Chrysler 2015 Annual Report Download - page 54

54 2015 | ANNUAL REPORT
Operating Results
Research and development costs
For the Years Ended December 31, Increase/(decrease)
(€ million, except percentages) 2015
Percentage
of net
revenues 2014
Percentage
of net
revenues 2013
Percentage
of net
revenues 2015vs.2014 2014 vs. 2013
Research and development
expensed during the year 1,449 1.3% 1,320 1.4% 1,257 1.5% 129 9.8% 63 5.0%
Amortization of capitalized
development costs 1,194 1.1% 932 1.0% 768 0.9% 262 28.1% 164 21.4%
Write-down of costs
previously capitalized 221 0.2% 82 0.1% 250 0.3% 139 n.m.(1) (168) (67.2)%
Research and
development costs 2,864 2.6% 2,334 2.5% 2,275 2.7% 530 22.7% 59 2.6%
(1) Number is not meaningful.
We conduct research and development for new vehicles and technology to improve the performance, safety, fuel
efficiency, reliability, consumer perception and environmental impact of our vehicles. Research and development costs
consist primarily of material costs and personnel related expenses that support the development of new and existing
vehicles with powertrain technologies.
2015 compared to 2014
The increase in amortization of capitalized development costs in 2015 compared to 2014 was mainly attributable to
the launch of new products primarily related to the NAFTA segment driven by the all-new 2015 Jeep Renegade, the
Jeep Cherokee and the Dodge Challenger, as well as the EMEA segment driven by the all-new 2015 Fiat 500X.
The write-off of costs previously capitalized during the year ended December 31, 2015 mainly related to the Group’s
plan to realign a portion of its capacity in NAFTA to better meet market demand for Ram pickup trucks and Jeep
vehicles within the Group’s existing plant infrastructure, which resulted in an impairment charge of €176 million for
capitalized development costs that had no future economic benefit and which were excluded from Adjusted EBIT for
the year ended December31, 2015.
2014 compared to 2013
The increase in amortization of capitalized development costs in 2014 compared to 2013 was attributable to the
launch of new products, and in particular related to the NAFTA segment, driven by the all-new 2014 Jeep Cherokee,
which began shipping to dealers in late October 2013, and the all-new 2015 Chrysler 200, which was launched in the
first quarter of 2014 and began arriving in dealerships in May 2014.
Result from investments
For the Years Ended December 31, Increase/(decrease)
(€ million, except percentages) 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
Result from investments 143 131 84 12 9.2% 47 56.0%
2015 compared to 2014 and 2014 compared to 2013
The increase in Result from investments in 2015 compared to 2014 and the increase in 2014 compared to 2013 was
primarily attributable to improved results of FCA Bank S.p.A. (“FCA Bank”), a jointly-controlled finance company that
manages activities in retail automotive financing, dealership financing, long-term car rental and fleet management in 17
European countries, and Tofas-Turk Otomobil Fabrikasi A.S. (“Tofas”) a jointly-controlled Turkish automaker.