Chrysler 2009 Annual Report Download - page 107

REPORT ON
OPERATIONS
OPERATING
PERFORMANCE
BY SECTOR
106
Finally, the company established a three-year investment plan to increase the flexibility of its infrastructure and
logistics processes, partly in view of the fact that the market is not expected to recover in the near term.
Despite difficult economic conditions, 2009 provided confirmation of the value of investment by the service
network in technical and diagnostic expertise. During the year, a new call management system for technical
assistance and spare parts requests was implemented for the Western European network, making it possible
to measure, in both quantitative and qualitative terms, the level of service provided by Help Desks. This forms
the basis of the VOR Log system, which monitors vehicles being serviced across the network so that activities
carried out at Iveco and the service centres can be optimised to minimise vehicle downtime. Launched in 2009,
this system will be rolled out 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
venture with Barclays Group in which Iveco holds a 49% stake (accounted for under the equity method). This
joint venture supports the Sector’s European sales through dealer and retail financing in France, Germany, Italy,
Switzerland and the United Kingdom.
In Spain, the activity is managed by Transolver Finance Est. Financiero de Credito S.A., a 50/50 joint venture
with the Santander Group (accounted for under the equity method). The company offers both dealer and retail
financing. Iveco also provides medium and long-term rental services in Spain through Transolver Service S.A.,
a wholly-owned subsidiary (consolidated on a line-by-line basis).
In Switzerland, Austria and Eastern Europe the activity is run by captive financial services companies
(consolidated on a line-by-line basis).
During 2009, the economic downturn had a severe impact on the Sector’s sales volumes and, as a result, new
financing volumes were also down in both Western and Eastern Europe.
For fully-consolidated subsidiaries only, the number of financed vehicles in 2009 was 2,776 (6,229 in 2008),
with 1,118 new vehicles financed (3,260 in 2008) representing a penetration rate of 39% (39.2% in 2008).
If the activities of Iveco Finance Holdings Ltd. are added, the number of vehicles financed through the Sector’s
Financial Services activities decreased from 43,146 in 2008 to 22,637 in 2009. A total of 14,458 new vehicles
were financed (30,738 in 2008), representing a penetration rate of 22.4% (28.2% in 2008).