Chrysler 2013 Annual Report Download - page 330

329
Fiat S.p.A. Statutory
Financial Statements
at 31 December 2013
30. Net financial position
Pursuant to Consob Communication of 28 July 2006 and in compliance with the CESR’s recommendations for the consistent
implementation of the European Commission’s Regulation on Prospectuses issued on 10 February 2005, the net financial position of
Fiat S.p.A. at 31 December 2013 is as follows:
(€ thousand) 31 December 2013 31 December 2012 Change
Cash and cash equivalents 1,268 554 714
Current financial receivables: -58,281 (58,281)
- from Group companies -58,281 (58,281)
- from third parties -- -
Non-current debt: (413,953) (1,412,035) 998,082
- due to Group companies (413,953) (1,412,035) 998,082
- due to third parties -- -
Current debt: (3,780,428) (1,294,074) (2,486,354)
- due to Group companies (3,755,742) (1,266,774) (2,488,968)
- due to third parties (24,686) (27,300) 2,614
Net financial position (4,193,113) (2,647,274) (1,545,839)
-due to Group companies (4,169,695) (2,620,528) (1,549,167)
- due to third parties (23,418) (26,746) 3,328
31. Significant non-recurring transactions and unusual or abnormal transactions
During 2013, Fiat S.p.A. did not take part in any significant non-recurring transaction or unusual or abnormal transaction as defined in the
Consob Communication of 28 July 2006.
32. Subsequent Events
On January 1st, 2014, Fiat S.p.A. announced an agreement with the VEBA Trust, under which its wholly-owned subsidiary, Fiat North America
LLC (“FNA”), would acquire all of the VEBA Trust’s equity membership interests in Chrysler Group LLC (“Chrysler Group”), representing 41.5%
of Chrysler Group. The transaction closed on 21 January 2014. In consideration for the sale of its membership interests in Chrysler Group, the
VEBA Trust received an aggregate consideration of USD 3,650 million consisting of a special distribution paid from available cash on hand by
Chrysler Group to its members, in an aggregate amount of USD 1,900 million (FNA directed its portion of the special distribution to the VEBA
Trust as part of the purchase consideration) and a payment from FNA for the remainder of USD 1,750 million in cash purchase consideration
to the VEBA Trust. Fiat funded the USD 1,750 million in cash from available cash on hand.
Contemporaneously with the transactions described above, Chrysler and the UAW entered into a memorandum of understanding under the
collective bargaining agreement with the UAW in which the UAW made commitments to continue to support Chrysler industrial operations and
the further implementation of the Fiat-Chrysler Alliance, including to use its best efforts to cooperate in the continued roll-out of World Class
Manufacturing, or WCM, programs, actively participate in benchmarking efforts associated with implementation of WCM programs across all
Fiat-Chrysler manufacturing sites to ensure objective performance assessments and provide for proper application of WCM principles, and
to actively assist in the achievement of the Group long-term business plan. In consideration of these commitments, Chrysler agreed to make
payments to the VEBA Trust totaling USD 700 million to be paid in four equal annual installments. The initial payment of USD 175 million was
made on 21 January 2014 and additional payments will be payable on each of the next three anniversaries of the initial payment.