Chrysler 2011 Annual Report Download - page 233

Consolidated
Financial
Statements
at 31 December
2011
Notes
232
37. Related party transactions
Pursuant to IAS 24, the related parties of Fiat Group are entities and individuals capable of exercising control, joint control or significant influence over Fiat
Group and its subsidiaries, companies belonging to the Exor Group, (including the Fiat Industrial group) and unconsolidated subsidiaries, associates or joint
ventures of Fiat Group. In addition, members of Fiat Group Board of Directors, Board of Statutory Auditors and executives with strategic responsibilities
and their families are also considered related parties.
The Group carries out transactions with unconsolidated subsidiaries, jointly-controlled entities, associates and other related parties, on commercial terms
that are normal in the respective markets, considering the characteristics of the goods or services involved.
Transactions carried out by the Group with unconsolidated subsidiaries, jointly-controlled entities, associates and other related parties are primarily of those
a commercial nature, which have had an effect on revenues, cost of sales, and trade receivables and payables; these transactions regard in particular:
the sale of motor vehicles to the jointly-controlled entities Tofas-Turk Otomobil Fabrikasi A.S. and FGA Capital;
the sale of engines, other components and production systems to the jointly-controlled entities Società Europea Veicoli Leggeri-Sevel S.p.A. and
Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme and, to the Chrysler Group in 2010 and in the first 5 months of 2011 and
companies of the Fiat Industrial group;
the provision of services, recharges of research costs and the sale of materials to the jointly-controlled entity Fiat India Automobiles Limited;
the sale of publishing products to the associate To-dis;
the purchase of motor vehicles from the jointly-controlled entities Società Europea Veicoli Leggeri-Sevel S.p.A., Tofas-Turk Otomobil Fabrikasi A.S,
Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme and FGA Capital and, to the Chrysler Group in 2010 and in the first 5
months of 2011;
the purchase of engines from the jointly-controlled entity Fiat India Automobiles Limited and from the VM Motori group;
the purchase of commercial vehicles from the Fiat Industrial Group;
the purchase of steel from Tata Steel IJmuiden BV (formerly the Corus group), which is part of the Tata group;
the purchase of goods for the high range and deluxe upholstery of the Group’s automobiles from Poltrona Frau S.p.A., a company listed on the Italian
Stock Exchange in which Fiat S.p.A. Board member Luca Cordero di Montezemolo holds an indirect investment.
The most significant financial transactions with related parties generated receivables from financing activities of the Group’s financial services companies
due from jointly-controlled entities and asset-backed financing relating to amounts due to FGA Capital for the sale of receivables which do not qualify for
derecognition under IAS 39. At 31 December 2010, Receivables from financing activities due from related parties mainly relates to financing provided by the
central treasury companies of the Fiat Group remaining within Fiat Group Post-Demerger (Fiat Finance S.p.A., Fiat Finance and Trade Ltd SA, Fiat Finance
Canada Ltd and Fiat Finance North America Inc.) to the companies transferred to Fiat Industrial Group and Debt payable to related parties consisting mainly
of cash held on deposit with the treasury companies remaining in the Fiat Group Post- Demerger by the companies transferred to the Fiat Industrial Group.
Finally, regarding transactions with other related parties, the Group sold its interest in Fiat Switzerland and certain minor businesses to the Fiat Industrial
group in 2011, realising disposal gains totalling €12 million. In addition, in 2011 the Group recognised income of €72 million, classified as Interest income
and other financial income, calculated after the Demerger using market values and relating to the early repayment of the outstanding medium-term financial
receivables due from the Fiat Industrial group at 31 December 2011.
In accordance with IAS 24, transactions with related parties also include compensation payable to Directors, Statutory Auditors and managers with strategic
responsibilities.