Chrysler 2000 Annual Report Download - page 81

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The Fiat Group is divided into Sectors, each of which is
headed by a different company. The Group also includes
companies which, because of their specialized nature, are
able to provide administrative, training and other support
services to the operating units in a fashion that enables them
to pursue continuous improvements in quality and economies
of scale.
Transactions between Group companies, whether they are
made to support vertical manufacturing integration or to
provide services, are carried out at competitive terms,
considering the quality of the goods or services involved.
Within this framework, the main transactions between the
Parent Company, Fiat S.p.A., and its subsidiaries and
associated companies are summarized below:
❚Sale of receivables from the Tax Authorities to the
subsidiaries Sicind S.p.A., Magneti Marelli Climatizzazione
S.p.A., Fiat Hitachi Excavators S.p.A., Fenice S.p.A., Astra
Veicoli Industriali S.p.A., Editrice La Stampa S.p.A. and
other Group companies, which will be used for offsetting
purposes, as allowed under Article 3, Section 94, Letter b,
of Law No. 549 of 12/28/95.
❚Issuance of guarantees for bank loans provided to Fiat
Brasil Ltda, Teksid S.p.A., FMA S.p.A. and Banco CNH
Capital S.A.; and for bonds issued and credit lines received
by Fiat Finance and Trade Ltd and New Holland Credit LLC.
Ongoing transactions include:
❚Licensing of the right to use the Fiat trademark, for a
consideration based on a percentage of sales, to Fiat Auto
S.p.A. (0.5%), Iveco S.p.A. (0.2%) and Soparind S.p.A.
(formerly Fiat Ferroviaria S.p.A.) (0.5%).
❚Services provided by Fiat management personnel to Fiat
Auto S.p.A., Iveco S.p.A., Teksid S.p.A., Magneti Marelli
S.p.A., Toro Assicurazioni S.p.A. and other Group
companies.
❚Grant of suretyships and guarantees in connection with
the issuance of debentures by FiatSava S.p.A.; commercial
paper, money market claims and billets de trésorerie by
New Holland Credit Company LLC, Fiat Finance Canada
Ltd., Fiat Finance and Trade Ltd., Fiat France S.A. and Fiat
Polska Sp.z.o.o.; to secure bank loans obtained by Fiat
Auto S.p.A., Iveco S.p.A., Teksid S.p.A., Fiat Automoveis
S.A., Iveco Fiat Brasil Ltda and other Group companies;
and lease payment obligations for buildings rented by Fiat
Se.p.In. S.c.p.A., Fiat Auto S.p.A., Isvor Fiat S.p.A., Editrice
La Stampa S.p.A., Pro.Ca.R. Deutschland GmbH, Inter
M.A.P. (France) S.A., Fiat Motori Sales Ltd. and other
Group companies.
❚Rental of buildings to Fiat Se.p.In. S.c.p.A. and INGEST
SEGIM S.p.A.
❚Deposit of liquid funds with Fiat Ge.Va. S.p.A.
❚Loan to Elasis S.c.p.A.
❚Purchase of support and consulting services provided by
Fiat Gesco S.p.A. (taxation, law and administration), Fiat
Ge.Va. S.p.A. (financial services) and Fiat International
S.p.A. (international relations). These companies were
established specifically for these purposes.
❚Purchase of inspection and internal auditing services
from Fiat Revi S.c.p.A.
❚Purchase of information technology services provided
by ITS S.r.l. and Fiat G.S.A. S.r.l.
❚Purchase of external relations services provided by Fiat
I.&C.S. S.r.l.
❚Purchase of telecommunications services provided by
Telexis S.r.l.
❚Purchase of support and consulting services outside Italy
provided by Fiat USA Inc., Fiat U.K. Ltd. and Fiat Iberica
S.A.
❚Purchase of office space, personal and real property
maintenance services provided by Fiat Se.p.In. S.c.p.A.
and INGEST SEGIM S.p.A. Real estate services and other
general services provided, respectively, by IPI S.p.A. and
by Fiat Se.p.In. S.c.p.a.
❚Purchase of personnel training services provided by Isvor
Fiat S.p.A.
❚Purchase of insurance services provided by Augusta
Assicurazioni S.p.A.
❚Purchase of automobiles from Fiat Auto S.p.A.
In 2000, Fiat S.p.A. underwrote capital increases carried out
by Fiat Ge.Va. S.p.A., Comau S.p.A. and Toro Assicurazioni
S.p.A.; conveyed ownership of Comau S.p.A. to Comau B.V.;
and transferred its interests in Sestrieres S.p.A., ITS S.r.l., Fiat
G.S.A. S.r.l. and Fast-Buyer S.p.A. to Business Solutions S.r.l.
In addition, it transferred the entire capital stock of Magneti
Marelli S.p.A. to Fiat Netherlands Holding N.V.
Details about the transactions with the greatest financial
impact are provided in the analysis of the individual items
in the Notes to the Financial Statements.
Transactions among Group Companies and with Related Parties