Chrysler 2014 Annual Report Download - page 38

36 2014 | ANNUAL REPORT
Overview
Overview
We are an international automotive group engaged in designing, engineering, manufacturing, distributing and selling
vehicles, components and production systems. We are the seventh largest automaker in the world based on total
vehicle sales in 2014. We have operations in approximately 40 countries and sell our vehicles directly or through
distributors and dealers in more than 150 countries. We design, engineer, manufacture, distribute and sell vehicles
for the mass market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram
brands and the SRT performance vehicle designation. We support our vehicle sales by after-sales services and
parts worldwide using the Mopar brand for mass market vehicles. We make available retail and dealer financing,
leasing and rental services through our subsidiaries, joint ventures and commercial arrangements. In addition, we
design, engineer, manufacture, distribute and sell luxury vehicles under the Ferrari and Maserati brands, which we
support with financial services provided to our dealers and retail customers. We also operate in the components and
production systems sectors under the Magneti Marelli, Teksid and Comau brands.
Our activities are carried out through seven reportable segments: four regional mass-market vehicle segments
(NAFTA, LATAM, APAC and EMEA), Ferrari and Maserati, our two global luxury brand segments, and a global
Components segment (see Overview of Our Business for a description of these reportable segments).
On October 29, 2014 our Board of Directors announced that it had authorized the separation of Ferrari from FCA.
The separation is expected to be effected through a public offering of a portion of our interest in Ferrari and a spin-off
of our remaining equity interest in Ferrari to our shareholders.
In 2014, we shipped 4.6 million vehicles. For the year ended December 31, 2014, we reported net revenues of €96.1
billion, EBIT of €3.2 billion and net profit of €0.6 billion. At December 31, 2014 we had available liquidity of €26.2
billion (including €3.2 billion available under undrawn committed credit lines). At December 31, 2014 we had net
industrial debt of €7.7 billion.
History of FCA
FCA was incorporated as a public limited liability company (naamloze vennotschap) under the laws of the Netherlands
on April 1, 2014. Its principal office is located at 25 St. James’s Street, London SW1A 1HA, United Kingdom
(telephone number: [phone]).
Fiat, the predecessor to FCA, was founded as Fabbrica Italiana Automobili Torino, on July 11, 1899 in Turin, Italy as an
automobile manufacturer. Fiat opened its first factory in 1900 in Corso Dante in Turin with 150 workers producing 24
cars. In 1902 Giovanni Agnelli, Fiat’s founder, became the Managing Director of the company.
Beginning in 2008, Fiat pursued a process of transformation in order to meet the challenges of a changing
marketplace characterized by global overcapacity in automobile production and the consequences of economic
recession that has persisted particularly in the European markets on which it had historically depended. As part
of its efforts to restructure operations, Fiat worked to expand the scope of its automotive operations, having
concluded that significantly greater scale was necessary to enable it to be a competitive force in the increasingly
global automotive markets.
In April 2009, Fiat and Old Carco LLC, formerly known as Chrysler LLC, or Old Carco, entered into a master
transaction agreement, pursuant to which FCA US LLC, formerly known as Chrysler Group LLC, or FCA US, agreed to
purchase the principal operating assets of Old Carco and to assume certain of Old Carco’s liabilities. Old Carco traced
its roots to the company originally founded by Walter P. Chrysler in 1925 that, since that time, expanded through the
acquisition of the Dodge and Jeep brands.
Following the closing of that transaction on June 10, 2009, Fiat held an initial 20 percent ownership interest in FCA
US, with the UAW Retiree Medical Benefits Trust, or the VEBA Trust, the U.S. Treasury and the Canadian government
holding the remaining interests. FCA US’s operations were funded with financing from the U.S. Treasury and Canadian
government. In addition, Fiat held several options to acquire additional ownership interests in FCA US.