in the First Half of 2003 98th Fiscal Year - FIAT SpA

23 Commercial Vehicles — Iveco
The Sector focused its product innovation and development
programs primarily on:
❚ development of the F1C (3-liter) light engine;
❚ design of a new range of V-shaped diesel engines for electric
power generation and rail transport and industrial
applications;
❚ beginning the validation process for all of its engine families
equipped with injection/combustion systems that are
compliant with the Euro 4 standard;
❚ design of exhaust post-treatment systems for all of its engine
families, with the goal of making them compliant with the
Euro 4 standard.
During the first six months of 2003, Iveco Finance signed about
12,000 contracts to finance sales of new commercial vehicles.
The overall figure is approximately 30% lower than in the same
period last year, despite gains in Spain, Great Britain and
Germany.
Iveco Finance provided financing for 24% of all new vehicles
sold by Iveco (30% in the first half of 2002). Financing provided
to buyers of used vehicles (2,400 contracts signed during the
first half of 2003) was down 20% year over year.
The across-the-board contraction experienced by the Sector’s
financing operations was due in part to a more selective
approach taken in signing up new customers, with the goal
of minimizing risk.
At June 30, 2003, Iveco Finance had outstanding contracts
covering about 104,000 vehicles (about the same as a year
earlier) with a net value of about 2.6 billion euros.
The Sector’s leasing operations, which are handled by the
Transolver Services Group, increased their pool of leased
vehicles to about 4,330 units (3,680 units at June 30, 2002).
Iveco continued to expand its portfolio of maintenance and
repair services during the first half of 2003, signing up 3,100
new contracts (5,000 in the first six months of 2002). It had a
total of 43,958 contracts in force at June 30, 2003 (38,700 at
June 30, 2002).
Operating performance
Iveco’s net revenues totaled 4,175 million euros in the first six
months of 2003, compared with 4,508 million euros booked in
the same period last year. On a comparable consolidation basis,
i.e., excluding Fraikin, Naveco and Transolver Finance EFC
(Spain), revenues show little change from the first half of 2002.
Operating income for the first six months of 2003 amounted to
22 million euros, compared with 36 million euros in the first half
of 2002. A change in the scope of consolidation accounts for
most of this decline.