    ...) 83 At 31 December 2009 3,437 206 3,343 4,504 7,847 1,276 890 31 13,687 (â,¬ million) Goodwill Trademarks and other intangible assets with indefinite useful lives Development costs externally acquired Development costs internally generated Total Development costs Patents, concessions and licenses...

  • Page 170
    ... (2) (3) Translation Reclassified differences to Assets and other held for sale changes (13) (2) (3) (3) 19 31 50 1 19 55 At 31 December 2009 661 41 2,001 2,253 4,254 917 595 20 6,488...useful lives 46 Development costs externally acquired Development costs internally generated Total Development costs...

  • Page 171
    ...(3) (24) 28 At 31 December 2009 2,776 165 1,342 2,251 3,593 359 295 11 7,199 (â,¬ million) Goodwill Trademarks and other intangible assets with indefinite useful lives Development costs externally acquired Development costs internally generated Total Development costs Additions 307 739 1,046 68 69...

  • Page 172
    ..., the Sector used the discounted cash flows approach as the primary approach for measuring the value in use of the Equipment Operations businesses, while used the total asset market multiples approach as the primary approach for measuring the fair value of the Financial Services reporting unit.

  • Page 173
    ...of the implied multiples derived from the discounted cash flows approach using market benchmarks. The CNH management identified comparable companies by reviewing all publicly traded companies operating in the CNH lines of business. The comparable companies used were determined based on an evaluation...

  • Page 174
    ... operations and the extent to which they are differentiated and on the forecasts made by the individual sector to which the cash-generating units belong. These cash flows are then discounted using rates that take account of current market assessments of the time value of money and the specific risks...

  • Page 175
    174 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES 15. Property, plant and equipment In 2009 and 2008, changes in the gross carrying amount of Property, plant and equipment were as follows: At 31 December 2008 594 4,897 76 4,973 25,832 331 26,163 1,362 1,736 8 1,744 1,266 ...

  • Page 176
    ... with a buy-back commitment Owned other tangible assets Other tangible assets leased under finance leases Total Other tangible assets Advances and tangible assets in progress Total accumulated depreciation and impairment of Property, plant and equipment (â,¬ million) Land Owned industrial buildings...

  • Page 177
    176 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES In 2009 and 2008, changes in the net carrying amount of Property, plant and equipment were as follows: At 31 December 2008 588 2,571 58 2,629 Impairment Additions Depreciation losses Divestitures 146 146 (155) (3) (158) (...

  • Page 178
    ..., CNH - Case New Holland and Ferrari Sectors. During 2009 the Trucks and Commercial Vehicles Sector recognised impairment losses on Assets sold with a buy-back commitment from for an amount of฀â,¬32 million (â,¬12 million in 2008) in order to align their carrying amount to market value. These...

  • Page 179
    ...accounted for using the equity method Investments at fair value with changes directly in equity Investments at cost Total Investments Non-current financial receivables Other securities Total Investments and other financial assets At 31 December 2009 1,884 21 76 1,981 138 40 2,159 At 31 December 2008...

  • Page 180
    ... Makineleri A.S. SAIC Iveco Commercial Vehicle Investment Company Limited New Holland HFT Japan Inc. Fiat India Automobiles Private Limited LBX Company LLC CNH de Mexico SA de CV Transolver Finance Establecimiento Financiero de Credito S.A. Other Total Investments in jointly controlled entities The...

  • Page 181
    ... that the opening statement of financial position of the new Chrysler as of 10 June 2009 is currently not available nor are its financial statements for the period ended 31 December 2009. As announced by Chrysler Group LLC on 4 November 2009, when it presented its "Business Plan 2010-2014", these...

  • Page 182
    ... 2009, Inventories include assets sold with a buy-back commitment by Fiat Group Automobiles and assets in the Trucks and Commercial Vehicles and Agricultural and Construction Equipment Sectors which are no longer subject to operating lease arrangements or buy-back commitments and are held for sale...

  • Page 183
    ... FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES 19. Current receivables and Other current assets The composition of the caption is as follows: (â,¬ million) Trade receivables Receivables from financing activities Current tax receivables Other current assets: Other current...

  • Page 184
    ... CNH - Case New Holland financial service companies. Receivables from jointly controlled financial services entities include financial receivables by the group FGA Capital. Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of specific...

  • Page 185
    ... 2008 and unguaranteed residual values at 31 December 2009 and 2008 are not significant. Receivables for dealer financing are typically generated by sales of vehicles and are generally managed under dealer network financing programs as a component of the portfolio of the financial services companies...

  • Page 186
    ... the Black-Scholes model or binomial models and market parameters at the balance sheet date (in particular exchange rates, interest rates and volatility rates); the fair value of interest rate swaps and forward rate agreements is determined by using the discounted cash flow method; the fair value of...

  • Page 187
    ..., renewed in 2009 and expiring in 2010, arranged to hedge the risk of an increase in the Fiat share price above the exercise price of the stock options granted to the Chief Executive Officer in 2004 and 2006 (see Note 24). At 31 December 2009, the Equity Swaps have a total positive fair value of...

  • Page 188
    ...Cost of sales Result from investments Financial income (expenses) Commodities price risk Decrease (Increase) in Cost of sales Taxes income (expenses) Total recognised in the income statement 2009 (15) (350) 71 2008 138 115 50 9 (16) 3 (17) 9 (2) (5) 11 (318) (24) 295 The ineffectiveness of cash...

  • Page 189
    ... Fiat Group Automobiles Sector held for sale at 31 December 2009. Furthermore, in 2009 the Fiat Group Automobiles Sector purchased an investment of 100% in a minor company in Brazil, which at the acquisition date was classified as held for sale. At 31 December 2008, this item included the book value...

  • Page 190
    ... and Liabilities held for sale may be summarised as follows: (â,¬ million) Other intangible assets Property, plant and equipment Investments and other financial assets: Trade receivables Total Assets Provisions Other current liabilities Trade payables Total Liabilities At 31 December 2009 20 58 4 82...

  • Page 191
    ... Less: Treasury shares Total Fiat S.p.A. outstanding shares Capital increase - increase Capital - Treasury share sales and buybacks in 2008 are discussed under Treasury shares below. Italian laws and regulations regarding the share capital and reserves of a joint stock corporation establish the...

  • Page 192
    ... market, the Board of Directors is proposing to shareholders at their Annual General Meeting the payment of a total dividend of฀â,¬244 million (â,¬237 million excluding the treasury shares currently owned by the Group), equal to approximately 30% of 2008 consolidated net income less the 2009...

  • Page 193
    ...conditions: the Programme was to end on 30 September 2009, or once the maximum purchase value of฀â,¬1.8 billion (including the Fiat shares already held by the Company) or a number of shares equivalent to 10% of share capital was reached; the maximum purchase price could not exceed the stock market...

  • Page 194
    ... value of available-for-sale financial assets Gains/(Losses) on exchange differences on translating foreign operations Share of other comprehensive income of entities consolidated by using the equity method Total Other comprehensive income Before tax amount 408 3 509 (47) 873 Tax (expense) benefit...

  • Page 195
    ... 2009 and at 31 December 2008, the following share-based compensation plans relating to managers of Group companies or certain members of the Board of Directors of Fiat S.p.A. were in place. Stock Option plans linked to Fiat S.p.A. ordinary shares The Board of Directors of Fiat S.p.A. approved...

  • Page 196
    ...Directors approved (subject to the subsequent approval of shareholders in General Meeting, which was given on 5 April 2007) an eight year stock option plan, which provides certain managers of the Group and the Fiat S.p.A. Chief Executive Officer with the right to purchase a determined number of Fiat...

  • Page 197
    196 FIAT GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES The contractual terms of the 2008 plan are as follows: Strike price (â,¬) 10.24 Number of options granted 1,418,500 Vesting portion 18%*NMC 41%*NMC 41%*NMC Plan Stock Option July 2008 Recipient Managers Expiry date 3 ...

  • Page 198
    ...determined on the basis of the price of Fiat S.p.A. ordinary shares at the grant date of฀â,¬5.26 per share. The total cost recognised in 2009 income statement for this plan amounted to฀â,¬6 million. Stock Option plans linked to CNH Global N.V. ordinary shares In the Agricultural and Construction...

  • Page 199
    ...upon the average closing price of CNH common shares on the New York Stock Exchange for the thirty-day period preceding the date of grant. Beginning in 2006, CNH began to issue awards under plans providing performance-based stock options, performance-based shares and cash. In April, 2009, CNH granted...

  • Page 200
    ... Number of shares 2,471,238 1,299,474 (913,064) (139,539) 2,718,109 1,142,411 Performance Share Grants Under the CNH EIP, performance-based shares may also be granted to selected key employees and executive officers. CNH establishes the period and conditions of performance for each award and holds...

  • Page 201
    ... fair value of stock options by CNH - Case New Holland Sector. The weighted-average assumptions used under the Black-Scholes pricing model were as follows: Directors' Plan 5.00 62.9 0.8 2.2 2009 Equity Incentive Plan 3.73 70.6 0.7 1.6 Directors' Plan 5.00 45.0 0.9 2.4 2008 Equity Incentive Plan 3.59...

  • Page 202
    ... payment schemes entitled Stock Appreciation Rights (SAR) plans. Under these plans, certain of the employees involved have the right to receive a payment corresponding to the increase in price between the grant date and the exercise date of General Motors $1 2/3 shares listed in New York and Fiat...

  • Page 203
    ...operates, the benefits generally being based on the employees' remuneration and years of service. Group companies provide post-employment benefits under defined contribution and/or defined benefit plans. In the case of defined contribution plans, the Group pays contributions to publicly or privately...

  • Page 204
    ... for health care and insurance plans granted to employees of the Group working in the United States and Canada (mostly relating to CNH - Case New Holland Sector). These plans generally cover employees retiring on or after reaching the age of 55 who have had at least 10 years of service. CNH United...

  • Page 205
    ... projections from the United States Department of Health and Human Services Health Care Financing Administration. The initial trend is a short-term assumption based on recent experience and prevailing market conditions. The ultimate trend is a long-term assumption of health care cost inflation based...

  • Page 206
    ...: Employee severance indemnity 2009 2008 55 53 55 53 n/a n/a Pension Plans 2009 2008 23 37 142 147 (113) (151) 23 2 1 1 (2) 8 (2) 84 32 235 (274) Health care plans 2009 2008 6 5 52 48 (3) (6) (2) (17) (8) 4 40 39 9 (11) Other 2008 14 14 2 (6) 24 n/a (â,¬ million) Current service cost Interest costs...

  • Page 207
    ...companies of the CNH - Case New Holland Sector, began making contributions on a voluntary basis in 2007 to a separate and independently managed fund established to finance the North American health care plans. Plan assets for Post-employment benefits and Health-care benefits mainly consist of listed...

  • Page 208
    ... value of the defined benefit obligations, the fair value of plan assets and the surplus or deficit of the plans for 2009 and at the end of the four previous years is as follows: (â,¬ million) Present value of obligation: Employee severance indemnity Pension plans Health care plans Others Fair value...

  • Page 209
    ... arising from product warranties given for a specified period of time which begins at the date of delivery to the customer. This estimate has been calculated considering past experience and specific contractual terms. This provision also includes management's best estimate of the costs that are...

  • Page 210
    ... recorded when the expected costs to complete the services under these contracts exceed the revenues expected to be realised. Environmental risks - based upon currently available information, the reserve represents management's best estimate of the Group's possible environmental obligations. Amounts...

  • Page 211

  • Page 212

  • Page 213
    ... for â,¬526 million. More specifically, the principal bonds issued in 2009 were: A bond issued at a price of 99.367 by Fiat Finance and Trade Ltd. S.A. as part of the Global Medium Term Notes Programme, having a nominal value of â,¬1,250 million, falling due in 2012 and bearing fixed interest at...

  • Page 214
    ... on the Group's website at www.fiatgroup.com under "Investor Relations - Financial Reports". Most of the bonds issued by the Group impose covenants on the issuer and, in certain cases, on Fiat S.p.A. as guarantor, which is standard international practice for similar bonds issued by companies in the...

  • Page 215
    ... the Fiat Group are also listed on the Luxembourg stock exchange. (2) "Fiat Step-Up Amortizing 2001-2011" bonds repayable at face value in five equal annual instalments each for 20% of the total issued (â,¬617 million) due beginning from the sixth year (7 November 2007) by reducing the face value of...

  • Page 216
    ..., or the related future cash flows. The amount is calculated using the interest rates stated in Note 19, suitably adjusted to take account of the Group's current creditworthiness. At 31 December 2009 the Group had outstanding financial lease agreements for certain property, plant and equipment whose...

  • Page 217
    ... 2009 Due beyond five years Total 1 12,295 Due between Due within one and one year five years 13,224 33 At 31 December 2008 Due beyond five years Total 1 13,258 (â,¬ million) Trade payables The carrying amount of Trade payables is considered in line with their fair value at the balance sheet date...

  • Page 218
    ... income The item Advances on buy-back agreements refers to agreements entered into by the Group during the year or which still remain effective at the balance sheet date. An amount of â,¬1,042 million relate to assets included in Property, plant and equipment, with the balance of â,¬843 million...

  • Page 219
    ...financial service companies (Iveco Finance Holdings, controlled by Barclays) for â,¬440 million (â,¬752 million at 31 December 2008). Operating lease contracts The Group enters into operating lease contracts for the right to use industrial buildings and equipments with an average term of 10-20 years...

  • Page 220
    ...derives its revenues from the production and sale of Ferrari-brand luxury sport cars, in addition to management of the Formula 1 team and financial services offered in conjunction with its vehicle sales. The Agricultural and Construction Equipment segment (CNH-Case New Holland) is active globally in...

  • Page 221
    .... All profit and loss items reported are recognised in accordance with the same accounting principles adopted for preparation of the Group's consolidated financial statements. Details of the income statement by operating segment for the years ended 31 December 2009 and 2008 is as follows: Fiat Group...

  • Page 222
    ... Unallocated items & adjustments FIAT Group 2008 Segment revenues Revenues from transactions with other operating segments Revenues from external customers Trading profit/(loss) Unusual income/(expense) Operating profit/(loss) Financial income/(expense) Interest in profit/(loss) of joint ventures...

  • Page 223
    ... companies Total Treasury assets Total unallocated assets Total Assets Segment operating assets include: Investments in associates and joint-ventures accounted for by the equity method Increases in non-current assets other than financial instruments, deferred tax assets and post-employment benefit...

  • Page 224
    ...customer of the Group accounted for 10 percent or more of consolidated revenues. 33. Information on financial risks The Group is exposed to the following financial risks connected with its operations: credit risk, regarding its normal business relations with customers and dealers, and its financing...

  • Page 225
    .... Dealers and final customers are subject to specific assessments of their creditworthiness under a detailed scoring system; in addition to carrying out this screening process, the Group also obtains financial and non-financial guarantees for risks arising form to credit granted for the sale of cars...

  • Page 226
    ... are located in countries which are not members of the European monetary union, in particular the United States, Canada, United Kingdom, Switzerland, Czech Republic, Brazil, Poland, Turkey, India, China, Argentina and South Africa. As the Group's reference currency is the Euro, the income statements...

  • Page 227
    ... the sale of receivables, or the return on investments, and the employment of funds, causing an impact on the level of net financial expenses incurred by the Group. In addition, the financial services companies provide loans (mainly to customers and dealers), financing themselves using various...

  • Page 228
    ...31 December 2009 linked to the Fiat share price would be approximately â,¬21 million (â,¬9 million at 31 December 2008). The increase over the previous year is due to the different price of the share at the end of the year (which is used as a basis for the simulation). In the event of a hypothetical...

  • Page 229
    ... entities, associated companies and other related parties on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved. The effects of such transactions on the consolidated income statements for 2009 and 2008 are as follows...

  • Page 230
    ... Current tax receivables Other current assets Current financial assets Cash and cash equivalents Asset-backed financing Other debt Other financial liabilities Trade payables Current tax payables Other current liabilities Associated companies 17 10 93 2 1 216 38 39 4 (â,¬ million) Other investments...

  • Page 231
    ... revenues discussed above and those arising from the Group's trade relationships with FGA Capital, which mostly regard the sales of vehicles leased out by FGA Capital S.p.A. in its own turn under operating or financial lease arrangements. In particular: (â,¬ million) Fiat India Automobiles Limited...

  • Page 232
    ... group), for the sale of industrial vehicles leased out by the associate Chrysler Group LLC, for the sale of components and production systems Otoyol Sanayi A.S., for the sale of industrial vehicles Others Total Net Revenues from associated companies 2009 74 31 184 289 2008 226 18 199 443 Trade...

  • Page 233
    ... million in 2008), the purchase of goods of â,¬18 million (â,¬16 million in 2008) for the high range and deluxe upholstery of the Group's automobiles from Poltrona Frau S.p.A., a company listed on the Italian Stock Exchange in which the chairman of the Board of Directors of Fiat S.p.A., Luca Cordero...

  • Page 234
    ... recognised in the balance sheet at 31 December 2008 since the acquired company was capable of achieving a high level of profitability and additional benefits will arise from the purchase. The IFRS book value of the acquiree's assets and liabilities at the acquisition date and immediately after the...

  • Page 235
    ... following businesses: The investments in ITS-GSA Fiat Group France S.A.S., ITS-GSA Deutschland GmbH and ITS-GSA U.K. Limited were sold during the second quarter of 2008; these had already been classified as assets held for sale in the consolidated financial statements for the year ended 31 December...

  • Page 236
    ...the line item Translation exchange differences. Cash flows from (used in) operating activities derive mainly from the Group's main revenue producing activities. The cash flows generated by the sale of vehicles under buy-back commitments, net of the amounts included in Profit/(loss) for the year, are...

  • Page 237
    ... venture for the production of Passengers Cars and SUVs. The total production capacity of the new JV will be up to 500,000 vehicles per year by 2016. Nine new models (C and D segments, SUVs) will be sold on the Russian market, six of which will be produced on a new global Fiat-Chrysler platform. At...

  • Page 238
    ... following pages. Companies in the list are grouped according to type of control and consolidation method, and are further classified in accordance with IFRS 8. For each company, the following information is provided: name, location of registered office, country and share capital stated in original...

  • Page 239
    ...Parent Company Fiat S.p.A. Turin Italy 6,377,262,975 EUR ----- SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS Fiat Group Automobiles Fiat Group Automobiles S.p.A. Abarth & C. S.p.A. Alfa Romeo Automobiles S.p.A. Alfa Romeo U.S.A. S.p.A. Banco Fidis S.A. Customer Services Centre S.r.l. Easy Drive...

  • Page 240
    ...Holding N.V. Fiat Finance Netherlands B.V. Fiat Group Automobiles S.p.A. Fiat Finance Netherlands B.V. Fiat Group Automobiles Switzerland S.A. Fiat Group Automobiles S.p.A. Fiat Finance Netherlands B.V. Fiat Group Automobiles S.p.A. Fiat Group Automobiles S.p.A. Fiat Powertrain Technologies SpA Fiat...

  • Page 241
    ... COMPANIES OF THE FIAT GROUP SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Italian Motor Village, S.L. Iveco Latin America Ltda (business Fiat Group...

  • Page 242
    ... Limited Case Dealer Holding Company LLC Case Equipment Holdings Limited Case Equipment International Corporation Case Europe S.a.r.l. Case Harvesting Systems GmbH CASE IH Machinery Trading (Shanghai) Co. Ltd. Case India Limited Case International Marketing Inc. Case LBX Holdings Inc. Case New...

  • Page 243
    ... voting rights Case New Holland Machinery (Harbin) Ltd. Case United Kingdom Limited CNH Agriculture Receivables LLC CNH America LLC CNH Argentina S.A. CNH Asian Holding Limited N.V. CNH Australia Pty Limited CNH Baumaschinen GmbH CNH Belgium N.V. CNH Canada, Ltd. CNH Capital America LLC CNH Capital...

  • Page 244
    ... Machinery America LLC Limited Liability Company "CNH Parts and Service Operations" MBA AG New Holland Australia Pty Ltd New Holland Credit Company, LLC New Holland Excavator Holdings LLC New Holland Fiat (India) Private Limited New Holland Holding (Argentina) S.A. New Holland Holding Limited New...

  • Page 245
    ... Belgium Germany U.S.A. Canada People's Rep.of China Austria 9,631,500 25,565 1,000 1 35,000,000 35,000 EUR EUR USD CAD USD EUR 89.25 89.25 89.25 89.25 53.55 89.25 New Holland Holding Limited CNH Baumaschinen GmbH CNH America LLC CNH Capital America LLC CNH Asian Holding Limited N.V. CNH...

  • Page 246
    ...Bayern GmbH Iveco Capital SA Iveco Contract Services Limited Iveco Czech Republic A.S. Iveco Danmark A/S Iveco España S.L. (business Trucks and Commercial Vehicles) Iveco Est Sas Iveco France Iveco Holdings Limited Iveco Insurance Vostok LLC Iveco International Trade Finance S.A. Iveco Investitions...

  • Page 247
    ...CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 APPENDIX I THE COMPANIES OF THE FIAT GROUP SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Iveco...

  • Page 248
    ... S.A. European Engine Alliance S.c.r.l. Barcelona Turin Spain Italy 37,405,038 32,044,797 EUR EUR 59.39 96.42 Fiat Auto Argentina S.A. (business FPT Powertrain Technologies) Buenos Aires Fiat Automoveis S.A. - FIASA (business FPT Powertrain Technologies) Betim Fiat Powertrain Technologies...

  • Page 249
    ... S.p.A. Fiat Powertrain Technologies SpA SAIC IVECO Commercial Vehicle Investment Company Limited 97.200 2.800 100.000 100.000 51.000 49.000 100.000 53.660 46.340 60.000 40.000 100.000 100.000 100.000 30.000 60.000 Brazil Spain Brazil United Kingdom Germany Switzerland People's Rep.of China Italy...

  • Page 250
    ...LINE-BY-LINE BASIS (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Ergom Poland Sp. z o.o. Ergom Soffiaggio S.r.l. Fiat... Marelli After Market Parts and Services S.p.A. Magneti Marelli After Market Sp. z...

  • Page 251
    ... rights Magneti Marelli France S.a.s. Magneti Marelli GmbH Magneti Marelli Holding U.S.A. Inc. Magneti Marelli Iberica S.A. Magneti Marelli North America Inc. Magneti Marelli Parts and Services S.p.A. Magneti Marelli Powertrain (Shanghai) Co. Ltd. Magneti Marelli Powertrain India Private Limited...

  • Page 252
    ... Autodie International, Inc. Comau (Shanghai) International Trading Co. Ltd. Grugliasco Grand Rapids Shanghai Italy U.S.A. People's Rep.of China People's Rep.of China 48,013,959 1,000 5,000,000 200,000 EUR USD USD USD 100.00 100.00 100.00 100.00 Fiat S.p.A. Comau Pico Holdings Corporation Comau...

  • Page 253
    ...CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 APPENDIX I THE COMPANIES OF THE FIAT GROUP SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Comau...

  • Page 254
    ... Group International SA Fiat Argentina S.A. Paradiso Buenos Aires Switzerland Argentina 100,000,000 5,292,117 CHF ARS 100.00 100.00 Fiat Attività Immobiliari S.p.A. Fiat do Brasil S.A. Fiat Financas Brasil Ltda Fiat Finance and Trade Ltd S.A. Fiat Finance Canada Ltd. Fiat Finance et Services...

  • Page 255
    ...COMPANIES OF THE FIAT GROUP SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Fiat Finance S.p.A. Fiat GmbH Fiat Group Marketing & Corporate Communication...

  • Page 256
    ... CONSOLIDATED ON A LINE-BY-LINE BASIS (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Magneti Marelli S.p.A. Maserati S.p.A. Teksid S.p.A. Fiat Finance S.p.A. Fiat Partecipazioni S.p.A. Neptunia...

  • Page 257
    ... Azioni Risk Management S.p.A. Sisport Fiat S.p.A. - Società sportiva dilettantistica Magneti Marelli After Market Parts and Services S.p.A. Automotive Lighting Rear Lamps Italia S.p.A. Easy Drive S.r.l. Fiat Attività Immobiliari S.p.A. Fiat Auto Var S.r.l. Fiat Information Technology, Excellence...

  • Page 258
    ...B.V. FGA CAPITAL RE Limited FGA Capital Services Spain S.A. FGA Capital Spain E.F.C. S.A. FGA CAPITAL UK LTD. FGA CONTRACTS UK LTD. FGA INSURANCE HELLAS S.A. FGA Leasing GmbH FGA WHOLESALE UK LTD. Fiat Bank Polska S.A. Fiat Distribuidora Portugal S.A. Fidis Finance (Suisse) S.A. Fidis Finance Polska...

  • Page 259
    ... Vehicles Co, Ltd. Transolver Finance Establecimiento Financiero de Credito S.A. FPT Powertrain Technologies Fiat India Automobiles Limited (business FPT Powertrain Technologies) Ranjangaon FIAT POWERTRAIN TECHNOLOGIES Sollers Investment Company B.V. FIAT POWERTRAIN TECHNOLOGIES Sollers Limited...

  • Page 260
    ... MAGNETI MARELLI Powertrain Co. Ltd Shanghai New Delhi Turin Zhenjiang-Jangsu People's Rep.of China 385,363,550 CNY 42.40 Teksid S.p.A. 50.000 SUBSIDIARIES ACCOUNTED FOR USING THE EQUITY METHOD Fiat Group Automobiles Alfa Romeo Inc. F.A. Austria Commerz GmbH Fiat Auto Egypt S.A.E. Italcar...

  • Page 261
    260 CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 APPENDIX I THE COMPANIES OF THE FIAT GROUP SUBSIDIARIES ACCOUNTED FOR USING THE EQUITY METHOD (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights ...

  • Page 262
    ... Fiat Automobiles Service Co. Ltd. Fiat Motor Sales Ltd G. Vico Handling S.r.l. Goldcup 5148 AB New Business 19 S.r.l. Ferrari Scuderia Ferrari Club S.c. a r.l. Alcalá De Henares Alges Nanjing Slough Berkshire Pomigliano d'Arco Sundsvall Turin Spain Portugal People's Rep.of China United Kingdom...

  • Page 263
    ....956 100.000 Holding companies and Other companies Fiat Common Investment Fund Limited Fiat Gra.De EEIG London Watford United Kingdom United Kingdom 2 0 GBP GBP 100.00 97.37 Fiat U.K. Limited Fiat Group Automobiles S.p.A. CNH Global N.V. Fiat Netherlands Holding N.V. Business Solutions S.p.A. Fiat...

  • Page 264
    263 SUBSIDIARIES VALUED AT COST (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Fiat Partecipazioni India Private Limited Fides Corretagens de Securos Ltda New Delhi Nova Lima India Brazil India Italy...

  • Page 265
    ... Capital Europe S.a.S. Employers Health Initiatives LLC Kobelco Construction Machinery Co. Ltd. Medicine Hat New Holland Ltd. Trucks and Commercial Vehicles GEIE V.IV.RE Iveco Finance Holdings Limited IVECO-AMT Ltd. Otoyol Sanayi A.S. in liquidation Boulogne Basingstoke Miass France United Kingdom...

  • Page 266
    ... dation Interest held by % interest held % of voting rights ASSOCIATED COMPANIES VALUED AT COST Fiat Group Automobiles Consorzio per la Reindustrializzazione Area di Arese S.r.l. in liquidation Fidis Rent GmbH Turin Auto Private Ltd. in liquidation Ferrari Iniziativa Fiorano S.r.l. Modena Italy 90...

  • Page 267
    266 CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2009 APPENDIX I THE COMPANIES OF THE FIAT GROUP ASSOCIATED COMPANIES VALUED AT COST (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Consorzio Parco...

  • Page 268
    267 OTHER COMPANIES VALUED AT COST (continued) % of Group consoliName Registered office Country Share capital Currency dation Interest held by % interest held % of voting rights Holding companies and Other companies Centro di Eccellenza su Metodi e Sistemi per le Aziende Competitive Fisciano ...

  • Page 269
    ... for research activities. Attestation of tax forms. Review and analysis related to the accounting treatment for significant transactions. Primarily for due diligence work (of which â,¬4,376 thousand related to due diligence for Chrysler transaction). Primarily for activities connected to...

  • Page 270
    ... of the financial conditions, results of operations and cash flows of the Company and its consolidated subsidiaries as of 31 December 2009 and for the year then ended. 3.2 The report on operations includes a reliable operating and financial review of the Company and of the Group as well...

  • Page 271

  • Page 272
    FIAT S.P.A. STATUTORY FINANCIAL STATEMENTS at 31 December 2009 272 272 273 274 275 276 277 278 279 342 Income Statement Statement of Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Changes in Equity Income Statement pursuant to Consob Resolution no. 15519 of...

  • Page 273
    ...) 2009 2008 PROFIT/(LOSS) (A) Gains/(losses) recognised directly in fair value reserve (investments in other companies) Difference arising from the partial spin-off of Fiat Partecipazioni S.p.A. in favour of Fiat S.p.A. Income tax relating to components of other comprehensive income TOTAL OTHER...

  • Page 274
    ... STATEMENT OF FINANCIAL POSITION 273 STATEMENT OF FINANCIAL POSITION (figures in â,¬) Note At 31 December 2009 (*) At 31 December 2008 ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total...

  • Page 275
    ...-cash cost of stock option plans Impairment losses/(reversals) on investments Fair value adjustment to equity swaps on Fiat shares Losses/(gains) on disposals Change in provisions for employee benefits and other provisions Change in deferred taxes Change in working capital TOTAL C) CASH FROM/(USED...

  • Page 276
    ... to shareholders balance to retained profit Carryforward and addition to reserve for the purchases of own shares Purchases of own shares Sales of own shares Valuation of stock option plans Total comprehensive income for the period Balances at 31 December 2008 Allocation of prior year profit: to...

  • Page 277
    ... investments Gains/(losses) on disposals Other operating income Personnel costs Other operating costs Gains/(losses) from non-recurring transactions Financial income/(expense) PROFIT/(LOSS) BEFORE TAXES Income taxes PROFIT/(LOSS) FROM CONTINUING OPERATIONS Profit/(loss) from discontinued operations...

  • Page 278
    ... 2008 of which related parties (Note 30) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total non-current assets Current assets Inventory Trade receivables Current financial receivables...

  • Page 279
    ...-cash cost of stock option plans Impairment losses/(reversals) on investments Fair value adjustment to equity swaps on Fiat shares Losses/(gains) on disposals Change in provisions for employee benefits and other provisions Change in deferred taxes Change in working capital TOTAL C) CASH FROM/(USED...

  • Page 280
    ... for the Fiat Group for the year ended 31 December 2009. SIGNIFICANT ACCOUNTING POLICIES Basis of preparation The 2009 financial statements represent the separate financial statements of the Parent Company, Fiat S.p.A., and have been prepared in accordance with the International Financial Reporting...

  • Page 281
    ... of financial services are included in current assets in the Consolidated Statement of Financial Position, as the investments will be realised in their normal operating cycle. Financial services companies, though, obtain funds only partially from the market: the remaining are obtained from the Group...

  • Page 282
    ... market securities that are readily convertible into cash and are subject to an insignificant risk of changes in value. Non-current financial payables includes liabilities related to financial guarantees. These financial guarantees are contracts where the company undertakes to make specific payments...

  • Page 283
    ... the investment. Investments in other companies, comprising non-current financial assets that are not held for trading (available-for-sale financial assets), are initially measured at fair value. Any subsequent profits and losses resulting from changes in fair value, correlated to their market price...

  • Page 284
    ... be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognised immediately in the income statement. Inventory Inventory consists of work in progress on specific contracts and in particular relates to long-term construction contracts signed by Fiat...

  • Page 285
    ...-term benefits is the same as that for post-employment benefit plans except for the fact that actuarial gains and losses and past service costs are fully recognised in the income statement in the year in which they arise and the corridor method is not applied. Equity-based compensation The Company...

  • Page 286
    285 The compensation component from stock option plans based on Fiat S.p.A. shares relating to employees of other Group companies is recognised as a capital contribution to the subsidiaries which employ beneficiaries of the stock option plans, in accordance with IFRIC 11 and, as a result, is ...

  • Page 287
    ... ฀â,¬560 million (Iveco) in relation to profit for prior years. The valuation approach applied for the preparation of the 2009 financial statements was based on the estimate of value in use of the investments. The estimates were based on expected performance for 2010, whose assumptions and results...

  • Page 288
    ... as the derivative contracts in place at the balance sheet close, for both 2009 and 2008, were classified as held for trading. Amendment to IFRS 1 - First Time Adoption of International Financial Reporting Standards and IAS 27 - Consolidated and Separate Financial Statements The amendment to...

  • Page 289
    ... the 2008 annual improvement process conducted by IASB, changes were made to certain accounting standards which became effective 1 January 2009. Some of these changes are limited to terminology, while others are more substantial but, in any event, have had a limited impact on the company's financial...

  • Page 290
    ... designation should be applied in particular situations. When applied this amendment will have no effect on the Company's financial statements. On 27 November 2008, the IFRIC issued interpretation IFRIC 17 - Distributions of Non-cash Assets to Owners that will standardise accounting treatment of the...

  • Page 291
    ... from 1 January 2010; the European Union had not yet endorsed the amendment at the date of these financial statements. On 8 October 2009, the IASB issued an amendment to IAS 32, Classification of Rights Issues in order to address the accounting for rights issues (rights, options or warrants) that...

  • Page 292
    ... entity manages its financial instruments and the contractual cash flow characteristics of the financial assets. IFRS 9 also requires a single impairment method to be used. The new standard had not yet been endorsed by the European Union at the date of these financial statements. On 26 November 2009...

  • Page 293

  • Page 294

  • Page 295
    ... Holding N.V. Business Solution S.p.A. Fiat Finance S.p.A. FGI - Fiat Group International S.A. Itedi-Italiana Edizioni S.p.A. Total dividends from subsidiaries Dividends from other companies Total dividends and other income from investments 2009 700,000 559,691 1,259,691 140 1,259,831 2008...

  • Page 296
    ... contract work in progress Other revenues and income from Group companies Other revenues and income from third parties Total other operating income 2009 45,229 182,049 (164,254) 6,028 6,380 75,432 2008 45,337 19,860 2,782 2,070 70,049 Revenues from services rendered to Group companies relate...

  • Page 297
    ... and other defined benefit plans Compensation component from stock option plans Other personnel costs Total personnel costs 2009 20,692 7,921 389 (3,494) 6,080 31,588 2008 20,476 7,772 546 1,447 7,456 37,697 The average number of employees for the year rose from 151 in 2008 (66 managers, 76 white...

  • Page 298
    ... rendered by Group companies Costs for services rendered by third parties Compensation component from stock option plans Leases and rentals Purchase of goods Depreciation of property, plant and equipment Amortisation of intangible assets Misc. operating costs Total other operating costs 2009 25,352...

  • Page 299
    ... in 2010, following extension of the two contracts during the year) entered into as hedges against Fiat shares rising above the exercise price of the stock options granted to the Chief Executive Officer in 2004 and 2006 (see Note 19). At 31 December 2009, the equity swaps had a notional value, based...

  • Page 300
    ... 2008, current IRAP payable was correlated to the estimate of the income generated during the year including the non-recurring gain from sale of the FIAT trademark. Deferred IRAP related to profit recognised on the contract work in progress with T.A.V. S.p.A. Taxes relating to prior periods totalled...

  • Page 301
    ... future realisation, using updated strategic plans and the related tax plans. As a consequence, the total theoretical future tax benefit arising from deductible temporary differences ( â,¬8,300 thousand at 31 December 2009 and â,¬9,531 thousand at 31 December 2008) and tax loss carryforwards (â,¬378...

  • Page 302
    ... over the term of the lease agreement (4 and 12 years). Amortisation on intangible assets is recognised in the income statement under other operating costs (Note 6). During 2008, changes in intangible assets were as follows: (â,¬ thousand) Concessions, licences and similar rights Gross carrying...

  • Page 303
    302 FIAT S.P.A. STATUTORY FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES 11. Property, plant and equipment At 31 December 2009, property, plant and equipment totalled â,¬31,445 thousand and was subject to the following changes during the year: (â,¬ thousand) Land and buildings Gross carrying ...

  • Page 304
    ... Adjustments At (Decreases) to fair value 31 December 2009 (5,819) (858,000) 13,837,308 131,786 3,071 21,476 (5,819) (854,929) 13,990,570 (â,¬ thousand) Investments in subsidiaries Investments in associates Investments in other companies Total investments At 31 December 2008 14,294,660 131,786 18...

  • Page 305
    304 FIAT S.P.A. STATUTORY FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES Investments in subsidiaries and changes during the year are provided in the following table: % interest 100.00 At 31 December 2008 4,676,359 7,383,359 (2,707,000) 1,055,203 1,055,203 103,887 103,887 3,827,347 3,827,347 1,835...

  • Page 306
    ... balance sheet date (â,¬57 million higher at year-end 2008). The stock market price of the Company's shares, although improved over year-end 2008, still reflects a discount to the book value of its equity. Therefore, given the relative carrying value of the investment in the Group's accounts, where...

  • Page 307
    ...July 2008, the expiry date of the option was extended and the option is currently exercisable from 1 January 2010 to 31 July 2010 at a price of฀â,¬302.07 per share (for a total of ฀â,¬122,399 thousand) less any dividend that may be distributed. It has been recognised at cost since its fair value...

  • Page 308
    ... other Group companies for services provided. At 31 December 2008, this item included â,¬52,800 thousand receivable from Fiat Group Marketing and Corporate Communication S.p.A. for the portion of the consideration for the FIAT trademark, purchased at the end of 2008, which was deferred until 2009...

  • Page 309
    ... from Fiat S.p.A., to hedge against an increase in the share price above the exercise price of the stock options granted to the Company's Chief Executive Officer in 2004, as described in Note 8. The fair value of that equity swap was based on market quotations at the balance sheet date. At...

  • Page 310
    ... and post offices Cheques and cash in hand Total cash and cash equivalents At 31 December 2009 473 1 474 At 31 December 2008 494 1 495 Change (21) (21) The above figures related to on demand deposits in euros in the Company's current accounts. The carrying amount of cash and cash equivalents is...

  • Page 311
    ... remaining profit which Shareholders may resolve to distribute. When the dividend paid to savings shares in any year amounts to less than â,¬0.31, the difference shall be added to the preferred dividend to which they are entitled in the following two years. In the event that the savings shares are...

  • Page 312
    ... 2009, the Board of Directors will propose to Shareholders at the Annual General Meeting that they approve payment of a total dividend of â,¬244 million (â,¬237 million excluding the treasury shares held by Fiat S.p.A. at the date of this publication), equal to approximately 30% of the combined 2008...

  • Page 313
    ... end on 30 September 2009 or, in any event, once the maximum amount of â,¬1.8 billion (including Fiat S.p.A. shares already held by the Company) or a number of shares equivalent to 10% of share capital was reached; the maximum purchase price could not exceed the reference price reported by the Stock...

  • Page 314
    ... relation to the exercise of stock options. Purchases of 16,788,000 ordinary shares (at a total price of â,¬238,531 thousand) were made under the abovementioned Programme. Share-based compensation At 31 December 2009 and 2008, Fiat S.p.A. has various share-based payment plans for executives of Group...

  • Page 315
    ... 2009 NOTES Stock Option plans linked to Fiat S.p.A. ordinary shares The Board of Directors of Fiat S.p.A. approved certain stock option plans prior to 2002 which provided managers of the Group with the title of Direttore, high management potential included in "management development programmes...

  • Page 316
    ...Directors approved (subject to the subsequent approval of Shareholders in General Meeting, which was given on 5 April 2007) an eight year stock option plan, which provides certain managers of the Group and the Fiat S.p.A. Chief Executive Officer with the right to purchase a determined number of Fiat...

  • Page 317
    ... FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES The contractual terms of the 2008 plan are as follows: Plan Stock Option July 2008 (*) Recipient Managers Expiry date 3 November 2014 Strike price (â,¬) 10.24 Number of options granted 1,418,500 Vesting date 1st Quarter 2009 (*) 1st Quarter 2010...

  • Page 318
    ... contractual terms of the plan are as follows: Plan Stock Grant 2009 (*) Recipient Chief Executive Officer Number of shares 2,000,000 Vesting date 1st Quarter 2010 (*) 1st Quarter 2011 (*) Vesting portion 25%*NMC 75%*NMC On approval of the prior year's Consolidated Financial Statements, subject...

  • Page 319
    ... not yet paid at the balance sheet date are included in the item other payables (see Note 26). The company recognises the contribution cost for the year on the basis of the service rendered by the employee in the item personnel costs (see Note 5). In the case of post-employment benefits the company...

  • Page 320
    ... income statement for post-employment benefits are as follows: (â,¬ thousand) Service cost: Current service cost Net actuarial (gains)/losses recognised during the year Total current service cost Interest costs Total cost/(income) for post-employment benefits Employee severance indemnity 2009 2008...

  • Page 321
    ... Group companies Financial guarantee contracts Total non-current financial liabilities At 31 December 2009 1,800,000 16,782 1,816,782 At 31 December 2008 1,800,000 10,531 1,810,531 Change 6,251 6,251 Financial payables to Group companies related to euro-denominated loans received from Fiat Finance...

  • Page 322
    ... using market rates of interest appropriately adjusted to reflect the credit spreads applicable to Fiat at the balance sheet date. The item financial guarantee contracts consisted of the fair value of the liabilities assumed from guarantees issued. After assessing the potential risks in relation...

  • Page 323
    ... year end. The amounts related to: (â,¬ thousand) At 31 December 2009 Financial payables to Group companies: Current account with Fiat Finance S.p.A Payables to Fiat Netherlands Holding N.V. for derivative financial instruments 31,200 Accrued interest expense 65,121 Total financial payables to Group...

  • Page 324
    ... factoring companies relates to the residual liability for advances on receivables which had already been repaid at the balance sheet date. Current financial payables are denominated in euros. The carrying amounts are deemed to be in line with their fair value. 26. Other payables At 31 December 2009...

  • Page 325
    ... out by Fiat S.p.A. Contract costs relating to the contract revenue recognised totalled â,¬95,589 thousand at 31 December 2009 (â,¬133,819 thousand at 31 December 2008). Changes in contract work in progress have been recognised in the income statement under the item other operating income (see...

  • Page 326
    ... thousand (â,¬229,084 thousand at 31 December 2008) relate to the VAT credits of Italian subsidiaries transferred to Fiat S.p.A. as part of the consolidated VAT procedure. At 31 December 2009, payables to Group companies in connection with the IRES tax consolidation amounted to â,¬133,806 thousand...

  • Page 327
    ... over 31 December 2008. This amount mostly relates to sureties provided on behalf of Group companies on Billets de Trésorerie issued (Fiat Finance and Trade Ltd S.A. â,¬28,959 thousand), medium- to long-term loans granted by banks (â,¬5,968 thousand) and lease payments on property included in real...

  • Page 328
    ... of the transfer of certain multi-year sponsorship agreements connected with the FIAT trademark, with effect from the beginning of 2009, to the subsidiary Fiat Group Marketing & Corporate Communication S.p.A. following the sale of the brand at the end of 2008 and the corresponding elimination of the...

  • Page 329
    ... 2009 is represented by the carrying amounts at which financial assets are recognised in the statement of financial position and the nominal value of the guarantees provided as discussed in Note 26. Amounts receivable at the balance sheet date are essentially due from Group companies, from the tax...

  • Page 330
    ... in 2008, when the Company essentially had a net debt position). Other risks relating to derivative financial instruments As discussed in Note 8, Fiat S.p.A. holds certain derivative financial instruments whose value is linked to the trends in the price of listed shares (equity swaps on Fiat shares...

  • Page 331
    ... S.A. - FIASA Fiat Finance Canada Ltd. Fiat Finance S.p.A. Fiat Finance and Trade Ltd S.A. Fiat France Fiat Services S.p.A. Fiat Group Marketing & Corporate Comm. S.p.A. Fiat Group Purchasing S.r.l. Fiat Partecipazioni S.p.A. Fiat Polska S.p. z.o.o. Fiat Powertrain Technologies S.p.A. Fiat-Revisione...

  • Page 332
    ... Fiat Services S.p.A. Fiat Netherlands Holding N.V. CNH Global N.V. Iveco S.p.A. Leasys S.p.A. Magneti Marelli S.p.A. Orione S.c.p.A. Risk Management S.p.A. Sirio S.c.p.A. Teksid S.p.A. Other Group companies IRES tax consolidation VAT consolidation Financial guarantee contracts Total Group companies...

  • Page 333
    ... S.c.p.A. Fiat Services S.p.A. Fiat Netherlands Holding N.V. CNH Global N.V. Iveco S.p.A. Leasys S.p.A. Orione S.c.p.A. Sirio S.c.p.A. Other Group companies IRES tax consolidation VAT consolidation Financial guarantee contracts Total Group companies Other related parties Total Group companies and...

  • Page 334
    ...management of derivative financial instruments (Fiat Netherlands Holding N.V., see Notes 16 and 25); purchases of administrative, tax, corporate assistance and consultancy services and related IT systems (Fiat Services S.p.A. and Fiat I.T.E.M. S.p.A.), public relations services (Fiat Group Marketing...

  • Page 335
    ... venture for the production of passenger cars and SUVs. The new JV is expected to reach total production capacity of up to 500,000 vehicles per year by 2016. Nine new models (C & D segment and SUV) will be sold in the Russian market, six of which will be based on a new global Fiat-Chrysler platform...

  • Page 336
    335 List of equity investments with additional information required by Consob (Communication DEM/6064293 of 28 July 2006) Subsidiaries Company and registered office Fiat Group Automobiles S.p.A. - Turin At 31.12.08 745,031,979 portion of stock options for employees of subsidiaries impairment At 31....

  • Page 337
    336 FIAT S.P.A. STATUTORY FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES List of equity investments (continued) Company and registered office Comau S.p.A. - Grugliasco At 31.12.08 capital contribution portion of stock options for employees of subsidiaries impairment At 31.12.09 Fiat ...

  • Page 338
    ... interest in the ordinary share capital of subsidiaries is also indicated. Share Capital (e) 20,000,000 20,000,000 Result for the last financial year (e) 123,106 (918,187) Equity (e) 22,123,696 21,205,509 % owned by Fiat S.p.A. Number of shares 33,334 33,334 Book value (e) 29,974 29,974...

  • Page 339
    338 FIAT S.P.A. STATUTORY FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES List of equity investments with additional information required by Consob (communication DEM/6064293 of 28 July 2006) Associate companies Company and registered office RCS Mediagroup S.p.A. - Milan At 31.12.08 At 31.12.09 ...

  • Page 340
    ... not receive but is paid to Fiat S.p.A. The Chief Executive Officer has the right to receive, in the event of termination of the office held, a sum payable over twenty years, the amount of which, after ten years, may not be greater than five times the fixed portion of his annual compensation. The...

  • Page 341
    ...STATUTORY FINANCIAL STATEMENTS AT 31 DECEMBER 2009 NOTES STOCK OPTIONS GRANTED TO MEMBERS OF THE BOARD OF DIRECTORS, GENERAL MANAGERS AND EXECUTIVES WITH STRATEGIC RESPONSIBILITIES (ARTICLE 78 OF CONSOB REGULATION 11971/99) Options expired in the year Grantee Office held at the date of Number the...

  • Page 342
    341 STOCK GRANTS AWARDED TO MEMBERS OF THE BOARD OF DIRECTORS, GENERAL MANAGERS AND EXECUTIVES WITH STRATEGIC RESPONSIBILITIES (ARTICLE 78 OF CONSOB REGULATION 11971/99) Grantee Office held at the date of the grant Grants held at the beginning of the year Number of grants Exercise period (mm/yy) ...

  • Page 343
    ... Regulations issued by Consob, reports fees charged for 2009 for audit and audit-related services provided by the independent auditors. No services were provided by entities in their network. (â,¬ thousand) Audit Attestation Other services Total (1) Attestation of tax forms ('Modello Unico', IRAP...

  • Page 344
    ..., dated 19 July 2002; b) correspond to the amounts shown in the Company's accounts, books and records; and c) provide a fair and correct representation of the financial conditions, results of operations and cash flows of the Company as of 31 December 2009 and for the year then ended. 3.2 The report...

  • Page 345

  • Page 346
    345 AUDITOR'S REPORTS

  • Page 347
    ...the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree n. 38/2005; accordingly, they give a true and fair view of the financial position of the Fiat Group, and of the results of its operations and its cash flows for the year then ended...

  • Page 348
    ... the information reported in compliance with art. 123-bis of Italian Legislative Decree n. 58/1998 paragraph 1, letters c), d), f), l), m) and paragraph 2, letter b) included in the annual report on Corporate Governance are consistent with the consolidated financial statements of the Fiat Group as...

  • Page 349
    ...with the Auditing Standards recommended by CONSOB, the Italian Commission for listed Companies and the Stock Exchange. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes...

  • Page 350
    ...the report on operations and the information reported in compliance with art. 123-bis of Italian Legislative Decree n. 58/1998 paragraph 1, letters c), d), f), l), m) and paragraph 2, letter b) included in the annual report on Corporate Governance are consistent with the financial statements of Fiat...

  • Page 351

  • Page 352
    351 REPORTS OF THE BOARD OF STATUTORY AUDITORS

  • Page 353
    ... the results of operations for 2009 and the financial position at year end, as well as events occurring since the end of the year for consolidated companies. Based on our examination, this Report is consistent with the consolidated financial statements. Turin, 2 March 2010 THE STATUTORY AUDITORS...

  • Page 354
    ... Decree no. 58/1998 and are able to report specifically on the items which follow. We attended the meetings of the Board of Directors, where we received information on the Company's business activities and on the main operational, financial and asset transactions subject to the approval of the...

  • Page 355
    ... 2010, we received a communication from Deloitte & Touche S.p.A. - with whom we have had a frequent exchange of information - stating that Fiat S.p.A. had retained its services to perform audits of the statutory and consolidated financial statements, limited audits of the half-yearly condensed...

  • Page 356
    ... to the then prospective global strategic alliance between Fiat and Chrysler, the essential elements were provided in the report on operations accompanying Fiat's 2008 Consolidated and Statutory Financial Statements, specifically, in the section "significant events subsequent to year end and outlook...

  • Page 357
    ... is a list of positions as director or statutory auditor held by members of the Board of Statutory Auditors at other companies at 31 December 2009 (pursuant to Article 144-quinquiesdecies of the Issuer Regulations) - term of office expires upon approval of financial statements for the year indicated...

  • Page 358

  • Page 359

  • Page 360
    359 AGENDA AND RELATED REPORTS AND MOTIONS

  • Page 361
    ... profit, the remaining amount totalling approximately e79.3 million. Payment of the dividend will be from 22 April 2010, with detachment of the coupon on 19 April. The dividend will be payable on shares outstanding at the coupon detachment date. 16 February 2010 On behalf of the Board of Directors...

  • Page 362
    ...February 2010, Fiat S.p.A. owned 38,568,458 ordinary shares, equal to 3.02% of share capital. No other Group company owned Fiat shares. The maximum and minimum purchase price per share shall be directly related to the market price - specifically, the reference price reported on the Stock Exchange on...

  • Page 363
    ... purchases has not been made, without time limits or restraints and using procedures that best suit the interests of the Company, as permitted by law (including the transfer of rights related to the shares, such as, for example, stock lending). Own shares may also be used to service incentive plans...

  • Page 364
    ... Executive Officer of Fiat S.p.A. from among employees of the Company and/or its subsidiaries, consistent with the organisational criteria adopted in the past, and in particular for the 2006 and 2008 plans. Reasons for amendments to the 2009-2010 Plan In general, incentive plans based on financial...

  • Page 365
    ... with current market conditions and linked to key performance indicators for the Group. Tax effects of the Plan benefits are the responsibility of the beneficiaries. Given its characteristics, no special funds would support the Plan. Procedure for approval of amendments to the 2009-2010 Plan...

  • Page 366
    ...to the Chief Executive Officer of Fiat S.p.A. would have immediate effect while, as required by law, information on the beneficiaries and actual number of financial instruments granted in relation to the 20092011 Plan for Group executives will be communicated to the market on the grant date. As with...

  • Page 367
    ... own shares currently held. Detailed information on those plans is provided in disclosure documents issued in 2007, 2008 and 2009 available in the Corporate Governance section of the Group website (www.fiatgroup.com) under Fees and Interests Held, as well as in the Report on Operations and Notes...

  • Page 368

  • Page 369
    ... utopian concepts - such as cinema, the internet, or environmentalism - have become an integral part of our everyday lives. Artists, painters and poets love utopia because it is highly seductive, attractive and powerful. Utopia is a positive, overwhelming Weltanschauung, where anything is possible...

  • Page 370
    ...counterpart of Fluxus artists, Joseph Beuys focused and developed his work round the themes of humanism, ecology, sociology and anthroposophy. Both controversial and admired, he opened the way for a new form of artistic reflection and is considered to be one of the major artists in contemporary art.

  • Page 371
    Illustrations and creative design Atelier Roger Pfund, Communication Visuelle S.A. Geneva, Switzerland Graphic design In Adv Turin, Italy Editorial coordination Sunday Turin, Italy Printing Arti Grafiche Giacone Chieri (Turin), Italy Printed in Italy March 2010

  • Page 372
    ...-friendly Arjowiggins Graphic Cocoon Silk paper (150 gsm for internal pages and 300 gsm for cover): an extra-white coated paper made from 100% recycled pulp and FSC and Eco-label certified. By printing this document on 100% recycled paper, Fiat Group saved: 632,250 litres of water, 5,893 kg of CO2...

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