2006 Annual Report - Fiat SpA

In the second quarter of 2006, a letter of intent was signed
by Iveco and the Spanish company Santana. It defines the
general principles for cooperation on product development
and a long-term commercial policy. This involves study of
solutions in the field of light-range 4-wheel drive vehicles.
Innovation and Products
2006 was characterised by resurgent activity in the sector
of innovative active and passive safety systems. In particular,
the “Safety Truck” project (for a concept vehicle focusing on
safety) launched a series of integrated technical solutions that,
by streamlining the use of sensors and technologies with
different origins, enabled a leap in technology quality in this
field.
In the field of advanced materials, research projects were
undertaken to provide a competitive response to applications
in the vehicles sector (cabin, frame, power generation and
transmission).
Studies were carried out on the structure of the vehicle, for
application of materials that can offer significant benefits (in
terms of weight, cost, and passive safety), such as high and
ultra-high resistant steel, light alloys for moving parts, and
structural components. In regard to the interior and exterior
of the cabin, studies and assessments were performed on the
use of structural and decorative plastics, multifunctional glass,
and acoustically insulated materials.
In the kinematics chain field, studies continued on the use
of new lubricants and systems for monitoring their wear
and tear.
Innovation also involved prototypes of low-emission light
commercial vehicles with diesel and methane internal
combustion engines.
Iveco continued restyling of its product range in 2006.
The New Daily Euro 4 was introduced in May 2006, in the van,
cabin, and minibus versions, all with Euro 4 compliant
engines. Presented with the slogan “Professional DNA”,
72 Report on Operations Iveco
the New Daily is confirming its position as the most solid
and reliable vehicle in the segment. It can be equipped
with a stability control system, a cutting-edge electrical
and electronic system. The vehicle has been a great success.
At December 31, 2006, about 50,000 orders had been received
throughout Europe.
At the 61 st Hanover 2006 Motor Show, Iveco showcased
the Stralis, Trakker, Eurocargo, and New Daily vehicles,
and presented the Astra ADT30 dumper for extremely heavy
quarry activities, the Superdragon x8 airport fire-fighting
vehicle, the Iveco Magirus fire appliance ladder, the Citelis
urban transport bus, and the New Domino people carrier.
It also presented a prototype heavy vehicle comprised by
a semi-tractor trailer rig on a Stralis AS base.
At the AUTOTEC Motor Show held in Brno, Czech Republic,
Irisbus presented the new Crossway bus, which is available
in three lengths and with two different powertrains (Tector
and Cursor Euro 4). The new rigid structure of the Crossway
enables it to comply fully with the ECE R66 passenger safety
regulation.
Services
Iveco Customer Service reported an increase in activities
connected with the increase in circulating vehicles and in
the number of trips annually by vehicle as well as the success
of the customer loyalty program.
The Iveco Customer Centre confirmed its performance in the
area of 24-hour assistance, assuring high standards of service
for response times to customers. It also consolidated
its supply of direct marketing services and upgraded
management of customer relations, using the Web as
a supplementary channel for contact.
In 2006, the logistical structures for distribution of bus spare
parts were integrated with commercial vehicle spare parts,
unifying operations and infrastructure in Italy, Spain, and
Germany (after France in 2005). The basis was also laid for
improving the distribution service in Central and Eastern
Europe, by identifying further opportunities for synergy
and development with the Iveco Cekia logistic centre.
In order to handle increasingly complex repair requirements,
due to the increasing use of electronic components on
vehicles, Iveco Technical Assistance worked on three key
factors in 2006: a) powerful but easy to use diagnostic
instruments, b) adequate dealer network skills, c) roadside
assistance coverage on international routes for heavy vehicles
and increased coverage for light vehicles.
After the 2005 agreement with Barclays Mercantile Business
Finance Ltd, the financial services activities for Iveco products
in France, Germany, Italy, Switzerland, and the United
Kingdom were managed by the associated company Iveco
Finance Holdings Limited, in which Iveco holds a 49% interest.
Including the activity of this associated company, the number
of vehicles financed rose from 34,700 in 2005 to 35,800 in
2006, with a penetration of 23.4%, largely unchanged from
the previous year.
Report on Operations Iveco 73