Chrysler 2011 Annual Report Download - page 115

Report on
Operations
Operating
Performance
by Sector
114
Components
Magneti Marelli
Highlights
(€ million) 2011 2010
Net revenues 5,860 5,402
Trading profit/(loss) 181 98
Operating profit/(loss) (*) 27 73
Investments in tangible and intangible assets 487 383
of which capitalized R&D costs 154 138
Total R&D expenditure (**) 309 292
Employees at year end 34,804 34,269
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
Operating Performance
Following the recovery in production volumes registered in 2010 and the first half of 2011, the auto market
began to reflect a general weakening in global economic conditions, with marked differences between emerging
markets and developed economies.
Despite trading conditions, Magneti Marelli closed 2011 with revenues up 8.5% over the prior year, on the back
of strong performance in Germany, Brazil and China, in addition to a recovery in North America. Growth in the
light commercial vehicle (LCV) market also made a positive contribution.
During the year, Magneti Marelli concluded several major agreements for development of innovative products
in its core components segments.
The sector launched a technology collaboration with Wind River, global leader in embedded and mobile
software, for the creation of the first In-Vehicle Infotainment solution that conforms to the international standards
established by the GENIVI Alliance, which brings together the leading automakers and automotive electronics
producers.
Together with Centro Ricerche Fiat, Magneti Marelli is a partner in the HeEro project, coordinated by the EU
Presidency of the Council of Ministers, whose objective is to develop and test technologies for implementation
of the eCall in-vehicle emergency call service. Magneti Marelli is a supplier of in-vehicle equipment for the project.
A partnership agreement was also signed with Mopar, Chrysler Group’s aftermarket division, under which
Magneti Marelli products and know-how will be made available to Mopar distributors to ensure full service
support for all brands. Since April 2011, Magneti Marelli parts have been available at approximately 2,300
Chrysler dealers, and the product catalogue was gradually expanded throughout the year.
Magneti Marelli and Wanxiang Qianchao Co., China’s leading manufacturer of automotive components, signed
an agreement for the creation of a joint venture in China for production of shock absorbers for passenger cars.
Magneti Marelli’s Plastic Components and Modules business line acquired a 50% interest in JCMM Automotive
D.O.O. Beograd, a joint venture with JCI. The JV will supply dashboards and fuel systems for a new Fiat
passenger car produced in Serbia.