Operating Sectors The Fiat Group in 1999 - FCA Group

Transcription

The Fiat Group in 1999
Operating Sectors
Contents
Financial Highlights by Sector
1
The Fiat Group
2
Products and Services of the Group
4
Operating Sectors
Automobiles (Fiat Auto)
6
Ferrari and Maserati
12
Commercial Vehicles (Iveco)
14
Agricultural and Construction Equipment (CNH Global)
20
Metallurgical Products (Teksid)
26
Components (Magneti Marelli)
30
Production Systems (Comau)
34
Aviation (FiatAvio)
38
Rolling Stock and Railway Systems (Fiat Ferroviaria)
40
Publishing and Communications (Itedi)
42
Insurance (Toro Assicurazioni)
44
Services
46
Principal Fiat Group Companies
This Report is available on the Internet at
www.fiatgroup.com
48
Consolidated Revenues
in millions of euros
46,257 45,769
39,092
48,123
Financial Highlights of the Fiat Group
40,244
1999
1998
1997
1996
1995
Operating income
788
746
1,791
932
1,717
Income before taxes
1,024
1,442
2,160
1,965
1,758
Income before minority interest
506
916
1,550
1,420
1,329
Group net income
353
621
1,248
1,225
1,109
1,420
1,340
(1,142) (1,341)
Net financial position (Net borrowings)
1995
1996
1997
1998
1999
14,767
15,120
15,462
14,026 13,236
Group interest in stockholders’ equity
12,874
12,998
13,203
12,042 11,178
plus depreciation and amortization)
2,860
3,226
4,184
3,867
3,501
Capital expenditures
2,712
2,418
2,398
2,746
2,918
Research and development
1,406
1,264
1,166
1,129
1,079
Operating income from
Industrial Activities/Net revenues
1.9%
2.2%
4.4%
2.9%
4.8%
Operating income/Average
net invested capital
4.8%
5.4%
12.2%
6.3%
12.3%
Income before minority
interest/Net revenues
1.1%
2.0%
3.4%
3.5%
3.4%
Net income/Average stockholders’
equity (after minority interest)
2.7%
4.7%
9.9%
10.5%
10.3%
(480)
(714)
144
(607)
26
Cash flow
Net Invested Capital
18,798
14,577 15,168
14,122 13,700
(4,031)
Stockholders’ equity
including minority interest
(income before minority interest
Value creation (*)
(*) Difference between operating income for the fiscal year (including investment income) and the cost of average net
invested capital at an annual rate of 10% in 1999, and of 12% in the previous years.
1995
1996
1997
1998
1999 (*)
(*) Includes the controlling interest in the Case Group
acquired at the end of 1999 and valued at cost.
Statistical data by geographical region
Companies
Employees
Facilities
Research and
development
Centers
Italy
233
122,730
83
72
Europe excluding Italy
454
53,654
79
34
67
27,883
24
9
North America
161
9,379
38
12
Other regions
133
7,673
25
4
1,048
221,319
249
131
number
Number of Employees
237,426 237,865 242,322
Mercosur
220,549 221,319
Total
Fiat S.p.A. adopted the euro as its reporting currency as of January 1, 1999, opting for
an early use of this currency, as allowed under Legislative Decree No. 213/1998 “Provisions
Governing the Introduction of the Euro in the Italian National System.”
The Consolidated and Statutory Financial Statements at December 31, 1999 of Fiat
S.p.A. are therefore denominated in euros. To make the respective data comparable,
the amounts for the previous years have been restated in euros using the fixed exchange
rate of 1 euro = 1,936.27 lire established on December 31, 1998.
1995
1996
1997
1998
1999
Financial Highlights by Sector
Net revenues
Operating income
1999
(in millions
of euros)
1998
(in millions
of euros)
24,101
24,859
(121)
7,387
6,649
5,246
1,682
Production Systems (Comau/Pico)
Aviation (FiatAvio)
1998
(in millions
of euros)
Income before
minority interest
1999
(in %)
1998
(in %)
(108)
(0.5)
(0.4)
(493)
(258)
311
261
4.2
3.9
180
192
5,127
371
452
7.1
8.8
216
507
1,165
76
42
4.5
3.6
26
4
4,062
3,793
108
56
2.7
1.5
107
21
1,693
843
43
2.5
(0.1)
(8)
(6)
1,361
1,361
109
60
8.0
4.4
61
79
375
389
13
18
3.5
4.6
3
(1)
413
437
17
19
4.1
4.3
11
–
1999
(in millions
of euros)
Operating
income from
Industrial Activities/
Net revenues
(1)
1999
(in millions
of euros)
1998
(in millions
of euros)
3,922
2,959
(103)
(168)
n.m.
n.m.
92
64
Miscellaneous and eliminations
(2,119)
(1,813)
(36)
115
n.m.
n.m.
311
314
746
1.9
2.2
506
916
Total for the Group
48,123
45,769
Cash flow
788
Number
of employees
Net invested capital
1999
(in millions
of euros)
1998
(in millions
of euros)
1999
(in millions
of euros)
1998
(in millions
of euros)
1999
(in millions
of euros)
1998
(in millions
of euros)
1999
1998
855
1,146
1,464
1,373
5,021
5,863
82,553
93,514
433
368
359
307
2,359
1,764
36,217
31,912
333
624
178
151
5,777
1,123
19,049
21,344
123
74
182
73
793
504
14,522
10,981
310
254
209
222
1,289
1,270
25,613
29,398
30
12
26
14
485
165
16,943
7,103
Production Systems (Comau/Pico)
Aviation (FiatAvio)
145
167
42
36
163
159
5,590
5,962
18
15
11
12
29
94
2,109
2,294
19
11
8
9
25
21
934
1,473
120
89
97
25
311
327
2,907
2,869
Miscellaneous and eliminations
474
466
136
196
2,546
2,410
14,882
13,699
2,860
3,226
2,712
2,418
18,798
Total for the Group
13,700 221,319 220,549
1
FIAT
Main acquisitions/agreements strengthening the Group competitiveness
G R O U P
Automobiles (45%)
r
ou s
on se
g nes
sin si
cu bu
Fo ore
c
Agricultural and
Construction
Equipment (10%)
to
m
er
sa
tis
fa
ct
Focusing and
motivating
management
n
e
ing th
then
Leng chain
value
●
●
ity
focusing on its core businesses, globalizing its activities, lengthening the value chain and innovating its products.
The Fiat Group is pursuing aggressively all these main avenues of growth. Its commitment is demonstrated
by the major acquisitions and alliances it has concluded, the increasingly balanced geographic mix of its
ex
ucts
pl
m
co
vatin
revenues, the expanding range of its services, the streamlining of its organization, and the successful launch
of new products.
Inno
Metallurgical Products (3%)
Components (7%)
During its long history, Fiat has often been ahead of its time, anticipating trends and repeatedly transforming
Production Systems (3%)
itself in an effort to seize every available growth opportunity. The Company has chosen to go down this road
once again, as it continues the journey and the industrial adventure it started in Turin over a century ago.
Aviation (3%)
automobile market in Italy, driving the expansion of the national
competitive position in Europe and the rest of the world. This
was particularly true in Southern Italy, where Fiat stimulated
economic growth with the construction of one of its biggest
manufacturing hubs.
The Group also provided a significant contribution to the
economic expansion of emerging countries, where the
1 – Paolo Annibaldi, Corporate Senior Vice President External Relations and Communication Fiat S.p.A.
2 – Giancarlo Boschetti, Chief Executive Officer Iveco N.V.
3 – Paolo Cantarella, Chief Executive Officer Fiat S.p.A.
4 – Damien Clermont, Chief Financial Officer Fiat S.p.A.
5 – Luca Cordero di Montezemolo, Chairman and Chief Executive Officer Ferrari S.p.A.
6 – Pier Luigi Fattori, Corporate Senior Vice President Human Resources Fiat S.p.A.
7 – Paolo Fresco, Chairman Fiat S.p.A.
8 – Carlo Gatto, Chief Administration Officer Fiat S.p.A.
9 – Francesco Paolo Mattioli, Executive Vice President Fiat S.p.A.
10 – Paolo Monferino, Executive Vice President Fiat S.p.A.
11 – Umberto Quadrino, Co-Chairman CNH Global N.V.
12 – Jean Pierre Rosso, Chairman and Chief Executive Officer CNH Global N.V.
13 – Roberto Testore, Chief Executive Officer Fiat Auto S.p.A.
Company used the expertise it developed with its early
automotive ventures to implement its overall growth strategy.
2
●
To translate these values into concrete actions, the Company is committed to fully implementing its strategies:
Publishing and Communications (1%)
economy and contributing to the enhancement of its
(*) It includes the following service activities operated by the Industrial
Sectors: financial, insurance and mobility services supplied by Fiat Auto,
Iveco and CNH Global; Magneti Marelli’s quick-service centers and infomobility
services; Comau’s plant maintenance operations, etc.
●
●
●
●
●
means the attainment of a leadership position in those markets where the Group chooses to operate.
Fiat was the main force behind the development of a mass
15% Services (*)
●
●
●
●
●
●
●
Lengthening
the value chain
This approach is dictated by the pursuit of a specific goal: the achievement of competitive excellence, which
g ou
r pro
d
Insurance (7%)
Achieving
competitive
excellence
Value
Creation
Rolling Stock and Railway Systems (1%)
85% Industrial
Activities
●
●
●
●
customer satisfaction, and the enhancement of its human resources.
s
ng
Service Sectors (8%)
g ou
r acti
vitie
ci
Other companies (4%)
alizin
du
Being a
Group
its mission to include every area of mobility: from
cars to aircraft, from trucks to trains, from farm
tractors to marine engines and, in more recent
Globalization
Joint venture with Yuejin Motor Company (China)
Set up of Fiat Auto Egypt Industrial
Strategical industrial alliance with General Motors
Iveco
Acquisition of a majority interest in Fraikin (France)
CNH Global
Acquisition of a majority interest in Case Corporation (United States)
Teksid
Acquisition of a majority interest in Meridian Technologies (magnesium)
Magneti Marelli
Joint venture with Bosch (lighting)
Acquisition Seima Group (lighting)
Comau
Acquisition Pico Group (United States)
Acquisition of a majority interest in Renault Automation (France)
Acquisition of Sciaky activities (France)
Toro Assicurazioni Acquisition of the French operations of the Guardian Group
creating increasingly complex competitive challenges. In its endeavors, it is bolstered by the values it has
consistently applied over its one-hundred-year history and which will guide it into the future: value creation,
io
Glob
Fiat is a lot more than just cars. The Company
leveraged its expertise in an original and perhaps
unique way among international groups, expanding
products and components, followed later on by
production systems, insurance and support
services.
STRATEGIES
Other Industrial
Sectors (17%)
subsequent development and translated into the
manufacturing of high-tech quality products and
the adoption of the most innovative industrial and
organizational systems.
years, even space launchers. Fiat’s industrial
diversification continued at an increasingly rapid
pace, with a growing presence in metallurgical
VALUES
Ferrari and Maserati (2%)
us
growth strategy — penetration of foreign markets
and focus on innovation — which characterized its
Commercial Vehicles (14%)
C
of the European automobile industry. Since its
inception, the Company followed a two-prong
Leadership
Fiat Auto
Re
Established in 1899, Fiat was one of the founders
Revenues by Sector
E
hu n h a
n
m
an c e
re m e
so n t
ur
o
ce f
s
T H E
Fiat entered the second century of its life against the backdrop
of a profound transformation that is reshaping industry and
The Management
1
2
3
4
5
6
7
8
9
10 11 12 13
Revenues by geographical region of origin
Europe excluding Italy (22%)
Italy (61%)
Other regions (17%)
Revenues by geographical region of destination
Europe excluding Italy (41%)
Italy (38%)
Other regions (21%)
Sales trend of the last ten years
48,123
46,257 45,769
Abroad
Italy
40,000
39,092
40,244
34,005
30,000
29,546 29,174
30,526
28,176
20,000
10,000
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
PRODUCTS
The Companies of the Fiat Group are organized into
10 operating Sectors that manufacture automotive
products and provide services to customers in more
than 180 countries throughout the world. Driven
by an unflagging determination to achieve market
leadership and excel in customer satisfaction,
the Group engages in the areas of automobiles,
commercial vehicles, agricultural and construction
equipment, components, production systems, aviation,
rolling stock and railway systems, insurance and
financial services, and publishing.
OF THE GROUP
Automobiles
The Group’s automobile operations are carried out primarily
by Fiat Auto S.p.A. and its subsidiaries, which sell cars under
the Fiat, Lancia and Alfa Romeo brands, and light commercial
vehicles under the Fiat brand.
Through Targa Services, the Sector offers its suppliers, dealers
and customers a complete range of automotive services.
Financial services are provided by Fidis. The Group also controls
Ferrari and Maserati, which manufacture sports and luxury cars.
Commercial Vehicles
Agricultural and Construction Equipment
Other Industrial Sectors
The Sector designs, produces and sells a complete
range of commercial vehicles under the brands
Iveco, Seddon Atkinson, Iveco Pegaso and Iveco
Ford, as well as buses (through a joint venture
with Renault V.I.) under the Iveco brand, fire-fighting
equipment under the Camiva, Iveco and Magirus
brands, and diesel engines under the Aifo brand.
Through Transolver, the Sector furnishes a
full spectrum of financial services, including
long-term leases. The Sector
lead company is Iveco N.V.
The Sector is headed by CNH Global N.V., a
new company created in 1999 through the
merger of New Holland and Case. It operates
in the field of tractors and agricultural equipment
with the New Holland, Case, Case IH, DMI,
AFS, Flexi-Coil and Steyr brands. Its construction
equipment products are sold under the New
Holland, New Holland Construction, Case,
Fermec, Link-Belt, O&K, FiatAllis and Fiat-Hitachi
brands. CNH Capital offers a broad range of
financial services to customers worldwide.
These Sectors, which include Metallurgical
Products, Components, Production Systems,
Aviation and Rolling Stock and Railway Systems,
offer the following products and services:
• Cast-iron and aluminum engine blocks and
cylinder heads, other cast-iron components,
transmission components, cast-iron and
aluminum gearboxes and suspension systems,
and magnesium bodywork components.
• Motor vehicle components and systems
in the areas of powertrain, suspensions,
interior/bodywork, and electronics, as well
as aftermarket, quick repair and infomobility
services.
• Industrial automation systems for the
automotive industry, including product
and process engineering, logistics and
management, program management,
manufacturing, installation and production
start-up, and maintenance.
• Components and systems for airplanes
and helicopters, ship propulsion turbines,
propulsion systems for launchers and satellites,
and aircraft engine overhaul services.
• Railway and urban transit transportation
systems, rolling stock of different types,
railway bogies, trams and subway systems.
Services
These Sectors, which include Publishing and
Communications and Insurance, are active in
the following principal areas:
• Publication of the daily La Stampa and sales
of advertising space for multimedia customers.
• Full range of casualty and life insurance
products, bankassurance products through
a joint venture with Banca di Roma, sales
of Toro Targa Assicurazioni insurance products
by a joint venture with Fiat Auto that operates
through the Fiat dealer network.
4
AND SERVICES
Lengthening the Value Chain
The Group devotes significant attention to lengthening its value chain by developing
services and solutions that are linked to the products it sells: financial and insurance
services and mobility services for Fiat Auto, Iveco and CNH Global; aftermarket services
and supply of quick repair and infomobility services for Magneti Marelli; maintenance
services for Comau; engine overhaul services for FiatAvio; and mileage-based maintenance
and support services for Fiat Ferroviaria.
Support Services for the Group’s Industrial Activities
The services that support the Group’s industrial activities, which in the past were structured
at the Sector and country level, have been re-engineered with the establishment of
dedicated organizational units that can supply better quality services at lower costs,
primarily in the areas of information and communication technologies, real estate,
administration, finance, and personnel management and training.
Automobiles
FIAT AUTO
Highlights of the year
Fiat built its first car in 1899.
The Lingotto, the Company’s
first mass-production car
factory, was inaugurated in
Turin in 1923. It now houses
the Group’s headquarters.
Other plants were later opened
in Turin (Mirafiori in 1939 and
Rivalta in 1967), followed by
additional facilities in Italy and
in the world. The acquisitions
of Lancia S.p.A. in 1969 and
Alfa Romeo in 1986 represent
landmark events in the
Company’s history. Fiat’s
domestic markets extend
beyond Italy, to include the
Mercosur countries, where it
built factories in 1960 (Argentina)
and 1976 (Brazil), and Poland,
where in 1993 it purchased FSM’s
automotive activities. In 1979,
at the end of a decentralization
process launched in 1973, Fiat
S.p.A. divested its automotive
operations and transferred them
to Fiat Auto S.p.A.
Marketing of the Lancia Lybra and new Fiat Punto, which were
introduced at the events celebrating Fiat’s Centennial, got underway
in the second half of 1999. These models were well received
by motorists, as demonstrated by brisk sales in the closing months
of 1999 and the beginning of 2000.
New companies established in 1999 include a 50-50 joint venture
between Fiat Auto and Yuejin Motor Corporation, which will
manufacture cars in China, and Fiat Auto Egypt Industrial Company
SAE, which will manufacture and distribute World Car models
for the local market. This family of vehicles (Palio, Siena and Palio
Roberto Testore,
Fiat Auto’s Chief
Executive Officer.
Weekend), which are built at different factories throughout the
world, is intended to drive Fiat Auto’s expansion in the emerging
countries, where the growth potential is greatest.
The Sector is studying with great interest potential opportunities in Russia. It
recently confirmed that it looks forward to the start of operations at Zao
Nizhegorod, its joint venture with OAO Gaz and EBRD, but is adjusting the
investment and production schedules to accommodate changing conditions
Principal companies, production facilities and sales networks
in the local automobile market.
Italy
On March 13, 2000, Fiat and General Motors, the world’s largest automotive
company, announced a strategic industrial alliance. General Motors will acquire
20% stake of Fiat Auto in exchange for the acquisition of about 5.1% of GM’s
Total
Production facilities
16
3
4
R&D centers
12
–
1
13
692
2,020
859
3,571
Dealers
capital stock. Fiat S.p.A. will thus become General Motor’s largest industrial
Rest of Europe Rest of the world
23
stockholder.
Europe
15%
Revenues by geographical region
of destination
Italy
43%
42%
Multipla Bipower
Italy
● Fiat Auto
Turin
Termoli (CB)
Arese (MI)
Rivalta (TO)
Termini Imerese (PA)
Verrone (VC)
Cassino (FR)
Pomigliano d’Arco (NA)
Rest of Europe
● FMA
Pratola Serra (AV)
Rest of the world
● Sata
Melfi (PZ)
20%
Employees by geographical region
13%
◆ Sevel
Atessa (CH)
France
◆ Sevelnord
Lieu-Saint-Amand
Poland
● Fiat Auto Poland
Tychy
Bielsko-Biala
Russia
■ Zao Nizhegorod Motors
Nizhnjy Novgorod
Other regions
China
◆ Jiangsu Nanya
Auto
Nanjing
Turkey
◆ Tofas
Bursa
Vietnam
■ Mekong Corporation
Egypt
■ El Nasr Automotive
Manufacturing
Mercosur
Argentina
● Fiat Auto Argentina
Cordoba
Brazil
● Fiat Automoveis
FIASA
Betim (Minas Gerais)
Morocco
◆ Somaca
Casablanca
India
● Ind Auto
Lal Bahadur Shast
(Maharastra)
● subsidiary
◆ affiliated company
■ licensee
Pakistan
■ Raja Autocars
67%
6
Operating Sectors – Automobiles
7
Products
Innovation applied to the development, styling and
the Fiat Punto in 1995, the Fiat Bravo-Brava in 1996,
manufacturing of new products is a primary factor
and the Alfa Romeo 156 in 1998.
in achieving customer satisfaction and gaining a
In 1999, the new Fiat Punto and Lancia Lybra also
competitive advantage. As a result, it represents a
received numerous important awards, confirming the
core value of this Sector’s growth strategy. Over the
growing success they are achieving in the markets
last five years, this approach has enabled Fiat Auto
where they have been introduced.
to earn Car of the Year honors for three of its models:
Automobiles
Full-size
Intermediate
Intermediate/Compact
166
Lancia k
Lancia k SW
156
156 Sportwagon*
Lybra
Lybra SW
Bravo - Brava
Palio Weekend
Siena
146
145
Lancia Y
Subcompact
Marea
Marea Weekend
Punto
Palio
Panda
Seicento
City subcompact
Service Activities
Niche Products
Luxury and Sports cars
GTV
Spider
Lancia k coupé
Lancia Z
Minivans
Coupé
Barchetta
Punto Cabrio
Ulysse
Multipla
Light Commercial Vehicles
Ducato
Scudo
Fiorino
Strada
Fidis is the lead company of all the financial service
of the financing contract, has grown particularly well
units which, within the scope of Fiat Auto’s operations,
in recent years. In the area of network financing,
offer products designed to support automobile sales to
Fidis continued to develop its traditional inventory
consumers, and help Fiat Auto dealers and the suppliers
financing products and now finances about 90% of
of the Fiat Group in general. Fidis is present directly
the vehicle inventories purchased by dealers.
or through cooperation agreements in four continents.
The portfolio of loans handled in 1999 averaged 17
Fidis has achieved significant growth in financing
billion euros, including 10.8 billion euros in financing
provided to Group suppliers, expanding both traditional
provided to end customers, 3.9 billion euros granted
services like factoring and more innovative support
to the sales network and 2.4 billion euros loaned to
activities. This was accomplished through focused
suppliers.
programs that targeted domestic and international
expansion, including, in particular, financing provided
Formula, an innovative financial product that offers
to several Fiat Auto suppliers for the construction of
end customers a wide range of options upon expiration
new production facilities in Argentina, Brazil and India.
(*) Distribution started in 2000.
8
9
Performance in 1999
Production of Fiat Auto and its subsidiaries
Automobiles and Light Commercial Vehicles
In 1999, the automobile market continued to expand in
in thousands of units
1999
1998
1997
1,165.2
1,154.7
1,331.2
Lancia Autobianchi
160.1
175.4
181.7
Alfa Romeo
208.3
197.7
160.6
1,533.6
1,527.8
1,673.5
Brazil
391.6
393.0
581.7
Poland
343.8
336.7
327.9
42.8
93.4
95.7
2,311.8
2,350.9
2,678.8
41.2
38.1
–
2,353.0
2,389.0
2,678.8
Europe, where it grew by 5% marking the sixth consecutive
Fiat
up year, and in North America. However, demand was down
about 18% for the year in Brazil and Argentina. Competitive
price pressure increased steadily in Europe, especially in
Italy, with a negative impact on the level of profitability.
Fiat Auto sold a total of 2,328,000 vehicles, compared with
2,397,000 in 1998. Lower sales in South America account
Total Western Europe
Argentina
Total
for most of this 2.9% decline.
Other regions
Consolidated revenues of Fiat Auto amounted to 24,101
Grand total
million euros, showing a slight decline compared with 1998.
Sales Performance - Automobiles and Light Commercial Vehicles
The Sector reported an operating loss of 121 million euros,
compared with a loss of 108 million euros in 1998. However,
operating margins, which had been deteriorating during the
first half of the year, improved sharply in the closing months
of 1999, owing to the good performance of new models.
1999
1998
1997
France
151
152
120
Germany
185
195
168
96
109
101
955
951
1,136
73
67
53
216
210
172
Great Britain
Italy
Spain
Rest of Europe
Western Europe
Highlights
1,676
1,684
1,750
Poland
177
160
178
Brazil
304
365
509
Rest of the world
Total sales
Fiat Auto continues to be firmly committed to
expanding its range of services. Motorists who visit
one of the Company’s sales outlets must be able
to find solutions to the numerous and increasingly
complex needs that will arise while they own their
cars. The wisdom of this strategy is demonstrated
by the success of Targa Services in its first year of
activity.
New services like Targa Rent, which offers short-term
rentals of Fiat Auto vehicles through the dealer
1999
1998
1997
24,101
24,859
26,202
Operating income (loss)
(121)
(108)
758
As a % of revenues
(0.5)
(0,4)
2,9
Income (loss) before
minority interest
(493)
(258)
402
855
1,146
2,068
1,464
1,373
1,341
Net revenues
Cash flow
Number of employees
711
608
535
5,021
5,863
5,992
82,553
93,514
118,109
Affiliated companies
Grand total
171
188
203
2,328
2,397
2,640
59
89
99
2,387
2,486
2,739
network, have been added to roadside assistance,
insurance programs, authorized body shops and
maintenance centers.
The Sportronic electronic automatic gearbox
combines the benefits of an automatic
transmission with the advantages of a stick
shift. It can be set in either fully automatic
(position A) or sequential (position S) mode.
10
11
Other Companies
The Ferrari Team was founded in
Modena in 1929 to help members
compete in car races, initially with
Alfa Romeo automobiles. The first
Ferrari-built sports car raced in the
1940 Mille Miglia, and in 1943 the
production facilities were moved to
Maranello. The company officially
adopted the Ferrari name and a
new model, the 125 Sport, made
its debut in 1947. Since then, Ferrari
automobiles, with some of the
world’s greatest drivers at the
wheel, have become legendary,
winning more than 5,000 races
at racetracks everywhere on the
planet. Ferrari’s achievements
include 9 Formula 1 World Drivers’
Championships, 14 Manufacturers’
World Championships, 3 Formula 1
Constructors’ Championships and,
as of the end of 1999, 125 victories
in Formula 1 Grand Prix races.
In 1969, Enzo Ferrari sold 50% of
his company to Fiat, which increased
its interest to 90% in 1988.
In 1997, Ferrari purchased 50%
of Maserati, another historical
and prestigious Italian brand,
and gained full control of the
company in 1999.
FERRARI
MASERATI
Italy
and collectors. Racing is the very reason of its
existence, enabling the Company to offer motorists
the leader of its market segment.
Maserati automobiles are beguiling machines, made
1999 was a favorable year from every standpoint. Ferrari launched
in small series for car connoisseurs. Its prestigious
its most important product, the 360 Modena, and sales rose to
models are noticeable for their distinctive and
5,588 units, up from 4,267 in 1998. The total includes 3,735
elegant styling and performance, which are
Ferrari cars and 1,853 Maserati automobiles. During the year,
outstanding when compared with other models
Ferrari purchased the 50% of Maserati it did not own. This
in their class.
positive development will enable Ferrari to realize considerable
synergies and revitalize the Maserati brand through a program
of industrial and commercial restructuring.
Luca Cordero di Montezemolo,
Ferrari’s Chairman and CEO.
The Ferrari Racing Team was particularly successful in 1999,
winning back the Formula 1 Constructors’ Championship after
16 years.
At the consolidated level, Ferrari/Maserati reported revenues of 758 million euros
and operating income of 24 million euros.
Significant events that occurred in the early months of 2000 include the introduction
of the 360 Spider at the Geneva Auto Show, rising sales to end customers, with
motorists buying twice as many Maseratis as in the first two months of 1999,
and the outstanding performance of the racing team in the first Grand Prix races
of the current Formula 1 Championship.
Product range
Highlights
17%
27%
46%
United States
Rest of the world
16%
12
in limited series, for racing drivers, car enthusiasts
Highlights of the Year
Rest of Europe
Maserati: Automobile sales
by geographical region
Ferrari makes exclusive cars, individually crafted
the ultimate in automotive performance. Ferrari is
10%
Ferrari: Automobile sales by
geographical region of destination
Products
17%
67%
1999
1998
(*) 1997
Net revenues
758
617
539
Operating income
24
11
36
As a % of revenues
3.1
1.9
6.6
Cash flow
61
47
58
63
61
50
55
47
32
Number of employees
(*) Figures do not include Maserati.
185
170
162
2,282
2,264
1,922
Ferrari
Maserati
360 Modena
Berlinetta powered by an eight-cylinder 3586
cm3 engine with output of 400 bhp (manual
or F1-type gearbox)
456M GT/GTA
2+2 coupé powered by a 12-cylinder 5474
cm3 engine with output of 442 bhp (manual
or automatic)
550 Maranello
Berlinetta powered by a 12-cylinder 5474
cm3 engine with output of 485 bhp (top
speed 320 km/h)
Quattroporte
Evoluzione
3200 GT/GTA
Saloon powered by a V8 3217 cm3 engine
with output of 335 bhp (manual or automatic)
Coupé powered by a V8 3217 cm3 engine
with output of 370 bhp (manual or automatic)
The 5474-cm3 65° V12 engine that powers
the 550 Maranello.
Operating Sectors – Ferrari and Maserati
13
Commercial Vehicles
IVECO
Iveco (Industrial Vehicle
Corporation), a wholly-owned
subsidiary of Fiat S.p.A., was
created in 1974 as a result of
an agreement between Fiat
and Klockner-HumboldtDeutz, a German company.
The new entity absorbed the
commercial vehicle activities
of five different companies:
Fiat, Lancia, OM, Magirus
Deutz and Unic.
OM, the oldest of these
companies, was founded in
1849. Since its inception,
Iveco adopted an innovative
industrial organization,
leveraging the available
synergies and economies
of scale. In 1991, it took over
Enasa-Pegaso, Spain’s largest
manufacturer of commercial
vehicles. During the 90’s,
Iveco expanded its international
presence, establishing joint
ventures and new companies
on every continent. In 1998,
together with Renault it
established Irisbus, a joint
venture with global reach
to which both companies
contributed their bus
operations.
During 1999, Iveco continued to implement a
strategy designed to foster its international
expansion and lengthen the value chain by offering
customers a comprehensive range of services.
In December 1999, it acquired a controlling interest
in the Fraikin Group, the unchallenged leader in
the French market for long-term leasing of
commercial vehicles and an established provider
of rental and fleet management services.
Giancarlo Boschetti,
Iveco’s Chief
Executive Officer.
Italy
R&D centers
11
12
2
25
Dealers
89
378
189
656
Trucks
Europe
Irisbus, a recently established 50-50 joint venture
27%
with Renault, continued to grow, taking over Ikarus,
a Hungarian bus manufacturer.
Italy
59%
Capital investment programs carried out during
Rest of Europe
1999 were focused primarily on the startup of
facilities that will manufacture Iveco engines and
Rest of the world
Astra V.I.
Iveco Aifo
Iveco Mezzi Speciali
Iveco
Irisbus Italia
Austria
Lohr-Magirus
Czech Republic Karosa
France
Camiva
Iveco France
Irisbus France
Heuliez Bus
Germany
Brandshutz Gorlitz
Iveco Magirus Brandsch.
Iveco Magirus
Great Britain
Seddon Atkinson Vehicles
Yugoslavia
Zastava-Kamioni
Spain
Iveco Pegaso
Irisbus Iberica
Ukraine
Iveco-Kraz
Iveco Motor-Sich
●
Argentina
Brazil
Venezuela
Iveco Argentina
Iveco Fiat Brasil
Iveco Venezuela
●
Int. Trucks Australia
Naveco
Amce - Autom. Manuf.
Ashok Leyland
Otoyol Sanayi
●
Italy
the development of a new factory for the production
9%
of Daily and Ducato commercial vehicles, which
the Sector is building through a joint venture with
44%
Fiat Auto, at Sete Lagoas, in the Brazilian state of
Minas Gerais.
47%
14
20
Total
10
14%
of destination
Mercosur
Other regions Australia
China
Ethiopia
India
Turkey
7
Commercial
vehicles
37
Buses
Defense
vehicles
Firefighting
vehicles
Engines
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
Operating Sectors – Commercial Vehicles
15
Trucks
Name
Curb weight in tons
Engine output in kW
Eurotech
18-26
175-309
Eurostar
18-26
276-380
Seddon Atkinson
18-30
118-328
Eurotrakker
18-40
184-345
Astra
18-40
254-380
Eurocargo
06-26
085-196
Eurocargo 4x4
10-14
105-167
Name
Curb weight in tons
Engine output in kW
Daily Classe L
3.2
63-78
Daily Classe S
3.5
63-92
Daily Classe C
3.5-5.2
63-92
Family
Number of cylinders
Engine output in kW
8100
4 in line
60-92
municipal utilities.
8000
4-6 in line
85-100 105-167
The Sector also expanded its intermediate range, with the
8360
6 in line
161-196
introduction of the Eurocargo 120 EL models, which, with
8460
6 in line
192-276
their low beds and easy cab access, are particularly suited
8210
6 in line
225-345
for urban freight distribution.
8280
8V
260-378
The Sector also introduced the Cursor engine. This new
Cursor 8
6 in line
180-259
10-liter powerplant, with an output of 430 bhp, follows the
Cursor 10
6 in line
287-316
Heavy-load road vehicles
Heavy-load quarry/construction vehicles
Intermediate vehicles
Commercial Vehicles
Products
The new Daily was successfully introduced
throughout Europe in June 1999 and was later
City and long-distance buses
Defense vehicles
Firefighting equipment
honored as Van of the Year 2000.
During the year, Iveco’s range of heavy-load
vehicles grew to include the Euromover, a
low-cab model specifically designed for
Engines
extremely successful Cursor 8, which was launched in 1998.
16
17
Performance in 1999
Sales Performance - Units sold
In 1999, the European market for commercial vehicles continued
1999
1998
in %
France
20.1
16.3
23.3
Germany
16.9
16.6
1.8
Western Europe, demand for commercial vehicles with a curb
Great Britain
13.7
15.6
(12.2)
weight equal to or greater than 3.5 tons totaled about 630,000
Italy
41.5
37.2
11.6
units, up 10.8% over the previous year. With the exception of
Spain
15.0
12.9
16.3
119.8
111.2
7.7
17.6
to grow at the rapid pace it had experienced the previous year,
consolidating the expansionary trend that started in 1994. In
Great Britain (-2.8%), all European markets turned in a positive
Western Europe
performance. Particularly good results were achieved in Italy
Rest of the world
(+24.8%) and Spain (+22.2%). Demand was also up significantly
in Germany (+13.6%) and in France (+12.4%).
Overall, Iveco sold 149,900 vehicles in 1999, or 9.6% more than
Total sales
Joint ventures
(*)
Grand total
30.1
25.6
149.9
136.8
9.6
42.1
56.5
(25.5)
192.0
193.3
(0.7)
(*)1998 data do not include Naveco sales (20,600 units).
in 1998. Counting the contribution of joint ventures and licensees,
unit shipments totaled 192,000 vehicles, about the same as in
1998.
The Sector’s financing activities continued to grow both internally,
with the introduction of new products and the establishment
of new companies (Transolver Service GmbH in Germany and
During 1999, the Sector’s profitability was adversely affected
by the phaseout of the old Daily line and the costs incurred
to launch the new range of these vehicles.
Transolver Service S.A. in Spain), and through acquisitions (Fraikin).
The Sector’s net revenues amounted to 7,387 million euros,
Service Activities
or 11.1% more than in the previous fiscal year.
At 311 million euros (+50 million euros over 1998) operating
In many businesses the notion that in certain cases
income was equivalent to 4.2% of revenues, up from 3.9% in
it is more efficient to pay for a service rather than to
1998, owing to the beneficial effects of higher volumes and lower
purchase an asset has become an established belief.
product costs and overhead.
Highlights
1998
1997
7,387
6,649
5,850
Operating income
311
261
203
creating Transolver, a company focused on supporting
As a % of revenues
4.2
3.9
3.5
the Sector’s marketing activities with a complete
minority interest
180
192
174
Cash flow
433
368
374
359
307
265
Iveco has responded to the needs of the market by
package of products that can be sold by its
distribution system. Transolver includes Transolver
Finance, which offers its customers financing and
leasing options, and Transolver Services, which
provides vehicle rental services.
Net revenues
1999
Number of employees
215
200
187
2,359
1,764
1,440
36,217
31,912
32,074
The acquisition of Fraikin is an example of this strategy
focused on expanding the company’s distribution
activities and services.
The heavy-load vehicle range features Cursor
The EuroTech and EuroStar heavy-load
vehicles with Cursor engines are
becoming the trucks of choice for
long-range and domestic freight hauling.
During 1999, the Transolver companies that provide
financing and rental services executed contracts
covering more than 22,500 new and used vehicles,
10 engines and a number of other innovations.
These new engines have been designed
specifically for long-distance tractor trailers, a
key segment in Europe of the heavy-load market.
or 6% more than in 1998. In Western Europe,
Transolver’s penetration of the financing market rose
to 27% of new vehicles sold.
18
19
Agricultural and Construction Equipment
CNH GLOBAL
CNH Global is the new
name of New Holland N.V.,
following its acquisition of
Case Corporation in 1999.
New Holland was created
in 1991 through the merger
of Ford New Holland and
Fiat Geotech. Ford built
its first tractor prototype
in 1907 and started mass
production in 1917.
Fiat’s first tractor came
to market in 1919.
New Holland has become
a dominant force in the
world market for agricultural
equipment and has grown
significantly in the area of
construction equipment.
Case was founded in 1842 in
Wisconsin by Jerome Increase
Case. Following developments
and acquisitions (of strategical
importance the acquisition of
International Harvesting in 1985),
Case offers a broad range of farm
equipment and is the largest U.S.
manufacturer of small and
medium-sized construction
machines. Since 1957 Case has
provided superior financial
products to serve its customers.
On November 12, 1999, New Holland
and Case Corporation completed the
merger of their respective operations.
This transaction created CNH Global
(CNH), the largest manufacturer of
agricultural equipment in the world,
one of the top international manufacturers of construction equipment and
one of the world’s largest equipment
finance companies, with the widest
Jean Pierre Rosso, CNH Global’s Chairman and CEO,
geographical reach of any company
and Umberto Quadrino, CNH Global’s Co-Chairman.
in its industry. CNH distributes its
strong, globally recognized brands in over 160 markets through an extensive
network of approximately 10,000 dealers and distributors. Fiat is CNH’s largest
stockholder, with a 71% interest.
This new company, whose securities are traded on the New York Stock Exchange,
reported proforma consolidated revenues of about 10 billion euros in 1999.
CNH’s products will continue to be distributed under the New Holland and Case
brands by the respective sales networks.
In September 1999, Harbin New Holland Beidahuang Tractor Ltd, a joint venture
in the People’s Republic of China in which CNH holds a 70% interest, started to
manufacture and sell a line of farm tractors with output ranging between 100 and
180 bhp. In January 2000, CNH completed the acquisition of Canadian-based
Flexi-Coil Ltd, a leading producer of seeding systems and tilling equipment.
Italy
6%
of destination
37%
(pro-forma, incl. Case)
Italy
57%
Rest of Europe
NAFTA
Rest of the world
14%
(pro-forma, incl. Case)
6
18
24
R&D centers
2
6
8
16
174
3,890
5,936
10,000
40%
48
Agricultural equipment
Construction equipment
New Holland
Case
New Holland
Case
New Holland
Germany
Case
New Holland
Poland
New Holland
United Kingdom Case
New Holland
●
●
●
●
●
●
●
United States
Case
New Holland
New Holland
Case
●
●
●
●
●
●
●
●
Italy
Austria
Belgium
France
Canada
Mexico
Total
Dealers
Europe
●
●
●
●
●
Mercosur
Brazil
Case
New Holland
●
Other regions
Australia
Case
●
●
46%
20
Operating Sectors – Agricultural and Construction Equipment
21
Products
Business Unit
Product Lines
Agricultural
equipment
Tractors
CNH is managed as a global company, keeping
in response to customer requirements for optimum
separate Case and New Holland brand names and
reliability and durability on the job site. Case also
dealer networks. CNH is organizing its manufacturing
introduced a new high-lift telescopic handler and a
operations with global product line responsibilities,
new 7-ton excavator built for contractors who want
and CNH will organize its sales and marketing
the versatility and productivity of a larger excavator,
activities on a geographic basis, keeping separate
but the maneuverability of a smaller unit.
the dealer and customer-related activities of New
In November, New Holland launched its new TM line
Holland and Case.
of tractors, available with engines with output ranging
During the year, the CNH’s Equipment Operations
from 92 and 135 bhp. In Europe, CNH introduced
continued to renovate its product line and expand
new square balers, which are the first machines of
its sales network. During the first quarter, Case
this kind to be equipped whit a self-steering from
introduced the C Series wheel loader line, designed
axle for outstanding driving comfort.
Complete horsepower range
Two-wheel drive, four-wheel drive and Quadtrac
Specialty tractors
Harvesting equipment
Combines
Cotton pickers
Grape and sugar cane harvesters
Hay and forage
equipment
Crop production
Self propelled and pull type harvesters
Balers
Complete line of sprayers
Planters and seeding systems
Precision farming systems
Tillage equipment
Construction
equipment
Light-to mediumconstruction equipment
Skid-steer loaders
Loaders/backhoes
Mini/midi excavators
Telescopic handlers
Forklifts
Financial Services
Trenchers
Heavy construction
equipment
Horizontal drills
CNH Capital, a Sector company, provides broad-
construction equipment. CNH Capital also facilitates
Crawler and wheel excavators
based financial services for the global marketplace
and finances the sale of insurance products and other
Wheel and crawler loaders
through various wholly owned subsidiaries and joint
financing programs to retail customers. In addition,
ventures in the United States, Canada, Argentina,
CNH Capital provides wholesale financing to CNH
Australia, Brazil and Europe.
dealers and rental equipment yards.
CNH Capital provides and administers retail financing
CNH Capital also provides financing options to dealers
to end-use customers for the purchase or lease of
and non-captive third parties to finance inventory,
new and used CNH and other agricultural and
working capital, real estate acquisitions, construction
Graders
Dozers
22
23
Performance in 1999
In 1999, the tractor market grew slightly in Western Europe. In North America,
although overall tractor sales evidenced a small increase, this was entirely
attributable to the growth in sales of low horsepower tractors. The North American
market for more powerful tractors, such as those produced by CNH, continued
to reflect ongoing market weakness. In Latin America, the market held steady,
slightly above 1998 levels.
Sales of heavy construction equipment experienced an overall decline, as buoyant
and remodeling, business acquisitions, dealer
systems and service and maintenance equipment.
In North America, CNH Capital offers customers a
private-label credit card to purchase parts, service,
rentals implements and attachments from its dealers.
CNH Capital’s Soris Financial offers a broad range
of retail and wholesale financing products, including
equipment and commercial loans and leases for North
American manufactures, dealers, distributors, and
their customers. Soris Financial also facilitates and
finances the sale of insurance products to retail
customers.
At December 31, 1999, CNH Capital’s serviced
portfolio of receivables was approximately 11 billion
euros. On a pro forma basis, after giving effect to the
merger, CNH Capital’s revenues were approximately
737 million euros in 1999.
CNH is a leader in the mechanized
demand in Western Europe and Latin America could
only partially offset a sharp decline in North America.
Excluding Case, which was not yet consolidated, CNH
sold 78,900 farm tractors in 1999, down slightly from
1999 (*)
1998
1997
the 80,800 units shipped in 1998. CNH’s revenues
Net revenues
5,246
5,127
5,284
amounted to 5,246 million euros, or 2.3% more than in
Operating income
371
452
602
the previous fiscal year. This increase, which occurred
As a % of revenues
7.1
8.8
11.4
appreciation of the U.S. dollar, which is the Sector’s
Income before
minority interest
216
507
422
reporting currency. When Case’s 1999 sales are included
Cash flow
333
624
528
on a pro forma basis, CNH’s revenues rise to about 10
178
151
135
billion euros.
113
despite a reduction in unit sales, was due mainly to the
farming market and one of the top international
producers of construction equipment.
Highlights
Excluding Case, operating income came to 371 million
Number of employees
euros. The decrease from the 452 million euros earned
(*) Excluding Case.
158
136
5,777
1,123
592
19,049
21,344
19,077
in 1998 is due mainly to a drop in units shipped and an
unfavorable sales mix.
24
25
Metallurgical Products
TEKSID
In 1999, with a transaction involving a capital increase reserved
Founded in 1978, Teksid
inherited the steel making
and metallurgical expertise
developed by Fiat during
sixty years of activity. After
divesting its primary steel
making activities in 1982,
the Company focused its
operations on the production
of metallurgical components.
Toward the end of the 1970’s,
Teksid embarked on an
internationalization strategy,
establishing manufacturing
facilities in Brazil and North
America. Over the last twenty
years, the Sector’s geographical
expansion has been patterned to
achieve the greatest proximity to
its customer’s facilities worldwide.
The largest expansion of
production capacity occurred in
Europe (Italy, France, Portugal and
Poland), North and South America
(Canada, United States, Mexico,
Brazil and Argentina)
and the Far East (China).
for the Renault Group, Teksid completed the purchase of Renault’s
foundry activities. Following this transaction, Fiat S.p.A. will continue
to hold a controlling interest of 66.5% in Teksid, while the French
Group will own the remaining 33.5%.
In the United States, the Sector established Teksid Aluminum
Components (100% Teksid). In Canada, it laid the groundwork for
an expansion of manufacturing capacity at Meridian Technologies
Inc., a world leader in magnesium technology owned for 51% by
Paolo Filomeni,
Teksid’s Chief
Executive Officer.
Italy
was the gradual integration of the former Renault facilities, with the
goal of increasing the product specialization of the individual
manufacturing locations. This resulted in the creation of two centers of excellence
Principal companies and businesses
in Italy: Crescentino for cast iron and Carmagnola for aluminum. The output of
Italy
the Carmagnola cast-iron production unit, which will be phased out in July 2001,
will be picked up by other Sector locations in Italy and abroad. These transactions
enabled Teksid to consolidate its position as a world producer of cast-iron, aluminum
Total
7
8
11
26
R&D centers
4
3
5
12
and magnesium components and strengthen its leadership of the European market.
Cast iron
In 1999, the Sector had revenues of 1,682 million euros, up more than 44% over
Europe
Italy
the previous fiscal year. Operating income rose to 76 million euros (4.5% of
revenues), compared with 42 million euros (3.6% of revenues) in 1998.
28%
of destination
Teksid and for 49% by Norsk Hydro. Another important development
Highlights
38%
34%
France
1999
1998
1997
1,682
1,165
1,190
Operating income
76
42
54
As a % of revenues
4.5
3.6
4.5
Net revenues
Rest of Europe
Income before
minority interest
26
4
20
Rest of the world
Cash flow
123
74
98
182
73
78
31%
37%
Number of employees
23
16
15
793
504
521
14,522
10,981
11,730
NAFTA
Mercosur
Asia
M.P.I.
Teksid For
Teksid
Fonderies Aluminium Cleon
Fonderies du Poitou
Metallurg. du Temple
Societé Bretonne de Fonderie et Mécanique
Aluminum
Magnesium
●
●
●
●
●
●
●
●
●
Poland
Teksid Poland
●
Portugal
Funfrap-Fundicao Portug.
●
Canada
Meridian Operations
Mexico
Teksid Aluminio de Mexico
Teksid Hierro de Mexico (*)
●
●
●
●
●
United States Magnesium Products
Teksid Aluminum Foundry
●
Argentina
Teksid Argentina
●
Brazil
Teksid do Brasil
●
China
Hua Dong Teksid Automotive Foundry Co. (*)
Nanjing Teksid Iron (*)
Nanjing Teksid Aluminum (*)
●
●
India
Teksid Kalyani
●
Turkey
Cevher Dokum Sanayi (*)
●
●
32%
●
(*) Affiliated companies.
26
Operating Sectors – Metallurgical Products
27
Policast currently represents an interesting process
alternative for the production of automotive components
with a particularly complex geometry.
In particular, engine designers are increasingly interested
in exploiting the “near net shape” potential of the process
applied to aluminum alloys for the making of cylinder
heads, valve covers, and engine blocks.
The recent development of materials used in the process
(polymers, paints, sands) together with increased
experience in the design of molding equipment
(polystyrene molds, gluing and painting stations) have
Products
Business Unit
Core products
Cast iron
Engine blocks
Cylinder heads
Drive shafts
Cam shafts
Exhaust manifolds
Differentials
Struts
Wishbones
Aluminum
Cylinder heads
Engine blocks
Gearboxes/clutches
Suspension components
Magnesium
Instrument panels
Seats
Competitive Positioning
The Sector is a world-leader producer
of engine blocks (cast iron), cylinder
heads (aluminum) and instrument panels
The use of magnesium alloys in the production
of automotive components has grown
substantially in the past three years. The world
market has consolidated first generation
products (bulkhead beams, gearboxes, steering
wheel shafts, seat backs) and, at the same
time, has developed new components
(instrument panels, frames for moving body
parts) fully capable of benefiting from the
potential of pressure casting technology
(integration of functions, reduced wall thickness).
The substantial weight reduction obtainable
by replacing steel (-40%) and aluminum
(-10%) for the same performance allows
magnesium to maintain its uncontested
position as the metal for the future of ecological
cars (low emissions, recyclable).
(magnesium).
Principal customers
Fiat Group
Fiat Auto, Iveco, CNH Global.
Other carmakers
Renault, Daimler Chrysler, General Motors,
Ford, Cummins, Volkswagen, Volvo, Toyota,
BMW.
Revenues by business unit
14%
Magnesium
Revenues by customer
28%
Aluminum
43%
Other carmakers
Cast iron
72%
43%
28
Fiat Group
made it possible to achieve high levels of quality in the
resulting products.
Teksid is a world leader in the production of aluminumalloy Policast castings. In addition to the Carmagnola
facility, another plant specializing in this technology and
capable of meeting the fast growing demand of the North
American market is being built in Alabama, United States.
Operating Sectors – Metallurgical Products
29
Components
MAGNETI MARELLI
Magneti Marelli was founded in
1919 by Fiat and Ercole Marelli.
In 1938, Enrico Fermi, a Nobel
Prize winner for physics, was
placed at the head of the
Company’s research
laboratories. In 1939, the
Company carried out its first
television transmission and
reception experiments and,
after the Second World War,
produced Italy’s first television
sets. However, it left this
business in the 1970’s. In 1967,
Fiat took over this company,
transforming it into a global
center for the production of
automotive components. In
1994, Magneti Marelli was merged
with Gilardini. In 1997 it acquired
the Cofap Group, South America’s
largest components producer. In
1998, the Company entered the
quick-service business, acquiring
Midas’ European service centers,
and started to offer online services
through Viasat, a 50-50 joint venture
established with Telespazio, a
Telecom Italia company, to provide
infomobility products based on
satellite technologies.
The most important events of 1999 were the conclusion of an
agreement with Textron Automotive in the United States for the
production of dashboard modules, the acquisition of Fiat Auto’s
Suspension Systems operations in Italy, Poland and Brazil, and
the establishment of Automotive Lighting Holding, a 50-50 joint
venture with Bosch of Germany to which both companies transferred
their worldwide lighting systems activities. Coupled with the
acquisition of Seima, a producer of automotive headlights and
taillights, in 2000, this transaction will propel Magneti Marelli into
the rank of co-leader of the global lighting systems market.
Domenico Bordone,
Magneti Marelli’s
Chief Executive Officer.
The Sector is carrying out an ambitious program designed to
streamline its portfolio of businesses, focusing its efforts on carefully
selected industry segments. With this in mind, it divested its Rotary Devices
and Fuel Systems Divisions and plans to sell its Lubricants Division.
The 1999 fiscal year ended with revenues of 4,062 million euros, up more than
7% over 1998, and with an operating income that at 108 million euros (2.7% of
revenues) was almost double the figure reported a year earlier (56 million euros,
or 1.5% of revenues).
19%
Italy
Rest of Europe
Rest of the world
Total
20
18
19
57
8
8
8
24
R&D centers
Europe
of destination
Italy
33%
Rest of Europe
Rest of the world
26%
46%
1999
1998
1997
4,062
3,793
3,451
Operating income
108
56
99
As a % of revenues
2.7
1.5
2.9
Net revenues
Income before
minority interest
107
21
78
Cash flow
310
254
271
209
222
207
185
195
167
Number of employees
28%
France
Germany
Great Britain
Poland
Highlights
48%
1,289
1,270
991
25,613
29,398
24,352
Italy
Spain
NAFTA
Mercosur
Automotove Lighting (*)
Magneti Marelli
Magneti Marelli Climatizzazione
Sistemi Sospensioni
Magneti Marelli France
Magneti Marelli Poland
Magneti Marelli Iberica
Powertrain
systems
Suspension
systems
Interior and
bodywork
systems
Electronic
systems
Aftermarket
and
services (**)
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
Mexico
Magneti Marelli Mexico
United States Cofap of America
Magneti Marelli USA
●
Argentina
●
Brazil
Other regions China
India
South Africa
Turkey
Magneti
Magneti
Magneti
Magneti
Marelli
Marelli
Marelli
Marelli
Argentina
Denso
Brasile
Cofap
Magneti
Magneti
Magneti
Magneti
Marelli
Marelli
Marelli
Marelli
Guangzhou
India
Pty
Electronic
●
●
●
●
●
●
●
●
●
●
●
●
●
(*) Magneti Marelli and Bosch 50-50 joint venture.
(**) Other companies active in this area include Midas (Italy, France, Poland, Spain and Brasil) and Viasat (Italy).
30
Operating Sectors – Components
31
Magneti Marelli’s high-end instrument panels combine
several essential functions, such as an encrypted
anti-theft device (immobilizer), an automatic oil change
reminder and a diagnostic system with a dot-matrix
display of alarms and faults. It can also display information
provided by a navigation system.
Equipped with a control unit that reads and processes
the input of a sophisticated system of onboard sensors,
Magneti Marelli’s leading-edge climate control system
delivers a massive flow of 430 m3 of air per hour and can
be programmed with different temperature settings for
the driver and front passenger seats.
Products
Business Unit
Product lines
Powertrain systems
Engine control systems
Exhaust systems
Selespeed transmission systems
Front and rear suspensions
Shock absorbers
Climate control systems
Dashboard modules
Lighting systems
Rearview mirrors
Instrument panels
Electronic control units
Online systems
Quick-repair services
Replacement parts
Infomobility services
Lubricants
Suspension systems
Interior and bodywork systems
Electronic systems
Aftermarket and services
31%
9%
Powertrain systems
Electronic systems
17%
19%
24%
32
Competitive position
The Sector is co-leader of the world’s lighting
systems market and is the second largest European
producer of instrument panels. Also in Europe, it
ranks third among manufacturers of gasoline fuel
injection systems, climate control systems and
rearview mirrors.
Principal customers
Fiat Group
Fiat Auto, Maserati, Iveco,
CNH Global.
Other carmakers
Peugeot/Citroën, Renault,
Volkswagen, BMW,
DaimlerChrysler.
Magneti Marelli’s products can
account for as much as 35% of
the modules and systems that
comprise a motor vehicle.
40%
Fiat Group
Other carmakers
Interior and bodywork systems
Suspension systems
60%
Aftermarket and services
Operating Sectors – Components
33
Production Systems
COMAU
Comau is a global supplier of industrial automation systems to
Fiat started regular and
organized production of
machine tools in 1935. The
Sector was reorganized in
1973 with the establishment
of Consorzio Macchine
Utensili (CO.MA.U.), a
consortium of Fiat and other
Turin manufacturers, which
resulted in the creation of
Comau S.p.A. in 1997 and
helped significantly expand
sales volume. Over the years,
by acquiring and absorbing
other companies, Comau
broadened its product range,
becoming one of the few “total”
suppliers of automation systems
for the automotive industry.
In the mid 1990’s, the Sector
launched a globalization effort,
developing organizations that
covered a complete portfolio
of businesses in the major
industrial regions of the world.
automotive manufacturers, to whom it offers a complete range of
services: product and process engineering; logistics and management,
including program management; manufacturing, installation and
start-up of production lines and equipment; and maintenance services
that ensure the proper and reliable operation of industrial facilities.
In 1999, Comau completed important acquisitions with the goal of
strengthening its presence in its core business segments (bodywork,
mechanical engineering and maintenance services). Fiat’s acquisition
of Pico, a leading U.S. producer of bodywork systems, and Comau’s
Piero Maritano,
Comau’s Chief
Executive Officer.
purchases of Renault Automation and Sciaky structurally reinforced
the Sector’s presence in its principal markets and its position as a
supplier of the major carmakers.
Comau Service, a Business Unit with outstanding growth potential that offers
innovative maintenance services for automotive production facilities, became
operational in 1999.
Owing in part to the acquisitions mentioned above and including Pico’s contribution,
R&D centers
the Sector reported revenues of 1,693 million euros in 1999, double the figure
Italy
Rest of Europe
Rest of the world
Total
7
11
20
38
10
4
1
15
booked a year earlier. Operating income totaled 43 million euros (2.5% of revenues).
In 1998, Comau without Pico reported an operating loss of 1 million euros.
In 2000, Comau signed an important agreement with Fanuc, in Japan, in the area
of robotic components that will help both companies strengthen their respective
Product and
process
core businesses.
Europe
26%
of destination
Italy
Highlights
47%
27%
Net revenues
1999
1998
1997
1,693
843
841
Operating income (loss)
43
(1)
27
As a % of revenues
2.5
(0.1)
3.3
(6)
12
Rest of Europe
minority interest
(8)
Rest of the world
Cash flow
30
12
29
26
14
16
42%
40%
Number of employees
20
14
17
485
165
179
16,943
7,103
4,809
Comau
Comau Service
Italtech
UTS
France
Renault Automation Comau
Comau Sciaky
Germany
Comau Deutschland
Poland
Comau Poland
United Kingdom Comau Estil
Spain
Mecaner
Mexico
United States
Trebol Tepotzotlan
Progressive Tools & Industries
Mercosur
Brazil
Comau do Brasil
Comau Service do Brasil
Comau Argentina
Argentina
Other regions China
India
South Africa
Comau Cina
Comau India
Aims
Maintenance
services
●
Italy
NAFTA
Production
Systems
engineering
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
18%
34
Operating Sectors – Production Systems
35
Products
Business Unit
Product lines
Engineering
Product and process
All Comau products and services reflect sophisticated engineering
and the use of leading-edge hardware and software applications.
They also embody years of experience with the top carmakers in
the world, an in-depth knowledge of the market, decades of research
and innovation, and the contribution of Comau’s men and women,
who day after day work side-by-side with their customers, developing
individual and total solutions for every aspect of manufacturing.
engineering
Bodywork
Sheet-metal dies
Bodywork assembly and
welding systems (sheet-metal
working, final assembly,
materials handling)
Robotics
Painting Systems
Painting systems
Plastics
Plastic dies
Injection molding presses
Mechanical
Machining systems
Engineering
Mechanical assembly systems
Maintenance
Maintenance services
The Sector is the world’s leading
producer of bodywork systems.
The inclusion of Pico (Progressive Tool &
Industries Co.) in the Production Systems
Sector will strengthen Comau’s position in the
NAFTA market, providing it with the specialized
knowhow and resources that Pico has
acquired over the last 20 years as the leading
supplier of bodywork assembly and welding
systems to the largest carmakers in America.
A finely meshed network of skilled technical
representatives, who are available directly at
production sites, is an invaluable tool in
increasing customer loyalty and ensuring a
steady stream of orders for new systems
and maintenance services.
Principal customers
Fiat Auto, Iveco.
Other carmakers
General Motors, Ford, DaimlerChrysler,
Volkswagen Group, BMW, Renault and PSA.
58%
20%
Bodywork
28%
12%
Maintenance
4%
4%
Engineering
Plastics
Painting Systems
Fiat Group
Other carmakers
Mechanical Engineering
2%
36
Fiat Group
72%
Comau’s goal is to provide simple and effective automation systems.
Even the most complex automation system, the most complete
production line, the most sophisticated equipment must be easy to
use, cost-effective to operate, and flexible and adjustable enough
to allow shifts in component production in response to changing
market needs. From the start of the design process, Comau works
closely with its customers, providing a comprehensive approach to
the development of production alternatives — from engineering to
manufacturing and from assembly to maintenance services —
offering a “full service” package to customers throughout the world.
Operating Sectors – Production Systems
37
Aviation
Products
FIATAVIO
Aircraft engine components and systems
Since its founding, Fiat has
been noted for its ability to
develop, test and manufacture
engines for the different
businesses included in the
Group. Aircraft production
started with the beginning
of the First World War and
continued until 1969. At that
time, Fiat transferred its
frame-production activities to
Aeritalia, a newly established
company, concentrating
instead on the manufacture
of engines. In 1976, all
aviation activities were
transferred to Fiat Aviazione
S.p.A., an independent
company that later changed its
name to FiatAvio. In 1994, with
the acquisition of BPD Difesa e
Spazio, FiatAvio strengthened its
position in the aerospace market,
which has grown to represent its
second main area of strategic
interest. The acquisition of Alfa
Romeo Avio in 1997 expanded
FiatAvio’s presence as a provider
of maintenance services, with a
further extension of the value
chain.
Products
Partners
Accessory gearboxes
General Electric, Pratt & Whitney,
Power reduction boxes
Union, ITP
Pratt & Whitney Canada
Rolls-Royce, Motoren und Turbinen
FiatAvio develops, produces and distributes components and systems
for airplane and helicopter engines, and assembles turbines for marine-
Low pressure
turbines
propulsion applications. Its space activities manufacture propulsion
systems for launchers and satellites. The Sector has also developed
overhaul services for aircraft engines and energy production facilities.
In the area of commercial aircraft engines, FiatAvio participates in
Heaters and
afterburners
important development and production programs in partnership
with the world’s top engine manufacturers. In the field of Defense
Auxiliary
power units
applications, the Sector is a partner in the European consortium
that is developing and will manufacture the EJ200 engine for the
Saverio Strati,
FiaAvio’s Chief
Executive Officer.
Helicopter engines
Helicopter transmissions
Marine propulsion
and automation
new Eurofighter.
FiatAvio has developed a significant presence in the area of space
General Electric, Pratt & Whitney,
Rolls-Royce, Pratt & Whitney
Canada, Snecma Moteurs, Motoren
und Turbinen Union, ITP
Rolls-Royce, Pratt & Whitney,
Motoren und Turbinen Union, ITP,
Allied Signal
Allied Signal, Others
General Electric
Eurocopter, Sikorsky
General Electric
activities. In Europe, it collaborates in the development of the
Ariane programs, for which it produces such high-tech components as boosters
and separation engines for the Ariane 4 launcher, and boosters and a liquid
oxygen turbopump for the Ariane 5 launcher.
In 1999, the Sector had revenues of 1,361 million euros, about the same as in
the previous fiscal year. Operating income increased to 109 million euros (8%
Space
of revenues), compared with 60 million euros in 1998 (4.4% of revenues).
In 2000, FiatAvio helped establish Turboprop International GmbH (22% FiatAvio,
12% ITP, 33% Motoren und Turbinen Union and 33% Snecma Moteurs), which
will coordinate the design, development and production of the M138 engine for
Products
Partners
9.5 to 230 ton solid-fuel
propulsion engines
Snecma Moteurs, SNPE
Separation engines
Liquid oxygen
turbopumps
the A400M military transport aircraft.
Snecma Moteurs
Satellite launchers
28%
of destination
41%
Highlights
Net revenues
Italy
31%
Rest of Europe
2%
1%
97%
1,361
1998
1,361
1,263
109
60
56
As a % of revenues
8.0
4.4
4.5
79
18
145
167
112
42
36
37
128
99
119
163
159
244
5,590
5,962
6,505
Number of employees
Total
2
11
R&D centers
8
–
8
61
Cash flow
French Guyana
9
1997
Operating income
Income before
minority interest
Rest of the world
1999
Italy
This Sector is a worldwide leader in the production of
52%
16%
Aviation
12%
Engine Overhaul
accessory gearboxes for aeronautical engines. In this area
it also holds the European leadership position in the production
of power reduction boxes, afterburners, and helicopter
Gas Turbines
18%
2%
Space
Automation electronics
engines. In aerospace, it is the European leader in the
production of solid-fuel propulsion engines and separation
engines.
38
Operating Sectors – Aviation
39
Rolling Stock and Railway Systems
FIAT FERROVIARIA
Fiat Ferroviaria operates in rail and tramways, producing traction
Fiat built its first tram in 1906,
but officially entered the rolling
stock market in 1917, when
it acquired the Diatto works
in Turin. In the 1920’s, the
Company manufactured
the world’s first electric
locomotive, followed in the
1930’s by the Littorina, an
enormously successful selfpropelled rail car equipped
with an internal combustion
engine, originally powered
with gasoline and later with
diesel fuel. In response to the
need for faster, more comfortable
and efficient transportation, Fiat
Ferroviaria developed its tilting
body train and a series of highspeed bogeys, which it started to
manufacture in the 1970’s utilizing
original and futuristic solutions.
The Sector’s low-platform
trams have made an important
contribution to the development
of light subways and surface urban
transportation systems.
systems, rolling stocks of various types, railway bogeys, trams and
subway systems.
The Sector has been remarkably successful in the international
markets with its Pendolino, a tilting-body train that can achieve
higher speeds on existing railway lines and assure maximum ride
comfort, with limited investments and a short implementation
schedule.
Tampere
Edinburgh
In 1999, the markets where the Sector operates were relatively
Maurizio Magnabosco,
Fiat Ferroviaria’s
Chief Executive Officer.
Turku
Helsinki
Glasgow
stagnant, with the exception of urban transport systems in Italy.
The Pendolino train
At December 31, 1999, Fiat Ferroviaria’s order portfolio totaled
1,288 million euros (1,599 million euros at the end of 1998).
Trains in Trains on
operation
order
Revenues totaled 375 million euros in 1999, slightly less than in the previous
Italy
fiscal year. Operating income was 13 million euros (3.5% of revenues), down
Switzerland
250
Trains
under
option
Total
Liverpool
km/h on
conventional tracks
Manchester
Birmingham
Berlin
London
40
–
–
40
Düsseldorf
9
24
–
33
Frankfurt a.M.
from 18 million euros in 1998 (4.6% of revenues). Orders booked under extremely
Spain
10
–
14
24
competitive conditions account for most of this decline.
Germany
60
3
–
63
United Kingdom
–
53
25
Dresden
Hof
Nünberg
Stuttgart Furtimwald
Lines in operation
Contracts
Wien
München
Basel
Salzburg
Zürich
Bern
Genève
78
Praha
Maribor
Lyon
Finland
2
8
15
25
Portugal
5
5
–
10
Milano
Venezia
Torino
Ljubijana
Bologna
Marseille
Genova
Oporto
Czech Republic
–
7
–
7
Croatia
–
3
–
3
126
103
54
283
Firenze
Madrid
Barcelona
Pescara
Roma
Lisbon
Total
Napoli
Bari
Valencia
Reggio Calabria
1%
of destination
Italy
Highlights
1999
1998
1997
Net revenues
66%
Switzerland
Total
375
389
384
Operating income
13
18
26
As a % of revenues
3.5
4.6
6.7
3
1
4
R&D centers
3
1
4
10%
Rest of Europe
minority interest
Rest of the world
11%
3
(1)
14
Cash flow
18
15
30
11
12
9
89%
Number of employees
40
Italy
33%
8%
13%
14
The Sector is a leader in the design and production of variable-
14%
9
9
geometry trains with active tilting-body systems, and holds
55%
29
94
90
a preeminent position in the design and production of railway,
2,109
2,294
2,401
Pendolino trains
High-speed trains
Other trains
Tram and subway systems
Components
tram and subway bogeys.
Operating Sectors – Rolling Stock and Railway Systems
41
Publishing and Communications
ITEDI
Editrice La Stampa
Newspapers
● La Stampa, with daily circulation of 400,000
copies, which are distributed with various
supplements, and reach 1,650,000 readers.
La Stampa, one of Italy’s premier non-specialized national circulation
Fiat has been active in the
publishing business since
1926, when it established
Editrice La Stampa, the
eponymous publisher of
Turin’s daily. The newspaper,
which was created in 1867
as the Gazetta Piemontese,
changed its name to La
Stampa in 1895, when it was
headed by Alfredo Frassati.
Publikompass, a company
founded in 1972 to sell
advertising space for Italian
communication media on a
licensee basis, has significantly
expanded its customer portfolio.
In 1979, Fiat established Itedi,
to which it transferred all its
publishing and communications
interests.
●
newspapers, is also present on the Internet with its own website,
Editorial offices: Turin
Correspondent offices: Rome, Milan, Washington, Moscow,
Paris, London, Bonn and Brussels.
Field offices in all the provincial capitals of the regions of
Piedmont, Liguria and Valle d’Aosta.
Collaborative relationships with Le Monde (of which Editrice
La Stampa is a stockholder), The New York Times, The Los
Angeles Times and The Guardian.
The weekly Specchio, with circulation of
about 210,000 copies.
www.lastampa.it. The new edition of this site, which went on line
on December 18, 1999 with content provided by a dedicated
editorial staff, is recording as many as 100,000 page-hits a day.
La Stampa Interattiva, a subsidiary that was set up toward the end
of 1999, is developing an Internet portal in cooperation with CiaoWeb.
Publikompass
Multimedia advertising licensee
About 70,000 pages of advertising space sold
and 100,000 customers.
Sells advertising space for 11 newspapers,
11 periodicals, 6 local TV stations and 20
Internet sites.
Publikompass is a leader among Italian companies that solicits
Head office: Milan
An area office in Rome.
24 branch offices in all the main Italian business centers and
where the major clients are located.
The staff consists of 298 employees and the sales organization
of 320 agents.
advertising sales on a licensee basis and is the advertising partner
Alberto Nicolello,
Itedi’s Chief
Executive Officer.
of 33 publishers. At the end of the year, the Sector sold a 75%
interest in its non-strategic industrial publishing activities, which
are headed by Satiz, to MSX International, a U.S. group.
In 1999, net revenues totaled 413 million euros, down from the previous fiscal
year due to the deconsolidation of the Satiz activities. Operating income was
equivalent to 17 million euros (4.1% of revenues), compared with 19 million euros
in 1998 (4.3% of revenues).
In February 2000, Itedi launched Koinet, the first business-to-business portal
developed by a major Italian group. Koinet is specifically designed to meet the
communication needs of small and medium-sized businesses.
La Stampa uses a complete range of
Highlights
48%
33%
19%
Advertising
Newspaper publishing
1999
1998
1997
Net revenues
413
437
406
Operating income
17
19
11
As a % of revenues
4.1
4.3
2.7
Net income (loss)
11
–
2
Cash flow
19
11
13
8
9
7
25
21
33
934
1,473
1,505
Number of employees
electronic publishing tools: a professional
database available worldwide in real time,
La Stampa is Italy’s third-largest national
CD-ROM publishing of multimedia
circulation newspaper.
projects, Internet presence through
the www.lastampa.it website with a
Publikompass is the largest non-captive
dedicated editorial staff, electronic
company licensed to sell advertising on
distribution (Dayfax summary edition
behalf of Italian newspapers and enjoys
and an edition available at the website
a significant presence in the periodical,
of the National Telemedicine Project
Internet and television advertising
in a version accessible to visually
markets.
challenged persons).
Industrial publishing
42
Operating Sectors – Publishing and Communications
43
Insurance
TORO
ASSICURAZIONI
Premiums by business unit
54%
Life insurance
29%
Automobile insurance
Other casualty insurance
17%
Established in 1833, Toro
Assicurazioni gradually
expanded its activities to
include all segments of the
insurance market. In 1983,
IFI acquired the company
from Banco Ambrosiano and
later transferred its ownership
to IFIL. In 1989, Fiat purchased
a relative majority of its shares
and gained full control in 1990.
Toro Assicurazioni heads one
of Italy’s leading insurance
groups, ranking in third place
in terms of revenues and
among the top performers
in terms of earnings. The
Company operates in the
international markets as well. It
is particularly well established in
France, where it has operated since
1956 through the Continent Group.
Toro Targa Assicurazioni, a venture
launched in 1998 to distribute
insurance products through Fiat
dealers, is present in Italy, Brazil and
Poland. Roma Vita, a joint venture
with Banca di Roma, in which the
Sector acquired a significant interest
in 1997, has become one of the
leading bankassurance distributors.
The Italian insurance market posted strong growth in 1999,
Principal companies and activities
expanding by about 20% compared with the previous year. The
gains were especially pronounced in life insurance, which increased
written. Unit- and index-linked policies, which are linked to the
Italy
particularly successful, and sales through bank branches have
Nuova Tirrena
Life insurance and casualty
insurance products and reinsurance
Roma Vita
Joint venture with Banca di Roma
for the distribution of life insurance
products
expanded at a brisk pace. In the French market, which is the
Sector’s other major profit center, demand was about the same
Giano Assicurazioni Joint venture with Banca di Roma for
the distribution of casualty insurance
products through the bank-branch
network
as in 1998. The Sector had an outstanding year, reporting higher
Francesco Torri,
Chief Executive Officer
of Toro Assicurazioni.
insurance revenues (premiums written totaled 4,088 million euros,
+29%) and an improved operating performance (net income of 92
Italy
Rest of
Europe
Rest of
the world
Total
919
400
–
1,319
814
305
227
1,346
1,300
–
–
1,300
million euros, +44%). The programs introduced in recent years
were particularly successful, including the sale of insurance products through
Agents
such innovative channels as bankassurance (Roma Vita +72%) and Fiat dealers
Dealers
(Toro Targa Assicurazioni, +103% in Italy). In December 1999, in continued
Bank branches
pursuit of its growth strategy, Toro acquired the French operations of the Guardian
Group, which will be merged with the Continent Group, strengthening its range
DAS
Legal assistance insurance
Toro Targa
Assicurazioni
Distribution of casualty insurance
products (auto insurance primarily)
through the Fiat dealer network
Phenix Seguradora
Casualty insurance products in Brazil
Continent
Assurances Group
Life insurance and casualty insurance
products and reinsurance in France
Guardian Royal
Exchange Group
of products. The newly acquired companies, which will be consolidated as of
2000, booked premiums totaling more than 180 million euros in 1999.
Toro Assicurazioni ranks third among Italian insurance
At the end of 1999, the Sector received the authorizations required to operate
groups. Based on current estimates, Roma Vita is
in Poland through a direct subsidiary.
the second largest service provider in the
bankassurance market.
10%
89%
Consolidated premiums
Consolidated premiums per employee
Investments and technical reserves
in thousands of euros
4,088
Highlights
Life insurance
Casualty
insurance
1999
1998
1997
Consolidated premiums
4,088
3,169
2,162
Premiums earned
3,922
2,959
2,016
178
116
133
92
64
88
9,733
6,386
4,738
10,867
7,393
5,520
Stockholders’ equity
1,444
1,334
1,083
Number of employees
2,907
2,869
2,786
Income before taxes
Net income
before minority interests
Rest of the world
3%
26%
71%
Technical reserves
Investments in financial
assets and real estate
1,574
4,000
10,867
1,500
9,733
10,000
Technical reserves
3,169
Investments
1,193
3,000
1,125
7,500
7,393
6,386
2,162
Rest of Europe
44
performance of mutual funds or stock market indices, have been
1%
of destination
Toro Assicurazioni
by more than 30%, and now accounts for 58% of all premiums
1,932
840
2,000
696
743
5,520
750
1995 1996 1997 1998 1999
3,965
3,676
1,364
1,000
375
0
0
1995 1996 1997 1998 1999
5,000
4,738
4,684
2,838
2,500
0
1995
1996
1997
1998
1999
Operating Sectors – Insurance
45
Other Companies
SERVICES
Consistently with the strategy
launched by the Group in previous
fiscal years to reduce the
complexity of all its businesses,
the services that support the
industrial activities, which
previously operated at the Sector
and country level, have been
concentrated at dedicated
organizational units. These
centers of professional excellence
provide the Group with better
quality services at lower cost.
Administrative and Financial Services
Fiat Gesco All the administrative activities of the Group Sectors (accounting, financial reporting,
Information and Communication Technology
taxation and management reporting) have been concentrated in this company, which employs
1,931 people in Italy. It also coordinates and manages these activities in France, Germany, United Kingdom,
CIAOHOLDING is a joint venture owned in equal shares by Fiat and
IFIL. It operates the CiaoWeb Internet portal which has among its purposes
the creation of an online channel to promote the products and services
offered by the Fiat Group’s companies, IFIL and their sales networks. At the same
time, CiaoWeb collaborates with external partners who can help it increase the range
and depth of its e-commerce lineup. CiaoWeb was launched on December 18, 1999.
By March of this year, 115,000 subscribers were using its free Internet service, with
400,000 page hits a day. CIAOHOLDING also coordinates investments in venture
capital funds that specialize in e-commerce, and provides professional Internet services
(Web Hosting, Web Design, Virtual Internet Service Provider).
Spain, Belgium, Poland, Argentina, Brazil and the United States, where it has a total of 1,277 employees.
Fiat Ge.Va.
This company provides centralized cash management services to Fiat Group
companies and acts as a financial management consultant. It is present in all the major
countries where the Group operates either directly or through its international cash management units.
Fiat Ge.Va. S.p.A. has 204 employees.
In 1999, Fiat Ge.Va. responded to the substantial financial commitments undertaken by the Group by
mobilizing significant resources in the Eurobond market and through real estate and financial securitization
transactions in Italy and abroad.
Fiat G.S.A. This company provides
information technology support
services in the development of software specifically designed for industrial, commercial,
administrative and personnel management applications. It also coordinates and manages these
activities in France, Germany, United Kingdom, Spain,
Belgium, Poland, Argentina and Brazil. It has 701
employees in Italy and 257 abroad.
ITS provides information technology services
(hardware management and maintenance)
and data transmission systems. It has 725
employees in Italy. It also coordinates and
manages these activities in France, Germany, Spain,
Poland and Brazil, where it has a total of 233 employees.
Telexis’ corporate mission is to
develop, produce and operate telecommunication services that encompass the supply
of products and services for online communications, including Internet-related
services. It has 256 employees in Italy. It also coordinates and manages activities
in France, Spain, Poland and Brazil, where its overall staff totals 48 employees.
Real Estate Services
Ingest-Segim All services related to the regular maintenance of the
Group’s real estate assets (office and residential buildings) are being
concentrated in this recently established company.
IPI This company, which is listed on the Stock Exchange, has traditionally
engaged in the development and management of real estate assets, and
the provision of related consulting services, for Fiat Group companies
and external customers. It has 113 employees.
46
Personnel Administration and Training Services
Fiat Se.p.In This company specializes in personnel management, administration and selection,
as well as in the development of human resources and the provision of health benefits and
the management of business centers. It has 1,110 employees.
Isvor Fiat provides personnel training and educational services to Group companies and
external customers. It also supplies standard and customized products, and designs personnel
training courses for the Group’s sales networks and its principal suppliers. It has 232 employees
in Italy. It also coordinates and manages activities in Argentina, Brazil and India and operates
professional centers in France, Germany, Spain, Great Britain and Poland.
In providing its services, Isvor Fiat relies on the contribution of a staff of 160 instructors and more than
900 consultants from 15 countries.
Operating Sectors – Other Companies
47
P R I N C I PA L
FIAT GROUP
C O M PA N I E S
A U T O M O T I V E C O M PA N I E S
Automobiles
Agricultural and
Construction Equipment
Fiat Auto S.p.A.
Italy
Fiat Auto (Suisse) S.A.
Switzerland
Iveco N.V.
Netherlands
CNH Global N.V.
Netherlands
FMA - Fabbrica Motori
Automobilistici S.p.A.
Italy
Fiat Auto (U.K.) Ltd
Great Britain
Astra Veicoli Industriali S.p.A.
Italy
Fiat Hitachi Excavators S.p.A.
Italy
Fiat Automobil AG
Germany
Iveco Aifo S.p.A.
Italy
New Holland Italia S.p.A.
Italy
Fiat Automobil GmbH
Austria
Iveco S.p.A.
Italy
Case Brasil & Cia.
Brazil
Fiat Automobiler Danmark A/S
Denmark
Sicca S.p.A.
Italy
Case Canada Corporation
Canada
Fiat Automóveis S.A. - Fiasa
Brazil
Camiva S.A.
France
Case Corporation
United States
Fiat CR Spol S.R.O.
Czech Republic
International Trucks Australia Ltd.
Australia
Case Corporation Pty Ltd
Australia
Fiat India Automobiles Limited
India
Iveco Argentina S.A.
Argentina
Case France S.A.
France
Fiat Magyarorszag KFT.
Hungary
Iveco Austria GmbH
Austria
Case Germany GmbH
Germany
Sevel S.p.A.
Italy
Iveco Belgium S.A. N.V.
Belgium
Case Harvesting Systems
GmbH
Germany
SATA - Società Automobilistica
Tecnologie Avanzate S.p.A.
Italy
Fiat Auto Argentina S.A.
Argentina
Fiat Auto Belgio S.A.
Belgium
Fiat Auto España, S.A.
Spain
Fiat Auto (France) S.A.
France
Fiat Auto Hellas S.A.
Greece
Fiat Auto (Ireland) Ltd.
Ireland
Fiat Auto Japan K.K.
Japan
Fiat Auto Maroc S.A.
Morocco
Fiat Auto Nederland B.V.
Netherlands
Fiat Auto Poland S.A.
Poland
Fiat Auto Portuguesa, S.A.
Portugal
Fiat Auto South Africa Pty. Ltd
Republic of South Africa
(*)
Sevel Nord S.A.
France
Tofas A.S.
Turkey
(*)
(*)
Iveco Danmark A/S
Denmark
Iveco Ford Truck Ltd
Great Britain
Iveco France S.A.
France
Ferrari S.p.A.
Italy
Maserati S.p.A.
Italy
Iveco Magirus AG
Germany
Iveco Mercosul Ltda
Brazil
Iveco Pegaso, S.A.
Spain
Case United Kingdom Limited
Great Britain
FiatAllis Latino Americana Ltda
Brazil
New Holland Australia Pty Ltd.
Australia
New Holland Belgium N.V.
Belgium
New Holland Canada Ltd
Canada
Iveco Portugal Ltda.
Portugal
New Holland Deutschland
GmbH
Germany
Naveco Ltd
China
New Holland France S.A.
France
(*)
Fiat Sava S.p.A.
Italy
Fiat Bank Polska S.A.
Poland
Transolver Finance S.p.A
Italy
Case Canada Investments Ltd.
Canada
Fidis S.p.A.
Italy
Fiat Credit France S.A.
France
Transolver Service S.p.A.
Italy
Case Credit Australia Pty Ltd
Australia
Sava-Leasing S.p.A.
Italy
Fiat Credito Compania
Financiera S.A.
Argentina
Fraikin Société Anonyme
France
Case Credit Corporation
United States
Transolver Finance S.A.
France
Case Credit Ltd.
Canada
Transolver Financial Services Ltd
Great Britain
Case Receivables II Inc.
United States
Transolver Operational
Services Ltd
Great Britain
Case Wholesale Receivables Inc.
United States
Savarent S.p.A.
Italy
Targa Services S.r.l. a S.U.
Italy
Banco Fiat S.A.
Brazil
Fiat Auto Contracts Ltd
Great Britain
Fiat Auto Financial Services Ltd
Great Britain
Fiat Bank GmbH
Germany
48
Commercial Vehicles
Fiat Credito Portugal S.A.
Portugal
Fiat Distribuidora Portugal Ltda
Portugal
Fiat Finance Netherlands B.V.
Netherlands
Fiat Financiera, S.A.
Spain
Sofice - Société de Financement
des Concessionnaires S.A.
France
Transolver Services S.A.
France
CNH Capital Corporation
United States
O T H E R I N D U S T R I A L C O M PA N I E S
New Holland Latino
Americana Ltda
Brazil
New Holland North America Inc.
United States
New Holland U.K. Limited
Great Britain
O&K Orenstein & Koppel AG
Germany
Al-Ghazi Tractors Limited (*)
Pakistan
Flexi-Coil Ltd (*)
Canada
New Holland de Mexico S.A.
de C.V. (*)
Mexico
Türk Traktör Ve Ziraat
Makineleri A.S. (*)
Turkey
Metallurgical Products
Components
Production Systems
Teksid S.p.A.
Italy
Magneti Marelli S.p.A.
Italy
Comau S.p.A.
Italy
Teksid For S.p.A.
Italy
Magneti Marelli
Climatizzazione S.p.A.
Italy
Geico S.p.A.
Italy
Fonderies Aluminium Cleon S.A.
France
Fonderies du Poitou S.A.
France
Sistemi Sospensioni S.p.A.
Italy
Magneti Marelli Argentina S.A.
Argentina
Meridian Technologies Inc.
Canada
Magneti Marelli Cofap S.A.
Brazil
Société Bretonne de Fonderie
et Mecanique S.A.
France
Magneti Marelli Components B.V.
Netherlands
Teksid Aluminio
de Mexico S.A. de C.V.
Mexico
Magneti Marelli
Deutschland GmbH
Germany
Teksid Aluminum Foundry, Inc.
United States
Magneti Marelli do Brasil
Industria e Comercio Ltda.
Brazil
Teksid do Brasil Ltda.
Brazil
Magneti Marelli France S.A.
France
Teksid, Inc.
United States
Magneti Marelli Iberica S.A.
Spain
Teksid Poland S.A.
Poland
Teksid Hierro de Mexico S.A.
Mexico
Italtech S.p.A.
Italy
U.T.S. S.p.A.
Italy
Aims Holdings (Pty) Ltd.
Republic of South Africa
Autodie International, Inc.
United States
Comau Argentina S.A.
Argentina
Comau Deutschland GmbH
Germany
Comau do Brasil Ind. e Com. Ltda
Brazil
Comau Estil UK Unlimited
Great Britain
Comau France S.A.
France
Comau India Pvt. Ltd.
India
Magneti Marelli Mexico S.A.
Mexico
Comau Poland Sp. zo.o.
Poland
Magneti Marelli Poland S.A.
Poland
Comau Sciaky S.A.
France
Magneti Marelli U.K. Ltd
Great Britain
Mecaner S.A.
Spain
Magneti Marelli U.S.A. Inc.
United States
Pico Holdings Corporation
United States
(*)
Automotive Litghting Holding
GmbH (*)
Austria
Pico Mexico, Inc.
United States
Progressive Tools & Industries Co.
United States
Renault Automation Comau S.A.
France
New Holland Credit Company
LLC
United States
New Holland Receivables Co.
United States
New Holland Trade N.V.
Netherlands
Midas Europe S.A. M.
Princ. of Monaco
Comau Service S.r.l.
Italy
Viasat S.p.A. (*)
Italy
Comau Service do Brasil Ltda.
Brazil
S E R V I C E C O M PA N I E S
Rolling Stock
and Railway Systems
Insurance
Publishing and Communications
Miscellaneous and
Holding Companies
Fiat Ferroviaria S.p.A.
Italy
Toro Assicurazioni S.p.A.
Italy
Itedi - Italiana Edizioni S.p.A.
Italy
Fiat Engineering S.p.A.
Italy
Elettromeccanica Parizzi S.p.A.
Italy
D.A.S. - Difesa Automobilistica
Sinistri S.p.A.
Italy
B. & B. Immobiliare S.p.A.
Italy
IPI S.p.A.
Italy
Editrice La Stampa S.p.A.
Italy
Sicind S.p.A.
Italy
Publikompass S.p.A.
Italy
Fiat Argentina S.A.
Argentina
Fiat Rail Ltd
Great Britain
Fiat-Sig Schienenfahrzeuge AG
Switzerland
Giano Assicurazioni S.p.A.
Italy
Iniziative Sviluppo Immobiliare Isim S.p.A.
Italy
Fiat Deutschland GmbH
Germany
Nuova Tirrena S.p.A.
Italy
Aviation
Roma Vita S.p.A.
Italy
Fiat do Brasil S.A.
Brazil
Other Service Companies
Toro Targa Assicurazioni S.p.A.
Italy
FiatAvio S.p.A.
Italy
Sepa S.p.A.
Italy
FiatAvio Inc.
United States
Regulus S.A.
French Guyana
Serene S.p.A. (*)
Italy
Sogetel S.p.A. (*)
Italy
Vegaspazio S.p.A. (*)
Italy
Eurojet Turbo GmbH (*)
Germany
Europropulsion S.A. (*)
France
Turbo-Union Ltd (*)
Great Britain
Companhia de Seguros
Maritimos e Terrestres Phenix
Brazil
Centro Ricerche Fiat
Società Consortile per Azioni
Italy
Continent Assistance S.A.
France
Elasis - Sistema Ricerca
FIAT nel Mezzogiorno Società Consortile per Azioni
Italy
Guardian France S.A.
France
Guardian Risques S.A.
France
Guardian Vie S.A.
France
Le Continent I.A.R.D. S.A.
France
Le Continent Vie S.A.
France
L’Union Générale du Nord S.A.
France
Augusta Assicurazioni S.p.A.
Italy
Fenice S.p.A.
Italy
Fiat Ges.co. S.c.p.A.
Italy
Fiat France S.A.
France
Fiat Iberica, S.A.
Spain
Fiat United Kingdom Ltd
Great Britain
Fiat U.S.A., Inc.
United States
I.H.F. - Internazionale Holding
Fiat S.A.
Switzerland
New Holland Holdings N.V.
Netherlands
Fiat GE.VA. S.p.A.
Italy
Fiat G.S.A. S.r.l.
Italy
Isvor Fiat S.p.A.
Italy
ITS S.r.l.
Italy
Telexis S.r.l.
Italy
Prime Augusta Vita S.p.A.
Italy (*)
Engine Overhaul activities carried out
by FiatAvio S.p.A.
(*) Affiliated Company
The Fiat Group in 1999
Operating Sectors
Published by:
Fiat Information & Communication Services
Editorial Coordination:
Micrograf – Turin, Italy
Design by:
Fantinel & Associati – Turin, Italy
On the cover:
Oil on canvas, 100x25 cm
by Roberto Bergonzo – Turin, Italy
Printed by: Puntografico – Brescia, Italy
Printed in Italy
June 2000
01UK

Operating Sectors The Fiat Group in 1999 - FCA Group

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