2005 Sustainability Report

Transcription

2005 Sustainability Report
Economic, Environmental
and Social Responsibility
Fiat S.p.A.
Registered Office: Via Nizza 250,Turin, Italy
Paid-in capital: 6,377,257,130 euros
Entered in the Turin Company Register
Fiscal Code: 00469580013
Contents
4
6
Letter to stakeholders
Commitments for the future
Fiat Identity
10
12
14
18
22
The year of Fiat’s turnaround
Board of Directors
More than one hundred years of history
Organization
Corporate Governance
Economic Responsibility
28
30
36
39
40
58
Group Highlights
Stockholders
Environmental Responsibility
64
Environmental Governance
79
Research and Innovation
74
85
87
93
94
Implementing Environmental Management Systems
Implementation of EU Regulations
Safe, environmentally friendly mobility
Acclaim for the Group’s work
Environmental Performance
Social Responsibility
118
136
Human Resources
Community
Lenders
Appendix
Customers
160
Human Resources
Suppliers
158
161
164
167
Methodology
Report of the Auditing Firm
Main performance indicators
Glossary
Assessment questionnaire
Letter
to stakeholders
A year ago we decided to present the Group’s first Sustainability
we have delivered on our promises.
It was a way of recognizing the importance we place on
The Report has a twofold aim - to take stock of what has been
social responsibility. A way of emphasizing that for Fiat, dialogue
must tend.
management accountability, with respect to the environment and
with the community is not a peripheral issue, but a vital part of
accomplished, and to establish the targets to which our future work
the way we work and do business.
Thus, the section on economic responsibility underscores how Fiat
Publishing our first Sustainability Report at such a juncture was also
and that of overseeing compliance with our Code of Conduct. We
a way to express our confidence in the future, to look beyond our
immediate concerns and challenges to the time when our difficulties
would have become a thing of the past.
A year has gone by, and Fiat has surprised many with achievements,
which in some way were ahead of expectations. Our new models,
has reached its goal of increasing the Group’s value and competitiveness,
have also made significant headway in informing our suppliers of Fiat’s
principles of conduct and we are now monitoring results. We have
nearly completed the process of making our Internal Control System
fully Sarbanes-Oxley compliant, a move that will further enhance
confidence in the Group at the international level.
notably the Grande Punto, are proving remarkably successful.
We have also enriched the Report’s section on environmental
areas and our debt has been reduced by two-thirds. All of our major
function was set up in 2005 to ensure that our products’
array of important targeted agreements reached with international
the environment.The number of our plants that have received ISO
Having strengthened our finances, we are back in the black in many
strategic and financial issues have been successfully resolved, and an
partners has laid the foundations for future growth.
This Sustainability Report illustrates the great strides Fiat has made,
not only in finance, manufacturing and products, but also in corporate
responsibility.
The Sustainability Report is broken down into three sections,
dealing with the Fiat Group’s economic, environmental and social
responsibility. Building on last year’s report, we have made several
additions, reflecting the goals set out at the time and which to a
4
large extent have been met - this is yet another area in which
Report.
responsibility. In particular, a new central Research and Innovation
technological development is oriented to lighten their impact on
14001 certification increased from 84 in 2004 to 89 in 2005. Our
Environmental Management System has been extended to many
more manufacturing sites, and our initial efforts at tying respect for
the environment in with our business targets are bearing fruit.
Advances have also been made in social responsibility.The information
provided in the section on Human Resources now covers the Group’s
worldwide operations. In addition, the Group has continued to
support major programs to help the disadvantaged in countries such
as Brazil, and embarked on new initiatives in Europe and elsewhere.
Our concern for the less fortunate was also shown in 2005 by
In conclusion, we are satisfied with the progress made last year
of the Torino 2006 Paralympic Winter Games. Globally our
making Fiat’s commitment stronger and communication in this area
our active contribution to the development and organization
commitment to community involvement can be gauged by the
sums we dedicate to these projects worldwide, which exceeded
€ 16 million in 2005.
Chairman, Fiat S.p.A.
Luca Cordero di Montezemolo
towards greater sustainability. And we will continue to move forward,
ever more transparent and open. We feel we owe it to all of our
stakeholders: stockholders, lenders, employees, customers, suppliers
and community.
Chief Executive Officer, Fiat S.p.A.
Sergio Marchionne
5
The table here below shows the commitments that the Fiat Group
the table.The Fiat Group therefore renews the commitments
progress made in 2005. A detailed review in this respect is provided
both the targets that were partially achieved and those that, in its
declared to undertake in the 2004 Sustainability Report and the
in the current Report at the page indicated in the last column of
COMMITMENTS
DECLARED IN 2004
Inclusion of Corporate Social
Responsibility in the corporate
strategies of the Fiat Group
Increase the Company’s value
and competitiveness
Develop activities to assess
respect of the Code of Conduct
within the Group
Include all suppliers in a
monitoring system for the
implementation of the principles
set forth in the Code of Conduct
and the Compliance Program
Further extend the
implementation of
the Environmental
Management System
6
declared to Stakeholders in the first Sustainability Report, as regards
opinion, were successfully met in 2005.
PROGRESS MADE IN 2005
Page
ECONOMICS
The Fiat Group set the foundation for developing a path of social responsibility in the respect
of business requirements and with the involvement of the management at every level in the
organization. Future steps will be taken to strengthen the reporting system also with the aim of
giving voice to socially responsible initiatives undertaken in the more peripheral areas of the Group.
2005 marked a turning point for Fiat:
2005 closed with a net income of over 1.4 billion euros;
Net industrial debt slashed by two-thirds;
Better debt rating;
The new models launched by all brands were extremely well received by public for their
creativity, style, technology and innovation.
New tools to monitor respect of Code of Conduct were introduced
At the beginning of 2005 the Procedure for Whistleblowings Management was adopted by the
Group in order to regulate the management of reports and claims filed by individuals inside or
outside the Company regarding violations of the Code of Conduct;
Violations of the Code of Conduct that were not detected as a result of complaints but that
emerged during audit activities carried out by Internal Audit or Compliance Officers of Group
Sectors;
Fiat Revi, the Fiat Group Internal Audit company, performed Business Ethic audits and audits of
the integrity of the control environment of leading Group Companies;
At the beginning of 2005 a method for analysing travel expenses was implemented in some
sample companies, in order to identify employee conduct in violation of company policy.
With variations from Sector to Sector, and respecting their independent management of
relationships with suppliers and partners, disclosure of adoption by Group Sectors of the
Compliance Program pursuant to Legislative Decree 231/2001 and the Code of Conduct
continued.
–
10, 28,
29, 37
22-25
60
ENVIRONMENT
Regular internal and external audits continued to be organized as an integral part of the
Environmental Management System, applied at the Group’s manufacturing sites.
An Intranet-based information system for the integrated development of environmental
management systems is in use at Fiat Auto manufacturing plants (Cosene).
66-67
Increase the number of ISO14001
certified production sites
Enhance technological
research and innovation
activities that ensure the
lowest environmental impact
of products
Develop processes that
guarantee the integration of
business objectives with
environmental protection
Strengthen relations with
stakeholders and their
involvement in social and
environmental issues
Focus commitments on
projects having a high social
impact for the wellbeing
of communities where the
Fiat Group operates
Increase training activities
that educate about sociallysustainable behaviours
Ensure commitment to the
disadvantaged and equal
opportunities in general
The number of ISO 14001 certified Fiat Group plants increased to 89 (84 in 2004), including 40
plants in Italy and 49 abroad. A further 14 plants are currently engaged in the certification process.
With the Centro Ricerche Fiat and Elasis as its main players, the Fiat Group created a function,
whose role is to act as a guiding point for all research and innovation activities performed by
the single Sectors, to the benefit of industrialisation.
Research and development activities targeted at producing environmentally-friendly engines
continued in 2005, satisfying in advance future environmental limits.
CRF and Elasis are highly specialised research centres whose work addresses technological
innovation, complete vehicle development, mobility and its environmental impact, and traffic
safety.
Environmental management is built into every management decision, in the awareness that
environmental benefits can be translated into economic benefits.
70-73
79-84
65-66
SOCIAL
Great attention was devoted to employees. Many initiatives were launched and new services
offered to improve the quality of life and the working environment.
The 2004 Sustainability Report was presented to trade unions at the national level as well as
during the meeting of the Fiat Group European Works Council, with particular focus on issues
concerning social responsibility towards employees.
Opinions from stakeholders were collected and assessed by means of a questionnaire available
both in paper and online
The graphic design adopted for this Sustainability Report, which features pictures of some
Group employees, aims at underscoring the central role of people in our organisation and
establishing a link between this document and Group human resources.
Community investments involve medium and long-term programs and projects whose purpose
is to contribute to the resolution of serious social problems, protecting the territory where the
Group Companies are located, and promoting important cultural or artistic initiatives.
Principal activities in this field are focused on the poorest areas of Brazil, where the Fiat Group
has a major industrial presence.
Institutional training courses were organized by Fiat in Italy.
Company documentation dedicated to the issues addressed by the Code of Conduct,
Corporate Governance, and Internal Control was added to the courses for new university
graduates, professionals, and executives.
Revision of the self-paced online course was started in the framework of the Compliance
Program pursuant to Legislative decree 231/01.
Within the framework of environmental certification systems special attention was devoted to
training programs.
The Group is constantly committed to ensuring equal opportunities.
The investment in the Fiat Autonomy Program continued in order to guarantee services and
individual and collective means of transport to the disabled. An additional mobility centre was
opened in Italy. CNH launched the development of a special range of agricultural equipments
especially designed to be used by the disabled and the elderly.
129-135
167
141-145
22
24-25
68-69
121-122
151-153
7
01
Fiat Identity
10
14
12
18
22
24
Evolution of the Compliance Program
Board of Directors
22
Organization
25
Application of the Code of Conduct
Identification and Assessment of Risks
Fiat Identity
9
01 Fiat Identity
2005 marked a turning point for Fiat.The Company delivered on its
commitments, it met all of its targets and even exceeded a number
of them. Fiat promised that 2004 would be the final year of net
losses for the Group - and a net income of over 1.4 billion euros
was achieved in 2005.
The Company had committed to a drastic cut in net industrial debt,
which was reduced by two-thirds.
Fiat had decided to focus on the relaunch of its Automobile activities,
OUTLOOK FOR 2006 FOR THE MAIN GROUP SECTORS
Fiat Auto
Stable Western European market, moderate growth in Brazil
Boost in volumes and sales mix improvements in the
European market
and in the last quarter of 2005 Fiat Auto posted a trading profit
In Brazil, profitability level similar to that of 2005
These results have contributed to restoring Fiat’s credibility, not
Purchasing efficiencies to offset price hikes in raw materials
of 21 million euros after 17 consecutive quarters of losses.
only in Italy, but internationally.
The Company’s reputation has also benefited from the launch of
new models across all brands that have been received extremely
well by the public for their creativity, style, technology, and innovation.
Aggressive cost-cutting strategy in all non-essential areas
CNH
Strong demand for construction equipment, stable agricultural
equipment volumes
North American market better than the European one, soft
demand in Latin America
Benefits from the recent brand reorganisation
Pricing policies to offset rises in raw material costs
Purchasing and manufacturing efficiencies
Iveco
Stable Western European market
These and other breakthroughs could not have been achieved
and buses
without the strenuous efforts of the entire Fiat community, each and
Growth expectations in the rest of the world, particularly
Group with dedication and ability.To do so, the Fiat people had to
Manufacturing efficiencies to offset higher labour and
responsibility and accountability, and to show their determination
Major product range improvements
every one of whose members contributed to the relaunch of the
endorse fundamental changes in attitude, to assume greater
to deliver.
During 2005, Fiat also built a strong base for more effective and
profitable operations in the future.
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Slight increase in market shares for heavy-range vehicles
Fiat Identity
for buses
utilities costs
Though much was done in 2005 to set the Company on course
It will complement its advanced technological resources with
from over and much remains to be done.
Finally, Fiat will continue to seek new international opportunities,
towards a real, lasting turnaround of the Group, the process is far
Nonetheless, today’s Fiat is a much different company from what it
was just a year ago. Fiat is a Group with a reinvigorated managerial
structure, a leaner organization, a solid financial structure and
stronger market positions thanks to new products.
This new Fiat can achieve new, challenging targets in 2006.
better commercial organization and more efficient services.
implementing its strategy of targeted alliances with key partners.
Fiat made a clean break with the past, while respecting all
commitments made to stakeholders.
Fiat is clearly within reach of recovering its position as a competitive
automotive Group.
At Group level, Fiat aims to deliver positive cash flow from
operations, a trading profit between 1.6 and 1.8 billion euros,
and net income of about 700 million euros.
While the Company does not expect market conditions for its
operating Sectors to change materially this year, it has set high trading
margin targets (trading profit as a percentage of revenues) for all of
them: 7% to 7.5% at CNH, 5.5% to 6% at Iveco, and 3.5% to 4% in
Components and Production Systems.
The Automobile Sector should also turn in a positive performance,
with a trading margin of 0.5% to 1%.
This result will be supported by the full-year contribution of new
models already rolled out.These will be joined in coming months
by other new models, as the Sector implements its aggressive
product renewal plan calling for the launch of 20 new models and
the restyling of 23 current models between 2005 and 2008.
During the year, the Company will remain focused on reducing costs
in non-essential areas, while continuing to invest in innovation.
Fiat Identity The year of Fiat’s turnaround
11
01 Fiat Identity
Board of Directors
58 years old, Chairman
President of Confindustria
Chairman and Chief Executive Officer of Ferrari S.p.A.
President of the Bologna International Trade Fair
President of Luiss Guido Carli
Vice President of UNICE (Union des Industriels de la
Communautée Européenne)
Member of CNEL (Consiglio Nazionale Economia e Lavoro -
National Council for Economics and Labor)
Member of the Board of Directors of: La Stampa; PPR
(Pinault/Printemps Redoute);Tod’s; Indesit Company; Le Monde
Member of the International Advisory Board of Citigroup Inc.
Awarded the title of Cavaliere del Lavoro
John Elkann
30 years old,Vice Chairman
Chairman of Itedi
Vice Chairman of IFIL Investments S.p.A.
General Partner and Vice Chairman of Giovanni Agnelli e C. Sapaz
Member of the Board of Directors of: Exor Group SA; IFI S.p.A.;
Rcs MediaGroup
President of the Italy-Japan Foundation,Vice Chairman of the ItalyChina Foundation and of the Giovanni Agnelli Foundation
Vice Chairman of the Italian Aspen Institute
Director of the Pinacoteca Giovanni e Marella Agnelli
Sergio Marchionne
53 years old, Chief Executive Officer
Chief Executive Officer of Fiat Auto
Chairman of CNH Global
Chairman of Banca Unione di Credito
Chairman of SGS SA
Chairman of ACEA (European Automobile Manufacturers Association)
Member of the Board of Directors of: Serono SA and Chairman
of the Audit Committee
Permanent member of the Giovanni Agnelli Foundation
Member of the General Council of Assonime (Associazione fra
le Società Italiane per Azioni - Association for Italy’s limited
liability companies)
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Fiat Identity Board of Directors
Andrea Agnelli
31 years old, Director
After four years spent in Lausanne at Philip Morris International
(Marketing and Corporate Affairs), he now works in Turin in the
Corporate Development department of IFIL
Angelo Benessia
65 years old, Independent Director
Vice Chairman of Rcs Quotidiani S.p.A.
Member of the Board of Statutory Auditors of the Turin Polytechnic
University
Director of the Piedmontese Institute for Economic and Social
Sciences Antonio Gramsci (Fondazione Istituto Piemontese di
Scienze Economiche e Sociali “Antonio Gramsci”).
Tiberto Brandolini d’Adda
General Partner of the Giovanni Agnelli e C. Sapaz
Vice Chairman and Member of the Executive Council of IFIL
Investments S.p.A.
Chairman and General Manager of Sequana Capital
Vice Chairman and Chief Executive Officer of the Exor Group
Director of the Société Générale de Surveillance Holding Sa (SGS),
of Vittoria Assicurazioni and of Espirito Santo Financial Group S.A.
Flavio Cotti
Chairman of the Advisory Board of Credit Suisse Groupe (Zurich)
Member of the Board of Directors of: Georg Fischer AG,
Schaffhausen and of the Società Elettrica Sopracenerina, Locarno
Member of the Board of Directors of Jakobs Foundation
Luca Garavoglia
Chairman of Davide Campari-Milano S.p.A.
Vice Chairman of Federvini and Vice President of the National “C”
Syndicate of Federvini
Member of the General Council and of the Executive Committee
of Assonime (Associazione fra le società italiane per azioni Association for Italy’s limited liability companies)
Vice Chairman of EALIC - European Association for Listed Companies
Chairman of the Italian Advisory Board of INSEAD of Fontainebleu
Member of the Management Board of AIdAF - Associazione
Italiana delle Aziende Familiari (Italian Association of Family-owned
Companies)
Director of the FAI (Fondo per l’Ambiente Italiano - Fund for the
Italian Environment) Foundation
Director of the European Institute of Oncology
Gian Maria Gros-Pietro
Chairman of Autostrade S.p.A.
Independent director of Edison S.p.A. and Seat Pagine Gialle S.p.A.
President of Federtrasporto, Member of the General Council of
Confindustria, the General Council and Executive Committee
of Assonime (Associazione fra le società italiane per azioni Association for Italy’s limited liability companies) and of the
Industrialists Association of Rome
Member of CNEL (Consiglio Nazionale dell’Economia e
del Lavoro - National Council for Economics and Labor)
Vittorio Mincato
Chairman of Poste Italiane S.p.A.
Chairman of Assonime (Associazione fra le società italiane
per azioni - Association for Italy’s limited liability companies)
Member of the Executive Committee of Confindustria
Vice Chairman of the Industrialists Association of Rome
Member of the Board of Directors of Parmalat
Member of the Board of Directors of the Accademia Nazionale di
Santa Cecilia di Roma and of the Accademia Olimpica di Vicenza
Pasquale Pistorio
Honorary Chairman of STMicroelectronics
Vice President of Confindustria for Innovation and Research
for Europe
Member of the “Conseil Strategique pour l’attractivitè du pays
aupres du Premier Ministre Français”; of the Internal Advisory
Vice President of the Istituto Grandi Infrastrutture (Great
Council of the Government of Singapore; of the International
Member of the Executive Committee and General Council of
Business Council for Sustainable Development; of the “Conseil
Infrastructures Institute)
the Aspen Institute Italia, of the International Business Council
of the World Economic Forum and of the Supervisory Board
of Sofipa Equity Fund and of the Board of Directors of the
Rosselli Foundation
Hermann-Josef Lamberti
Member of the Board of Managing Directors of Deutsche Bank AG
Chairman of the Supervisory Board of Deutsche Bank Privat- und
Geschäftskunden AG
Member of the Supervisory Board of Carl Zeiss AG and Deutsche
Börse AG
Virgilio Marrone
General Manager of IFI, Istituto Finanziario Industriale S.p.A.
Business Council of the World Economic Forum; of the World
Strategique des Technologies de l’Information” and of the
European Round Table of Industrialists (ERT)
Daniel John Winteler
Chairman and Chief Executive Officer of the Alpitour Group
Member of the Board of Directors of: IFIL Investments S.p.A.;
Sequana Capital
Mario Zibetti
66 years old, Independent director
Member of the Board of Directors of: Ersel Finanziaria S.p.A.;
Comital-Cofresco S.p.A. (Comital SAIAG Group); Fabio Perini
S.p.A. (Korber AG Group)
Member of the Board of Directors of: Sanpaolo IMI S.p.A. and of
Exor Group S.A.
Fiat Identity Board of Directors
13
01 Fiat Identity
F.I.A.T. was founded in Turin on July 11, 1899, at a time of lively
The Lingotto factory, the largest in Europe, soon became the emblem
in 1900 in Corso Dante and it employed 35 people that produced
In those years Fiat diversified its activities to include the iron
industrial expansion of the city.The first factory was inaugurated
24 cars a year.
Giovanni Agnelli, a former cavalry officer, stood out among the
shareholders for his determination and strategic vision and in 1902
he was appointed Managing Director. He promoted a Tour d’Italie
by car for advertising purposes: an initiative that had become a huge
success by the time it reached the Milan Exhibition finishing line.
In 1904 the company adopted the oval trademark on a blue
background designed by Carlo Biscaretti.The first Fiat-branded car
was a 4 HP.The company was to follow a two-pronged strategy
of growth: diversification of production and a focus on the most
promising markets.
In 1903 Fiat was listed on the stock exchange and new companies
with specific functions were set up: Società Carrozzeria industriale,
Fiat Brevetti, S.A. Garages Riuniti Fiat-Alberti-Storero.The Fiat plants
produced road and racing cars, commercial vehicles, marine engines,
trucks, trams, taxis and ball bearings.
The company approached the market with a strategic, international
vision: in 1908 Fiat Automobile Co. was set up in the United States to
produce Fiat vehicles under license and in 1909 the Poughkeepsie plant
was built in the State of New York. Relations were established for the
export of cars to France, Austria, the United Kingdom and Australia.
At the end of its first decade of activity, Fiat had a capital stock
of 12,000,000 Italian liras, 2,500 employees and an annual output
of 1,215 cars.
The outbreak of World War I brought about a massive expansion
in the production of army trucks, airplanes, ambulances and engines
for submarines.This temporary conversion to military production
did not however alter Giovanni Agnelli’s long-term plans: his biggest
dream was still that of a great future for Fiat as a car manufacturer.
After a number of trips to the United States Giovanni Agnelli,
Bernardino Maraini and Guido Fornaca decided to design a “new,
great, American-style factory”.
So in 1916 construction of the Lingotto factory began, in Turin, on a still
largely agricultural site, with Giacomo Mattè Trucco as project manager.
14
Fiat Identity More than one hundred years of history
of Italian automotive industry and one of the best-known sites in Turin.
and steel industry, and the railway, electricity and public transport
sectors, becoming the exclusive supplier of buses to the SITA
company in Florence.
The Great War ushered in a decade of complex and profound social
change. And Fiat was not immune to this, with its factories being
occupied by the workers in September 1920.
In November of the same year Giovanni Agnelli was appointed
Chairman of the Board of Directors and Guido Fornaca
Managing Director.
After two years during which Fiat was forced to contain costs, reduce
the workforce and cut wages, in 1923 the new Lingotto factory
became operational and growth resumed.The Fiat 501 was launched
followed by the 505, the 510, the 519 and in 1925 the four-seater
509 made its debut.
The Fiat management understood that there was a close connection
between the expansion of the company and the development of
mass production in Italy: increased industrial output meant a higher
standard of living, social progress and higher consumer spending.
With that in mind, Fiat created Sava, a consumer credit company
whose objective was to enhance installment sales (so-called hire
purchases). For the first time advertisements also addressed women:
in posters, newspapers and corporate publications women appeared
as potential buyers. Fiat’s victories in motor racing, the crossing of the
Sahara desert by car and rallies in Latin America helped to stimulate
interest in this modern means of transport.
In those years Fiat introduced health care services for its employees,
it set up the Fiat Apprentices School and a number of associations
such as the Fiat Sports Group, holiday camps in the mountains and
the Employee Association. Many of these institutions have kept pace
with social change and are still active today.
Fiat continued to invest in Italian and foreign companies and IFI
(Istituto Finanziario Industriale) was set up to coordinate this
complex network.
In 1924 the Moscow plants became operational.They manufactured
cars and trucks under Fiat license on the basis of a 1913 project.
Valletta was faced with the task of bringing Fiat up to date with
international expansion plans and focus on the domestic market.
aid of the Marshall plan, reconstruction of plants was completed in 1948.
Mussolini’s call for autarchy forced the company to rescale its
During the thirties, trucks and commercial vehicles, including
diesel-powered vehicles, underwent considerable technological
development and the aeronautical and railway sectors also grew
significantly. Fiat produced the world’s first high volume runs of
American technology and introducing mass motoring in Italy.With the
Workforce increased from 55,674 to 66,365, and profits, which had
stagnated during the war, had reached break-even after 1943, and
were at loss in 1946, began to show an upward trend in 1948.
During the postwar revival, Fiat launched the Fiat 500 B berlinetta
self-propelled electric and diesel trains for the Italian state railways.
and giardinetta, the 1100E and 1500E models, and a car with a
1935 Senator Giovanni Agnelli suffered the loss of this son Edoardo.
Fiat 1400. For the first time ever, a standard heating/ventilation system
known as “Balilla” or “low rate” due to its reduced fuel consumption
made their debut.
In 1928 Vittorio Valletta was appointed Fiat’s General Manager. In
In 1934 the company designed a low-powered car: the 508, also
(eight liters for every 100 kilometers). Overall, a total of 113,000
units were produced, including a sports version (508 S) and a
4-speed gearbox version (71,000 units).
monocoque body, completed new in its design and mechanics, the
was installed on the 500C. In 1953 the first diesel-powered cars
Research in the field of marine engines and airplanes continued
and in 1951 Fiat produced the first jet plane: the G 80. New
opportunities emerged with the construction of a turbocharged car
1936 was the year of the debut of the Fiat 500 “Topolino”,
prototype and activities in the nuclear field. In 1956 Fiat’s G 91 won
in the world, and from that year until 1955 a total of 510,000 units
In 1955 the Fiat 600 was launched. Over 4,000,000 units of this utility
designed by Dante Giacosa. It was the smallest utility passenger car
were produced.
Fiat’s commitment to mass production was reaffirmed when in 1937
construction of the Mirafiori plant began in Turin.This plant was to
introduce the most advanced concepts of industrial organization
in Italy. Inaugurated on May 15, 1939, Mirafiori employed 22,000
workers on two shifts, a considerable number if one considers that
Fiat’s total workforce at the time numbered approximately 55,000.
Service centers, workshops and specific industrial initiatives started
to be set up in Spain, Egypt, Poland and France.
During the Second World War the production of cars was drastically
cut while there was a fivefold increase in the number of commercial
vehicles produced. During the war, carpet bombing badly damaged
Fiat’s plants but failed to paralyze production.
Both during and immediately after the war, the assistance Fiat offered
its employees helped to make up for the deficiencies of Italy’s public
services: the welfare office provided linen, shoes and firewood to
employees, while Fiat canteens distributed 100,000 meals every day.
Senator Giovanni Agnelli died in 1945 and in July 1946 Vittorio
Valletta was appointed Chairman of Fiat.
the Nato tender for the manufacture of a tactical fighter plane.
car would eventually be produced. Its launch was celebrated by a
cavalcade of multicolor Fiat 600s parading through the streets of
Turin, symbolically announcing the era of mass motoring in Italy.Two
years later the new 500 was launched and in the end 3,678,000 units
of it were produced.
During this decade the overall number of employees increased from
70,000 to 80,000, and production rose from 70,800 cars in 1949 to
339,300 in 1958.
Between 1956 and 1958 the size of the Mirafiori plant doubled and at
the end of the sixties it employed over 50 thousand workers. Meanwhile
production of tractors and construction machinery also expanded.
Operations abroad also increased, with new plants being built in
South Africa,Turkey,Yugoslavia, Argentina and Mexico. Fiat’s plant
engineering and construction operations, headed by Impresit,
experienced urging international expansion: the Kariba hydroelectric
plant on the Zambesi, the Dez dam in Iran and the Roiseires dam on
the Blue Nile in Sudan, the rescue of the ancient Egyptian temples at
Abu Simbel, and the motorway tunnel of the Gran San Bernardo.
Those were the years of Italy’s “economic miracle”. Between 1958
15
01 Fiat Identity
and 1963 gross domestic product increased at an annul rate of 6.3%;
Lancia trademark was preserved for marketing purposes.
Between 1959 and 1968 Fiat’s output increased from 425,000 to
autonomous company with Giovanni Agnelli as its Chairman and
the automotive industry was the driving force of the economy.
1,751,400 cars, and the ratio between inhabitants and cars went from
96 to 28 inhabitants per car. Exports also boomed: from 207,049 to
521,534 cars.
The production of commercial vehicles and tractors also increased
from 18,968 units to 68,200 units and from 22,637 to 52,735
units, respectively.
Workforce doubled: from 85,117 to 158,445 employees, with a more
pronounced increase in the number of blue collar workers with
respect to white collar workers.
In 1964 Fiat launched a widely popular new utility car, the Fiat 850
that was soon followed by two bigger models, the 124 and the 125:
the first Fiat cars to adopt in 1968 the rhomboid Fiat trademark.
In 1966 Giovanni Agnelli, grandson of the founder, became Chairman
of the Company.
In 1969 Fiat decided to strengthen its involvement in the South of Italy,
where the Company could already count on facilities located in Reggio
Calabria, Bari and Naples. So plants for the production of cars were
built at Termini Imerese, Cassino and Termoli, while the Sulmona, Lecce,
Brindisi and Vasto plants were to satisfy special production requirements.
The economic boom was followed by a long period of social unrest:
turmoil inside the factories reached its peak in 1969, with a total of
15 million strike hours.The tidal wave of conflict was to have drastic
it included the Fiat, Lancia, Autobianchi, Abarth and Ferrari brands.
In 1969 50% of the prestigious Ferrari company was acquired.
Fiat’s stake in Ferrari would subsequently increase to 87%.
At the end of the seventies, Fiat adopted a holding structure.The
various manufacturing operations, which had been divisions during
Valletta’s period, converged into independent companies which headed
specific Sectors. Alongside the traditional Fiat businesses represented by
Fiat Auto, Fiat Ferroviaria, Fiat Avio, Fiat Trattori, Fiat Veicoli Industriali,
other Group activities such as Fiat Engineering, Comau,Teksid, Magneti
Marelli,Telettra were also established as independent companies.
Cesare Romiti, who had joined Fiat in 1974 as Chief Financial Officer,
became Chief Executive Officer of the Fiat Group in 1980.
In these years both Fiat Ferroviaria and Iveco significantly expanded. Fiat
Ferroviaria developed cutting-edge technologies for the construction of
tilting, independent wheel railway bogeys that were to culminate in the
production of the Pendolino, a high-speed train thanks to which Fiat was
to win important tenders in many European countries. Iveco became the
international trademark for all of Fiat’s commercial vehicles operations.
Set up in 1974, the Iveco trademark included the Fiat, Om, Lancia,
Magirus and Unic brands, and from 1991 the Spanish Pegaso brand.
In 1983 the Fiat Uno was unveiled at Cape Canaveral: this car was to
represent the beginning of a new era for Fiat Auto. It was radically
repercussions on Fiat’s profitability.
innovative in its use of electronics and alternative materials and for
drive which was distinctly innovative for its time.The car was a huge
6,272,796 units will be produced.
The 127 was launched in 1971, the first Fiat car with front wheel
success and in 1974 the one millionth 127 rolled off the assembly line.
The oil crises and technological innovation led to an ever-increasing
emphasis on automated manufacturing processes: as early as 1972
Mirafiori was using 16 robots on its 132 model production line and in
the adoption of a “clean” engine, the Fire 1000. Overall, a total of
The following year Fiat Auto S.p.A. acquired Alfa Romeo S.p.A. and
its associated companies, while in 1993 it acquired the prestigious
Maserati sports brand and completed the range of automobile
brands that the Group still owns today.
1974 the Cassino plant was robotized as well. 1978 saw the introduction
The number of international agreements for the manufacture of Fiat
This system, installed in the Rivalta and Cassino plants, was designed
Fiat in other companies. Particular focus was placed on acquiring
of “Robogate”, the new robotized, flexible bodywork assembly system.
by Comau which would soon become world leader in the field.
In 1978 Lancia S.p.A. was merged into Fiat S.p.A., while the
16
In 1979, the Automobiles Sector was transformed into an
products under license continued to increase, as did interests held by
stakes in telecommunications and components companies.
In this area, a program of mergers and demergers culminated in
a major reorganization that transformed Magneti Marelli into an
the Palio, a world car designed to meet the needs of differing
companies around the world. With the increasing use of electronics,
Argentina, Poland and Turkey.
industrial holding company, which in 1987 controlled more than 60
components started to play a decisive role in the development of
private transport vehicles.
In 1989 the Fiat Tipo was elected “Car of the Year”, an award assigned
by the international press for the innovative features of this model.
Society was starting to change its attitude towards the automobile
world: this mature industrial society began to recognize the
markets. Fiat soon became the biggest manufacturer in Brazil,
In 1991, with the acquisition of the tractor and agricultural machinery
operations of Ford Motor Co, Fiat’s construction machinery sector
took on the New Holland brand and became international. In 1993
it signed an agreement with Hitachi Co Machinery Ltd and expanded
existing joint ventures. It thus became one of the biggest
manufacturers in the world, and accounted for approximately 20%
importance of a car’s environmental impact. Fiat addressed this
of total global output.
of end-of-life vehicles.
range with the introduction of the EuroTech, EuroStar and EuroCargo
issue by launching a project for the total recovery and recycling
In 1991 work began on two new plants at Pratola Serra and Melfi.
These two plants, which became operational in 1994, represented
a new revolutionary approach to industrial production.
Fiat responded to the crisis of the yearly nineties by expanding
its international presence. At the same time it undertook a major
capital increase and continued to invest significant resources in
innovation, while rigorously cutting costs and pursuing incisive
restructuring programs.
On February 28, 1996 Giovanni Agnelli became Honorary Chairman
of the Fiat Group and Cesare Romiti took over as Chairman, a position
he will hold until 1998, when Paolo Fresco replaced him. At the same
time, Paolo Cantarella was appointed Chief Executive Officer.
The Fiat Punto was the innovative car launched in those years.
Iveco strengthened its leadership position in Europe, renewed its product
new series and set up joint ventures and manufacturing operations in
India and China for the production of the light vehicle Daily.
In 2000, Fiat entered into an industrial alliance with General Motors,
a giant of the automotive industry.
Three years later, on January 24, 2003 Giovanni Agnelli passed away
after forty years at the helm of the company.
At the same time, in order to face the crisis that the Group was
going through, Fiat redesigned the scope of its operations to focus on
its automotive operations, thus selling certain non-strategic activities
such as the Aviation and Insurance Sectors.
On May 27, 2004 Umberto Agnelli, who had taken on the reins
of the Group after his brother’s death, passed away.The Group’s
top management now featured Luca Cordero di Montezemolo
Designed to be a European car, in 1995 it was elected Car of the
as Chairman, John Elkann as Vice Chairman and Sergio Marchionne
one of the cars that had been on the market for the longest time.
a profound restructuring plan.
Year In 1998 the Panda celebrated its 18th birthday and became
Beginning in September 1997, the Parent Company left its offices
in Corso Marconi to move to the Lingotto building, which is part
of a complex that had in the meantime been turned into a fair
and conference center.
At the end of the nineties industrial competition became more
aggressive in Western European markets. Fiat responded to the incursion
of South East Asian products into the European market by returning to
the Company’s original strategy of focusing on emerging markets.
The plants in Brazil and Argentina were expanded and Fiat launched
as Chief Executive Officer. The new top management embarked on
The Fiat Panda was elected “Car of the Year” and Ferrari won
the sixth Constructors’ Championship and the fifth Drivers’
Championship in a row.
Rigorous cost-containment measures and an incisive industrial
relaunch enabled the Group to reach operating break even in 2004
and post an income in 2005.
The termination of the Master Agreement with General Motors,
which led to the unwinding of all joint ventures, is recent history. It was
February 13, 2005 and Fiat Auto was once again a fully Italian company.
17
01 Fiat Identity
Organization
STRUCTURE OF THE GROUP
One of the pioneers of the car industry, Fiat built its first car in 1899.
markets automobiles, trucks, tractors, agricultural equipment, construction
commercial vehicles and many of its models have marked important
of experience in the automotive field. Fiat designs, manufactures and
equipment, engines and vehicle components, and production systems.
The Fiat Group performs its automotive manufacturing and
financial service activities in approximately 190 countries.
The structure of the Group is the result of its refocusing on the
automotive business started in 2003 and continued in 2004.
Starting in 2005, reporting of Group activities was redefined by
Business Areas as follows:
Automobiles (Fiat Auto, Maserati, Ferrari, Fiat Powertrain Technologies)
Agricultural and Construction Equipment (CNH)
Commercial Vehicles (Iveco)
Components and Production Systems (Magneti Marelli,Teksid, Comau)
Other Businesses (Services - Business Solutions, Publishing and
Communications - Itedi)
(*)
18
FIAT AUTO
Fiat is a huge industrial Group with more than one hundred years
Since then it has produced more than 88 million cars and light
milestones in car history.
Fiat Auto operates in international markets through its four brands
Fiat, Alfa Romeo, Lancia and Fiat Veicoli Commerciali.
To round out the range of products and services offered, Fiat Auto’s
activities include sales financing and a broad array of support
programs for customers and the dealer network.
On eleven occasions Fiat Auto models have won the Car of the Year
Award, the car industry’s most prestigious recognition worldwide.The
award has been won eight times by Fiat, twice by Alfa Romeo and
once by Lancia.
The continuous, strong thrust toward product renewal of the Fiat
Auto brands calls for the launch of 29 vehicles, including new models
and restyling, in the 2005-2007 period.
In March 2006, Fiat’s stake in CNH rose from 84% to approximately 90% upon conversion of the Series A Preference Shares into Common Shares.
Fiat Identity Organization
MASERATI
FERRARI
Maserati is an all Italian brand with a glorious sporting history:
The first Ferrari was built in Maranello in 1947 at the company
exclusive cars built in short production runs, outstanding in terms
Ferrari's mission remained the same: to build unique sports cars
since the very beginning it has been manufacturing fascinating and
of prestige, technological innovation, styling and performance.
Maserati was founded in Bologna in 1914, and in 2004 it celebrated
its 90th anniversary by returning to the racing circuits and taking part
Enzo Ferrari had transferred from Modena five years earlier.
destined to represent the excellence of Italian cars, whether on the
road or on racing circuits.These achievements were reinforced by
sales results and the vast number of fans that follow the races.
in the international GT FIA championship with the brand-new MC12.
Annual production is pitched at a self-imposed limit of about
S.p.A. to Fiat Partecipazioni S.p.A. (a holding company owned directly
and Modena plants have recently been the scene of a significant
April 1, 2005 which comprises the group of companies producing
by Renzo Piano in 1997, there is now one of the most modern,
In April 2005, ownership of Maserati was transferred from Ferrari
by Fiat S.p.A.). As a consequence a new entity is operational from
and selling Maserati cars.
five thousand cars to ensure maximum quality.The Maranello
technological upgrade. So alongside the wind-tunnel designed
worker-friendly plants in the world.
19
01 Fiat Identity
FIAT POWERTRAIN TECHNOLOGIES
global brands: agricultural equipment is now sold under the
Fiat Powertrain Technologies is the new Sector to which the Group
Case IH and New Holland brands and construction equipment
has transferred the operations (automobile engines and transmissions)
under the Case and New Holland brands.
that were returned to Fiat’s control following the termination of the
CNH also offers financial services to support both customers
Master Agreement with General Motors in May 2005. From 2006,
and dealers.
Fiat Powertrain Technologies will also include the engine and
IVECO
transmission businesses of Iveco, C.R.F. and Elasis.
Iveco was formed in 1975 by the merger of five leading European
CNH
brands, which were joined by others over the years.Today Iveco is
The first Fiat branded construction equipment vehicle was
one of the world's leading companies in the road transport sector.
manufacturers of agricultural tractors, combine harvesters, hay and
6 tons GVW), medium (6 - 16 tons GVW) and heavy (above 16
manufactured in 1919.Today CNH is one of the world’s leading
Iveco designs, manufactures and markets a wide range of light (2.8 -
forage equipment and grape harvesters and is the third producer
tons GVW) commercial vehicles for on-road and off-road use. It also
in the construction equipment business.
produces buses under the Irisbus brand, and firefighting vehicles and
CNH was formed in 1999 by the merger of two legendary brands:
special purpose vehicles under the Iveco, Astra and Magirus brands.
New Holland NV and Case Corporation.
Iveco also provides financing services to its dealer network and rental
In 2005 CNH reorganised its operations to focus on its four distinct
services to its customers.
2005 RESULTS
Net revenues
(in millions of euros)
Fiat Auto
Maserati
Ferrari
Fiat Powertrain Technologies
Components (Magneti Marelli)
Metallurgical Products (Teksid)
Production Systems (Comau)
Services (Business Solutions)
Publishing and Communications (Itedi)
Holdings companies, Other companies
and Eliminations
Total for the Group
20
2005
Trading profit
2004
2005
Operating result
2004
2005
Total Operating assets
2004
2005
2004
19,533
19,695
(281)
(822)
(818)
(1,412)
16,231
15,967
1,289
1,175
157
138
157
136
936
837
10,212
9,983
698
467
611
399
17,860
15,224
4,033
3,795
162
165
127
148
2,363
2,228
533
1,966
9,489
1,036
409
–
9,047
910
1,573
1,711
397
407
752
976
(85)
26
415
(168)
–
371
45
(39)
35
41
42
16
(85)
4
289
(171)
–
347
27
(42)
7
34
40
(8)
11
13
235
2,362
7,510
671
312
–
9,797
576
30
1,091
1,042
9
186
161
(4,269)
(2,471)
(230)
(154)
1,891
(63)
46,544
45,637
1,000
50
2,215
(585)
341
636
915
1,784
50,701
48,564
MAGNETI MARELLI
BUSINESS SOLUTIONS
Founded in 1919 by Fiat and the Ercole Marelli company, in 1967
Business Solutions provides services in the areas of personnel
transformed it into a worldwide center for automotive components.
to Fiat Group companies.
Magneti Marelli was bought out entirely by the Fiat Group that
Magneti Marelli produces automotive components for lighting
systems, exhaust systems, suspensions and shock absorbers, engine
control units and electronic systems.
administration, administrative and corporate finance consulting, mainly
ITEDI
Fiat entered publishing in 1926 when the Group set up Editrice La
Thanks to this wide range of activities Magneti Marelli is a global
Stampa for the publishing of the Turin-based newspaper La Stampa
Asia, assuring timely delivery of products and services to automotive
1980 marked the founding of Itedi, Italiana Edizioni S.p.A., that
supplier, well established in Europe, North and South America and
manufacturers throughout the world.
TEKSID
Teksid was founded in 1978, drawing together over 60 years of
(founded in 1867).
absorbed all of Fiat’s publishing and communication activities.The
Company operates through Editrice La Stampa S.p.A. and, as regards
sale of advertising space, through Publikompass S.p.A.
experience accumulated by Fiat in the metallurgical field, the origins
of which stretch back to the early 1900s.
Teksid supplies engine blocks, cylinder heads and other cast-iron
components for engines; cast-iron components for transmissions,
gearboxes and suspensions and magnesium bodywork components.
From its founding until today the Company has grown to become
one of the world leaders in its field.
COMAU
In 1978, Comau combined under a single corporate umbrella the
machine tool and production system activities that Fiat and other
companies in the Turin area had developed since the beginning of
the Thirties.
Comau broadened its range of services and products to become
one of the few global suppliers in the motor industry automation
field.The company is world leader in welding systems.
The Sector guarantees customers a comprehensive service: product
and process engineering, production systems, production start-up of
machinery lines, and maintenance to ensure the correct and constant
operation of manufacturing plants.
21
01 Fiat Identity
The Fiat Group adopted and abides by the Corporate Governance
APPLICATION OF THE CODE OF CONDUCT
Code of Italian Listed Companies, supplemented and amended as
Nearly three years after the current Group Code of Conduct
adopted is in line with the rules imposed for listing on the NYSE,
the dedicated commitment of those responsible for enforcing
necessary to ensure that the corporate governance system it
including the relevant sections of the Sarbanes-Oxley Act of 2002,
and the characteristics of the Group.
The corporate governance structure is comprised by a system
of direction and control and the stockholders meeting. Pursuant
to law, external auditors are responsible for independent audits.
came into effect, satisfactory results have been realized thanks to
and disseminating it, as well as the response of employees.
After the Code was approved by the Boards of Directors of
Group Companies, meetings with executives and professionals,
publication in house organs, and other initiatives, intense training
and informational activities continued both inside and outside the
Fiat adopted a system of direction and control based on a Board
Group. Institutional training courses were organized by Fiat in Italy.
The Board of Directors comprises three executive directors and
the Code of Conduct, Corporate Governance, and Internal
of Directors and a Board of Statutory Auditors.
twelve non-executive directors - that is, who do not hold delegated
authority or perform executive functions in the Company or the
Group -, eight of whom are independent.
Company documentation dedicated to the issues addressed by
Control was added to the courses for new university graduates,
professionals, and executives. The 512 participants at the 15 courses
organized in 2005 expressed their appreciation for the usefulness
The qualifications of the independent directors became more selective
of the featured topics by assigning them a ranking of 4.4 (scale
insignificance, during the previous three years, of investment, economic
New techniques were also created to monitor compliance with
in 2005 and are reviewed annually.They are based on the absence or
or other relationships with the Company, its executive directors and
managers with strategic responsibilities, its controlling companies or
subsidiaries, or kinship ties to the executive directors of these
companies, such as to compromise their independent judgment.
The Board of Directors has established a Nominating and
Compensation Committee and an Internal Control Committee.
from 1:5, 1=minimum, 5=maximum).
the Code of Conduct.
The “Whistleblowings Management Procedure” came into effect
at the beginning of 2005. It is intended to govern the operating
processes of receiving, filing, and responding to violations of the
Code of Conduct reported by any in-house (employees) or external
individual (suppliers, customers, and others).This procedure, which
REPORT ON CORPORATE GOVERNANCE
WHISTLEBLOWINGS MANAGEMENT PROCEDURE
Investor Relations section of the Group website www.fiatgroup.com
and downloaded from the Group website www.fiatgroup.com
The Annual Report on Corporate Governance is available in the
The Whistleblowings Management Procedure can be consulted
CODE OF CONDUCT
The Code of Conduct is brought to the attention of all employees
through company bulletin boards, the Group Intranet portal, and
the offices of Human Resources, Senior Counsel, Compliance
Officers.The Code of Conduct can be consulted and downloaded
from the Group website www.fiatgroup.com
22
Fiat Identity Corporate Governance
was approved by resolution of the Fiat S.p.A. Board of Directors
on December 23, 2004 and subsequently distributed to all Fiat
Whistleblowings receipt
Group Sectors and Companies, reflects the provisions of the Code
of Conduct, the Compliance Program pursuant to Legislative Decree
231/2001, and the Sarbanes - Oxley Act of 2002 on whistleblowing.
An ad hoc information system allows for the management and filing
of reports to: the Compliance Officer in each Sector, the Compliance
Officer of Fiat S.p.A., and Corporate Officers, such as the Internal
Control Committee and the Board of Statutory Auditors.The
principal roles defined by the procedure are:
the Compliance Officer of Fiat S.p.A.
the Board of Statutory Auditors
the Internal Control Committee.
The first decides on the validity of the reports, sharing his
assessment of investigations and related measures with the
Investigation and review
Whistleblowings Committee, which is comprised of the Fiat S.p.A.
Compliance Officer, the Senior Counsel, and the head of Human
Resources. The Board of Statutory Auditors and the Internal
Control Committee are in turn informed by the Compliance
Officer during periodic meetings, who reserve the right to request
additional information regarding the financial statements, accounts,
internal audits, and independent audits. In 2005, 62 reports were
received by the Fraud Audit Office of Fiat Revi, the Group’s internal
audit company. Sixteen per cent of the reports led to disciplinary
actions according to the gravity of the violations and in compliance
with the national collective bargaining agreement (“CCNL”) and
Resolution
applicable local laws. Another 16% led to actions reinforcing the
Internal Control System. The principal types of violations included
cases of Group employee conflicts of interest in supplier companies,
anomalies in the management of travel expenses, and in consulting
agreements.
A total of 62 violations (39 in 2004) of the Code of Conduct were
not detected as a result of complaints but emerged from investigations
performed by Internal Audit or the Compliance Officers of Group
Sectors. Appropriate measures were taken in response to those
violations, in compliance with the CCNL and applicable local laws.
In 2005, Fiat Revi performed audits of compliance with the SarbanesFiat Identity Corporate Governance
23
01 Fiat Identity
Oxley Act of 2002.These included 34 audits of the integrity of the
EVOLUTION OF THE COMPLIANCE PROGRAM
control environment of leading Group Companies, in addition to
Recent statutory and interpretative evolutions regarding the
At the beginning of 2005, a method for analyzing travel expenses
corporate law, in the matter of management and coordination of
two business ethic audits (31 in 2004).
was implemented in order to identify employee conduct in
violation of Company policy.The Group’s internal audit company
implemented a software model, handling its design and creation
of the prototype. Special attention was dedicated to research of
indicators and identification of anomalous trends, analyzing a large
number of cases over a sufficiently broad period of time (June
2004 - March 2005) in order to spot any patterns.The results that
were produced, discussed, and shared with the Human Resources
Departments of the sampled Companies made it possible to refine
the model and automate the phases of data analysis and reporting
of anomalies.The automated system of analysis is currently operative
for six sample companies, with processing on a monthly basis.The
procedures for integration of this system with company databases
offenses envisaged in Legislative Decree 231/01 and the reform of
groups, necessitated updating both the premises of the Fiat S.p.A.
Compliance Program pursuant to Legislative Decree 231/2001,
approved by resolution of the Board of Directors on February 28,
2003 - which were no longer deemed sufficient for the adequate
prevention of the offenses envisaged in that decree - and the policy
role of Fiat S.p.A. within the Group, in compliance with the
decision-making autonomy of the Sectors and Companies. On
February 28, 2005, the Board of Directors of Fiat S.p.A. thus
approved the new Compliance Program pursuant to Legislative
Decree 231/01, as well as the Group Guidelines. The Fiat S.p.A.
Compliance Program was disseminated in the form of a specific
internal memorandum to all Company employees. The Group
Guidelines were disseminated by the Fiat S.p.A. Compliance Officer
to all Sector Compliance Officers. Furthermore, introduction of
the offenses of market abuse (manipulation and insider trading)
led the Group to develop targeted analyses to assess the definition
of appropriate procedures for updating the Program. These analyses
are nearing completion by Fiat Finance S.p.A, the company responsible
for centralized cash management services and financial assistance
for Group Companies and Fiat S.p.A. Adoption of Compliance
Programs by the Sector Parent Companies of the Group and
updating of previously approved Programs was completed in 2004
are currently being analyzed in order to extend these analytical
methods to other Group Companies, as well as automate the entire
data entry process.
and early 2005.
COMPLIANCE PROGRAM PURSUANT TO
LEGISLATIVE DECREE 231/2001
An excerpt from the Compliance Program pursuant to Legislative
Decree 231/2001 can be consulted and downloaded from the
Group website www.fiatgroup.com
In order to bring training into compliance with the provisions of
Group Company Compliance Programs, revision of the self-paced
online course was started to include newly envisaged offenses
24
(terrorism, placing or holding a person in conditions of slavery
IDENTIFICATION AND ASSESSMENT OF RISKS
or servitude, slave trade, and market abuse).
Consistently with the Guidelines for the Internal Control System,
The purpose of this uniform distribution is to increase employee
operating, financial and compliance risks. Its reference framework,
The course will be offered throughout the Group in 2006.
awareness of the problems addressed in the Decree.The course
will be offered to all executives, as well as the professionals and
white collar employees involved in activities considered at risk for
commission of the offenses envisaged in Legislative Decree 231/2001.
the Fiat Group initiated a periodic process of surveying strategic,
consistently with the COSO Report – Enterprise Risk Management
(ERM) – Integrated Framework of September 29, 2004, is illustrated
in the Fiat Group ERM Manual distributed to the Sectors and
Companies at the end of 2004.The Enterprise Risk Management
process potentially involves all the companies of the Group, giving
priority to the companies of relevance for compliance with the
Sarbanes-Oxley Act of 2002, and asks the management of every
Sector or Company to identify and assess the risks in its own area of
responsibility on the basis of a Group risk model.The ultimate aim of
this process is to support implementation of actions that will mitigate
the risks threatening achievement of the company targets set by the
organization. In 2005, the Fiat Group set up a computer platform for
automating the process of collecting and analyzing Group risks.
GUIDELINES OF THE INTERNAL CONTROL SYSTEM
The Guidelines of the Internal Control System can be consulted and
downloaded from the Group website www.fiatgroup.com
25
02
Economic
Responsibility
28
Group Highlights
30
Financial Performance
32
Stockholder protection
30
31
34
36
40
Customers
47
Customer relations
55
Communication
Stockholders
40
Stockholder base
48
Relations with stockholders
Lenders
56
58
Sales volumes and market share
Customer loyalty and satisfaction
Litigation with dealers and customers
Suppliers
36
Volume and uses of debt and bonds
58
Relationships with suppliers
37
Low-rate loans
60
Business Ethics
37
39
39
39
Rating
Human Resources
Labour cost
59
61
Purchasing processes
Litigation with suppliers
Incentive systems
27
02 Economic Responsibility
Group Highlights
2005
(in millions of euro)
Net revenues
Operating result
Income/(loss) before taxes
Group interest in net income/(loss)
(ordinary, preference, and savings) (in euros) (1)
Diluted earnings per share
(ordinary, preference, and savings) (in euros) (1)
Investments in tangible and intangible assets
of which: Capitalised R&D costs
(net of vehicles sold under buy-back commitments)
R&D expenses (2)
Total assets
Net debt
of which: Net industrial debt
Stockholders’ equity before minority interest
Group interest in stockholders’ equity
Employees at year-end
(1)
(2)
28
45,637
2,215
(585)
(number)
50
2,264
(1,629)
1,331
(1,634)
1,420
Net income/(loss) before minority interest
Earnings per share
46,544
1,000
Trading profit
2004
(1,579)
1.250
(1.699)
3,052
2,915
1,558
1,791
62,454
62,522
3,219
9,447
1.250
656
18,523
9,413
8,681
173,695
(1.699)
753
25,423
4,928
4,304
161,066
Effective January 1, 2005, the Fiat Group adopted the International Financial Reporting Standards (IFRS). The comparative data for 2004 have thus been restated in accordance with
the new accounting standards. For additional information on the impact of their adoption on 2004 figures that had already been published, reference is made to the Appendix 1 of
the Consolidated Financial Statements.
In accordance with IAS 33, the dilutive effects of the Mandatory Convertible Facility have not been included in the determination of earnings per share for 2004, as there was a net
loss for the period.
Includes capitalised R&D costs and costs charged directly to operations for the fiscal year.
Economic Responsibility Group Highlights
SELECTED DATA BY REGION
Number of
Companies (*)
Italy
Europe excluding Italy
North America
2005
Total
(*)
2004
155
173
80
89
280
40
Mercosur
Other regions
Number of
Facilities
99
654
305
43
104
714
Number of
R&D Centres (*)
Revenues
2005
2004
2005
2004
58
56
32
33
56
28
20
27
189
54
28
19
23
180
52
17
10
9
120
2005
2004
53
13,078
14,903
17
6,048
6,020
10
9
122
18,518
17,646
4,364
4,536
46,544
3,195
3,873
45,637
Fiscal 2004 figures are different from those published until now due to the impact of changes in the scope of consolidation resulting from the adoption, from January 1, 2005, of
International Financial Reporting Standards (IFRS).
Fiat Group recorded revenues of 46.5 billion euros in 2005, up 2%
Income before taxes was 2.3 billion euros, compared with a loss of
improvements, apart from a slight decrease (-0.8%) at Fiat Auto as a
an increase in operating result (+2.8 billion euros), the unusual
from 45.6 billion euros in 2004. All automotive Sectors posted
recovery in car sales volumes in the last quarter was insufficient to
offset the trend of the first nine months, when sales slowed down
ahead of new model launches.
Group trading profit for the year came in at 1 billion euros, compared
with 50 million euros in 2004.The 950 million euro improvement in
trading profit reflected a 541 million euro reduction in trading losses at
1.6 billion euros in 2004.The 3.9 billion euro improvement reflected
financial income of 858 million euros associated with the capital
increase to service the Mandatory Convertible Facility and a
decrease in net financial expenses.
Consolidated net income (Group and third parties) amounted
to 1.4 billion euros, against a loss of 1.6 billion euros in 2004.
Fiat Auto and the positive performance of all other industrial Sectors,
Net industrial debt amounted to 3.2 billion euros, showing a
percentage of revenues). In particular, trading margins were as follows:
reflecting the conversion of the Mandatory Convertible Facility, the
which met or exceeded their trading margin targets (trading profit as a
Fiat Auto -1.4%, in line with the target set; CNH 6.8%, against a target
of 6/6.5%; Iveco 4.4%, higher than its 4% target; the Components and
Production Systems business area 3.7%, higher than its 3% target.
decrease during the year of approximately 6.2 billion euros, mainly
repayment of financial debt related to the Italenergia Bis transaction,
and the receipt of the General Motors indemnity following the
settlement of the Master Agreement.
Operating result for the year was positive by 2.2 billion euros,
The Group’s cash position at December 31, 2005 was approximately
The year benefited from the improvement in trading profit and,
utilisation of 1.9 billion euros of cash for the repayment of bonds.
compared with an operating loss of 585 million euros in 2004.
more particularly, from the gain of 1.1 billion euros from the
7 billion euros, up from 6.1 billion euros at January 1, 2005, after the
General Motors settlement and the gain realised on the sale
of the investment in Italenergia Bis (878 million euros).
Economic Responsibility Group Highlights
29
Stockholders
FINANCIAL PERFORMANCE
Performance of Fiat stock with respect to Mibtel and Eurostoxx Auto indexes in 2005
(1/1/05=100)
The Fiat Company is listed on the Italian
Stock Exchange (Borsa Italiana), and on the
New York Stock Exchange (NYSE) through
ADRs (American Depositary Receipts).
An ADR is a tradable receipt, similar to a
stock certificate, issued by a US depository
bank, and represents the stock of a non-US
company, the American Depositary Share
deposited with the same bank.
Stock markets worldwide posted strong
gains in 2005, except for the New York
Stock Exchange, which rose by only 3%.
In Italy the S&P/MIB grew by 15.5%, while
Performance of Dow Jones, Mibtel, Nasdaq and Eurostoxx Auto indexes in 2005
(1/1/05=100)
the Vienna (+50%), Zurich (+33%),
Frankfurt (26%), and Paris (+22%) stock
exchanges stood out at the European level.
During the year, the European automotive
market staged a recovery from 2004
levels, with the automotive sector index
(Dow Jones Eurostoxx Auto) posting
an increase of 18%.
Against this background, Fiat stock was
up by 23.5%. The market rewarded the
successful resolution of all its principal
strategic and financial issues (relations
Highlights per share
the Mandatory Convertible Facility),
Earnings per share (ordinary, preference and savings) (1)
with General Motors, Italenergia Bis, and
the successful roll-out of important new
models, the announcements of targeted
industrial agreements with international
partners, and achievement of its financial
targets for 2005.
(in euros)
Diluted earnings per share (ordinary, preference and savings)
(1)
Official price per share:
Ordinary shares
Savings shares
Economic Responsibility Stockholders
(1)
(1.699)
2005
1.250
1.250
In accordance with IAS 33, the dilutive effects of the Mandatory Convertible Facility have not been included in the
determination of earnings per share for 2004, as there was a net loss in the period.
Preference shares
30
2004
(1.699)
12.30.02
12.30.03
12.30.04
12.30.05
4.348
3.704
3.976
5.935
7.704
4.183
6.142
3.957
5.897
4.243
7.333
6.558
STOCKHOLDER BASE
At the end of 2005, the number of ordinary shares amounted to
1,092,246,316 with respect to 800,417,598 ordinary shares at the
end of 2004. In fact, on September 15, 2005 the Board of Directors
Fiat stock is included in 44 Stock Exchange indexes in Europe
and globally.The weight of Fiat stock on some of them is illustrated
in the following table:
resolved on a capital increase to service the Mandatory Convertible
MILAN MIB TELEMA
of 291,828,718 ordinary shares at the price of 10.28 euros each.
S&P/MIB INDEX
Facility that fell due on September 20, 2005, through the issuance
Pursuant to the last section of article 2441 of the Italian Civil Code,
the lending banks subscribed the new shares on September 20, 2005
through a set-off against the total debt of 3 billion euros owed to them.
Extinguishment of the Mandatory Convertible Facility contributed to
a reduction in debt and simultaneously strengthened the Group’s
capital structure.
Major stockholders: stockholders that possess more than 2%
of total ordinary shares (situation as of February 28, 2006)
1.17%
MILAN MIB30 INDE
1.25%
BLOOMBERG EUROPE
0.09%
1.37%
BE500 AUTOS INDE
4.41%
DJ EURO STOXX €
0.16%
DJES Aut&Prt € P
3.93%
S&P EUROPE 350 I
0.08%
S&P EURO INDEX
0.18%
S&P EUR 350 AUTO
3.85%
FTSEUROFIRST AUT
5.06%
S&P GLOBAL 1200
0.03%
FTSEUROFIRST 300
0.21%
The Fiat Group’s commitment to Social Responsibility also aims
at making the Fiat stock attractive to those categories of Funds particularly US and British ones - which invest in companies on
the basis of their corporate social responsibility (CSR).
(*) Including 0.4% of treasury stock held by Fiat S.p.A.
Stockholder distribution by investment style
Stockholder distribution by geographical area
31
STOCKHOLDER PROTECTION
In compliance with Governance instruments and Fiat’s adoption of
the principles of the Corporate Governance Code of Italian Listed
Companies (Preda Code), supplemented and amended as necessary,
the Fiat S.p.A. Board of Directors is composed of an adequate number
of independent directors. In particular, the Board is comprised of three
executive directors and twelve non-executive directors - that is, who
The Nominating and Compensation Committee is currently made
up of five directors, three of whom are independent.
The Committee is entrusted with the task of submitting proposals
to the Board, in the absence of the interested parties, with respect
to the individual compensation plans of the Chairman and the Chief
Executive Officer and other directors vested with particular offices.
do not hold delegated authority or perform executive functions in the
The Internal Control Committee is made up of at least three
with a majority of independent directors implements one of the
Board of Directors in discharging its own duties by providing it with
Company or the Group -, eight of whom are independent. A board
fundamental rules of the NYSE, even though non-US issuers are not
required to abide by this rule, and it is essential to protect the interests
of stockholders, particularly minority stockholders, and third parties.
The Board of Directors established a Nominating and
32
Compensation Committee and an Internal Control Committee.
independent directors and is entrusted with the task of assisting the
advice and proposals concerning the reliability of the accounting
system and financial information, the Internal Control System, the
choice and supervision of the activities performed by external
auditors and the supervision of internal audit activities.
Composition of the Board of Directors and qualifications of each director
Office held
Members
Chairman
Chief Executive Officer
Sergio Marchionne
Vice Chairman
Andrea Agnelli
Director
Tiberto Brandolini d’Adda
Director
Director
Director
Director
Director
Director
Director
Director
Director
* A
nonexecutive
independent
Nominating and
Compensation
Committee
*
John Elkann
Director
Director
executive
Internal
Control
Committee
*
Angelo Benessia
Flavio Cotti
Luca Garavoglia
Gian Maria Gros-Pietro
Hermann-Josef Lamberti
Virgilio Marrone
Vittorio Mincato
Pasquale Pistorio
Daniel John Winteler
Mario Zibetti
placed in this column shows that the corresponding director is a member of the Committee listed at the top of the column.
Number of meetings held in
2004
8
6
9
Board of Directors
Internal Control Committee
2005
Nominating and Compensation Committee
5
10
5
33
RELATIONS WITH STOCKHOLDERS
Fiat maintains a constant dialogue with its Stockholders and
Institutional Investors, pursuing a policy of open communication
with them through its Investor Relations function. Over the course
of the year, the Investor Relations function organizes presentations,
live or through conference calls, after the regular publication of
Group results or other events requiring direct communications with
the market. Moreover, the program includes several seminars that
provide a more in-depth understanding of the operating performance
was as follows:
4 conference calls and webcasts for the presentation of quarterly
results and one conference call specifically dedicated to the
transition to the International Accounting Standards (over 150
participants on average)
Meetings at the principal European financial centers (Milan,
London, Paris, New York, Boston, Zurich)
5 group meetings
and strategies of the principal Group Sectors, as well as meetings and
Meetings with rating agencies (in collaboration with the Capital
community and the Group’s top management.
Actively participated in 6 conferences held by financial institutions
roadshows that permit a direct relationship between the financial
More information is available at the Group’s institutional website
www.fiatgroup.com.The Investor Relations section provides
historical financial data, institutional presentations, periodic
publications, and real time updates on Fiat stock.
Fiat stockholders may also contact:
For holders of Fiat shares:
Toll-free telephone number in Italy: 800-804027
E-mails: [email protected]
[email protected]
For holders of ADRs:
Toll-free telephone number in the USA and Canada: 800 900 11 35
Outside the USA and Canada: 781 575 43 28
Website: www.adr.com
34
In 2005, communication to stockholders and the financial community
Markets function)
Over 80 press releases issued
10/15 calls a day (analysts and stockholders)
About 100 one-on-one meetings.
Conference calls participants
Investor Relations: 2005 activities
Day
Event
19
Borsa Italiana Investor Conference
1-3
Motorshow Geneva, Switzerland
CEO/IR
Presentation
11
Italian Investor Day, Borsa Italiana, N.Y., USA
CFO/IR
Presentation
May
10
2005 Q1 Results Conference Call
CEO
June
16
Deutsche Bank 9th High Yield
Month
January
February
March
April
14 - 15
28
30
20
19
29 - 30
July
August
September
October
November
December
8
Speaker
Type of event
Bank Am Bellevue, Flims, Switzerland
CEO/IR
Presentation
2004 FY Results Conference Call
CEO
Conference Call
IAS/IFRS First Time Adoption Conference Call
Deutsche Bank, High Yield Conference, London, UK
UBM IX Italian Conference, Firenze
Conference & Credit Products, London
The 8 Annual Morgan Stanley European
IR
Presentation
CFO
Conference Call
IR
Presentation
Conference Call
CFO/IR
Presentation
IR
Presentation
IR/Other
Presentation
th
Automotive Conference, London
Mediobanca Italian Investors Conference, Milan
CEO/CFO/IR
Group Meeting
14
Analysts’ Meeting, London
IR/Other
30
Bank Am Bellevue, Zurigo, Switzerland
CEO/IR
Group Meeting
Frankfurt, Germania
CEO/IR/Other
Presentation
(Borsa Italiana & Nomura)
IR
Presentation
28
13 - 14
IAA Automotive Conference 2005,
4
Tokyo Italian Investor Conference
11
Mediobanca Conference, Naples
17
Paris Group meeting
8 - 13
US Roadshow
26
(Banca Akros & CM CIC Securities)
CEO
Fax
E-mail:
Website:
Conference Call
CEO/IR
Group Meeting
IR
Group Meeting
CEO
CEO/IR
Investor Relations - Contacts
Tel.
Group Meeting
Conference Call
Presentation
+39 011 00 62709
+39 011 00 63796
[email protected]
www.fiatgroup.com
35
Lenders
VOLUME AND USES OF DEBT AND BONDS
At December 31, 2005 consolidated net debt totalled 18,523 million
euros, for a decrease of 6.9 billion euros with respect to 25,423
million euros at December 31, 2004. During 2005, a number of
financial transactions were carried out that led to a gradual reduction
in the net debt of the Fiat Group and more than offset foreign
currency translation differences (mainly referring to debt of financial
services companies denominated in dollars and reais).
More specifically, the net debt of the Group decreased as a result
of the following transactions:
the collection of 1.56 billion euros from General Motors (partially
reduced by the effect of the consolidation of the powertrain
activities amounting to approximately 400 million euros);
the reimbursement of approximately 2 billion euros in financing
that had previously been extended by central cash management
to the financial services companies sold by Iveco to Barclays;
Debt
- Asset-backed financing
- Other debt
Other financial liabilities (1)
Other financial assets
Current securities
(1)
Cash and cash equivalents
Bond debt broken down by maturity
million euros to the bank shareholders of Italenergia Bis that
offer to issue 6.625% Senior Notes having a face value of 1 billion
euros and maturing on February 15, 2013, whose price was set
on February 7, 2006 at face value.
On February 24, 2006, CNH announced that its wholly owned
subsidiary, Case New Holland Inc., issued senior notes with a face
36
Economic Responsibility Lenders
353
5,767
(3,219)
(9,447)
(1) This item includes the asset and liability fair values of derivative financial instruments.
was reimbursed. In addition, the payable of approximately 600
communicated on February 10 that it had successfully closed its
556
6,417
851
(15,976)
million euros provided by Citigroup and a restricted pool of banks
Following its announcement on January 30, 2006, Fiat
454
(203)
(15,304)
shareholding owned by the Fiat Group, the financing of 1,147
be mentioned:
(189)
(22,017)
- Financial Services
- Industrial Activities
1.8 billion euros. Following the sale to EDF of the 24.6%
with respect to the first months of 2006 the following should
(10,174)
(15,551)
(32,191)
(25,423)
the completion of the Italenergia Bis transaction for approximately
No significant bond issues were carried out in 2005, while
(10,210)
(25,761)
(18,523)
to 3 billion euros;
was eliminated.
At 12.31.2004
Net debt
the conversion of the Mandatory Convertible Facility amounting
purchased 14% of the shares of Italenergia Bis from Fiat in 2002
At 12.31.2005
Bond debt broken down by currency
value of $500 million maturing in 2014 (fixed annual interest
rate of 7.125%) to professional investors.The transaction was
completed at the beginning of March 2006.
Bond debt maturity
RATING
In January 2006, Fitch Ratings and Moody’s changed their outlook
on Fiat S.p.A. from negative to stable, as Standard & Poor’s Rating
Services had already done in August 2005.
S&P
Moody’s
Fitch
Short-term
Long-term
Outlook
Not prime
Ba3
Stable
B
B
BB-
Stable
BB-
Stable
LOW-RATE LOANS
In its use of public funds, the Fiat Group has always pursued policies
that promote local development by helping build a sound scientific,
technological and entrepreneurial foundation in the so-called
“economically depressed areas and those suffering from industrial
decline”. In doing so, the Group has steadfastly implemented its
programs in full compliance with mandatory legal requirements
and EU guidelines, reaching the objectives envisaged by the various
types of financing facilities provided to it.
Definition and coordination of financing projects presented by Fiat
Group companies are managed at the central level.
During 2005, a major effort went into research and development
programmes, for which the Fiat Group incurred costs totalling
1,558 million euros (1,791(1) million euros in 2004) at the
consolidated level.
For its most important R&D projects, the Group has applied for
financing from public agencies, as provided for by current legislation.
2004
2005
(1)
Fiat Group
R&D expenses (1)
Low-rate loans
and grants
1,558
70
1,791
74
Including R&D capitalised and charged to operations.
37
In the same period, multi-year research and innovation projects
RESEARCH ACTIVITIES
euros in low-rate loans and 50 million euros in grants, for a
focuses on highly specialized issues fundamental to improving
approved by Italian and European institutions received 20 million
total of 70 million euros.
Financing facilities for research and development projects
broken down by Sector
Most of the Group’s research activity is conducted in Italy. It
the technological know-how and competitive capacity of the
industrial Sectors.
In 2006, the Fiat Group plans to concentrate on strategic
research in technological and scientific fields through National
Research Programs supported by the Italian Ministry of
Education, Universities and Research (MIUR).
In particular, research activities will aim at a safer and more
sustainable mobility in terms of both energy and the environment.
These programs concern:
rethinking the entire vehicle in terms of architecture, ecological
propulsion systems, auxiliary systems, and advanced materials;
a flexible, efficient, and ecologically compatible production
system;
road, computer, and online infrastructure integrated with
vehicles to improve their environmental impact, safety for users
The Group also made significant investments in depressed areas and
In 2005, Fiat Group companies participated in the National
grants totalling 30 million euros.
described above.Thirteen of these projects were approved,
areas suffering from industrial decline. Projects in such areas received
Specifically, these grants financed Iveco’s investments in modernizing
and expanding its plants in Foggia.
Outside Italy, in 2005 the Fiat Group received a 223 million euro
grant from the Banco Nacional de Desenvolvimento Economico
e Social - BNDES in Brazil. Most of this funding was earmarked
to support investments in fixed assets by CNH (mainly) and by
other Sectors which do business in that country (Fiat Auto, Iveco
and Magneti Marelli).
38
of transport, and related services.
Research Program by submitting design concepts in the areas
for a total cost of approximately 170 million euros.
Human Resources
At December 31, 2005, the Group had 173,695 employees,
aimed mainly at rewarding talents. Pay increases over and above
around 15,800 new employees in 2005, while a total of around
with the Group’s policy of rewarding talented employees.
compared with 161,066(1) at the end of 2004.The Group hired
17,100 employees left the Company. As the net result of changes
in the scope of consolidation, the Group added around 13,900
those mandated by law or contract are scheduled in accordance
Short-term variable compensation: In addition to the fixed
employees.The consolidation of the activities originally conveyed to
component of total compensation envisaged by collective
after the termination of the Master Agreement with General Motors,
professionals around the world receive an annual variable
of Leasys and the sale of WorkNet account for most of the change.
The annual bonus thus awarded will depend on the employee’s
the Fiat-GM Powertrain joint venture, which returned to Fiat’s control
the acquisition of a controlling interest in Mako, the consolidation
LABOUR COST
In 2005 personnel costs amounted to 6,158 million euros.
INCENTIVE SYSTEMS
With its Compensation System, the Fiat Group strives to:
reward talent
bargaining agreements, the Fiat Group’s more than 20,000
component tied to their performance and that of the company.
role in the company, individual/Company performance, and
compensation market conditions in the country concerned.
Long-term compensation: Starting from 1999, 604 Group
executives are eligible to participate in stock option plans; options
may be granted directly by Fiat S.p.A. or by the employing company.
focus on performance
In addition, a long term incentive is envisaged for CNH executives
motivate employees, ensuring that they identify with the
business results.
attract valuable recruits
company’s goals.
who will be awarded a three-year cash premium based on
This is accomplished through a worldwide Group policy which sets
out common guidelines, and country-specific features that ensure a
prompt, consistent response to the labor market and business
conditions in each manufacturing area.
Fiat Group compensation includes:
Basic compensation: In each country, basic compensation levels are
established in order to ensure that they are competitive with each
market’s practice, taking into consideration the constraints and
opportunities envisaged by nationwide and company collective
bargaining agreements. Annual pay increases are determined on
the basis of market trends, scheduled renewals for collective
bargaining agreements, and specific management requirements
(1)
This figure differs from the one published in 2004 due to the change in the scope of consolidation following adoption of International Financial Reporting Standards (IFRS), effective January 1, 2005.
Economic Responsibility Human Resources
39
Customers
The Fiat Group aspires to fully meet the expectations of the end
SALES VOLUMES AND MARKET SHARE
treated fairly and honestly.
FIAT AUTO
achieving this objective by developing and maintaining profitable
Revenues performance (in millions of euros)
customer and considers it essential that its customers always be
The internal procedures of each Group company are directed at
and lasting relationships with customers, offering safety, service,
quality and value supported by continuous innovation.
“Customer value” is an important indicator of a company’s worth.
It is an indicator that is also the product of:
Ease of customer access to the company before, during and
after the purchase
Fiat Auto’s share of the automobile market held at 28% in Italy
(about the same as in 2004), but declined to 6.5% for Western Europe
as a whole (0.7 percentage points less than in 2004).The Sector’s share
Open relationships
of the market for light commercial vehicles was virtually unchanged,
The company’s closeness to the customer before, during and
compared with 2004) and 42.3% for Italy (in line with 2004).
Honest, clear, timely and complete communication
after the purchase.
registering 10.4% for all of Western Europe (-0.2 percentage points
In Brazil, Fiat Auto’s share of the automobile and light commercial
vehicle markets increased to 24.4% (+0.9 percentage points)
and 28.8% (+4.5 percentage points), respectively.
In 2005, Fiat Auto sold a total of 1,697,300 vehicles, or 3.9% less
than in 2004. In Western Europe, shipments were down 7.8% to
1,100,000 units.
Strong competitive pressure and, early in the year, the expected
launch of new models account for the reduction in unit sales.
Once new models became available, sales rebounded both in Italy
and Europe as a whole, particularly in the fourth quarter.
In 2005, Fiat Auto’s sales volume was down 2.4% in Italy (but
increased by 14.7% in the fourth quarter of 2005) and 3% in Spain.
The decrease was more pronounced in Germany (-15.8%) and the
United Kingdom (-38.5%, owing to a sharp drop in market demand).
Among all major European markets, only France bucked the trend,
posting an 8.3% increase in shipments. In Poland, weak demand had
a strong negative impact on Fiat Auto’s sales volume, which
contracted by 44.3% compared with 2004.
In 2005, Fiat Auto intensified its activity in those markets outside
the EU where it already has an established presence, such as Brazil,
Argentina and Turkey.
In Brazil, Fiat Auto benefited increased sales by 12.9% with respect
to 2004 and regained leadership of the market. In Argentina, where
40
Economic Responsibility Customers
consumer demand continued to improve after the deep crisis
MASERATI
percentage points compared with 2004).
of 2002, Fiat Auto increased its market share to 12.4% (up 0.6%
In Turkey,Tofas (a local joint venture in which Fiat Auto has a 37.9%
interest) achieved a market share of 11.2% and increased deliveries
by 8.1%.
In 2005, sales of light commercial vehicles followed a positive trend,
with total shipments rising to 285,200 units or 5.1% more than in 2004.
Maserati achieved major commercial and racing objectives in 2005.
less than in 2004.
causing revenues to soar by 30.3% compared with 2004. Maserati
In Western Europe, sales decreased to 181,800 units, or 0.7%
With the exception of Italy and Germany, where shipments were
down 2.7% and 0.4%, respectively, sales improved throughout
Western Europe (Spain +11.6%, France +3.9%, United Kingdom
+1.4%).
Market share (%)
The success of the Quattroporte drove sales significantly higher,
products - the Quattroporte, the MC12 and the Pininfarina Birdcage
75th concept car - were honoured on 11 separate occasions by the
international press.
In December 2005, the Maserati Corse organisation won the FIA GT
Constructors’ Cup and, racing as part of the Vitaphone team, the FIA
GT Team Cup. In July 2005, the Maserati MC12 scored a prestigious
victory at the Spa 24 Hours Race.
In the luxury sedan segment, demand was down 3% compared with
2004, but the success of the Quattroporte enabled Maserati to more
than double its market share, which rose from 2.1% in 2004 to 4.6%
in 2005.
Maserati delivered 5,568 cars to its sales network, a gain of 16.9%
compared with the 4,765 cars shipped in 2004.The outstanding
performance of the Quattroporte accounts for this improvement.
With 2005 sales totalling 2,311 units (1,124 in 2004), the United
States remained Maserati’s most important market.
At the end of 2005, Maserati had orders for 789 cars, 613 of which
were for the Quattroporte.
41
FERRARI
FIAT POWERTRAIN TECHNOLOGIES
Fiat Powertrain Technologies is a new Sector to which the Group has
transferred the operations (automobile engines and transmissions)
that were returned to Fiat’s control following the termination of the
Master Agreement with General Motors. As of May 2005, all of the
In 2005, Ferrari once again demonstrated the extraordinary appeal of its
products.While its cars are intrinsically exclusive objects, rising customer
demand caused Ferrari to increase annual deliveries to end customers to
5,409 cars.These achievements were made possible by the performance
of the F430 (both the berlinetta and spider versions), the 612 Scaglietti
and Superamerica, which was produced in limited-edition run.
Shipment to the sales network totalled 5,399 cars in 2005, a gain of 11%
over the 4,866 units delivered in 2004. With 1,580 cars sold (+9%), the
venture are being consolidated into Fiat Powertrain Technologies.
The only exceptions are the activities in Poland, which continue to
operate as a joint venture with General Motors.
In 2006, Fiat Powertrain Technologies will also include the powertrain
businesses of Iveco, C.R.F and Elasis.
Most of the Sector’s production, which amounted to 1,966 million
euros for the period from May to December 2005, was absorbed by
Fiat Auto, with noncaptive customers accounting for 23% of the total.
United States was once again Ferrari’s biggest market. In Europe 2,908
Currently, the operating arm of Fiat Powertrain Technologies is its
A total of 5,409 cars were delivered to end customers, an increase
Working with Fiat Auto, its largest customer, FPT-P&CV designs and
performance achieved in 2005 was made possible by rising demand
delivering products that are consistent with Fiat Auto’s strategy of
units were sold (+14%), including 662 cars sold in Italy (+26%).
of 8.7% compared with the 4,975 units shipped in 2004.The positive
in North America (unit sales were up about 8% compared with
2004), Italy, the United Kingdom and France. New and developing
markets also provided a significant contribution (Middle East +41%,
Eastern Europe +92%, South America +36%), generating a significant
increase in volume without compromising the exclusivity of the
Ferrari brand. In China, a brand-new sales network shipped 82 cars,
double the number sold in 2004.
42
operations originally conveyed to the Fiat-GM Powertrain joint
Product Line Passenger & Commercial Vehicles (FPT-P&CV) Division.
builds innovative powertrain systems for Fiat, Lancia and Alfa Romeo,
renewing, relaunching and repositioning its product line.
CNH
IVECO
In 2005, the worldwide market for agricultural equipment
Iveco sold 172,500 vehicles worldwide (+6.3% compared with 2004).
in combines (-16%). In tractors, market demand was down in Latin
64,800 units (+12.8%). In Western Europe, Iveco sold about 134,900
experienced a slight increase in tractor sales (+5%) and a decline
America (-19%) and Western Europe (-6%), it increased significantly
in the Rest of the World markets (26%) and remained flat in North
America.
Sales of CNH tractors decreased across all regions with respect
The Sector’s affiliates in India and Turkey shipped approximately
vehicles, or 2.3% more than in the previous year.This positive sales
performance reflects favourable conditions in all European markets
with the exception of Italy, where the sales volume contracted by
3.8%. In the rest of the world, sales volumes were buoyed by a strong
to 2004, except for the Rest of the World markets. Overall CNH
performance in Latin America, where Iveco shipped 11,900 vehicles,
combines were also down compared to 2004: a sharp decline in
The Irisbus Group sold a total of 8,526 vehicles in 2005, in line with the
reported a slight decrease in market share. CNH unit sales of
Latin America was only partially offset by higher volumes in North
for a gain of 22.8% compared with 2004.
previous year (8,553 vehicles).
Iveco produced about 435,300
America and in the Rest of the World markets. Overall market
engines, about the same as in
share was almost unchanged; the decrease in Latin America was
2004. 41% of this production was
compensated by the increase in the Rest of the World markets.
used directly by the Sector, while
The global market for construction equipment expanded in 2005
48% of it was sold to CNH and
compared to 2004 (+11%). Retail unit demand for loader backhoes
Sevel, a joint venture between
rose 15% worldwide thanks to a significant increase in Latin America
Fiat Auto and the PSA Group.
(+47%) and to growth on the North American market (+8%).
The powertrain operations
Market demand for skid steer loaders was up 4% worldwide as
a result of positive performances in Latin America (+34%) and
generated revenues of 2,554
Western Europe (+9%). Retail unit demand for heavy equipment
million euros in 2005 (58% coming from intra-Sector sales), for a
(+18%), in North America (+15%) and in Western Europe (+4%).
up from 76 million euros in 2004.
increased 8% worldwide, with sales growth posted in Latin America
In 2005, CNH benefited from the rising demand, increasing its total
shipments of construction equipment at a rate consistent with that of
the overall market in the different market regions. Only in Western
Europe there was a slight decrease.
year-over-year gain of 6.3%, and a trading profit of 83 million euros,
In China, Naveco, a 50-50 joint venture with the Yueijin Group,
produced and sold around 18,000 light vehicles (+20% compared
with 2004).
In Turkey, the Otoyol licensee sold 5,200 vehicles (about the same
as in 2004), while in India the associated company Ashok Leyland
manufactured and shipped 59,600 units (+14% compared with 2004).
43
MAGNETI MARELLI
Cofap Automotive Suspension
1,011 million euros in 2004, a decrease of 0.5% from the previous
Revenues for 2005 amounted to 1,052 million euros as against
year’s figures on a comparable exchange basis. Increased volumes for
the Panda in Poland offset declining sales in Italy, where the market
Magneti Marelli increased its revenues by 2.0%, with all business units
contributing to this growth. In particular.
Lighting Group
Revenues for 2005 totalled 1,261 million euros, an increase of
approximately 180 million euros in absolute terms. A significant factor
in this growth was the acquisition from the Turkish Koç Group of
Mako Elektrik Sanayi Ve Ticaret A.S., in which Magneti Marelli already
had an equity interest. On a comparable consolidation and exchange
rate basis, the increase amounted to 4.4%.
picked up again thanks to the newly-introduced models, and to the
Grande Punto in particular.
Electronic Systems
Total revenues for 2005 amounted to 513 million euros, against 476
million euros in the previous year. On a comparable exchange rate
basis, this was a 6.2% increase.
Among customers, a mention goes to the increase in sales to the
Volkswagen-Audi Group.
Exhaust Systems
Revenues for 2005 were 404 million euros, a 4.5% increase over the
365 million euros recorded in 2004 on a comparable exchange basis.
In Europe, major new orders were acquired in the course of the year
for new models or applications with DPF (diesel particulate filters)
for Opel, Mitsubishi and Mercedes. In addition, the business unit
received its first order from Volkswagen, together with orders for
systems installed on new versions of Nissan vehicles.
Motorsport
In 2005, Magneti Marelli supplied electronic control systems, fuel
system and electromechanical components, and telemetry and data
Powertrain (Engine Control)
Revenues for 2005 totalled 788 million euros, a 1.1% increase over the
previous year’s 761 million euros on a comparable exchange rate basis.
Formula 1, Magneti Marelli is also active in other championships. It
participates in the World Rally Championship, supplying electronic
control systems to a number of teams, and in the Moto GP1
During 2005, sales of diesel injection systems increased. Investment
championship, where it provided fuel injection and electronics
Pico-Eco, which will consolidate and increase the business unit’s
Kawasaki. Magneti Marelli also helped bring Maserati to victory in
plans are now being drawn up for a new injector design, dubbed the
market share in this area.
44
acquisition systems to the leading Formula 1 teams. In addition to
systems to Yamaha - 2005’s winner - as well as to Ducati and
the FIA GT1 championship.
TEKSID
COMAU
In 2005,Teksid’s revenues rose by 13.8%, with a major impetus
In 2005 Comau continued to restructure its business portfolio, with
revenues by 20.4% thanks to a rise in sales, the favourable effect
and CNH, effective January 1, 2005. If the effect of changes in the
coming from the Cast Iron Business Unit, which increased its
of exchange rates and successful efforts to recover the increased
cost of raw materials.Volumes in particular benefited from the
sharp upswing in demand, especially in North America and Brazil.
the transfer of its European service activities to Iveco, Magneti Marelli
scope of consolidation is not taken into account, revenues rose by
approximately 6%, largely because of the strong performance shown
by the Bodywork and Service business units.
In Brazil, production of a significant number of products, including
With markets shrinking nearly everywhere, new orders received in
foundries, was transferred to the Sector’s plants in 2005.
a comparable scope of consolidation.
those previously manufactured by the former General Motors
2005 totalled 1,448 million euros, 9% less than the previous year on
The Magnesium Business Unit (where Teksid operates through the
In 2005, new orders for contract work came to 1,210 million euros,
by 1% and volumes drop by 6.8% as major reference markets
48% of the orders were acquired in Europe and 35% in the Nafta
Nevertheless, North America continued to account for around
markets (7% from China). 17% of all orders came from Fiat Group
joint venture Meridian Technologies Inc.) saw revenues decrease
lost momentum, particularly the North American SUV market.
80% of revenues in 2005.
Marketing efforts in 2005 enabled both the Cast Iron Business
Unit and the Magnesium Business Unit to win major orders from
leading international automakers.
a 14% decrease over 2004 on a comparable scope of activity. Overall,
area, while the remaining 17% came from the Mercosur and new
companies and 83% from other manufacturers.
At December 31, 2005, the backlog amounted to 713 million euros,
a decrease of approximately 20% from the previous year on a
comparable basis.
For Service operations, 2005 saw a significant increase in orders, which
rose 30% on a comparable scope of activity.Total value reached 238
million euros, 26% of which coming from Fiat Group companies.
45
BUSINESS SOLUTIONS
ITEDI
In 2005, the Sector further accelerated its efforts to concentrate
Editrice La Stampa S.p.A. reported an average daily circulation
on the captive market, confirming the strategy outlined in 2004.
of 312,000 copies in 2005, an 8% drop from the 339,000 copies
Business Solutions limited the shortfall in revenues to approximately
marketing arrangements with other papers were discontinued
Excluding the impact of changes in the scope of consolidation,
5%, a decrease attributable to reassignments of the services provided
to Group companies.
The Sector operates through the following units:
Human Resources:This unit provides payroll and HR services.
The unit was radically restructured in 2005, with the sale of
companies operating on the non-captive market (in particular
the sale of WorkNet, a temporary employment agency).
Facility Management:Through Ingest Facility S.p.A., the unit handles
of 2004.This erosion was largely due to the fact that several joint
during the year, as well as to lower newsstand sales.
Revenues from the sale of newspapers and other publishing products
totalled 70 million euros in 2005, approximately 12% less than in
2004.This decrease was chiefly due to the abovementioned lower
revenues from brand stretching initiatives and the drop off in sales
volumes, which was also due to 6 strike days more than in 2004.
However, despite this unfavourable environment, the newsstand
regular and extraordinary maintenance of industrial and nonindustrial buildings.
Administration: During 2005, parameters and boundaries for
the unit’s work for the Group were reviewed, clarifying service
levels and mutual responsibilities.This approach rationalised
the unit’s activities, cutting volumes but boosting efficiency.
I.C.T. - Information and Communication Technology:This unit
has been deeply affected by restructuring in order to improve
efficiency and competitiveness. As part of this effort, an agreement
was reached between Fiat and IBM at the end of June which,
channel began to show signs of recovery from August. Advertising
of its equity investments in Global Value Services and Global Value
previous year.
among its other provisions, enabled Business Solutions to dispose
S.p.A. Also as part of the unit’s reorganisation, an agreement
Publikompass S.p.A. booked advertising billings of 328 million euros,
of Atlanet, a provider of fixed telephony services and connectivity
in revenues stemming from the termination on June 30, 2004 of an
with British Telecom was signed in December 2005 for the sale
in general.
46
revenues amounted to 94 million euros, substantially in line with the
compared with 330 million euros in 2004: a slight (-0.6%) decrease
advertising arrangement with SKY.
CUSTOMER RELATIONS
Ferrari
Sales systems and access channels
Ferrari operates on 52 markets and exports approximately 90%
Fiat Auto
America, Germany, Switzerland, Great Britain, and France, which
Fiat Auto has made its end customer the focus of its distribution
strategy.
It aims to bring Fiat Auto brands on par with its best European
competitors in terms of performance and quality of service, assuring
a consistent, uniform image and excellent territorial coverage. The
network plays an essential role in repositioning brand values and
image, transmitting brand experience to the customer.
Fiat Auto has thus set itself some ambitious goals for quantitative
and qualitative improvement of its dealer network, by expanding it
from 3,749 to 3,966 points of sale, 40% of which are dealers that
manage two or three brands. In the most strategically important
cities of Europe, Fiat Auto maintains a direct presence through its
of the cars it makes. It has directly owned subsidiaries in North
has responsibility for Spain, Portugal, Belgium,The Netherlands,
and Luxembourg. It operates in China through a joint venture,
while it relies on importers and dealers in the other countries.
There are 205 Ferrari dealers worldwide.
Several important changes in its commercial organization were
announced in 2005. The United States subsidiary assumed control
for Central and South America. The creation of a new commercial
division was announced for the Asia-Pacific area. This region, which
embraces 13 markets, including Japan, China, Australia, and Hong
Kong, has high growth and strategic potential for Ferrari, which
expects to achieve major commercial successes there.
proprietary dealerships (53 locations). Their purpose is to serve
as showcases for the dealer network in terms of service standards
and quality.
Fiat Auto is implementing the new corporate identity of its brands
throughout Europe.This new, friendly, and youthful image has taken
concrete form thanks to innovative solutions, such as the partnership
with Ikea for the Fiat brand.
To guarantee customer satisfaction, Fiat Auto has also set up various
“key processes”: hospitality, product presentation, test drives, and
the use of “e-links” (a computer tool for presentation of the product
and services to customers). Salesmen are given special training on
these processes and are then regularly checked (mystery shopping).
Finally, Fiat Auto has also launched in the main European markets a
Maserati
plan for compliance with sales and after sales standards by its dealer
Maserati distributes its products through two principal channels: its
quality for its distribution network and guarantees customers a
GB, Maserati West Europe (France, Iberian Peninsula, and Benelux),
and sub-dealer networks. This plan assures greater uniformity and
standard of service that is one of the best available on the market.
subsidiaries – Italy, Maserati Deutschland, Maserati Suisse, Maserati
Maserati North America (United States and Canada) – and various
importers in other countries. At the end of 2005, Maserati was sold
on 56 markets at 259 points of sale.
47
CNH
CNH sells its products through approximately 10,800 dealers in 160
countries. Its agricultural equipment is sold through 8,478 dealers, of
CUSTOMER LOYALTY AND SATISFACTION
Fiat Auto
which 2,924 are located in Europe, 2,288 in North America, and 492
Effective September 1, 2005, Fiat Auto activated the Customer Care
dealers, of which 812 are in North America, 492 in Europe, and 190
based on Fiat’s desire to make customer relations an important part
in Latin America. Earth moving equipment is sold through 1,788
in Latin America. CNH has launched a program for evaluating and
improving its dealers, giving annual awards to the best.
Department, which reports directly to the CEO. This decision was
of Fiat’s strategy. The department’s mission is to make the Company
more sensitive to customer needs, by coordinating direct contact
activities and supporting the distinctive positioning of its brands.
The department was specifically organized to accompany customers
throughout the life cycle of the product and for all of their contact
needs:
Customer Support: handling of roadside assistance to assure
prompt and effective customer support;
Customer Relations: handling of customer requests, complaints,
and information;
Iveco
Iveco operates through a sales network totaling 650 dealers in over
100 countries. Of these, 327 are located in Western Europe, 84 in
Central and Eastern Europe, 42 in Asia, 125 in Africa and the Middle
East, and 72 in Central and South America.
Customer Marketing: planning and implementation of marketing
campaigns aimed at winning new customers, upselling, and loyalty
consistently with brand objectives and positioning.
Customer Care uses a Customer Center to handle contacts. This
center manages the provision of front-end services (relations and
marketing) and represents the most important Italian multilingual call
center. The Customer Center handles about 700,000 multi-channel
contacts (telephone, Internet, text messages, and other) with Fiat
Auto customers in 14 European countries. Its staff includes about
250 native speaker operators.
48
In 2006, Fiat will be the first European car maker to activate an
activities. These surveys are conducted throughout the commercial
markets.
participate in the customer satisfaction index survey on customer
international toll-free number for its customers on major European
CUSTOMER CARE FIAT AUTO
The toll-free number allows customers to contact Fiat Auto
regarding all requests for information and assistance. It is easy to
memorize because it corresponds to the brand name when spelled
out on the telephone keypad:
network in 16 countries (1,800 dealers with authorized workshops
assistance). In 2005, a total of 250,000 interviews were carried out.
The expectations of customers (including dealers and in-house
personnel) for new products, new technologies, and new, innovative
equipment are assessed through specific surveys. These surveys help
to reconcile consumer needs with the Company’s specific business
and development needs.
In 2005, nine clinical tests were held. These tests helped the
Company verify styles chosen for its new products.
This process, which guides development of a car from the initial concept
to its commercial roll-out, made it possible to implement an innovative
concept like the Grande Punto and some of its specific characteristics.
It helped management to position and introduce the car in the most
effective way possible. For instance, one of the results of taking into
consideration customers’ opinions was increasing its size, and
Market Research at Fiat Auto
The efforts undertaken by Fiat Auto in 2005 were considerable.
Significant improvements were achieved in part thanks to a thorough
knowledge of the competitive environment and needs of its
stakeholders.
The Company never looses sight of these stakeholders – its
end customers, sales network, and suppliers – in operating
and development activities. It does so by performing numerous
studies that can measure customer expectations and satisfaction.
Product customer satisfaction surveys are carried out on a rolling
basis every year on the Company’s principal markets. They are based
on a sampling of up to 300,000 end customers. Feed-back received
from new customers is obtained through surveys of first-time buyers.
Conducted immediately after the commercial introduction of new
models, they make it possible to gather information and initial
impressions just one month after purchase.
Service, sales, and customer service surveys are carried out by Fiat
Auto with punctual monitoring of individual behavioral parameters in
order to orient the objectives for improvement of sale and after-sale
enhancing its value, safety, and balance between performance and
fuel consumption.
The effort devoted to monitoring customers, which entails major
investments by Fiat Auto, arose primarily from the awareness that
it had to deal with increasingly demanding customers. Surveys
of quality perceptions are conducted annually on the Company’s five
major markets and involve 80,000 individual owners of cars made by
the Group and its competitors to provide 12-month reference
parameters. The continuity and detail of monitoring is assured by
Quality Tracking, which held 100 interviews a month on existing
products to investigate the level of customer satisfaction.
Customer recollection, comprehension, and appreciation of
advertising campaigns, with the notoriety and image of different
models on the market, are measured by means of specific surveys.
The 10,000 face-to-face interviews held annually with car owners on
the five major markets for the CarPark study were complemented by
5,000 interviews for the Advertising Tracking market.
All of these activities enable the Company to keep close to its
customers. Knowing the rules dictated by the market, and thus
refining its strategies, allows it to satisfy their needs better.
49
FIAT AUTO QUALITY PROGRAMS
The services provided by a company are no longer measured only in
Quality, environment, and safety
ability to satisfy stakeholders. The concept of quality itself has evolved
its Quality Management System in accordance with the ISO 9001 quality
economic terms but also and in particular by assessing the company’s
in this direction. Thus, addressing quality issues means considering not
only the expectations of customers but also those of employees,
society, the environment, and investors, and endeavoring to satisfy
them as well as possible.
Employees
Individuals and their respective skills are key to the success of
organizations. Accordingly, activities to develop the skills of the Quality
Professional Family were launched in 2005. The design of the Quality
Training Centre represents one of these initiatives. It is an e-learning
platform available on the company Intranet that offers people free
access to structured self-paced courses in specific fields. The courses
offered by the Quality Training Centre, which was activated at the end
of 2005, are undergoing continuous development and include courses
on Six Sigma methods, internal quality processes, and company
information systems.
The “Quality Handbook” was drafted as part of quality management
during the product development process. This document specifies
the activities, skills, and responsibilities of the Quality personnel on a
standard. Since then, Fiat Auto has maintained its unflagging commitment
to quality, and now all Fiat Auto plants have ISO 9001 certification.
The commitment of Fiat Auto to quality continues, with its “corporate
certification” project. This will allow it to check and consolidate the
consistency of all company processes with customer expectations in
accordance with ISO standards. Also in view of customer satisfaction
and continuous quality improvements, mention must be made of Fiat
Auto’s strategy towards its suppliers. It rewards those partners whose
quality standards are certified in accordance with ISO-TS 16949.
The commitment of Fiat Auto to quality has also won international
recognition. In the fall of 2005, the European Foundation for Quality
Management rewarded the commitment made by the Tychy plant in
Poland to excellence, awarding it with the title “Recognized for
Excellence.”
Six Sigma Program
In 2005, the activities of the Six Sigma program were concentrated on
the processes of the Cassino and Tychy plants. This led to successful
conclusion of 23 projects with a positive impact on customer
satisfaction, improving product quality in terms of aesthetics and
product development team. The handbook traces the development
defects. For example, painting defects were halved, and problems
the performance indicators to be used, the level of project maturity,
experience of the two pilot plants, the program will also involve the
process, highlighting the activities to be monitored for every milestone,
and supporting technical documentation. The “Quality Handbook”
also defines a reporting standard that facilitates the collection and
dissemination of information, making it easier to use by interested
people.
with electrical systems were reduced by 85%. After the positive
other plants in 2006. Projects for improvement of products and
services will also be undertaken in the Purchasing, Engineering Design,
and Customer Care areas.
In 2005, two quality workshops were organized, with participation by
Society
people could share and compare views on their vision of quality at
organizing last November, the conference “Product-Service Quality
a large number of top and middle Quality management, so that
Fiat Auto. Both represented significant opportunities for interaction
and the exchange of experiences by specialists on related topics.
50
In 1996, the Tychy plant in Poland was the first Fiat Auto plant to certify
Fiat Auto participated at the 11th European Quality Week by
and Organizational Quality” with the Galgano Group in order to
disseminate quality culture.
Ferrari
Ferrari is constantly engaged in cultivating relationships with its
customers, seeking to improve its knowledge in view of better
satisfying their needs.
A Customer Relationship Management (CRM) platform was
created for this purpose in 2004. This platform has been recognized
Limited Edition products designed and created for them only. A
section of the website is entirely dedicated to the racing world, from
Formula 1 to the Challenge series and FIA GT competition, which
lets Web navigators experience racecourse excitement from a front
row seat.The Company’s customer care processes were granted
ISO 9001 certification in July 2005.
as best practice in the luxury car segment, and it was extended to all
Ferrari performs numerous surveys on a periodic basis to
tool worldwide for managing customer relations. There are many
offered by the Sales and Assistance Network.
subsidiaries in 2005. Thanks to this initiative, Ferrari now has a single
ways to transform the purchase of a Ferrari from a simple sales
process into a genuine experience of brand membership. Each
customer receives a welcome letter personally signed by the
Chairman, Luca Cordero di Montezemolo, and together with the
measure customer satisfaction with both products and the services
The results of its 2005 surveys confirmed the excellent results
reported in the previous year, consolidating its overall product
evaluation, between 4.2 and 4.5, and service, 4.6 (scale 1:5,
1 = minimum; 5 = maximum).
car receives a V.I.P.,Vehicle Identification Passport, which contains
Excellent customer satisfaction results were achieved by the service
Customers have access to a European call center with
An “International Survey of the Ferrari Brand” was carried out
illustrations of the key phases during the production process.
16 toll-free numbers, and a dedicated Web site,
offered in Germany and Switzerland (overall ranking of 4.8).
in 2005 on its main markets, in order to assess the image and
positioning of the Ferrari brand in comparison with its principal
competitors. The results of this survey highlighted Ferrari’s absolute
leadership in terms of sportsmanship, uniqueness, and innovation,
confirming its unchallenged “brand cachet.”
www.owners.ferrari.com, that gets over 13,000 hits annually
and represents the preferred channel of contact.
On the Ferrari Owners’ Site, users can find complete technical
information about the cars, read historic articles on the world of
Ferrari, and stay constantly abreast of all the latest news, as well as
receive images of the new Ferrari models before they are released
to the general public. Through this site only, customers can book
their participation to events reserved to them, such as the Ferrari
Academy and Factory Tour, have access to exclusive services
conceived for them such as the Ferrari F1 Club, and purchase
51
Maserati
CNH
In 2005, Maserati launched a Customer Relationship Management
CNH maintains a direct access channel for its customers through its
customers and the Company, in support of strategic and business
England and Toronto, Canada. Initially set up to support New
(CRM) system that analyzes the quality relationships between
decisions.
Its principal channels of contact are the call and contact center
(telephone number in Italy: 800.008.008), which is active in 17
European countries.
The e-mail channel is accessible through the web site
www.maserati.com, which includes a section dedicated to
“Maserati Owners.” It currently has about 5,000 registered users.
Maserati conducts annual customer satisfaction surveys.
The results of the Customer Satisfaction Index (C.S.I.) surveys
conducted in 2005 gave the Company a highly positive overall
ranking of between 4.3 and 4.6 on a scale from 1 to 5
(1 = minimum; 5 = maximum).
Customer Response Centers (“CRC”), which are based in London,
Holland brands, its coverage was extended last year to include Case
IH and Case in Europe.
Customers can contact CNH in different ways: by phone, e-mail,
or post, and may complete and submit a questionnaire to express
their level of satisfaction.
All contacts are addressed to the CRC and recorded on a
centralized contact management system for subsequent monitoring
and problem resolution. Every brand has a unique toll-free number
and a dedicated e-mail address for each country.
The Customer Response Centers are open weekdays, Monday
through Friday, during normal office hours. All calls received after
office hours are recorded on a voice mail system and responded to
the following day. Most contacts are from customers or potential
buyers seeking general information on Company products and its
dealer network, or about CNH or the Fiat Group. Reports of
problems (e.g. with products) represent less than 10% of the
contacts.
CNH is constantly seeking new solutions to increase the
performance level of its Customer Response Centers in order
to improve customer satisfaction. In the United States, the CRC
started to provide technical support to specific categories of
customers. In Europe, CRC staff also collects information for
customer profiling and coordinates data protection policies in
compliance with EU data processing regulations.
52
Iveco
Iveco’s customer care program was set up in 1999 in order to
handle roadside assistance for all Iveco vehicles.
Over the years, the Assistance Non-Stop service was
complemented by new services: Windelivery, ContactUs and
Marketing Support, transforming itself from a call center into an
The excellent results achieved by the Customer Center in terms of
customer satisfaction are the result of careful hiring, training focused
on operating aspects and telephone communication management,
and constant monitoring of the entire process of providing the
service.
articulated and efficient unified operating switchboard providing
customer services.
Contact us
The “ContactUs” service was started up in late 2005: by accessing
the website www.iveco.com, the Company can be contacted by
filling out a special form in the Contact Us section. After determining
the contents of the request, the operator responds directly when
possible (addresses and information about the customer care
network, general information about products and services, and
other information) or forwards the request to the office with
local responsibility for the matter (estimates, brochures, technical
documentation, manuals, and other documents).
The Customer Center supervises the entire process, from
the first contact received from the customer until an answer is
sent to him, so that the matter is closed as quickly as possible.
Assistance Non Stop (ANS)
With a simple phone call to a universal toll-free number, it is
possible to access the service 24 hours a day, 365 days a year, from
ANS IN FIGURES
00.800.82.74.73.68
24
365
32
12
20
7
90
3
9
3
75
74%
29
1
anywhere in Europe.
8,182
who, once the customer and his vehicle have been identified, locates,
1,500
Every request for assistance is handled by a multilingual operator
and dispatches the most appropriate garage to the breakdown site.
The involvement of the Customer Center does not end once the
mechanic is dispatched. Instead, the operator continues monitoring
the matter until repair is completed, assisting the mechanic with any
problem that might arise (obtaining spare parts, language problems
in communicating with the driver, etc.), and keeping the customer
updated on the progress of repairs until the vehicle is operable again.
8
350
100,800
15
14
70%
Universal toll-free number
reserved for customers
hours a day
days a year
countries in Europe, including:
countries with direct coverage
countries covered
through local providers
languages spoken:
Italian, French, English, German,
Spanish, Portuguese; Dutch
persons, including:
managers
team leaders
trainers
operators
non-Italian native speaker staff
average age of staff
month of training for all new hires
hours of training in 2005
different types of shifts
inbound calls on average every day
inbound fax/email/text messages
received on average every day
cases handled in 2005
seconds average response time
minutes average time
to dispatch mechanic
of cases with repairs
completed in 3 hours
53
Windelivery
While repairs are being performed, the dealer can order a spare
part through the Windelivery service to reduce vehicle down time in
particularly critical situations (perishable freight, transport of animals,
tour buses, and other cases). The dedicated personnel will search
for the spare part on the virtual inventory, production plants, or
suppliers, and handle the logistical aspects by choosing the most
appropriate transport for delivery to the garage or directly to
the breakdown site.
Marketing support
To maintain a direct relationship with established customers or
make new contacts with potential customers, the Customer Center
conducts “outbound” telephone campaigns. These are an effective
and essential support for strategic and operating marketing.
The services offered are broken down into telemarketing
activities aimed at creating new business opportunities, and
market research aimed at improving customer awareness and loyalty.
With its wide range of services, the Customer Center is becoming a
distinctive part of what Iveco offers customers. Orientation towards
the customer continues to be a strategic point for continuous
improvement and development of new services.
54
WINDELIVERY IN FIGURES
1,943
cases handled on average every month
10,649
number of dedicated shipments in 2005
23,311
374,843
80%
94%
order lines received every year
kilos transported in 2005
percentage of deliveries made less
than 48 hours after request
percentage of deliveries
handled via air mail
COMMUNICATION
The Fiat Group recognizes the social role of communication and
voluntarily chooses to adopt and encourage positive and responsible
attitudes in its external activity, based on the same ethical principles
that inspire it.
The “Fiat Group Advertising Code of Ethics,” first adopted in 1993
and constantly updated since then, aims to define the basic rules
promotions, and other activities) are created for customers.
Customers loyalty campaigns are periodically conducted through
direct marketing or mailing activities.
Introductory advertising campaigns are organized to acquaint the
public with new models, while promotional campaigns are organized
for existing products to make special offers to potential customers,
such as forms of financing or the terms and conditions of purchase.
and apply guidelines in all communication activities.
Particular attention is devoted to special shows which are important
of the Institute of Advertising Ethics (“Istituto di Autodisciplina
Fiat spent 802 million euros on advertising in 2005 (862(1) in 2004).
Advertising Ethics so that advertising is always honest, truthful, and
(686 million euros, or 86% of the total), followed by Iveco and
As a member of the UPA (Associated Advertising Union), promoter
Pubblicitaria”), the Fiat Group also adheres to the Code of
fair, complying with the initiatives and decisions of the Control
Committee and the Jury, which is its adjudicating body.
occasions to acquaint the public directly with the Group product line.
Fiat Auto accounts for the lion’s share of advertising spending
CNH, which spent 58 and 37 million euros, respectively.
The purpose of institutional communication is to inform the various
stakeholders and present the Group as an economic-social player.
Various tools of communication are used to inform the specific
targets: public relations events and dedicated meetings for
journalists and the business community, and conventions for
the dealer networks.
Product advertising serves to reinforce the visibility and name-
recognition of Group products and services and promote their
image. Accordingly, above-the-line activities (e.g. campaigns on the
traditional media such as television networks, press, billboards, cinema,
and radio) and below-the-line initiatives (catalogues, websites,
(1) This figure differs from the one published in 2004 due to the change in the scope of consolidation following adoption of International Financial Reporting Standards (IFRS), effective January 1, 2005.
55
LITIGATION WITH DEALERS AND CUSTOMERS
The figures illustrated in the following tables refer to all Fiat Group
companies worldwide.
Italy accounts for 22% of lawsuits with dealers and 10% of lawsuits
with end customers.
Litigation with dealers
Fiat Auto
Maserati
Ferrari
Fiat Powertrain Technologies (**)
Fiat S.p.A. and affiliated companies
Total for the Group
(*)
(**)
56
A very high proportion of lawsuits with dealers and end
customers were positively settled, 88% and 89%, respectively.
No significant changes were reported in the progress of these
lawsuits.
Settlements
reached
10
1
–
–
2005
Suits
pending
289
1
4
–
4
55
5
17
–
–
6
–
–
–
–
26
43
2
–
–
–
411
(*)
The change in the total for the Group with respect to 2004 is due to a broader scope of survey for the Fiat Auto Sector.
Fiat Powertrain Technologies is a new Sector to which the Group has transferred the operations (passenger car engines and transmissions) that were returned to Fiat’s control
following the termination of the Master Agreement with General Motors. As of May 2005, all of the operations originally conveyed to the Fiat-GM Powertrain joint venture were
consolidated into Fiat Powertrain Technologies.The only exceptions are the activities in Poland, which continue to operate as a joint venture with General Motors.
Litigation with end customers
Fiat Auto
Maserati
Ferrari
Fiat Powertrain Technologies (**)
Settlements
reached
102
1
2
–
234
2005
Suits
pending
6,970
5
16
–
294
44
180
–
9
2
4
3
26
Servizi (Business Solutions)
47
311
34
21
Total for the Group
(*)
(**)
–
470
–
7,835
(*)
The change in the total for the Group with respect to 2004 is due to a broader scope of survey for the Fiat Auto Sector.
57
Suppliers
Group Purchasing Coordination, introduced in September 2004,
continued in 2005. It aims to:
promote initiatives through the formation of cross sector
working groups that target the principal types of commodities
purchased by the Group, exploiting the best know-how available
at the individual Sectors and on the various markets where
they operate;
monitor performance with respect to targets on a constant basis.
Group Purchasing Coordination worked on the following specific
areas:
Direct Materials: commodity cross sector teams were
The aggregate volume of direct materials purchased by Fiat Group
Sectors can be broken down into three principal product lines,
according to type: metals, chemicals, and electrical.
In 2005, steel prices started to fall, with a steep increase in the cost
of products connected with oil prices (plastic, rubber, and chemicals
in general) and non-ferrous metals.
Total volume of direct materials purchased by Group Sectors
in 2005, broken down by product line (%)
created to realize purchasing efficiency and technical synergies.
A joint approach to common suppliers was also defined in
this area;
Raw materials: in 2005, the Group increased the level
of centralized purchasing of raw materials, especially steel
for molding;
Low Cost Countries: all Group suppliers in low cost countries
were mapped on the basis of common parameters for
qualification, supplied products, and operating procedures;
Supplier Quality Assurance: common processes were defined
for qualification of new suppliers, and complete sharing of
databases of Sector quality suppliers was undertaken with
the support of Information & Technology;
Indirect Materials and Services: cross commodity classes were
defined, and cross sector teams were set up to handle them.
Specific local actions were also defined in those countries where
In 2005, the Fiat Group increased its focus on continuous
Transport and Logistics: two cross sector teams (inbound and
innovation, costs, and services offered, in accordance with Company
and Brazil);
outbound) were created to work on targeted projects in order
to realize efficiencies and synergies in negotiations and processing.
Fiat Group activities are concentrated on materials directly related
to production and raw materials, followed (in terms of revenues)
by transport and services in general.
58
RELATIONSHIPS WITH SUPPLIERS
the Fiat Group has a more significant presence (France, Poland,
Economic Responsibility Suppliers
improvement in its relationships with suppliers, based on quality,
directives and the Code of Conduct.
Group Purchasing Coordination activities reflect this approach.
Over 30% of all Fiat Group purchasing costs are handled on a cross
sector basis, with 78 working teams for cross sector suppliers and
commodities, partly in view of developing solid partnership
relationships.
FIAT AUTO: ISO 14001 CERTIFIED SUPPLIERS
Fiat Auto supplier portfolio: certified and non-certified companies
Environment Safety and Ecology and Purchasing Italia entities,
by number of sites...
During certification of its own sites Fiat Auto, through the Work
surveyed the certified sites of its suppliers.
Nearly two thirds of all its suppliers’ sites are certified or
undergoing certification. The remaining third are not certified,
and the vast majority of these intend to obtain ISO 14001
certification.
When considered in terms of billings, over 80% of
purchased products are from certified sites or sites undergoing
certification.
The fairest and most effective ways to improve this situation
are currently being studied, since failure by large companies
to obtain this certification is no longer tolerable.
ISO 14001 certification has become a discriminating factor
for certain aspects of waste management. A new procedure
for handling vehicles at the end of their life cycle has been
undertaken, privileging companies with ISO 14001 certification.
... and by revenues vis-à-vis Fiat Auto
This offers the certainty that rigorous operating procedures
for demolition, inspection, and management of components
are complied with, guaranteeing their proper recycling
and/or disposal.
PURCHASING PROCESSES
Group Sectors are organized according to integrated, worldwide
purchasing processes that satisfy the different needs of specific
regional markets.
The macrostructure of Fiat Group purchasing processes can be
summarized as follows:
definition of purchasing strategies and policies;
market studies and identification of potential suppliers;
assessment and approval of suppliers;
order issuance and approval system;
of purchasing requests;
rankings.
definition of approved Group suppliers;
codification of materials, identification of needs, and system
technical/commercial analysis of bids and choice of suppliers;
supplier performance evaluation system and updating of supplier
59
The continuous search for excellent suppliers and the demand for
Given the fundamental importance to the Group that its partners
within the scope of Group Purchasing Coordination. Its mission is
are selected according to adequate and objective methods. These
the Group to set up a Supplier Quality Assurance (SQA) Committee
to assure optimization and standardization of best practices at the
Group level, assuring standardization of all supplier evaluation and
certification activities and maximizing the exchange of information
between Sectors.
In the first half of 2005, the improvements in company processes
share the principles set forth in the Code of Conduct, suppliers
consider not only the quality, innovation, costs and services offered,
but also the values set forth in the Code.
With variations from Sector to Sector, and respecting their
independent management of relationships with suppliers and
partners, disclosure of adoption by Group Sectors of the Compliance
were concentrated on qualification of new suppliers, particularly in
Program pursuant to Legislative Decree 231/2001 and the Code of
suppliers.
principles of business ethics adopted by Fiat. For new agreements
regard to standardization of procedures for certification of common
In this context, the certifications requested from principal Fiat Group
Sectors were mapped for suppliers of direct materials and original
equipment.
The SQA Committee then defined a process for qualification and
common ranking of new suppliers, and a single assessment to be
entered on the Supplier Database.
In the second part of the year, the focus was shifted to cross sector
standardization of processes and procedures for the new product
development phase.
Continuous auditing and monitoring of the entire structure
of purchasing processes and procedures is carried out by Internal
Audit at the Group level and the Compliance Officer of each Sector.
60
BUSINESS ETHICS
technological compliance and environmental quality guarantees led
Conduct continued in 2005. The Code of Conduct sets forth the
made in 2005 and those being renewed, the largest Group Sectors
envisaged specific contractual obligations in the general conditions of
contract and sale that refer to the principles envisaged in the Code
of Conduct and the Compliance Program. For Italian suppliers and
partners, the disclosure regarded both the Code of Conduct and the
Compliance Program, while it involved only the Code of Conduct in
the case of foreign suppliers.
At the end of 2005, more than 19,700 communications were sent
to suppliers. This number is bound to grow both in consequence
of the commitment made by Sectors to complete the process of
disclosures to active suppliers, and due to the usual, constant
changes in suppliers.
LITIGATION WITH SUPPLIERS
The figures set forth in the following table refer to all Fiat Group
companies worldwide.
Fiat Auto
Maserati
Ferrari
Fiat Powertrain Technologies (*)
Totale for the Group
(*)
Lawsuits pending in Italy represent 43% of the total. Eighty-three
per cent of all lawsuits are settled in favor of the Group.
No significant changes were reported in the progress of litigation
with suppliers.
Settlements
reached
1
1
2005
Suits
pending
51
–
–
–
2
1
–
8
5
6
2
19
6
31
–
–
–
15
35
3
6
3
8
133
61
03
Environmental
Responsibility
87
65
Environmental Policies
90
Vehicle architecture
74
64
64
66
79
80
85
Milestones in Fiat’s commitment to the Environment
Environmental Management System
Achievements by each Sector
Implementation of EU regulations
87
93
94
94
95
Fuel efficient low-emission powerplants
Reporting criteria
Performance and efficency indicators
Environmental Responsibility
63
03 Environmental Responsibility
MILESTONES IN FIAT’S COMMITMENT TO THE ENVIRONMENT
1989
1990
Fiat Group
Fiat Group
1991
1992
Fiat Auto
Fiat Group
1993
Fiat Group
1994
Fiat Auto
1995
Fiat Group
1996
Fiat Auto
1997
Fiat Group
Fiat Auto
Fiat Group
1998
1999
2000
2001
2002
2003
2004
2005
Iveco
Fiat Group
Iveco
Fiat Auto
Iveco
Fiat Auto
Fiat Group
CRF, Fiat Auto
CRF
Fiat Group
CRF
Fiat Group
CRF
CRF, Irisbus
Fiat Group
Fiat Auto, CRF
64
Environmental Responsibility Environmental Governance
Single umbrella organization set up to deal with environmental issues.
Fiat mobility policies.
The “Fenice Project” is launched within the framework of a policy
aimed at sustainable development.
Environmental and Industrial Policies Department established.
Fiat’s official “Environmental Policies” became effective for
all Group Sectors.
Agreement with Italy’s national pipeline operator, SNAM, to extend
the natural gas refueling network.
The Fiat Group Environmental Report published for the first time.
“Perpetual Motion” program launched in Italian schools.
“Serena” program for energy efficiency gets under way.
Fiat receives a prize for the year’s best Environmental Report from
Italy’s public relations institute (IRP).
Fiat presents its environmental activities to the European Parliament.
Launch of “Motus Vivendi”, a highway safety program for high
school students.
Fiat’s Environmental Policies updated.
Market launch of the Marea Bipower.
All ecological and energy management activities at Fiat plants
assigned to Fenice.
New environmentally-friendly engines for trucks and buses.
Amount of waste sent to landfills reduced by 4.5%.
New natural gas vehicles introduced.
Average fuel consumption of the entire range reduced by over 4%.
Design of fuel cell buses.
Fiat Stilo complies with Euro 4 emission standards (2005).
Launch of the nationwide plan for promoting the use
of natural gas vehicles.
Development of new Euro 4-compliant fuel saving low emissions engines.
The CRF, Fiat Auto and Iveco join forces in developing “telematic fleets”.
Publication of the Fiat Group Code of Conduct which outlines
the general principles to be observed for Health, Safety and
the Environment.
New hybrid gasoline/diesel-electric power plants developed.
Launch of the Sustainability Report.
New natural gas storage systems that ensure high level of safety.
New system that reduces NOx emissions.
Product Research and Innovation activities grouped together under
the “Research and Innovation” function.
Launch of new methane-powered models.
Publication of the first Sustainability Report.
For many years, Fiat has recognized the strategic priority of
ENVIRONMENTAL POLICIES
sustainable development in designing new products and new
The Fiat Group Code of Conduct sets out environmental policy
have direct or indirect repercussions on the environment.
1992.
processes, as well as in all the measures and decisions that can
These principles are outlined in the Environmental Reports that
the Group has published every year since 1993, in a tradition of full
disclosure that has been carried on in the annual Sustainability
Reports issued since 2004.
guidelines that reflect those published in official documents since
In this context, the Group companies and their production sites
are responsible for the environmental impact of their products
and manufacturing processes, and make every effort to prevent
harmful consequences.
Environmentally-friendly situations must be pursued and consolidated
through the following fundamental guidelines:
Prevent pollution, using environmentally friendly materials by
preference.
Conserve resources, using a Design for the Environment approach
for all products and processes.
Minimize environmental impact, taking every stage of the product
and process life cycle into account.
Reduce waste generation, sorting used materials so that they can
be recovered, reused and recycled.
65
A team-based approach ensures that environmental needs are
ENVIRONMENTAL MANAGEMENT SYSTEM
built into every management decision.
Fiat’s Environmental Management System – or EMS – includes all
prepared by each Group Sector, and kept up to date at all times.
corporate activities can have on the environment and contribute
Environmental management goals are detailed in specific plans
Prepared with an eye to economic compatibility, these environmental
plans stem from constructive participation with public authorities
because the benefits they bring will translate into broader advantages
for the general public.
Everyone who works for or with the Fiat Group is involved in
these measures to ensure that the information provided to our
stakeholders is open, transparent and consistent.
In its manufacturing processes, the Group pursues ISO 14001
certification as a means of ensuring uniformity in organizational
the people, rules and actions designed to lessen the impact that
cost-effectively to achieving the goals set by management at each
manufacturing site.
Organizing regular internal and external audits is an integral part
of the Environmental Management System, applied at the Group’s
manufacturing sites.
These audits aim at checking that working methods and practices
comply with Group policies and with the mandatory and voluntary
rules detailed in the Environmental Management Manual adopted
at each site.
practices, procedures and methods for measuring parameters
by following the requirements mandated in internationally
recognized standards.
66
Auditing activities
The audit activities are carried out according to precise rules and
at set intervals:
annual audits:To ensure an impartial assessment, annual audits are
carried out both by the site’s internal auditors, who have received
special training in this area as well as in ISO 9000 system
requirements, and by Group auditors from outside the site.
annual and triennial audits: Annual and triennial audits are carried
out by external auditors from the certification bodies, who issue
the certificates needed to demonstrate that the requirements
indicated in the site manual are implemented in full.
Together, these audits help ensure that the Environmental
Management System’s strengths and shortcomings can be promptly
identified by comparing what is actually done at each site with the
rules and targets established for it.
FIAT AUTO - COSENE
Cosene is an Intranet-based information system launched
in 1999 for the integrated development of environmental
management systems at Fiat Auto manufacturing plants.
In 2000, the COSENE system was presented to ANPA, Italy’s
national environmental protection agency, in the course of a
meeting held in Rome to showcase Fiat’s activities and initiatives
in the environmental arena.
Now employed at all Fiat Auto production facilities, computerbased methods make it possible keep track of environmental
management data and parameters in real time, thus providing
a comprehensive view of the situation at all sites, as well as a
uniform basis for comparing them.The system consists of four
channels (MONITOR, SITENE, GesA and MAGENE) which
deal respectively with environmental management standards,
compliance checks, verifying and analyzing targets and results,
Improvement process
and data storage.
The Cosene system provides access to data on management
procedures for energy (NPE) and waste (CRL), and makes it
possible to view data breakdowns by plant, by operating unit, etc.
Through the information system, users have online access
to industry standards and best practices (models and examples
of procedures), and can keep systematic records of all energy
data and environmental information for manufacturing facilities
and processes.
By applying this computer-based environmental management
system, Fiat Auto has intensified its commitment to ecoefficiency,
which benefits from the system’s higher responsiveness and more
effective monitoring capacity. As a result, Fiat Auto now has a
As a result, immediate corrective action can be taken to remedy
any weaknesses in the system and prevent environmental problems
from occurring, or to reformulate improvement targets to boost
participation and achieve a higher level of cost effectiveness.
full, centralized view of the environmental performance shown
by all its plants.
Applying an online system also cuts operating costs by ensuring
that energy carriers are more effectively managed, and raw
materials and waste can be carefully reused and recovered.
The system also makes it possible to rationalize the management
procedures involved in obtaining environmental quality certification.
67
SIRIO CONSORTIUMDalla gestione delle emergenze antincendio
From battling the flames to averting ecological disasters
In 2005, Sirio became a publicly listed consortium with a
workforce of 1,460 people specializing in all aspects of safety,
security and ecology.
As part of the mission assigned to it by the Group, Sirio provides
services and consulting in all of its areas of expertise. Its activities
include:
Performing regular checks on all fire-fighting and ecological disaster
prevention systems to ensure they are effective and fully operative.
Formulating standards for regular and preventive maintenance,
an area where the Consortium also relies on qualified specialists.
Coordinating emergency response to fires and environmental
incidents.
In recent years, Sirio has built up the skills needed to support ISO
9000-14001 certification systems at the manufacturing sites
where these methods are applied.
Training
Supporting and developing Environmental Management Systems
requires that everyone working at the site involved, whether they
are employees or outside contractors, be appropriately informed
and trained in order to:
Promote a general culture of prevention, ensuring that required
procedures are put into actual practice, and
Guarantee that programs, improvement measures, objectives
and targets are widely understood and can thus be achieved.
To do all this, all personnel participate in meetings tailored to their
specific role in the plant organization:
Management and upper-level supervisors formulate strategies,
examine areas for action, and determine priorities.
Base teams stimulate their leaders in order to ensure that conduct
is consistent with working procedures and the associated activities.
Together, these measures promote facility-wide understanding of all
guidelines and the results that have been achieved.
Iveco Torino Axles S.G.A.:
Illustrated presentation of procedures
As part of this effort, Sirio has upgraded the monitoring and
alarm management technologies used in its control centres at
all manufacturing sites.
These facilities now house in specific synoptic panels all fire
prevention system controls as well as all of the general controls
used in managing systems at the plant.This in order to promptly
detect all potential malfunctions and nip disasters in the bud.
68
In 2005, 44,799 people partecipated in environmental training
programs for a total of 156,351 hours.
2005 - Training: Planning and Contents
Senior Managers – Middle Managers
Professionals
Environmental Policy
ISO 14001
– Organizational principles
– Activity planning
Assessment test
Total hours
Employees
ISO 14001
ISO 14001
Environmental Management System
Handling chemicals
List of internal procedures
Environmental factors
– Chemicals
– Air
– Water
– Waste
– Noise emissions
– Soil contamination
– Ozone depleting substances
– Potentially harmful substances
– Emergency management
People involved
Internal Auditors
Selective waste collection
Self-assessment checklist
– work areas
– operation and maintenance manuals
– Worker training, information and education
– Emergency management
– Risk detection and evaluation
Emergency response measures
Interpreting signs
Assessment test
Assessment test
6,250
36,082
People involved
Total hours
379
3,755
People involved
Total hours
38,170
116,514
69
ISO 14001 certifications
In 2005, 89 Fiat Group plants
were ISO 14001 certified (84 in
2004), including 40 plants in Italy
and 49 abroad. A further 14
plants are currently engaged in
the certification process.
Plants certified in Italy
at 12/31/2005
ATESSA (Chieti)
Fiat Auto SEVEL Light
Commercial Vehicles
BARI
Magneti Marelli - Modugno
Engine Control Systems
BOLOGNA
Magneti Marelli - Bologna
Magneti Marelli - Crevalcore
BOLZANO
Iveco D.V.D. - Bolzano
Defense Vehicles Division
FOGGIA
Iveco - Foggia
Light Diesel Engines
70
FROSINONE AREA
Fiat Auto Piedimonte S. Germano
Autoveicoli
Magneti Marelli - Cassino
(Fiat Auto Complex)
Suspensions
LECCE
CNH - Lecce
Tractor Loaders, Dozers,
Telescopic Handlers
MELFI (Potenza)
Fiat Auto S.A.T.A.
Motor Vehicles
Magneti Marelli Melfi
(Fiat Auto Complex)
Shock Absorbers
MILAN
Magneti Marelli - Corbetta
(Complex)
Engine Control Units and
Electronic Components
Magneti Marelli - Caivano
Exhaust Systems
Fiat Auto - Sheet Metal Dies
Sheet Metal Stampings
PIACENZA
Iveco - Torino N.E.F.
Engines
Iveco Astra - Piacenza
Commercial Vehicles for
Construction Vehicles,
Defence Vehicles
SULMONA (L’Aquila)
Magneti Marelli - Sulmona
Suspensions
Iveco - Torino Axles
Drive Axles, Beam Axles
VALLE UFITA (Avellino)
Iveco - Valle Ufita
Buses
VERRES (Aosta)
Teksid MPI - Verres
Magnesium Castings
Iveco - Torino Gear Boxes
Gearboxes
Plants in Italy engaged
TURIN AREA
in the certification process
at 12/31/2005
CNH - San Mauro
Crawler Excavators
MODENA
SUZZARA (Mantova)
Iveco Iveco - Suzzara
S Range
Teksid - Crescentino
Iron Castings
Ferrari - Modena
Body Shells
Magneti Marelli - Mirafiori
(Fiat Auto Complex)
Suspensions
TERMINI IMERESE (Palermo)
Fiat Auto - Termini Imerese
Motor Vehicles
Magneti Marelli Rivalta
(Fiat Auto Complex)
Suspensions
TURIN AREA
TOLMEZZO (Udine)
Magneti Marelli - Venaria Reale
Exhaust Systems
CNH - Modena
Components
Maserati - Modena
Assembly
MODENA AREA
Ferrari - Maranello
Design, Production and
Assembly of automobiles
and F1 race cars
NAPLES AREA
Fiat Auto - Pomigliano
Motor Vehicles
Magneti Marelli - Pomigliano
d’Arco (Fiat Complex)
Suspensions
Magneti Marelli SEIMA Tolmezzo
Lighting
TURIN
Fiat Auto - Mirafiori Bodywork
Motor Vehicles
Fiat Auto - Mirafiori Stamping
Sheet Metal Stampings
CRESCENTINO (Vercelli)
Magneti Marelli - Venaria Reale
Lighting Systems
Comau - Borgaretto
Body Welding & Assembly
Comau - Beinasco
Robotics & Final Assembly
Comau - Grugliasco
Powertrain Systems
Comau - Grugliasco
Injection Moulds
71
Foreign plants certified
at 12/31/2005
ARGENTINA
Cordoba - Fiat Auto
Motor Vehicles
BELGIUM
Zedelgem - CNH
Combines, Balers, Harvesting
Equipment
Hortolandia (Complex) Magneti Marelli
Electronic Systems and Engine
Control Systems
Lavras - Magneti Marelli
Shock Absorbers
Mauà - Magneti Marelli
Shock Absorbers
BRAZIL
Santo André (Complex) Magneti Marelli
Suspension Arms and Sintered
Arms
Betim - Teksid
Iron Castings
Sao Bernardo do Campo Magneti Marelli
External Motor Casing
Betim - Fiat Auto
Motor Vehicles
Amparo - Magneti Marelli
Exhaust Systems
72
Contagem - Magneti Marelli
Lighting Systems
Betim - Magneti Marelli Fiat
Auto Complex
Suspensions
CANADA
MPD Strathroy - Teksid
Magnesium Castings
CHINA
Ingrandes sur Vienne - Teksid
Iron Castings
Argentan - Magneti Marelli
Zhenjiang - Teksid
Iron Castings
Chatellerault - Magneti Marelli
Guangzhou - Magneti Marelli
Comau ETS Mecaniques de Castres
Comau Machine Tools
CZECH REPUBLIC
Jilhava - Magneti Marelli AL
Lighting
FRANCE
Bourbon Lancy - Iveco
Engine Assembly
SBFM Caudan - Teksid
Iron Castings
GERMANY
Ulm - Iveco
Heavy Commercial Vehicles
Brotterode - Magneti Marelli
Lighting Systems
Reutlingen - Magneti Marelli
Lighting Systems
INDIA
SPAIN
USA
POLAND
MALAYSIA
Comesa Barcelona - Iveco
Mechanical components
(drive axles, beam axles)
Sanford (NC) - Magneti Marelli
Plock - CNH
Combines and balers
Kingsport (TN) Magneti Marelli
Shock Absorbers
RUSSIA
New Delhi - CNH
Tractors
Penang - Magneti Marelli
Lighting Systems
MEXICO
Frontiera - Teksid
Iron Castings
Ciudad Juarez - Magneti Marelli
Lighting Systems
Tepotzotlan - Magneti Marelli
POLAND
Tychy - Fiat Auto
Motor Vehicles
Skoczow - Teksid
Iron Castings
Sosnowiec - Magneti Marelli
Lighting Systems
Dabrowa Gornicza Magneti Marelli
Exhaust Systems
Bielsko-Biala - Magneti Marelli
Suspensions
PORTUGAL
Aveiro - Teksid
Iron Castings
Valladolid - Iveco
S Range
Llinares del Valles Magneti Marelli
Lighting Systems
Santpedor - Magneti Marelli
Exhaust Systems
Barberà del Vallés Magneti Marelli
Electronic Systems
SOUTH AFRICA
Germiston - Magneti Marelli
Exhaust Systems
TURKEY
Bursa - Fiat Auto
Motor Vehicles
Bursa - Magneti Marelli
Lighting Systems
UNITED KINGDOM
Luton Bedfordhire - Comau
Comau Estil
Systems for the Automotive
Industry
Solihull-West Midlands - Comau
Comau Estil
Systems for the Automotive
Industry
MPD Strathroy - Teksid
Magnesium Castings
Tichy - Magneti Marelli
Suspensions
Ryazan - Magneti Marelli
Lighting Systems
Foreign plants engaged in
the certification process
at 12/31/2005
CHINA
Shanghai - Magneti Marelli
MM Complex
FRANCE
Angouleme - Magneti Marelli
Lighting Systems
SPAIN
Mecaner S.A. Urduliz-Vizcaya
Comau
Moulds for Sheet Metal
Components
Iveco - Madrid
Manufacture of off-road Trucks
Barcelona - Irisbus Iberica
Manufacturing of Chassis
for Buses
Le Mesnil Saint Denis Magneti Marelli
Lighting Systems
Saint Julien De Sault Magneti Marelli
Lighting Systems
Croix - CNH
Croix Cabs components
MEXICO
Queretaro - Magneti Marelli
Lighting Systems
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FIAT AUTO
Sevel - Atessa (Italy)
In 2005, engineering work was completed on the new paint circuit
for Ducato vans, which was put into production during the year.
The system employs Best Available Technology (BAT) to curb
Volatile Organic Compound (VOC) solvent emissions.Thus, new
systems which transfer paint more efficiently are used during
application, and high-solvent paints have been phased out in favor of
water-based products.This is an important example of how pollution
of the new paint shop, ensuring higher comfort levels in cold weather
as well as providing more heat for production purposes.
The system now consists of four heat generators rated at 13,835 kW
(11,900,000 Kcal/h), plus a fifth unit rated at 10,465 kW (9,000,000
Kcal/h).
Each of these units consists of a steam generator combined with
a heat exchanger that produces superheated water at a temperature
can be prevented at the source, by relying on special technologies
of 145°C. All equipment is provided with the most advanced safety
been emitted.There can be no doubt that this helps maintain better
technology.
such as afterburners and scrubbers to remove VOCs after they have
ecological balance since the reduction of the amount of solvents
used and of the energy carriers (electricity and natural gas) needed
to cut solvent emissions brings benefit to the environment
(atmospheric emissions, less waste, lower use of energy carriers).
The results achieved by the new system have been measured,
and meet the targets set at the design and development stage.
and control accessories contemplated by the best available
The natural gas supply system consists of a main header line located
outside the area from which the lines supplying the individual heat
generators are branched.The entire system was approved by the local
fire department, which issued the required Fire Prevention Certificate.
Atmospheric emissions are monitored and recorded using data
loggers that detect concentrations of carbon monoxide, oxygen and
The new paint circuit was also designed to reduce consumption
carbon dioxide, efficiency, load (% operation) and fume temperatures.
processing/demineralized water by treating and reusing effluent.
a day.
of direct materials (degreasing products and paints). It also uses less
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FERRARI
The plant’s heat generation system was upgraded to meet the needs
Environmental Responsibility Implementing Environmental Management Systems
The system operates 365 days a year and is monitored 24 hours
IVECO
Bourbon Lancy (France)
As part of implementing the Environmental Management System,
a new storage facility for chemicals was constructed.The facility
features a concrete containment basin covered with an impermeable
resin coating, and five storage tanks with a total capacity of 85,000
liters.The facility also boasts a specially equipped area for loading
Madrid (Spain)
As part of the ongoing improvements now being made with a
view to obtaining ISO 14001 certification in July 2006, the plant
has upgraded a number of its facilities.
At the 800 square meter chemical storage facility, for example,
the following work has been completed:
and unloading tank trucks, and a distribution system with overhead
A reinforced concrete platform was constructed to protect
the tanks to the areas where they are used throughout the plant.
A new metal roof and side walls were erected in order to
conduits and electric transfer pumps that move the chemicals from
Valle Ufita - Avellino - (Italy)
In 2005, works began at the Irisbus plant in Valle Ufita to restructure
the paint shop in order to prepare it for the introduction of the new
the soil and contain any spills.
protect stored materials and prevent rainwater contamination.
A new system for identifying and labeling stored materials has
been implemented in order to streamline handling procedures.
Chorus range of city buses.
The changes being made to the facility complement product quality
improvement measures, reducing environmental impact by replacing
the current solvent-based rust inhibitor application system with
a water based e-coating system.
Top coat enamel will be applied using robots instead of the current
manual spray guns.This will reduce the amount of raw materials
used in the painting process, thus lowering atmospheric emissions
and improving the work environment.
The new e-coating system is also equipped with a regenerative
ceramic afterburner that recovers thermal energy and eliminates
the pollutants produced by the stoving ovens.
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TEKSID
Teksid do Brasil - Betim (Brazil)
New facilities were introduced for producing hot metal for the plant’s
iron casting operations.
The new coal-fired cupola furnace can produce 25 metric tons
of iron per hour in a continuous cycle. To minimize its environmental
impact, cutting-edge technologies have been used to recover waste
resulted in more effective waste management by extending waste
sorting procedures and increasing the percentage of refuse that is
recycled or reused.
The Sector’s attention, however, was not restricted to its in-house
manufacturing process, but also focused on improving the
heat and remove dust from stack emissions.
environmental impact and energy savings achieved with its product,
consists of the gas generated as the iron liquefies.
automotive industry.
The major air pollutant from the cupola melting process, in fact,
Consequently, the treatments to which this gas is subjected before
it is released to the atmosphere include passing it through a
combustion chamber where carbon monoxide, one of its major
constituents, is burned off.
Burning carbon monoxide generates energy in the form of heat,
i.e., the production systems it makes for customers in the
For years now, in fact, Comau has pursued a continual improvement
strategy that hinges on developing innovative technologies that
reduce environmental impact, enabling its customers to benefit from
systems that are compatible with environmental stewardship. In this
area, Comau is working together with the Centro Ricerche Fiat in
which is reused to preheat the combustion air for the cupola
the LIDIVE project, which will produce a feasibility study followed by
This brings significant energy savings, thus enabling the cupola to burn
For its product lineup, moreover, Comau has formulated a
Dust is then separated from the gas using a dry filter to ensure
lubricant use and lowering noise emissions.
furnace.
less coal with no loss in performance.
compliance with regulatory requirements.
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COMAU
In 2005, implementing the Environmental Management System
prototype high-performance dismantling lines for end-of-life vehicles.
comprehensive policy for reducing energy consumption, limiting
MAGNETI MARELLI
Sao Bernardo, Santo Andrè, Hortolandia, Lavras (Brazil)
The Cofap Automotive Suspension unit’s plant in Betim obtained ISO
14001 certification during the year, bringing Magneti Marelli’s program
to certify all of its facilities in Brazil to a successful conclusion.
This achievement reflects a series of concrete activities that involved
all of the Brazilian plants in efforts to save energy and make
responsible use of water resources. In particular, the Cofap Automotive
Suspension plants at Sao Bernardo and Santo Andrè and the plants
in Hortolandia operated by the Powertrain and Electronic Systems
units upgraded or improved their wastewater treatment facilities
so that they not only comply with all regulatory requirements for
wastewater, but can also reuse effluent for processing purposes.
As part of this program, special meters were installed so that water
Penang (Malesia)
The plant achieved significant energy savings – equivalent to 8%
of its total yearly consumption – by installing a new Variable Speed
Drive (VSD) compressed air production system.
This type of compressor can vary motor speed instantaneously
to cope with fluctuations in the demand for compressed air while
maintaining a constant set pressure.
In practice, the amount of power used by the system is increased
or decreased automatically as air demand rises and drops. Unlike
conventional compressors which reach maximum efficiency only at
full load, do not adapt their speed immediately, and consume large
amounts of energy,VSD compressors maintain a close link between
the amount of energy consumed and the amount produced.
usage can be closely monitored.
As regards efforts to save electrical energy, an awareness-raising
campaign was inaugurated to alert employees to the need to use
electricity carefully, and selected areas of the plants were equipped
with volumetric sensors that turn lighting systems on and off
automatically according to need.
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CNH
Belleville - Solvent extraction system
Jesi (Italy)
Four new runoff collection tanks were installed, bringing the total
number at the site to seven.These tanks collect the first 5 mm of
rainwater runoff from the tractor parking and storage areas. Runoff
is held in the tanks for 72 hours to allow sediment to settle and
light contaminants to be separated, and is then passed through a
coalescing filter and separation system before being discharged in
the public storm sewers.
Also in 2005, the wastewater treatment plant was equipped with
a new metering system using zeolites and activated carbon which
provides better control over chemical oxygen demand (COD)
and surfactant levels.
Lecce (Italy)
At the Lecce facility, an automated regulation system was installed
Fargo - New fluorescent lamps
in 2005 which cut the amount of natural gas consumed by the
plant’s heating system by 13%.
Plock (Poland)
Taking its cue from the city of Plock - one of the first cities in Europe
to use this type of technology - the CNH plant installed an eco-drain
system for rainwater runoff from the area’s roads and parking lots.
The system uses microorganisms to break down oily compounds in
the runoff. At the same time, wet spray booths were installed which
use water to collect overspray. Chemical coagulants are added to the
water, thus making it possible to trap larger amounts of overspray
and extend the period in which the water can be used for cleaning
before it is treated and discharged.
Belleville (Pennsylvania, USA)
Outdated lamps (HID) were replaced with new high-efficiency
off-site for disposal. Now that residues can be extracted and reused,
savings in annual energy consumption and also improved lighting
was introduced, solvents could be used only once before being sent
the amounts of solvent that are discarded have been reduced by 75%.
This system has also reduced solvent procurement and disposal costs.
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Fargo (North Dakota, USA)
A system was installed to extract solvents for reuse. Before the system
fluorescent units (HBF – High Bay Fluorescent).Thus brought a 51%
quality - now more like natural sunlight.
In an effort to further enhance research and innovation activities, in
promoting the Group’s high-tech image.
2005 the Fiat Group created the “Research and Innovation” function,
In order to discharge his assigned duties and pursue set objectives,
role is to act as a guiding point for all research and innovation
team dedicated to innovation which is composed of upper echelon
with the Centro Ricerche Fiat and Elasis as its main players, whose
activities performed by the single Sectors (Fiat Auto, CNH, Iveco,
Magneti Marelli and Comau).This new function reports directly to
the Chief Executive Officer of Fiat S.p.A. and has the following
fundamental objectives:
overseeing multi-sectorial research and innovation, ensuring a
uniform approach and cost containment;
optimizing and facilitating the transfer of results achieved within the
engineering and marketing personnel from each Sector.
The Group’s two R&D companies, the Centro Ricerche Fiat and
Elasis, intensified their interactions with the operating Sectors.
Improved coordination of policies, objectives and initiatives made
it possible to rationalize skills and make the most of each centre’s
areas of excellence.
In 2005, R&D expenses totaled approximately 1.6 billion euros(1),
Group and guaranteeing synergies between the Sectors in projects
equal to about 3.5% of net revenues of industrial operations.The plan
promoting opportunities for public funding in the Group;
of approximately 5.9 billion euros. Overall, R&D activities involved
of common interest;
protecting and enhancing intellectual property;
CENTRO RICERCHE FIAT (Fiat Research Centre)
Environment, energy and sustainable development are the centre’s
priority research areas. Environmentally-friendly engines, innovative
vehicle structures, electronic chassis control systems, onboard electronic
systems, integrated transportation safety, environmental protection
and advanced manufacturing methods are the fields where the
Centro Ricerche Fiat concentrated its work in 2005, with the aim
of safeguarding the environment and the health of consumers.
In addition to its headquarters in Orbassano on the outskirts of
Turin, the Fiat Research Centre has branches in Trento, Bari, Foggia
and Catania, as well as an interest in the C.R.P. - Centro Ricerche
Plast-optica - Plastics and Optics Research Centre in Amaro
(Udine), a joint venture between the C.R.F., Automotive Lighting
and Agemont, whose work in the fields of optics and plastics is
instrumental in developing better lighting systems.
With a staff of approximately 890 employees, the C.R.F. made
significant progress during the year, with R&D output totaling 460
projects. Eighty new patent applications were filed, bringing the
total number of patents held by the Centre to over 1,400. A
further 1,000 patents are currently pending. In addition, the C.R.F.
was awarded 115 projects in the EU’s Sixth Framework Program,
confirming its leadership in European research.
(1)
the person in charge works in close contact with the multi-sectorial
covering the 2006-2008 period calls for R&D expenses for a total
approximately 13,200 people at 120 centres in Italy and abroad.
ELASIS
Elasis is a highly specialized research centre whose work addresses
technological innovation, complete vehicle development, mobility
and its environmental impact, and traffic safety.
The Centre has a staff of over 800 employees at its two sites in
Pomigliano and Lecce, both located in Southern Italy. It is provided
with sophisticated computer-aided design tools and advanced
physical and virtual testing equipment which are based on an ability
to develop and manage information systems that puts Elasis in the
front ranks of the world’s R&D centres.
In 2005, Elasis continued to pursue its strategic goal of forging
new links in the research/innovation system’s value chain and
of promoting local development. Withing the framework of this
activity, it participated with universities, private institutions and
consortia in basic research and training, by continuing to work on
the issues related to mobility and its environmental impact, and by
cooperating with employers’ associations and chambers of
commerce in Southern Italy to help the area’s SMEs make the
most of their skills.
Including R&D capitalized and charged to operations.
Environmental Responsibility Research and Innovation
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ACHIEVEMENTS BY EACH SECTOR
New cars registered in 2008 will thus emit an average of only 140
Fiat Auto
European car makers have already made significant strides towards
Emissions and Consumption
During the year, Fiat Auto rounded out the range of diesel passenger
cars equipped with the Multijet second generation common rail
this goal: in 2004, average CO2 emissions of new cars throughout
the EU were 161 g/km, down 2 g/km from 2003.
In 2005, 88% of the vehicles marketed by Fiat Auto boasted CO2
injection system. Introducing high pressure multiple injection is
emissions below the European average.
technology, as this new approach reduces exhaust emissions and
engine technology. Here, Fiat Auto developed new versions of its
a further leap forward in the evolution of diesel powerplant
noise while boosting performance.
The first models equipped with diesel particulate filters were also
put on the market. In this area, an innovative maintenance-free device
was developed that requires no additives for regeneration, as the
soot trapped by the filter is burned during the regeneration stage.
Particulate combustion is set off by controlled injections of fuel in the
exhaust - another of the capabilities of the new Multijet technology and is aided by the action of the noble metal catalysts deposited on
DPF diesel particulate
filter layout.
the particulate filter’s surface.
Regeneration is triggered every 800 to 2000 kilometers, depending
on driving habits and usage patterns.
The number of models equipped with diesel particulate filters will
be increased in the course of 2006.
As part of its long-standing efforts to reduce fuel consumption, Fiat
Auto has made major progress in complying with the voluntary
agreement drawn up in 1998 between the European Commission
and Euope’s automakers, whereby manufacturers committed
themselves to reducing emissions of carbon dioxide (CO2).
80
grams of carbon dioxide for every kilometer traveled.
To a large extent, this achievement was made possible by progress in
diesel engines, such as the 90 HP 1.3-liter 16-valve Multijet engine
presented for the first time on the Grande Punto. In addition to
featuring high pressure multiple injections, this engine also uses a
variable-geometry turbocharger to ensure outstanding vehicle
performance and low fuel consumption.
New spark ignition engines were also designed, adding new versions
to the FIRE family. In particular, a new 1.4-liter 8-valve engine was
developed which is equipped with high turbulence combustion
In recognition of its commitment to
environmentally friendly products and
processes, Fiat Auto was named
“Green Sponsor” of the Torino 2006
Winter Olympic Games, earning the
right to use the “Environment 2006”
logo. As part of its sponsorship of the
Games, Fiat Auto also provided 98
natural gas powered vehicles: 67 Fiat
Doblò minivans and 31 Fiat “Natural
Power” Ducato vans.
Reduction of CO2 emissions of European manufacturers
chambers and continuously variable valve timing.
FIat Auto, which sold over 24,000 vehicles in 2005, more than twice
emissions.
participated in events in several of the most important cities in Italy
This powerplant significantly reduces fuel consumption and tailpipe
Alfa Romeo introduced several new direct injection spark ignition
engines: the 1.9-liter 16-valve JTS, the 2.2-liter 16-valve JTS, and the 3.2liter V6 JTS, all using the JTS (Jet Thrust Stoichiometric) combustion
as many as in the previous year. In addition, Fiat Auto sponsored and
and elsewhere in Europe to promote the ecological advantages of
the “Natural Power” line.
system.This system injects a stoichiometric air/fuel mixture directly into
IVECO
consumption, and compliance with Euro 4 emissions limits. As a result,
Heavy-duty engines
the combustion chamber, ensuring excellent performance, lower fuel
the new engines are powerful, flexible and environmentally friendly.
Natural gas: the green alternative
At the same time, Fiat Auto continued to expand its range of
dual-fuel natural gas and gasoline cars and light trucks marketed
as the environmentally friendly “Natural Power” line. As part of this
project, the new Doblò and Doblò Cargo were put on the market.
The “Natural Power” line has been a major commercial success for
Layout of the New “Natural Power”
Doblò Cargo.
V engines
Production began of 800 kW engines for power generation and 880
kW engines for marine applications.The new 8-cylinder engines, with
an overall displacement of 20 liters, meet all European and US
Environmental Protection Agency emissions requirements.
Cursor engines
In 2005, Iveco started production of its Cursor 10 and Cursor
13 engines which satisfy Euro 4 and Euro 5 emissions limits.
Combined with exhaust gas aftertreatment systems featuring SCR
selective catalytic reduction, these engines equip Iveco’s Stralis trucks,
while the Cursor 10 powerplant will also be installed on buses sold
under the Irisbus name. In addition to satisfying the forthcoming Euro
5 requirements well before they come into effect in October 2008,
the Cursor engine-SCR aftertreatment combination consumes 2 to
5% less fuel than the earlier Euro 3-compliant versions.
At the same time, Cursor 8 engines designed for Irisbus’s Cityclass
and Arway buses went into production, and also meet Euro 4 and
FIAT AUTO – NATURAL GAS POWERED TAXIS
To support an initiative for replacing Milano’s aging taxis with
natural gas powered vehicles spearheaded by the municipal and
provincial authorities, the Lombardy regional administration, taxi
drivers’ associations, ANFIA, the Italian National Association of
Automotive Industries, and UNRAE, the motor vehicle importers’
association, Fiat Auto has agreed to extend favorable terms to
taxi purchasers.The initiative is part of a broader awareness-
raising effort staged by local governments to increase the use
of low environmental impact vehicles.
Euro 5 requirements with the SCR catalytic converter. In addition,
bus versions with the SCR-T catalytic converter/particulate filter
system are also available which eliminate 99.9% of particulates
from tailpipe emissions in addition to meeting Euro 5 limits.
In 2005, new off-road versions of the Cursor 10 and Cursor 13
engines equipping CNH farm machinery and tractors were developed
and put into production. All comply with both European and EPA Tier
3 emissions standards. Industrial and power generation version of the
same engines were also developed, and will be produced in 2006.
Production got under way of the marine version of the 405 kW
Cursor 8 and 566 kW Cursor 13 engines.
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Medium-duty engines
New engine family (NEF Torino)
In 2005, production began of the 6-cylinder 4-valve engines for off-
road applications complying with EPA Tier 3 standards and featuring
outputs ranging from 129 to 177 kW, while development was
completed of 4-cylinder engines with four valves per cylinder
(outputs from 74 to 104 kW) that also meet the new requirements.
Hy SPACE Project
The Hy SPACE Project is developing an HCCI (Homogeneous
Charge Compression Ignition) engine based on a Cursor 8
powerplant.The technology has been successfully tested at mean
effective pressures up to 8 bar.
GREEN Project
A range of engines for automotive applications on Iveco’s Eurocargo
In the European GREEN Project, Iveco is working together with the
Euro 4 and Euro 5 emissions limits.
a method for increasing the specific horsepower of diesel and natural
emissions standards and boost performance up to 220 kW for the
developed which is capable of operating with combustion pressures
vehicles and Irisbus buses was developed.The new engines meet
The Tector commercial vehicle engines satisfy the upcoming Euro 5
6-cylinder version and 134 kW for the 4-cylinder version, while
consuming from 3 to 6% less fuel than their Euro 3-compliant
predecessors.
Light-duty engines
Sofim (Foggia)
other partners such as the Centro Ricerche Fiat and AVL to develop
gas-fueled engines. A high-MEP Cursor 10 engine is now being
of 250 bar with low emissions.
IRISBUS
During 2005, Irisbus made extensive efforts to satisfy the stringent
EEV (Environmentally Enhanced Vehicles) emissions standards that
Production started of F1C engines equipped with EGR (Exhaust
Gas Recirculation) and diesel particulate filter (DPF) which meet
forthcoming Euro 4 emissions limits and will be installed on Iveco’s
100 kW Daily vehicles.
Euro 4-compliant versions of the 71 to 100 kW F1A engines and the
107 to 130 kW F1C engines are now being developed for light Daily
and Ducato vehicles weighing up to 3.5 metric tons.The new engines
will be equipped with EGR, oxidization catalytic converter and optional
diesel particulate filter In addition, other versions in the same power
range are being developed for heavy trucks weighing up to 6.5 metric
tons, and will be equipped with EGR and diesel particulate filters.
EXPERIMENTAL VEHICLES
Turin’s CityClass Fuel Cell bus, the first hydrogen-powered bus to
be registered in Italy, is now carrying passengers through the city
streets.The hydrogen-powered bus passed its safety trials with
flying colors in 2005, enabling it to enter passenger service: it was
used during the Torino 2006 Winter Olympic Games.
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can now be achieved only by the best natural gas-powered vehicles.
In addition, Irisbus reinforced its position in the electric vehicle sector
by delivering five electric Europolis buses to the city of Lyon.
CNH
Together with its engine manufacturers partners including Iveco,
CNH devoted significant resources to developing technologies for
reducing engine emissions to meet current and future standards, and
in particular to satisfy Tier 3 requirements for machines equipped
with engines rated at 130 kW and above.This innovation involves
range-topping excavators and crawler dozers, including Case models
CX330, CX350 and CX700, and New Holland’s E265, E305 and E385.
Similar work addressed farm machinery with Tier 3 engines rated at
gasoline tank that is part of the current system.The innovation
consists of integrating the previous system with a heater that raises
the alcohol’s temperature up to 80° before injecting it in the
combustion chamber. With the ECSS system, the driver no longer has
to worry about filling the supplementary tank. Above all, the system
enhances engine performance, cutting emissions to meet the Brazilian
standards slated to come into effect in 2009.Together, the new
technologies have positive social and environmental, as well as
economic, repercussions. In particular, using alcohol as fuel contributes
over 130 kW, such as the Case IH Magnum and the New Holland
significantly to reducing the greenhouse effect, as the carbon dioxide
orchards, New Holland has developed cabs equipped with special
during sugar cane photosynthesis. For any given performance level,
T8000 series. For tractors used for parasite control in vineyards and
filters that treat the air before it is released, thus ensuring healthier
working conditions and safeguarding the environment.
MAGNETI MARELLI
Powertrain Brazil
The Powertrain unit developed an electronic system dubbed Tetrafuel which takes the capabilities of the earlier Bi-fuel system even
further, enabling the engine to run on four types of fuel: gasoline,
alcohol, AEAC (Brazilian anhydrous ethanol blendstock) and natural
gas.The unit also developed the Ethanol Cold Start System or ECSS,
the natural outgrowth of its earlier SFS Software Flexfuel Sensor
technology.The new system enables the engine to be started cold
even with 100% alcohol, without having to rely on the supplementary
emissions involved have already been absorbed by the atmosphere
moreover, burning alcohol releases less carbon dioxide to the
atmosphere than conventional fuels.
COMAU
In the course of 2005, the Powertrain unit participated in the
Automotive Components Service Manufacturing R&D project as part
of a nationwide program promoted by Comau in cooperation with
the Italian National Research Council.
In particular, design work was completed on the new MT3 Evolution
machining centre, and a prototype will be produced by mid-2006.The
new design helps reduce cutting fluid usage thanks to dry machining
technology and MQL minimum quantity lubricant techniques. In addition,
careful structural design reduces the machining centre’s noise emissions.
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Greater energy efficiency was also achieved by reducing the
weight of moving parts, while structural sizing with highly
sophisticated computer-based methods maximized static and
Less maintenance, and fewer lubricants, ferrous metals and other
non-end-of-life materials to be disposed of.
dynamic stiffness.
Roller hemming can be applied, for example, to a manufacturing
a prototype modular machining system that is outstandingly easy to
robot driven by six motors replaces the conventional hemming
In another important achievement, the Comau unit designed and built
process for three different models of vehicle door. Here, a single
install and features high-performance workpiece handling systems.
setup with three presses and the associated fixtures using up to
as the high level of efficiency they achieve in energy consumption
In this case, moreover, the three prep stations that precede final
The use of workpiece handling robots is significant in this respect,
is matched by an ability to handle an extremely wide range of
workpiece weights. Another factor that makes these systems
environmentally friendly is their use of electromechanical
workpiece clamping systems instead of the convention hydraulic
types which are more prone to leakage and can thus
contaminate the environment.
At the Body Welding unit, the new assembly solutions that were
developed or under study in 2005, and which will provide end
Roller Hemming station
prototype
customers with significant benefits in terms of reducing the
environmental impact, included:
Roller Hemming
Robot Framer
Both systems use robots to ensure high flexibility while drastically
reducing mechanical content and the associated controls.
From the environmental standpoint, this provides the following
benefits:
Lower space requirements and consumption of electrical energy;
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Less noise;
thirty motors, but provides the same processing capabilities.
hemming – and which employ a total of twelve pneumatic cylinders -
can be eliminated, given that the robot’s flexibility makes it possible to
perform the pre-hemming operation at the main station. As another
major advantage of this technology, the robot and the hemming fixture
can be reused for future closure panel hemming operations, so that
disposal is no longer a problem.
Towards the end of 2005, development work also began on Comau’s
robot framer. Among its expected benefits, the robot framer will be
Layout of a robot framer station
able to eliminate an entire framing station, where the main parts
of the vehicle body shell are pre-assembled.
Consequently, it will be possible to use the same equipment both
to load body sides and to tack weld the body shell.
Implementation of EU regulations
FIAT AUTO
Occupant compartment air quality
For the models launched in 2005, particular care was devoted to
guaranteeing the quality of the air in the occupant compartment.
Thus, a number of components were tested using an electronic nose,
an instrument that makes it possible to achieve fast, objective
screening of the olfactory quality of our cars.
Recyclability
standardization effort involving the entire automotive world, the
GADSL facilitates communication and exchange of information
regarding the use of certain substances in automotive products
throughout the supply chain.
GADSL - GLOBAL AUTOMOTIVE DECLARABLE
SUBSTANCE LIST
Information about the list and downloadable documents are
available at www.gadsl.org
A major effort was made to increase the recyclability of the new
models. For the Grande Punto, for instance, extensive use of singlematerial technologies has already made it possible to meet the
regulatory constraints mandated by the new European ELV Directive,
which will require that 95% of the total weight of vehicles registered
from December 2008 onwards be reusable and recyclable.
End-of-Life vehicles
To implement the requirements outlined in the European Union
directive governing end-of-life vehicles, Fiat Auto has promoted
a network of vehicle dismantlers, and continues to update the
information systems developed to optimize dismantling procedures
and keep track of the materials used in vehicle components:
the International Dismantling Information System (IDIS), and the
MAGNETI MARELLI
Life Cycle Analysis
Working together with the Centro Ricerche Fiat and supported by
Magneti Marelli Holding, the Electronic Systems business unit initiated a
study of the instrument panel for the Fiat Idea/Lancia Musa.The study’s
goal is to develop an advanced, integrated Design for the Environment
approach for the Fiat Group’s products which also takes the EU’s
recyclability requirements for end-of-life vehicles into account.
The new method makes it possible to identify and quantify the
environmental impact of the raw materials and energy used in all
stages of manufacturing each component and in its subsequent
service life. From the earliest stages of design, this knowledge
International Material Data System (IMDS).The IDIS system provides
provides a significant competitive edge in guiding strategic
the IDIS consortium brings together 22 vehicle producers and
The experience gained through this project will benefit all Magneti
dismantlers with a dismantling manual in electronic format. Currently,
provides information about approximately 1000 different models.
For the IMDS system, the year 2005 was a turning point: the
number of data sheets it manages topped 40,000 (more than double
the 18,000 totaled last year), bringing coverage to 90% of new
models.The system will thus make it possible to take up the new
environmental challenges to be faced in the coming years, both as
decisions and promoting cost-effective environmental stewardship.
Marelli business units, and will be put to good use in designing
components that meet forthcoming European recyclability
requirements even before they come into effect.
Chatellerault (France)
Corbetta (Italy)
regards materials – where Fiat will eliminate hexavalent chromium
The Electronic Systems business unit launched the “Lead Free”
REACH, the European Union’s draft law on hazardous chemicals.
out, such as monitoring of suppliers and the introduction of new
in July 2006, ahead of the mandated deadline – and as regards
The year also saw the creation of the Global Automotive Declarable
Substance List (GADSL).The result of a year-long global
project to limit the lead content of its products.The activities carried
products and types of printed circuits, enabled production lines to
comply with new requirements that call for the use of tin, silver and
Environmental Responsibility Implementation of EU regulations
85
copper based solders. At the Chatellerault and Corbetta plants,
country concerned no later than October 30, 2007.
machine are now operating.
(BAT) be applied, i.e., those that the licensing authorities have
a total of three new soldering furnaces and one wave soldering
These measures will enable the Electronic Systems unit’s products
to meet ELV reuse and recovery requirements.
IVECO
Iveco Daily – Environmentally compatible product and process
All Iveco sites involved in producing mechanical components for the
Daily have been certified to ISO 14001 by:
V.C.A. – Vehicle Certification Agency of the UK Department
for Transport
Cermet of Bologna.
A full 92% of the materials used in the vehicle as a whole – the Daily
chassis-cab unit – is reusable and recyclable (1,750 kg out of a total
weight of 1900 kg): well over the 85% that the European Union ELV
Directive 2000/53 requires for the period from 2006 to 2015.
Integrated Pollution Prevention and Control (IPPC)
Several Fiat Auto, Iveco, CNH and Magneti Marelli sites are involved
in implementing the requirements of the EU directive on integrated
pollution prevention and control as part of the move to transpose its
principles into national legislation.The IPPC Directive’s main purpose
is to ensure that operators of industrial installations take all necessary
measures to protect the environment, e.g., reducing emissions to air,
water and soil, and limiting the waste generated by the installation.To
this end, industrial installations must obtain an authorization – called
an environmental permit – from the competent authorities in the
86
Environmental Responsibility Implementation of EU regulations
The IPPC Directive also requires that the Best Available Techniques
determined to be most effective and efficient.
BATs will be determined on the basis of meetings and exchanges
of information between all parties involved.
In Italy, this method breaks new ground, as it involves a transition
from a system based on command and control, to a true
management system that reflects the methods developed in
environmental certification processes.
Consequently, the Group’s adoption of the ISO 14001 system for its
manufacturing processes was a strategic decision that anticipated the
introduction of legislative requirements. Both systems, in fact, pursue
the same goal: preventing pollution by adopting the best processing
technologies, rather than simply shifting environmental impact from
one area to another.
In line with Italy’s National Research Program and the priorities
of the EU Sixth and Seventh Framework Programs, the Fiat Group
participated in the call for proposals issued by the Italian Ministry
FUEL EFFICIENT LOW-EMISSION POWERPLANTS
Diesel engine research
of Education, Universities and Research in connection with the
Current research aims at achieving the significant reductions in
This participation reflects the strategies fielded by the Group in
2008-2015, when fuel-neutral emissions standards will require that
Ministry’s major goals.
recent years to promote safe, environmentally friendly mobility and
to respond to such high-priority challenges as better fuel economy,
lower emissions, and greater safety while improving our edge over
emissions needed to satisfy the European Union’s goals for
mandated emissions levels be met regardless of the type of fuel used.
The first step towards meeting these goals must be made within the
decade, and will involve cutting oxides of nitrogen by around 20%
leading international competitors.
compared to the levels permitted by the regulations that came into
proposals were approved in which Group companies will provide
matter will also be required: so drastic as to call for the use of a
At the end of the Ministry’s assessment process, thirteen project
coordination in the areas of powerplants, transportation and innovative
technologies.The projects will get under way during 2006.
force on January 1, 2005. Drastic reductions in diesel particulate
special filter – the Diesel Particulate Filter, or DPF – to trap these
exhaust emissions on all automotive applications. In addition to this
commitment to reduce pollutant emissions, an equally determined
effort is being made to reduce fuel consumption, and hence CO2
output, through a voluntary agreement between the European
The Fiat Group towards a safe and ecological mobility
Commission and ACEA, the European Automakers Association.
Environmental Responsibility Safe, environmentally friendly mobility
87
This goal is being pursued together with continual improvements
In 2005, this work led to significant advances in optimizing
peak power that add to both safety and driving enjoyment.
the actuator and control architecture made it possible to achieve
in performance, such as the increases in low-end torque and
Current technological developments include:
Further advances in electronic fuel injection control, which are
essentially based on continuing improvements in the performance
of the injection system’s hydraulic components combined with better
functions and bringing down costs. Architectural improvements to
better system integration, paving the way to applications on smalldisplacement engines where size and cost are vital considerations.
For the control system in particular, an integrated architecture was
developed which makes the most effective use of valve control
algorithms for controlling fuel delivery to the combustion chamber.
potential but is also significantly simpler and less expensive.
in order to reduce pollutants in the combustion chamber.
Multiair technology in 2008. In 2005, a feasibility study was also
based on the use of innovative technologies such as low-pressure
Group’s compact and subcompact cars that will ensure rock-bottom
Further advances in optimizing the combustion process
Further advances in integrated exhaust gas recirculation control,
EGR and electronic valve control.
Further advances in the filtration systems used to trap particulates
emitted by the engine, which focus on optimizing the filter
regeneration process.
Spark ignition engine research
Researchers are working to reduce fuel consumption and CO2
emissions while improving the spark ignition engine’s performance
and driveability – all without sacrificing its ride comfort, and
leveraging the reliable, low-cost exhaust gas aftertreatment
technologies that are already available today.
Fiat Auto’s product strategies call for rolling out the integrated
launched for a space-saving small-displacement powerplant for the
CO2 emissions and the kind of sparkling performance combined
with great fuel economy needed to make cars fun to drive but easy
on the pocketbook.
Natural gas engine research
Natural gas technology is now firmly established on the public and
private transport scene in our major cities.Though this is to some
extent due to tax incentives, it is also because natural gas propulsion’s
benefits to air quality are becoming clearer every day – like the air itself.
Today, natural gas powers every imaginable kind of vehicle, from
no-nonsense economy cars to garbage trucks and articulated buses.
This is an area where the UNIAIR electro-hydraulic valve control
Though natural gas engines already satisfy all the major requirements
focus of the Group’s product engineering work.
improvements are on the cards which will make their low emissions
technology can make a major contribution, and is thus a prime
for low environmental impact as regards PM, NOx and CO2, further
FUEL EFFICIENT ULTRA LOW EMISSIONS NATURAL GAS ENGINES
Working closely with Fiat Auto, Iveco and Irisbus, the Centro Ricerche Fiat has developed new supercharged engines for commercial
use which not only cut natural gas consumption through their effective use of downsizing techniques, but also offer higher performance.
At the same time, new exhaust gas aftertreatment systems were developed which bring existing natural gas engines into line with the
most stringent emissions standards mandated by the European Union: the Euro 4 limits for passenger cars, and the EEV targets for heavy
duty truck and bus engines.Thanks to these new technologies, natural gas engines have the lowest environmental impact (in terms of both
tailpipe emissions and carbon dioxide output) of any kind of powerplant on the market today, while reaching levels of performance that
put them on a par with engines powered by conventional fuels.
88
NATURAL GAS PROJECT
FIAT PANDA HYDROGEN
continued.This project is an Italian initiative that got under way in
propulsion systems. After the Seicento Elettra H2 Fuel Cell and
In 2005 activities connected to the “Natural Gas Project”
December 2001 with a Program Agreement signed by the Italian
Ministry of the Environment, Fiat and the Italian oil industry
association (Unione Petrolifera). Designed to increase demand
for natural gas powered vehicles, the project provided purchase
incentives for businesses//professional operators who reside or
do business in the 955 Italian municipalities participating in the
program.The Agreement also allocated funds for extending the
country’s network of refueling facilities. At December 31 2005,
there were 515 natural gas refueling stations (44 more than in
2004) while another 47 were under construction.
even lower and, by improving their efficiency and cruising range,
make up for the fact that gas refueling stations are still few and far
between. Bringing down consumption and developing more efficient
exhaust gas control systems will be key factors in this effort.
The Orbassano laboratories are continuing to develop fuel cell
the Seicento Hydrogen, the Panda Hydrogen has now made its
debut.
With the fuel cell engine neatly stowed away beneath the floor
pan, the Panda Hydrogen retains all of the distinctive features
of the New Panda’s occupant compartment, comfortably
accommodating the driver and three passengers.
At full power, the vehicle reaches a top speed of over 130 kph
and can accelerate from 0 to 50 kph in 7 seconds. Grade
driveaway capability is 23%.The hydrogen tank, with its total
volume of 68 liters, gives the Panda Hydrogen a cruising range
of over 200 kilometers in stop-and-go city traffic.
Refueling, moreover, takes less than five minutes: much the same
as a natural gas-powered car.The Panda Hydrogen will serve as
a basis for the construction of prototypes that will be used for
testing on small fleets, that starting in 2006 will be developed in
cooperation with the Lombardia and Piedmont Regions.
PANDA NATURAL POWER
Fuelled with compressed natural gas, this version of the Fiat Panda, that will go on sale at the end of 2006, promises to be the new
benchmark in sustainable urban mobility.
The floor pan, derived from the 4x4 version, houses two separate natural gas tanks with a total capacity of 70 liters. Compared to the
Fiat Punto now in production, cruising range is increased by 20%.
The two fuel tanks are so well integrated that the car offers just as much room for passengers and luggage as the original version.
89
VEHICLE ARCHITECTURE
Comfortable vehicles
Fiat’s primary research goal is to make continuing improvements
Comfort is essential to driver alertness and safety, and depends on a
improvements are brought about by designing and developing
seating, readily understood controls, full access to information, and
in comfort levels, ease of operation and active safety.These
innovative vehicle structures, chassis control systems, and external
control sensors.
Introducing new systems that could potentially involve an increase
in the vehicle’s weight and hence in its fuel consumption calls
for particular attention in choosing materials. At the same time,
innovative processes must be developed so that overall vehicle
weight can be reduced.
number of factors: effective climate control, ergonomically designed
low vibration and noise levels.
Research focuses on continual improvements in all of these factors
in order to provide a safe, comfortable in-car environment while at
the same time increasing the vehicle’s efficiency.
Lightweight vehicles
Vehicle downsizing contributes significantly to reducing fuel
consumption, and makes it possible to compensate for the weight
Safe vehicles
Integrated safety – an approach which takes into account the vehicle,
the driver and the infrastructure– is pursued through a combination
of impact absorbing materials and architectures (passive safety),
intelligent occupant restraint systems and advanced driver aids based
increases associated with the ever more lavish equipment levels
featured on today’s cars. Research is striving to achieve the best
compromise between downsizing and cost containment.
Work now being carried out in this area includes studies addressing
the use of new high strength steels for vehicle structures, and
Ergonomic and safety tests
in Fiat laboratories and in virtual
environments.
on on-board sensors and communication with road infrastructures
realization of thermoplastic and metalplastic components for the
In this area, Fiat researchers have developed sensor systems that
In addition to careful selection of materials, this research addresses
(integrated active and preventive safety).
inform the driver of approaching obstacles as well as operating and
environmental conditions, intuitive and predictable driver assistance
functions, and ergonomic feedback and control systems, some of
which employ by-wire technology (without mechanical connections).
movable parts (doors) and interiors (dashboards and seats) of vehicles.
innovative architectures that make the best use of each material’s
properties, forming and assembly processes, and design optimization
using simulation techniques.
The subsystems constructed as a result of this work have
demonstrated that weights can be reduced by 10% at a cost of less
than one euro for each kilogram of weight saved.
90
FIAT AUTO:THE GRANDE PUNTO
Fiat’s commitment to safe, ecological mobility is clear from
MAGNETI MARELLI AUTOMOTIVE LIGHTING: INFRARED
LIGHTING SYSTEM
The chassis was designed for maximum impact absorption.
safety systems for the automotive market with the world’s first
the Grande Punto, which now stands at the top of its class.
The car is equipped with two-stage activation airbags, seat belts
with pretensioners and load limiters, whiplash-preventing head
Magneti Marelli made significant progress in developing active
infrared lighting system for night vision enhancement: a major
contribution to safety, since 50% of all traffic accidents occur
restraints, sidebags, window bags and driver’s side knee airbags.
at night.
control systems to help prevent accidents, including:
to drivers of oncoming cars.
In addition, it features sophisticated electronic vehicle dynamic
ABS (Antilock Braking System), one of the most advanced
systems of its kind on the market today.
EBD (Electronic Brake-power Distribution).
ESP (Electronic Stability Program), which corrects underor oversteer to keep the vehicle on its intended course.
Hill Holder that stops the car from rolling backwards when
starting on an upgrade.
ASR (Anti-Schlupf-Regulierung), an automatic slip control
The technology uses a constant IR high beam, which is invisible
This makes it possible to drive using the low beam, but see just
as well as if the high beams were on. At speeds over 15 kph, the
infrared system is activated and illuminates the road with light
invisible to the human eye.
A CCD (Charge Coupled Device) camera captures the images
relayed by the system’s IR sensors, which are then converter in
a format that the driver can view on a display in the vehicle.
As the system is sensitive to heat radiation, it enables the driver
function which optimizes traction at any speed.
to identify living bodies, as well as static objects that could be
prevent loss of control and skidding as a result of abrupt
This innovation is another addition to the range of “smart”
MSR (Motor Schleppmoment Regelung), which cuts in to
downshifts.
a potential hazard or lead to a collision.
headlamps that can adapt as driving and lighting conditions
change: a range that includes high intensity discharge xenon and
bi-xenon headlamps that leverage the advantages of xenon light
for both the high beam and low beam functions, producing more
than twice the luminous flux of a convention unit while cutting
power consumption by one third, and LED taillamps that combine
high lighting efficiency with low consumption, outstanding
ruggedness and practically unlimited service life, thus drastically
reducing replacement and maintenance costs.
91
EUROPEAN SAFETY PROJECTS
The Centro Ricerche Fiat coordinated the work of 51
CENTRO RICERCHE FIAT:THE INFONEBBIA FOG
WARNING PROJECT
which aims at developing a cooperative system for preventing
technologies that can help make transport systems efficient,
international partners in the integrated EU SAFESPOT project,
accidents and improving traffic safety. “Smart” cars will be able
to dialog with “smart” highways, exchanging information that
The Centro Ricerche Fiat continued to work on innovative
rational and safe. Examples include the ITS vehicle-infrastructure
cooperation technologies which, by optimizing the use of existing
will help drivers avoid accidents.The project was approved
infrastructures, improve traffic safety and reduce congestion
the Italian test site set up to validate prototype systems.
and control strategies.
by the European Commission in 2005. ANAS will coordinate
The SAFETUNNEL project developed vehicle-infrastructure
cooperative systems designed to improve safety in tunnels.
A telematic system installed on heavy vehicles detects any
malfunctions of on-board systems, identifying potential fire
(1)
(2)
and environmental pollution, thanks to coordinated information
As part of the ongoing cooperation between the Centro Ricerche
Fiat and ANAS, the Italian national highway administration, the
Infonebbia Fog Warning System test site on the Torino-Caselle
highway was put into service during the Winter Olympics.The
site is integrated with the Torino 2006 Traffic Operative Centre
hazards caused by critical parts such as the brake system.
mobility and emergency management system.
wireless network, alerting drivers of any such problems and
safety aids: technologies that check on visibility, devices for keeping
A control centre outside the tunnel monitors vehicles via a
stopping malfunctioning vehicles from entering the tunnel.
The control centre also transmits information regarding
recommended speed and distance from the vehicle ahead.
This information can either be viewed by the driver, or used
to increase or decrease the vehicle’s speed.
The integrated system was tested on Iveco trucks in the
Several kilometers of the highway were equipped with intelligent
road users informed, systems for detecting and announcing traffic
jams and a control centre that handles wireless monitoring for
the entire test site. Four “safety cars” equipped with radar and
telematic systems ply the road in order to provide assistance to
drivers in potentially critical conditions.
Frejus tunnel between Italy and France.
(1)
(2)
92
Projected benefits of ITS cited in the White Paper “European Transport Policy for 2010: time to decide” include a 10-15% improvement in safety thanks to coordinated information
and control strategies.
Projected benefits of ITS cited in the White Paper “European Transport Policy for 2010: time to decide” also include a reduction in travel times in the order of 20% and a 5-10%
increase in network capacity.
GRANDE PUNTO: A SHOWER OF AWARDS
The Grande Punto won the “2005 Golden Steering Wheel”,
1.3 MULTIJET: INTERNATIONAL ENGINE OF THE YEAR FOR
2005
Germany’s most prestigious auto prize, awarded by a jury of car
The “International Engine of the Year” award for 2005 was assigned
the weekly “Bild am Sonntag”, the prize is now in its thirtieth year,
Technologies plants and developed from innovations and patents of
experts, show business celebrities and racing drivers. Organized by
and every year awards a model in each of four different categories.
The Grande Punto won the trophy in the Compact category.
Nearer home, UIGA, the Italian Association of Automotive Journalists,
to the 1.3 Multijet engine, currently in production at Fiat Powertrain
the Centro Ricerche Fiat.
MAGNETI MARELLI:WORLD EXCELLENCE AWARD 2005
elected the Grande Punto “European Car 2006”, an award assigned
Out of 52 global suppliers from 22 different countries, Magneti
technology, value for money and styling.The prize was presented
carmaker’s 2005 World Excellence Award.This award recognized the
to cars built and sold in Europe that provide the best mix of
at the UIGA Motor Day, held in Riccione on November 12 and 13.
The car also received critical acclaim in France, where one of the
major consumer-motorist groups hailed the Punto 1.2 as the “best
city car”. Results of tests on the car were published in the monthly
Marelli was the only company operating in Brazil to receive a major
exemplary achievement in new consumer-focused technology that
Magneti Marelli made with its innovative Multifuel Flex system.
MAGNETI MARELLI: GOLD SAFETY AWARD
“60 Milions de consummateurs”.
After assigning the Silver Safety Award last year, the North Carolina
EuroNCAP rating.
presented annually to companies whose injury/illness rate during the
As regards safety, the Grande Punto received the prestigious 5-star
FIAT CROMA: FIVE-STAR SAFETY
The Fiat Croma, like the Grande Punto, achieved a 5-star EuroNCAP
rating, ranking top of its class in safety and confirming Fiat Auto’s
attention to all of the aspects connected with driver and passenger
Department of Labor gave Magneti Marelli its Gold Safety Award,
previous year was substantially below the state industry rate. Magneti
Marelli’s success in achieving high levels of occupational safety and
health was achieved through company-wide teamwork.
COMAU: OSCAR MASI 2005
protection.The model’s high rating, in fact, springs from the care
Comau’s new AgiLaser laser welding system, based on research by
factoring in the speeds at which impact can occur, the many types of
technologies.
taken by its designers, who examined every possible type of accident,
obstacle that can be involved, and the need to safeguard occupants
of all shapes, ages and sizes.This work called for a total of eighteen
the Centro Ricerche Fiat, received the award for new production
COMAU: ENGELBERGER ROBOTICS AWARDS
thousand computer hours, 120 crash tests, one hundred crash
The robotics industry’s highest honor, which recognizes significant
subsystems.Ten new types of performance standard were also
Education and Leadership, was presented to four of its pioneers –
simulations on the HyGe sled, and 200 tests on components and
developed, and eight codesigner/suppliers who specialize in passive
safety were brought on board.
achievements in the areas of Application,Technology, Development,
including Comau in the Application category – at the 36th International
Symposium on Robotics in Tokyo. Organized every year since 1977
by the Robotic Industries Association, the prize is named after the
“father of robotics”, Unimate inventor Joseph F. Engelberger, who
presented the award to each of the recipients.
Environmental Responsibility Acclaim for the Group’s work
93
REPORTING CRITERIA
The environmental performance indicators given below are based
on the set of metrics and measures outlined in a guide prepared
Specific energy consumption, expressed in ton of oil equivalent
(TOE) per million euros of manufacturing costs.
by the Group and used since 1992. Periodically, the Group’s
Specific water consumption, expressed in cubic meters of
of management parameters to Sector Coordination, thus making it
Specific waste generation, expressed in metric tons of waste
for economic and environmental efficiency have been achieved.
Waste recovery and recycling, i.e. the ratio of the amount of
manufacturing sites submit the data needed to gain an understanding
possible to compare the different units and determine how goals
Data which is most significant for this purpose is complied annually
by the sectors and sent to Fenice S.p.A.(1)
Fenice S.p.A. then consolidates this data for inclusion in the
Sustainability Report following a method that has been in use since
the first Environmental Report issued in 1992.
water per thousand euros of manufacturing costs.
per million euros of manufacturing costs.
waste recycled to the total amount of waste generated during
manufacturing, multiplied by one hundred.
Data source: Unless otherwise indicated, data were provided
by each Sector’s accounting and control services.
For Italian plants, levels of activity are gauged on the basis of
expressed simply by the water and energy it uses and the waste it
cost of labor, amortization and depreciation, and energy costs.
without calculating indexes. Using monetary parameters becomes less
overall manufacturing costs calculated as the sum of three variables:
We believe that this parameter is the most effective starting point
for our manufacturing plants in Italy, as it is readily calculated and
can be adjusted to allow for inflation and extraordinary events.
This approach is less appropriate for Comau, most of whose work
involves designing and installing facilities at sites outside its own
factories. Consequently, the company’s level of activity cannot be
DEFINITION OF TERMS
Water intake: The amount of intake water metered at
manufacturing facilities and taken from municipal or industrial
supplies, surface water, or on-site wells.
Water use: The amount of water needed for manufacturing
processes. In plants where waste water is not recovered and
reliable when determining trends and making comparisons that involve
manufacturing operations in different countries, as differing rates of
inflation and fluctuating currency exchange rates can lead to apparent
changes in performance indicators that are not in fact caused by
environmental factors. Consequently, the information shown for
plants outside of Italy does not include indicators based on monetary
units. It should also be noted that the data for Ferrari and Maserati
continue to be presented together for 2005.
Manufacturing costs at Italian plants
(millions of euros, at constant prices)
Sector/Company
Fiat Auto
process. It does not include water effluents and emissions to air.
CNH
Materials that are reused in the manufacturing process at the
same plant that generated them are not regarded as waste.
1)
generates.These metrics have thus been shown only in absolute terms,
reused, water use and water intake are the same.
Waste: Any non-product output generated by a manufacturing
94
DEFINITION OF INDICATORS
Fenice S.p.A. is currently wholly owned by EDF International; it was set up at the
beginning of the 90ies within the framework of a policy aimed at sustainable
development.
Environmental Responsibility Environmental Performance
Ferrari Maserati
Iveco
Magneti Marelli
Teksid
Comau
Total
2004
2005
manufacturing cost
manufacturing cost
320.5
310.1
1,535.0
128.9
565.7
430.8
81.9
–
3,062.8
1,620.1
121.1
578.2
431.0
72.4
–
3,133.0
PERFORMANCE AND EFFICIENCY INDICATORS
Fiat Group
127 in 2004), 47 of which in Italy, were analyzed.
The increase in energy and water consumption and in the amount
For comparison of quantitative data, the main plants of the Fiat
of generated waste is generally due to an increase of activities at
Group around the world for a total of 124 sites (120 in 2003 and
FIAT GROUP - PLANTS IN ITALY: 47
ENERGY
Total energy consumption
of which:
Electric power
Natural gas
Other fuels
Purchased energy carriers (*)
Specific energy consumption
(*)
the main Sectors.
Unit of measure
toe/year
toe/year
toe/year
toe/year
toe/year
toe/million euros
2003
665,828
332,083
88,010
3,502
242,233
216
2004
686,562
362,665
90,031
3,645
230,221
224
2005
710,651
370,656
94,735
3,508
241,753
227
Other energy carriers:
Heating energy (plant and office heating, heat for processing purposes, steam, continuously available superheated processing water, and seasonally available superheated processing
water).
Cooling energy (continuously/seasonally available chilled water used for processing purposes, water used to cool plant and offices).
Compressed air/High pressure air.
WATER
Unit of measure
Water use
Water intake
Wastewater recovery and reuse
Specific water consumption
WASTE
Total waste
of which:
Total recycled waste
Waste recovery and recycling index
Incineration with energy recovery
Treatment and disposal
Controlled landfills
Percentage of waste sent to landfills
Specific waste generation index
EMISSIONS
Paint shop VOC emissions
2005
98,619
106,936
10 m
21,249
18,932
19,326
3
3
%
m /thousand euros
3
Unit of measure
General plant refuse
industrial waste
2004
99,300
103 m3
Wastewater discharges
2003
103 m3
ton
ton
ton
24,929
74.9
8.1
2003
443,960
20,498
423,462
ton
367,672
ton
5,674
%
82.8
24,557
75.1
8.0
2004
518,050
16,999
501,051
430,669
83.1
9,713
24,481
77.1
7.8
2005
472,697
16,874
455,823
384,741
81.4
8,043
ton
34,018
32,426
40,695
%
7.4
9.6
8.4
ton
33,004
49,830
39,561
metric ton/million euros
143.8
169.2
150.9
Unit of measure
2003
2004
2005
g/m
2
72.4
74.1
71.9
95
FIAT GROUP - PLANTS WORLDWIDE: 124
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
toe/year
toe/year
toe/year
toe/year
toe/year
2003
1,260,927
745,354
173,200
38,162
304,211
2004
1,358,945
841,615
183,478
35,889
297,963
2005
1,393,154
854,147
199,585
34,273
305,149
water).
WATER
Unit of measure
Water use
Water intake
WASTE
Total waste
of which:
industrial waste
EMISSIONS
2003
2004
2005
103 m3
143,557
149,745
151,915
10 m
27,196
25,152
25,597
103 m3
3
3
%
Unit of measure
96
Unit of measure
ton
ton
ton
ton
%
ton
ton
32,101
77.6
2003
1,156,066
45,129
1,110,937
634,837
54.9
15,872
68,515
31,793
78.8
2004
1,393,124
48,786
1,344,338
734,214
52.7
32,170
78.8
2005
1,439,452
42,534
1,396,918
764,928
53.1
21,591
23,440
61,968
72,162
ton
435,837
526,653
580,672
Unit of measure
2003
2004
2005
%
g/m
2
37.7
79.6
37.8
79.1
40.3
77.3
Fiat Auto
Reducing waste disposal
At the Tychy plant in Poland, the total amount of waste sent to
landfills or incinerators has been significantly reduced since 2000
thanks to new sorting procedures that separate paper, cardboard,
glass, paper and wood.
In addition, installing 34 paint robots and improving the coagulation
process in the spray booths reduced the amount of waste generated
at the plant.
Tychy: total waste disposal (kg/vehicle)
Wastewater treatment facility
At the Cordoba plant in Argentina, the wastewater treatment facility
was designed to receive all of the plant’s non-industrial effluent as
well as water from processing operations.
The facility was constructed in 1996 and can treat up to 300 cubic
meters of wastewater per hour.
The treatment system consists of three different stages for pre-
treatment, chemical/physical treatment and biological treatment
capable of adapting to effluent properties.
Recently, a chemical treatment was introduced to remove heavy
metals from wastewater. Sludge from the process is then thermally
destroyed.
Tychy:Total waste from painting operations (kg/vehicle)
97
FIAT AUTO - PLANTS IN ITALY: 8
ENERGY
Unit of measure
of which:
Electric power
Natural gas
Other fuels
toe/year
toe/year
toe/year
toe/year
toe/year
(*)
toe/million euros
341,469
130,320
24,373
6
186,770
212
2004
341,249
147,114
22,557
3
171,575
222
2005
373,013
152,318
26,571
0
194,124
230
water).
WATER
Unit of measure
Water use
10 m
3
Water intake
3
10 m
3
3
%
m /thousand euros
3
WASTE
Total waste
of which:
3
10 m
3
Unit of measure
ton
ton
ton
industrial waste
2003
2004
2005
67,214
69,485
75,777
11,567
10,055
9,722
11,761
82.5
7.3
2003
189,523
10,272
179,251
11,326
83.7
7.4
2004
10,426
86.2
6.4
2005
189,504
9,435
180,069
173,823
9,080
164,743
91.5
91.1
158,336
ton
170,381
173,313
ton
4,000
7,217
6,250
5,756
4,051
%
2,789
3,110
%
4.2
3.0
89.9
ton
ton
EMISSIONS
98
2003
Unit of measure
g/m
2
8,010
5,182
2.3
117.8
123.5
107.3
2003
2004
2005
73.8
76.3
74.1
FIAT AUTO - PLANTS WORLDWIDE: 12
ENERGY
of which:
(*)
Electric power
Natural gas
Other fuels
Unit of measure
toe/year
2003
474,804
2004
491,742
toe/year
toe/year
toe/year
toe/year
202,717
36,014
401
235,672
229,011
35,192
3
227,536
Unit of measure
2003
2004
2005
524,868
235,176
42,652
10
247,030
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
3
103 m3
%
Unit of measure
industrial waste
EMISSIONS
10 m
3
3
ton
ton
ton
2005
77,829
81,057
89,305
13,191
11,825
11,771
2003
2004
13,919
82.1
13,518
83.3
13,193
85.2
2005
316,519
18,959
297,560
334,726
18,333
316,393
339,035
12,850
326,185
90.0
90.3
91.7
284,745
ton
5,834
10,463
10,212
ton
12,870
11,021
8,792
Unit of measure
2003
2004
%
ton
%
g/m
2
5,924
4.1
80.2
302,390
311,023
ton
6,768
3.3
79.9
11,618
2.6
2005
77.6
99
Ferrari and Maserati
The Maserati plant in Modena has been certified to ISO 14001
since July 2003.
In the course of 2005, a number of measures were introduced
to ensure continual improvement:
The processing water treatment system was upgraded
Procedures for monitoring and managing solvent consumption
at the paint shops were improved.
In addition, solvent-based paints were replaced with water-based
products, and a new activated carbon system was installed for
reducing the atmospheric emissions produced when the paint
robots are washed.
100
The upgrades to the wastewater treatment system significantly
reduced the amount of waste which must be transported off-site for
treatment, while at the same time improving the quality of the water
discharged into the public sewer system.
Discontinuing solvent-based paints also helped reduce the amount
of solvents used in cleaning equipment and preparing paints.
FERRARI MASERATI - PLANTS IN ITALY: 3
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
toe/year
toe/year
toe/year
toe/year
toe/year
toe/million euros
2003
29,995
19,911
10,084
0
0
112
2004
39,168
25,895
13,273
0
0
122
2005
38,386
25,140
13,246
0
0
124
water).
WATER
Unit of measure
Water use
Water intake
WASTE
Total waste
of which:
industrial waste
EMISSIONS
2004
2005
N.A.
N.A.
N.A.
10 m
140
250
204
3
103 m3
2003
10 m
3
3
3
299
348
309
%
N.A.
N.A.
N.A.
Unit of measure
2003
2004
2005
m /thousand euros
3
ton
ton
ton
1.2
12,130
1,051
11,079
13,847
945
12,903
43.2
50.9
44.2
3,742
ton
0
ton
ton
%
Unit of measure
g/m2
1.0
8,659
1,030
7,629
ton
%
1.1
4,865
52
0.6
32.4
2003
104.4
6,174
0
10,469
1,065
8.8
37.9
2004
68.6
6,118
0
6,874
945
6.8
44.7
2005
27.8
101
CNH
water effluents, the use, management and disposal of hazardous
CNH products and operations are subject to stringent local
substances, and waste disposal in general. CNH devotes significant
regulations in the countries where the sector does business.These
resources to ensuring that all its products and manufacturing facilities
regulations govern a wide range of factors, including emissions to air,
CNH - PLANTS IN ITALY: 5
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
toe/year
toe/year
toe/year
toe/year
toe/year
toe/million euros
2003
25,077
15,097
9,757
223
0
156
2004
21,000
12,088
8,765
147
0
163
2005
25,088
14,692
10,242
154
0
207
water).
WATER
Unit of measure
Water use
WASTE
Total waste
of which:
EMISSIONS
2005
1,728
1,622
10 m
1,522
791
1,234
3
3
%
m /thousand euros
3
Unit of measure
industrial waste
2004
1,551
3
103 m3
2003
10 m
3
Water intake
102
comply with mandated emissions limits.
ton
ton
ton
ton
%
ton
1,005
1,175
35.2
32.0
2003
2004
6.2
9.1
1,260
22.3
10.4
2005
22,056
1,215
20,841
13,622
1,119
12,503
22,098
1,304
20,794
75.0
76.8
70.3
16,531
132
10,458
238
15,541
175
ton
3,560
1,208
4,652
%
8.3
12.6
7.8
ton
1,833
1,718
1,730
136.8
105.7
182.4
Unit of measure
2003
2004
2005
g/m
2
182.0
231.9
219.1
CNH - TOTAL NUMBER OF PLANTS WORLDWIDE: 27
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
2004
2005
toe/year
toe/year
toe/year
toe/year
toe/year
151,916
93,114
50,711
7,192
899
158,112
101,013
52,954
3,331
814
149,859
94,037
52,830
2,172
820
Unit of measure
2003
2004
2005
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
3
10 m
3
3
103 m3
%
Unit of measure
industrial waste
EMISSIONS
2,716
2,075
2,362
2003
2004 (**)
2,338
22.5
2,490
21.6
2,502
14.1
2005
106,363
7,297
99,066
%
73.2
73.7
76.9
ton
2,911
100,646
8,107
92,539
3,176
119,451
7,286
112,165
ton
3,016
ton
ton
ton
(**)
2003
87,422
3,965
74,187
4,051
81,749
2,650
ton
20,909
13,789
14,153
%
6.0
8.6
7.3
ton
Unit of measure
g/m
7,158
2003 (**)
92.2
8,619
2004 (**)
98.1
7,813
2005
105.5
During preparation of the 2005 report, CNH identified a number of errors in the 2003 and 2004 reporting data, that however were not material at the Group level. These errors
have been corrected in this 2005 report.
103
Iveco
As part of implementing its Environmental Management Systems in
Reducing diesel fuel consumption
2005, Iveco made significant improvements in the factors that have
the greatest impact on the environment and on costs per unit of
product produced.
Reducing diesel fuel consumption
Improved processing and inspection methods made it possible to
perform engine testing in significantly less time. Keeping the engines
running for shorter periods cuts diesel fuel consumption, in turn
generating fewer emissions to the atmosphere.
Reducing oil consumption
Reducing coolant and cutting fluid consumption
Throughout 2005, efforts continued to optimize the consumption
of cutting fluids and similar products in Iveco’s machining operations.
Reducing the amount of unsorted waste
Introducing selective collection and sorting procedures reduced the
amount of waste sent to controlled landfills by one third between
2003 and 2005 at the Suzzara plant near Mantova.
Reducing unsorted waste at the Suzzara plant
104
IVECO - PLANTS IN ITALY: 10
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
toe/year
toe/year
toe/year
toe/year
toe/year
toe/million euros
2003
149,068
75,888
20,929
3,093
49,158
268
2004
150,622
77,470
19,783
3,323
50,046
266
2005
149,733
84,221
18,496
3,199
43,816
259
water).
WATER
Unit of measure
Water use
Water intake
WASTE
Total waste
of which:
EMISSIONS
2005
10,890
10,910
10 m
4,940
5,090
4,874
3
3
%
m /thousand euros
3
Unit of measure
industrial waste
2004
11,656
3
103 m3
2003
10 m
3
ton
ton
ton
7,276
37.6
13.1
2003
77,476
4,411
73,065
ton
53,925
ton
1,439
%
ton
ton
%
Unit of measure
g/m2
69.6
16,988
5,122
6.6
139.0
2003
50.5
6,747
38.0
11.9
2004
73,011
2,768
70,243
55,346
75.8
1,383
13,282
2,999
4.1
129.1
2004
49.0
6,702
38.6
11.6
2005
71,002
2,653
68,349
54,234
76.4
1,231
12,770
2,767
3.9
122.8
2005
48.8
105
IVECO - PLANTS WORLDWIDE: 24
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
2003
2004
2005
toe/year
toe/year
toe/year
toe/year
toe/year
229,681
117,628
39,797
14,431
57,825
232,152
120,717
38,866
14,786
57,783
230,573
131,162
38,442
13,047
47,922
Unit of measure
2003
2004
2005
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
3
10 m
3
3
103 m3
%
Unit of measure
industrial waste
EMISSIONS
5,754
6,074
5,797
2003
2004
8,048
36.2
7,561
36.0
7,447
36.7
2005
111,501
12,052
99,448
%
67.6
72.7
76.1
ton
11,764
115,707
11,270
104,437
11,809
114,215
10,334
103,881
ton
12,609
ton
ton
ton
106
Unit of measure
77,259
4,228
84,097
3,388
84,826
3,459
ton
21,263
19,648
14,405
%
10.5
7.4
7.9
ton
Unit of measure
g/m
2
12,019
2003
66.0
8,572
2004
63.9
8,825
2005
64.4
Magneti Marelli
Implementing the Environmental Management System promotes
the sector’s technical and organizational development programs.
Solvent consumption
(liters/hours worked)
Examples of some of the best practices that testify to Magneti
Marelli’s commitment are given below.
Corbetta (Italy): Reducing solvent consumption
Solvent consumption was reduced by installing a system that distills
spent solvent used in washing screen printing stencils so that it can
be recovered and reused in production.
Hazardous waste production
(kg/hours of production)
Bursa (Turkey): Reducing hazardous waste
Better management procedures which sort and separate waste at
the source, plus closer cooperation with contractors who specialize
in dealing with hazardous waste made it possible to reduce the
amounts generated at the plant.
Corbetta (Italy): Increase of sorted waste
Improved training and more effective waste management reduced
Waste production
(kg/hours worked)
the amount of waste generated by various packaging materials, as did
better sorting procedures.
107
MAGNETI MARELLI - PLANTS IN ITALY: 14
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
toe/year
toe/year
toe/year
toe/year
toe/year
toe/million euros
49,542
39,553
6,432
27
3,530
120
2004
62,110
46,864
8,626
19
6,601
144
2005
58,249
47,078
9,405
31
1,735
135
water).
WATER
Unit of measure
Water use
WASTE
Total waste
of which:
6,473
10 m
2,354
3
103 m3
3
3
%
m /thousand euros
3
Unit of measure
industrial waste
ton
ton
ton
2003
2,669
5.4
2004
2,723
64.1
6.3
2005
25,337
2,467
22,870
32,091
1,817
30,274
27,717
2,337
25,380
76.2
80.4
63.3
100
ton
3,845
%
11.4
1,976
62.4
ton
ton
7,584
60.9
6.1
2005
6,184
2,324
19,319
%
2004
2,529
ton
The main indicators varied considerably as a consequence of the changes in the scope of consolidation of data.
2003
10 m
3
Water intake
108
2003
2,897
61.4
25,792
686
3,110
2,503
7.8
74.5
17,544
386
8,321
2,277
8.2
64.3
MAGNETI MARELLI - PLANTS WORLDWIDE: 39
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
2003
2004
2005
toe/year
toe/year
toe/year
toe/year
toe/year
104,579
89,339
9,660
2,050
3,530
143,744
121,788
14,189
1,166
6,601
145,123
123,724
16,679
2,881
1,839
Unit of measure
2003
2004
2005
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
10 m
3
3
3
103 m3
%
Unit of measure
industrial waste
10,023
15,871
10,302
3,045
2,641
3,545
3,344
66.6
2003
3,279
79.3
2004
3,735
63.8
2005
ton
ton
ton
58,087
4,333
53,754
65,102
6,579
58,523
75,122
6,181
68,941
%
55.6
71.5
60.7
ton
ton
ton
ton
%
32,269
561
6,796
18,355
31.6
46,544
1,788
45,635
5,528
7,708
14,848
13.0
17.9
8,476
13,469
The main indicators varied considerably as a consequence of the changes in the scope of consolidation of data.
109
Teksid
As part of the continual improvement called for by the
Environmental Management System and the new programs for
training employees and outside contractors, further progress was
Crescentino (Italy): Recovering general plant refuse
The amount of general plant refuse recovered for reuse at the plant
rose significantly, thus cutting disposal costs.
made in handling general plant refuse.
Crescentino (Italy): Reducing landfill disposals
Selective sorting procedures paid off in a further reduction of
the amount of general plant refuse sent to controlled landfills
Selective waste collection and sorting
General plant refuse disposal
110
TEKSID - PLANTS IN ITALY: 2
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
Unit of measure
toe/year
toe/year
toe/year
toe/year
toe/year
toe/million euros
2003
61,849
45,485
16,221
143
0
791
2004
66,240
49,210
16,888
142
0
810
2005
60,105
43,330
16,661
114
0
830
water).
WATER
Unit of measure
Water use
Water intake
WASTE
Total waste
of which:
industrial waste
2004
2005
12,183
10,199
10,910
10 m
560
698
553
3
103 m3
2003
10 m
3
3
3
1,867
2,529
2,950
%
84.7
75.2
73.0
Unit of measure
2003
2004
2005
m /thousand euros
3
ton
ton
ton
23.9
195,793
688
195,105
162,434
555
161,879
86.3
81.0
81.0
101,572
ton
1
ton
40.7
117,663
893
116,770
ton
%
30.9
1,141
158,518
189
536
131,575
0
2,514
ton
14,878
35,669
27,791
1,505.4
2,392.7
2,242.4
%
12.6
18.2
17.1
111
TEKSID - PLANTS WORLDWIDE: 10
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
2003
2004
2005
toe/year
toe/year
toe/year
toe/year
toe/year
260,373
216,170
26,720
13,973
3,510
284,466
237,248
27,500
16,488
3,230
294,519
238,898
34,153
16,009
5,460
Unit of measure
2003
2004
2005
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
3
10 m
3
3
103 m3
%
Unit of measure
industrial waste
ton
ton
ton
39,853
37,667
37,478
2,180
2,183
1,827
2003
2004
3,957
90.1
535,462
2,916
532,546
4,457
88.2
4,853
87.1
2005
762,280
3,193
759,087
791,110
3,065
788,044
28.8
29.6
233,863
ton
146,844
219,439
ton
1,270
1,719
1,361
488,647
540,685
112
Unit of measure
%
ton
ton
%
27.4
7,928
385,110
71.9
2,872
64.1
9,879
68.3
Comau
COMAU - PLANTS IN ITALY: 5
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
2003
2004
2005
toe/year
toe/year
toe/year
toe/year
toe/year
8,828
5,829
214
10
2,775
6,173
4,024
139
11
1,999
6,078
3,877
113
10
2,078
Unit of measure
2003
2004
2005
108
111
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
industrial waste
3
10 m
3
(*)
Unit of measure
3
103 m3
223
133
166
72
192
133
71
%
13.9
18.8
17.1
Unit of measure
2003
2004
2005
ton
ton
ton
3,246
210
3,036
1,899
121
1,778
1,776
0
1,776
67.8
56.2
78.5
ton
2,202
ton
2
%
1,068
0
1,394
0
ton
830
711
382
%
6.5
6.3
0.0
ton
212
120
(*)
0
The amount was set at zero as urban waste collected by municipal services is not weighed. As a consequence, it was not possible to certify the amount of waste produced and therefore
no indication was given. In previous years, values were estimated.
113
COMAU - PLANTS WORLDWIDE: 9
ENERGY
of which:
Electric power
Natural gas
Other fuels
(*)
toe/year
toe/year
toe/year
toe/year
2003
9,579
6,475
214
115
toe/year
2,775
Unit of measure
2003
2004
9,561
5,943
1,504
115
1,999
2005
9,827
6,011
1,583
154
2,078
water).
WATER
Water use
10 m
3
Water intake
WASTE
Total waste
of which:
industrial waste
3
10 m
3
114
Unit of measure
3
103 m3
2004
2005
140
131
227
165
170
104
196
154
91
%
13.7
15.2
14.7
Unit of measure
2003
2004
2005
ton
ton
ton
3,673
271
3,402
2,533
253
2,280
2,474
144
2,330
69.6
54.6
69.3
ton
2,556
ton
14
%
1,383
182
ton
830
714
%
7.4
10.0
ton
273
253
1,715
229
385
144
5.8
Environmental performance indicators
objective, repeatable parameters:
For waste, the indicator represents the percentage of all waste
generated by manufacturing which is recycled, reused or disposed
Performance indicators provide a readily understandable and uniform
of using methods that comply with regulatory requirements in the
basis for comparing:
areas concerned.
Waste generation, recovery and disposal
For VOC solvent emissions, the indicator expresses the ratio of
VOC volatile organic compound solvent emissions from painting
solvents used in painting operations to square meters of painted
operations.
product.
These indicators also make it easier to gauge how environmental
performance has improved over the years, as they are based on
Paint shop VOC emissions (g/m2)
EMISSIONS
1993
Fiat Auto Italy
Fiat Auto worldwide
Iveco Italy
Iveco worldwide
(1)
(1)
1994
1995
1996
1997
1998
1999
2000
2001
2002
2004
2005
137.7
110.5
104.5
93.7
92.0
83.1
82.6
79.0
79.0
79.0
73.8
76.3
74.1
97.1
90.3
84.7
83.1
67.8
63.2
55.6
55.4
55.1
53.0
50.5
49.0
48.8
330.0
281.6
-----
111.0
105.5
101.0
100.2
91.0
92.7
90.0
79.8
90.4
74.8
88.4
67.6
86.2
63.0
87.1
60.1
Irisbus Italy
83.5
60.1
Irisbus worldwide
(1)
(2)
2003
80.2
66.0
342.0
210.0
79.9
(2)
63.9
200.0
77.6
64.4
141.9
Until 1999, the scope of the survey included all the plants in Europe, and as of 2000 all the plants worldwide.
Figures reflect a broader scope of the survey, insofar as starting in 2003 Irisbus plants are included in the survey.
115
04
Social
Responsibility
118 Human Resources
136 Community
120 Employee turnover and inter-Group transfers
141 Community investments
118 Composition
121 Equal opportunities
122 Health and safety
124 Training and professional development
125 Recruitment and selection
128 Industrial relations
131 Internal communication
137 Charitable gifts
146 Commercial initiatives with social impact
151 Socially sustainable business initiatives
154 Institutional relations
154 Relations with associations
155 Relations with the media
135 Employee benefits
117
04 Social Responsibility
Human Resources
COMPOSITION
At December 31, 2005 the Fiat Group employed 173,695 people
(161,066 at December 31, 2004) , 44 per cent of whom in Italy
(1)
(44 per cent also in 2004) and 26 per cent in the rest of Europe
(27 per cent in 2004).The Group also employs a large number of
people in South America, where 17 per cent of Group employees
Group employees are broken down into three macro-categories:
Blue-collar workers
White-collar workers
Professionals (personnel with management and specialist roles)
who are in turn broken down as follows:
Professionals and Professional Experts, corresponding to middle
works (15 per cent in 2004) and in North America, where 9 per
management in Italy;
cent of its employees are located (almost 10 per cent in 2004).
Professional Masters, Professional Seniors and Executives,
Four per cent of employees work in the rest of the world (four
corresponding to senior management (dirigenti) in Italy.
per cent in 2004).
2004 Headcount
World
Italy
Europe (excluding Italy)
USA, Canada, Mexico
South America
Rest of the World
White-collars
Professional/
Professional Expert
Professional Master/
Professional Senior/
Executives
45,765
10,996
13,025
1,683
9,277
3,033
2,911
276
1,621
532
23
Total
Headcount
Blue-collars
71,469
161,066
43,253
15,497
24,405
6,442
105,090
25,929
19,853
4,266
29,284
10,793
2,841
24,016
5,985
1,563
2005 Headcount
World
Italy
Europe (excluding Italy)
USA, Canada, Mexico
South America
Rest of the World
(1)
118
White-collars
50,643
10,783
14,091
1,553
9,948
3,139
2,921
267
1,766
503
15
77,070
16,275
29,293
7,681
148
Professional Master/
Professional Senior/
Executives
Blue-collars
43,376
546
Professional/
Professional Expert
Total
Headcount
173,695
2,676
116,643
26,586
24,069
5,397
29,399
10,429
3,282
25,184
5,891
1,778
2,469
470
164
Headcount data at December 31, 2004 are different from those published in the 2004 Sustainability Report.The difference is due to the change in the scope of consolidation
following adoption of International Reporting Financial Standards IFRS, effective January 1, 2005.
Social Responsibility Human Resources
Workforce broken down by age – World – 2005
Contingent, temporary and durational employees accounted for
Workforce broken down by age – Italy – 2005
Workforce broken down by seniority – World – 2005
4.2 per cent of the total workforce at December 31, 2004 and 5.5
per cent at the end of 2005.The percentage was lower in Italy,
where employment arrangements of this kind involved 2.5 per
cent of the workforce in 2004 and 2.1 per cent in 2005.
Generally speaking, the age of employees in Italy is higher than the
average age of Group employees worldwide, and thus company
seniority is higher there.
When employees are broken down by level of education, the
proportion of the workforce with a high school diploma is slightly
higher and that with a university degree is slightly lower in Italy.
However, it must be remembered that this comparison can be
misleading due to the objective difficulty in comparing the quality
and level of skills represented by Italian educational credentials
Workforce broken down by seniority – Italy – 2005
with those of other countries. This is demonstrated by the higher
percentage of “unmapped” employees abroad.
If, instead, we compare the distribution of employees by level of
education in 2005 with their distribution in 2004, we see that there
has been a general improvement from year to year. This might be
related to the decrease in average age and seniority that occurred
during the same period.
119
Workforce broken down by level of education – World – 2005
EMPLOYEE TURNOVER AND INTER-GROUP TRANSFERS
The variations in the number of employees recorded during 2005
are due to changes in the scope of consolidation, as well as new
incoming and outgoing personnel.
Changes in the scope of consolidation led to a net increase
of approximately 13,900 employees.This difference was mostly
due to the consolidation of the activities originally conveyed to the
Fiat-GM Powertrain joint venture, which returned to Fiat’s control
Workforce broken down by level of education – Italy – 2005
after the termination of the Master Agreement with General Motors,
the acquisition of a controlling interest in Mako, the consolidation
of Leasys and the sale of WorkNet.
Of the new employees that joined the Group, around half of them
were hired under contingent, temporary and durational agreements.
On average, about one quarter of these arrangements were later
converted into open-ended employment contracts. In Italy this
percentage rises to 60 per cent.
Furthermore, over 600 new university graduates were hired
worldwide, mainly in the engineering area.
Approximately 7% of the employees who left the Group in 2005 did
Headcount broken down by Sector
(Consolidated companies)
Automobiles
Ferrari
Maserati
Fiat Powertrain Technologies
Agricultural and Construction Equipment
Extra Italy
2,441
229
28,544
629
–
Publishing and Communications
Services
Other
Group Total
652
580
–
2,670
0
7,424
31,037
14,923
8,571
1,092
21,868
16,881
7,342
26
606
2,809
2,687
10,111
17,450
32,373
4,223
21,197
7,096
17,117
7,860
25,420
24,213
8,952
6,519
2,892
2,544
5,436
161,066
77,070
96,625
173,695
2,439
71,469
89,597
532
46,099
12,725
4,080
4,172
16,963
10,030
13,328
–
World
2,695
9,386
849
227
23
14,635
3,942
2,582
29,136
7,233
1,229
Extra Italy
45,122
25,746
Metallurgical Products
2005
Italy
16,578
21,552
14,156
Production Systems
World
4,194
Commercial Vehicles
Components
120
2004
Italy
849
4,704
846
3,581
–
524
846
4,105
so in consequence of collective dismissals as part of workforce
downsizing. Whenever possible, these separations were handled
with recourse to the “social shock absorbers” envisaged by law and
Women’s employment in Fiat Group Companies in Italy
(Women as a percentage of total number of employees broken
down by job category)
preparation of plans in collaboration with trade unions to attenuate
the impact of measures adopted on employees.These reductions
were far smaller than in the two-year period 2003-2004, when major
restructuring and production streamlining plans affected various
Group Sectors, accounting for about one third of all employee
terminations during that period.
It should be borne in mind that the Fiat Group’s size offers
employees opportunities to transfer between Sectors or manufacturing
units. In 2005, over 2,500 employees – half of whom in Italy – thus
moved to a different Sector or to another manufacturing facility in
the same Sector.
Fiat Group employee turnover - World
EQUAL OPPORTUNITIES
Offering each employee the same opportunities to develop his or
her skills and abilities, without discrimination based on race, sex, age,
nationality, religion and personal beliefs is one of the cornerstones
of the management policy of the Group’s Human Resources
management.
Workforce by gender
At the end of 2005, women accounted for almost 16% of the
Group’s entire worldwide workforce.Though the percentage of
women employees continued to increase among professionals
other job categories, women are also well represented among
employment figures for the past twenty years.
women employed in office and clerical positions exceeds that in
the Group’s professionals.
A comparison with 2004 data shows that there are no particular
differences at the global level, whereas in Italy the percentage of
and senior managers, as illustrated in the table which shows
By contrast, the proportion of women engaged directly in the Group
Companies’ shop-floor manufacturing operations has remained
substantially stable, and in any case is in line with the industry average.
121
HEALTH AND SAFETY
Promoting equal opportunities for men and women in the
workplace is a goal shared by the Company and employee
All of the Fiat Group employees, at whatever level in the
social dialogue, in compliance with local laws and practices.
may be, are involved in preventing risks and improving safety at
organization and whatever their responsibilities and assignments
representatives.This issue is tackled within the framework of the
In Italy, the Automobiles and Commercial Vehicle Sectors followed
through on the Groupwide Labour Agreement reached in 1996
by setting up Equal Opportunity Committees. Made up of Company
and employee representatives, these committees:
monitor women employment
conduct reviews on a preemptive basis of any dispute in the
linked with it and cannot be separated from it or performed
separately.
gender profile are examined together with the trade unions at
Promoting these activities is an essential part of management
the meetings contemplated by the National Collective Labour
responsibilities at all levels of the organization.
Agreement.
2004
Women
82.0%
18.0%
82.5%
82.2%
17.8%
17.5%
81.1%
15.2%
Rest of the World
82.6%
17.4%
95.1%
Women
84.1%
84.8%
4.9%
2005
Men
15.6%
USA, Canada, Mexico
South America
Employees must be duly informed of and trained on such issues,
which are an integral part of the professional skills of everyone
Men
Europe (excl. Italy)
Italy
and for ensuring that they comply with the laws of each country
and fire prevention are vital aspects of work; they are inextricably
At the Group’s other Sectors, biennial reports on the workforce
84.4%
manufacturing processes have on the work environment,
All activities affecting occupational safety and health, ergonomics
application of the equal opportunity practices.
World
Each Group Company is responsible for the impact that its
where they do business and with the following principles:
study and promote initiatives
Gender profile by geographic area (%)
the workplace.
82.4%
94.4%
84.2%
15.9%
18.9%
17.6%
5.6%
15.8%
in the Group.
Occupational accidents
Every Company reports its occupational accident statistics in
accordance with the statutory and regulatory provisions governing
occupational safety in the country where it operates and regarding
the specific nature of its production process.
Since the systems for reporting, measuring, and certifying occupational
accidents can vary from country to country, the results of the various
statistics customarily collected at the national level cannot be compared.
Thus, in the sustainability report for 2004, we decided to report only
Percentage of women by job category
Senior management
Middle management
7.3%
13.5%
2004
Italy
World
14.8%
14.4%
14.5%
12.4%
7.8%
White collars
33.6%
37.5%
Total
15.6%
18%
Blue collars
122
World
the situation of Fiat Group companies operating in Italy.
11.5%
7.7%
2005
Italy
8.4%
15.7%
31.0%
32.9%
15.9%
17.8%
15.0%
However, when we drafted the sustainability report for 2005, we
aimed to broaden the scope of measurement, seeking to include
at least those countries where Fiat has a significant presence. We
adopted the methods used in Italy to collect information on foreign
countries solely in order to obtain uniform data for merely statistical
purposes, fully aware that the data shown will not coincide with
those reported at the local level for operating purposes or for
compliance with requirements imposed by local national authorities.
On the basis of these methods, we present the following statistics
Fiat Group accidents in Italy
for 2005 alone are illustrated for the foreign countries.
Frequency rate
the Group industrial sectors (excluding executives and similar
Fatalities
on the Italian situation, as compared with 2004, while the figures
The reported data concern accidents suffered by employees in
personnel), causing them to miss more than three days of work.
Severity rate
2005
2004
1.54
1.34
1
1
0.29
0.31
These figures cover almost all of Italy and approximately 90% of
Group companies abroad.
Fiat Group accidents in Italy
The statistics regard employees of Fiat Group companies who
are exposed to risks and thus enrolled with INAIL, the Italian
2005 - Fiat Group accidents world-wide
Workers’ Compensation Authority. Executives and accidents suffered
Frequency rate
The frequency rate is obtained from the ratio between the number of
Fatalities
during travel to and from the workplace are excluded.
reported accidents (i.e. causing the employee to miss more than three
Severity rate
Italy
Abroad
0.29
0.27
1.34
1
Total
1.02
1.17
0
1
0.28
days of work) and number of hours at work, multiplied by 100,000.
The severity rate is obtained from the ratio between the days of
absence and the number of hours at work, multiplied by 1000.
The statistics for 2005 show a reduction in the frequency of accidents,
accompanied by a moderate decrease in the severity of those
accidents.
Occupational safety training
A total of over 400,000 hours were dedicated to training employees
on how to prevent accidents and promote occupational health and
safety. Over half of these hours were offered in Italy.
Involvement of labour representatives
Improving the health and safety of workers is one of the
recurring topics addressed with Employee Safety Representatives,
in compliance with applicable laws and the collective bargaining
agreements in effect in the various countries.
In Italy, the Fiat Group national agreement envisages more favourable
treatment, both in terms of the number of representatives and the
matters addressed, than what is envisaged by law for disclosure to
and consultation with Employee Safety Representatives.
NO-SMOKING POLICY
As a step to protect non-smokers health, the Fiat Group has
adopted a policy aimed at avoiding risks deriving from “passive
smoke”. Such issue is clearly addressed in the Code of Conduct,
which requires all employees, including those working in countries
where smoking in the workplace is permitted, to “be sensitive to
the needs of those who physically suffer from the effects of
passive smoke”.
Most companies belonging to the Group adopt a “no smoking”
policy. In Italy, in particular, smoking is prohibited not only in
compliance with industrial accident prevention regulations, but
also in view of employees’ health protection. Smoke is banned
in meeting rooms and working places where smokers and
non-smokers are present. Since 2005, the smoking ban has been
applied to all indoor working places and extended to public
premises.
123
TRAINING AND PROFESSIONAL DEVELOPMENT
The Group’s competitiveness hinges on the individual and
collective skills of its employees.The enhancement and development
of these skills are central to the corporate strategic intent.
Fiat sees training as essential in enriching and improving these skills,
and recognizes that training must be planned and provided on the
basis of the main corporate objectives, and with a view to furthering
the growth and improvement of the socioeconomic system.
The Group thus provides its employees with opportunities for
around the world and the professional development of human
resources amounted to approximately 90 million euros in 2005,
equal to 2.1% of total wages and salaries paid.
Training activities involved a total of 88,925 employees. In a year
characterized by strict control of costs and investments in general,
the Group kept its spending on training at nearly the same level
as in previous years, while managing to increase the number of
people involved.
training and professional development, enabling them to develop
Isvor Fiat, the Group training company, held a total of 15,475
professional growth and specialization programs that can also be
at the workplace. Isvor also involved a total of 26,189 users
the skills needed to fill different roles and responsibilities through
followed singly. In this sense, Fiat regards its training courses as
an integral part of work activities.
Each employee is responsible for making the most of all of the
days of training and consulting activities in the classroom or
for 137,748 hours of web-based distance training.
The Grande Punto Italia Program was one of the most interesting
training programs undertaken in 2005, involving 2,200 users for
educational opportunities provided by the Group to increase
a total of 9,615 modules and 13,400 hours of use, supporting
In 2005, a Fiat Group company, Iveco S.p.A., was the recipient
The distance learning course (CD and web-based training)
prize was awarded at the end of a competition amongst industrial
a prerequisite basis. The program, which envisages a system
his or her skills.
of an important award for excellence in employee training. The
enterprises in the Province of Turin. Granted by the Employers’
Association (Unione Industriale), this prize was established to
reward companies that implement significant training activities
for development of their human resources.
The awarded project focused on the redesign of Iveco’s training
processes worldwide.
124
Spending on training in support of Group Company activities
introduction of the new Fiat Auto model in September 2005.
is comprised of six modules that are linked to each other on
for acquiring training credits to evaluate learning results, was
translated into six languages for the nine European markets
of the Fiat commercial network.
The Fiat Project continued in 2005. This program, realized
in collaboration with the Italian Ministry of Labour, involved
over 21,000 Fiat Auto employees and represents the largest
program of continuing education developed in Italy and Europe.
TRAINING EXPENSES
Indicators
Total training expenses
Per capita training expenses
2004
108,147,000 €
Type of training (**)
Institutional (career advancement courses)
Language
Refresher courses
(technical/job training)
Other
Number of employees involved
Impact on cost of labor (***)
88,955,000 €
523.05 €
667.51 €
2,727,000 €
3,663,000 €
6.74%
9.05%
29,598,000 €
4,498,000 €
73.10%
11.11%
76,739
2005
2,477,000 €
3,471,000 €
7.18%
10.06%
22,294,000 €
6,243,000 €
64.66%
18.10%
(*)
(*)
(*)
(*)
88,925
1.75%
(*)
(*)
(*)
(*)
1.44%
(*) Percentage calculated on direct training costs.
(**) Pro-capita cost of course multiplied by the number of participants.
(***) This figure differs from the one published in 2004 due to the change in the scope of consolidation following adoption of IFRS, effective January 1, 2005.
The project offers opportunities for retraining and improved
employment possibilities through:
development of skills useful to the activities carried out by the
company;
maintaining employment levels in the affected regions;
facilitation of access to the labour market in general.
The project has a duration of three years. In its second year of
activity, Isvor provided 31,760 hours of training on managerial
and specialized topics for 7,888 employees.
RECRUITMENT AND SELECTION
The scope of Fiat’s collaboration with universities in 2005 is
documented by the numerous relationships between Group Sectors
and Companies and universities: 410 worldwide, 158 of which in Italy
and 252 abroad. Highlights of these activities include:
85 career days (14 in Italy, 21 in other European countries,
43 in North America, 4 in South America, and 3 elsewhere);
494 Group and Sector presentations at universities, including 51 in
Italy and 443 elsewhere worldwide, especially in those countries
where Fiat has a significant presence;
a total of 384 Group representatives taught university-level
courses, including 94 in Italy and 290 outside Italy.
In Italy, 13,350 middle and high school students and 2,775 university
students visited a Group facility during 2005. Outside Italy, and
principally in Poland, Brazil, and North America, a total of 31,850
middle and high school students and 21,125 university students made
visits to plants.
Group Companies also participate as partner in various master’s
courses organized together with leading Italian and foreign
125
universities. A total of 50 universities were involved, of which 22 in
highly qualified content in the master’s courses, certified by the
as follows:
to the Company’s contribution;
Italy and 28 abroad.The objectives of these educational programs are
assure top-quality instruction;
address a specific need of Group Sectors through interaction with
the Company development of managerial skills in crucial areas
supporting its competitive advantage.
the outside world;
In 2005, Fiat Auto concluded a master’s course in marketing and
by the academic world.
The course was completed at the end of 2005, when 40 master’s
offer participating employees a course that is officially recognized
In this context, partnership with universities offers:
participants the chance to grow professionally through encounters
in a relational and methodological context based on team work
and techniques that are different from daily practice; deriving
stimulus and motivation from them;
FORMULA ATA
Sponsorship of the Formula ATA was offered as part of
collaboration between the Fiat Group and Italian and foreign
universities.This program involves two major technical and
sporting events: Formula SAE ITALY and Formula TECH, which
were held at the Fiat Auto test track in Balocco.
one in finance with the University of Turin School of Economics.
diplomas were awarded.
Two master’s in marketing courses are currently being offered.
Fiat Auto also organizes the following master’s courses in Brazil:
Gestão Processos Industriais in collaboration with PUC-Minas,
Especialização Engegneria Automobilisitca e Especialização RH
Estratégico with UFSC.
Other important programs include:
for Fiat Auto and Iveco, the Master in Organization Management
Systems, organized with the Consorzio Universitario Qualital
(University of Pisa);
for Iveco, the Master in Lean Manufacturing with MIP – Milan
Polytechnic, the Master in Innovation Management and Development
of New Products, with the Turin Polytechnic and, with the Bocconi
Thirty teams from universities around the world fielded
University, Marketing, Sales Management, and Service Academy;
competitions that rewarded their enthusiasm and creativity.
at the University of Bologna, the Master in Marketing with Insead
over 200 students and new graduates, who faced off in two
The Formula SAE rewards the university and students who
for CNH, the Master in Workplace Safety and Accident Prevention
in the United Kingdom, and, in Germany, a series of courses on
realized and test drove the best project.The teams participated
economic topics with the Berlin School of Economics;
designed and realized at the labs of leading European universities.
Engines and the Master in Car Maintenance and Reliability with
by presenting the prototype of a single-passenger racing car
The Formula TECH, dedicated to alternative propulsion vehicles –
powered by fuel cells, electricity, hybrid power, and hydrogen –
aims to encourage students and young engineers to participate
with innovative ideas and projects for ecologically sustainable
transport, reducing the environmental impact of land vehicles as
much as possible. Projects, components, and prototypes realized
by universities in collaboration with the Centro Ricerche Fiat and
companies in the automotive sector were presented and then
judged by world-class experts.
126
partner universities and enhanced in terms of relevance thanks
for Fiat Powertrain Technologies, the Master in Innovative Diesel
the Turin Polytechnic;
for Ferrari, the Master in Vehicle Engineering with the University
of Modena and Reggio Emilia;
for Fiat Revi, the Master in Information Systems Integration &
Auditing with the University of Turin – School of Economics;
for Elasis, the second level Master in Automotive Engineering
with the University of Naples “Federico II.”
One of the most significant aspects of the relationship between Fiat
and universities is represented by the internships and training offered
at the Group. A total of 2,498 internship training programmes were
After they are hired, college recruits take part in an orientation
in other countries.
experience to guarantee that they gain a solid professional and
offered at Group Companies in 2005, including 763 in Italy and 1,735
The appeal of Group Companies is testified by the high number
of résumés received in 2005.The worldwide total was 150,631,
compared with 67,137 the previous year (as counted in Western
Europe and North America). Of these, approximately 120,000 were
“spontaneous,” sent independently of specific help wanted ads.
The recruitment policy’s success stems from a number of factors:
programs that provide training support for both job orientation
and career advancement, learning paths that focus on the individual,
opportunities for international experience, and a series of initiatives
for outstandingly talented personnel.
The Group hired 635 recent college graduates in 2005, of which
242 in Italy and 393 abroad. During the year, 5,738 candidates were
examined in Italy, including 3,191 who hold college degrees. Outside
Italy, 10,091 candidates were examined, including 5,341 who hold
program that involves both classroom training sessions and on-the-job
managerial grounding that reflects the Group’s principal values
and objectives. Training is designed to transmit an understanding
of the corporate system, business and professional basics. General
post-recruitment training is followed by specific sessions tailored
to the type of orientation program and individual needs.
On-the-job training follows a planned sequence designed
to build function-specific and interfunctional skills.
The effectiveness of the new university graduate hiring process
is checked by means of a follow-up activity carried out within
two years after hiring by the Company, in order to:
understand if the characteristics of the hired individuals are used
and developed in the best way possible;
provide and general overview of their strengths and possible
areas of improvement;
Screen of Fiat Group website
dedicated to recruitment.
find out what the new
employees’ expectations
and aspirations are in order
to channel their professional
development more
effectively;
take training and support
actions to develop possible
areas of improvement.
college degrees. College graduates are selected either on the basis
of their performance during a post-graduate internship, or through
a direct evaluation process involving:
Aptitude and personality tests, personal interviews, and evaluation
of language skills.
“Dynamic” assessment (assessment centre) focusing on behaviour
characteristics of key importance to the Group.
Technical interview at the candidate’s future job site to determine,
among others things, motivation and compare assessment results
with the required profile.
127
INDUSTRIAL RELATIONS
The Fiat Group recognizes the role of employee representatives and
trade unions constituted in accordance with local law and practice
The Fiat Group in Italy - Trade union membership: % of headcount
(senior managers excluded)
in the countries where it operates. Dealings with these groups are
conducted in a spirit of mutual respect, dialog and constructive
confrontation.
Trade Union membership
Employees are free to choose whether to join a union in accordance
with local law and the rules envisaged by the various trade
organizations. As certain countries – France, for example – regard the
decision to join a union as a purely personal matter for employees,
who are thus not required to inform the Company, it is not possible
to track overall union membership.
By contrast, union members in other countries may authorize
their employer to deduct union dues from their paycheck, thus
providing a means of determining the number of members.
This is the case in Italy, where 40.5% of Fiat Group employees
world at company or plant level
(senior managers excluded) belong to a trade union.The increase
Matters
changes in the scope of the survey.
Operating issues
with respect to the 36.7% recorded in 2004 is partly due to
Certain Fiat Group employees in Italy are represented by the Fiat
Middle Managers’ and Supervisors’ Association, whose members in
2005 accounted for 45% of eligible employees, as against 43% in 2004.
Employee Representatives
In most European countries there are representative structures
elected directly by employees.
Italy, for example, has the so-called Unitary Workplace Structures or
RSUs, bodies elected by all workers (senior managers excluded) from
nominees submitted by the trade unions. Elections are held every
three years at each manufacturing unit. As of December 31, 2005,
RSU members at the Group’s metalworking companies in Italy
numbered approximately 1,000.
Collective Bargaining
Collective bargaining takes place at different levels and according
to procedures that vary from country to country, in compliance
with local laws and practices.
128
Fiat Group’s Collective Bargaining Agreements signed around the
Wages
Restructuring
Other
Total
2004
2005
167
254
101
87
355
92
36
68
450
In certain countries, including Italy, Germany and Belgium, issues
regarding terms and conditions of employment are dealt with
through national and regional collective bargaining, with supplemental
or implementation agreements at the company level if necessary.
In some other countries, bargaining takes place only at the company
level also for wage-related issues.
As for company or plant bargaining, the various companies of the Fiat
Group entered into a total of 450 collective bargaining agreements
around the world in 2005 (355 in 2004).
About half of these agreements concerned operating issues (working
time arrangement, work organization, etc.). 20% regarded wages
and 8% addressed the impact of the restructuring and reorganization
programs on employees.
By comparison with 2004, there was a decrease in the number
of agreements addressing restructuring issues, while those dealing
with operating issues and wages increased.
On the whole, including agreements made at the national and/or
craft level (e.g. the metalworkers union in Italy), collective bargaining
agreements cover all Group employees in Italy and about two thirds
of employees in foreign countries.
EUROPEAN WORKS COUNCIL (EWC)
The Fiat Group has also formed a representative body complying
with Council Directive 94/45/EC on the establishment of a
European Works Council or a procedure in Communityscale
undertakings and Community-scale groups of undertakings for
the purposes of informing and consulting employees.
European Works Council (EWC)
Italy
France
13 + 1 representing middle management
3
Belgium
2
Poland
2
Austria
1
United Kingdom
1
2
Germany
Spain
2
Portugal
1
Czech Republic
1
Hungary
1
Total
30
The Agreement on the Establishment of the European Works
The social dialogue to improve competitiveness
was further renewed on June 29, 2005 through an agreement
representatives of employees at the company level focused on finding
Council, signed in 1996 (and renewed for the first time in 2001),
signed by the European Metalworkers’ Federation (EMF – which
represents the trade union organizations of the European
countries where the Fiat Group is present) and the Italian trade
organizations.The new agreement, that will be effective until the
end of 2009, changed the distribution of seats by country so that
employees of those countries that joined the EU as a result of its
enlargement are also represented on the EWC.The 30 seats
have therefore been re-distributed on the basis of the Group’s
current employment distribution in Europe.
The EWC holds a plenary meeting once a year, usually before
the end of November.
Management also holds an additional meeting with the Selected
Committee (which consists of six members of the EWC) in the
first half of each year.
In 2005, the meeting with the Selected Committee was held on
The discussions carried out in 2005 with the trade unions and
consensus solutions to handle the social impact of the programmes
implemented by the various Group companies to restructure and
streamline their organisations and recover competitiveness.The social
dialogue concerned mainly the measures needed to bring the Group’s
manufacturing operations in line with market needs, to improve their
efficiency and operational flexibility and to manage the impact on
staffing levels of reorganisation programmes implemented to reduce
business governance costs.
In Italy, discussions with the trade unions, both at the national and
local level, were carried out constructively. Several meetings were
held to explain and discuss the different stages of the Group’s
restructuring process. A key meeting with trade unions, national
government and local authorities was held on August 3, 2005 at
Palazzo Chigi, the building where the Prime Minister’s office is located.
At that meeting, Sergio Marchionne, Fiat’s Chief Executive Officer,
April 21, and the annual EWC meeting took place on November
explained the Group’s situation, focusing in particular on Fiat Auto’s
Marchionne, who updated attendees on the results achieved,
range planning, production allocations and Fiat Auto’s capital
21-22.The latter was attended by the Group’s CEO Sergio
actions underway and objectives set for the Group.
operating performance and development plan as it concerned product
investment programme and the conditions for implementation of the
programme.The situation for the other Group Sectors was discussed
129
in detail at other meetings held in the autumn. On those occasions,
lunga (long-term mobility benefit to bridge the period prior
relevant strategies and action plans to the trade unions, highlighting
The Cassa Integrazione Straordinaria (Longer-term Temporary Layoff
the executives in charge of the different businesses explained the
the programmes that they planned to implement to achieve the
profitability and competitiveness targets assigned to them.The actions
that would be required at the operational level were then reviewed
with local union representatives at the manufacturing facilities affected
Benefits Fund) was used in connection with the manufacturing
rationalisation and reorganisation plan launched by Fiat Powertrain
Italia at the end of 2004.This plan affected the Mirafiori (Turin) and
Arese (Milan) Fiat Powertrain production facilities.
by these programmes, with the goal of finding consensus solutions to
At the end of 2005, 653 employees, of which 276 from Fiat
appropriate measures for each case.
Arese were still receiving Cassa Integrazione Straordinaria benefits.
manage the programmes’ impact on employees and identify the most
Powertrain Italia (Turin and Arese) and 377 Fiat Auto employees in
Handling capacity underutilization
Flexibility and plant utilisation
sales volumes, was handled by using the Cassa Integrazione Guadagni
manufacturing activity, the Group took action to increase plant utilisation.
At Fiat Auto, the capacity underutilisation at its plants, due to lower
Ordinaria (Temporary Layoff Benefits Fund).This tool was also used
in the administrative, technical and sales departments and affected
mainly office staff and middle managers whose workload had
In areas in which a favourable demand trend produced an increase in
These actions, which were taken with the agreement of employee
representatives and/or trade unions included an increase in the
number of shifts (e.g., agreements to reintroduce a six-day working
decreased due to a reduction in sales volumes and ongoing
week in the production organisation at the Sata plant in Melfi,
in Fiat Auto’s administrative, technical and sales departments who
Powertrain’s factories in Termoli and Pratola Serra) and the use of
organisational changes. At the end of 2005, the number of employees
were receiving Cassa Integrazione benefits, while significantly less than
the 1,800 envisioned when the application process got under way
in April, numbered about 900.
As a result, at the beginning of 2006, the Company and the trade
unions agreed to request an extension of Cassa Integrazione benefits,
while seeking consensus solutions on how to handle any remaining
redundancies. Specifically, both parties are of a view that the mobilità
130
to retirement) system could be the most appropriate tool.
specifically to ramp up production of the Grande Punto, and at Fiat
overtime work (e.g., CNH’s plant in Jesi).
Solutions designed to improve the use of the Group’s manufacturing
capacity are also being planned in Poland, where Fiat Auto and Fiat
Powertrain Technologies plan to resume Saturday overtime work
and where Teksid will introduce an 18-shift rotation.
Agreements that improve working flexibility have been reached by
Iveco at its Ulm plant in Germany and by CNH in Belgium.
Wage-related bargaining agreements
Outside Italy, the main labour agreements included completion
With regard to collective bargaining involving compensation issues,
of annual labour negotiations in France, which resulted in wage
are generally in line with or slightly higher than the rate of inflation.
company involved. In Poland as well, the majority of Group
the agreements reached with the unions call for wage increases that
The purpose of these agreements was to help employees preserve
their purchasing power and link any further increases to the
achievement of the targets to improve the Company’s performance.
In Italy, metalworking companies began negotiations for a twoyear renewal of the compensation provisions of the National
Collective Labour Agreement for Metalworkers (white and blue
collar). This contract, which covers about 75,000 of the Fiat
Group’s employees, expired at the end of 2004. Negotiations
between Federmeccanica (a national organisation that represents
Italian metalworking industry) and the national unions (Fim-Cisl,
Fiom-Cgil and Uilm-Uil) were particularly long and challenging.
An agreement to extend the validity of the new contract by six
months (i.e., until June 30, 2007) succeeded in breaking a stalemate
in negotiations at the beginning of 2006. When fully operational,
increases that averaged between 2% and 3%, depending on the
companies reached wage agreements with the unions, granting
average raises of 110 to 150 zlotys per month.The wage increases
granted in Brazil were in line with those granted by other large
groups, and employees received annual bonuses that varied
according to company results.
In the United States, negotiations with the UAW for the renewal
of a company-level contract covering 650 employees that are
represented by the UAW at CNH plants in Racine, Wisconsin, and
Burlington, Iowa, and at an engineering centre in Burr Ridge, Illinois,
and a depot in St. Paul, Minnesota, were completed in March.This
agreement provided wage increases that were in line with those
offered by competitors. At the same time, it enabled CNH to reduce
costs in particular by scaling back retiree health-care benefits.
the agreement signed on January 19, 2006 will provide an overall
Labour unrest
monthly wage increase of 100 euros (implemented in three stages:
of the National Collective Labour Agreement for Metalworkers
increase in compensation of about 6%, as follows: an average
60 euros beginning in January 2006, 25 euros in October 2006
and 15 euros in March 2007) plus a lump-sum payment of 320
euros for 2005.
With the exception of the strikes called in Italy for the renewal
(mentioned above), instances of labour unrest were relatively minor.
INTERNAL COMMUNICATION
As part of the bargaining process, the national trade unions
Fiat has always manifested its preference for interpreting internal
place between May 2005 and January 2006, were scheduled
media provide current and retired employees with a constant flow
called strikes for a total of 60 hours.These strikes, which took
and implemented differently at different locations. At Fiat Group
companies, the contract renewal strikes varied between 30 and 58
hours, depending on the location, with about 25% of potentially
affected workers walking off the job.
In Italy Group employees were also awarded the Annual
Performance Bonus. Under the Group-wide Agreement of 1996,
which is still in force, the bonus was computed on the basis of
indicators of the Group’s overall performance, as determined from
the 2004 Consolidated Financial Statements, and quality indicators
for the individual Sectors.
communication as a two-way street. On the one hand, company
of information that keeps them updated on the principal events
at the Group.They also disseminate a common business culture,
promoting common values and objectives. On the other hand,
newspapers, newsletters, and Web sites represent a tool for the
collection of employee opinions, feelings, and needs, which are useful
to the Company in tailoring services and policies for its workforce.
The various traditional publications and new media have thus
created an articulated network of communication that maintains
a lively and continuous dialogue.
131
Daily news
The new Intranet is named “Galileo” and was created in June 2005.
All employees with a computer and company e-mail address can
access it. A total of 40,000 users worldwide can not only access
all other Fiat sites, but also find useful tools for managing their
work and leisure time more effectively.
Based on the B2E (Business to Employee) model and a project
developed around the employee, the portal is divided in four
principal areas. “My group” contains information on the Group
and useful services such as the online stock market, an online
phone-book for Group employees, or Company regulations.
“My Work” is a restricted access personal area with customized
information, tools, and services, such as self-service operating
applications, recordkeeping of the employee’s job attendance
fifteen days and offers news on a regular basis to readers, who
find varying amounts of information on the Group and the Sector
according to the different editions, which are prepared by each
specific Company. The publication Indiretta instead comes out on
an irregular basis, on occasion of particularly important events for the
Group. It informs employees simultaneously with the external press.
Through this function, Fiat highlights the attention and involvement
that the Company offers to and expects from its employees.These
two publications can be consulted virtually on the Group’s website.
Other Group entities produce specific publications that address
topics of interest to the individual Sectors.
The Group monthly magazine
or fuel card management, and virtual rooms.
The monthly magazine Illustrato was created over half a century ago
employees are featured.“Our business” is the area dedicated to the
different Sectors. It has always reported events, products, and people
“My Life” is a showcase where all the subsidies provided by Fiat to
as a tool for exchanging information between employees working in
in the world of Fiat, offering all employees working in Italy an overview
of the Group and its transformations. Like the Company, this magazine
has changed over the years, updating and modernizing itself. Its editorial
format has instead remained unchanged, with the Fiat Group monthly
being considered the ideal link between Fiat and the employee’s family.
The pages dedicated to Company life are accompanied by others
dedicated to Company associations (Group Seniors Association –
Senior Managers Association – Fiat Apprentices School Alumni
Association – Social Activity Centres), health, travel, and culture. Many
sections of the magazine are designed to maintain contact with readers,
offering informative reports and pages for employee contributions.
presentation of the Group’s various activities. Fiat’s social projects will be
presented and described in the area dedicated to corporate responsibility
on the Group Intranet, so that the next Sustainability Report can be
created together.The individual Sectors also operate their own Intranets,
and all are designed to provide specific information and services.
Bimonthlies
With a more traditional format, Flash is a newsletter distributed
on desks or on Company bulletin boards. It comes out once every
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These include the employee-only price lists of Fiat, Lancia, and Alfa
Romeo cars; letters from readers, which are answered by experts on
the magazine staff, and small want-ads that are published for free.
Extremely popular competitions dedicated to both children and
adults are held to engage personal involvement by readers. In fact,
one of the purposes is to involve employees in the big sporting or
cultural events featured in the magazine. In 2004, for example,
stimulus was offered by expansion of the European Union (“Travelling
in the New Europe”). Competitions held in 2005 focused on the
Winter Olympics (“Carry the Olympic Torch” and “I was there – Turin
2006”), the soccer championships (“A Match in VIP style from the Fiat
Café Fiat for work breaks, facing the interior garden. The faces of
at the Museum of Cinema (“Five Questions on Science Fiction”).
the 2006 calendar. Its very title, “La Fiat siamo noi” (“Fiat is Us”),
Box”), the exhibition “Cose dell’altro mondo” (“Out of this World”)
Internal initiatives
Starting from an analysis of workplace and leisure time needs and
expectations, every Group Sector has undertaken specific actions in
order to enhance the contribution made by everyone and offer new
services to their employees.
At Fiat Auto, four lines of action were defined in 2005: environment,
involvement, growth, and recognition. Services and initiatives were
then planned, to be realized with direct participation by employees.
employees who work at plants in Italy and Poland were chosen for
effectively conveys the message: placing people at the centre of
the business process and enhancing the contribution of individuals
as a significant part of a team. The calendar was sent to European
dealerships and, in a smaller format, to all Group employees as
an insert of the monthly magazine Illustrato, which has a press run
of approximately 170,000 copies.
Sevel, where the Ducato is assembled, is preparing the international
“Great Place to Work” competition for the title of “Best Factory
Workplace.”
The CEA (Circle of Excellence Awards) is held annually at CNH
Work is proceeding at plants to improve work and service spaces,
to reward individual employees and teams from all over the world
corridor walls will be brightened by wall murals. The first was
customer satisfaction, value creation, and individual involvement.
from cafeterias to locker rooms and leisure areas. At Mirafiori,
executed by an agency, while the next ones will be created by
Fulvio Eynard, Fiat employee at
Mirafiori, next to the new logo
he designed for the plant.
who made the greatest contribution in support of Company values:
“Bring a Child to Work Day” is the initiative supported every year
by CNH at most of its sites in North America, so that children can
access their parents’ workplace for a day.Through a series of activities
conceived specifically for the program, promoted in accordance with
a similar initiative recognized at the national level, young people can
experience first-hand what their parents do during their working day.
“Managing the Future” is the initiative promoted by Iveco as an
opportunity for encounter with company management.The principal
objective is to work on topics of special interest to the future of the
Company, involving a team of employees from various countries and
employees through an in-house competition. Even the new logo
for the plant was chosen this way, from 500 sketches. The winning
proposal was submitted by Fulvio Eynard, who works in assembly
engineering. It represents a stylized Mole Antonelliana to emphasize
the plant’s close ties with Turin and recall that automobiles have
been and will continue to be extremely important to Mirafiori.
Engineering & Design is acting as a laboratory for experiments on
a whole range of initiatives: the English-language cinema, which is
free of charge and staffed by a tutor; a new interactive, closed
circuit television system, which has replaced the old bulletin boards;
with varied professional experience and levels of responsibility.The
principal innovation consists in the encounter of ideas generated
during work with several representatives of the Iveco’s Strategic
Committee, in a setting of dialogue and open collaboration.The
Open Door section on the eportal web environment is offered in
the same spirit.This communication channel allows people to ask
questions or send suggestions to Iveco executives.
“Vieni fuori creativo” (“Be Creative”) is the online bulletin board
that Elasis, a research centre headquartered at Pomigliano d’Arco
(Naples), activated to involve people and stimulate them to express
innovative ideas on work organization and environment. Many of
133
the proposals have already been realized. A large painting by Cuono
The Chief Executive Officer illustrates company performance in
composed by Angelo di Mita and Moio Castrese, are a few examples
customers or cases of merit. He then opens the session up to
Dell’Olmo and music that plays when callers are placed on hold,
of this creativity.
At Comau, all employees in the Body Welding & Assembly Area
were involved in two sessions to analyze the findings that 13 working
teams reached on the weaknesses of the business unit and corrective
measures to be implemented for optimizing the results of their work
and satisfaction of end customers. Analyses and redesign focused on
questions and answers. At the end of the discussion, the participants
fill out an anonymous questionnaire to express their level of
satisfaction.
Direct contact with the Chief Executive Officer is also possible at
the Brazilian subsidiary of Fiat. Any employee can start a dialogue
with the CEO via Internet. People who do not have a computer at
procedures, guidelines for bidding and contracting, quality standards,
work can access the site through one of the 13 personal computers
During 2005, Comau conceived and developed the Travel Kit, a
CEO” program was recognized as the best practice for employee
and applications.
guide for those who travel frequently on business that contains the
information necessary for getting around the destination country,
including references to the local authorities, Italian entities abroad,
and other information useful for dealing with the new environment.
The Travel Kit was also published on the Company Intranet so that it
could be rapidly consulted and widely distributed amongst colleagues.
All pregnant women associated with Teksid in Brazil, either employees
or wives of employees, may attend a Company training course
together with their husbands in order to receive information about
birth from health care professionals and various aspects of maternity.
The “Bem Nascer” program has been active since 2004 and thus far
attracted the participation of 56 couples.
Also in Brazil, an “Encontro com o Superintendente” has been held
for the past 12 years.This is a monthly meeting between Company
management and groups of hundreds of blue and white collar
workers per shift.
134
terms of volumes, new initiatives, and any problems reported by
installed at various points throughout the factory.The “Talk with the
relations by Exame, the leading Brazilian business magazine.
A company radio station is operated at Fiat Auto Poland, transmitting
30-minute long broadcasts every day that are prepared using their
own journalistic material. Prize contests are periodically held over the
radio for employees, who offer tickets to concerts, fairs and events,
sports competitions, movie tickets, Fiat calendars, and promotional
gadgets. In 2005, 34 competitions were held, with 138 prize winners.
The Bielsko-Biala and Tychy factories also have two equipped
gymnasiums and a sauna open to use by employees and their families.
Many of the initiatives undertaken, including improvement of the
radio broadcasting equipment, installation of Intranet points for
blue collar workers in lounges and dining rooms, and the provision
of new gym equipment were suggested by the employees
themselves through a satisfaction survey conducted through internal
communication channels.The survey attracted more than 800
responses.
EMPLOYEE BENEFITS
Fiat Associations
The Fiat Group promotes a number of internal associations,
particularly in Italy. In 2005, the Group invested 1,759,000 euros
in the activities of these associations. Fiat associations include:
UGAF, the Fiat Group Seniors Association, with a worldwide
membership of 95,000 employees and former employees with
at least 25 years of seniority.
the Fiat Senior Managers Association (GDF), which represents
the Group’s current and retired senior managers.The association
has 3,250 members around the world.
Fiat Apprentices School Alumni Association (Ex-Allievi Fiat),
with 3,382 members who prepared for their careers through
Supplementary Health Plans
Nearly all of the Group Companies participate in supplementary
health plans, nearly all of which are provided by insurers. Coverage
levels vary from country to country, depending on local public
healthcare systems and the local market restrictions, opportunities
and competitiveness. In many countries, moreover, Fiat provides
health care services directly at its own facilities, which include
examining rooms and other specially equipped areas.
In most cases, supplementary health plans are available to senior
managers, professional staff and their families, and involve a
population of around 100,000 people.
an on-the job experience at the Company’s Apprentices School.
Vacation Centres
members, which promote and coordinate cultural, recreational,
8 and 12, a two-week vacation at the seaside or in the mountains
Social Activity Centres (Cedas), an organization totalling 79,000
sports and leisure time activities for Fiat employees and their
families.
Supplementary Pension Plans
Almost 60% of the Group Companies offer supplementary pension
plans, introduced in all countries where local legislation and social
security systems allow such plans.
As a general policy, the Group prefers defined contribution
retirement plans, though defined benefit plans are also used in areas
where they are the market standard or were already in place at the
time the company involved was acquired by the Fiat Group. Defined
benefit plans are essentially restricted to the English-speaking
countries, Great Britain and the United States in particular.
SCHOLARSHIPS
The Fiat Grants and Scholarships Program for children of active
Group employees in Italy and around the world in countries
where Fiat Group has a significant presence such as Poland, Brazil,
the USA, France and Spain, continued in 2005. In 2005 a total of
581 scholarships were assigned, of which 185 in Italy and 396
abroad, for a total amount of 1,032,000 euros. Furthermore,
UGAF assigned 568 scholarships to children of former employees.
In Italy, the Fiat Group offers its employees’ children, aged between
between mid-June and mid-August.
In 2005, 1,472 children stayed at the Group’s vacation centres at
a cost to the company of 1,133,440 euros.
Sisport
Active under various names since 1922, Sisport Fiat S.p.A. is the
Group’s sports Company. Sisport centres are located in and around
Turin, where they cover over 300,000 square meters. In 2005, around
490,000 people used Sisport’s facilities. Since 1928, Sisport Fiat
organizes the Agnelli Trophy, a nationwide competition featuring a
number of different sports events, joined by all of the Group’s plants
and Functions in Italy. 2,442 people participated in the 2005 edition
of the Agnelli Trophy, for a total of 5,463 participants in the various
competitions of the Trophy. In 2005, the Group’s companies in the
Turin area contributed around 1,904,000 euros to support sports
activities for their employees.
Other benefits
The Group also extends discounts and interest-free or low-interest
loans to its employees for purchases of its products, cars in particular.
135
Community
The Fiat Group is aware that its work has a profound influence on
the communities where it operates, promoting their economic and
social growth and helping make a higher standard of living more
accessible to all.
For this reason, the Group has always paid close attention to the
Charitable gifts
Community investments
Commercial initiatives with social impact
Socially sustainable business initiatives
wellbeing of the communities where it operates, working together
As grouped in the pyramid model, these forms of involvement range
has generated.
by a concern for their return to the business – such as charitable
with associations and local institutions to share some of the wealth it
To measure its contributions to the community openly and effectively,
the Fiat Group uses the model developed by the London
Benchmarking Group, which identifies four categories into which
Charitable gifts
4,361,300 euros
5,684,800 euros
5,082,700 euros
1,643,800 euros
Total
16,772,600 euros
Accounting data
136
different forms of community involvement can be classified:
Social Responsibility Community
from activities inspired more by a sense of corporate citizenship than
donations to good causes – to core business activities with a high
social value. In 2005, Fiat Group’s contributions to communities
totalled 16,772,600 euros, broken down as follows:
Charitable gifts, with no concern for
a return to the business
Costs and investments for initiatives in favour of
the communities where the headquarters
and/or plants are located
Costs and investments for social initiatives
aimed at promoting
commercial initiatives
Costs and investments
for business initiatives
with high social value
CHARITABLE GIFTS
In 2005, Fiat gave away over 4.3 million euros in the form of
charitable gifts.
This item covers all forms of support given freely without any
obligation of recompense. The donations, made in the form of cash
or in kind, were offered in support of important social solidarity
projects sponsored by foundations or non-profit associations, or
directly by Group Sectors worldwide. The following pages list the
most important gifts made.
Fondazione Giovanni Agnelli
Working with research tools to contribute to the advancement of
public debate is the mission of this foundation. A non-profit cultural
and research institute in the field of social sciences, it was founded
in 1966 by Fiat and IFI on the occasion of the one hundredth
Its commitment to supporting young scholars materialized in the
form of the “Giovanni Agnelli” research grant in the economy of
contemporary art, in collaboration with UniCredit Private Banking,
scholarships for master’s degrees in scientific and technological
disciplines offered to children of Fiat Group employees, and
occasional scholarships offered as part of research programs.
The Foundation belongs to the Torino Internazionale association
for development of a strategic plan for the city, and it actively
participates in the debate on its future.
In 2005, Fiat donated 50,000 euros to the Foundation.
Fondazione Edoardo Agnelli
Created by Senator Giovanni Agnelli and recognized as a
charitable trust in 1950, the Fondazione Edoardo Agnelli per Attività
Assistenziali e Sociali (“Edoardo Agnelli Foundation for Charity Work
anniversary of the birth of Senator Giovanni Agnelli. It is based in
and Social Activities”) sponsors programs in favor of social solidarity.
Chairman is Maria Sole Agnelli, and its Vice Chairman is John Elkann.
and institutions that operate in the field of social welfare and public
Turin and is supported by its own endowment and donations. Its
The Foundation works on research programs, organizes seminars
and conferences, publishes the results of studies in the “Edizioni della
Fondazione Giovanni Agnelli,” communicates with the public through
the media and Internet (www.fondazione-agnelli.it), and participates
in the networks of Italian and European foundations. It has a library
open to scholars and students.
In 2005, its activity was focused on the program “People,
Its work is concentrated in favor of the most disadvantaged persons
health, instruction, and education.
The principles, terms, and conditions for financial support are defined
by the Foundation Board of Trustees, consistently with the objectives
set forth in its bylaws. The Fiat Group has supported the Foundation
since its formation, granting it 116,000 euros in 2005.
Fondazione La Stampa - Specchio dei Tempi
Generations, and Development,” which confronts the demographic
Established in 1982, the Foundation is the institution through which
human and social capital.
offering material aid to needy people, as reported in newspaper
transformations of Italian society, in view of improving and training
In particular, major emphasis was placed on integration of the second
generation of immigrants, in order to focus the public’s attention on
a strategic resource for the country.
The specialized centers operating at the Foundation carried on
readers of the daily newspaper “La Stampa” express solidarity by
articles or letters to the editor.
The objective of the Foundation is to promote socially important
initiatives and provide assistance to individuals, families, or
communities afflicted by personal misfortune or natural disasters.
important projects: the Centro Altreitalie on Italian migrations;
In 2005, the most important project of Specchio dei Tempi was
Documentation of Foundations”); and the Centro di Studi Religiosi
school reconstructed in that nation after the tsunami. Three storeys
Comparative Religious Studies”).
maximum capacity of 450 children. The building was constructed in
the Centro di Documentazione sulle Fondazioni (“Center for
Comparati Edoardo Agnelli (“Edoardo Agnelli Center of
dedicated to Sri Lanka. In Matara, the Foundation opened the first
high, it houses 12 classrooms, a lounge, and four laboratories, with a
137
cooperation with the Gruppo Umana Solidarietà (“GUS”) of
CNH for hurricane victims
Macerata. A second elementary school was built at Hubaraduwa,
Case and New Holland donated over $ 1 million in aid for the victims
Together with the GUS, the Foundation realized numerous other
Coast of the United States, and in support of reconstruction work,
and a third has almost been completed at Megalle.
initiatives in Sri Lanka: the donation of 80 fishing boats to 80 families,
the scholastic adoption of 100 orphans, the delivery of a school kit
to 2,462 children between the ages of 5 and 13, and even the
purchase of a “tuk-tuk” (one of the small taxis built on the chassis
of the Piaggio Ape).
Specchio dei Tempi does not work only in Sri Lanka. In southern India,
at Vellappalam in the district of Negapatthinam, a nursery school for
320 children, a community center, a town hall with a public health
clinic, and a meeting room were completed during the summer.
In Thailand, financing continued for three refugee camps at Takuapa,
near the border of Myanmar. Work is underway on the Don Bosco
Technical School at Suratthani, and preparatory urbanization work is
being performed in the area where the Batong orphanage for 85
of Hurricane Katrina, which devastated several states on the Gulf
including approximately $ 200,000 donated by its partner Kobelco.
The aid plan involved sending emergency supplies and equipment to
the disaster zones. CNH also donated to the American Red Cross
Disaster Relief fund an amount equal to what was collected through
the individual donations made by employees. A total of over
$ 200,000 (approximately 160,000 euros) was donated in 2005.
Furthermore, it will continue monitoring the reconstruction process
and work together with its dealers, the Business Roundtable, and the
National Association of Manufacturers to channel relief efforts.
Ferrari for the victims of the tsunami
A special Enzo Ferrari, promised by Chairman Luca Cordero di
Montezemolo to Pope John Paul II for humanitarian purposes, was
Left, first day at the Sri Lankan school
that was rebuilt by the Fondazione
La Stampa-Specchio dei Tempi.
Right, the special edition Enzo Ferrari
donated to Caritas in support of
the tsunami victims.
children will be built, in the extreme south of the country.
sold at a Sotheby’s auction in June for 950,000 euros. The model
continued. This project gives a Christmas check of 400 euros to
hundredth – was added specifically in order to generate funds for
In Italy, the “one month’s bonus for senior citizens” program
indigent people over 65 who live alone and are frequently referred
by volunteer associations. About 2,400 senior citizens received this
donation to Caritas for aid to victims of the tsunami that struck
Southeast Asia. A handwritten dedication by Chairman Montezemolo
gift in 2005.
is found under the truck of the two-seater sports car: “This Enzo,
La Stampa, and its trustees contribute their time and work free
in suffering, inspired by a great pope, John Paul II.” On December 5,
The Foundation is managed exclusively by the publisher Editrice
of charge. The Fiat Group donated a total of 116,400 euros to
Specchio dei Tempi.
138
was produced in a limited series of 399. One more – the four
the only one in the history of Ferrari, as a sign of solidarity for those
2005, Pope Benedict XVI received the Chairman of Ferrari in a
private audience, where he delivered the check to the Holy Father.
A tractor for charity
CNH in Jesi donated a TN 75 DA tractor to the Primavera social
cooperative in San Benedetto del Tronto, which is dedicated to social
integration of youths afflicted by psychological problems. The tractor
will be used in the project “The Flower Factory,” which will make it
possible to increase the amount of land it cultivates and number of
persons employed through the construction of a nursery covering
1.1 hectares.
Operation “Daily for Light”
Ecuador, a country whose natural beauty contrasts with the poverty
of its population, especially in small, isolated villages.They lack the
most elementary necessities, from electricity to food, while education
and health care are insufficient.
Iveco, which has always been committed to defending and spreading
the values of solidarity and respect for people and the environment,
donated a Daily 40.10 WM 4x4 fitted out as an ambulance to the
extraordinary tour of China, Ferrari delivered books, school materials,
and games worth a total of 10,000 euros to particularly needy schools.
Grande Punto, kindness wins
The “Key Hunt,” a competition sponsored by the Direct Sales Center,
ended in December without a winner. Over 10,000 Fiat Group
employees tried their luck by seeking the right key in a huge urn that
would start the Grande Punto displayed in the showroom. However,
no one managed to start it up. The car was donated to the Istituto
per la Ricerca e la Cura del Cancro (Institute for Cancer Research
and Treatment) in Candiolo, Province of Turin. This is a private
institute that has been on the front line since 1997 in the battle
against cancer, providing people with the results of the most
advanced research in the oncological field.
Alfa Romeo against AIDS
On occasion of the Cannes Film Festival, Alfa Romeo and several
movie stars participated at an important charity event. An auction
Left, the Ferrari tour in China
included stopovers at schools,
to deliver books and games.
Right, Sharon Stone auctioned off
the Alfa GT during the Cannes
Film Festival.
Fepp (Fondo Ecuadoriano Popolorum Progressio) Association, which
was held at the Moulin de Mougins on behalf of the “Elton John
The vehicle will transport five electric generators and provide
in the fight against AIDS. An Alfa GT, placed on auction by special
coordinates the Salesian Father missions operating in the country.
medical assistance to the population.
Ferrari, solidarity tour of China
AIDS Foundation” and AMFAR, two of the most active organizations
guest Sharon Stone, was sold for 59,000 euros.
Cars and minibuses for disabled persons
One of the two 612 Scaglietti models that participated in the
Iveco donated two minibuses to the Greek Society for Disabled
Square, during its stop in Beijing. The proceeds, 3.4 billion renminbi
diagnosis, medical, therapeutic, and educational services to young
“Ferrari 15,000 Red Miles Tour” was sold at auction in Tien An Men
(equivalent to 356,200 euros), was donated to the Soong Ching Ling
Foundation, which aids needy Chinese children. During this same
Children (Elepap), a non-profit association that provides support,
disabled persons up to 16 years old. Elepap currently has six
rehabilitation centers and offers its services to over 1,000 children.
139
Fiat Auto supported the charity lottery organized by the
The level of financing in favor of nursery schools in Brazil is barely
which provides home care to disabled persons in Kosovo. It has 12
near the factory, by donating educational materials, toys, and children’s
prize. The proceeds were contributed to the Handikos association,
centers that assisted more than 43,000 persons.
Solidarity contest at Teksid
The solidarity contest sponsored by Teksid in Brazil was held for the
sufficient to cover basic costs. Teksid helps some of them, located
books. This program benefits 16 schools with a total population of
2,400 children, many of whom are children of company employees.
Magneti Marelli for Brazil
fourth year running. It is held in favor of the community of Vale do
In 2005, Magneti Marelli embraced the cause of several public
employees are involved from the start of the campaign, through the
were made in favor of the “Casa Bethânia da Paz,” a non-profit
Jequitinhonha, the poorest region in the State of Minas Gerais. All
distribution of informational material and meetings with management,
and continues with competitions between departments in collecting
clothing and food. Then lots are drawn to select individuals from a
pool of employees who have expressed their willingness to deliver
the collected items to the population. A company doctor and nurse
accompany them to the distribution site.
The aid consists of food, clothing, shoes, medicine, and educational
material. Workshops are also held on basic personal hygiene,
nutrition, and prevention of sexually transmitted diseases.
Assistance for an orphanage
Teksid continues to aid “Lar Efatà” in Brazil, a hospice for orphans
and children who are the victims of violence. It contributed to its
foundation by donating the building and provides financial support
for its maintenance and operating costs. This institution is home
to twenty children.
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Books and games at nursery schools
Wamba-Athena non-profit association, offering a Fiat Panda as first
health facilities, supporting two in particular. The donations
organization that provides psychological and social assistance
to 130 children between the ages of 8 and 14, and the “Centro
Boldrini” Hospital for the treatment of tumors. The donation
made by Magneti Marelli to this latter organization will go towards
the construction of a radiotherapy center that is more modern
and advanced than the current one.
A magician for hospitalized children
A large colored painting decorates a room at the Regina Margherita
Hospital in Turin.
It was painted by an employee of the Fiat Style Center, Francesco
Zarilli, who was joined by colleagues in presenting it to the medical
director of the hospital,Vinicio Cantucci (photo).
The same day, several Fiat employees and a magician brought toys and
gadgets to the children’s wards to cheer up the hospitalized children.
COMMUNITY INVESTMENTS
In 2005, the Fiat Group invested approximately 5.7 million euros in
(23 paintings and two sculptures) that date from the 18th century
to the mid-20th century.
social projects on behalf of the communities where it has offices
The displayed works include a collection of seven canvases by Matisse,
Its “community investments” involve medium and long-term
of the automobile, and masterpieces by Severini, Modigliani, and
or production plants.
programs and projects whose purpose is to contribute to the
resolution of serious social problems, protecting the territory where it
is located, and promoting important cultural or artistic initiatives.
Its principal activities in this field are focused on the poorest areas of
Brazil, where the Fiat Group has a major industrial presence and has
been directly involved for years, together with public institutions, in
breaking the cycle of poverty and realizing the social and economic
emancipation of vulnerable families.
Pinacoteca Giovanni e Marella Agnelli
Over 55,000 persons visited the Pinacoteca Giovanni e Marella
Agnelli in 2005. This art gallery is found in a structure on top of the
one of a kind in Italy, a 1913 painting by Balla inspired by the speed
Tiepolo. The collection also includes precious pieces of Venetian art:
six extraordinary views of Venice by Antonio Canal, “Il Canaletto,” and
two views of Dresden by Bernardo Bellotto. The precision of these
last two works is so great that they were used as guides to reconstruct
the city after World War II. The gallery also features works by Picasso,
one from the blue period and another from the Cubist period, and
Impressionistic works by Renoir and Manet. The collection is completed
by two statues in gesso by Antonio Canova, the Dancer with a Finger
on Her Chin and the Dancer with Her Hands on Her Hips.
The Pinacoteca occupies five floors beneath the “jewel box,” where
space is available for temporary exhibitions, an art education center,
offices, and a bookshop. Three temporary exhibitions were held in
The permanent collection of
the Pinacoteca is complemented
by temporary exhibitions that
contribute to Turin’s reputation
as a city of art and culture.
Lingotto Building in Turin, which was the first large Fiat factory. The
2005: Drawings and Prints in Expressionism, Ferrari by Mailander,
Agnelli and his wife Marella.
and Views from Poussin to Canaletto. Paintings from Palazzo
gallery contains a permanent display of art that belonged to Giovanni
Construction of the gallery culminated the twenty-year-long process
of transformation of the Lingotto.
In addition to the costs for remodeling the building, Fiat also provides
and Moving Passion. Until May 14, 2006, the exhibition “Landscape
Barberini” is on display.
The seeds of change in Brazil
economic support to the Pinacoteca for cultural activities, with the
Fiat’s Brazilian subsidiary promoted a wide-ranging project whose
city of culture.
of children, adolescents, and adults of the Jardim Terezópolis
aim of disseminating knowledge about art and promoting Turin as a
This “jewel box” is endowed with 25 extraordinary masterpieces
principal aim is to encourage the social and economic development
community in Betim, one of the poorest areas in the metropolitan
141
region of Belo Horizonte. “Arbore da Vida” – as the program is
Far from the perils of street life
called – embraces a large number of initiatives. Literacy courses are
The other major commitment made by Fiat in Brazil was for the
to satisfy labor market demands (salesman, seamstresses, craftsmen,
contributes to the human development and social integration of
offered for children and adults, professional training courses designed
telephone operators, mechanics, and electricians), sports, and cultural
activities. The establishment of an employment agency and the
provision of microcredits for the launch of economic activities is
generating new employment opportunities and encouraging the
creation of new enterprises.
project “Esportista Cidadão,” an ambitious educational program that
over 700 children and teenagers from the Serra community in Belo
Horizonte. Starting from the concept of a supplementary school,
which the students attend outside of their traditional school hours,
the program was promoted by Fiat in 1998 and offers youths
sports, cultural activities, and learning laboratories in order to keep
These activities not only support the local economy but also offer
them away from the perils of street life. Most of these activities
numbers about 40 million people, many of whom in marginal living
city, to encourage direct contact between children and nature.
numerous benefits for the population of Jardim Terezópolis, which now
conditions.
Since the project was launched in 2004, its initial results are the
longer stay of youths in the educational system and improvement
in their academic achievement. The professional courses also
achieved major accomplishments: over 43% of the students who
are carried out in Mangabeiras Park, the largest green area in the
Each participant is offered two meals a day, medical and dental
care, and periodic check-ups.
Fiat also set up a library inside the park that now contains 3,000
books and is open to the entire community.
A team of social workers monitors the participating youths, checking
As illustrated on this and the facing
page, Fiat sponsors numerous projects
for the poorest communities in Brazil.
These include recreational, cultural,
and sport activities that keep kids
off the streets; literacy courses;
and professional schools.
finished the course in 2005 had found work by March 2006.
their academic progress and health, especially with respect to
handling the organization, construction, and revitalization of public
It is estimated that a total of about 3,000 persons benefit from
“Arvore da Vida” also focuses on the environment of community life,
meeting spaces. The basic idea is to construct a new social model
together with citizens that promotes a profound transformation from
within in human, social, and economic terms. The project now enjoys
the project.
For an educated Brazil
the involvement of public and private entities, schools, and volunteer
In collaboration with the city of Betim, Fiat sponsors the ABC+
expected that at least 6,000 families will have benefited from it over
Unlike most projects of this type, which are generally limited to
associations with the sponsorship of the Italian Embassy. It is
the course of six years.
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nutrition of children under the age of five and pregnant women.
program, which aims at steadily eliminating the scourge of illiteracy.
teaching people how to read and write, ABC+ offers a course that
starts with basic literacy and goes as far as the fourth grade of
The building, which covers an area of over 3,400 square meters,
Betim had about 20,000 illiterate persons. After two years of courses,
laboratories, administrative offices, and a café. The project also
elementary education. When the project was launched in 2003,
this number has shrunk by approximately 9,800 persons.
Parallel to this program, CNH, in partnership with the Social Service
for Industry, initiated a literacy course for children and adults in
contains two exhibition galleries, an area reserved for learning
envisages later construction of a two hundred seat theater. This
initiative represents a major stride forward in establishing a high level
dialogue between the two cultures, reinforcing common values and
March 2004. The principal aim of this project is to provide concrete
simultaneously highlighting their unique characteristics. All revenues
the “First Job Program.” The students receive textbooks and teaching
institutions operating in Nova Lima and Belo Horizonte.
assistance for integrating these persons in the job market through
material free of charge, one meal a day, and a course completion
certificate.
The Fiat House of Culture
The Group celebrated the 30th anniversary of its activities in Brazil
with a special project: the Casa Fiat de Cultura, a privileged, versatile
space destined to become the seat of big expositions and major
cultural events.
generated by admission sales are donated to the social assistance
Fiat and dealerships join forces to help youths
Recofiat is a professional electromechanical school founded in 1996
by Fiat and its Rio de Janeiro commercial network. Every year 70
youths are chosen from the poorest families of Caju, the city’s
harbor area. They are offered an 11-month course that combines
classroom instruction with paid internships at dealerships. Fiat also
provides the participants with medical and dental care, educational
Located in the region of Belo Horizonte, Casa Fiat opened at the
material, cars for driving lessons, and instructor training. In its ten
between Italy and Brazil, “Italian Art at the São Paulo Museum,” one
They have all found jobs at dealerships or mechanic shops. The
beginning of the year with a symbolic exhibition testifying to the ties
of the most significant collections from the MASP. Sixty-two works,
including paintings by great Italian masters like Titian and Tintoretto,
sculptures, archaeological artifacts from Magna Grecia, Etruria, and
classical Rome, majolica from the 15th and 16th centuries, ancient
texts by Vitruvius,Vasari, Leon Battista Alberti, and Leonardo da Vinci
were exhibited for the first time outside the walls of the museum
in the capital.
years of activity, the school has trained 700 specialized technicians.
first school for car body workers and painters was opened in
December. It offers youths participating in the Recofiat with
further work opportunities.
Craft workshops against poverty and delinquency
Teksid supports the “Salao do Encontro” project in order to promote
the education of teenagers who live in metropolitan areas near the
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Brazilian plant, which is one of the poorest in the region and afflicted
Formare, an integration project
by a high rate of poverty and delinquency. The project envisages the
The Formare project continued in 2005. It was started by Magneti
wickerwork.
which coordinates social investments by enterprises in Brazil. The
establishment of craft courses, initially carpentry, weaving, pottery, and
It will be developed in collaboration with the City of Betim, which
provided the areas on which the workshops would be built;Teksid do
Brasil, which will construct and furnish the training centers; and the
charitable institution Salao do Encontro, which will provide the teachers
and operate the “school.” The project will involve about 200 youths.
Factory school
Created through a collaboration between CNH and the Brazilian
federal government, the “Factory School” project was launched in
September 2005 to train 40 youths in industrial logistics. The first
group will finish its training in March 2006, after a factory internship.
The industrial assembly course will start the following month.
Group photo of the Brazilian
youngsters participating in an
industrial logistic course at CNH.
Marelli in 2004 together with the non-profit foundation Iochpe,
project envisages starting up professional schools at company plants
for youths from low-income families.
The courses, which are one year long, are taught by 300 volunteers,
employees of Magneti Marelli. The students also receive adequate
assistance to attend school, in the form of transportation services,
scholarships, meals, and medical care. Such a sweeping program has
multiple aims: not only does it offer adequate preparation for the
job market, training at the company helps to develop the potential
of these youths, promotes human relations, and integration as citizens
and professionals, and lays the basis for social advancement.
Recognition for the significant social impact of the Formare project
has been received from the federal government and the Ministry
of Education.
Let’s save Brazil’s treasures
Started in 2004, the Tesouros do Brasil (Brazil’s Treasures) project
offers continuity for the cultural initiatives of Fiat, which have taken
the form of film, photography, and literary competitions for students
at schools nationwide over the last several years.
At the end of each project, the selected works were assembled
in a film documentary, a book of photographs containing over 100
images chosen from 30,000 submissions, and the book “A Poem
Entering the job market
In Brazil, Magneti Marelli decided to commit itself in favor of
youths between the age of 16 and 18, in order to acquaint them
with company processes and help them enter the job market.
The investments made in this field and the professional education
competitors.
With “Brazil’s Treasures,” Fiat aimed to broaden its cultural approach
and extend it to history, artistic heritage, natural resources, and
intangible assets, such as the memory of a community or a city. The
participating schools, at the elementary and middle school levels,
programs are offered in collaboration with different non-profit
supported by a learning kit and a specific Web site, are asked to
Integration Center, and the Salesian Youth Support Center. A total
an interdisciplinary approach, the competition aims to arouse direct
institutions, such as the Institute for Promotion of Minors, the Social
of 83 youths participated in the project at the various business units
of Magneti Marelli.
144
Entitled Brazil,” which collected the best writings of over 130,000
draft an awareness project to promote cultural heritage. By means of
interest in young people of the history and culture of the place where
they live. Beyond its educational value, it also represents a precious
source of research material on the national historical and artistic
months, and those who achieve an average grade of seven points
Affairs and Unesco.
materials for the next year free of charge.
heritage, thereby attracting support from the Ministry of Cultural
In 2005, over 25 million youths were involved, with a total of 783
proposals sent. The results will be announced in May. The award
will consist of a trophy for the winning school, a certificate for each
participating student and teacher, and several cash prizes totaling
about 16,500 euros as a contribution for starting the awareness
program.
Best students with CNH
The “Melhor Aluno” project of CNH was conceived for young
Brazilians between the ages of 7 and 16. Participants include the
children of employees and 50 youths from the local community. In
addition to encouraging youth participation in sports, the program
aims to support them in their studies.
The academic progress of students is checked once every two
(out of ten) or better receive textbooks and other educational
The company medical service monitors all participants during their
growth, with periodic check-ups and social assistance service.
Family involvement is fundamental to the success of the program,
whose principal aim is to keep youths away from drugs and violence.
Italian courses for Chinese
To promote knowledge of Italian in China and cultural exchange
between the two countries, the Group Sectors operating in that
country have been providing financial support for the Italian courses
offered at the Nanjing Teaching University for four years now. The
courses started in October 2001 with the sponsorship of Fiat Auto,
Iveco, and Teksid, and in 2005 the first students were awarded a
university degree in Italian. The program is also supported by the
Italian Ministry of Foreign Affairs.
The projects sponsored on behalf
of the Brazilian community include
supporting courses for elementary
school students and expectant
mothers.
Healthy maternity
This is a complete program for pregnant women from the poorest
classes of society. The purpose of the project is to prepare future
mothers for pregnancy, birth, and motherhood, giving them the
chance to share the experience with other women and receive a
series of practical information. It is divided into six modules, each of
which involves a monthly meeting for two hours in CNH buildings.
Thirty-five women have participated in the program since it was
launched in December 2003.
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COMMERCIAL INITIATIVES WITH SOCIAL IMPACT
In 2005, Fiat invested over 5 million euros in commercial initiatives
with a commercial impact. These brand promotion programs were
connected with a significant social, cultural, or sports activity. In choosing
which activities to support, every Group Sector favored those that
were most consistent with its own core business. For example the
Automobile Sector and the Commercial Vehicle Sector focused their
efforts on promoting highway safety, while the agricultural equipment
segment favored biodiversity and sustainable agriculture.
buses were the exclusive means of transport for athletes, journalists,
spectators and volunteers.
Furthermore, the 3,000 volunteers of Torino 2006 were given special
training in safe driving to which the Group contributed Fiat Idea,
Lancia Musa and Alfa 147 models.
… and partner of the Paralympic Games
The Fiat Group was also Official Partner of the IX Torino 2006
Fiat also dedicated major economic and professional resources to the
Winter Paralympic Games. A chance to highlight the Group’s social
Olympiad.
to the start up of a number of initiatives.The most important of
Torino 2006 Winter Olympic Games, Paralympic Games, and Cultural
Fiat: the engines of the Olympic Games…
Fiat was Main Sponsor of the 2006 Winter Olympic Games, an event
that will have a significant impact on the economy and image of Turin,
Piedmont and Italy.
Fiat Group’s support to the XX Olympic Winter Games dates back
commitment in favour of disabled people, which over time has lead
these initiatives is the Autonomy Program, that was launched in 1995
with the aim of facilitating and improving mobility for the disabled.
For the Paralympic Games too, all transport needs were covered
by Group cars, buses and minibuses equipped with the necessary
special devices and wheelchair lifting gear.
Cultural Olympiad
to the city’s candidacy, thanks mainly to the personal commitment
The Fiat Group participates in the Cultural Olympiad with four
was President of the Honorary Committee of Torino 2006.
the offer on the Olympic arenas. The most important initiative is
and international connections of Giovanni Agnelli who, at the time,
initiatives, in order to enhance existing cultural heritage and enrich
Fiat decided to contribute to the success of the event by providing
the exhibition “Landscape and View from Poussin to Canaletto”,
professional skills and organizational know-how.
With 65 paintings from the XVII and XVIII century borrowed
the Olympic Committee with financial resources, products,
In economic terms, total contributions are worth 40 million euros.
Naturally, Fiat’s greatest commitment is represented by the supply of
146
vehicles: more than 3,000 Fiat Auto cars and 1,200 Iveco Irisbus
hosted at the Pinacoteca Giovanni e Marella Agnelli until May 14.
from the Palazzo Barberini collection, the exhibition goes over
the history of landscape painting. Poussin, Canaletto, Bellotto,
Guercino, Salvator Rosa, Van Wittel and Guardi are just some
proper driving attitudes and safe driving techniques for controlling
Moreover, the Group scheduled a special opening of the Centro
encountering a sudden obstacle or slippery road surfaces.
of the artists whose paintings are on show.
Storico Fiat – Fiat Historical Centre – that hosted the exhibition
“Driving Force”.Vehicles, posters, models and memorabilia from
the past and the present trace the evolution and history of Fiat, and
celebrate the fascination of Italian style and technological progress.
The film “Motore!” was produced to narrate the connection between
film and engines. It was edited by Corrado Farina with excerpts
from 58 fictional films. An exhibit of photographs from the Fiat
Historic Archive was also held at the Museum of Cinema.
the car in both normal and emergency situations, such as
Alfa Romeo provided ten competition cars (Alfa 147) for the Safe
Driving Championship, three of which were awarded as prizes to
the winners of the contest. Iveco provided four Daily 35 C 17 HPT
vans for logistical support. Magneti Marelli provided the systems for
telemetric analyses – computerized evaluation of the quality and
precision of conditions under normal driving conditions.
Iveco supports TIRispetto
Finally, Fiat participated in the special edition of Artist’s Lights, the
Iveco participated for the second time in the highway transport
City of Turin. “Slivers of light,” a work by the artist Mimmo Paladino,
sponsored by the Ministry of Infrastructure and Transport to
grand open space contemporary art exhibition promoted by the
remained illuminated atop the Fiat Office Building at Mirafiori
throughout the Olympic Game period.
safety campaign “We’re all on the same road: I respect you,”
promote public compliance with the motor vehicle code. This
was a spectacular program: six tractor-trailers traveled throughout
Mimmo Paladino’s work covers
the entire façade of the Mirafiori
building, 220 meters long and
37 meters high.
On the right, a trajectory test
during the national safe driving
championship.
Youth safety
Alfa Romeo, Iveco, and Magneti Marelli also sponsored the second
edition of the Italian Safe Driving Championship. The event, promoted
by the Prime Minister’s Office and the Ministry of Infrastructure, was
focused on young people between the ages of 18 and 25. Its
purpose was to increase the awareness and acceptance by young
people of the benefits of highway safety, proposing positive models
that they can imitate for safer, more responsible driving habits. The
staff, led by Andrea De Adamich, taught over 18,000 participants
Italy, displaying the slogan of the campaign painted in big block letters
on the sides and stopping in eight cities, where conferences, film
screenings, debates, and various initiatives on highway safety issues
were organized.
Iveco provided three vehicles for the traveling caravan and promoted
an informational campaign on the technological devices that are
already available or being developed for active and passive safety.
It will subsequently carry out research project in collaboration with
the Transport Systems Research Center (CSST).
147
CNH in support of FAO
The biggest makers of agricultural equipment and the governments
of 160 countries participated at the Conference held by the United
Nations Food and Agriculture Organization (FAO), which is
responsible for global nutrition.
Presenting a selected range of agricultural and construction
equipment, New Holland and Case attended the event, celebrating
the 60th anniversary of FAO and Unacoma (Unione Nazionale
Costruttori Macchine Agricole – “National Union of Agricultural
of sustainable agriculture that respects the environment and cultural
identity of peoples, providing its own technicians to small-scale
farmers to deal with various problems. Thanks to its contribution,
this program will dispose of avant-garde technology and the widest
range of agricultural equipment in the sector, capable of satisfying
the most diverse requirements of farmers worldwide.
Committed to the historic buildings of Turin
The Fiat Group is a founding member of the Council for Promotion
Equipment Makers”). CNH also participates on the “Acacia Project”
of Heritage (“Consulta per la Valorizzazione dei Beni Artistici e
bordering on the Sahara into arable land.
support for recovery of the city’s historic buildings. In 2005,
of FAO, which combats desertification and transforms areas
Millevele for solidarity
Elasis entered its own boat in the 9 annual Telethon Trophy, organized
th
by the Naples section of the Italian Naval League. The entire proceeds
of the regatta were donated to scientific research on genetic diseases.
Culturali”) in Turin, and since 1987 it has not failed to provide its
restoration of the historic gate of the Royal Palace, designed in 1834
by architect Pelagio Palagi for King Carlo Alberto, the two fountains
“Po” and “Dora” in Piazza CLN, and the central section of the 19th
century façade of Palazzo Carignano on Piazza Carlo Alberto, designed
by the architects Ferri and Bollati (1864-1871) was completed.
Left, the Elasis crew that competed
for the Telethon Trophy.
Right, detail of the Royal Palace
gate after restoration.
New Holland on behalf of biodiversity
New Holland participated in “Cheese,” the big international show
For 13 years, CNH has supported BCG (Birchip Cropping Group and
the Slow Food Foundation for Biodiversity. New Holland wants
operated by farmers, engages in applied research and communication
dedicated to the milk and cheese sector, as honorary member of
to cooperate with Slow Food to protect and promote the small
communities of farmers and breeders who work the land under
difficult conditions in marginal areas of the earth where drought or
severe weather conditions make it nearly impossible to produce
even small quantities of food economically. The New Holland brand
offers its experience and knowledge at the service of a new concept
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For sustainable agriculture
Wimmera Farming Systems) in Australia. This non-profit association,
on the largest harvests in the region. CNH donated two tractors in
support of this organization. It aims to analyze the factors that make
it possible to obtain sustainable and profitable harvesting systems for
development of improved technologies and farming practices that
are more suited to the principal types of soil found in Wimmera and
Vallee. The test results were collected in a manual distributed free to
6,000 farms in four states. BCG also organizes encounters between
sustained only by updrafts, with the unique characteristics that
solutions to common problems in agriculture.
provided technical and logistic support for the project, lending
farmers, industry, and government representatives to collaborate on
Human Power at the Fiat Cafè
This is a unique location for a solidarity mission.
The Fiat Cafè, located inside the garden of the Milan Triennale,
envisage use of wing quills, as in a condor’s wing. Fiat Auto
the Orbassano wind and weather tunnels for testing the harness
and transport vehicles.
Big orchestras at the Lingotto Auditorium
hosted an evening of music dedicated to informing and raising the
The Group sponsors the seasons of the Lingotto Music Association.
deejays worked at the console, offering their services free of charge
Orchestra and the Vienna Philharmonic were staged in the
awareness of young people about cystic fibrosis. The best Italian
in material support for research. The entire proceeds for the evening
were donated to the Italian Cystic Fibrosis League.
Flying like the condors
For years, Fiat supported Angelo D’Arrigo, the world-famous hang glider
pilot who died in a tragic accident on March 26, 2006. He is affec-
tionately remembered as a man and champion of extraordinary feats.
He gave up competition to dedicate himself to scientific research
Since 1987, when concerts by the RAI National Symphony
courtyards of the former factory, Fiat has never ceased supporting
musical activity at the Lingotto. A key role was reserved for the
construction of the new “Giovanni Agnelli” Auditorium in the project
to transform the factory, commissioned from Renzo Piano. In 2005,
it not only contributed to the rich calendar of concerts by Lingotto
Musica, but also supported the education of young Italian musical
talents of the De Sono Association.
Brazilian culture festival
on a vital subject: studying the flying techniques of the biggest birds
In Brazil, Fiat offered its support to “Minas Cult”, the first culture festival
to acquire new knowledge about them for the benefit of science.
Performances, fashion shows, exhibitions, culture encounters, round
of prey, following their migrations across five continents, in order
In one of his last undertakings, D’Arrigo flew over the peak of the
Aconcagua (6,962 meters) above the Cordillera in the Andes on
December 31, 2005, imitating the flight of the condor and setting
a new altitude record for powerless flight. The hang glider was
designed on the basis of aerodynamic research conducted by
the engineers of Elasis. It is an innovative model without motor,
to be held at Belo Horizonte, open to everyone and with free admission.
tables, and many other surprises animated the festival, when the
special edition of the Fiat Stilo Michael Schumacher was presented
to the public. The car was also used for artistic display and exhibited
in the central Freedom Square. The youths participating in the
“Árvore da Vida” social project promoted by Fiat for the community
of Jardim Terezópolis, in Betim, were also involved in the festival.
149
In memoriam: architect Lina Bo Bardi
Fiat was the principal sponsor of the exhibition dedicated to Lina Bo
Bardi, the Italian architect who designed the São Paulo Art Museum.
The exhibition, curated by Luciano Semerani, Antonella Gallo, and
Giovanni Marras of the Venice University of Architecture, proposed a
section of the principal works illustrating the extraordinary creativity of
this artist in every field. She created not only architectural and city
planning designs but also stage sets and costumes, working notes,
graphic works, and designs for furniture and jewelry.
Fiat Youth Center in the heart of South Africa
The idea was conceived in mid-2003. Fiat wanted to participate in
the creation of something that might contribute to the future of
young people in South Africa. First the site was chosen: Soweto,
south of Johannesburg, a symbol of apartheid that left a legacy of
profound economic and social inequality. Then, together with the
local authorities, an available area was found and made available for
foot racetrack will be built, the only one in a township that has a
population of 4.5 million black people, as well as basketball, volleyball,
and netball courts. It is expected that the center will be opened in
June 2006, when the first “intergames” competition will be held
amongst Soweto schools.
Italian opera in Argentina
Fiat Auto Argentina was the main sponsor of the 2005 opera
season at the prestigious Teatro Colón in Buones Aires, one of the
most important opera houses in the world. Fiat sponsored the
four evenings when four different operas by Italian composers were
staged: “I Lombardi alla Prima Crociata” by Giuseppe Verdi, “Lucia
di Lammermoor” by Gaetano Donizetti, “Il Barbiere di Siviglia” by
Gioachino Rossini, and “Turandot” by Giacomo Puccini.
Commitment to sports in Poland
Fiat Auto Poland focused its support for initiatives organized in
the cities where it has offices or production plants, in order to
strengthen its relationship with the local communities where it
operates, enhancing the image of a company with local roots,
maintaining strong collaborative ties with cultural institutions, and
offering new opportunities to local society and its employees.
In 2005, it was not only official sponsor of the 62nd edition of the
Tour de Pologne and the BKS Stal volleyball team, but also supported
the 3rd annual Tyskie Kryterium Fiata bicycle race, held in the city of
Tychy, and sponsored the Tychy Hockey GKS team and the 13th Fiat
construction of a soccer field. The field, which is equipped with an
automatic sprinkler system, was fully operational after just six months.
In 2005, Fiat decided to expand this project and build a genuine
sport center: the Fiat Youth Center.To speed up construction and
gain greater visibility for the project, Italo-South African businesses
and important personalities from both countries were involved.
On November 18, the agreement to proceed with the second
phase of work was signed in the presence of municipal authorities,
the Italian ambassador to South Africa, and the athlete Marcello
Fiasconaro, the world champion 800 meter racer in 1973. Thus a
150
Footrace in Bielsko-Biala.
It also provided support for the annual Polish Composers Festival at
Bielsko-Biala, the Painting Biennial organized by the Bielsko-Biala
Exhibition Center, and concerts organized by the School of Music.
SOCIALLY SUSTAINABLE BUSINESS INITIATIVES
In 2005, Fiat invested 1.6 million euros in business initiatives with
high social value.
This includes those investments connected with core activities – the
sale of goods and services – that can satisfy important expectations
and needs of the collectivity.
Fiat Autonomy: ten years of commitment
Freedom of movement is a fundamental civil right. On the basis
of this conviction, the Autonomy Program was born at Fiat Auto,
celebrating its tenth anniversary in 2005. It represents a constant
commitment that Fiat has carried forward in the belief that guaranteeing
the right to mobility is one of the social responsibilities of a car maker.
Since 1995, the Company has endeavored to realize individual and
collective transport services and vehicles for people with impaired
mobility and to facilitate the use of automobiles by the disabled.
Thanks to the support of certain associations for the disabled and
Driving tests can be performed at Fiat Mobility Centers thanks
to sophisticated simulators that also make it possible to identify
the most appropriate mechanisms for specific pathologies.
Over 1,000 persons use these facilities in Europe every year.
The Autonomy program envisages the possibility of equipping
any model of car or commercial vehicle made by Fiat Auto
with auxiliary mechanisms for driving and transporting persons
with various types of disabilities.
A package of commercial discounts for purchase of vehicles is also
envisaged, complemented by the tax breaks offered by the Italian
government. In order to guarantee mobility, suitable vehicles
certainly are not enough. There is also the problem of resolving
the complex problem of intermodal transport and the elimination
of numerous barriers that prevent the use of different vehicles.
What industry can do is offer the technical conditions for effective
transition from the use of individual vehicles to an integrated system
of transport. It also offers its full collaboration to study, understand
Left, driving test on a simulator at
the Fiat Autonomy Mobility Center.
The new Fiat Croma (photo on
the right) and the Grande Punto
with an accelerator ring on the
steering wheel are two of the
latest models created for drivers
with reduced motor abilities.
sector operators, a genuine platform has been created at Fiat Auto:
and, above all, “get things done” with all those who, either because
of products and services for disabled persons.
attention of a vast, young public on this issue, the Fiat Group set
an organizational unit responsible for the development and marketing
The most characteristic part of the Autonomy program is represented
by the Mobility Centers. There are now 14 in Italy, 12 elsewhere in
Europe, and three in Brazil. Others will be opening soon.
In 2005, the new mobility center opened at the Cuneo Public Health
Clinic (ASL). It represents the first example of a structure directly
managed by the local medical commission in charge of issuing special
licenses.
it is their duty or choice, deal with these issues. To focus the
up a stand measuring more than 200 square meters at the Bologna
Motor Show that was dedicated to the Autonomy Program. After
participating for four years at the Paralympic Day, with competition
by disabled and normal athletes, Fiat has fully seized the challenge
posed by the Paralympics and was the Official Partner of the IX
Paralympic Games held at Turin in 2006. All the transport services
offered during the event were provided by cars, buses, and minibuses
151
supplied by Fiat Auto and Iveco and equipped with special
equipment for disabled persons and lifts for wheelchairs.
Special tractors for disabled persons from New Holland
As part of the A.MA.DI (Automation of Agricultural Equipment for
Disabled People) Project, financed and promoted by the Ministry of
Agricultural and Forestry Affairs, New Holland is developing a special
line of agricultural equipment that can guarantee full operability
even for disabled or elderly users, with maximum ease of use.
Changes in the driving controls improve habitability and facilitate
maneuvers. All pedal controls have been modified so that they can
be manually operated with power assist. The special line of New
Italian Sport Medicine Federation supplied a first aid kit for traumas.
A mini-ambulance offers numerous advantages, in economic,
functional, and organizational terms.
First of all, since it is a normal touring car, it could also allow those
entities that cannot afford a normal ambulance to equip a regular
service vehicle for this first aid function.
Furthermore, it can move more easily through city traffic, avoiding
the risk of being blocked by traffic jams. Finally, it could satisfy the
need for an emergency vehicle at many sporting events, which
organizers often renounce because of the high cost of reserving
a traditional ambulance.
Holland tractors is also equipped with an electric lifting system to
facilitate boarding. The tractors have a technologically advanced and
thoroughly tested electronic control system that assures maximum
precision and ease of use. The front axle with shock absorbers
guarantees enhanced safety during road travel, improving stability,
traction, comfort, and control of the vehicle. Thanks to the automatic
transmission, even large, powerful tractors can be driven as easily as
a car, both on the road and across fields.
An Idea transformed into a mini-ambulance
A Fiat Idea is transformed in minutes into a mini-ambulance for
transporting accident victims requiring emergency treatment to the
hospital as quickly as possible. This project, conceived by Professor
Antonio Dal Monte, a sports medicine specialist, was developed
at the laboratories of Elasis, the Fiat Group research center in
Pomigliano d'Arco, which realized the first prototype.
The adopted solution envisages folding back the two right seats as
necessary and mounting a folding stretcher on them with a system
of rails. When not in use, the stretcher is stored in the trunk. The
interior space of the Fiat Idea car is ideally suited to this sort of
adaptation. Thanks to the collaboration of different structures, the
prototype is fitted with all the equipment necessary for transport
and emergencies.
The Crespi-Orsa Group studied innovative materials for the interiors.
Cardioline furnished the defibrillator and a heart monitor, and the
152
The prototype mini-ambulance
developed at the Elasis laboratories
and its emergency equipment.
The alcohol that revolutionized Brazil
Cut-rate newspapers in schools
Magneti Marelli has invested enormous sums in research and
In order to encourage the reading of newspapers in high schools,
by Fiat Automoveis and other car makers in that country.
at discounted prices in different schools.
development of the Flex technology in Brazil, which is now used
A Flex car enables its owner to choose the type of fuel to use
whenever he goes to the service station: gasoline (Brazilian gasoline),
alcohol derived from sugar cane, or a mix of the two, in any
proportion. This innovative system has had a major impact in
economic, environmental, and social terms.
La Stampa has made several agreements for sale of the newspaper
Almost three million copies were distributed in Italian schools thanks
to the agreements made with the Province of Turin, the Mandragola
company, the Giovani Editori observatory, and La Sicilia Multimedia.
A Palio to promote sport
The use of alcohol as a fuel in Flex vehicles contributes significantly
A special edition of the Palio Weekend was launched in China
in carbon dioxide emissions and its absorption by plantations during
October. For every car sold, Nanjing Fiat has promised to donate
to the statistics furnished by UNICA (Uniao da Agroindustria
sport activities in the country.
to reduction of the greenhouse effect, thanks both to the reduction
the process of photosynthesis in sugar cane. Furthermore, according
Canavieira de São Paulo), the production and distribution of Flex
to celebrate the 10th National Athletic Games, which are held in
100 yuan (about 10 euros) to the public fund for promotion of
vehicles has caused a major increase in the use and production of
renewable energy sources, a significant increase in the production of
sugar cane and hydrated alcohol; and an increase in the employment
rates of the three wards of São Paulo, which lead the rankings of
industrial use. This prospect has had the effect that Brazil is now
the world’s biggest producer, consumer, and exporter of ethanol,
contributing to national energy self-sufficiency.
Research by Magneti Marelli continued with development of the
Tetrafuel technology, which operates using four types of fuel and
with just one electronic panel, allowing the vehicle to function
with Brazilian gasoline, alcohol, methane gas, or pure gasoline.
153
INSTITUTIONAL RELATIONS
Through its own representatives, the Fiat Group contributes to the
of living of the communities where it is located.
to the activities and issues of its sector.
important role in the development of the economies and standard
As a leading Italian industrial enterprise, it has numerous relationships
with Italian institutions, which are carried out in a spirit based on proper,
transparent conduct, in accordance with the principles set forth in
the Fiat Group Code of Conduct, which governs all its activities.
These relationships are realized through the creation and maintenance
of a network of relationships, both with the central government
(ministries) and the local authorities that are most representative
of national society, involving all the numerous and diversified aspects
of Group activity: from information on the economic performance
of Group companies to those of the markets on which it operates;
from the issues connected with general economic development to
the problems connected with the labor market (flexibility, training,
pension systems); from the specific needs of productive and commercial
activity (technical, commercial, and tax regulations) to the complex
interaction between the quality of life in urban centers ad the world
of transport (sustainable mobility, the environment). The numerous
contacts with Italian governmental authorities at various levels are
of particular importance (from ministries to municipal, province, and
regional administrations) for promotion and management of initiatives
and projects on specific environmental and social topics, with both
national and international impact (promotion for the development
of methane as vehicle fuel through the establishment of Program
Agreements with public agencies and associations (for example,
replacement of the obsolete taxi fleet with methane powered
vehicles) and the implementation of environmental projects with
public agencies, associations, and local authorities (for example, the
network for collection and recycling of vehicles at the end of their
life cycle). Thus, it is clear that such a complex activity of contribution
and support for Italian and European Union public agencies and
institutions, characterized by such a broad spectrum of relations
and content, entails a major effort to give them organic character
activity of leading national and international associations of interest
At the international level, Fiat is a founding member of ACEA,
Association des Constructeurs Europeens d'Automobiles, based in
Brussels, which is comprised by the 13 European makers of cars
and industrial vehicles. The mission of the Association is to monitor,
study, and analyze environmental, economic, and technical issues of
common interest, support the European authorities in managing
these problems, and informing the public on the positions of car
makers in regard to these issues.
In this context, Fiat is also a member of EUCAR, European Council
for Automotive R&D, created by car makers to represent the interests
of the automotive industry in the field of research, in areas of mutual
interest: security, environment, energy, mobility, and transport.
Among the following associations that Fiat belongs to, the following
can be mentioned here:
ECG, European Car-transport Group of Interest, which groups
together the 54 leading European vehicle logistics companies;
EIRMA, European Industrial Research Management Association,
which aims at improving innovation mainly through market-centred
research and development activities;
ENGVA, European Natural Gas Vehicle Association, whose
mission is to develop a market for NGVs throughout Europe;
ERT, European Roundtable of Industrialists, which aims at
promoting the competitiveness and growth of Europe’s economy;
ERTICO, European Road Transport Telematics Implementation
Coordination Organisation, a group dedicated to the development
of intelligent transport services and systems that will contribute to
a more sustainable mobility;
EUROMOT, the European Association of Internal Combustion
Engine Manufacturers, an organisation serving the interests of
and coherence. This represents a major challenge, including in terms
the internal combustion engine manufacturers supplying the
by pursuing the path it has followed thus far with maximum
SAE International, Society of Automotive Engineers, the premier
of external communication, which the Fiat Group plans to confront
transparency and fairness in its relations with those entities.
154
RELATIONS WITH ASSOCIATIONS
Given its great size and extensive activities, the Fiat Group plays an
EU market:
company dedicated to advancing mobility engineering worldwide.
At the national level, Fiat belongs to ANFIA, Associazione Nazionale
Fiat also contributes indirectly, through local industrial and
Industries), whose members are Italian makers of automobiles,
Confindustria, which is the leading organization representing Italian
fra le Industrie Automobilistiche (National Association of Automotive
commercial vehicles, buses, and car bodies and components. ANFIA
has the mission of supporting authorities and agencies at both the
national and international level in dealing with technical, economic,
and legal problems, and collecting and disseminating the statistical
information necessary for understanding of the automotive world.
representative associations of the sector, to the activity of
manufacturing and service enterprises. Finally, the Fiat Group actively
supports the activity of the Italian Aspen Institute, the Amici
dell'Accademia dei Lincei and the Associazione Guido Carli.
RELATIONS WITH THE MEDIA
The participation of Fiat in UNI, the Italian national standards
Fiat maintains extensive links with the major national and
Standardization, is of critical importance. These Italian authorities
areas surrounding the Group’s manufacturing sites. In communicating
authority, and CUNA, the Technical Committee for Automotive
define and unify standards in the automotive field, in collaboration
with analogous international entities, which are of fundamental
importance in the field of highway safety and respect of the
environment. Other associations include the following:
AICQ, the Italian Association for Quality;
AILOG, the Italian Logistics and Supply Chain Management
Association;
international media, as well as with local media, particularly in the
information, the Group assigns the utmost importance to:
Complying with the Code of Conduct,
Respecting the rules of journalism,
Ensuring that the information provided is clear and timely,
Equal treatment for all channels of information,
Willingness to provide regular information, and
Preparing quality informational material.
AIPnD, the Italian Association for Non-Destructive Testing and
The press office deals chiefly with economic, financial, labor,
AIRI, the Italian Association for Industrial Research;
cultural matters and general topics affecting the Group and requiring
Monitoring Diagnostics;
ASSONIME, the Association for Italy’s Limited Liability Company;
ATA, the Italian Automotive Engineering Association;
ecological and environmental issues, scientific research and innovation,
media coverage. In addition, the main operating companies (Fiat Auto,
Ferrari, Maserati, CNH, Iveco, Magneti Marelli) have their own internal
CEI, the Italian Electrotechnical Committee;
press offices that handle media contacts in Italy and elsewhere for
SISM, the Italian Society for Microscopical Sciences;
In 2005, the Fiat press office issued 80 press releases, in addition
CSAO, the Organisational Safety Centre;
TTS the National Association for Telematics for Transport and Safety;
UPA, Associated Advertising Union.
CONTACTS FOR JOURNALISTS:
Fiat S.p.A.
Communications
Via Nizza, 250 - 10126 Torino
tel. +39 011 00.63088 - fax +39 011 00.62459
[email protected]
information regarding their products and marketing activities.
to other press information on products, organized three institutional
press conferences, and 17 press conferences for the launch of new
models or events connected with the product. Furthermore, when
the quarterly results were presented, journalists were able to follow,
online, conference calls with analysts.
The press office also manages daily activities in response to journalist
requests for interviews, detailed information, informational material,
photographs, and films. The Group website, as well as the Sector
websites, contains a dedicated area for the media (“press room”)
that is constantly updated and, together with press releases, contains
various information and material prepared specifically for journalists.
155
05
Appendix
158 Methodology
160 Report of the Auditing Firm
158 What is a Sustainability/Triple Bottom Line Report
161 Main performance indicators
159 Scope of the Report
167 Assessment questionnaire
158 Methodological note
164 Glossary
Appendix
157
05 Appendix
Methodology
What is a Sustainability/Triple Bottom Line Report
Methodological note
A Sustainability Report is the voluntary report on the company
This Report was drawn up according to international standards –
the identification of monitored indicators, it informs stakeholders, i.e.:
and national standards – Gruppo di Studio per il Bilancio Sociale -
commitment to implementing Social Responsibility policies.Through
stockholders
lenders
employees
suppliers
customers
sales network
institutions
environmental and consumers’ associations
local communities
future generations
about initiatives and future programs, involving them in sustainable
development processes.
The Fiat Group, as well as other large Italian and international
companies, decided to adopt the Triple Bottom Line methodology,
an integrated approach to assess, in a definite period of time, the
corporate social responsibility, i.e. the economic, environmental and
social performance of the company (literally, “bottom line” indicates
the last line of the financial statements, where the profit is displayed).
Global Reporting Initiative and London Benchmarking Group –
GBS (Italian study group for social reporting), Corporate Social
Responsibility Social Commitment of the Italian Ministry of Labour
and Social Policies – also taking into account requests for information
coming from rating agencies on governance and sustainability issues.
The Global Reporting Initiative (GRI) is an independent international
organization that develops and disseminates guidelines for reporting
on the social, environmental, and economic dimensions of companies.
The London Benchmarking Group (LBG) is an organisation based in
London that developed a methodology that allows the identification
and classification of all initiatives undertaken by companies in support
of the local communities where they operate.
GBS is an Italian non profit organisation whose mission is to “develop
and promote scientific research on Social Reports and on issues
regarding the processes for responsible management of enterprises
in order to enhance corporate social responsibility and its application
in Italy and abroad.”
In addition, the Fiat Group conformed to the requirements proposed
by the Italian Ministry of Labour and Social Policies in the framework
of the Corporate Social Responsibility project. In particular,
the identified indicators take into account, consistently with the
characteristics of the Company, those proposed by the Ministry.
During 2005, the Group benefited from the experience of the first
sustainability report and the basis was laid for a continued
improvement of future reporting activities.This was made possible
by a greater involvement of the management on the Triple Bottom
Line Report.
158
Appendix Methodology
Scope of the Report
Data and information contained in this Report refer, except
where differently stated, to all Companies and Sectors belonging
to the Fiat Group: Fiat Auto, Ferrari, Maserati, Fiat Powertrain
Technologies, CNH, Iveco, Magneti Marelli,Teksid, Comau, Business
international practice in the automotive sector. As a result of this
choice, it was no longer possible to keep certain information that
was made available in the previous Sustainability Report, such as
data on value added.
Solutions, Itedi, Holding companies and Other companies.
All assets and liabilities of consolidated foreign companies are
With respect to the last year’s sustainability report, the following
date. Income and expenses are translated at the average exchange
is worth mentioning:
Fiat Powertrain Technologies is the new Sector which groups all
passenger car engine and transmission activities. Fiat regained
control over these activities in May 2005 following termination of
translated using the exchange rates in effect at the balance sheet
rate for the period.
A brief overview of this Sustainability Report was examined by the
Board of Directors of Fiat S.p.A. on March 24, 2006.
the Master Agreement with General Motors. Starting in 2006, the
Sector will also include the engine and transmission operations of
Iveco, Centro Ricerche Fiat and Elasis.
in April 2005 the ownership of Maserati was transferred from
Ferrari S.p.A. to Fiat Partecipazioni S.p.A. (a holding company
directly controlled by Fiat S.p.A.). As of April 1, 2005, a new entity
was established, to which the business operations that produce
and sell cars under the Maserati brand have been conveyed.
In addition to the above:
Effective January 1, 2005, the Fiat Group adopted International
Financial Reporting Standards (IFRS), and therefore the 2005
Consolidated Financial Statements were prepared in accordance
with IFRS issued by the International Accounting Standards Board
CONTACTS
This Report is available on the website www.fiatgroup.com
or upon request:
Fiat S.p.A. Communications
Via Nizza 250 - 10126 Turin - Italy
tel. +39 011 00.63088
[email protected]
(“IASB”) endorsed by the European Union. The comparable
data for 2004 were restated in accordance with the new
accounting standards. In this report, 2004 figures which are
USEFUL LINKS
are indicated in specific notes.
Fiat Autonomy www.fiatautonomy.com
different from the ones published in the previous report
The Fiat Group presents an income statement using a classification
based on the function of expenses within the Group (also known
as the “cost of sales” method), rather than based on their nature,
as this is believed to provide information that is more relevant.
The format selected is that used for managing the business and
for management reporting purposes and is coherent with
Fiat Group www.fiatgroup.com
Centro Ricerche Fiat www.crf.it
Elasis www.elasis.it
GRI www.globalreporting.org
CSR-SC www.welfare.gov.it
London Benchmarking Group www.lbg-online.net
Appendix Methodology
159
05 Appendix
Report of the Auditing Firm
160
Appendix Report of the Auditing Firm
Main performance indicators
Area
Code of Conduct
Indicator
Implementation of the Code of Conduct
Whistleblowings
Violations of the Code of Conduct
Ethical Auditing
Board of Directors
Independent directors
Minority stockholders
GRI
HR1; HR8
HR9
HR10
HR1
LA11
LA13
Committees of the Board of Directors
Frequency of BoD meetings and
Operating performance
Stockholders/Partners and
financial community
Stockholder protection
Lenders
Committees meetings
Financial data
Customers
7.6; 6.3
6.3.1
2.5
Page
22-24
23
23
24
12-13
2.5.1
33
6.3.1; 6.3.2
32
2.5.2
2.5.3
2
Stock Performance
2.2; 2.3
32
33
28-29
30
Stockholder base
2.1
31
Relations with Stockholders
2.7
34-35
5.3
36-37
Volume and uses of debt
EC6
Low-rate loans
EC9
Rating
Human resources
EC7; EC9
CSR-SC
Labour cost
Incentive systems
Portfolio
EC5
EC5
EC1; EC2
Customers relations
Customer loyalty and satisfaction
Communication
Litigation with customers
2.4
37
1.6
39
6.4
1.6.3
3
39
3.1
40-46
3.3.2; 3.3.1; 3.1.2
48-54
3.3
PR9; PR10
37-38
47-48
55
56-57
Appendix Main performance indicators
161
05 Appendix
Area
Suppliers
Indicator
GRI
CSR-SC
Page
Certification of suppliers
EN33
4.1.2
59
Management policies and instruments
Communication with suppliers
Environment
Health and safety
Human resources
Environmental management system
4
4.1.2
4.1.3
8
58-61
58-60
60
61
8.2
66-73
8.1.4; 8.1.5; 8.1.6
95-115
Research and innovation
EN35
Occupational accidents and diseases
LA7; LA5
1.11.1; 1.11.2
122-123
Equal opportunities
LA10 - LA11
1.3
121-122
Energy, water, waste, emissions
Age
EN10; EN2; EN8; EN30
LA1
LA1
8.2
1
1.1
1.1.2
79-84
118-120
119
Seniority in grade
LA1
1.1.3
119
Turnover
LA2
1.2
120-121
Educational qualification
Inter-group transfers
Training
Recruitment and selection
Internal communication
LA1
LA1
LA9
LA17
1.1.7
120
1.2
120-121
1.2.1
125-127
1.4
1.10
124-125
131-134
Industrial relations
LA3
1.9
128-131
and the right to collective bargaining
LA3
1.9.1
128-131
Employees benefits
EC12
1.12
135
Respect for freedom of association
Union membership
EC3
Staff composition
162
EC3
LA3; LA4; LA13
1.9.2
128
Area
Community
Indicator
GRI
Charitable gifts
EC10
SO1
CSR-SC
7
Institutional relations
Relations with associations
Relations with the media
137-140
141-145
Page
146-150
SO1
7.3
PR9; PR10
7.4
SO1
7.3
151-153
154
154-155
155
163
05 Appendix
Glossary
Active Safety
All the mechanical characteristics that contribute
to the dynamic performance of the vehicle on the road: road
holding, prompt and effective brake application, drivability and
ease of handling; responsive and performing power units.
ANFIA
National association of the Automobile Industry;
established in Turin on March 20, 1912 (one of the first Italian
trade associations) to help the newborn Italian motor industry
to liaise more effectively with the public administration on all
matters arising from the spread of the motor vehicle.
Audit of the Environmental Management System
It is a process
of assessment and monitoring, on a regular basis, of the
environmental management system. It is one of the instruments
used for environmental certification.
Car Sharing
Shared utilization of a vehicle fleet by several people.
This service supplements collective transport and is geared
to the improvement of mobility and the environment.
COD (Chemical Oxygen Demand)
It is the measurement of the
oxygen demand, i.e. the amount of oxygen required to oxidize
organic and inorganic substances present in a water sample.
This parameter is used primarily to estimate the organic content
of water, and thus the potential level of pollution due to
oxidisable substances.
Code of Conduct
It defines the commitments and the conduct
principles adopted by a Company in its relations with businesses,
employees, environment and external communities. For the Fiat
Group, it is an integral and substantial part of the work contract.
Combustion
Reaction of organic substances with oxygen present
in the atmosphere: it produces carbon oxides, water vapour
and thermal energy.
Compliance Officer
Within each Sector of the Fiat Group there
are specific functions responsible for the monitoring of the
Companies’ voluntary inclusion
of social and environmental commitments in their commercial
initiatives and relations with stakeholders (Green Paper of the
European Commission).
COSO
Committee of Sponsoring Organizations of the Treadway
Commission; a voluntary private sector organization, established
by professional accounting and auditing associations, dedicated
to improving the quality of financial reporting through business
ethics, effective internal controls and corporate governance.
See: www.coso.org
CRM
The concept of customer relationship management is
connected to the concept of customer loyalty. CRM introduces
a new market approach that puts the customer, and not the
product, at the centre of the business.
CSR-SC
Project developed by the Ministry of Labour and Social
Policies based on the concept of CSR as set forth by the
European Commission.The project aims at promoting the
culture of social responsibility within the economic system and
increasing corporate awareness on sustainable development.
Defined Contribution Retirement Plans
working period (weekly, fortnightly, monthly). In this case, there is no
guarantee about the life annuity, which will be calculated at the
moment of retirement.The financial risk rests on the employee.
Defined Retirement Benefit Plans
percentage of the last salary or to an average salary calculated
over a certain number of working years. In this case, the Company’s
contribution varies over the years so as to ensure the existence
of a capital (liability) sufficient to pay the promised annuities.
The financial risk rests on the Fund.
procedure.
Enterprise Risk Management (ERM)
Set of rules for the management of an
organization aimed at the creation of social and economic value
for all entities involved.
Appendix Glossary
Plans where the Retirement
Fund guarantees a life annuity, which usually corresponds to a
Energy Recovery
Plans where the Retirement
Fund guarantees the payment of a determined contribution in each
internal control system, the improvement of the risk management
system and the management of the Group’s whistleblowings
164
Corporate Social Responsibility
Use of the thermal energy released by waste
combustion processes.
A process, effected by the
management, for the self-evaluation of corporate risks. It enables
the company to manage risks while performing its daily activities
and pursue improvement actions.
Environmental Certification of Production Processes
Certification
procedure of a production site, performed by an accredited
Organization, on the basis of the main international standards:
certification attests to the good environmental management of
the site.
Environmental Indicators
Reference parameters that allow
measurement of the impact of activities or products on the
environment.
Environmental Management Syste (EMS)
The creation of a specific
Company function that deals with environmentally related
problems, risks and opportunities.
Environmental Policy
Set of principles and objectives relating to
the environmental responsibility adopted by an organization
while performing business.
Fuel Cell
A fuel cell is an electro-chemical device that generates
electric energy. Hydrogen and oxygen are recombined in a cell
(or “stack”) in the presence of catalysts and a polymeric
electrolyte (P.E.M. - Proton Exchange Membrane) and produce
electric energy with an extremely high degree of efficiency, with
water vapor being the only by-product of this reaction. A vehicle
can use the energy generated in this manner for traction and
auxiliary functions.
GARP
Growth At a Reasonable Price; this investment style envisages
Internal Control System
A set of rules of conduct of a company.
These rules contribute to achieving the company’s set objectives.
ISO 9001
International Standard ensuring quality in design,
development, manufacturing, installation and assistance, issued
by the International Organization for Standardization (ISO).
ISO 14001
International Standard ensuring quality in environmental
management issued by the International Organization for
Standardization (ISO).
Legislative Decree 231/2001
Legislative Decree of June 8, 2001
that introduced a regime of administrative (but de facto criminal)
liability of Companies for crimes against public agencies (bribery,
extortion, etc.) and white collar crimes (false accounting, etc.)
committed by company directors or senior managers or other
employees in the interest or for the benefit of the aforesaid
Companies.
Life Cycle Analysis (LCA)
It is the analysis of a product (or
service) life cycle from the standpoints of energy and the
environment. Life cycle covers the entire history of a product,
from raw material extraction to semi-finished and finished
product processing, use, reuse (if applicable) or
recycling/scrapping.
London Benchmarking Group (LBG)
Institution whose
methodology identifies and classifies all initiatives undertaken
investment in shares that offer an interesting combination of
by Companies in support of the local communities where
“underestimated” stock on the market and select those securities
corporate community expenses and investments: charitable gifts,
growth potentials and low value.The main objective is to identify
whose potentials are not yet completely reflected in their prices.
Global Reporting Initiative (GRI)
Independent international
organization that develops and disseminates guidelines for
reporting on the economic, environmental, and social dimensions
of companies.
Impact on the Environment
Favorable or adverse, total or partial
changes to the environment caused by activities carried out by
people.
Internal Audit
The corporate function that monitors the internal
control system. Within the Fiat Group, this function is performed
by a consortium company.
they operate.The codified model identifies four categories of
community investments, commercial initiatives with social impact,
socially sustainable business initiatives.
Mystery Shopping
A method through which individuals (mistery
shoppers) acting as potential/actual customers report on and
thereby enable monitoring of the level of service offered by a
seller, i.e. a dealer, to customers and the respect of the standards
that must be followed by the seller.
Particulate Trap
A trap (or filter) downstream of a vehicle
exhaust system to withhold particulates.This technology is a
major step forward towards full eco-compatibility of diesel
engines.
Appendix Glossary
165
05 Appendix
Passive Safety
Structural and product features that contribute to
ensure full occupant protection in case of crash: stiff cockpits,
programmed warping body with high energy absorption
capacity, effective restraint systems (belts, airbags, headrest and
seat configuration); interior components designed to attenuate
the risk of injuries in a collision and fire-proof components.
Rating
Assessment of a debtor’s, company’s or public agency’s
ability to meet debt obligations.
Recycling
Processing of waste and scrap material through their
use in a new productive cycle.
Stakeholder
An individual, community or organization that
influences the operations of an organization or directly or
indirectly suffers the repercussions. In the broadest meaning
of the term, stakeholders can be internal (management and
employees) or external (suppliers, customers, investors, business
partners, local communities, the public agencies, future
generations, environmental interests, etc.).
Sustainable Development
Development that, by providing
economic, environmental and social services to all members
166
Appendix Glossary
of a community, improves quality of life, and meets the needs
of the present generation without jeopardizing those of future
generations.
TOE
Ton of oil equivalent: a conventional unit of energy,
corresponding to 10 million kcal, which is used to express
the calorific power of any energy source.
Triple Bottom Line
An integrated approach to assess, in a
definite period of time, the corporate social responsibility, i.e.
the economic, environmental and social performance of the
company (literally, “bottom line” indicates the last line of the
financial statements, where the profit is displayed).
UPA (Associated Advertising Union)
An association set up by
the main industrial, trade and service companies that invest
in advertising, for the protection of the interests of these
companies in the field of advertising.
Value Added
Wealth produced by a company during its financial
period, i.e. the difference between the gross production and
the consumption of goods and services.
Assessment questionnaire
We invite you to present us, by filling out this questionnaire, with
Stakeholders
your suggestions and remarks, which will contribute to the
To which of the following categories do you belong?
identification of critical areas and the improvement of the following
Stockholder
editions.
Financial institution
Quality of Information
How exhaustive is the information? (1 = very little; 5 = very much)
Commitments for the Future 1
Fiat Identity
2
3
4
5
3
4
5
1
2
3
Environmental Responsibility 1
2
3
1
1
2
2
3
4
4
4
5
5
5
Language
2
3
4
5
2
3
4
5
2
3
4
5
1
1
2
2
3
3
4
(1 = very negatively; 5 = very positively)
4
2
3
4
5
4
5
2
3
4
5
1
1
2
2
3
3
4
4
The questionnaire can be sent by mail to the following address:
10126 Turin – Italy
Public opinion
Other _______________________________________________
described and that should be dealt with in more detail in future
_______________________________________________________
_______________________________________________________
3
Via Nizza, 250
Public offices and institutions
editions?
2
Fiat S.p.A. - Communications
Environmental system
5
1
Public agency
In your opinion, are there subjects that were not exhaustively
How do you judge the actions undertaken and the objectives stated?
Non-profit association
5
Fiat Group Programs and Projects
Fiat Identity
Customer
Local community
1
Supplier
Trade unions
How clear is the communication? (1 = very little; 5 = very much)
Fiat Identity
Employee
5
5
_______________________________________________________
_______________________________________________________
_______________________________________________________
Remarks and suggestions
_______________________________________________________
_______________________________________________________
_______________________________________________________
or filled out online at the Company website
www.fiatgroup.com
Appendix Assessment Questionnaire
167
Graphic design
Robilant Associati – Milan, Italy
Editorial Coordination:
Micrograf – Turin, Italy
Printed by:
Arti Grafiche Giacone – Turin, Italy
Printed in Italy
May 2006
Printed on Fedrigoni Symbol Freelife recycled
and environmentally friendly paper

2005 Sustainability Report

Transcription

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