The Fiat Group in 1999 - Report on Operations - Fiat SpA

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model of which 3.3 million units have been produced s<strong>in</strong>ce
its <strong>in</strong>troduction <strong>in</strong> 1993. Important <strong>in</strong>novations concern<strong>in</strong>g
the Lancia brand <strong>in</strong>cluded the launch of the Lybra, a model
designed to provide outstand<strong>in</strong>g ride comfort. Alfa Romeo
also expanded its range by offer<strong>in</strong>g a 145 and a 146 powered
by a JTD direct-<strong>in</strong>jection turbodiesel eng<strong>in</strong>e, and a new
version of the 156. This model, which is called 2.0
Selespeed, is the first <strong>in</strong>termediate car equipped with
a sequential gearbox with steer<strong>in</strong>g-wheel controls.
<strong>The</strong> most important event of <strong>1999</strong> <strong>in</strong> the field of technological
<strong>in</strong>novation was the <strong>in</strong>troduction of the Ecobasic. This concept
vehicle, which will be used to develop the compact car of the
future, features a wealth of <strong>in</strong>novative solutions that will f<strong>in</strong>d
concrete applications <strong>in</strong> the very near future.
Other noteworthy products <strong>in</strong>clude Ecodriver, an <strong>in</strong>novative
propulsion system that offers fuel sav<strong>in</strong>gs of about 30%,
and Multijet, an evolution of the JTD system that comb<strong>in</strong>es a
reduction of 30% to 40% <strong>in</strong> emissions with a 7% improvement
<strong>in</strong> performance.
In addition, the Sector completed the development of the
<strong>Fiat</strong> Multipla Hybrid Power, a car that embodies lead<strong>in</strong>g edge
technology <strong>in</strong> the field of vehicles with m<strong>in</strong>imum environmental
impact.
GROWTH STRATEGIES
Dur<strong>in</strong>g <strong>1999</strong>, <strong>Fiat</strong> Auto cont<strong>in</strong>ued to pursue the globalization
of its activities. In particular:
❚ In Ch<strong>in</strong>a, it acquired the <strong>in</strong>terest held by Lion, a Malaysian
group, <strong>in</strong> a jo<strong>in</strong>t venture with the Yuej<strong>in</strong> Motor Company.
It then established Jiangsu Nanya Auto, which has been
licensed to manufacture passenger vehicles.
❚ In Egypt, it established <strong>Fiat</strong> Auto Egypt Industrial with the
Seoudy <strong>Group</strong>. This jo<strong>in</strong>t venture, <strong>in</strong> which the Sector holds
a 51% <strong>in</strong>terest, will manufacture and distribute world car
models.
❚ In India, it launched the Siena, which jo<strong>in</strong>ed the Uno <strong>in</strong>
the local product l<strong>in</strong>e.
❚ In Turkey, where the market has become extremely
competitive, the Palio posted gratify<strong>in</strong>g results. Production
of the Brava and Marea started a few months ago.
❚ In Russia, the Sector’s <strong>in</strong>vestment programs have been
delayed by the cont<strong>in</strong>uation of the economic crisis.
<strong>The</strong> consolidated capital expenditures of the Automobile Sector
totaled 1,464 million euros (1,373 million euros <strong>in</strong> 1998). <strong>The</strong>y
were earmarked primarily for strategic product <strong>in</strong>vestments.
Research and development outlays amounted to 711 million
euros <strong>in</strong> <strong>1999</strong>, up from 608 million euros the year before.