in the First Half of 2004 99th Fiscal Year - FIAT SpA

During the first half of 2004, Western European demand for
automobiles grew to approximately 7.8 million units, or 3.2%
more than in the same period last year. In Italy, shipments
increased to 1,292,200 units, a gain of 3.0% compared with the
first six months of 2003. The best improvements were recorded
in Spain (+14.6%) and Great Britain (+2.1%), but demand
contracted in Germany (-1.7%).
Demand patterns were particularly favorable outside Western
Europe, with shipments rising 13% in Poland and 9.7% in Brazil.
In China, the automobile market expanded by a healthy 32%
compared with the first half of 2003. Argentina performed
especially well, with demand rising by a remarkable 179.2%.
The Western European market for light commercial vehicles
expanded by 7.4%, with the best gains occurring in Spain
(+10.5%), Great Britain (+10%) and France (+8.0%). In Italy,
the demand pattern was consistent with the other major
European markets. Shipments rose to over 107,500 units, or
4.7% more than in the first six months of 2003. Strong gains
were also recorded in Poland (+26.6%), where sales were
boosted by growth in the segment of light commercial
vehicles based on automobile platforms, and Brazil (+16.6%).
In this environment, Fiat Auto sold 929,800 automobiles and
light commercial vehicles, up 7.2% from the first half of 2003.
A total of 641,000 units were sold in Western Europe, or 1.4%
more than in the first six months of 2003.
Compared with the first half of last year, unit sales were up
sharply in Poland (+30%) and in Brazil (+16.2%), where Fiat
was again the top seller of automobiles and light commercial
vehicles combined.
Fiat Auto’s market share improved to 7.6% for all of Western
Europe (+0.1 percentage points) and 28.4% for Italy, up 0.7
percentage points from June 30, 2003. Compared with the
first six months of 2003, the Sector’s market share increased
to 18.7% in Poland (+1.5 percentage points), but contracted
to 23.4% in Brazil (-1.4 percentage points).
Fiat Auto’s share of the Western European market for light
commercial vehicles declined from 11.6% in 2003 to 11% this
Automobile Market
23
Automobiles — Fiat Auto
1st half 1st half %
(in thousands of units) 2004 2003 change
France 1,063.7 1,065.1 (0.1)
Germany 1,617.9 1,646.1 (1.7)
Great Britain 1,379.9 1,351.6 2.1
Italy 1,292.2 1,254.0 3.0
Spain 788.1 687.9 14.6
Western Europe 7,794.1 7,550.1 3.2
Poland 193.8 171.5 13.0
Brazil 592.5 540.1 9.7
year as the net result of diverging trends in different markets
and a drop of 3 percentage points in Italy. The aggressive
sales policies pursued by the Sector’s more direct competitors
account for most of this decrease. On a more positive note,
Fiat Auto was able to report higher sales volumes, better sales
prices and a more favorable product mix.
Fiat presented two concept cars at the 2004 Geneva
International Motor Show: the Trepiùno, a car with a wealth
of technological innovations that provides a modern
reinterpretation of the vehicles that truly marked the start of
mass modernization, and the Cinqueterre, an all-wheel-drive
version of the Idea for off-road travel.
The Sector also presented several new models that are
scheduled for introduction in 2004: the new Fiat Multipla,
the Fiat Panda 4x4 and the Lancia Musa, which was unveiled
in Venice in June.
Also in June, the Panda became available with a 1.3-liter Multijet
diesel engine, while the automatic-transmission option is being
offered in a growing number of models.
During the first six months of 2004, the share of the Western
European market claimed by the Alfa Romeo brand on the
specific market segments in which it operates improved slightly.
As was the case a year ago, the best performance was recorded
in Spain.
The Alfa Romeo GT, which was launched at the beginning
of this year in all European markets, has been extremely well
received, with about 18,000 orders booked as of the end of
June.
At the Geneva Motor Show, Alfa Romeo unveiled its
Crosswagon, which will be available in September and marks
Alfa Romeo’s return to the four-wheel-drive segment.
In the first half of 2004, financing support provided to the sales
network totaled about 6,010 million euros, or 5.8% less than
Sales Performance – Automobiles and Light Commercial
Vehicles
1st half 1st half %
(in thousands of units) 2004 2003 change
France 35.9 38.8 (7.5)
Germany 58.6 59.9 (2.2)
Great Britain 47.5 45.6 4.2
Italy 378.3 378.0 0.1
Spain 39.9 35.5 12.4
Rest of Europe 80.8 74.4 8.6
Western Europe 641.0 632.2 1.4
Poland 42.9 33.0 30.0
Brazil 170.9 147.1 16.2
Rest of the world 75.0 54.8 36.9
Total units sold 929.8 867.1 7.2
Associated companies 55.2 33.5 64.8
Overall total 985.0 900.6 9.4