Chrysler 2010 Annual Report Download - page 113

REPORT ON
OPERATIONS
OPERATING
PERFORMANCE:
CONTINUING
OPERATIONS
112
COMPONENTS
Magneti Marelli
HIGHLIGHTS
(€ million) 2010 2009
Net revenues 5,402 4,528
Trading profit/(loss) 98 25
Operating profit/(loss) (*) 73 (40)
Investments in tangible and intangible assets 383 356
of which capitalized R&D costs 138 114
Total R&D expenditure (**) 292 245
No. of employees at year end 34,269 31,628
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
OPERATING PERFORMANCE
During 2010, there was a global recovery in production volumes for passenger cars and light commercial
vehicles. In Europe, Magneti Marelli benefited from growth in demand for light commercial vehicles and recovery
in the medium-to-large passenger car segments, which had been particularly hard hit in 2009. By contrast, it
was negatively impacted by the decline in the A and B segments following the phase-out of eco-incentives.
Magneti Marelli closed 2010 with revenues up 19.3% over 2009.
During the year, the sector concluded several major agreements for the development of innovative products in
its core components activities.
In collaboration with the Harman Group, Magneti Marelli will provide the next generation infotainment system
for a major German client. The new system will combine Magneti Marelli’s open platform with the expertise of
its partner in audio and high-end applications.
Magneti Marelli and Accenture signed a five-year partnership agreement for the design and development of
in-vehicle infotainment, telematics and embedded software projects. Accenture will contribute to developing
and managing the digital entertainment and communication solutions and services.
With the US company, ElectroJet, Magneti Marelli signed a partnership agreement for the production and sale
of an engine control system that provides a simple and cost-effective solution for application of electronic fuel
injection on 2 and 3-wheel vehicles. This agreement is targeted at the Asian market for 2-wheel vehicles, which
offers attractive business potential for the sector.
With regard to the development of production activities, in early June the joint venture established by Magneti
Marelli and Shanghai Automobile Gear Works opened a new plant in Jiading (Shanghai) to produce hydraulic
components for approximately 300,000 Magneti Marelli Freechoice™ automated transmissions annually. In
addition, a new plant began production of suspension systems in the United States and another in Russia
began production of lighting.