Operating Sectors The Fiat Group in 1999 - Fiat SpA

The Fiat Group in 1999 

Operating Sectors

Financial Highlights by Sector 

The Fiat Group 

Products and Services of the Group 

This Report is available on the Internet at 

www.fiatgroup.com 

Contents 

Operating Sectors 

Automobiles (Fiat Auto) 

Ferrari and Maserati 

Commercial Vehicles (Iveco) 

Agricultural and Construction Equipment (CNH Global) 

Metallurgical Products (Teksid) 

Components (Magneti Marelli) 

Production Systems (Comau) 

Aviation (FiatAvio) 

Rolling Stock and Railway Systems (Fiat Ferroviaria) 

Publishing and Communications (Itedi) 

Insurance (Toro Assicurazioni) 

Services 

Principal Fiat Group Companies 

1 

2 

4 

6 

12 

14 

20 

26 

30 

34 

38 

40 

42 

44 

46 

48

Consolidated Revenues 

in millions of euros 

39,092 

1995 

Net Invested Capital 


14,577 

1995 

237,426 237,865 

242,322 

220,549 221,319 

1995 

40,244 

1996 

15,168 

1996 

1996 

46,257 

1997 

14,122 

1997 

Number of Employees 

1997 

45,769 

1998 

13,700 

1998 

1998 

48,123 

1999 

18,798 

1999 (*) 

(*) Includes the controlling interest in the Case Group 

acquired at the end of 1999 and valued at cost. 

1999 

Financial Highlights of the Fiat Group 

in millions of euros 1999 1998 1997 1996 1995 

Operating income 788 746 1,791 932 1,717 

Income before taxes 1,024 1,442 2,160 1,965 1,758 

Income before minority interest 506 916 1,550 1,420 1,329 

Group net income 353 621 1,248 1,225 1,109 

Net financial position (Net borrowings) (4,031) 1,420 1,340 (1,142) (1,341) 

Stockholders’ equity 

including minority interest 14,767 15,120 15,462 14,026 13,236 

Group interest in stockholders’ equity 12,874 12,998 13,203 12,042 11,178 

Cash flow (income before minority interest 

plus depreciation and amortization) 2,860 3,226 4,184 3,867 3,501 

Capital expenditures 2,712 2,418 2,398 2,746 2,918 

Research and development 1,406 1,264 1,166 1,129 1,079 

Operating income from 

Industrial Activities/Net revenues 1.9% 2.2% 4.4% 2.9% 4.8% 

Operating income/Average 

net invested capital 4.8% 5.4% 12.2% 6.3% 12.3% 

Income before minority 

interest/Net revenues 1.1% 2.0% 3.4% 3.5% 3.4% 

Net income/Average stockholders’ 

equity (after minority interest) 2.7% 4.7% 9.9% 10.5% 10.3% 

Value creation (*) (480) (714) 144 (607) 26 

(*) Difference between operating income for the fiscal year (including investment income) and the cost of average net 

invested capital at an annual rate of 10% in 1999, and of 12% in the previous years. 

Statistical data by geographical region 

Research and 

development 

number Companies Employees Facilities Centers 

Italy 233 122,730 83 72 

Europe excluding Italy 454 53,654 79 34 

Mercosur 67 27,883 24 9 

North America 161 9,379 38 12 

Other regions 133 7,673 25 4 

Total 1,048 221,319 249 131 

Fiat S.p.A. adopted the euro as its reporting currency as of January 1, 1999, opting for 

an early use of this currency, as allowed under Legislative Decree No. 213/1998 “Provisions 

Governing the Introduction of the Euro in the Italian National System.” 

The Consolidated and Statutory Financial Statements at December 31, 1999 of Fiat 

S.p.A. are therefore denominated in euros. To make the respective data comparable, 

the amounts for the previous years have been restated in euros using the fixed exchange 

rate of 1 euro = 1,936.27 lire established on December 31, 1998.

Financial Highlights by Sector 

Operating 

income from 

Industrial Activities/ Income before 

Net revenues Operating income Net revenues minority interest 

1999 1998 1999 1998 1999 1998 1999 1998 

(in millions (in millions (in millions (in millions (in %) (in %) (in millions (in millions 

of euros) of euros) of euros) of euros) of euros) of euros) 

Automobiles (Fiat Auto) 24,101 24,859 (121) (108) (0.5) (0.4) (493) (258) 

Commercial Vehicles (Iveco) 7,387 6,649 311 261 4.2 3.9 180 192 

Agricultural and Construction Equipment (CNH Global) 5,246 5,127 371 452 7.1 8.8 216 507 

Metallurgical Products (Teksid) 1,682 1,165 76 42 4.5 3.6 26 4 

Components (Magneti Marelli) 4,062 3,793 108 56 2.7 1.5 107 21 

Production Systems (Comau/Pico) 1,693 843 43 (1) 2.5 (0.1) (8) (6) 

Aviation (FiatAvio) 1,361 1,361 109 60 8.0 4.4 61 79 

Rolling Stock and Railway Systems (Fiat Ferroviaria) 375 389 13 18 3.5 4.6 3 (1) 

Publishing and Communications (Itedi) 413 437 17 19 4.1 4.3 11 – 

Insurance (Toro Assicurazioni) 3,922 2,959 (103) (168) n.m. n.m. 92 64 

Miscellaneous and eliminations (2,119) (1,813) (36) 115 n.m. n.m. 311 314 

Total for the Group 48,123 45,769 788 746 1.9 2.2 506 916 

Number 

Cash flow Capital expenditures Net invested capital of employees 

1999 1998 1999 1998 1999 1998 1999 1998 

(in millions (in millions (in millions (in millions (in millions (in millions 

of euros) of euros) of euros) of euros) of euros) of euros) 

Automobiles (Fiat Auto) 855 1,146 1,464 1,373 5,021 5,863 82,553 93,514 

Commercial Vehicles (Iveco) 433 368 359 307 2,359 1,764 36,217 31,912 

Agricultural and Construction Equipment (CNH Global) 333 624 178 151 5,777 1,123 19,049 21,344 

Metallurgical Products (Teksid) 123 74 182 73 793 504 14,522 10,981 

Components (Magneti Marelli) 310 254 209 222 1,289 1,270 25,613 29,398 

Production Systems (Comau/Pico) 30 12 26 14 485 165 16,943 7,103 

Aviation (FiatAvio) 145 167 42 36 163 159 5,590 5,962 

Rolling Stock and Railway Systems (Fiat Ferroviaria) 18 15 11 12 29 94 2,109 2,294 

Publishing and Communications (Itedi) 19 11 8 9 25 21 934 1,473 

Insurance (Toro Assicurazioni) 120 89 97 25 311 327 2,907 2,869 

Miscellaneous and eliminations 474 466 136 196 2,546 2,410 14,882 13,699 

Total for the Group 2,860 3,226 2,712 2,418 18,798 13,700 221,319 220,549 

1

FIAT 

T H E 

G R O U P 

2 

Established in 1899, Fiat was one of the founders 

of the European automobile industry. Since its 

inception, the Company followed a two-prong 

growth strategy — penetration of foreign markets 

and focus on innovation — which characterized its 

subsequent development and translated into the 

manufacturing of high-tech quality products and 

the adoption of the most innovative industrial and 

organizational systems. 

Fiat is a lot more than just cars. The Company 

leveraged its expertise in an original and perhaps 

unique way among international groups, expanding 

its mission to include every area of mobility: from 

cars to aircraft, from trucks to trains, from farm 

tractors to marine engines and, in more recent 

years, even space launchers. Fiat’s industrial 

diversification continued at an increasingly rapid 

pace, with a growing presence in metallurgical 

products and components, followed later on by 

production systems, insurance and support 

services. 

85% Industrial 

Activities 

15% Services (*) 

(*) It includes the following service activities operated by the Industrial 

Sectors: financial, insurance and mobility services supplied by Fiat Auto, 

Iveco and CNH Global; Magneti Marelli’s quick-service centers and infomobility 

services; Comau’s plant maintenance operations, etc. 

Other Industrial 

Sectors (17%) 

Agricultural and 

Construction 

Equipment (10%) 

Metallurgical Products (3%) 

Components (7%) 

Production Systems (3%) 

Aviation (3%) 

Rolling Stock and Railway Systems (1%) 

Revenues by Sector 

Commercial Vehicles (14%) 

Ferrari and Maserati (2%) 

Automobiles (45%) 

Other companies (4%) 

Service Sectors (8%) 

Insurance (7%) 

Publishing and Communications (1%) 

Being a 

Group 

VALUES 

Customer satisfaction 

Enhancement of 

human resources 

Value 

Creation 

Fiat was the main force behind the development of a mass 

automobile market in Italy, driving the expansion of the national 

economy and contributing to the enhancement of its 

competitive position in Europe and the rest of the world. This 

was particularly true in Southern Italy, where Fiat stimulated 

economic growth with the construction of one of its biggest 

manufacturing hubs. 

The Group also provided a significant contribution to the 

economic expansion of emerging countries, where the 

Company used the expertise it developed with its early 

automotive ventures to implement its overall growth strategy. 

Fiat entered the second century of its life against the backdrop 

of a profound transformation that is reshaping industry and 

STRATEGIES 

Focusing on our 

core businesses 

Globalizing our activities 

Lengthening the 

value chain 

Reducing complexity 

Focusing and 

motivating 

management 

Achieving 

competitive 

excellence 

Innovating our products 

1 – Paolo Annibaldi, Corporate Senior Vice President External Relations and Communication Fiat S.p.A. 

2 – Giancarlo Boschetti, Chief Executive Officer Iveco N.V. 

3 – Paolo Cantarella, Chief Executive Officer Fiat S.p.A. 

4 – Damien Clermont, Chief Financial Officer Fiat S.p.A. 

5 – Luca Cordero di Montezemolo, Chairman and Chief Executive Officer Ferrari S.p.A. 

6 – Pier Luigi Fattori, Corporate Senior Vice President Human Resources Fiat S.p.A. 

7 – Paolo Fresco, Chairman Fiat S.p.A. 

8 – Carlo Gatto, Chief Administration Officer Fiat S.p.A. 

9 – Francesco Paolo Mattioli, Executive Vice President Fiat S.p.A. 

10 – Paolo Monferino, Executive Vice President Fiat S.p.A. 

11 – Umberto Quadrino, Co-Chairman CNH Global N.V. 

12 – Jean Pierre Rosso, Chairman and Chief Executive Officer CNH Global N.V. 

13 – Roberto Testore, Chief Executive Officer Fiat Auto S.p.A. 

The Management 

1 

7 

2 

8 

3 

9 

4 

10 

5 

11 

6 

12 13 

Main acquisitions/agreements strengthening the Group competitiveness 

Lengthening 

Leadership Globalization the value chain 

Fiat Auto Joint venture with Yuejin Motor Company (China) ● 

Set up of Fiat Auto Egypt Industrial ● 

Strategical industrial alliance with General Motors ● ● ● 

Iveco Acquisition of a majority interest in Fraikin (France) ● 

CNH Global Acquisition of a majority interest in Case Corporation (United States) ● ● ● 

Teksid Acquisition of a majority interest in Meridian Technologies (magnesium) ● ● 

Magneti Marelli Joint venture with Bosch (lighting) ● 

Acquisition Seima Group (lighting) ● 

Comau Acquisition Pico Group (United States) ● ● 

Acquisition of a majority interest in Renault Automation (France) ● ● 

Acquisition of Sciaky activities (France) ● 

Toro Assicurazioni Acquisition of the French operations of the Guardian Group ● 

creating increasingly complex competitive challenges. In its endeavors, it is bolstered by the values it has 

consistently applied over its one-hundred-year history and which will guide it into the future: value creation, 

customer satisfaction, and the enhancement of its human resources. 

This approach is dictated by the pursuit of a specific goal: the achievement of competitive excellence, which 

means the attainment of a leadership position in those markets where the Group chooses to operate. 

To translate these values into concrete actions, the Company is committed to fully implementing its strategies: 

focusing on its core businesses, globalizing its activities, lengthening the value chain and innovating its products. 

The Fiat Group is pursuing aggressively all these main avenues of growth. Its commitment is demonstrated 

by the major acquisitions and alliances it has concluded, the increasingly balanced geographic mix of its 

revenues, the expanding range of its services, the streamlining of its organization, and the successful launch 

of new products. 

During its long history, Fiat has often been ahead of its time, anticipating trends and repeatedly transforming 

itself in an effort to seize every available growth opportunity. The Company has chosen to go down this road 

once again, as it continues the journey and the industrial adventure it started in Turin over a century ago.

40,000 

30,000 

20,000 

10,000 

0 

Revenues by geographical region of origin 

Europe excluding Italy (22%) 

Italy (61%) 

Other regions (17%) 

Revenues by geographical region of destination 

Europe excluding Italy (41%) 

Italy (38%) 

Other regions (21%) 

Sales trend of the last ten years 


29,546 29,174 30,526 

28,176 

1990 

Abroad 

Italy 

34,005 

39,092 40,244 

46,257 45,769 

48,123 

1991 1992 1993 1994 1995 1996 1997 1998 1999

4 

The Companies of the Fiat Group are organized into 

10 operating Sectors that manufacture automotive 

products and provide services to customers in more 

than 180 countries throughout the world. Driven 

by an unflagging determination to achieve market 

leadership and excel in customer satisfaction, 

the Group engages in the areas of automobiles, 

commercial vehicles, agricultural and construction 

equipment, components, production systems, aviation, 

rolling stock and railway systems, insurance and 

financial services, and publishing. 

PRODUCTS OF THE GROUP 

Automobiles 

The Group’s automobile operations are carried out primarily 

by Fiat Auto S.p.A. and its subsidiaries, which sell cars under 

the Fiat, Lancia and Alfa Romeo brands, and light commercial 

vehicles under the Fiat brand. 

Through Targa Services, the Sector offers its suppliers, dealers 

and customers a complete range of automotive services. 

Financial services are provided by Fidis. The Group also controls 

Ferrari and Maserati, which manufacture sports and luxury cars. 

Commercial Vehicles 

The Sector designs, produces and sells a complete 

range of commercial vehicles under the brands 

Iveco, Seddon Atkinson, Iveco Pegaso and Iveco 

Ford, as well as buses (through a joint venture 

with Renault V.I.) under the Iveco brand, fire-fighting 

equipment under the Camiva, Iveco and Magirus 

brands, and diesel engines under the Aifo brand. 

Through Transolver, the Sector furnishes a 

full spectrum of financial services, including 

long-term leases. The Sector 

lead company is Iveco N.V. 

Agricultural and Construction Equipment 

The Sector is headed by CNH Global N.V., a 

new company created in 1999 through the 

merger of New Holland and Case. It operates 

in the field of tractors and agricultural equipment 

with the New Holland, Case, Case IH, DMI, 

AFS, Flexi-Coil and Steyr brands. Its construction 

equipment products are sold under the New 

Holland, New Holland Construction, Case, 

Fermec, Link-Belt, O&K, FiatAllis and Fiat-Hitachi 

brands. CNH Capital offers a broad range of 

financial services to customers worldwide. 

Other Industrial Sectors 

These Sectors, which include Metallurgical 

Products, Components, Production Systems, 

Aviation and Rolling Stock and Railway Systems, 

offer the following products and services: 

• Cast-iron and aluminum engine blocks and 

cylinder heads, other cast-iron components, 

transmission components, cast-iron and 

aluminum gearboxes and suspension systems, 

and magnesium bodywork components. 

• Motor vehicle components and systems 

in the areas of powertrain, suspensions, 

interior/bodywork, and electronics, as well 

as aftermarket, quick repair and infomobility 

services. 

• Industrial automation systems for the 

automotive industry, including product 

and process engineering, logistics and 

management, program management, 

manufacturing, installation and production 

start-up, and maintenance. 

• Components and systems for airplanes 

and helicopters, ship propulsion turbines, 

propulsion systems for launchers and satellites, 

and aircraft engine overhaul services. 

• Railway and urban transit transportation 

systems, rolling stock of different types, 

railway bogies, trams and subway systems. 

Services 

These Sectors, which include Publishing and 

Communications and Insurance, are active in 

the following principal areas: 

• Publication of the daily La Stampa and sales 

of advertising space for multimedia customers. 

• Full range of casualty and life insurance 

products, bankassurance products through 

a joint venture with Banca di Roma, sales 

of Toro Targa Assicurazioni insurance products 

by a joint venture with Fiat Auto that operates 

through the Fiat dealer network.

AND SERVICES 

Lengthening the Value Chain 

The Group devotes significant attention to lengthening its value chain by developing 

services and solutions that are linked to the products it sells: financial and insurance 

services and mobility services for Fiat Auto, Iveco and CNH Global; aftermarket services 

and supply of quick repair and infomobility services for Magneti Marelli; maintenance 

services for Comau; engine overhaul services for FiatAvio; and mileage-based maintenance 

and support services for Fiat Ferroviaria. 

Support Services for the Group’s Industrial Activities 

The services that support the Group’s industrial activities, which in the past were structured 

at the Sector and country level, have been re-engineered with the establishment of 

dedicated organizational units that can supply better quality services at lower costs, 

primarily in the areas of information and communication technologies, real estate, 

administration, finance, and personnel management and training.

Fiat built its first car in 1899. 

The Lingotto, the Company’s 

first mass-production car 

factory, was inaugurated in 

Turin in 1923. It now houses 

the Group’s headquarters. 

Other plants were later opened 

in Turin (Mirafiori in 1939 and 

Rivalta in 1967), followed by 

additional facilities in Italy and 

in the world. The acquisitions 

of Lancia S.p.A. in 1969 and 

Alfa Romeo in 1986 represent 

landmark events in the 

Company’s history. Fiat’s 

domestic markets extend 

beyond Italy, to include the 

Mercosur countries, where it 

built factories in 1960 (Argentina) 

and 1976 (Brazil), and Poland, 

where in 1993 it purchased FSM’s 

automotive activities. In 1979, 

at the end of a decentralization 

process launched in 1973, Fiat 

S.p.A. divested its automotive 

operations and transferred them 

to Fiat Auto S.p.A. 

Revenues by geographical region 

of destination 

Italy 

Rest of Europe 

Rest of the world 

Employees by geographical region 

Automobiles 

FIAT AUTO 

Highlights of the year 

Marketing of the Lancia Lybra and new Fiat Punto, which were 

introduced at the events celebrating Fiat’s Centennial, got underway 

in the second half of 1999. These models were well received 

by motorists, as demonstrated by brisk sales in the closing months 

of 1999 and the beginning of 2000. 

New companies established in 1999 include a 50-50 joint venture 

between Fiat Auto and Yuejin Motor Corporation, which will 

manufacture cars in China, and Fiat Auto Egypt Industrial Company 

SAE, which will manufacture and distribute World Car models 

for the local market. This family of vehicles (Palio, Siena and Palio 

Weekend), which are built at different factories throughout the 

world, is intended to drive Fiat Auto’s expansion in the emerging 

countries, where the growth potential is greatest. 

The Sector is studying with great interest potential opportunities in Russia. It 

recently confirmed that it looks forward to the start of operations at Zao 

Nizhegorod, its joint venture with OAO Gaz and EBRD, but is adjusting the 

investment and production schedules to accommodate changing conditions 

in the local automobile market. 

On March 13, 2000, Fiat and General Motors, the world’s largest automotive 

company, announced a strategic industrial alliance. General Motors will acquire 

20% stake of Fiat Auto in exchange for the acquisition of about 5.1% of GM’s 

capital stock. Fiat S.p.A. will thus become General Motor’s largest industrial 

stockholder. 

Roberto Testore, 

Fiat Auto’s Chief 

Executive Officer. 

15% 

43% 

42% 

20% 

13% 

67% 

Multipla Bipower 

Principal companies, production facilities and sales networks 

6 Operating Sectors – Automobiles 7 

Europe 

Italy 

● Fiat Auto 

Turin 

Termoli (CB) 

Arese (MI) 

Rivalta (TO) 

Termini Imerese (PA) 

Verrone (VC) 

Cassino (FR) 

Pomigliano d’Arco (NA) 

● FMA 

Pratola Serra (AV) 

● Sata 

Melfi (PZ) 

◆ Sevel 

Atessa (CH) 

France 

◆ Sevelnord 

Lieu-Saint-Amand 

Poland 

● Fiat Auto Poland 

Tychy 

Bielsko-Biala 

Russia 

■ Zao Nizhegorod Motors 

Nizhnjy Novgorod 

Mercosur 

Argentina 

● Fiat Auto Argentina 

Cordoba 

Brazil 

● Fiat Automoveis 

FIASA 

Betim (Minas Gerais) 

Italy Rest of Europe Rest of the world Total 

Production facilities 16 3 4 23 

R&D centers 12 – 1 13 

Dealers 692 2,020 859 3,571 

Other regions 

China 

◆ Jiangsu Nanya 

Auto 

Nanjing 

Egypt 

■ El Nasr Automotive 

Manufacturing 

Morocco 

◆ Somaca 

Casablanca 

India 

● Ind Auto 

Lal Bahadur Shast 

(Maharastra) 

Pakistan 

■ Raja Autocars 

Turkey 

◆ Tofas 

Bursa 

Vietnam 

■ Mekong Corporation 

● subsidiary 

◆ affiliated company 

■ licensee

Automobiles 

Full-size 

Intermediate 

Intermediate/Compact 

Subcompact 

Niche Products 

City subcompact 

Luxury and Sports cars 

Minivans 

Light Commercial Vehicles 

166 Lancia k 

Lancia k SW 

156 Lybra 

156 Sportwagon* 

Lybra SW 

Marea 

Marea Weekend 

146 

Bravo - Brava 

Palio Weekend 

145 

Siena 

GTV 

Spider 

(*) Distribution started in 2000. 

Lancia Y Punto 

Palio 

Lancia k coupé 

Panda 

Seicento 

Coupé 

Barchetta 

Punto Cabrio 

Lancia Z Ulysse 

Multipla 

Ducato 

Scudo 

Fiorino 

Strada 

Innovation applied to the development, styling and 

manufacturing of new products is a primary factor 

in achieving customer satisfaction and gaining a 

competitive advantage. As a result, it represents a 

core value of this Sector’s growth strategy. Over the 

last five years, this approach has enabled Fiat Auto 

to earn Car of the Year honors for three of its models: 

the Fiat Punto in 1995, the Fiat Bravo-Brava in 1996, 

and the Alfa Romeo 156 in 1998. 

In 1999, the new Fiat Punto and Lancia Lybra also 

received numerous important awards, confirming the 

growing success they are achieving in the markets 

where they have been introduced. 

8 Operating Sectors – Automobiles 9 

Products 

Service Activities 

Fidis is the lead company of all the financial service 

units which, within the scope of Fiat Auto’s operations, 

offer products designed to support automobile sales to 

consumers, and help Fiat Auto dealers and the suppliers 

of the Fiat Group in general. Fidis is present directly 

or through cooperation agreements in four continents. 

The portfolio of loans handled in 1999 averaged 17 

billion euros, including 10.8 billion euros in financing 

provided to end customers, 3.9 billion euros granted 

to the sales network and 2.4 billion euros loaned to 

suppliers. 

Formula, an innovative financial product that offers 

end customers a wide range of options upon expiration 

of the financing contract, has grown particularly well 

in recent years. In the area of network financing, 

Fidis continued to develop its traditional inventory 

financing products and now finances about 90% of 

the vehicle inventories purchased by dealers. 

Fidis has achieved significant growth in financing 

provided to Group suppliers, expanding both traditional 

services like factoring and more innovative support 

activities. This was accomplished through focused 

programs that targeted domestic and international 

expansion, including, in particular, financing provided 

to several Fiat Auto suppliers for the construction of 

new production facilities in Argentina, Brazil and India.

Fiat Auto continues to be firmly committed to 

expanding its range of services. Motorists who visit 

one of the Company’s sales outlets must be able 

to find solutions to the numerous and increasingly 

complex needs that will arise while they own their 

cars. The wisdom of this strategy is demonstrated 

by the success of Targa Services in its first year of 

activity. 

New services like Targa Rent, which offers short-term 

rentals of Fiat Auto vehicles through the dealer 

network, have been added to roadside assistance, 

insurance programs, authorized body shops and 

maintenance centers. 

Performance in 1999 

In 1999, the automobile market continued to expand in 

Europe, where it grew by 5% marking the sixth consecutive 

up year, and in North America. However, demand was down 

about 18% for the year in Brazil and Argentina. Competitive 

price pressure increased steadily in Europe, especially in 

Italy, with a negative impact on the level of profitability. 

Fiat Auto sold a total of 2,328,000 vehicles, compared with 

2,397,000 in 1998. Lower sales in South America account 

for most of this 2.9% decline. 

Consolidated revenues of Fiat Auto amounted to 24,101 

million euros, showing a slight decline compared with 1998. 

The Sector reported an operating loss of 121 million euros, 

compared with a loss of 108 million euros in 1998. However, 

operating margins, which had been deteriorating during the 

first half of the year, improved sharply in the closing months 

of 1999, owing to the good performance of new models. 

Highlights 

in millions of euros 1999 1998 1997 

Net revenues 24,101 24,859 26,202 

Operating income (loss) (121) (108) 758 

As a % of revenues 

Income (loss) before 

(0.5) (0,4) 2,9 

minority interest (493) (258) 402 

Cash flow 855 1,146 2,068 

Capital expenditures 1,464 1,373 1,341 

Research and development 711 608 535 

Net invested capital 5,021 5,863 5,992 

Number of employees 82,553 93,514 118,109 

The Sportronic electronic automatic gearbox 

combines the benefits of an automatic 

transmission with the advantages of a stick 

shift. It can be set in either fully automatic 

(position A) or sequential (position S) mode. 

Production of Fiat Auto and its subsidiaries 

Automobiles and Light Commercial Vehicles 

in thousands of units 1999 1998 1997 

Fiat 1,165.2 1,154.7 1,331.2 

Lancia Autobianchi 160.1 175.4 181.7 

Alfa Romeo 208.3 197.7 160.6 

Total Western Europe 1,533.6 1,527.8 1,673.5 

Brazil 391.6 393.0 581.7 

Poland 343.8 336.7 327.9 

Argentina 42.8 93.4 95.7 

Total 2,311.8 2,350.9 2,678.8 

Other regions 41.2 38.1 – 

Grand total 2,353.0 2,389.0 2,678.8 

Sales Performance - Automobiles and Light Commercial Vehicles 

in thousands of units 1999 1998 1997 

France 151 152 120 

Germany 185 195 168 

Great Britain 96 109 101 

Italy 955 951 1,136 

Spain 73 67 53 

Rest of Europe 216 210 172 

Western Europe 1,676 1,684 1,750 

Poland 177 160 178 

Brazil 304 365 509 

Rest of the world 171 188 203 

Total sales 2,328 2,397 2,640 

Affiliated companies 59 89 99 

Grand total 2,387 2,486 2,739 

10 Operating Sectors – Automobiles 11

The Ferrari Team was founded in 

Modena in 1929 to help members 

compete in car races, initially with 

Alfa Romeo automobiles. The first 

Ferrari-built sports car raced in the 

1940 Mille Miglia, and in 1943 the 

production facilities were moved to 

Maranello. The company officially 

adopted the Ferrari name and a 

new model, the 125 Sport, made 

its debut in 1947. Since then, Ferrari 

automobiles, with some of the 

world’s greatest drivers at the 

wheel, have become legendary, 

winning more than 5,000 races 

at racetracks everywhere on the 

planet. Ferrari’s achievements 

include 9 Formula 1 World Drivers’ 

Championships, 14 Manufacturers’ 

World Championships, 3 Formula 1 

Constructors’ Championships and, 

as of the end of 1999, 125 victories 

in Formula 1 Grand Prix races. 

In 1969, Enzo Ferrari sold 50% of 

his company to Fiat, which increased 

its interest to 90% in 1988. 

In 1997, Ferrari purchased 50% 

of Maserati, another historical 

and prestigious Italian brand, 

and gained full control of the 

company in 1999. 

Ferrari: Automobile sales by 

geographical region of destination 

Italy 

Maserati: Automobile sales 

by geographical region 


United States 


Other Companies 

FERRARI 

MASERATI 

Luca Cordero di Montezemolo, 

Ferrari’s Chairman and CEO. 

Highlights of the Year 

1999 was a favorable year from every standpoint. Ferrari launched 

its most important product, the 360 Modena, and sales rose to 

5,588 units, up from 4,267 in 1998. The total includes 3,735 

Ferrari cars and 1,853 Maserati automobiles. During the year, 

Ferrari purchased the 50% of Maserati it did not own. This 

positive development will enable Ferrari to realize considerable 

synergies and revitalize the Maserati brand through a program 

of industrial and commercial restructuring. 

The Ferrari Racing Team was particularly successful in 1999, 

winning back the Formula 1 Constructors’ Championship after 

16 years. 

At the consolidated level, Ferrari/Maserati reported revenues of 758 million euros 

and operating income of 24 million euros. 

Significant events that occurred in the early months of 2000 include the introduction 

of the 360 Spider at the Geneva Auto Show, rising sales to end customers, with 

motorists buying twice as many Maseratis as in the first two months of 1999, 

and the outstanding performance of the racing team in the first Grand Prix races 

of the current Formula 1 Championship. 

10% 

17% 

27% 

46% 

16% 

17% 

67% 

Highlights 

in millions of euros 1999 1998 (*) 1997 

Net revenues 758 617 539 

Operating income 24 11 36 

As a % of revenues 3.1 1.9 6.6 

Cash flow 61 47 58 

Capital expenditures 63 61 50 


Net invested capital 185 170 162 


(*) Figures do not include Maserati. 

Ferrari makes exclusive cars, individually crafted 

in limited series, for racing drivers, car enthusiasts 

and collectors. Racing is the very reason of its 

existence, enabling the Company to offer motorists 

the ultimate in automotive performance. Ferrari is 

the leader of its market segment. 

Maserati automobiles are beguiling machines, made 

in small series for car connoisseurs. Its prestigious 

models are noticeable for their distinctive and 

elegant styling and performance, which are 

outstanding when compared with other models 

in their class. 

12 Operating Sectors – Ferrari and Maserati 13 

Product range 

Products 

Ferrari 360 Modena Berlinetta powered by an eight-cylinder 3586 

cm3 engine with output of 400 bhp (manual 

or F1-type gearbox) 

456M GT/GTA 2+2 coupé powered by a 12-cylinder 5474 

cm3 engine with output of 442 bhp (manual 

or automatic) 

550 Maranello Berlinetta powered by a 12-cylinder 5474 

cm3 engine with output of 485 bhp (top 

speed 320 km/h) 

Maserati Quattroporte Saloon powered by a V8 3217 cm3 engine 

Evoluzione with output of 335 bhp (manual or automatic) 

3200 GT/GTA Coupé powered by a V8 3217 cm3 engine 

with output of 370 bhp (manual or automatic) 

The 5474-cm 3 65° V12 engine that powers 

the 550 Maranello.

Iveco (Industrial Vehicle 

Corporation), a wholly-owned 

subsidiary of Fiat S.p.A., was 

created in 1974 as a result of 

an agreement between Fiat 

and Klockner-Humboldt- 

Deutz, a German company. 

The new entity absorbed the 

commercial vehicle activities 

of five different companies: 

Fiat, Lancia, OM, Magirus 

Deutz and Unic. 

OM, the oldest of these 

companies, was founded in 

1849. Since its inception, 

Iveco adopted an innovative 

industrial organization, 

leveraging the available 

synergies and economies 

of scale. In 1991, it took over 

Enasa-Pegaso, Spain’s largest 

manufacturer of commercial 

vehicles. During the 90’s, 

Iveco expanded its international 

presence, establishing joint 

ventures and new companies 

on every continent. In 1998, 

together with Renault it 

established Irisbus, a joint 

venture with global reach 

to which both companies 

contributed their bus 

operations. 



Italy 




Commercial Vehicles 

IVECO 

Giancarlo Boschetti, 

Iveco’s Chief 


14% 

27% 

59% 

9% 

44% 

47% 


During 1999, Iveco continued to implement a 

strategy designed to foster its international 

expansion and lengthen the value chain by offering 

customers a comprehensive range of services. 

In December 1999, it acquired a controlling interest 

in the Fraikin Group, the unchallenged leader in 

the French market for long-term leasing of 

commercial vehicles and an established provider 

of rental and fleet management services. 

Irisbus, a recently established 50-50 joint venture 

with Renault, continued to grow, taking over Ikarus, 

a Hungarian bus manufacturer. 

Capital investment programs carried out during 

1999 were focused primarily on the startup of 

facilities that will manufacture Iveco engines and 

the development of a new factory for the production 

of Daily and Ducato commercial vehicles, which 

the Sector is building through a joint venture with 

Fiat Auto, at Sete Lagoas, in the Brazilian state of 

Minas Gerais. 




R&D centers 11 12 2 25 

Dealers 89 378 189 656 

Trucks Commercial Buses Defense Firefighting Engines 

vehicles vehicles vehicles 

Europe Italy Astra V.I. ● 

Iveco Aifo ● 

Iveco Mezzi Speciali ● 

Iveco ● ● ● ● 

Irisbus Italia ● 

Austria Lohr-Magirus ● 

Czech Republic Karosa ● 

France Camiva ● 

Iveco France ● 

Irisbus France ● 

Heuliez Bus ● 

Germany Brandshutz Gorlitz ● 

Iveco Magirus Brandsch. ● 

Iveco Magirus ● 

Great Britain Seddon Atkinson Vehicles ● 

Yugoslavia Zastava-Kamioni ● 

Spain Iveco Pegaso ● ● 

Irisbus Iberica ● 

Ukraine Iveco-Kraz ● ● 

Iveco Motor-Sich ● 

Mercosur Argentina Iveco Argentina ● 

Brazil Iveco Fiat Brasil ● 

Venezuela Iveco Venezuela ● 

Other regions Australia Int. Trucks Australia ● ● 

China Naveco ● 

Ethiopia Amce - Autom. Manuf. ● 

India Ashok Leyland ● 

Turkey Otoyol Sanayi ● 

14 Operating Sectors – Commercial Vehicles 15

Products 

The new Daily was successfully introduced 

throughout Europe in June 1999 and was later 

honored as Van of the Year 2000. 

During the year, Iveco’s range of heavy-load 

vehicles grew to include the Euromover, a 

low-cab model specifically designed for 

municipal utilities. 

The Sector also expanded its intermediate range, with the 

introduction of the Eurocargo 120 EL models, which, with 

their low beds and easy cab access, are particularly suited 

for urban freight distribution. 

The Sector also introduced the Cursor engine. This new 

10-liter powerplant, with an output of 430 bhp, follows the 

extremely successful Cursor 8, which was launched in 1998. 

Trucks Name Curb weight in tons Engine output in kW 

Heavy-load road vehicles Eurotech 18-26 175-309 

Eurostar 18-26 276-380 

Seddon Atkinson 18-30 118-328 

Heavy-load quarry/construction vehicles Eurotrakker 18-40 184-345 

Astra 18-40 254-380 

Intermediate vehicles Eurocargo 06-26 085-196 

Eurocargo 4x4 10-14 105-167 

Commercial Vehicles Name Curb weight in tons Engine output in kW 

Daily Classe L 3.2 63-78 

Daily Classe S 3.5 63-92 

Daily Classe C 3.5-5.2 63-92 

City and long-distance buses 

Defense vehicles 

Firefighting equipment 

Engines Family Number of cylinders Engine output in kW 

8100 4 in line 60-92 

8000 4-6 in line 85-100 105-167 




8280 8 V 260-378 

Cursor 8 6 in line 180-259 

Cursor 10 6 in line 287-316 


The EuroTech and EuroStar heavy-load 

vehicles with Cursor engines are 

becoming the trucks of choice for 

long-range and domestic freight hauling. 

Service Activities 

In many businesses the notion that in certain cases 

it is more efficient to pay for a service rather than to 

purchase an asset has become an established belief. 

Iveco has responded to the needs of the market by 

creating Transolver, a company focused on supporting 

the Sector’s marketing activities with a complete 

package of products that can be sold by its 

distribution system. Transolver includes Transolver 

Finance, which offers its customers financing and 

leasing options, and Transolver Services, which 

provides vehicle rental services. 

The acquisition of Fraikin is an example of this strategy 

focused on expanding the company’s distribution 

activities and services. 

During 1999, the Transolver companies that provide 

financing and rental services executed contracts 

covering more than 22,500 new and used vehicles, 

or 6% more than in 1998. In Western Europe, 

Transolver’s penetration of the financing market rose 

to 27% of new vehicles sold. 


In 1999, the European market for commercial vehicles continued 

to grow at the rapid pace it had experienced the previous year, 

consolidating the expansionary trend that started in 1994. In 

Western Europe, demand for commercial vehicles with a curb 

weight equal to or greater than 3.5 tons totaled about 630,000 

units, up 10.8% over the previous year. With the exception of 

Great Britain (-2.8%), all European markets turned in a positive 

performance. Particularly good results were achieved in Italy 

(+24.8%) and Spain (+22.2%). Demand was also up significantly 

in Germany (+13.6%) and in France (+12.4%). 

Overall, Iveco sold 149,900 vehicles in 1999, or 9.6% more than 

in 1998. Counting the contribution of joint ventures and licensees, 

unit shipments totaled 192,000 vehicles, about the same as in 

1998. 

The Sector’s financing activities continued to grow both internally, 

with the introduction of new products and the establishment 

of new companies (Transolver Service GmbH in Germany and 

Transolver Service S.A. in Spain), and through acquisitions (Fraikin). 

The Sector’s net revenues amounted to 7,387 million euros, 

or 11.1% more than in the previous fiscal year. 

At 311 million euros (+50 million euros over 1998) operating 

income was equivalent to 4.2% of revenues, up from 3.9% in 

1998, owing to the beneficial effects of higher volumes and lower 

product costs and overhead. 

Sales Performance - Units sold 

in thousands of units 1999 1998 in % 

France 20.1 16.3 23.3 

Germany 16.9 16.6 1.8 

Great Britain 13.7 15.6 (12.2) 

Italy 41.5 37.2 11.6 

Spain 15.0 12.9 16.3 

Western Europe 119.8 111.2 7.7 

Rest of the world 30.1 25.6 17.6 

Total sales 149.9 136.8 9.6 

Joint ventures (*) 42.1 56.5 (25.5) 

Grand total 192.0 193.3 (0.7) 

(*)1998 data do not include Naveco sales (20,600 units). 

During 1999, the Sector’s profitability was adversely affected 

by the phaseout of the old Daily line and the costs incurred 

to launch the new range of these vehicles. 

Highlights 


Net revenues 7,387 6,649 5,850 




4.2 3.9 3.5 

minority interest 180 192 174 

Cash flow 433 368 374 



Net invested capital 2,359 1,764 1,440 


The heavy-load vehicle range features Cursor 

10 engines and a number of other innovations. 

These new engines have been designed 

specifically for long-distance tractor trailers, a 

key segment in Europe of the heavy-load market. 


CNH Global is the new 

name of New Holland N.V., 

following its acquisition of 

Case Corporation in 1999. 

New Holland was created 

in 1991 through the merger 

of Ford New Holland and 

Fiat Geotech. Ford built 

its first tractor prototype 

in 1907 and started mass 

production in 1917. 

Fiat’s first tractor came 

to market in 1919. 

New Holland has become 

a dominant force in the 

world market for agricultural 

equipment and has grown 

significantly in the area of 

construction equipment. 

Case was founded in 1842 in 

Wisconsin by Jerome Increase 

Case. Following developments 

and acquisitions (of strategical 

importance the acquisition of 

International Harvesting in 1985), 

Case offers a broad range of farm 

equipment and is the largest U.S. 

manufacturer of small and 

medium-sized construction 

machines. Since 1957 Case has 

provided superior financial 

products to serve its customers. 



(pro-forma, incl. Case) 

Italy 


(pro-forma, incl. Case) 



Agricultural and Construction Equipment 

CNH GLOBAL 

Jean Pierre Rosso, CNH Global’s Chairman and CEO, 

and Umberto Quadrino, CNH Global’s Co-Chairman. 


On November 12, 1999, New Holland 

and Case Corporation completed the 

merger of their respective operations. 

This transaction created CNH Global 

(CNH), the largest manufacturer of 

agricultural equipment in the world, 

one of the top international manufacturers 

of construction equipment and 

one of the world’s largest equipment 

finance companies, with the widest 

geographical reach of any company 

in its industry. CNH distributes its 

strong, globally recognized brands in over 160 markets through an extensive 

network of approximately 10,000 dealers and distributors. Fiat is CNH’s largest 

stockholder, with a 71% interest. 

This new company, whose securities are traded on the New York Stock Exchange, 

reported proforma consolidated revenues of about 10 billion euros in 1999. 

CNH’s products will continue to be distributed under the New Holland and Case 

brands by the respective sales networks. 

In September 1999, Harbin New Holland Beidahuang Tractor Ltd, a joint venture 

in the People’s Republic of China in which CNH holds a 70% interest, started to 

manufacture and sell a line of farm tractors with output ranging between 100 and 

180 bhp. In January 2000, CNH completed the acquisition of Canadian-based 

Flexi-Coil Ltd, a leading producer of seeding systems and tilling equipment. 

6% 

37% 

57% 

14% 

40% 

46% 




R&D centers 2 6 8 16 

Dealers 174 3,890 5,936 10,000 

Agricultural equipment Construction equipment 

Europe Italy New Holland ● ● 

Austria Case ● 

Belgium New Holland ● 

France Case ● ● 

New Holland ● 

Germany Case ● 


Poland New Holland ● 

United Kingdom Case ● ● 


NAFTA United States Case ● ● 

New Holland ● ● 

Canada New Holland ● 

Mexico Case ● 

Mercosur Brazil Case ● ● 


Other regions Australia Case ● 

20 Operating Sectors – Agricultural and Construction Equipment 21

Business Unit Product Lines 

Agricultural 

equipment 

Tractors 

Construction 

equipment 

Harvesting equipment 

Hay and forage 

equipment 

Crop production 

Light-to mediumconstruction 

equipment 

Heavy construction 

equipment 

Complete horsepower range 

Two-wheel drive, four-wheel drive and Quadtrac 

Specialty tractors 

Combines 

Cotton pickers 

Grape and sugar cane harvesters 

Self propelled and pull type harvesters 

Balers 

Complete line of sprayers 

Planters and seeding systems 

Precision farming systems 

Tillage equipment 

Skid-steer loaders 

Loaders/backhoes 

Mini/midi excavators 

Telescopic handlers 

Forklifts 

Trenchers 

Horizontal drills 

Crawler and wheel excavators 

Wheel and crawler loaders 

Graders 

Dozers 

22 Operating Sectors – Agricultural and Construction Equipment 23 

Products 

CNH is managed as a global company, keeping 

separate Case and New Holland brand names and 

dealer networks. CNH is organizing its manufacturing 

operations with global product line responsibilities, 

and CNH will organize its sales and marketing 

activities on a geographic basis, keeping separate 

the dealer and customer-related activities of New 

Holland and Case. 

During the year, the CNH’s Equipment Operations 

continued to renovate its product line and expand 

its sales network. During the first quarter, Case 

introduced the C Series wheel loader line, designed 

Financial Services 

CNH Capital, a Sector company, provides broadbased 

financial services for the global marketplace 

through various wholly owned subsidiaries and joint 

ventures in the United States, Canada, Argentina, 

Australia, Brazil and Europe. 

CNH Capital provides and administers retail financing 

to end-use customers for the purchase or lease of 

new and used CNH and other agricultural and 

in response to customer requirements for optimum 

reliability and durability on the job site. Case also 

introduced a new high-lift telescopic handler and a 

new 7-ton excavator built for contractors who want 

the versatility and productivity of a larger excavator, 

but the maneuverability of a smaller unit. 

In November, New Holland launched its new TM line 

of tractors, available with engines with output ranging 

from 92 and 135 bhp. In Europe, CNH introduced 

new square balers, which are the first machines of 

this kind to be equipped whit a self-steering from 

axle for outstanding driving comfort. 

construction equipment. CNH Capital also facilitates 

and finances the sale of insurance products and other 

financing programs to retail customers. In addition, 

CNH Capital provides wholesale financing to CNH 

dealers and rental equipment yards. 

CNH Capital also provides financing options to dealers 

and non-captive third parties to finance inventory, 

working capital, real estate acquisitions, construction

CNH is a leader in the mechanized 

farming market and one of the top international 

producers of construction equipment. 

and remodeling, business acquisitions, dealer 

systems and service and maintenance equipment. 

In North America, CNH Capital offers customers a 

private-label credit card to purchase parts, service, 

rentals implements and attachments from its dealers. 

CNH Capital’s Soris Financial offers a broad range 

of retail and wholesale financing products, including 

equipment and commercial loans and leases for North 

American manufactures, dealers, distributors, and 

their customers. Soris Financial also facilitates and 

finances the sale of insurance products to retail 

customers. 

At December 31, 1999, CNH Capital’s serviced 

portfolio of receivables was approximately 11 billion 

euros. On a pro forma basis, after giving effect to the 

merger, CNH Capital’s revenues were approximately 

737 million euros in 1999. 


In 1999, the tractor market grew slightly in Western Europe. In North America, 

although overall tractor sales evidenced a small increase, this was entirely 

attributable to the growth in sales of low horsepower tractors. The North American 

market for more powerful tractors, such as those produced by CNH, continued 

to reflect ongoing market weakness. In Latin America, the market held steady, 

slightly above 1998 levels. 

Sales of heavy construction equipment experienced an overall decline, as buoyant 

demand in Western Europe and Latin America could 

only partially offset a sharp decline in North America. 

Excluding Case, which was not yet consolidated, CNH 

sold 78,900 farm tractors in 1999, down slightly from 

the 80,800 units shipped in 1998. CNH’s revenues 

amounted to 5,246 million euros, or 2.3% more than in 

the previous fiscal year. This increase, which occurred 

despite a reduction in unit sales, was due mainly to the 

appreciation of the U.S. dollar, which is the Sector’s 

reporting currency. When Case’s 1999 sales are included 

on a pro forma basis, CNH’s revenues rise to about 10 

billion euros. 

Excluding Case, operating income came to 371 million 

euros. The decrease from the 452 million euros earned 

in 1998 is due mainly to a drop in units shipped and an 

unfavorable sales mix. 

Highlights 

in millions of euros 1999 (*) 1998 1997 

Net revenues 5,246 5,127 5,284 



Income before 

7.1 8.8 11.4 


Cash flow 333 624 528 



Net invested capital 5,777 1,123 592 


24 Operating Sectors – Agricultural and Construction Equipment 

25 

(*) Excluding Case.

Founded in 1978, Teksid 

inherited the steel making 

and metallurgical expertise 

developed by Fiat during 

sixty years of activity. After 

divesting its primary steel 

making activities in 1982, 

the Company focused its 

operations on the production 

of metallurgical components. 

Toward the end of the 1970’s, 

Teksid embarked on an 

internationalization strategy, 

establishing manufacturing 

facilities in Brazil and North 

America. Over the last twenty 

years, the Sector’s geographical 

expansion has been patterned to 

achieve the greatest proximity to 

its customer’s facilities worldwide. 

The largest expansion of 

production capacity occurred in 

Europe (Italy, France, Portugal and 

Poland), North and South America 

(Canada, United States, Mexico, 

Brazil and Argentina) 

and the Far East (China). 



Italy 




Metallurgical Products 

TEKSID 


In 1999, with a transaction involving a capital increase reserved 

for the Renault Group, Teksid completed the purchase of Renault’s 

foundry activities. Following this transaction, Fiat S.p.A. will continue 

to hold a controlling interest of 66.5% in Teksid, while the French 

Group will own the remaining 33.5%. 

In the United States, the Sector established Teksid Aluminum 

Components (100% Teksid). In Canada, it laid the groundwork for 

an expansion of manufacturing capacity at Meridian Technologies 

Inc., a world leader in magnesium technology owned for 51% by 

Teksid and for 49% by Norsk Hydro. Another important development 

was the gradual integration of the former Renault facilities, with the 

goal of increasing the product specialization of the individual 

manufacturing locations. This resulted in the creation of two centers of excellence 

in Italy: Crescentino for cast iron and Carmagnola for aluminum. The output of 

the Carmagnola cast-iron production unit, which will be phased out in July 2001, 

will be picked up by other Sector locations in Italy and abroad. These transactions 

enabled Teksid to consolidate its position as a world producer of cast-iron, aluminum 

and magnesium components and strengthen its leadership of the European market. 

Paolo Filomeni, 

Teksid’s Chief 


In 1999, the Sector had revenues of 1,682 million euros, up more than 44% over 

the previous fiscal year. Operating income rose to 76 million euros (4.5% of 

revenues), compared with 42 million euros (3.6% of revenues) in 1998. 

28% 

38% 

34% 

31% 

37% 

32% 

Highlights 


Net revenues 1,682 1,165 1,190 



Income before 

4.5 3.6 4.5 







Principal companies and businesses 

Cast iron Aluminum Magnesium 

Europe Italy M.P.I. ● 

Teksid For ● 

Teksid ● ● 

France Fonderies Aluminium Cleon ● 

Fonderies du Poitou ● ● 

Metallurg. du Temple ● 

Societé Bretonne de Fonderie et Mécanique ● 

Poland Teksid Poland ● ● 

Portugal Funfrap-Fundicao Portug. ● 

NAFTA Canada Meridian Operations ● 

Mexico Teksid Aluminio de Mexico ● 

Teksid Hierro de Mexico (*) ● 

United States Magnesium Products ● 

Teksid Aluminum Foundry ● 

Mercosur Argentina Teksid Argentina ● 

Brazil Teksid do Brasil ● ● 

Asia China Hua Dong Teksid Automotive Foundry Co. (*) ● 

Nanjing Teksid Iron (*) ● 

Nanjing Teksid Aluminum (*) ● 

(*) Affiliated companies. 




India Teksid Kalyani ● 

Turkey Cevher Dokum Sanayi (*) ● 

26 Operating Sectors – Metallurgical Products 27

The use of magnesium alloys in the production 

of automotive components has grown 

substantially in the past three years. The world 

market has consolidated first generation 

products (bulkhead beams, gearboxes, steering 

wheel shafts, seat backs) and, at the same 

time, has developed new components 

(instrument panels, frames for moving body 

parts) fully capable of benefiting from the 

potential of pressure casting technology 

(integration of functions, reduced wall thickness). 

The substantial weight reduction obtainable 

by replacing steel (-40%) and aluminum 

(-10%) for the same performance allows 

magnesium to maintain its uncontested 

position as the metal for the future of ecological 

cars (low emissions, recyclable). 

Competitive Positioning 

Principal customers 

14% 

43% 

43% 

Products 

Business Unit Core products 

Cast iron Engine blocks 

Cylinder heads 

Drive shafts 

Cam shafts 

Exhaust manifolds 

Differentials 

Struts 

Wishbones 

Aluminum Cylinder heads 

Engine blocks 

Gearboxes/clutches 

Suspension components 

Magnesium Instrument panels 

Seats 

The Sector is a world-leader producer 

of engine blocks (cast iron), cylinder 

heads (aluminum) and instrument panels 

(magnesium). 

Fiat Group 

Fiat Auto, Iveco, CNH Global. 

Other carmakers 

Renault, Daimler Chrysler, General Motors, 

Ford, Cummins, Volkswagen, Volvo, Toyota, 

BMW. 

Revenues by business unit 

Magnesium 

Aluminum 

Cast iron 

28 Operating Sectors – Metallurgical Products 29 

28% 

72% 

Revenues by customer 



Policast currently represents an interesting process 

alternative for the production of automotive components 

with a particularly complex geometry. 

In particular, engine designers are increasingly interested 

in exploiting the “near net shape” potential of the process 

applied to aluminum alloys for the making of cylinder 

heads, valve covers, and engine blocks. 

The recent development of materials used in the process 

(polymers, paints, sands) together with increased 

experience in the design of molding equipment 

(polystyrene molds, gluing and painting stations) have 

made it possible to achieve high levels of quality in the 

resulting products. 

Teksid is a world leader in the production of aluminumalloy 

Policast castings. In addition to the Carmagnola 

facility, another plant specializing in this technology and 

capable of meeting the fast growing demand of the North 

American market is being built in Alabama, United States.

Magneti Marelli was founded in 

1919 by Fiat and Ercole Marelli. 

In 1938, Enrico Fermi, a Nobel 

Prize winner for physics, was 

placed at the head of the 

Company’s research 

laboratories. In 1939, the 

Company carried out its first 

television transmission and 

reception experiments and, 

after the Second World War, 

produced Italy’s first television 

sets. However, it left this 

business in the 1970’s. In 1967, 

Fiat took over this company, 

transforming it into a global 

center for the production of 

automotive components. In 

1994, Magneti Marelli was merged 

with Gilardini. In 1997 it acquired 

the Cofap Group, South America’s 

largest components producer. In 

1998, the Company entered the 

quick-service business, acquiring 

Midas’ European service centers, 

and started to offer online services 

through Viasat, a 50-50 joint venture 

established with Telespazio, a 

Telecom Italia company, to provide 

infomobility products based on 

satellite technologies. 



Italy 




Components 

MAGNETI MARELLI 

Domenico Bordone, 

Magneti Marelli’s 

Chief Executive Officer. 


The most important events of 1999 were the conclusion of an 

agreement with Textron Automotive in the United States for the 

production of dashboard modules, the acquisition of Fiat Auto’s 

Suspension Systems operations in Italy, Poland and Brazil, and 

the establishment of Automotive Lighting Holding, a 50-50 joint 

venture with Bosch of Germany to which both companies transferred 

their worldwide lighting systems activities. Coupled with the 

acquisition of Seima, a producer of automotive headlights and 

taillights, in 2000, this transaction will propel Magneti Marelli into 

the rank of co-leader of the global lighting systems market. 

The Sector is carrying out an ambitious program designed to 

streamline its portfolio of businesses, focusing its efforts on carefully 

selected industry segments. With this in mind, it divested its Rotary Devices 

and Fuel Systems Divisions and plans to sell its Lubricants Division. 

The 1999 fiscal year ended with revenues of 4,062 million euros, up more than 

7% over 1998, and with an operating income that at 108 million euros (2.7% of 

revenues) was almost double the figure reported a year earlier (56 million euros, 

or 1.5% of revenues). 

19% 

48% 

33% 

26% 

46% 

28% 

Highlights 


Net revenues 4,062 3,793 3,451 



Income before 

2.7 1.5 2.9 


Cash flow 310 254 271 



Net invested capital 1,289 1,270 991 






Powertrain Suspension Interior and Electronic Aftermarket 

systems systems bodywork systems and 

systems services (**) 

Europe Italy Automotove Lighting (*) ● 

Magneti Marelli ● ● ● ● ● 

Magneti Marelli Climatizzazione ● 

Sistemi Sospensioni ● 

France Magneti Marelli France ● ● ● ● 

Germany Automotove Lighting (*) ● 

Great Britain Automotove Lighting (*) ● 

Poland Automotove Lighting (*) ● 

Magneti Marelli Poland ● ● 

Spain Magneti Marelli Iberica ● ● ● ● 

NAFTA Mexico Automotove Lighting (*) ● 

Magneti Marelli Mexico ● ● 

United States Cofap of America ● 

Magneti Marelli USA ● 

Mercosur Argentina Magneti Marelli Argentina ● ● 

Magneti Marelli Denso ● 

Brazil Magneti Marelli Brasile ● ● ● ● 

Magneti Marelli Cofap ● 

Other regions China Magneti Marelli Guangzhou ● 

India Magneti Marelli India ● 

South Africa Magneti Marelli Pty ● 

Turkey Magneti Marelli Electronic ● 

(*) Magneti Marelli and Bosch 50-50 joint venture. 

(**) Other companies active in this area include Midas (Italy, France, Poland, Spain and Brasil) and Viasat (Italy). 

30 Operating Sectors – Components 31

Products 

Business Unit Product lines 

Powertrain systems Engine control systems 

Exhaust systems 

Selespeed transmission systems 

Suspension systems Front and rear suspensions 

Shock absorbers 

Interior and bodywork systems Climate control systems 

Dashboard modules 

Lighting systems 

Rearview mirrors 

Electronic systems Instrument panels 

Electronic control units 

Online systems 

Aftermarket and services Quick-repair services 

Replacement parts 

Infomobility services 

Lubricants 

31% 

9% 

17% 

19% 

24% 


Powertrain systems 

Electronic systems 

Interior and bodywork systems 

Suspension systems 

Aftermarket and services 

Magneti Marelli’s products can 

account for as much as 35% of 

the modules and systems that 

comprise a motor vehicle. 

32 Operating Sectors – Components 33 

40% 

60% 

Magneti Marelli’s high-end instrument panels combine 

several essential functions, such as an encrypted 

anti-theft device (immobilizer), an automatic oil change 

reminder and a diagnostic system with a dot-matrix 

display of alarms and faults. It can also display information 

provided by a navigation system. 

Equipped with a control unit that reads and processes 

the input of a sophisticated system of onboard sensors, 

Magneti Marelli’s leading-edge climate control system 

delivers a massive flow of 430 m 3 of air per hour and can 

be programmed with different temperature settings for 

the driver and front passenger seats. 

Competitive position 

The Sector is co-leader of the world’s lighting 

systems market and is the second largest European 

producer of instrument panels. Also in Europe, it 

ranks third among manufacturers of gasoline fuel 

injection systems, climate control systems and 

rearview mirrors. 


Fiat Group Fiat Auto, Maserati, Iveco, 




CNH Global. 

Other carmakers Peugeot/Citroën, Renault, 

Volkswagen, BMW, 

DaimlerChrysler.

Fiat started regular and 

organized production of 

machine tools in 1935. The 

Sector was reorganized in 

1973 with the establishment 

of Consorzio Macchine 

Utensili (CO.MA.U.), a 

consortium of Fiat and other 

Turin manufacturers, which 

resulted in the creation of 

Comau S.p.A. in 1997 and 

helped significantly expand 

sales volume. Over the years, 

by acquiring and absorbing 

other companies, Comau 

broadened its product range, 

becoming one of the few “total” 

suppliers of automation systems 

for the automotive industry. 

In the mid 1990’s, the Sector 

launched a globalization effort, 

developing organizations that 

covered a complete portfolio 

of businesses in the major 

industrial regions of the world. 



Italy 




Production Systems 

COMAU 


Comau is a global supplier of industrial automation systems to 

automotive manufacturers, to whom it offers a complete range of 

services: product and process engineering; logistics and management, 

including program management; manufacturing, installation and 

start-up of production lines and equipment; and maintenance services 

that ensure the proper and reliable operation of industrial facilities. 

In 1999, Comau completed important acquisitions with the goal of 

strengthening its presence in its core business segments (bodywork, 

mechanical engineering and maintenance services). Fiat’s acquisition 

of Pico, a leading U.S. producer of bodywork systems, and Comau’s 

purchases of Renault Automation and Sciaky structurally reinforced 

the Sector’s presence in its principal markets and its position as a 

supplier of the major carmakers. 

Comau Service, a Business Unit with outstanding growth potential that offers 

innovative maintenance services for automotive production facilities, became 

operational in 1999. 

Owing in part to the acquisitions mentioned above and including Pico’s contribution, 

the Sector reported revenues of 1,693 million euros in 1999, double the figure 

booked a year earlier. Operating income totaled 43 million euros (2.5% of revenues). 

In 1998, Comau without Pico reported an operating loss of 1 million euros. 

In 2000, Comau signed an important agreement with Fanuc, in Japan, in the area 

of robotic components that will help both companies strengthen their respective 

core businesses. 

Piero Maritano, 

Comau’s Chief 


26% 

47% 

27% 

42% 

40% 

18% 

Highlights 


Net revenues 1,693 843 841 

Operating income (loss) 43 (1) 27 



2.5 (0.1) 3.3 

minority interest (8) (6) 12 










Product and Production Maintenance 

process Systems services 

engineering 

Europe Italy Comau ● 

Comau Service ● 

Italtech ● 

UTS ● 

France Renault Automation Comau ● ● ● 

Comau Sciaky ● 

Germany Comau Deutschland ● 

Poland Comau Poland ● ● 

United Kingdom Comau Estil ● ● 

Spain Mecaner ● 

NAFTA Mexico Trebol Tepotzotlan ● ● 

United States Progressive Tools & Industries ● ● 

Mercosur Brazil Comau do Brasil ● ● 

Comau Service do Brasil ● 

Argentina Comau Argentina ● ● 

Other regions China Comau Cina ● 

India Comau India ● 

South Africa Aims ● 

34 Operating Sectors – Production Systems 35

The inclusion of Pico (Progressive Tool & 

Industries Co.) in the Production Systems 

Sector will strengthen Comau’s position in the 

NAFTA market, providing it with the specialized 

knowhow and resources that Pico has 

acquired over the last 20 years as the leading 

supplier of bodywork assembly and welding 

systems to the largest carmakers in America. 

A finely meshed network of skilled technical 

representatives, who are available directly at 

production sites, is an invaluable tool in 

increasing customer loyalty and ensuring a 

steady stream of orders for new systems 

and maintenance services. 



58% 

20% 

12% 

4% 

4% 

2% 

Products 

Business Unit Product lines 

Engineering Product and process 

engineering 

Bodywork Sheet-metal dies 

Bodywork assembly and 

welding systems (sheet-metal 

working, final assembly, 

materials handling) 

Robotics 

Painting Systems Painting systems 

Plastics Plastic dies 

Injection molding presses 

Mechanical Machining systems 

Engineering Mechanical assembly systems 

Maintenance Maintenance services 

The Sector is the world’s leading 

producer of bodywork systems. 


Fiat Auto, Iveco. 


General Motors, Ford, DaimlerChrysler, 

Volkswagen Group, BMW, Renault and PSA. 


Bodywork 

Mechanical Engineering 

Maintenance 

Engineering 

Plastics 

Painting Systems 

36 Operating Sectors – Production Systems 37 

28% 

72% 




All Comau products and services reflect sophisticated engineering 

and the use of leading-edge hardware and software applications. 

They also embody years of experience with the top carmakers in 

the world, an in-depth knowledge of the market, decades of research 

and innovation, and the contribution of Comau’s men and women, 

who day after day work side-by-side with their customers, developing 

individual and total solutions for every aspect of manufacturing. 

Comau’s goal is to provide simple and effective automation systems. 

Even the most complex automation system, the most complete 

production line, the most sophisticated equipment must be easy to 

use, cost-effective to operate, and flexible and adjustable enough 

to allow shifts in component production in response to changing 

market needs. From the start of the design process, Comau works 

closely with its customers, providing a comprehensive approach to 

the development of production alternatives — from engineering to 

manufacturing and from assembly to maintenance services — 

offering a “full service” package to customers throughout the world.

Since its founding, Fiat has 

been noted for its ability to 

develop, test and manufacture 

engines for the different 

businesses included in the 

Group. Aircraft production 

started with the beginning 

of the First World War and 

continued until 1969. At that 

time, Fiat transferred its 

frame-production activities to 

Aeritalia, a newly established 

company, concentrating 

instead on the manufacture 

of engines. In 1976, all 

aviation activities were 

transferred to Fiat Aviazione 

S.p.A., an independent 

company that later changed its 

name to FiatAvio. In 1994, with 

the acquisition of BPD Difesa e 

Spazio, FiatAvio strengthened its 

position in the aerospace market, 

which has grown to represent its 

second main area of strategic 

interest. The acquisition of Alfa 

Romeo Avio in 1997 expanded 

FiatAvio’s presence as a provider 

of maintenance services, with a 

further extension of the value 

chain. 



Italy 




Aviation 

FIATAVIO 


FiatAvio develops, produces and distributes components and systems 

for airplane and helicopter engines, and assembles turbines for marinepropulsion 

applications. Its space activities manufacture propulsion 

systems for launchers and satellites. The Sector has also developed 

overhaul services for aircraft engines and energy production facilities. 

In the area of commercial aircraft engines, FiatAvio participates in 

important development and production programs in partnership 

with the world’s top engine manufacturers. In the field of Defense 

applications, the Sector is a partner in the European consortium 

that is developing and will manufacture the EJ200 engine for the 

new Eurofighter. 

FiatAvio has developed a significant presence in the area of space 

activities. In Europe, it collaborates in the development of the 

Ariane programs, for which it produces such high-tech components as boosters 

and separation engines for the Ariane 4 launcher, and boosters and a liquid 

oxygen turbopump for the Ariane 5 launcher. 

In 1999, the Sector had revenues of 1,361 million euros, about the same as in 

the previous fiscal year. Operating income increased to 109 million euros (8% 

of revenues), compared with 60 million euros in 1998 (4.4% of revenues). 

In 2000, FiatAvio helped establish Turboprop International GmbH (22% FiatAvio, 

12% ITP, 33% Motoren und Turbinen Union and 33% Snecma Moteurs), which 

will coordinate the design, development and production of the M138 engine for 

the A400M military transport aircraft. 

Saverio Strati, 

FiaAvio’s Chief 


28% 

41% 

31% 

2% 

1% 

97% 

Highlights 


Net revenues 1,361 1,361 1,263 



Income before 

8.0 4.4 4.5 


Cash flow 145 167 112 





Italy French Guyana Total 

Production facilities 9 2 11 

R&D centers 8 – 8 


This Sector is a worldwide leader in the production of 

accessory gearboxes for aeronautical engines. In this area 

it also holds the European leadership position in the production 

of power reduction boxes, afterburners, and helicopter 

engines. In aerospace, it is the European leader in the 

production of solid-fuel propulsion engines and separation 

engines. 

Aircraft engine components and systems 

Products Partners 

Accessory gearboxes General Electric, Pratt & Whitney, 

Rolls-Royce, Motoren und Turbinen 

Union, ITP 

Power reduction boxes Pratt & Whitney Canada 

Low pressure General Electric, Pratt & Whitney, 

turbines Rolls-Royce, Pratt & Whitney 

Canada, Snecma Moteurs, Motoren 

und Turbinen Union, ITP 

Heaters and Rolls-Royce, Pratt & Whitney, 

afterburners Motoren und Turbinen Union, ITP, 

Allied Signal 

Auxiliary Allied Signal, Others 

power units 

Helicopter engines General Electric 

Helicopter transmissions Eurocopter, Sikorsky 

Marine propulsion General Electric 

and automation 

Products Partners 

9.5 to 230 ton solid-fuel Snecma Moteurs, SNPE 

propulsion engines 

Separation engines 

Liquid oxygen Snecma Moteurs 

turbopumps 

Satellite launchers 


52% 

16% 

Aviation 

12% 

Engine Overhaul 

Gas Turbines 

18% Space 

2% 

Automation electronics 

38 Operating Sectors – Aviation 39 

Products 

Space

Fiat built its first tram in 1906, 

but officially entered the rolling 

stock market in 1917, when 

it acquired the Diatto works 

in Turin. In the 1920’s, the 

Company manufactured 

the world’s first electric 

locomotive, followed in the 

1930’s by the Littorina, an 

enormously successful selfpropelled 

rail car equipped 

with an internal combustion 

engine, originally powered 

with gasoline and later with 

diesel fuel. In response to the 

need for faster, more comfortable 

and efficient transportation, Fiat 

Ferroviaria developed its tilting 

body train and a series of highspeed 

bogeys, which it started to 

manufacture in the 1970’s utilizing 

original and futuristic solutions. 

The Sector’s low-platform 

trams have made an important 

contribution to the development 

of light subways and surface urban 

transportation systems. 



Italy 




Rolling Stock and Railway Systems 

FIAT FERROVIARIA 

Maurizio Magnabosco, 

Fiat Ferroviaria’s 

Chief Executive Officer. 


Fiat Ferroviaria operates in rail and tramways, producing traction 

systems, rolling stocks of various types, railway bogeys, trams and 

subway systems. 

The Sector has been remarkably successful in the international 

markets with its Pendolino, a tilting-body train that can achieve 

higher speeds on existing railway lines and assure maximum ride 

comfort, with limited investments and a short implementation 

schedule. 

In 1999, the markets where the Sector operates were relatively 

stagnant, with the exception of urban transport systems in Italy. 

At December 31, 1999, Fiat Ferroviaria’s order portfolio totaled 

1,288 million euros (1,599 million euros at the end of 1998). 

Revenues totaled 375 million euros in 1999, slightly less than in the previous 

fiscal year. Operating income was 13 million euros (3.5% of revenues), down 

from 18 million euros in 1998 (4.6% of revenues). Orders booked under extremely 

competitive conditions account for most of this decline. 

1% 

33% 

66% 

11% 

89% 

Highlights 






3.5 4.6 6.7 

minority interest 3 (1) 14 






The Pendolino train 

Trains 

Trains in Trains on under 

operation order option Total 

Italy 40 – – 40 

Switzerland 9 24 – 33 

Spain 10 – 14 24 

Germany 60 3 – 63 

United Kingdom – 53 25 78 

Finland 2 8 15 25 

Portugal 5 5 – 10 

Czech Republic – 7 – 7 

Croatia – 3 – 3 

Total 126 103 54 283 

40 Operating Sectors – Rolling Stock and Railway Systems 41 

Lisbon 

Oporto 

Italy Switzerland Total 

Production facilities 3 1 4 

R&D centers 3 1 4 


250 

km/h on 

conventional tracks 

The Sector is a leader in the design and production of variablegeometry 

trains with active tilting-body systems, and holds 

a preeminent position in the design and production of railway, 

tram and subway bogeys. 

Lines in operation 

Contracts 

Madrid 

Valencia 

Glasgow 

Liverpool 

Birmingham 

London 

Barcelona 

Edinburgh 

Manchester 

Lyon 

Marseille 

Basel 

Bern 

Genève 

Düsseldorf 

Frankfurt a.M. 

Torino 

Genova 

Berlin 

Dresden 

Praha 

Stuttgart 

Furtimwald 

Zürich 

Firenze 

München 

Roma 

Hof 

Nünberg 

Napoli 

Salzburg 

Pescara 

Reggio Calabria 

Turku 

Tampere 

Wien 

Maribor 

Milano 

Venezia Ljubijana 

Bologna 

Bari 

Helsinki 


10% 

8% 

Pendolino trains 

13% 

High-speed trains 

Other trains 

14% Tram and subway systems 

55% 

Components

Fiat has been active in the 

publishing business since 

1926, when it established 

Editrice La Stampa, the 

eponymous publisher of 

Turin’s daily. The newspaper, 

which was created in 1867 

as the Gazetta Piemontese, 

changed its name to La 

Stampa in 1895, when it was 

headed by Alfredo Frassati. 

Publikompass, a company 

founded in 1972 to sell 

advertising space for Italian 

communication media on a 

licensee basis, has significantly 

expanded its customer portfolio. 

In 1979, Fiat established Itedi, 

to which it transferred all its 

publishing and communications 

interests. 


Advertising 

Newspaper publishing 

Industrial publishing 

Publishing and Communications 

ITEDI 

Alberto Nicolello, 

Itedi’s Chief 



La Stampa, one of Italy’s premier non-specialized national circulation 

newspapers, is also present on the Internet with its own website, 

www.lastampa.it. The new edition of this site, which went on line 

on December 18, 1999 with content provided by a dedicated 

editorial staff, is recording as many as 100,000 page-hits a day. 

La Stampa Interattiva, a subsidiary that was set up toward the end 

of 1999, is developing an Internet portal in cooperation with CiaoWeb. 

Publikompass is a leader among Italian companies that solicits 

advertising sales on a licensee basis and is the advertising partner 

of 33 publishers. At the end of the year, the Sector sold a 75% 

interest in its non-strategic industrial publishing activities, which 

are headed by Satiz, to MSX International, a U.S. group. 

In 1999, net revenues totaled 413 million euros, down from the previous fiscal 

year due to the deconsolidation of the Satiz activities. Operating income was 

equivalent to 17 million euros (4.1% of revenues), compared with 19 million euros 

in 1998 (4.3% of revenues). 

In February 2000, Itedi launched Koinet, the first business-to-business portal 

developed by a major Italian group. Koinet is specifically designed to meet the 

communication needs of small and medium-sized businesses. 

48% 

33% 

19% 

Highlights 




As a % of revenues 4.1 4.3 2.7 

Net income (loss) 11 – 2 




Number of employees 934 1,473 1,505 

Editrice La Stampa 

La Stampa uses a complete range of 

electronic publishing tools: a professional 

database available worldwide in real time, 

CD-ROM publishing of multimedia 

projects, Internet presence through 

the www.lastampa.it website with a 

dedicated editorial staff, electronic 

distribution (Dayfax summary edition 

and an edition available at the website 

of the National Telemedicine Project 

in a version accessible to visually 

challenged persons). 


La Stampa is Italy’s third-largest national 

circulation newspaper. 

Publikompass is the largest non-captive 

company licensed to sell advertising on 

behalf of Italian newspapers and enjoys 

a significant presence in the periodical, 

Internet and television advertising 

42 Operating Sectors – Publishing and Communications 43 

Publikompass 


Newspapers 

● La Stampa, with daily circulation of 400,000 

copies, which are distributed with various 

supplements, and reach 1,650,000 readers. 

● The weekly Specchio, with circulation of 

about 210,000 copies. 

Multimedia advertising licensee 

About 70,000 pages of advertising space sold 

and 100,000 customers. 

Sells advertising space for 11 newspapers, 

11 periodicals, 6 local TV stations and 20 

Internet sites. 

Editorial offices: Turin 

Correspondent offices: Rome, Milan, Washington, Moscow, 

Paris, London, Bonn and Brussels. 

Field offices in all the provincial capitals of the regions of 

Piedmont, Liguria and Valle d’Aosta. 

Collaborative relationships with Le Monde (of which Editrice 

La Stampa is a stockholder), The New York Times, The Los 

Angeles Times and The Guardian. 

Head office: Milan 

An area office in Rome. 

24 branch offices in all the main Italian business centers and 

where the major clients are located. 

The staff consists of 298 employees and the sales organization 

of 320 agents. 

markets.

Established in 1833, Toro 

Assicurazioni gradually 

expanded its activities to 

include all segments of the 

insurance market. In 1983, 

IFI acquired the company 

from Banco Ambrosiano and 

later transferred its ownership 

to IFIL. In 1989, Fiat purchased 

a relative majority of its shares 

and gained full control in 1990. 

Toro Assicurazioni heads one 

of Italy’s leading insurance 

groups, ranking in third place 

in terms of revenues and 

among the top performers 

in terms of earnings. The 

Company operates in the 

international markets as well. It 

is particularly well established in 

France, where it has operated since 

1956 through the Continent Group. 

Toro Targa Assicurazioni, a venture 

launched in 1998 to distribute 

insurance products through Fiat 

dealers, is present in Italy, Brazil and 

Poland. Roma Vita, a joint venture 

with Banca di Roma, in which the 

Sector acquired a significant interest 

in 1997, has become one of the 

leading bankassurance distributors. 



Italy 




Insurance 

TORO 

ASSICURAZIONI 

Francesco Torri, 

Chief Executive Officer 

of Toro Assicurazioni. 


The Italian insurance market posted strong growth in 1999, 

expanding by about 20% compared with the previous year. The 

gains were especially pronounced in life insurance, which increased 

by more than 30%, and now accounts for 58% of all premiums 

written. Unit- and index-linked policies, which are linked to the 

performance of mutual funds or stock market indices, have been 

particularly successful, and sales through bank branches have 

expanded at a brisk pace. In the French market, which is the 

Sector’s other major profit center, demand was about the same 

as in 1998. The Sector had an outstanding year, reporting higher 

insurance revenues (premiums written totaled 4,088 million euros, 

+29%) and an improved operating performance (net income of 92 

million euros, +44%). The programs introduced in recent years 

were particularly successful, including the sale of insurance products through 

such innovative channels as bankassurance (Roma Vita +72%) and Fiat dealers 

(Toro Targa Assicurazioni, +103% in Italy). In December 1999, in continued 

pursuit of its growth strategy, Toro acquired the French operations of the Guardian 

Group, which will be merged with the Continent Group, strengthening its range 

of products. The newly acquired companies, which will be consolidated as of 

2000, booked premiums totaling more than 180 million euros in 1999. 

At the end of 1999, the Sector received the authorizations required to operate 

in Poland through a direct subsidiary. 

1% 

10% 

89% 

3% 

26% 

71% 

Highlights 


Consolidated premiums 4,088 3,169 2,162 

Premiums earned 3,922 2,959 2,016 

Income before taxes 178 116 133 

Net income 

before minority interests 92 64 88 

Technical reserves 9,733 6,386 4,738 

Investments in financial 

assets and real estate 10,867 7,393 5,520 

Stockholders’ equity 1,444 1,334 1,083 



Toro Assicurazioni ranks third among Italian insurance 

groups. Based on current estimates, Roma Vita is 

the second largest service provider in the 

bankassurance market. 

Consolidated premiums 

1995 1996 1997 1998 1999 

Toro Assicurazioni Life insurance and casualty 

insurance products and reinsurance 

Nuova Tirrena Life insurance and casualty 

insurance products and reinsurance 

Roma Vita Joint venture with Banca di Roma 

for the distribution of life insurance 

products 

Giano Assicurazioni Joint venture with Banca di Roma for 

the distribution of casualty insurance 

products through the bank-branch 

network 

DAS Legal assistance insurance 

Toro Targa Distribution of casualty insurance 

Assicurazioni products (auto insurance primarily) 

through the Fiat dealer network 

Phenix Seguradora Casualty insurance products in Brazil 

Continent Life insurance and casualty insurance 

Assurances Group products and reinsurance in France 

Guardian Royal Life insurance and casualty 

Exchange Group insurance products and reinsurance 

44 Operating Sectors – Insurance 45 


Life insurance 

Casualty 

insurance 

Italy Rest of Rest of Total 

Europe the world 

Agents 919 400 – 1,319 

Dealers 814 305 227 1,346 

Bank branches 1,300 – – 1,300 

1,364 

2,162 

1,932 

3,169 

4,088 

4,000 

3,000 

2,000 

1,000 

0 

Consolidated premiums per employee 

in thousands of euros 

696 

743 

840 

1,193 

54% 

29% 

17% 

1995 1996 1997 1998 1999 

Principal companies and activities 

1,574 

1,500 

1,125 

750 

375 

0 

Investments and technical reserves 


3,676 

Technical reserves 

Investments 

2,838 

4,684 

1995 1996 

Premiums by business unit 

3,965 

Life insurance 

Automobile insurance 

Other casualty insurance 

5,520 

4,738 

1997 

7,393 

10,867 

6,386 

1998 1999 

9,733 

10,000 

7,500 

5,000 

2,500 

0

Consistently with the strategy 

launched by the Group in previous 

fiscal years to reduce the 

complexity of all its businesses, 

the services that support the 

industrial activities, which 

previously operated at the Sector 

and country level, have been 

concentrated at dedicated 

organizational units. These 

centers of professional excellence 

provide the Group with better 

quality services at lower cost. 

Other Companies 

Information and Communication Technology 

SERVICES 

CIAOHOLDING is a joint venture owned in equal shares by Fiat and 

IFIL. It operates the CiaoWeb Internet portal which has among its purposes 

the creation of an online channel to promote the products and services 

offered by the Fiat Group’s companies, IFIL and their sales networks. At the same 

time, CiaoWeb collaborates with external partners who can help it increase the range 

and depth of its e-commerce lineup. CiaoWeb was launched on December 18, 1999. 

By March of this year, 115,000 subscribers were using its free Internet service, with 

400,000 page hits a day. CIAOHOLDING also coordinates investments in venture 

capital funds that specialize in e-commerce, and provides professional Internet services 

(Web Hosting, Web Design, Virtual Internet Service Provider). 

Fiat G.S.A. This company provides 

information technology support 

services in the development of software 

specifically designed for industrial, commercial, 

administrative and personnel management applications. 

It also coordinates and manages these 

activities in France, Germany, United Kingdom, Spain, 

Belgium, Poland, Argentina and Brazil. It has 701 

employees in Italy and 257 abroad. 

ITS provides information technology services 

(hardware management and maintenance) 

and data transmission systems. It has 725 

employees in Italy. It also coordinates and 

manages these activities in France, Germany, Spain, 

Poland and Brazil, where it has a total of 233 employees. 

Telexis’ corporate mission is to 

develop, produce and operate telecommunication 

services that encompass the supply 

of products and services for online communications, including Internet-related 

services. It has 256 employees in Italy. It also coordinates and manages activities 

in France, Spain, Poland and Brazil, where its overall staff totals 48 employees. 

Real Estate Services 

Ingest-Segim All services related to the regular maintenance of the 

Group’s real estate assets (office and residential buildings) are being 

concentrated in this recently established company. 

IPI This company, which is listed on the Stock Exchange, has traditionally 

engaged in the development and management of real estate assets, and 

the provision of related consulting services, for Fiat Group companies 

and external customers. It has 113 employees. 

Administrative and Financial Services 

Fiat Gesco All the administrative activities of the Group Sectors (accounting, financial reporting, 

taxation and management reporting) have been concentrated in this company, which employs 

1,931 people in Italy. It also coordinates and manages these activities in France, Germany, United Kingdom, 

Spain, Belgium, Poland, Argentina, Brazil and the United States, where it has a total of 1,277 employees. 

Fiat Ge.Va. This company provides centralized cash management services to Fiat Group 

companies and acts as a financial management consultant. It is present in all the major 

countries where the Group operates either directly or through its international cash management units. 

Fiat Ge.Va. S.p.A. has 204 employees. 

In 1999, Fiat Ge.Va. responded to the substantial financial commitments undertaken by the Group by 

mobilizing significant resources in the Eurobond market and through real estate and financial securitization 

transactions in Italy and abroad. 

Personnel Administration and Training Services 

Fiat Se.p.In This company specializes in personnel management, administration and selection, 

as well as in the development of human resources and the provision of health benefits and 

the management of business centers. It has 1,110 employees. 

Isvor Fiat provides personnel training and educational services to Group companies and 

external customers. It also supplies standard and customized products, and designs personnel 

training courses for the Group’s sales networks and its principal suppliers. It has 232 employees 

in Italy. It also coordinates and manages activities in Argentina, Brazil and India and operates 

professional centers in France, Germany, Spain, Great Britain and Poland. 

In providing its services, Isvor Fiat relies on the contribution of a staff of 160 instructors and more than 

900 consultants from 15 countries. 

46 Operating Sectors – Other Companies 47

48 

FIAT GROUP 

PRINCIPAL COMPANIES 

AUTOMOTIVE COMPANIES 

Automobiles Commercial Vehicles Agricultural and 

Construction Equipment 

Fiat Auto S.p.A. 

Italy 

FMA - Fabbrica Motori 

Automobilistici S.p.A. 

Italy 

SATA - Società Automobilistica 

Tecnologie Avanzate S.p.A. 

Italy 

Fiat Auto Argentina S.A. 


Fiat Auto Belgio S.A. 

Belgium 

Fiat Auto España, S.A. 

Spain 

Fiat Auto (France) S.A. 

France 

Fiat Auto Hellas S.A. 

Greece 

Fiat Auto (Ireland) Ltd. 

Ireland 

Fiat Auto Japan K.K. 

Japan 

Fiat Auto Maroc S.A. 

Morocco 

Fiat Auto Nederland B.V. 

Netherlands 

Fiat Auto Poland S.A. 

Poland 

Fiat Auto Portuguesa, S.A. 

Portugal 

Fiat Auto South Africa Pty. Ltd 

Republic of South Africa 

Fiat Sava S.p.A. 

Italy 

Fidis S.p.A. 

Italy 

Sava-Leasing S.p.A. 

Italy 

Savarent S.p.A. 

Italy 

Targa Services S.r.l. a S.U. 

Italy 

Banco Fiat S.A. 

Brazil 

Fiat Auto Contracts Ltd 

Great Britain 

Fiat Auto Financial Services Ltd 


Fiat Bank GmbH 

Germany 

Fiat Auto (Suisse) S.A. 

Switzerland 

Fiat Auto (U.K.) Ltd 


Fiat Automobil AG 

Germany 

Fiat Automobil GmbH 

Austria 

Fiat Automobiler Danmark A/S 

Denmark 

Fiat Automóveis S.A. - Fiasa 

Brazil 

Fiat CR Spol S.R.O. 

Czech Republic 

Fiat India Automobiles Limited 

India 

Fiat Magyarorszag KFT. 

Hungary 

Sevel S.p.A. (*) 

Italy 

Sevel Nord S.A. (*) 

France 

Tofas A.S. (*) 

Turkey 

Ferrari S.p.A. 

Italy 

Maserati S.p.A. 

Italy 

Fiat Bank Polska S.A. 

Poland 

Fiat Credit France S.A. 

France 

Fiat Credito Compania 

Financiera S.A. 


Fiat Credito Portugal S.A. 

Portugal 

Fiat Distribuidora Portugal Ltda 

Portugal 

Fiat Finance Netherlands B.V. 

Netherlands 

Fiat Financiera, S.A. 


Sofice - Société de Financement 

des Concessionnaires S.A. 

France 

Iveco N.V. 

Netherlands 

Astra Veicoli Industriali S.p.A. 

Italy 

Iveco Aifo S.p.A. 

Italy 

Iveco S.p.A. 

Italy 

Sicca S.p.A. 

Italy 

Camiva S.A. 

France 

International Trucks Australia Ltd. 

Australia 

Iveco Argentina S.A. 


Iveco Austria GmbH 

Austria 

Iveco Belgium S.A. N.V. 

Belgium 

Iveco Danmark A/S 

Denmark 

Iveco Ford Truck Ltd 


Iveco France S.A. 

France 

Iveco Magirus AG 

Germany 

Iveco Mercosul Ltda 

Brazil 

Iveco Pegaso, S.A. 


Iveco Portugal Ltda. 

Portugal 

Naveco Ltd (*) 

China 

Transolver Finance S.p.A 

Italy 

Transolver Service S.p.A. 

Italy 

Fraikin Société Anonyme 

France 

Transolver Finance S.A. 

France 

Transolver Financial Services Ltd 


Transolver Operational 

Services Ltd 


Transolver Services S.A. 

France 

CNH Global N.V. 

Netherlands 

Fiat Hitachi Excavators S.p.A. 

Italy 

New Holland Italia S.p.A. 

Italy 

Case Brasil & Cia. 

Brazil 

Case Canada Corporation 

Canada 

Case Corporation 

United States 

Case Corporation Pty Ltd 

Australia 

Case France S.A. 

France 

Case Germany GmbH 

Germany 

Case Harvesting Systems 

GmbH 

Germany 

Case United Kingdom Limited 


FiatAllis Latino Americana Ltda 

Brazil 

New Holland Australia Pty Ltd. 

Australia 

New Holland Belgium N.V. 

Belgium 

New Holland Canada Ltd 

Canada 

New Holland Deutschland 

GmbH 

Germany 

New Holland France S.A. 

France 

Case Canada Investments Ltd. 

Canada 

Case Credit Australia Pty Ltd 

Australia 

Case Credit Corporation 

United States 

Case Credit Ltd. 

Canada 

Case Receivables II Inc. 

United States 

Case Wholesale Receivables Inc. 

United States 

CNH Capital Corporation 

United States

New Holland Latino 

Americana Ltda 

Brazil 

New Holland North America Inc. 

United States 

New Holland U.K. Limited 


O&K Orenstein & Koppel AG 

Germany 

Al-Ghazi Tractors Limited (*) 

Pakistan 

Flexi-Coil Ltd (*) 

Canada 

New Holland de Mexico S.A. 

de C.V. (*) 

Mexico 

Türk Traktör Ve Ziraat 

Makineleri A.S. (*) 

Turkey 

New Holland Credit Company 

LLC 

United States 

New Holland Receivables Co. 

United States 

New Holland Trade N.V. 

Netherlands 

OTHER INDUSTRIAL COMPANIES 

Metallurgical Products Components Production Systems 

Teksid S.p.A. 

Italy 

Teksid For S.p.A. 

Italy 

Fonderies Aluminium Cleon S.A. 

France 

Fonderies du Poitou S.A. 

France 

Meridian Technologies Inc. 

Canada 

Société Bretonne de Fonderie 

et Mecanique S.A. 

France 

Teksid Aluminio 

de Mexico S.A. de C.V. 

Mexico 

Teksid Aluminum Foundry, Inc. 

United States 

Teksid do Brasil Ltda. 

Brazil 

Teksid, Inc. 

United States 

Teksid Poland S.A. 

Poland 

Teksid Hierro de Mexico S.A. (*) 

Mexico 

Magneti Marelli S.p.A. 

Italy 

Magneti Marelli 

Climatizzazione S.p.A. 

Italy 

Sistemi Sospensioni S.p.A. 

Italy 

Magneti Marelli Argentina S.A. 


Magneti Marelli Cofap S.A. 

Brazil 

Magneti Marelli Components B.V. 

Netherlands 

Magneti Marelli 

Deutschland GmbH 

Germany 

Magneti Marelli do Brasil 

Industria e Comercio Ltda. 

Brazil 

Magneti Marelli France S.A. 

France 

Magneti Marelli Iberica S.A. 


Magneti Marelli Mexico S.A. 

Mexico 

Magneti Marelli Poland S.A. 

Poland 

Magneti Marelli U.K. Ltd 


Magneti Marelli U.S.A. Inc. 

United States 

Automotive Litghting Holding 

GmbH (*) 

Austria 

Midas Europe S.A. M. 

Princ. of Monaco 

Viasat S.p.A. (*) 

Italy 

Comau S.p.A. 

Italy 

Geico S.p.A. 

Italy 

Italtech S.p.A. 

Italy 

U.T.S. S.p.A. 

Italy 

Aims Holdings (Pty) Ltd. 

Republic of South Africa 

Autodie International, Inc. 

United States 

Comau Argentina S.A. 


Comau Deutschland GmbH 

Germany 

Comau do Brasil Ind. e Com. Ltda 

Brazil 

Comau Estil UK Unlimited 


Comau France S.A. 

France 

Comau India Pvt. Ltd. 

India 

Comau Poland Sp. zo.o. 

Poland 

Comau Sciaky S.A. 

France 

Mecaner S.A. 


Pico Holdings Corporation 

United States 

Pico Mexico, Inc. 

United States 

Progressive Tools & Industries Co. 

United States 

Renault Automation Comau S.A. 

France 

Comau Service S.r.l. 

Italy 

Comau Service do Brasil Ltda. 

Brazil

Rolling Stock 

and Railway Systems 

Fiat Ferroviaria S.p.A. 

Italy 

Elettromeccanica Parizzi S.p.A. 

Italy 

Fiat Rail Ltd 


Fiat-Sig Schienenfahrzeuge AG 

Switzerland 

Aviation 

FiatAvio S.p.A. 

Italy 

Sepa S.p.A. 

Italy 

FiatAvio Inc. 

United States 

Regulus S.A. 

French Guyana 

Serene S.p.A. (*) 

Italy 

Sogetel S.p.A. (*) 

Italy 

Vegaspazio S.p.A. (*) 

Italy 

Eurojet Turbo GmbH (*) 

Germany 

Europropulsion S.A. (*) 

France 

Turbo-Union Ltd (*) 


Engine Overhaul activities carried out 

by FiatAvio S.p.A. 

SERVICE COMPANIES 

Insurance Publishing and Communications Miscellaneous and 

Holding Companies 

Toro Assicurazioni S.p.A. 

Italy 

D.A.S. - Difesa Automobilistica 

Sinistri S.p.A. 

Italy 

Giano Assicurazioni S.p.A. 

Italy 

Iniziative Sviluppo Immobiliare - 

Isim S.p.A. 

Italy 

Nuova Tirrena S.p.A. 

Italy 

Roma Vita S.p.A. 

Italy 

Toro Targa Assicurazioni S.p.A. 

Italy 

Companhia de Seguros 

Maritimos e Terrestres Phenix 

Brazil 

Continent Assistance S.A. 

France 

Guardian France S.A. 

France 

Guardian Risques S.A. 

France 

Guardian Vie S.A. 

France 

Le Continent I.A.R.D. S.A. 

France 

Le Continent Vie S.A. 

France 

L’Union Générale du Nord S.A. 

France 

Augusta Assicurazioni S.p.A. 

Italy 

Prime Augusta Vita S.p.A. 

Italy (*) 

Itedi - Italiana Edizioni S.p.A. 

Italy 

B. & B. Immobiliare S.p.A. 

Italy 

Editrice La Stampa S.p.A. 

Italy 

Publikompass S.p.A. 

Italy 

Other Service Companies 

Centro Ricerche Fiat 

Società Consortile per Azioni 

Italy 

Elasis - Sistema Ricerca 

FIAT nel Mezzogiorno - 

Società Consortile per Azioni 

Italy 

Fenice S.p.A. 

Italy 

Fiat Ges.co. S.c.p.A. 

Italy 

Fiat GE.VA. S.p.A. 

Italy 

Fiat G.S.A. S.r.l. 

Italy 

Isvor Fiat S.p.A. 

Italy 

ITS S.r.l. 

Italy 

Telexis S.r.l. 

Italy 

Fiat Engineering S.p.A. 

Italy 

IPI S.p.A. 

Italy 

Sicind S.p.A. 

Italy 

Fiat Argentina S.A. 


Fiat Deutschland GmbH 

Germany 

Fiat do Brasil S.A. 

Brazil 

Fiat France S.A. 

France 

Fiat Iberica, S.A. 


Fiat United Kingdom Ltd 


Fiat U.S.A., Inc. 

United States 

I.H.F. - Internazionale Holding 

Fiat S.A. 

Switzerland 

New Holland Holdings N.V. 

Netherlands 

(*) Affiliated Company

The Fiat Group in 1999 

Operating Sectors 

Published by: 

Fiat Information & Communication Services 

Editorial Coordination: 

Micrograf – Turin, Italy 

Design by: 

Fantinel & Associati – Turin, Italy 

On the cover: 

Oil on canvas, 100x25 cm 

by Roberto Bergonzo – Turin, Italy 

Printed by: Puntografico – Brescia, Italy 

Printed in Italy 

June 2000 

01UK

Operating Sectors The Fiat Group in 1999 - Fiat SpA

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