Chrysler 2009 Annual Report Download - page 90

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For passenger cars only, FGA delivered a total of 1,843,400 units (an increase of 5.7% over the prior year). In
Western Europe, passenger car deliveries rose 8.9% to 1,085,100 units, with the level of demand increasing
slightly (+0.5%) over 2008. Deliveries were up 6.2% in Italy, 17.7% in the UK, and doubled in Germany
(+96.6%), significantly outpacing overall growth in those markets. Deliveries increased 1% in France, but were
down 43.9% in Spain.
The Panda and 500 continued to hold the top two positions in the A segment and the Punto was also one of
the most sold models in Western Europe.
A total of 307,300 light commercial vehicles were delivered in 2009, representing a 24.8% decrease over 2008.
In Western Europe, where the overall market declined sharply, deliveries were down 36.5% to 153,000 units.
This was partially due to measures implemented to realign dealer inventory levels to the significant slowdown
in market demand. Deliveries for the Sector decreased in all major markets: Italy (-33.2%), France (-28.9%),
Germany (-35.1%), the UK (-55.7%) and Spain (-62.9%).
Outside of the European Union, Fiat Group Automobiles strengthened its presence in those markets where it is
already well-established, such as Brazil, Argentina and Turkey, while also pursuing development opportunities
in other emerging markets in collaboration with local partners.
In Brazil, where the Sector delivered a total of 749,500 passenger cars and light commercial vehicles, sales
increased 12.6% over 2008, confirming the Sector’s leading position for the market overall.
In Argentina, the passenger car market declined 12% over 2008 and Fiat Group Automobiles recorded a
10.4% market share (down 1.5 percentage points). Deliveries of passenger cars and light commercial vehicles
decreased 27% to 47,900 units.
In Turkey, the automobile sector staged a recovery with the passenger car and light commercial vehicle market
growing 12.8% over the previous year to reach 557,000 units. Tofas (a local joint venture in which Fiat Group
Automobiles holds a 37.9% interest) saw a 40.5% increase 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 establish a global strategic alliance
and the new Chrysler became operational on the same date. The agreement grants the US automaker access
to Fiat technology, platforms and powertrains for small and medium-sized cars, which are amongst the most
innovative and advanced in the world. This will enable Chrysler to expand its product offering with the addition
of low environmental impact models. Chrysler will also have access to Fiat’s international distribution network.
The alliance represents an important step toward positioning both Fiat and Chrysler among the next generation
of leaders of the auto industry globally. As consideration, Fiat received an initial equity interest of 20% in the
newly-formed Chrysler Group LLC, which could increase up to a total of 35% upon achievement of specific
pre-established targets. The agreement does not contemplate any cash investment in Chrysler by Fiat or
commitment to fund Chrysler in the future. Fiat will also have the right to acquire a majority interest in Chrysler
once all government loans have been fully repaid. The alliance is expected to bring enormous benefits to
both companies by giving them the critical mass necessary to compete at a global level. Fiat will also be
able to expand its geographical footprint by leveraging new market opportunities such as a return to the US
market and introduction of new models in Europe. Fiat’s presence and experience in the smaller car segments
combined with Chrysler’s presence and experience in the medium and larger segments will enable the Group
to offer a full range of products.