Chrysler 2011 Annual Report Download - page 118

117
Report on Operations
Fiat Powertrain
Highlights
(€ million) 2011 2010
Net revenues 4,450 4,211
Trading profit/(loss) 131 140
Operating profit/(loss) (*) 134 172
Investments in tangible and intangible assets 269 385
of which capitalized R&D costs 59 53
Total R&D expenditure (**) 87 80
Employees at year end 12,552 12,453
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
Operating Performance
Volumes for Fiat Powertrain, which produces engines and transmissions for passenger cars and LCVs, were
in line with the prior year. Declines in several major European markets were offset by growth in South America.
The sector reported full-year revenues of €4,450 million, an increase of 5.7% over the prior year, with sales to
external customers and joint ventures accounting for 14% of total revenues (13% in 2010). During the year, a
total of 2,352,000 engines (+0.2%) and 2,278,000 transmissions (+2.0%) were sold. Sales of diesel engines to
external customers accounted for approximately 9% of total volumes (9% in 2010).
In June, Fiat Powertrain completed the acquisition of a 50% interest in VM Motori S.p.A., a company specialized
in design and production of diesel engines, now jointly controlled with General Motors. This transaction gave
the sector access to several advanced products and applications, including a newly-developed V6 turbodiesel
which saw its first application on the Jeep Grand Cherokee.
Also in June, Fiat Powertrain and Suzuki Motor Corporation signed an agreement under which Fiat Powertrain
will supply its 120 hp 1.6 MultiJet II diesel engine from 2013. This agreement further extends the long-standing
partnership between the two groups, which already involves the supply of a 135 hp 2.0 MultiJet engine and
production under license of 75 and 90 hp versions of the 1.3 liter MultiJet Small Diesel Engine by Suzuki Maruti
in India.
The technological excellence of the TwinAir engine family was recognized by an international panel of 76
journalists which named it “International Engine of the Year”, “Engine of the Year in sub 1 liter category”, as well
as “Green Engine of the Year” and “Best New Engine of the Year”.
Readers of the German auto magazine Auto Motor und Sport awarded the TwinAir engine the “Paul Pietsch”
prize for technological development.
Innovation and Products
During 2011, Fiat Powertrain continued development of several innovative powertrain systems for Fiat Group
Automobiles.
For the TwinAir and FIRE engine families, efforts focused on further reductions in fuel consumption and emissions
in line with the new Euro 5+ and Euro 6 standards.