Chrysler 2012 Annual Report Download - page 215

Notes
214 Consolidated
Financial
Statements
at 31 December
2012
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 group;
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 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 goods to the jointly-controlled entities Fiat India Automobiles Limited and GAC FIAT
Automobiles Co Ltd;
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 group and, to the Chrysler Group 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 goods for the high range and deluxe upholstery of the Group’s automobiles from Poltrona Frau group, 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 2012 and at 31 December 2011, Receivables from financing activities due from related parties also included
receivables due from Fiat Industrial group companies mainly arising from customer factoring provided by the Group’s financial services companies. On the
other hand, Debt due to related parties included certain balances due to Fiat Industrial group companies, mainly relating to factoring and dealer financing
in Latin America.
In accordance with IAS 24, transactions with related parties also include compensation payable to Directors, Statutory Auditors and managers with strategic
responsibilities.