Chrysler 2009 Annual Report Download - page 91

REPORT ON
OPERATIONS
OPERATING
PERFORMANCE
BY SECTOR
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Chrysler’s strategic business plan, presented at the beginning of November 2009, projects the launch of 21
new models over the next five years with sales volumes increasing to 2.8 million cars by 2014 (40% higher
than in 2008 and more than double 2009 volumes). Approximately 60% of those vehicles are to be based
on Fiat platforms. By 2014, Chrysler expects to have annual revenues of approximately USD 68 billion and
operating income of USD 5 billion, with its current debt level halved and loans from the American and Canadian
governments fully repaid.
To further strengthen its position in terms of both products and distribution capability in international markets,
Fiat signed a framework agreement in July with GAC (Guangzhou Automobile Group Co. Ltd.) for the creation
of a 50/50 joint venture in China to produce engines and passenger cars for the Chinese market. GAC, a state-
owned company and one of the largest passenger car manufacturers in China, operates in both the domestic
and international markets. The agreement calls for the construction of a new plant and total investment by
the joint venture is projected to be in excess of €400 million. The joint venture will initially have a production
capacity of up to 140,000 passenger cars and 220,000 engines a year, which may be increased to 250,000
cars and 300,000 engines. Start of production is planned for the second half of 2011. The joint venture was
approved by the National Development and Reform Commission in November 2009, and final approval is
expected in the first quarter of 2010.
INNOVATION AND PRODUCTS
In 2009, despite the global economic crisis that had a severe impact on the automobile industry, Fiat Group
Automobiles was 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 products.
For the Fiat brand, 2009 was the year of the Punto Evo, a companion to the Grande Punto that sets a new
standard in innovation, safety and style in the B segment. The “Evo” in the name underscores the technological
progress and excellence that this model embodies, above all with its extensive range of Euro 5 engines including
the second-generation 1.3 MultiJet, 1.4 MultiAir and CNG/gasoline engines.
Other products launched during the year include the Fiat 500C cabriolet with a sophisticated, electrically
controlled soft-top. Toward the end of the year, the new Euro 5 1.3 MultiJet II engine, equipped with the
Start&Stop system as standard, was made available on both the Fiat 500C and Fiat 500. In October, sale of the
Fiat 500 began in Brazil. The vehicle was equipped with modified injection and suspension system to adapt it
to the requirements of the local market. As further evidence of the success of the Fiat 500, it was named “2009
World Car Design of the Year“ in New York by a panel of 59 automotive sector journalists from 25 countries
around the world.
December saw the launch of the “family space” Fiat Doblò, with new styling, range of engines and upgraded
technical specifications. Fiat also expanded its offer of bifuel cars (LPG/gasoline and CNG/gasoline), which now
includes the Punto Classic, Idea, Qubo, Panda, Grande Punto and Bravo. In addition, the Sedici underwent
styling and engine upgrades, and there was the unveiling of the Panda Panda Cross, the first low environmental
impact City SUV, the special edition Bravo MSN Edition, the result of a collaboration with Microsoft, and the
special edition Fiat Panda 4x4 Adventure. The Trekking version of the Qubo also made its debut.
Finally, already leader two years running, in September 2009 the Fiat brand was once again confirmed by JATO
Dynamics as having the lowest average CO2 emissions amongst the top 25 selling brands in Europe.
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