Chrysler 2010 Annual Report Download - page 111

REPORT ON
OPERATIONS
OPERATING
PERFORMANCE:
CONTINUING
OPERATIONS
110
FIAT POWERTRAIN
HIGHLIGHTS
(€ million) 2010 2009
Net revenues 4,211 3,372
Trading profit/(loss) 140 104
Operating profit/(loss) (*) 172 77
Investments in tangible and intangible assets 385 401
of which capitalized R&D costs 53 36
Total R&D expenditure (**) 80 55
No. of employees at year end 12,453 11,408
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
OPERATING PERFORMANCE
Fiat Powertrain produces engines and transmissions for passenger cars and light commercial vehicles (the
Passenger & Commercial Vehicles business line of the former FPT Powertrain Technologies).
During 2010, it acquired the remaining 50% of Fiat Powertrain Polska Sp.z.o.o. (formerly Fiat-GM Powertrain
Polska), which is now fully consolidated.
Over the year, the sector experienced a stabilization in sales volumes, with declines resulting from the phase-out
of eco-incentives in several major European markets offset by market growth in South America.
Fiat Powertrain reported €4,211 million in revenues, an increase of 24.9% over 2009 (+11.1% on a like-for-like
basis). Sales to customers external to the Fiat Group as well as to joint ventures accounted for 13% of total
revenues (10% on a comparable scope of operations and 8% for 2009).
A total of 2,347,000 engines (+2.5% on a like-for-like basis) and 2,233,000 transmissions (+1.1%) were sold
during the year. Sales of diesel engines to external customers accounted for approximately 9% of total sales
volumes (7% in 2009).
At the beginning of October, the sector received the prestigious international “Technobest 2010” award from
Autobest magazine for its innovative 2-cylinder TwinAir engine (based on the selection of an independent
panel of 15 trade journalists from 14 countries). The new 1.4 MultiAir Turbo was named “Best New Engine
2010”, one of the prestigious “Engine of the Year” categories awarded by an international panel of 65 trade
journalists from 32 countries. The MultiAir technology was also recognized in the US, with Popular Science
magazine naming it “Best of What’s New” for its innovative features.
INNOVATION AND PRODUCTS
During 2010, Fiat Powertrain continued to develop innovative powertrain systems (engines and transmissions
combined) for Fiat Group Automobiles.
For small gasoline engines, the principal focus was development of the new family of 2-cylinder engines, which
led to the production launch and first application of the new 85 hp turbo-charged TwinAir that combines the
revolutionary MultiAir system with fluid-dynamic technology for optimized combustion. Lighter and smaller