THE FIAT GROUP IN - Fiat SpA

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THE FIAT GROUP IN - Fiat SpA

THE FIAT GROUP IN

2001

Consolidated

and Statutory

Financial Statements

BALANCE SHEETS,

STATEMENTS

OF OPERATIONS

AND NOTES


Contents

1 Fiat Group – Consolidated Financial

Statements at December 31, 2001

2 Consolidated Balance Sheet

7 Consolidated Statement of Operations

9 Notes to the Consolidated Financial Statements

47 Fiat S.p.A. – Financial Statements at December 31, 2001

48 Balance Sheet

51 Statement of Operations

53 Notes to the Financial Statements

87 Annex to the Notes to the Consolidated Financial Statements

88 The Companies of the Fiat Group

123 Auditors’ Report on the Consolidated Financial Statements

124 Auditors’ Report on the Financial Statements of Fiat S.p.A.

126 Reports of the Board of Statutory Auditors

The 2001 Annual Report of the Fiat Group is available on the Internet

at the following addresses: www.fiatgroup.com www.bilanciofiat.com

The online version of the Annual Report contains additional and

more detailed information, including data sheets, which may be

downloaded in pdf or excel format.


Financial Highlights of the Fiat Group

(in millions of euros) 2001 2000 1999 1998 1997

Operating income 318 855 788 746 1,791

Income (loss) before taxes (497) 1,050 1,024 1,442 2,160

EBIT 528 2,073 1,482 1,321 2,103

EBITDA 3.408 5,125 3,836 3,631 4,737

Income (loss) before minority interest (791) 578 506 916 1,550

Group net income (loss) (445) 664 353 621 1,248

Net financial position (Net debt)

Stockholders’ equity

(6,035) (6,467) (4,031) 1,420 1,340

including minority interest 13,607 15,209 14,767 15,120 15,462

Group interest in stockholders’ equity 12,170 13,320 12,874 12,998 13,203

Cash flow (income before minority interest

plus depreciation and amortization) 2,089 3,630 2,860 3,226 4,184

Capital expenditures 3,438 3,236 2,712 2,418 2,398

Research and development 1,817 1,725 1,406 1,264 1,166

Operating income from industrial

activities/Net revenues (R.O.S.)

Operating income/Average net

0.4% 1.7% 1.9% 2.2% 4.4%

invested capital (R.O.I.)

Income (loss) before minority

1.5% 4.2% 4.8% 5.4% 12.2%

interest/Net revenues

Net income (loss)/Average stockholders’

(1.4%) 1.0% 1.1% 2.0% 3.4%

equity (after minority interest) (R.O.E.) (3.5%) 5.1% 2.7% 4.7% 9.9%

Statistical data by geographical region

number Companies Employees Facilities R&D centers

Italy 275 95,199 68 71

Europe excluding Italy 443 53,620 74 37

North America 137 14,465 32 11

Mercosur 71 25,280 18 8

Other regions 133 10,200 35 4

Total 1,059 198,764 227 131

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”

and therefore the Consolidated Financial Statements and Statutory Financial

Statements of Fiat S.p.A. are denominated in euros.

CONSOLIDATED REVENUES

in millions of euros

46,257

1997

NET INVESTED CAPITAL

in millions of euros

14,122

1997

NUMBER OF EMPLOYEES

242,322

1997

45,769

1998

13,700

1998

220,549

1998

48,123

1999 2000 2001

18,798

1999 2000 2001

221,319

57,555

21,676

223,953

58,006

19,642

198,764

1999 2000 2001


Fiat Group CONSOLIDATED FINANCIAL STATEMENTS

at December 31, 2001

Fiat S.p.A.

Head Office: 250 Via Nizza, Turin, Italy

Paid-in Capital: 3,082,128,000 euros

Entered in the Turin Company Register

Fiscal Code: 00469580013

1

1


2

2

Consolidated Balance Sheet

❚ ASSETS

(in millions of euros) December 31, 2001 December 31, 2000

AMOUNTS DUE FROM STOCKHOLDERS FOR

SHARES SUBSCRIBED BUT NOT CALLED 1 1

FIXED ASSETS

Intangible fixed assets (note 1)

Start-up and expansion costs 67 109

Research, development and advertising expenses 10 23

Industrial patents and intellectual property rights 453 561

Concessions, licenses, trademarks and similar rights 491 482

Goodwill 375 386

Intangible assets in progress and advances 243 63

Other intangible assets 364 268

Differences on consolidation 4,532 4,565

Total 6,535 6,457

Property, plant and equipment (note 2)

Land and buildings 4,403 4,891

Plant and machinery 4,402 6,264

Industrial and commercial equipment 1,644 1,823

Other assets 2,210 2,547

Construction in progress and advances 1,228 1,152

Total 13,887 16,677

Financial fixed assets (note 3)

Investments in:

unconsolidated subsidiaries 634 758

associated companies 3,958 1,778

other companies 4,792 4,764

Total Investments 9,384 7,300

Receivables from:

unconsolidated subsidiaries:

due within one year – 3

Total Receivables from unconsolidated subsidiaries – 3

others:

due within one year 33 78

due beyond one year 22 33

Total Receivables from others 55 111

Total Receivables 55 114

Other securities 5,918 5,073

Treasury stock 245 23

Assets leased 3,367 4,150

Total 18,969 16,660

TOTAL FIXED ASSETS 39,391 39,794

CURRENT ASSETS

Inventories (note 4)

Raw materials and supplies 1,485 1,477

Work in progress and semifinished products 1,206 1,297

Contract work in progress 5,240 4,796

Finished goods and merchandise 5,055 4,921

Advances to suppliers 2,524 1,888

Total 15,510 14,379


Consolidated Balance Sheet

(in millions of euros) December 31, 2001 December 31, 2000

CURRENT ASSETS (continued)

Receivables (note 5)

Trade receivables:

due within one year 5,611 6,443

due beyond one year 118 89

Total Trade receivables 5,729 6,532

Receivables from unconsolidated subsidiaries:

due within one year 35 44

Total Receivables from unconsolidated subsidiaries 35 44

Receivables from associated companies:

due within one year 706 170

Total Receivables from associated companies 706 170

Other receivables:

due within one year 3,318 3,451

due beyond one year 2,873 2,261

Total Other receivables 6,191 5,712

Total 12,661 12,458

Financial assets not held as fixed assets (note 6)

Investments

in other companies 1,976 1,098

Total Investments 1,976 1,098

Other securities 6,427 4,918

Treasury stock 37 27

Financial receivables

Receivables from unconsolidated subsidiaries:

due within one year 237 78

due beyond one year 177 116

Total Financial receivables from unconsolidated subsidiaries 414 194

Receivables from associated companies:

due within one year 340 392

due beyond one year 129 8

Total Financial receivables from associated companies 469 400

Receivables from others:

due within one year 12,026 9,363

due beyond one year 8,354 9,838

Total Financial receivables from others 20,380 19,201

Total Financial receivables 21,263 19,795

Total 29,703 25,838

Cash (note 7)

Bank and post office accounts 2,091 1,964

Checks 17 4

Cash on hand 25 29

Total 2,133 1,997

TOTAL CURRENT ASSETS 60,007 54,672

ACCRUED INCOME AND PREPAID EXPENSES (note 8)

Issue discounts – 42

Other accrued income and prepaid expenses 1,350 1,246

TOTAL ACCRUED INCOME AND PREPAID EXPENSES 1,350 1,288

❚ TOTAL ASSETS 100,749 95,755

Consolidated Financial Statements at December 31, 2001

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3


4

4

Consolidated Balance Sheet

❚ LIABILITIES AND STOCKHOLDERS’ EQUITY

(in millions of euros) December 31, 2001 December 31, 2000

STOCKHOLDERS’ EQUITY (note 9)

Stockholders’ equity of the Group

Capital stock 2,753 2,753

Additional paid-in capital 1,636 1,636

Legal reserve 659 659

Treasury stock valuation reserve 282 50

Retained earnings and other reserves 7,285 7,558

Net income/(loss) (445) 664

Total 12,170 13,320

Minority interest 1,437 1,889

TOTAL STOCKHOLDERS’ EQUITY 13,607 15,209

RESERVES FOR RISKS AND CHARGES (note 10)

Reserve for pensions and similar obligations 1,465 1,515

Income tax reserves 1,608 1,176

Other reserves 3,798 4,577

Consolidation reserve for future risks and charges – 32

Insurance policy liabilities and accruals 15,802 12,616

TOTAL RESERVES FOR RISKS AND CHARGES 22,673 19,916

RESERVE FOR EMPLOYEE SEVERANCE INDEMNITIES (note 11) 1,735 2,017

PAYABLES (note 12)

Bonds:

due within one year 2,118 2,489

due beyond one year 11,290 8,600

Total Bonds 13,408 11,089

Borrowings from banks:

due within one year 7,701 8,380

due beyond one year 5,910 5,214

Total Borrowings from banks 13,611 13,594

Other financial payables:

due within one year 1,172 1,731

due beyond one year 466 786

Total Other financial payables 1,638 2,517

Advances:

due within one year 3,978 3,411

due beyond one year 4,078 3,332

Total Advances 8,056 6,743

Trade payables:

due within one year 12,112 11,066

due beyond one year 250 118

Total Trade payables 12,362 11,184

Notes payable:

due within one year 3,298 4,500

due beyond one year 626 672

Total Notes payable 3,924 5,172

Payables to unconsolidated subsidiaries:

due within one year 96 61

Total Payables to unconsolidated subsidiaries 96 61


Consolidated Balance Sheet

(in millions of euros) December 31, 2001 December 31, 2000

PAYABLES (continued)

Payables to associated companies:

due within one year 1,803 683

Total Payables to associated companies 1,803 683

Taxes payable:

due within one year 1,178 1,593

due beyond one year 58 63

Total Taxes payable 1,236 1,656

Social security payable:

due within one year 331 364

due beyond one year 2 2

Total Social security payable 333 366

Other payables:

due within one year 1,653 1,488

due beyond one year 261 225

Total Other payables 1,914 1,713

TOTAL PAYABLES 58,381 54,778

ACCRUED EXPENSES AND DEFERRED INCOME (note 13)

Other accrued expenses and deferred income 4,353 3,835

TOTAL ACCRUED EXPENSES AND DEFERRED INCOME 4,353 3,835

❚ TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 100,749 95,755

Consolidated Financial Statements at December 31, 2001

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5


6

6

Consolidated Balance Sheet

❚ MEMORANDUM ACCOUNTS (note 14)

(in millions of euros) December 31, 2001 December 31, 2000

GUARANTEES GRANTED

Unsecured guarantees

Suretyships

on behalf of unconsolidated subsidiaries 26 30

on behalf of associated companies 29 72

on behalf of others 1,397 1,404

Total Suretyships 1,452 1,506

Guarantees of notes

on behalf of others 229 161

Total Guarantees of notes 229 161

Other unsecured guarantees

on behalf of unconsolidated subsidiaries 22 –

on behalf of associated companies 508 427

on behalf of others 2,939 2,164

Total Other unsecured guarantees 3,469 2,591

Total Unsecured guarantees 5,150 4,258

Secured guarantees

on behalf of unconsolidated subsidiaries – 56

on behalf of others 471 342

Total Secured guarantees 471 398

TOTAL GUARANTEES GRANTED 5,621 4,656

COMMITMENTS

Commitments related to derivative financial instruments 53,171 34,548

Commitments to purchase property, plant and equipment 710 1,132

Commitments for contracts in progress 194 87

Other commitments 5,328 4,789

TOTAL COMMITMENTS 59,403 40,556

THIRD-PARTY ASSETS HELD BY THE GROUP 2,036 1,372

GROUP ASSETS HELD BY THIRD PARTIES 19,372 13,179

OTHER MEMORANDUM ACCOUNTS 309 653

❚ TOTAL MEMORANDUM ACCOUNTS 86,741 60,416


Consolidated Statement of Operations

(in millions of euros) 2001 2000 1999

VALUE OF PRODUCTION (note 15)

Revenues from sales and services

Change in work in progress, semifinished

57,575 57,603 48,402

and finished products inventories 7 27 275

Change in contract work in progress 431 (48) (279)

Additions to internally produced fixed assets 1,069 1,242 1,107

Other income and revenues:

revenue grants 79 43 33

other 2,166 2,376 1,806

Total Other income and revenues 2,245 2,419 1,839

TOTAL VALUE OF PRODUCTION 61,327 61,243 51,344

COSTS OF PRODUCTION (note 16)

Raw materials, supplies and merchandise 31,255 31,134 25,720

Services 9,835 9,042 7,893

Leases and rentals 487 409 299

Personnel:

salaries and wages 5,862 6,140 5,430

social security contributions 1,551 1,710 1,630

employee severance indemnities 315 353 333

employee pensions and similar obligations 122 139 59

other costs 319 353 196

Total Personnel costs 8,169 8,695 7,648

Amortization, depreciation and writedowns:

amortization of intangible fixed assets 593 519 280

depreciation of property, plant and equipment 2,287 2,533 2,074

writedown of fixed assets 8 1 5

writedown of receivables among

current assets and liquid funds 538 475 244

Total Amortization, depreciation and writedowns

Change in raw materials, supplies

3,426 3,528 2,603

and merchandise inventories (110) 63 (64)

Provisions for risks 1,038 1,047 854

Other provisions 6 7 8

Other operating costs 1,309 1,458 1,265

Expenses of financial services companies 904 983 694

Insurance claims and other insurance costs 4,690 4,022 3,636

TOTAL COSTS OF PRODUCTION

DIFFERENCE BETWEEN THE

61,009 60,388 50,556

VALUE AND COSTS OF PRODUCTION 318 855 788

FINANCIAL INCOME AND EXPENSES (note 17)

Investment income:

unconsolidated subsidiaries 79 82 110

associated companies 1 6 22

other companies 184 290 157

Total Investment income 264 378 289

Other financial income

from long-term receivables:

from others

from securities held as fixed assets

2 5 6

other than equity investments

from securities held as current assets

253 203 86

other than equity investments 301 96 162

Consolidated Financial Statements at December 31, 2001

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Consolidated Statement of Operations

(in millions of euros) 2001 2000 1999

FINANCIAL INCOME AND EXPENSES (continued)

Other financial income (continued)

Other income from:

unconsolidated subsidiaries 11 22 12

associated companies 22 17 6

others 1,599 1,312 1,598

Total Other income 1,632 1,351 1,616

Total Other financial income 2,188 1,655 1,870

Interest and other financial expenses:

unconsolidated subsidiaries 3 5 7

associated companies 10 14 6

others 3,119 2,631 2,247

Total Interest and other financial expenses 3,132 2,650 2,260

TOTAL FINANCIAL INCOME AND EXPENSES (680) (617) (101)

ADJUSTMENTS TO FINANCIAL ASSETS (note 18)

Revaluations of:

equity investments 204 206 183

financial fixed assets other than equity investments 38 41 51

securities among current assets other than equity investments 12 6 1

Total Revaluations 254 253 235

Writedowns:

equity investments 577 280 111

financial fixed assets other than equity investments 128 43 74

securities among current assets other than equity investments 28 25 37

financial receivables 15 7 9

Total Writedowns 748 355 231

TOTAL ADJUSTMENTS TO FINANCIAL ASSETS (494) (102) 4

EXTRAORDINARY INCOME AND EXPENSES (note 19)

Income:

gains on disposals 1,515 2,524 382

other income 130 233 172

Total Income 1,645 2,757 554

Expenses:

losses on disposals 56 30 14

taxes relating to prior years 18 5 9

other expenses 1,212 1,808 198

Total Expenses 1,286 1,843 221

TOTAL EXTRAORDINARY INCOME AND EXPENSES 359 914 333

INCOME (LOSS) BEFORE TAXES (497) 1,050 1,024

Income taxes (note 20) 294 472 518

(LOSS) INCOME BEFORE MINORITY INTEREST (791) 578 506

Minority interest 346 86 (153)

NET INCOME (LOSS) (445) 664 353


Notes to the Consolidated Financial Statements

at December 31, 2001

FORM AND CONTENT OF THE CONSOLIDATED

FINANCIAL STATEMENTS

The 2001 consolidated financial statements have been

prepared in accordance with the rules contained in Italian

Legislative Decree No. 127 dated April 9, 1991, which fulfilled

the Fourth and Seventh EC Directives. The significant events

which occurred after the end of the fiscal year described in

the Report of Operations are an integral part of the notes to

the consolidated financial statements.

The consolidated financial statements include the financial

statements of Fiat S.p.A., the Parent Company, and of all

Italian and foreign subsidiaries that constitute the Fiat Group,

in which Fiat S.p.A. holds directly or indirectly more than

50% of the voting capital and/or has de facto control over

operations. The companies in which the Parent Company

holds control, directly or indirectly with other partners, are

normally accounted for using the equity method. The same

is true for the associated companies in which the Group

exercises a significant influence.

Certain non relevant activities, which total less than 0.6%

in 2001 (0.5% in 2000 and 0.4% in 1999) of total

consolidated revenues and for which it is not practicable to

obtain the necessary information on a timely basis without

disproportionate expense, have been excluded from

consolidation. This exclusion does not affect the assertion

that the consolidated financial statements are a true and

correct representation of the financial position and results

of operations of the Group. Furthermore, BUC – Banca Unione

di Credito, as allowed by law, has been excluded from the

scope of consolidation inasmuch as it has non-homogeneous

operations. Finally, with reference to the consolidated financial

statements as of December 31, 1999, the Case Group,

purchased in November 1999, had not been consolidated as

it would not have been practicable to obtain the necessary

information on a timely basis without disproportionate

expense.

The composition of the Fiat Group underwent several changes

in 2001 that are discussed in detail in the Report on Operations.

Here in the notes, only the changes having certain distinctive

characteristics are described.

With regard to information on the balance sheet and the

statement of operations presented by business sector,

in these financial statements the Automobile Sector is

represented by the consolidated data of Fiat Auto Holdings

B.V., set up in July 2000 after the corporate reorganization

of the Automobile Sector following the strategic alliance with

General Motors. As regards the comparative data for the

years 1999 and 2000, up until the end of the first half of 2000

the economic and balance sheet data of this Sector were

represented by the data of the sub-holding company Fiat Auto

S.p.A. (now Fiat Auto Partecipazioni S.p.A.) and, afterwards,

by the new legal group led by Fiat Auto Holdings B.V.

Nevertheless, such changes in the corporate structure had

no significant effect on the comparability and uniformity of the

economic and balance sheet data presented for the three

years.

Again with reference to the Automobile Sector, effective

June 30, 2001, the businesses for the production of engines,

transmissions and gearboxes located in Italy, Poland and

Brazil were conferred to the 50-50 Fiat-GM Powertrain joint

venture set up under the above-mentioned strategic alliance.

The economic and balance sheet data referring to the

companies sold were deconsolidated from that date and the

investment in the joint venture was accounted for using the

equity method.

Lastly, since July 2001, the Fiat Group holds a 38.6%

investment in Italenergia S.p.A., a company that during the

third quarter of the year gradually took over the Montedison

Group. In these financial statements, the equity investment

in Italenergia is stated on the equity method, on the basis of

the consolidated accounting situation of the new Italenergia

Group, in which the Montedison sub-group is consolidated

line-by-line beginning from September 30, 2001, in essence

the date on which the operating control was effectively

assumed.

PRINCIPLES OF CONSOLIDATION AND SIGNIFICANT

ACCOUNTING POLICIES

The consolidated financial statements have been prepared

from the statutory financial statements of the Group’s single

companies or consolidated Sectors approved by the Boards

of Directors and adjusted, where necessary, by the directors

of the companies to conform with Group accounting principles

and to eliminate tax-driven adjustments. The Group’s

accounting principles respect the requirements set forth by

Legislative Decree No. 127 of April 9, 1991, interpreted and

supplemented by the Italian accounting principles issued by

the National Boards of Dottori Commercialisti and of Ragionieri

and, where there are none and not at variance, by those laid

down by the International Accounting Standards Board

(I.A.S.B.).

In order to obtain a true and correct representation of the

financial position and results of operations of the Group,

taking into account their functional integration, the financial

companies that provide services to the industrial Sectors, and

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements

9

9


10

10

the subsidiaries operating in the insurance sector have been

consolidated on a line-by-line basis. As a result, adjustments

to the balance sheet and statement of operations format

have been made in applying Article 32 of Legislative Decree

No. 127/91, which provides for changes to be made to obtain

a more clear, true and correct representation of the financial

position and results of operations.

Principles of consolidation

Assets and liabilities, and revenues and expenses, of

subsidiaries consolidated on a line-by-line basis are included

in the consolidated financial statements, regardless of the

percentage of ownership. Carrying values of investments

are eliminated against the subsidiaries’ related stockholders’

equity. The portion of stockholders’ equity and results of

operations attributed to minority interests are disclosed separately.

Differences arising from the elimination of investments

(since 1994) against the related stockholders’ equity of the

investment at the date of acquisition are allocated to the

assets and liabilities of the company being consolidated, up

to the limit of their current value. The residual value, if positive,

is capitalized as an asset “Differences on consolidation”, and

is amortized on the straight-line method over the estimated

period of recoverability. Negative residual amounts are

recorded as a component of stockholders’ equity “Consolidation

reserve” (or as a liability “Consolidation reserve for future risks

and charges”, when due to a forecast of unfavorable

economic results).

Unrealized intercompany profits and losses are eliminated

net of related tax effects, together with all intercompany

receivables, payables, revenues and expenses arising on

transactions between consolidated companies which have

not been realized with third parties. Exceptions are the gross

margins on intercompany sales of plant and equipment

produced and sold at prices in line with market conditions,

in which case such eliminations would be effectively irrelevant

and not cost-beneficial.

Also subject to elimination are guarantees, commitments and

risks relating to companies included in the area of consolidation.

The balance sheets of foreign subsidiaries are translated into

Euros by applying the exchange rates in effect at year end. The

statements of operations of foreign subsidiaries are translated

using the average exchange rates. In the financial statements

of subsidiaries operating in high-inflation countries (cumulative

inflation in excess of 100% in three years), accounting

principles for hyperinflationary economies are used.

Exchange differences resulting from the translation of opening

stockholders’ equity at current exchange rates and at the

exchange rates used at the end of the previous year, as well

as differences between net income expressed at average

exchange rates and that expressed at current exchange rates,

are reflected in the stockholders’ equity caption “Cumulative

translation adjustments”. Such reserves relating to investments

in subsidiaries or associated companies are included in the

statement of operations upon the sale of the investments to

third parties.

As a result of the crisis which arose in Argentina at the end

of 2001, the Fiat Group decided, with regard to the financial

statements of the Argentine subsidiaries, to follow United

States accounting principles, the conclusions of which are

also considered valid for purposes of the accounting principles

of the Group.

Therefore, the first exchange rate prevailing at the date the

currency markets were reopened in the country, subsequent

to the balance sheet date (floating rate of 1.67 Argentine

pesos against 1 US dollar or, where applicable, the official

exchange rate of 1.40 Argentine pesos against 1 US dollar)

were used for the conversion of the foreign currency balances

in the financial statements prepared by the Argentine

subsidiaries for purposes of consolidation by Fiat and also

for the conversion of such financial statements. A prudent

approach was taken for the conversion and settlement in

pesos of the receivables originally recorded in US dollars

in the financial statements of the Argentine subsidiaries.

The exchange rates used are summarized in Note 23.

Accounting principles

Balance sheet

Fixed assets

Intangible fixed assets

Intangible assets and deferred charges expected to benefit

future periods are recorded at cost, adjusted by amortization

calculated on a straight-line basis over the period to be

benefited. In particular, goodwill and differences on consolidation

are amortized over a period of not more than 20 years, taking

into account their expected period of recovery. In general, the

Group periodically and critically ascertains that the carrying

value of such assets is not higher than the estimated recovery

value, in relation to their use or realization, as determined by

reference to the most recent corporate plans.

The costs of researching and developing new products and/or

processes are mainly included in the results of operations in


the period in which such costs are incurred in line with the

principle of conservatism and with international practice in

the automobile sector.

Goodwill represents the contractual amount paid for goodwill

resulting from the acquisition of a company or investment.

Property, plant and equipment

Property, plant and equipment are recorded at purchase or

construction cost. These values are adjusted where specific

laws of the country in which the assets are located allow or

require revaluation, in order to reflect, even if only partially,

changes in the purchasing power of the currency. Cost also

includes financing expenses incurred during the construction

period for specific loans, where significant.

Depreciation is provided on a straight-line basis at rates

that reflect the estimated useful life of the related assets.

When, at the balance sheet date, property, plant and equipment

show a permanent impairment in value to below their carrying

value, such assets are written down to the lower value,

according to the method indicated above for intangible assets.

Ordinary repairs and maintenance expenses related to

property, plant and equipment are charged to the statement

of operations in the year in which they are incurred, while

maintenance expenses which increase the value of property,

plant and equipment are capitalized.

Capital investment grants related to investments in property,

plant and equipment are recorded as deferred income when

collection becomes certain and credited to income over the

useful life of the related asset.

Properties held by insurance companies to cover policy

liabilities and accruals are stated at acquisition cost and

adjusted by the compulsory law on revaluations imposed

on Italian companies; however, the carrying amounts do

not exceed market value. Depreciation is determined based

on the useful life and expected remaining value.

The revaluation of assets allowed by Law No. 342/2000,

having been effected by only a very few Italian companies

of the Group, was reversed in the consolidated financial

statements, for purposes of giving preference to the uniformity

and comparability of the accounting principles over time.

Financial fixed assets

Financial fixed assets include investments in unconsolidated

subsidiaries, associated companies and other companies,

financial receivables held for investment purposes, treasury

stock and other securities.

Investments in unconsolidated subsidiaries, in companies

in which Fiat exercises joint control with other partners and

associated companies (those in which Fiat exercises, directly

or indirectly, a significant influence) are normally accounted

for using the equity method.

Investments in other companies are valued at cost. In the

event of a permanent impairment in value, a specific allowance

is provided as a direct reduction of the asset account.

Financial receivables are recorded at estimated realizable value.

Securities are recorded at cost, including additional direct

charges. In the event of permanent impairment, a valuation

allowance is provided as a direct reduction of the securities.

However, securities held by the insurance companies as

investments for the benefit of those insured under life

insurance policies to support risks (related to index-linked and

unit-linked policies) and as investments in the management of

pension funds, are valued at market price, as set forth by the

specific laws governing the insurance sector in Italy.

Treasury stock, represented by Fiat S.p.A. shares held by

some subsidiaries, is valued at purchase cost. A specific

reserve for treasury stock is also recorded under stockholders’

equity of the Group for the same amount.

The investment in equipment leased is recorded at cost.

The related depreciation is generally calculated, according

to the financial method, based on the life of the lease and

the related risk in managing such contracts.

Current assets

Inventories are valued at the lower of cost or market,

cost being determined on a First In First Out (FIFO) basis.

The valuation of inventories includes the direct costs of

materials and labor and variable and fixed indirect costs.

Work in progress on long-term contracts is valued based

on the stage of completion and is recorded gross of advance

payments received from customers. Eventual losses on such

contracts are fully recorded when they become known.

Provision is made for obsolete and slow-moving raw materials,

finished goods, spare parts and other supplies based on their

expected future use and realizable value.

Receivables are recorded at estimated realizable value. Any

unearned interest included in the nominal value of financial

receivables has been deferred to future periods. Receivables

sold to third parties with recourse or without recourse (including

those sold as part of securitization transactions) are eliminated

from receivables and disclosed in the memorandum accounts.

Receivables denominated in foreign currency are translated at

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements

11

11


12

12

the exchange rate in effect at year end. Resulting exchange

gains and losses are included in the statement of operations.

Other receivables also include deposits to guarantee the

securitization transactions of trade receivables (securitization

refers to particular programs of discounting trade receivables

without recourse, with a collateral deposit as a guarantee).

Current assets also include investments and securities

acquired as temporary investment which are valued at the

lower of cost or market, cost being determined on a

Last-In First-Out (LIFO) basis.

Insurance company investments to cover insurance claims

and accruals are valued at the lower of cost or market.

Treasury stock consists of Fiat S.p.A. shares bought back

by Fiat to service stock option plans; it is valued at the lower

of cost or market, cost being determined on a Last-In

First-Out (LIFO) basis. A specific reserve for treasury stock

is also recorded under the stockholders’ equity of the Group

for the same amount.

Reserves for risks and charges and employee severance

indemnities

The reserves for risks and charges include provisions to cover

losses or liabilities likely to be incurred but uncertain as to the

amount or as to the date on which they will arise.

In particular, the reserve for pensions and similar obligations

includes provisions for long-service or other bonuses (including

pension funds required by some countries in which the Group

operates), payable to employees and former employees under

contractual agreements or by law, determined on an actuarial

basis, where applicable.

Restructuring reserves include the costs to carry out corporate

reorganization and restructuring plans and are provided in the

year the company formally decides to commence such plans,

to the extent that such costs can be reasonably estimated.

The technical reserves of insurance companies are determined

according to the procedures and rules issued by the regulatory

agencies in each country in which the individual subsidiaries

operate. In particular, unearned property and liability premiums

are recognized on the pro-rata basis over the period of the

policy. The reserve for unpaid property and liability losses and

unpaid adjustment expenses has been calculated on the basis

of reasonable estimates of the “latest cost” of the claims,

analytically and for groups of particular risks, following

adequate statistical and actuarial methods. The policy

reserves for unpaid losses on life insurance claims are

calculated on an actuarial basis, accompanied by an opinion

by a qualified actuary on the congruity of the amount.

The reserve for employee severance indemnities comprises

the liability for severance indemnities for Italian companies

accrued at year end for each employee and determined in

accordance with labor legislation. In particular, the liability

includes a portion of the employee’s annual salary and is

indexed for inflation in accordance with Italian rules.

Payables

Payables are recorded at face value; the portion of interest

included in the nominal amount is deferred until future periods

in which it is earned. Accounts payable denominated in

foreign currency are translated at the exchange rate in effect

at year end. Resulting exchange gains and losses are included

in the statement of operations.

Taxes payable includes the tax charge for the current year

recorded in the statement of operations.

Accruals and deferrals

Accruals and deferrals are determined using the accrual method

based on the income and expense to which they relate.

Securitization of financial receivables

The Fiat Group has programs for discounting financial

receivables using securitization transactions. This discounting

of financial receivables calls for the sale without recourse of

a portfolio of financial receivables to a non-Group vehicle

company. This company finances itself by issuing securities

backed by the above-mentioned portfolio (Asset Backed

Securities). The securities issued are divided into two types

having different characteristics: the first (historically between

88% and 98% of the entire issue) is placed on the market,

occasionally subdivided by various classes of ratings, and

subscribed to by investors; the second (12%-2%), the

reimbursement of which is subordinated to the first, is subscribed

to by the seller. The risk for the seller is limited to the portion

of the securities which it has subscribed. At the end of each

accounting period, therefore, such securities are evaluated

in relation to the performance of the receivables sold and

may be written down on the basis of this evaluation.

Lastly, these sales without recourse require the immediate

recognition of the present value of the future margin implicit

in the receivables sold, net of discounting costs. This net

value is included in the Value of production since it relates

to revenues typical of the operations of the financial services

companies (to this end, the financial income of such companies

is included in revenues from sales and services, as described

in the relevant note).


Memorandum accounts

Derivative financial instruments

Financial instruments used to hedge exchange and interest

rate fluctuations and, in general, changes in the assets and

liabilities, are presented in Note 14. Derivative financial

instruments are recorded at inception in the memorandum

accounts at their notional contract amount.

In general, beginning in 2001 the Fiat Group adopted – to the

extent that it is considered compatible and not in contrast with

general principles set forth in the Italian law governing financial

statements – the new international accounting standard IAS

No. 39 “Financial Instruments: Recognition and Measurement”,

applicable beginning January 1, 2001. The new principle

covers the accounting treatment of all financial assets and

liabilities in and off-balance sheet and, in particular, states that

derivative financial instruments should be valued at fair value.

Taking into account the restrictions under Italian law and the

evolution of the law now underway (Law enacted under

delegated power for the reform of corporate law), the Group

maintains, consistently with Consob rulings, that IAS 39 is

immediately applicable only in part and only in reference

to the designation of derivative financial instruments as

“hedging” or “non-hedging instruments” and with respect

to the symmetrical accounting of the result of the valuation

of the derivative hedging instrument and the result attributable

to the hedged item (“hedge accounting”). The transactions

which, according to the Group’s policy for risk management,

are able to meet the conditions stated by the accounting

principle for hedge accounting treatment are classified as

hedging transactions; the others, instead, although set up

for the purpose of managing risk (inasmuch as the Group’s

policy does not permit speculative transactions), have been

designated as “trading”. The accounting solutions adopted

by the Group, however, have not given rise to substantial

changes in the previous practices and, therefore, have not

had a significant impact on the results of operations and

on the stockholders’ equity of the Group.

Details of the accounting treatment adopted are as follows.

For foreign exchange instruments designated as hedges, the

premium (or discount, representing the difference between

the spot exchange rate at the inception of the contract and

the forward exchange rate) is included in the statement of

operations, in Financial income and expenses, in accordance

with the accrual method.

Differences between the value of such instruments using the

exchange rates at inception and those at year end are also

included in the statement of operations to offset the exchange

effects of the items being hedged. In particular, for contracts

entered into to hedge the exchange risk of future transactions

that are considered highly probable, the effects of the

alignment with the year-end exchange rate should be deferred

until the year in which the underlying transactions are recorded.

For interest rate instruments designated as hedges, the interest

rate differential is included in the statement of operations, in

Financial income and expenses, in accordance with the accrual

method, offsetting the effects of the hedged transaction.

Instead, derivative financial instruments designated as trading

instruments are valued at year-end market value and the

difference compared to the nominal contract value is recorded

in the statement of operations under Financial income and

expenses.

Statement of Operations

Revenue recognition

Revenues from sales and services are recognized on the accrual

basis net of returns, discounts, allowances and rebates.

Revenues from sales of products are recognized at the

moment title passes to the customer, which is generally at

the time of shipment. Under contracts for vehicle sale and

buy-back at a specified price, a specific reserve for future

risks and charges is set aside based on the difference

between the guaranteed residual amount and the estimated

realizable value of the used asset, taking into account the

probability that such option will be exercised; this reserve is

set up at the time of the initial sale and adjusted periodically

over the period of the contract.

Revenues from services are recorded when they are

performed. Revenues from long-term contracts are recognized

using the percentage of completion method.

Revenues also include amounts received from financing

leases, net of depreciation, and income from company assets

on operating leases.

Within the insurance sectors insurance premiums are

recognized on an accrual basis.

Lastly, revenues from sales and services include income from

the typical business of the financial services companies.

Costs

Costs are recognized on an accrual basis.

Research and development costs are generally charged

to the statement of operations in the period in which they

are incurred. Research-related revenue grants provided by

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements

13

13


14

14

the Government or the EU are credited to the statement

of operations when collection becomes certain.

Advertising and promotion expenses are charged to the

statement of operations in the year incurred.

Estimated product warranty costs are charged to the

statement of operations at the time the sale is recorded.

Finally, the Costs of production include the interest and

expenses relative to the typical business of the financial

services companies, as well as insurance claims and

other technical costs of the insurance companies.

Financial income and expenses

Financial income and expenses are recorded on the accrual

basis.

Income and expenses resulting from derivative financial

instruments, as well as year-end relevant exchange differences,

are included in the statement of operations in accordance with

the above mentioned policies disclosed under memorandum

accounts.

Costs relating to the factoring of receivables and notes of

any type (with recourse, without recourse, securitization) and

nature (trade, financial, other) are charged to the statement

of operations on an accrual basis.

Introduction of the Euro

Starting from January 1, 1999, all Group companies located

in the euro-zone countries, except for insurance companies

and certain companies which became part of the Group

subsequently, adopted the euro as their functional currency.

Insurance companies adopted the euro currency in 2000.

The costs connected to the introduction of the Euro have

been entirely charged to the consolidated statement of

operations under Costs of production in the year incurred.

Income taxes

Income taxes currently payable are provided for in accordance

with the existing legislation of the various countries in which

the Group operates.

Deferred tax liabilities or deferred tax assets are determined

on all the timing differences between the consolidated assets

and liabilities and the corresponding amounts for purposes

of taxation, including those deriving from the most significant

consolidation adjustments. As allowed by the applicable

Accounting Principles, deferred taxes are also recorded to

account for the tax benefit of tax loss carryforwards whenever

the specific conditions for future recoverability are met.

In particular, deferred tax assets have only been recorded

if there is a reasonable certainty of their future recovery.

Deferred tax liabilities, instead, are not recorded if it is

unlikely that a future liability will arise.

Deferred tax assets and liabilities are offset if they refer to the

same company. The balance from offsetting the amounts is

recorded in Other receivables in current assets, if a deferred tax

asset, and in the Deferred tax reserve, if a deferred tax liability.


COMPOSITION, PRINCIPAL CHANGES AND OTHER INFORMATION

Fixed assets

1 Intangible fixed assets

Disposals,

Other changes

Net of Change in and Foreign Net of

amortization the scope of Reclassi- exchange amortization

(in millions of euros) 12/31/2000 Additions Amortization consolidation fications effects 12/31/2001

Start-up and expansion costs 109 13 (21) 9 – (43) 67

Research, development and advertising expenses 23 8 (12) (6) 1 (4) 10

Industrial patents and intellectual property rights 561 38 (75) (4) 1 (68) 453

Concessions, licenses, trademarks and similar rights 482 64 (82) 8 19 – 491

Goodwill 386 14 (35) 23 – (13) 375

Intangible assets in progress and advances 63 140 – (1) (28) 69 243

Other intangible assets 268 207 (99) 5 7 (24) 364

Differences on consolidation 4,565 128 (269) 20 – 88 4,532

Total Intangible fixed assets 6,457 612 (593) 54 – 5 6,535

Start-up and expansion costs at December 31, 2001 consist of deferred plant start-up costs and corporate formation costs of 60

million euros (101 million euros at December 31, 2000) and capital increase costs of 7 million euros (8 million euros at December

31, 2000).

Industrial patents and intellectual property rights at December 31, 2001 total 453 million euros with a decrease of 108 million

euros compared to December 31, 2000. The change from December 31, 2000 is due to Additions during the year of 38 million

euros, mainly for the capitalization of costs connected with technological and software studies conducted by the Automotive

Sectors.

Concessions, licenses, trademarks and similar rights at December 31, 2001 total 491 million euros with an increase of 9 million

euros compared to December 31, 2000. The change from December 31, 2000 is due to Additions during the year of 64 million

euros, Amortization of 82 million euros, Change in the scope of consolidation of 8 million euros, and Reclassifications, Disposals,

Other changes and Foreign exchange effects, net, of 19 million euros.

Other intangible assets mainly consist of other deferred charges. In particular, included in intangible fixed assets are costs

incurred by the Aviation Sector to participate in international cooperation programs and the contract acquisition costs incurred

by the Insurance Companies.

Differences on consolidation at December 31, 2001 total 4,532 million euros, and include the net goodwill on the acquisition

of the Case Group and other CNH Group companies for 3,173 million euros, the Fraikin Group for 313 million euros, the Irisbus

Group for 22 million euros, Nuova Tirrena S.p.A. and other Toro Group companies for 85 million euros, other Business Solutions

companies for 42 million euros, Teksid de Mexico S.A. de C.V., Teksid Hierro de Mexico S.A. de C.V. and Meridian Technologies

Inc. for 84 million euros, the Midas Group for 30 million euros, the Seima Group for 55 million euros, the Cofap Group for 37

million euros, the Automotive Lighting Groupe for 26 million euros, other Production System Sector companies for 46 million

euros, and other minor companies for 45 million euros. Differences on consolidation also include goodwill deriving from the

tender offers for the minority interest in Toro Assicurazioni S.p.A. for 399 million euros, and Magneti Marelli S.p.A. for 118 million

euros, as well as the capital increase of CNH Global N.V. for 57 million euros. Additions during the year totaling 128 million euros

derive from goodwill connected with the purchase of additional stakes in the companies Teksid Hierro de Mexico S.A. de C.V.

and Teksid de Mexico S.A. de C.V. (57 million euros), Worknet Società di Fornitura di Lavoro Temporaneo S.p.A. (7 million euros),

Nuova Tirrena S.p.A. (12 million euros), Lloyd Italico Group (9 million euros), and other minor companies (43 million euros).

As regards the amounts recorded in Goodwill and Differences on consolidation, amortization is charged over periods ranging

from five to twenty years, on the basis of the recoverability of these amounts. At the end of the year, however, specific reviews

are conducted to verify whether such amounts are recoverable by considering actual future earnings or realization through the

sale of the businesses to which they refer.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 15

15


16

16

In particular, with respect to the aforementioned net goodwill relating to the CNH Group (3,230 million euros), specific reviews

were conducted, also to conform to the United States accounting standard SFAS 121 (the accounting standard applied by CNH

Global NV in its consolidated financial statements which are prepared in accordance with US GAAP). These reviews revealed that

the values are recoverable at the Sector level expressed in the financial statements. Moreover, CNH Global is also conducting

new more detailed reviews at the level of each single business unit under the new United States accounting standard SFAS 142,

which is applicable from January 1, 2002. At this time, it is not possible to anticipate the conclusions of such reviews, nor if

these reviews will have a significant impact on the valuation of such goodwill also in relation to Italian accounting principles.

2 Property, plant and equipment

Net of Change in Foreign Disposals Net of Accumulated

depreciation the scope of Reclassi- exchange and Other depreciation depreciation

(in millions of euros) 12/31/2000 Additions Depreciation consolidation fications effects changes 12/31/2001 12/31/2001

Land and buildings 4,891 144 (203) (82) 26 21 (394) 4,403 1,955

Plant and machinery 6,264 521 (819) (1,559) 229 (45) (189) 4,402 8,306

Industrial and commercial equipment 1,823 439 (672) (15) 220 (45) (106) 1,644 5,992

Other assets 2,547 1,362 (593) (12) 12 25 (1,131) 2,210 2,412

Construction in progress and advances 1,152 972 – (209) (487) 3 (203) 1,228 –

Total Property, plant and equipment 16,677 3,438 (2,287) (1,877) – (41) (2,023) 13,887 18,665

Property, plant and equipment include revaluations, which, net of depreciation recorded in previous years, are 388 million euros

at December 31, 2001 and 481 million euros at December 31, 2000.

No interest expenses were capitalized in 2001 and in 2000.

Change in the scope of consolidation shows a total decrease of 1,877 million euros, being the result of the sale of Fenice

(459 million euros), the deconsolidation of the Powertrain and Purchasing businesses of Fiat Auto which were contributed to

the joint-ventures with General Motors that are now accounted for using the equity method (1,559 million euros), as well as

the inclusion and exclusion of other minor companies in consolidation (141 million euros).

Reclassifications primarily refer to a reduction in construction in progress and advances for the purchase of property, plant and

equipment existing at the end of the prior year, which were reclassified at the time they were effectively acquired and put into

operation.

Disposals and other changes show a total reduction of 2,023 million euros and include, with respect to land and buildings,

394 million euros partly related to the sale of non-strategic properties sold with the intent to reduce net invested capital.

Other assets include vehicles on operating leases for 1,599 million euros at December 31, 2001 (1,874 million euros at

December 31, 2000), mainly related to long-term leases. The decrease of 275 million euros from December 31, 2000 mainly

refers to the Automobile Sector in respect of the transfer of part of the vehicle rental business to the joint venture Leasys S.p.A.,

which is accounted for using the equity method.

The depreciation rates used are determined on the basis of the estimated useful lives of the assets and are listed below:

Depreciation rates

Land and buildings 3% – 9%

Plant and machinery 8% – 21%

Industrial and commercial equipment 16% – 28%

Other assets 11% – 25%


3 Financial fixed assets

Investments

Change in Acquisitions Foreign Disposals

Value at Equity in Equity in the scope of and exchange and Other Value at

(in millions of euros) 12/31/2000 earnings losses consolidation Capitalizations effects changes 12/31/2001

Unconsolidated subsidiaries 758 64 (67) (166) 30 12 3 634

Associated companies 1,778 81 (192) 1,329 1,187 (13) (212) 3,958

Other companies 4,764 34 (66) (59) 181 3 (65) 4,792

Total Investments 7,300 179 (325) 1,104 1,398 2 (274) 9,384

Equity in earnings and Equity in losses include the Group’s share of the income or the loss of companies accounted for using the

equity method.

Change in the scope of consolidation (increase of 1,104 million euros) is due to:

❚ Investments in unconsolidated subsidiaries (-166 million euros): PTC Holdings do Brasil Ltda (-250 million euros) contributed to

the Fiat-GM Powertrain B.V. Group, EEA S.c.r.l. (-16 million euros) consolidated line-by-line in 2001, Leasys S.p.A. (89 million

euros), and other minor subsidiaries (11 million euros);

❚ Investments in associated companies (1,329 million euros): the increase is due to FIAT-GM Powertrain B.V. (1,276 million euros)

which came into operation upon the contribution of activities on the part of Fiat and GM, Consolidated Diesel Company (74

million euros), Global Value Services S.p.A. (32 million euros), Augusta Vita S.p.A. (-67 million euros) consolidated line-by-line in

the Insurance Sector, and other minor companies (14 million euros);

❚ Investments in other companies (-59 million euros).

Acquisitions and Capitalizations (1,398 million euros) refer principally to the following acquisitions and capitalizations:

❚ Investments in unconsolidated subsidiaries (30 million euros): Teksid Aluminum Components Inc. (8 million euros), New City Car

S.A. (8 million euros), other minor subsidiaries (14 million euros);

❚ Investments in associated companies (1,187 million euros): Italenergia S.p.A. (1,065 million euros), Banca di Roma S.p.A. (53

million euros), Atlanet S.p.A. (35 million euros), CBC-Iveco Ltd. (11 million euros) and other minor companies (23 million euros);

❚ Investments in other companies (181 million euros): this item includes investments made by the insurance companies in mutual

funds and investment holdings (120 million euros) and miscellaneous investments made by Group companies (61 million euros).

Investments, by type of consolidation method, are analyzed as follows:

(in millions of euros) At 12/31/2001 At 12/31/2000

Investments accounted for using the equity method 4,501 2,409

Investments valued on a cost basis:

listed companies 2,694 2,720

unlisted companies 2,189 2,171

Total Investments valued at cost 4,883 4,891

Total Investments 9,384 7,300

The significant increase (2,092 million euros) in investments accounted for on the equity method mostly refers to investments in

Fiat-GM Powertrain B.V. (1,259 million euros) and Italenergia S.p.A. (1,034 million euros).

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 17

17


18

18

Unconsolidated subsidiaries are analyzed as follows:

At 12/31/2001 At 12/31/2000

(in millions of euros) % Amount % Amount

Unconsolidated subsidiaries:

BUC-Banca Unione di Credito 100.0 361 100.0 327

Leasys S.p.A. 51.0 111 – –

PTC Holdings do Brasil Ltda – – 57.4 250

Other unconsolidated subsidiaries (minor amounts) 162 180

Total 634 757

As allowed by law, the above companies have not been consolidated either because their operations are so dissimilar (BUC –

Banca Unione di Credito), or because it would not have been possible to obtain the necessary information for their consolidation

on a timely basis without disproportionate expense or because their operations are not significant. Such companies carry net

debt of 134 million euros.

As regards to the investment in Leasys S.p.A., this company is subject to joint control with the other partner, even though the

Fiat Group holds 51% of share capital; like the other main jointly controlled companies, the investment is valued using the equity

method.

Investments in associated companies are as follows:

At 12/31/2001 At 12/31/2000

(in millions of euros) % Amount % Amount

Associated companies:

Fiat-GM Powertrain B.V. 50.0 1,259 50.0 –

Italenergia S.p.A. 38.6 1,034 – –

Banca di Roma S.p.A. 10.6 604 10.1 553

Tofas Turk Otomobil Fabrikasi A.S. 37.9 136 37.9 164

Sevel S.p.A. 50.0 125 50.0 121

H.d.P. S.p.A. 10.0 114 10.9 151

Consolidated Diesel Company 50.0 67 50.0 –

Jiangsu Nanya Gearbox Co. Ltd. 50.0 52 50.0 50

Europ Assistance Holding S.A. 40.0 43 40.0 36

Sevel Nord S.A. 50.0 43 50.0 41

New Holland HFT Japan Inc. 50.0 42 50.0 41

Global Value Services S.p.A. 50.0 31 – –

Atlanet S.p.A. 29.9 29 29.9 15

Lingotto S.p.A. 30.9 29 30.9 28

LBX Company LLC 50.0 23 50.0 23

Case Credit Europe S.A.S. 50.0 22 50.0 18

Turk Traktor Ve Ziraat Makineleri A.S. 37.5 22 37.5 46

Hua Dong Teksid Automotive Foundry Co. Ltd. 50.0 21 50.0 16

New Holland de Mexico SA de CV 50.0 20 50.0 13

AL-Ghazi Tractors Ltd. 43.2 19 43.2 14

New Holland Trakmak Traktor A.S. 37.5 15 37.5 23

Otoyol Sanayi A.S. 27.0 15 27.0 17

Augusta Vita S.p.A. – – 40.0 67

F.F. Industrie Ferroviarie S.p.A. – – 49.0 40

Ser.Ene S.p.A. – – 33.0 32

Denso Manufacturing U.K. Ltd. – – 25.0 29

Denso Manufacturing Italia S.p.A. – – 20.0 26

Other associated companies (minor amounts) 193 214

Total 3,958 1,778


The above list also comprises certain companies under joint control, the most important of which are Fiat-GM Powertrain B.V.,

Sevel S.p.A. and Sevel Nord S.A.. Such companies carry net debt of 1,862 million euros.

In particular, key data taken from the financial statements used to value the Fiat-GM Powertrain B.V. investment on the equity

method are as follows:

(in millions of euros) At 12/31/2001

Balance sheet data

Fixed assets 3,183

Total assets 6,546

Debt (1,396)

Stockholders’ equity 2,518

(in millions of euros) 07/01/2001 – 12/31/2001

Statement of operations data

Net sales 2,794

Operating income 120

Net income 59

Investments in other companies are as follows:

(in millions of euros) At 12/31/2001 At 12/31/2000

Other companies:

Other listed companies 2,694 2,720

Miscellaneous companies 2,098 2,044

Total 4,792 4,764

Other listed companies of 2,694 million euros at December 31, 2001 (2,720 million euros at December 31, 2000) principally

include stock in General Motors (2,603 million euros) and Mediobanca (78 million euros).

Had the portfolio of the major listed stocks at December 31, 2001 been valued at fair value, it would have been approximately

759 million euros lower than the carrying value in the financial statements (approximately 769 million euros lower than the

carrying value at December 31, 2000). This lower value principally refers to the market price of General Motors stock (No.

32,053,422 shares) which, at December 31, 2001, is 835 million euros lower (760 million euros net of the effects of the currency

hedging transactions) than the carrying value in the financial statements. Since the investment is considered long-term and the

Group deems that such lower value is not representative of a permanent impairment, no writedown was made. In establishing

whether the impairment was permanent, several factors were taken into consideration, including the stock fluctuations, the

economic and financial prospects announced by General Motors, in addition to the Group’s intention to maintain its investment in

General Motors stock for a period sufficient to recover such lower value. Again, in reference to the investment in General Motors,

at the beginning of 2002 a five-year debenture was issued, convertible into the same number of General Motors shares held by

the Fiat Group. The price of exercising the implicit option in the debenture coincides with the per unit carrying value of the

General Motors shares in US dollars in the Fiat consolidated financial statements.

Miscellaneous companies mainly refer to investments by the insurance companies for the benefit of their policy holders which

assume the risk for 1,895 million euros (1,804 million euros at December 31, 2000) and to other minor companies.

No fair values have been determined for the Miscellaneous companies as this type of calculation would require a significant effort

which would outweigh the benefits of obtaining such information.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 19

19


20

20

Receivables

At 12/31/2001 At 12/31/2000

Of which Of which

(in millions of euros)

Due within

one year

Due beyond

one year

due beyond

5 years Total

Due within

one year

Due beyond

one year

due beyond

5 years Total

Receivables from unconsolidated subsidiaries – – – – 3 – – 3

Receivables from others 33 22 3 55 78 33 8 111

Total Receivables 33 22 3 55 81 33 8 114

Financial receivables are shown net of the allowances for doubtful accounts of 2 million euros (1 million euros at December 31,

2000), with a provision of 1 million euros during the year 2001.

Financial receivables recorded in the financial statements at December 31, 2001 and 2000 approximate their fair values which

have been calculated using the present value method, based on a discount rate which reflects market conditions, the duration

and risk of insolvency.

Other securities

(in millions of euros) At 12/31/2001 At 12/31/2000 Change

Other securities 5,918 5,073 845

Other securities are shown in the financial statements net of the allowance for doubtful accounts of 2 million euros (2 million

euros at December 31, 2000); no provisions were set aside during the year.

Other securities principally include marketable Government securities and bonds, held primarily by the insurance companies for

5,908 million euros at December 31, 2001 and 5,056 million euros at December 31, 2000. The increase of 852 million of euros is

due to the consolidation of Lloyd Italico Group and Augusta Vita S.p.A. for 223 million euros.

Other securities, if valued at fair value at December 31, 2001, would amount to 5,897 million euros.

Treasury stock

At 12/31/2001 At 12/31/2000

Number Cost Number Cost

of shares

(thousands)

(in millions

of euros)

of shares

(thousands)

(in millions

of euros)

Fiat S.p.A. shares held by subsidiaries:

Ordinary 11,458 233 650 11

Preference 1 – 1 –

Savings 1,094 12 1,064 12

Total Treasury stock 12,553 245 1,715 23

Treasury stock, stated at cost, consists of Fiat shares held by the companies Toro Assicurazioni S.p.A., Le Continent I.A.R.D.

S.A. and Fiat Ge.Va. S.p.A. The increase from 1,715 thousand shares (for an amount of 23 million euros) to 12,553 thousand

shares (for an amount of 245 million euros) is due to the purchase of ordinary shares by Toro Assicurazioni S.p.A. and Le

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


Assets leased

Net of Foreign Disposal Net of Accumulated

depreciation exchange and Other depreciation depreciation

(in millions of euros) 12/31/2000 Additions Depreciation effects changes 12/31/2001 12/31/2001

Assets leased 4,150 1,682 (803) (36) (1,626) 3,367 2,073

Assets leased consist of vehicles sold by the Automotive Sectors under financial leases. The decrease of 783 million euros

compared to December 31,2000 mainly refers to the companies operating in Brazil, where a shift in the demand from financing

leases to other forms of financing was caused by changes in the law.

Assets leased do not include vehicles on operating leases, which are included under Property, plant and equipment.

Current assets

4 Inventories

At 12/31/2001 At 12/31/2000

(in millions of euros) Gross Allowance Net Gross Allowance Net

Raw materials and supplies 1,631 (146) 1,485 1,599 (122) 1,477

Work in progress and semifinished products 1,230 (24) 1,206 1,319 (22) 1,297

Contract work in progress 5,240 – 5,240 4,796 – 4,796

Finished goods and merchandise 5,521 (466) 5,055 5,443 (522) 4,921

Advances to suppliers 2,524 – 2,524 1,888 – 1,888

Total Inventories 16,146 (636) 15,510 15,045 (666) 14,379

Advance payments on contract work in progress (4,760) – (4,760) (4,343) – (4,343)

Net inventories 11,386 (636) 10,750 10,702 (666) 10,036

Movements in the inventory allowance accounts during the year were as follows:

Foreign Change in

At Use and exchange the scope of At

(in millions of euros) 12/31/2000 accruals effects consolidation 12/31/2001

Allowance for inventory writedowns 666 (50) – 20 636

Inventories of 15,510 million euros at December 31, 2001 show an increase of 1,131 million euros compared to the prior year

(14,379 million euros at December 31, 2000). Advance payments received against contract work in progress amount to 4,760

million euros (4,343 million euros at December 31, 2000) and are recorded as payables (Note 12). Inventories, net of such

advance payments, amount to 10,750 million euros (10,036 million euros at December 31, 2000), with an increase of 714 million

euros. Progress on the work for the High-Speed Railway Project, of which Fiat S.p.A. is the general contractor, accounted for

629 million euros of the increase in inventories due to the advances paid to sub-contractors and also the advances received,

included in Other payables for the same amount (Note 12).

As for the inventories of finished products and merchandise, in 2001, the Automobile Sector gradually sold its spare parts

inventory (which was worth 387 million euros at December 31, 2000) to the 19%-owned associated company Società di

Commercializzazione e Distribuzione Ricambi S.p.A. (S.C.D.R.). This is a venture set up with the logistics operator DHL

Worldwide Express B.V. (19.9%), a company in the Deutsche Post group (which holds an additional 29.1% of the capital stock

of S.C.D.R.), as well as with other financial partners. S.C.D.R. is working to improve spare parts management thanks to DHL’s

specialist know-how.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 21

21


22

22

5 Receivables

An analysis of receivables by due date is as follows:

At 12/31/2001 At 12/31/2000

Due Due Of which Due Due Of which

(in millions of euros)

within

one year

beyond

one year

due beyond

5 years Total

within

one year

beyond

one year

due beyond

5 years Total

Trade receivables 5,611 118 2 5,729 6,443 89 20 6,532

Receivables from unconsolidated subsidiaries 35 – – 35 44 – – 44

Receivables from associated companies 706 – – 706 170 – – 170

Other receivables from:

Employees 44 4 – 48 49 5 – 54

Tax authorities 1,200 236 2 1,436 1,497 350 6 1,847

Social security contributions 38 – – 38 30 – – 30

Others 2,036 2,633 26 4,669 1,875 1,906 42 3,781

Total Other receivables 3,318 2,873 28 6,191 3,451 2,261 48 5,712

Total Receivables 9,670 2,991 30 12,661 10,108 2,350 68 12,458

An analysis of receivables by type is as follows:

At 12/31/2001 At 12/31/2000

(in millions of euros) Trade Other Total Trade Other Total

Trade receivables 5,728 1 5,729 6,532 – 6,532

Receivables from unconsolidated subsidiaries 35 – 35 42 2 44

Receivables from associated companies 703 3 706 170 – 170

Other receivables from:

Employees – 48 48 – 54 54

Tax authorities – 1,436 1,436 – 1,847 1,847

Social security contributions – 38 38 – 30 30

Other – 4,669 4,669 – 3,781 3,781

Total Other receivables – 6,191 6,191 – 5,712 5,712

Total Receivables 6,466 6,195 12,661 6,744 5,714 12,458

of which:

Receivables included in working capital 6,466 3,162 9,628 6,744 3,665 10,409

Deferred tax assets – 3,033 3,033 – 2,049 2,049

Trade receivables show a decrease of 278 million euros on account of the increase of 305 million euros due to the changes in the

scope of consolidation and the reduction of 583 million euros due to current operations.

Trade receivables are shown net of allowances for doubtful accounts of 609 million euros at December 31, 2001 (592 million

euros at December 31, 2000). Movements in these allowance accounts during the year were as follows:

Use and Change in

At other the scope of At

(in millions of euros) 12/31/2000 Accruals changes consolidation 12/31/2001

Allowances for doubtful accounts 592 206 (160) (29) 609

Receivables from tax authorities principally refer to the Italian tax authorities for VAT and income taxes. They also include

the tax credit regarding the advance payments of income tax maturing on employee severance indemnities paid by the Italian

companies; the related interest income receivable referring to the current year is recorded in Financial income and expenses.

“Other receivables from others” include the net balance of deferred tax assets of 3,033 million euros (2,049 million euros at

December 31, 2000), accounted for according to the accounting principle on the subject that was previously described.

Additional information on these assets is provided in Note 10 – Reserve for risks and charges under Deferred income tax reserve.


6 Financial assets not held as fixed assets

Investments

Investments in other companies amount to 1,976 million euros at December 31, 2001 (1,098 million euros at December 31,

2000) and show an increase of 878 million euros, mainly due to higher investments carried out by the insurance companies to

cover the insurance policy liabilities and accruals, as well as the change in the scope of consolidation due to the inclusion of the

Lloyd Italico Group (12 million euros).

Other securities

(in millions of euros) At 12/31/2001 At 12/31/2000 Change

Italian government securities 2,856 2,150 706

Other securities 3,571 2,768 803

Total Other securities 6,427 4,918 1,509

of which:

held by insurance companies 5,857 4,342 1,515

Italian government securities also refer to securities issued or guaranteed by the Italian government.

Other securities relate to securities with a broad market issued by debtors with a high credit rating, mainly held by insurance

companies to cover their technical reserves for policy liabilities and accruals.

The fair value of the securities portfolio held by insurance companies at December 31, 2001 was approximately 54 million euros

(35 million euros at December 31, 2000) higher than the carrying value.

The securities portfolio held by the industrial companies of 570 million euros at December 31, 2001 (576 million euros at

December 31, 2000) approximates fair market value calculated by reference to the market prices.

Treasury stock

At 12/31/2001 At 12/31/2000

Number Cost Number Cost

of shares

(thousands)

(in millions

of euros)

of shares

(thousands)

(in millions

of euros)

Fiat S.p.A. shares held by Fiat S.p.A. and subsidiaries:

Ordinary 2,100 37 1,002 27

Savings 1 – – –

Total Treasury stock 2,101 37 1,002 27

Treasury stock consists of No. 2,100,000 Fiat ordinary shares held by Fiat S.p.A. and No. 1,214 Fiat savings shares held by

Augusta Assicurazioni S.p.A., for an amount of 37 million euros. Fiat bought back No. 1,098,000 ordinary shares during the year

to service the Stock Options Plans.

Financial receivables

At 12/31/2001 At 12/31/2000

Due Due Of which Due Due Of which

(in millions of euros)

within

one year

beyond

one year

due beyond

5 years Total

within

one year

beyond

one year

due beyond

5 years Total

Receivables from unconsolidated subsidiaries 237 177 5 414 78 116 26 194

Receivables from associated companies 340 129 1 469 392 8 – 400

Receivables from others 12,026 8,354 869 20,380 9,363 9,838 590 19,201

Total Financial receivables 12,603 8,660 875 21,263 9,833 9,962 616 19,795

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 23

23


24

24

Financial receivables amount to 21,263 million euros at December 31, 2001 (19,795 million euros at December 31, 2000) and

show an increase of 1,468 million euros. They are shown net of an allowance for doubtful accounts of 672 million euros (594

million euros at December 31, 2000). Movements in these allowance accounts during the year were as follows:

Use and Change in

At Other the scope of At

(in millions of euros) 12/31/2000 Accruals changes consolidation 12/31/2001

Allowance for doubtful account 594 334 (246) (10) 672

The fair value of these Financial receivables would be approximately 21,351 million euros at December 31, 2001 (19,843 million

euros at December 31, 2000). The fair value of financial receivables is determined according to the method indicated in Note 3 –

Financial fixed assets – Receivables.

Receivables from associated companies of 469 million euros at December 31, 2001 (400 million euros at December 31, 2000)

mainly refer to receivables from joint ventures with other manufacturers set up for the joint development of vehicle models and

from associated companies engaged in the real estate business.

Financial receivables from others amount to 20,380 million euros at December 31, 2001 (19,201 million euros at December 31, 2000),

of which 19,312 million euros at December 31, 2001 (16,636 million euros at December 31, 2000) consist of financing to dealers and

customers primarily made by the financial services companies, with an average maturity of approximately 30 months; the increase in

this item of 2,676 million euros compared to 2000, is attributable to the higher business volumes. Financial receivables from others also

include the net amount of subordinated securities (602 million euros) subscribed to as part of the securitization of financial receivables.

7 Cash

(in millions of euros) At 12/31/2001 At 12/31/2000

Bank and post office accounts 2,091 1,964

Checks 17 4

Cash on hand 25 29

Total Cash 2,133 1,997

Cash recorded in the financial statements at December 31, 2001 and 2000 is in line with the fair value at the same dates.

8 Accrued income and prepaid expenses

(in millions of euros) At 12/31/2001 At 12/31/2000

Issue discounts – 42

Other Accrued income and prepaid expenses:

Commercial accrued income

Accrued interest and commissions 33 33

Other 27 27

Total Commercial accrued income 60 60

Commercial prepaid expenses

Interest 37 85

Other 556 393

Total Commercial prepaid expenses 593 478

Financial accrued income 560 578

Financial prepaid expenses 137 130

Total Other Accrued income and prepaid expenses 1,350 1,246

Total Accrued income and prepaid expenses 1,350 1,288

Financial accrued income mainly includes day-to-day interest earned on securities and derivative financial instruments.

Financial prepaid expenses include prepaid interest on securities (Sava bonds) issued by the financial services companies.


9 Stockholders’ equity

Statement of changes in Stockholders’ equity of the Group

Retained

Treasury earnings, Other

Additional stock Cumulative reserves, Net

paid-in Legal valuation translation income (loss)

(in millions of euros) Capital stock capital reserve reserve adjustments for the year Total

Balance at December 31, 1998

Dividends paid (0.620 euros per ordinary and preference

2,844 1,636 569 124 313 7,512 12,998

share and 0.775 euros per savings share) (*) – – – – – (350) (350)

Emoluments to Directors – – – – – (4) (4)

Foreign exchange translation adjustments – – – – (79) – (79)

Sale of treasury stock in portfolio – – – (97) – 97 –

Translation of capital stock in euros (91) – 90 – – 1 –

Other minor movements – – – – – (44) (44)

Net income (loss) – – – – – 353 353

Balance at December 31, 1999

Dividends paid (0.620 euros per ordinary and preference

2,753 1,636 659 27 234 7,565 12,874

share and 0.775 euros per savings share) – – – – – (352) (352)

Foreign exchange translation adjustments – – – – 136 – 136

Change in treasury stock in portfolio – – – 23 – (23) –

Other minor movements – – – – – (2) (2)

Net income (loss) – – – – – 664 664

Balance at December 31, 2000 2,753 1,636 659 50 370 7,852 13,320

Dividends paid (0.620 euros per ordinary and preference

share and 0.775 euros per savings share) – – – – – (352) (352)

Foreign exchange translation adjustments – – – – (342) – (342)

Change in treasury stock in portfolio – – – 232 – (232) –

Other minor movements – – – – – (11) (11)

Net income (loss) – – – – – (445) (445)

Balance at December 31, 2001 2,753 1,636 659 282 28 6,812 12,170

(*) The above dividends per share are translated in euros using the fixed exchange rate established on December 31, 1998 of Euro 1 = Lire 1,936.27 and takes into account the reverse stock

split which took place in 1999.

Capital stock

The capital stock paid in at December 31, 2001 is 2,753 million euros, equal to No. 550,605,000 shares, and consists of:

❚ 367,399,890 ordinary shares

❚ 103,292,310 preference shares

❚ 79,912,800 savings shares,

all with a par value of 5 euros each.

On June 23, 1999, the Stockholders’ Meeting approved the redenomination of the capital stock into euros. The par value of the

5,506,050,000 shares outstanding, equivalent to 0.52 euros each, was rounded down to 0.5 euros. As a result, the value of the

capital stock decreased by 91 million euros and this amount was transferred to the legal reserve. A subsequent reverse stock

split, carried out by exchanging 10 shares with a par value of 0.5 euros each for one share with a par value of 5 euros, reduced

the number of shares to 550,605,000.

Legal reserve

The legal reserve amounts to 659 million euros at December 31, 2001 and did not change in respect of December 31, 2000.

At December 31, 2001, the legal reserve exceeds one-fifth of capital stock.

Cumulative translation adjustments

Cumulative translation adjustments of 28 million euros decreased by 342 million euros from December 31, 2000 mainly as a

result of the devaluation of the Argentine peso and the Brazilian real.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 25

25


26

26

Retained earnings and Other reserves

Retained earnings and Other reserves include not only the undistributed earnings of the consolidated companies, but also

monetary revaluation reserves and other reserves in suspension of taxes.

Reconciliation to Stockholders’ equity and Net income of the Parent company Fiat S.p.A.

Stockholders’ Net Stockholders’ Net

equity at income equity at income

(in millions of euros) 12/31/2001 2001 12/31/2000 2000

Statutory financial statements of Fiat S.p.A.

Elimination of carrying value of consolidated investments and the related

7,169 379 7,143 692

dividend income recorded in the statutory financial statements of Fiat S.p.A. (7,550) (465) (7,488) (490)

Equity and results of operations of consolidated companies 12,699 (373) 13,879 937

Consolidation adjustments:

Elimination of intra-Group dividends

Elimination of intra-Group profit and losses in inventories,

– (169) – (193)

investments, property, plant and equipment and other adjustments (148) 183 (214) (282)

Consolidated financial statements 12,170 (445) 13,320 664

Minority interest

The minority interest in stockholders’ equity of 1,437 million euros (1,889 million euros at December 31, 2000) refers to the

following companies consolidated on a line-by-line basis:

At 12/31/2001 At 12/31/2000

(% held by (% held by

minority minority

stockholders) stockholders)

Italian companies:

IPI S.p.A. 34.1 34.0

Toro Assicurazioni S.p.A. – 0.5

Foreign companies:

CNH Global N.V. 15.4 15.4

Fiat Auto Holdings B.V. 20.0 20.0

Fiat Hitachi Ex. Deutschland GmbH 30.0 30.0

Iveco Ford Truck Ltd. 15.2 15.2

Magneti Marelli Denso S.A. – 49.0

10 Reserves for risks and charges

(in millions of euros) At 12/31/2001 At 12/31/2000 Change

Reserve for pensions and similar obligations 1,465 1,515 (50)

Income tax reserves:

Current income tax reserve 170 134 36

Deferred income tax reserve 1,438 1,042 396

Total Income tax reserves 1,608 1,176 432

Other reserves:

Warranty reserve 877 1,008 (131)

Restructuring reserves 688 953 (295)

Various liabilities and risk reserves 2,233 2,616 (353)

Total Other reserves 3,798 4,577 (779)

Consolidation reserve for future risks and charges – 32 (32)

Insurance policy liabilities and accruals 15,802 12,616 3,186

Total Reserves for risks and charges 22,673 19,916 2,757


Reserve for pensions and similar obligations

The reserve includes provisions for pensions and similar obligations determined on an actuarial basis, where applicable, and

payable to employees and former employees according to contractual agreements or by law. The net decrease is due to the net

reduction in the number of employees of the Group during the course of the year, also on account of the spin-off of the

businesses to Global Value Services and the joint ventures with General Motors.

Income tax reserves

The Deferred income tax reserve at December 31, 2001 includes deferred tax liabilities, net of deferred tax assets, which have

been offset where possible by the individual companies. The Deferred income tax reserve, net of Deferred tax assets recorded

under Other receivables from others, is composed as follows:

(in millions of euros) At 12/31/2001 At 12/31/2000 Change

Deferred income tax reserve 1,438 1,042 396

Deferred tax assets (3,033) (2,049) (984)

Total (1,595) (1,007) (588)

The net change of -588 million euros from December 31, 2000 is mainly due to the effect of recording deferred tax assets to

account for the benefits deriving from tax losses which are reasonably certain of being recovered.

The Deferred income tax reserve, net of Deferred tax assets recorded under Other receivables from others, can be analyzed as follows:

(in millions of euros) At 12/31/2001 At 12/31/2000

Deferred tax liabilities for:

Accelerated depreciation 631 704

Deferred tax on gains 176 220

Capital investment grants 6 4

Other 705 821

Total Deferred tax liabilities 1,518 1,749

Deferred tax assets for:

Reserves for risks and taxed charges (1,117) (1,325)

Inventories (123) (207)

Taxed allowance for doubtful accounts (273) (208)

Pension funds (244) (243)

Other (511) (531)

Total Deferred tax assets (2,268) (2,514)

Theoretical tax benefit connected to tax loss carryforwards (2,938) (1,812)

Adjustments for assets whose recoverability is uncertain (mainly tax loss carryforwards) 2,093 1,570

Total Deferred income tax reserve, net of Deferred tax assets (1,595) (1,007)

As disclosed in the Accounting Principles, in recording deferred tax assets, each company in the Group critically evaluated whether the

conditions existed for the future recoverability of such assets on the basis of updated strategic plans, accompanied by the related tax

plans. For this reason, the total theoretical future tax benefits deriving from net temporary timing differences (2,268 million euros) and

the tax loss carryforwards (2,938 million euros) have prudently not been recorded for a total of 2,093 million euros.

In particular, the Deferred tax reserve includes 1,346 million euros (734 million euros at December 31, 2000) of tax benefits

connected to tax loss carryforwards. Moreover, a further tax benefit connected to tax loss carryforwards has not been recorded

in the financial statements for 1,592 million euros (1,078 million euros at December 31, 2000).

Deferred taxes have not been provided on the undistributed earnings of subsidiaries since no transactions are expected to be

entered into that would warrant their taxation.

Deferred taxes have not been provided on temporary timing differences of 143 million euros (158 million euros at December 31,

2000) relating to reserves and provisions in abeyance of taxes, since they are not expected to be used in a manner which would

warrant their taxation.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 27

27


28

28

Other reserves

Restructuring reserves amount to 688 million euros at December 31, 2001 (953 million euros at December 31, 2000) and are

related to the corporate restructuring programs of the following Sectors (in millions of euros): Automobile 184 (300 at December

31, 2000), Agricultural and Construction Equipment 337 (587 at December 31, 2000), Commercial Vehicles 55 (24 at December

31, 2000), Metallurgical Products 17 (23 at December 31, 2000), Components 52 (8 at December 31, 2000), Production Systems

5 (11 at December 31, 2000), Aviation 30, Other Sectors 8.

The Various liabilities and risk reserves amount to 2,233 million euros at December 31, 2001 (2,616 million euros at December

31, 2000) and represent the amounts set aside by individual companies of the Group principally in connection with contractual

and commercial risks and disputes. The decrease of 383 million euros compared to December 31, 2000 is the result of a

combination of ordinary provisions of 602 million euros, extraordinary provisions of 232 million euros, and decreases for

utilizations and other changes of 1,217 million euros.

Consolidation reserve for future risks and charges

The reserve was set up at the time of the consolidation of a new subsidiary (see Principles of consolidation) and was entirely

utilized during the year.

11 Reserve for employee severance indemnities

Use

At and Other At

(in millions of euros) 12/31/2000 Accrual changes 12/31/2001

Reserve for employee severance indemnities 2,017 315 (597) 1,735

The total reserve for employee severance indemnities amounts to 1,735 million euros at December 31, 2001 (2,017 million euros

at December 31, 2000) and includes the severance indemnities accrued in favor of employees at year-end by the companies in

conformity with existing laws. Use and Other changes mainly include a reduction of 173 million euros for the exclusion from the

scope of consolidation of the businesses contributed to Global Value and the joint ventures with General Motors, and also Fenice

S.p.A.

12 Payables

Payables may be analyzed by due date as follows:

At 12/31/2001 At 12/31/2000

Due Due Of which Due Due Of which

(in millions of euros)

within

one year

beyond

one year

due beyond

five years Total

within

one year

beyond

one year

due beyond

five years Total

Bonds 2,118 11,290 3,798 13,408 2,489 8,600 2,190 11,089

Borrowings from banks 7,701 5,910 465 13,611 8,380 5,214 1,063 13,594

Other financial payables 1,172 466 116 1,638 1,731 786 142 2,517

Advances 3,978 4,078 – 8,056 3,411 3,332 – 6,743

Trade payables 12,112 250 1 12,362 11,066 118 – 11,184

Notes payable 3,298 626 37 3,924 4,500 672 53 5,172

Payables to unconsolidated subsidiaries 96 – – 96 61 – – 61

Payables to associated companies 1,803 – – 1,803 683 – – 683

Taxes payable 1,178 58 2 1,236 1,593 63 – 1,656

Social security payable 331 2 – 333 364 2 – 366

Other payables 1,653 261 – 1,914 1,488 225 – 1,713

Total Payables 35,440 22,941 4,419 58,381 35,766 19,012 3,448 54,778


Payables may be analyzed by type as follows:

At 12/31/2001 At 12/31/2000

(in millions of euros) Trade Financial Other Total Trade Financial Other Total

Bonds – 13,408 – 13,408 – 11,089 – 11,089

Borrowings from banks – 13,611 – 13,611 – 13,594 – 13,594

Other financial payables – 1,638 – 1,638 – 2,517 – 2,517

Advances – – 8,056 8,056 – – 6,743 6,743

Trade payables 12,362 – – 12,362 11,184 – – 11,184

Notes payable 19 3,905 – 3,924 16 5,156 – 5,172

Payables to unconsolidated subsidiaries 10 85 1 96 20 35 6 61

Payables to associated companies 1,129 50 624 1,803 585 98 – 683

Taxes payable – – 1,236 1,236 – – 1,656 1,656

Social security payable – – 333 333 – – 366 366

Other payables – – 1,914 1,914 – – 1,713 1,713

Total Payables 13,520 32,697 12,164 58,381 11,805 32,489 10,484 54,778

The increase in Payables (3,603 million euros) compared to December 31, 2000 is mainly due to the following reasons:

❚ an increase in Trade payables of 1,715 million euros, of which 110 million euros are for the changes in the scope of

consolidation, and 668 million euros to higher exchange flows with the new joint ventures. Net of these factors, trade payable

exposure went from 74 days in 2000 to 79 days in 2001 due to a different mix in supplier payment terms;

❚ an increase in Financial payables of 208 million euros mainly to meet the financing requirements connected with the higher

receivables of the financial companies. In particular, the increase in bonds (2,319 million euros) is mainly due to greater

recourse to the international capital markets as an alternative to the more traditional sources of financing, with the added

objective of increasing the portion of debt in medium/long-term positions;

❚ an increase in Other payables of 1,680 million euros specifically due to higher advances received from customers of 1,313

million euros, of which 417 million euros refer to advances against long-term contracts in progress, and 629 million euros to

Fiat S.p.A.’s business as the general contractor on the High-Speed Railway Project.

Financial payables total 32,697 million euros at December 31, 2001 (32,489 million euros at December 31, 2000). Financial

payables due within one year amount to 14,408 million euros at December 31, 2001 (17,217 million euros at December 31,2000)

and their carrying values approximate fair value as a consequence of the short-term maturity.

The portion of medium and long-term financial payables due beyond one year amounts to 18,289 million euros at December 31,

2001 (15,272 million euros at December 31, 2000). The scheduled maturities are:

(in millions of euros) 2003 2004 2005 2006 Thereafter Total

Medium and long-term debt due beyond one year 4,704 3,175 3,114 2,880 4,416 18,289

The fair value of medium and long-term debt due beyond one year would be approximately 403 million euros lower than the

carrying value at December 31, 2001 (at December 31, 2000, approximately 810 million euros lower than the carrying value).

The fair values of such debt take into account the current market cost of such funding with similar maturities, and, for bonds,

their market prices.

The interest rates and the nominal currencies of medium and long-term debt, including the current portion of 5,547 million euros

at December 31, 2001 (6,060 million euros at December 31, 2000) are as follows:

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 29

29


30

30

Less From 5% From 7.5% From 10% Greater

(in millions of euros) than 5% to 7.5% to 10% to 12.5% than 12.5% Total

Euro and euro-zone currencies 8,530 9,328 490 11 14 18,373

U.S. dollar 1,230 1,659 74 6 28 2,997

Japanese yen 486 – – – – 486

Brazilian real 58 – 368 1 571 998

British pound – 634 – – – 634

Canadian dollar 149 – – – – 149

Other 20 – 7 36 136 199

Total 2001 medium and long-term debt 10,473 11,621 939 54 749 23,836

Total 2000 medium and long-term debt 8,949 10,705 1,184 41 453 21,332

Financial payables with nominal rates in excess of 12.5% relate to companies operating principally in Brazil.

Financial payables secured by mortgages and other liens on property, plant and equipment amount to 309 million euros at

December 31, 2001 (282 million euros at December 31, 2000).

At December 31, 2001, the Group had unused short-term lines of credit in euro and foreign currency of about 12,700 million

euros (11,400 million euros at December 31, 2000), including approximately 4,500 million euros (4,500 million euros at December

31, 2000) with a medium and long-term commitment.

13 Accrued expenses and deferred income

(in millions of euros) At 12/31/2001 At 12/31/2000

Commercial accrued expenses:

Accrued interest and commissions 76 206

Other 552 436

Total commercial accrued expenses 628 642

Commercial deferred income:

Interest 118 176

Other 753 590

Total commercial deferred income 871 766

Financial accrued expenses 797 649

Financial deferred income 2,057 1,778

Total Accrued expenses and deferred income 4,353 3,835

Financial accrued expenses include interest expense on financial payables for the part referring to the current year. The increase

of 148 million euros is mainly due, besides higher financial debt, to an increase in the contracts to hedge interest rate and foreign

exchange exposure.

Financial deferred income includes deferred interest income on the portfolio of the financial services companies.


14 Memorandum accounts

Guarantees granted

(in millions of euros) At 12/31/2001 At 12/31/2000

Guarantees granted

Unsecured guarantees

Suretyships:

on behalf of unconsolidated subsidiaries 26 30

on behalf of associated companies 29 72

on behalf of others 1,397 1,404

Total Suretyships 1,452 1,506

Guarantees of notes:

on behalf of others 229 161

Total Guarantees of notes 229 161

Other unsecured guarantees:

on behalf of unconsolidated subsidiaries 22 –

on behalf of associated companies 508 427

on behalf of others 2,939 2,164

Total Other unsecured guarantees 3,469 2,591

Total Unsecured guarantees 5,150 4,258

Secured guarantees

on behalf of unconsolidated subsidiaries – 56

on behalf of others 471 342

Total Secured guarantees 471 398

Total Guarantees granted 5,621 4,656

At December 31, 2001 Guarantees granted by the Group totaled 5,621 million euros (4,656 million euros at December 31, 2000),

detailed as follows:

❚ Suretyships total 1,452 million euros (1,506 million euros at December 31, 2000) and mostly guarantee the successful

completion of contracts in progress;

❚ Other unsecured guarantees of 3,469 million euros (2,591 million euros at December 31, 2000) include commitments for

receivables and bills discounted with recourse in the amount of 2,629 million euros (1,806 million euros at December 31,

2000). The receivables and bills discounted with recourse refer to trade receivables and other receivables for 2,473 million

euros (1,725 million euros at December 31, 2000) and financial receivables for 156 million euros (81 million euros at December

31, 2000). The volume of receivables discounted with recourse in 2001 was 9,593 million euros (4,025 million euros in 2000).

Although not included in the memorandum accounts, receivables and bills discounted by the Group without recourse having due

dates beyond December 31, 2001 amounted to 13,372 million euros (in 2000, 11,719 million euros with due dates beyond

December 31, 2000). Receivables and bills discounted without recourse refer to trade receivables and other receivables for 4,859

million euros (5,259 million euros at December 31, 2000) and financial receivables for 8,513 million euros (6,460 million euros at

December 31, 2000). The discounting of financial receivables principally refers to securitization transactions involving accounts

receivables from the final (retail) customers of the financial services companies. The accounting treatment for securitization

transactions is disclosed in the Accounting Principles. The volume of receivables and bills discounted without recourse in 2001

was 29,593 million euros (20,351 million euros in 2000).

The Parent Company and certain of its subsidiaries are involved in various legal actions and disputes. However, the settlement of

such actions and disputes should not give rise to significant losses or liabilities which have not already been set aside in specific

risk reserves.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 31

31


32

32

Commitments

(in millions of euros) At 12/31/2001 At 12/31/2000

Commitments related to derivative financial instruments 53,171 34,548

Commitments to purchase property, plant and equipment 710 1,132

Commitments for contracts in progress 194 87

Other commitments 5,328 4,789

Total Commitments 59,403 40,556

Commitments amounted to 59,403 million euros at December 31, 2001 (40,556 million euros at December 31, 2000) and include

derivative financial instruments of 53,171 million euros at December 31, 2001 (34,548 million euros at December 31, 2000).

As of December 31, 2001, the total outstanding amount of such instruments is as follows:

❚ contracts to hedge foreign exchange risks of 11,550 million euros (8,366 million euros at December 31, 2000);

❚ contracts to hedge interest rate exposure of 34,485 million euros (21,266 million euros at December 31, 2000);

❚ contracts for combined hedging of foreign exchange and interest rate risks of 7,136 million euros (4,916 million euros

at December 31, 2000).

The changes in the notional contract account compared to December 31, 2000 are mainly attributable to the following:

❚ with reference to the contracts to hedge foreign exchange risks (relating to trading and financial flows and positions), the

increase is mainly attributable to the extension of the timeframe for the hedges of trading flows and the use of hedging

strategies which involve several contracts to hedge a single exposure (multileg);

❚ with reference to the contracts to hedge interest rate exposure, about half of the increase relates to contracts to hedge

transactions for the securitization of financial receivables and the remaining amount principally regards contracts to hedge

the interest rate risk connected with financing transactions of the Group;

❚ with reference to the contracts for the combined hedging of foreign exchange and interest rate risks, the increase is chiefly

due to contracts to hedge financing destined to companies of the Group that are in a functional currency other than the euro

(mainly US dollars).

Such transactions, reflecting the notional principal amount, should not be subject to risks owing to non-fulfillment by the

counterparties insofar as the contracts are entered into with several primary national and international financial institutions.

Approximately 39% of the contracts outstanding at December 31, 2001 will expire during 2002 and the remainder in the period

2003-2021. The consolidated statement of operations includes the effects both of the contracts that expired in 2001 and the

accruals for the contracts expiring after December 31, 2001 as stated in the Accounting Principles.

The Group’s financial policy attaches particular importance to the management and control of financial risks in that they can

significantly impact profits. The Group has adopted a series of guidelines regarding the management of exchange rate and

interest rate exposure. The Group’s policy allows derivative financial instruments to be used only for managing exchange and

interest rate risks connected to balance sheet flows and assets and liabilities, and not for speculative purposes.

In 2001, foreign exchange risk management followed the aforementioned policy and maintained the character of selectivity. The

reduction in exchange exposure, substantially originating from the positive balance between exports and imports, was based on

the expected trend in exchange rates and the need to hedge the exchange levels of reference without completely foregoing the

benefits deriving from a favorable trend in the rates. This year too, the management of exchange risks was based principally on

a combination of currency options.

In 2001, the management of interest rate exposure also followed the aforementioned guidelines which state that derivative

financial instruments should be used to reach a fixed exposure level and minimize financing costs, and to ensure a correct

matching of financing and investments by the financial services companies.

The derivative financial instruments principally relate to foreign forward exchange contracts, currency swaps and currency options

or, as regards interest rate risks, interest rate swaps, forward rate agreements and options on interest rates, as well as interest

rate and currency swaps for the combined management of currency and interest rate risks.


A comparison of the carrying values and the fair values of derivative financial instruments by contract type is set forth below:

At 12/31/2001 At 12/31/2000

(in millions of euros)

Carrying

value

Fair

value Difference

Carrying

value

Fair

value Difference

Foreign exchange risk management instruments (38) (34) 4 237 219 (18)

Interest rate risk management instruments 95 7 (88) 33 (41) (74)

Foreign exchange and interest rate risk management instruments (262) (403) (141) (12) (71) (59)

Total (205) (430) (225) 258 107 (151)

The fair value of derivative financial instruments for exchange rate and interest rate risk management instruments listed above

was estimated based on market quotes at year-end of instruments with similar characteristics and maturities.

The difference between the “Carrying value” and “Fair Value” is mainly due to the accounting principles adopted for the valuation

of the financial instruments designated as hedges. As disclosed in the Accounting Principles, it is not possible to completely

adopt IAS 39 under current Italian law since all derivative financial instruments would have to be recorded at fair value in the

financial statements, including those designated as hedges. The latter, instead, have been valued symmetrically with the

underlying hedged item. Therefore, where the hedged item has not been adjusted to fair value in the financial statements, the

hedging financial instruments have also not been adjusted. Similarly, where the hedged item has not yet been recorded in the

financial statements (hedging of future flows), the valuation of the hedging instrument at fair value has been postponed.

At December 31, 2001, had IAS 39 been completely adopted a negative adjustment of 225 million euros (151 million euros at

December 31, 2000) would have been made to the carrying value of derivative financial instruments to arrive at fair value and a

positive adjustment of 13 million euros (71 million euros at December 31, 2000) would have been made to hedged balance sheet

items (receivables, payables and securities) to arrive at fair value and, for the part relating to the hedging of future flows, the

reserves in stockholders’ equity would have been reduced by 192 million euros (71 millions euros at December 31, 2000), after

having set aside a deferred income tax reserve. The complete adoption of IAS 39, on the other hand, would not have had any

effect on the net result for the year.

Other commitments amounted to 5,328 million euros at December 31, 2001 (4,789 million euros at December 31, 2000) and

include commitments of 3,728 million euros (3,562 million euros at December 31, 2000) under the contracts between Fiat S.p.A.

and Treno Alta Velocità T.A.V. S.p.A. for the design and construction of a high-speed railway lines between Bologna – Florence

and Turin – Milan.

Finally, in September 2000, the European Union issued Directive 2000/53/CE relative to end-of-life-vehicles. This Directive,

among other things, provides that, in the future, vehicle manufacturers will have to bear all, or a significant part of, the costs

arising from the collection, treatment and recovery of end-of-life vehicles. The above Directive should be introduced into the

national legislation of the individual member states by April 2002 and would become applicable for all vehicles placed on the

market starting from July 2002; beginning January 2007, instead, all vehicles on the market will be covered, even those placed

before July 2002. The Group is still evaluating the effects which could arise from the national laws introducing this Directive,

but in the absence of certain or reliable elements as to the quantification of future expenses that will eventually be borne by the

Group, no provision has been set aside in the consolidated financial statements at December 31, 2001. Nevertheless, this does

not exclude the possibility that, after the law has been passed, the impact could be quantified and recorded during 2002.

Group assets held by third parties

Group assets held by third parties amounted to 19,372 million euros at December 31, 2001 (13,179 million euros at December

31, 2000), with an increase of 6,193 million euros. They include securities deposited with banks and other financial institutions

totaling 16,451 million euros (10,522 million euros at December 31, 2000). These securities are mostly owned by insurance

companies. This item also includes tangible fixed assets, products and goods of some Automotive Sectors held by outside

suppliers for processing, which totaled 2,921 million euros (2,657 million euros at December 31, 2000).

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 33

33


34

34

15 Value of production

Revenues from sales and services and Change in contract work in progress

Revenues from sales and services and Change in contract work in progress amounted to 58,006 million euros in 2001 compared

to 57,555 million euros in 2000. They include revenues from sales and services of 57,575 million euros (57,603 million euros in

2000) and the change in contract work in progress of 431 million euros (-48 million euros in 2000).

The Fiat Group is subdivided into business sectors and operates in various geographical areas. The distribution by business

sector of Revenues from sales and services and Change in contract work in progress (net of intra-Group transactions) is as follows:

(in millions of euros) 2001 2000 1999

Revenues from sales and services and Change in contract work in progress by operating sector

Automobiles 24,177 25,015 23,787

Agricultural and Construction Equipment 10,762 10,753 5,232

Commercial Vehicles 8,120 8,112 7,074

Metallurgical Products 1,429 1,420 1,211

Components 2,438 2,495 2,286

Production Systems 1,510 1,666 1,219

Aviation 1,632 1,482 1,349

Publishing and Communications 334 343 321

Insurance 5,369 4,353 3,922

Services (*) 762 n.a. n.a.

Other companies (**) 1,473 1,916 1,722

Total Revenues from sales and services and Change in contract work in progress 58,006 57,555 48,123

(*) The results of the companies that are now grouped under the newly formed Services Sector, were reported under “Other companies” in the years 2000 and 1999.

(**) “Other companies” also include the revenues of the Rolling Stock and Railway Systems Sector which was deconsolidated from the Group financial statements as from August 1, 2000.

Net revenues by area of destination may be analyzed as follows:

(in millions of euros) 2001 2000 1999

Revenues from sales and services and Change in contract work in progress by destination

Italy 19,954 19,023 18,527

Europe (excluding Italy) 22,541 22,853 19,730

North America 7,531 7,472 3,789

Mercosur 4,221 4,483 3,665

Other areas 3,759 3,724 2,412

Total Revenues from sales and services and Change in contract work in progress 58,006 57,555 48,123

Other income and revenues

(in millions of euros) 2001 2000 1999

Revenues grants 79 43 33

Capital gains 383 438 299

Prior period income 476 620 500

Investment grants 93 123 246

Other income 1,214 1,195 761

Total Other income and revenues 2,245 2,419 1,839

Capital gains from the sale of fixed assets of 383 million euros (438 million euros in 2000) are due especially to disposals of nonstrategic

activities consequent to the policy to reduce invested capital. The gains realized on the sale of non-strategic properties

totaled 287 million euros (259 million euros at December 31, 2000).

Other income includes sundry income and income which cannot be classified as revenues from sales and services. The caption

includes royalties, refunds of customs and export duties, miscellaneous cost recoveries, as well as rental and other building

income of the insurance companies for 54 million euros in 2001 (51 million euros in 2000).


16 Costs of production

The Costs of production amount to 61,009 million euros (60,388 million euros in 2000), an increase of 1% compared to 2000.

The main components of this item and the changes that occurred during the period can be described as follows:

Raw materials, supplies and merchandise

Raw materials, supplies and merchandise amount to 31,255 million euros, with an increase of 0.4% compared to 2000. The total

is equal to 53.9% of revenues (54.1% in 2000).

Services

Services amount to 9,835 million euros, with an increase of 8.8% compared to 2000. This amount is equal to 17% of revenues

(15.7% in 2000). Services include advertising costs, outside information technology and telecommunication service costs,

maintenance costs and transportation costs. The outsourcing of certain manufacturing and service activities accounts for most

of the increase.

Personnel

Personnel costs consist of the following:

(in millions of euros) 2001 2000 1999

Salaries and wages 5,862 6,140 5,430

Social security contributions 1,551 1,710 1,630

Employees severance indemnities 315 353 333

Employees pensions and similar obligations 122 139 59

Other costs 319 353 196

Total Personnel costs 8,169 8,695 7,648

Personnel costs amount to 8,169 million euros in 2001, a decrease of 6% compared to 2000 principally due to the effects of the

changes in the scope of consolidation. Personnel costs are equal to 14.1% of revenues (15.1% in 2000).

An analysis of the average number of employees by category is provided as follows:

2001 2000 1999

Companies Companies Companies

Companies consolidated Companies consolidated Companies consolidated

consolidated by the consolidated by the consolidated by the

on a proportional on a proportional on a proportional

line-by-line

basis

integration

method Total

line-by-line

basis

integration

method Total

line-by-line

basis

integration

method Total

Average number of employees

Managers 3,500 39 3,539 3,981 34 4,015 3,791 27 3,818

White-collar 69,299 1,823 71,122 73,977 2,333 76,310 69,015 1,403 70,418

Blue-collar 135,945 3,566 139,511 144,438 5,781 150,219 145,626 3,190 148,816

Total 208,744 5,428 214,172 222,396 8,148 230,544 218,432 4,620 223,052

The average number of employees in 2001 is equal to 214,172, a decrease of 16,372 compared to 2000. Such reduction is

mainly due to the deconsolidation of the Powertrain business, the sale of Fenice S.p.A. and the contribution of ITS and GSA

to the Global Value joint ventures.

Provisions for risks

Provisions for risks of 1,038 million euros in 2001 (1,047 million euros in 2000) relate to adjustments made to the vehicle

warranty reserve, mainly in the Automotive Sectors for 417 million euros (536 million euros in 2000), and to other reserves

connected with industrial risks for 621 million euros (511 million euros in 2000).

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 35

35


36

36

Other operating costs

(in millions of euros) 2001 2000 1999

Loss on sale of fixed assets 137 82 121

Prior period expenses 198 179 137

Indirect and other taxes 260 287 276

Sundry expenses 714 910 731

Total Other operating costs 1,309 1,458 1,265

Insurance claims and other insurance costs

Insurance claims and other costs amount to 4,690 million euros in 2001 (4,022 million euros in 2000). The increase over 2000,

net of the effect of the consolidation of the Lloyd Italico Group (211 million euros), is 11.4% and reflects a higher volume of

insurance premiums, mainly in Life insurance.

17 Financial income and expenses

Investment income

(in millions of euros) 2001 2000 1999

Dividends 102 79 23

Tax credit on dividends 112 130 154

Gain on sale of investments classified in current assets 50 169 112

Total Investment income 264 378 289

Investment income of 264 million euros in 2001 (378 million euros in 2000) shows a decrease of 114 million euros and includes

income from unconsolidated subsidiaries of 79 million euros (82 million euros in 2000), from associated companies of 1 million

euros (6 million euros in 2000) and from other companies of 184 million euros (290 million euros in 2000).

Dividends were mainly received from minor investments valued at cost. They include dividends received on General Motors

shares for 72 million euros (35 million euros in the second half of 2000).

The Gain on sale of investments classified in current assets shows a decrease of 119 million euros compared to 2000 and refers

to trading, conducted primarily by insurance companies, which was affected by the fall in stock market prices.

Other financial income

The following analysis of “Other financial income” and “Interest and other financial expenses” present the amounts shown in the

related captions on the statement of operations and also the amounts of income and expenses of the Group’s financial companies

presented in the captions on the statement of operations under “Revenues from sales and services” and “Interest and other

expenses of financial services companies”, respectively. The last line in the table shows “Other financial income” and “Interest

and other financial expenses” as shown on the statement of operations, excluding the financial activities.


(in millions of euros) 2001 2000 1999

Other financial income from:

receivables from others held as fixed assets 2 5 6

securities held as fixed assets other than equity investments 253 203 86

securities held as current assets other than equity investments 301 96 162

Other income from:

unconsolidated subsidiaries 11 22 12

associated companies 22 17 7

others:

bank and other interest 302 349 203

customer interest and lease income 2,154 1,976 1,492

discounts and other income 284 233 246

income from derivative financial instruments 1,075 802 1,212

Total from others 3,815 3,360 3,153

Total Other income 3,848 3,399 3,172

Total Other financial income 4,404 3,703 3,426

of which:

Other financial income, excluding financial activities 2,188 1,655 1,870

Interest and other financial expenses

(in millions of euros) 2001 2000 1999

Interest and other financial expenses:

unconsolidated subsidiaries 3 5 7

associated companies 10 14 9

others:

bond interest 625 457 136

bank interest 799 684 598

interest on trade and other payables 63 45 38

interest on notes payable 202 250 173

interest on other financial payables 343 409 132

discounts and other expenses 511 580 350

expenses from derivative financial instruments 1,255 1,126 935

loss on sale of securities 78 54 44

foreign exchange losses, net 147 9 532

Total interest and other financial expenses - others 4,023 3,614 2,938

Total Interest and other financial expenses 4,036 3,633 2,954

of which:

Interest and other financial expenses, excluding financial activities 3,132 2,650 2,260

Foreign exchange losses, net, of 147 million euros (foreign exchange losses, net, of 9 million euros in 2000), represent the

balance between foreign exchange gains of 1,535 million euros in 2001 (1,733 million euros in 2000) and foreign exchange losses

of 1,682 million euros in 2001 (1,742 million euros in 2000).

The balance between income (1,075 million euros) and expenses (1,255 million euros) from derivative financial instruments shows

a net balance of expenses of 180 million euros (expenses of 324 million euros in 2000).

The net negative balance (327 million euros in 2001 and 333 million euros in 2000) between the net foreign exchange losses and

the expense/income from derivative financial instruments is largely caused by the interest differentials connected with the hedging

of financing and other positions in foreign currency relating to Brazil and Argentina. The remaining amount chiefly pertains to the

interest differentials on transactions to hedge the interest rate and exchange risk on financing of the Group (mainly bond issues).

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 37

37


38

38

The balance of Interest income and other financial income (3,329 million euros) and Interest expense and other financial expense

(2,634 million euros), including the results of the financial companies, shows a balance of financial income of 695 million euros

(403 million euros in 2000). The increase of 292 million euros over 2000 is the result of higher interest income on securities for

255 million euros and the net balance of interest income and expenses of 37 million euros.

Loss on sale of securities (78 million euros) includes the loss of 40 million euros on the sales of investments not held as fixed

assets.

The caption Discounts and other expenses includes receivables discounting and securitization expenses for 251 million euros

in 2001 (178 million euros in 2000).

18 Adjustments to financial assets

(in millions of euros) 2001 2000 1999

Revaluations:

Equity investments 204 206 183

Financial fixed assets other than equity investments 38 41 51

Securities in current assets other than equity investments 12 6 1

Total Revaluations 254 253 235

Writedowns:

Equity investments 577 280 111

Financial fixed assets other than equity investments 128 43 74

Securities in current assets other than equity investments 28 25 37

Financial receivables 15 7 9

Total Writedowns 748 355 231

Total Adjustments to financial assets (494) (102) 4

Revaluations and Writedowns of equity investments also include the share of the net income and losses of companies accounted

for using the equity method.

Revaluations of equity investments of 204 million euros in 2001 (206 million euros in 2000) include the share of the earnings

of the following companies (in millions of euros): BUC – Banca Unione di Credito 33 (30 in 2000), Leasys S.p.A. 22, Europe

Assistance Holding S.A. 8 (9 in 2000), other companies of CNH Global N.V. 24 (18 in 2000), investments in insurance companies

59 (54 in 2000), other companies 58 (95 in 2000).

Writedowns of equity investments of 577 million euros in 2001 (280 million euros in 2000) include the share of the losses of

the following companies (in millions of euros): Italenergia S.p.A. 34, Atlanet S.p.A. 21 (6 in 2000), H.d.P. S.p.A. 23 (revaluation

for 4 in 2000), other companies of CNH Global N.V. 32 (9 in 2000), companies in the Automobile Sector operating in Turkey 33

(revaluations for 10 and writedowns for 4 in 2000), companies in the Automobile Sector operating in China 15 (12 in 2000),

other companies in the Automobile Sector 30 (14 in 2000), investments in insurance companies 313 (140 in 2000) and other

companies 76 (95 in 2000).


19 Extraordinary income and expenses

(in millions of euros) 2001 2000 1999

Extraordinary income

Gains on disposal of investments and other fixed assets 1,515 2,524 382

Other income:

Prior period income 51 7 2

Other income 79 226 170

Total Other income 130 233 172

Total Extraordinary income 1,645 2,757 554

Extraordinary expenses

Losses on disposal of investments and other fixed assets (56) (30) (14)

Taxes related to prior years (18) (5) (9)

Other expenses:

Extraordinary provisions to reserves (483) (1,106) (130)

Other extraordinary expenses (713) (695) (63)

Prior period expenses (16) (7) (5)

Total Other expenses (1,212) (1,808) (198)

Total Extraordinary expenses (1,286) (1,843) (221)

Total Extraordinary income and expenses 359 914 333

Gains on disposals of investments and other fixed assets amount to 1,515 million euros in 2001 (2,524 million euros in 2000).

They include the gains on the following sales (in millions of euros): Fenice S.p.A. 481, contribution of Fiat Energia S.p.A. to

Italenergia S.p.A. 255, sale of the residual FiatAvio Power Services S.p.A. business 17, Climate Control Systems Division of

Magneti Marelli 329, sale of ITS and GSA business to set up the Global Value Services joint venture 165, contribution of the

Savarent business to Leasys S.p.A. 71, the remaining 49% stake in Alstom Ferroviaria - ex Fiat Ferroviaria 107, Banca di Roma

S.p.A. stock 20, H.d.P. S.p.A. stock 16, Denso Manufacturing Italia S.p.A. 13, Sinport Sinergie Portuali S.p.A. 8, other minor

investments 33.

In 2000, Gains on disposals of investments and other fixed assets amounted to 2,524 million euros. These referred to the gain

of 1,779 million euros on the sale of 20% of the capital stock of Fiat Auto Holdings B.V. to General Motors. They also included

the gains on the following sales (in millions of euros): Telexis/Atlanet 133, Fiat Ferroviaria 106, Fiat Lubrificanti 347, Rearview

Mirror of Magneti Marelli 46, H.d.P. stock 36, Unicredito stock 21, FAPS – Airplane Maintenance Services business segment 17,

Banca di Roma stock 6, mutual fund holdings 9, other minor investments 24.

Other extraordinary income of 79 million euros (226 million euros in 2000) refers to nonrecurring income of the individual

companies of the Group mainly for the release of reserves, extraordinary in nature, that proved in excess of requirements.

Extraordinary expenses of 1,286 million euros in 2001 (1,843 million euros in 2000) mainly include expenses related to corporate

restructuring and reorganization. About 850 millions euros of this amount are recorded in the financial statements in respect

of the specific plan voted by the Board of Directors on December 10, 2001 that calls for the rationalization, restructuring and

closing of plant facilities during the period 2002-2004. Extraordinary expenses in 2001 refer to following Sectors: Automobile

(628 millions euros), Agricultural and Construction Equipment (79 million euros) Commercial Vehicles (237 million euros),

Metallurgical Products (82 million euros), Components (108 million euros), Production Systems (30 million euros), Aviation

(30 million euros), Others (92 million euros).

Extraordinary expenses of 1,843 million euros in 2000 also included 460 million euros of nonrecurring extraordinary charges

incurred within the context of the agreement with General Motors, as well as nonrecurring extraordinary charges or restructuring

costs related to the reorganization of the Automobile Sector (113 million euros), the Agricultural and Construction Equipment

Sector (489 million euros) as a result of process now underway to integrate the Case Group acquired at the end of 1999, the

Commercial Vehicles Sector (79 million euros) and the Components Sector (152 million euros).

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 39

39


40

40

20 Income taxes

Income taxes recorded in the consolidated statement of operations in 2001, 2000 and 1999 are as follows:

(in millions of euros) 2001 2000 1999

Current taxes:

IRAP 156 203 201

Other taxes 652 796 407

Total Current taxes 808 999 608

Deferred taxes (514) (527) (90)

Total Income taxes 294 472 518

Income taxes paid by the Group in 2001 and 2000 approximately amounted to 747 million euros and 478 million euros,

respectively.

The reconciliation between the tax charge recorded in the consolidated financial statements and the theoretical tax charge,

calculated on the basis of the theoretical tax rates in effect in Italy, is the following:

(in millions of euros) 2001 2000 1999

Theoretical income taxes 217 836 796

Utilization of tax loss carryforwards (66) (73) (85)

Tax effect of permanent differences (117) (376) (21)

Tax effect of difference between foreign tax rates and theoretical Italian tax rates (192) (236) (205)

Deferred tax assets not provided 544 337 60

Other (92) (16) (27)

Income taxes recorded in financial statements (current and deferred income taxes) 294 472 518

In particular, the theoretical income taxes are calculated by applying the tax rate in effect in Italy of 36% (IRPEG) to the pretax

income and the rate of 4.25% to the value of production considered the taxable base for IRAP.

In 2001, owing to the loss reported by the Group, the effective tax rate is not significant (44.9% in 2000).

With reference to the above reconciliation, the permanent differences include exempt income for 279 million euros (562 million

euros in 2000) and net nondeductible costs of 162 million euros in 2001 (186 million euros in 2000).

Other of -92 million euros includes income subject to separate taxation for -118 million euros.

21 Other information

Assets by geographical area

(in millions of euros) At 12/31/2001 At 12/31/2000

Total Assets

At 12/31/1999

Europe 76,039 70,629 63,983

North America 15,353 15,584 8,525

Mercosur 6,939 7,312 6,330

Other areas 2,418 2,230 1,035

Total Assets 100,749 95,755 79,873


Capital expenditures by geographical area

Total Capital Expenditures

(in millions of euros) 2001 2000 1999

Europe 2,545 2,412 2,020

North America 555 374 109

Mercosur 249 371 463

Other areas 89 79 120

Total Capital expenditures 3,438 3,236 2,712

Operating income by geographical area

The following analysis of operating income by geographical area excludes the operating income of the Group’s insurance

companies for which operating profit is not an appropriate measurement of results.

Total Operating Income

(in millions of euros) 2001 2000 1999

Europe 23 873 566

North America 15 (325) 276

Mercosur 176 175 44

Other areas 8 196 (36)

Total Industrial activities 222 919 850

Insurance activities 96 (64) (62)

Total Operating income 318 855 788

Other segment information

Agricultural and Automotive- Other Other

Construction Commercial Related Diversified Companies (**)

(in millions of euros) Automobiles Equipment Vehicles Activities Insurance Sectors and Elimin. (***) Consolidation

2001

Net sales and revenues:

Third parties 24,177 10,762 8,120 5,377 5,369 2,728 1,473 58,006

Intersegment (*) 263 15 530 2,666 92 1,060 (4,626) –

Total 24,440 10,777 8,650 8,043 5,461 3,788 (3,153) 58,006

Operating income (549) 209 271 1 68 257 61 318

Depreciation and amortization 1,150 553 410 379 47 165 176 2,880

Capital expenditures 1,331 615 718 429 29 79 237 3,438

Total Assets 33,488 18,228 10,005 11,024 18,326 6,558 3,120 100,749

2000

Net sales and revenues:

Third parties 25,015 10,753 8,112 5,581 4,353 1,825 1,916 57,555

Intersegment (*) 346 17 499 3,183 10 20 (4,075) –

Total 25,361 10,770 8,611 8,764 4,363 1,845 (2,159) 57,555

Operating income 44 45 489 243 (56) 153 (63) 855

Depreciation and amortization 1,331 562 423 377 30 96 233 3,052

Capital expenditures 1,412 447 656 449 24 53 195 3,236

Total Assets 35,090 18,170 8,809 10,529 14,199 2,933 6,025 95,755

1999

Net sales and revenues:

Third parties 23,787 5,232 7,074 4,716 3,922 1,670 1,722 48,123

Intersegment (*) 314 14 313 2,721 – 104 (3,466) –

Total 24,101 5,246 7,387 7,437 3,922 1,774 (1,744) 48,123

Operating income (121) 371 311 227 (103) 126 (23) 788

Depreciation and amortization 1,348 117 253 338 28 92 178 2,354

Capital expenditures 1,464 178 359 417 97 50 147 2,712

Total Assets 35,379 10,432 7,797 9,680 12,054 2,673 1,858 79,873

(*) Intersegment net sales and revenues include revenues between consolidated Group companies relating to different Sectors. Intersegment sales are accounted for at transfer prices that are

substantially in line with market conditions.

(**) The operating income (loss) of “Other Companies” amounts to -33 million euros in 2001, 14 million euros in 2000 and 126 million euros in 1999.

(***) The column “Other Companies and Eliminations” also includes the Rolling Stock and Railway Systems Sector which was deconsolidated from the Group financial statements as from

August 1, 2000.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 41

41


42

42

Research and development expenses

Each year significant expenditures are borne by the Group for research and development programs that generally cover a period

of several years and which are charged to income in the year incurred.

In 2001 and 2000 direct research and development expenses were, respectively, 1,817 million euros and 1,725 million euros.

For some projects, the Group has applied for financing to the Italian government and the European Community under related

legislation.

Up to the end of 2001, applications for R&D incentives on multiyear projects with estimated expenditures of approximately

1,168 million euros were made to the above authorities for 201 million euros in low-rate loans and 454 million euros in grants,

which will also give rise to the receipt of incentives over the next few years. The amounts received during 2001 were 25 million

euros in low-rate loans and 31 million euros in grants. Of this amount, a cumulative total of 72 million euros in low-rate loans and

116 million euros in grants had been received by December 31, 2001.

The average interest rate on financing received for research and innovation at December 31, 2001 was 2.5% (2.7% for outstanding

financing at December 31, 2000).

Maintenance costs

Maintenance costs charged to income in 2001 and 2000 amounted to 696 million euros and 808 million euros, respectively.

Advertising costs

Advertising costs charged to income in 2001 and 2000 amounted to 1,185 million euros and 1,147 million euros, respectively.

Reconciliation of Stockholders’ Equity and Net Income (Loss) to US GAAP

Fiat S.p.A. is listed on the New York Stock Exchange through ordinary, preference and savings ADR (American Depositary

Receipt) certificates, each representing one share of the respective class of stock; for this reason, Fiat is required to file Form 20-

F which, among other things, includes a reconciliation of stockholders’ equity and net income to Generally Accepted Accounting

Principles in the United States (US GAAP). A summary of the major differences between the principles adopted by the Group and

US GAAP is provided below. A complete version of this note is contained in Form 20-F, which is available at the company’s head

office.

Revaluation of property, plant and equipment – Some companies of the Group have in the past revalued certain items of

tangible fixed assets in compliance with specific laws. US accounting principles do not allow this type of revaluation and require

that such assets be reinstated to their original values and depreciation be adjusted accordingly.

Goodwill – Up to December 31, 1993, goodwill (arising from an excess of the purchase price of a company over the current

value of the underlying net equity) was shown as a deduction from stockholders’ equity under Italian GAAP. Also, under Italian

accounting principles, goodwill is amortized over a period of not more than 20 years, taking into account its expected period of

recovery. Under US GAAP, goodwill is recorded as an intangible asset, and through to December 31, 2001, goodwill had to be

amortized to income over a period not in excess of 40 years. However, in June 2001, the Financial Accounting Standards Board

(FASB) issued Statement of Financial Accounting Standards (SFAS) No. 142, “Goodwill and Other Intangible Assets” (SFAS No.

142) which states that for goodwill acquired after June 30, 2001, no amortization is to be recorded from the acquisition date.

It also requires that effective January 1, 2002, no amortization should be recorded on goodwill. Goodwill is to be tested for

impairment at least annually.

Treasury stock – US accounting principles state that treasury stock must be shown as a deduction from stockholders’ equity

rather than be recorded in fixed assets. Moreover, US GAAP state that the effects of any writedowns and/or gains/losses on

treasury stock must be directly recorded in stockholders’ equity.

Restructuring costs – In the US, setting up reserves for restructuring costs is only possible when certain requisites are met as

established by a specific regulation (EITF 94-3); the reserves and related provisions set aside according to Italian accounting

principles but which do not meet such conditions are reversed.


Fair value of securities and bonds – US accounting principles establish different categories of securities depending on their

intended use: held to maturity, acquired for trading purposes, or available for sale. The securities included in financial fixed assets

(including listed stocks) have been classified in the latter category, and in accordance with US accounting principles they must

be stated at fair value. At the end of the year, the difference between the fair value and the carrying value, according to such

principles, must be shown as an adjustment to stockholders’ equity; according to the same principles, any differences between

the purchase price and the fair value at the date of purchase must be recorded in the statement of operations.

Deferred gains on disposals of fixed assets – US accounting principles require that when property, plant and equipment are sold

and are subsequently leased back, the gain on the sale must be deferred over the term of the lease, if certain conditions are met.

Deferred revenue recognition – Certain transactions which are recognized as sales under Italian GAAP on the basis of passage

of title are accounted for under US GAAP as financing or operating lease arrangements until the buyer resells or subsequently

consumes or uses the product, and the risks and rewards of ownership are effectively transferred, deferring the moment at which

revenues and margins are recognized.

Write-off of capitalized costs – The accounting principle of US GAAP, SOP 98-5, effective from 1999, requires that start-up

costs cannot be capitalized.

Accounting for derivative financial instruments and hedging activities – US GAAP require that an entity recognize all

derivatives as either assets or liabilities in the balance sheet and measure those instruments at fair value. If certain conditions are

met, a derivative may be specifically designated as (a) a fair value hedge with the changes in fair value recorded to income (which

for the effective portion would directly offset any changes in the hedged item), (b) a cash flow hedge with the changes in fair

value recorded directly to other comprehensive income (equity) and subsequently reclassified into earnings when the forecasted

transaction affects earnings. However, under Italian GAAP, for cash flow hedges, the derivatives are not marked to fair value.

Deferred income taxes – Commencing in 1998, the accounting principles applied by the Group for deferred income taxes are

substantially the same as US accounting principles, therefore, deferred income tax differences mainly pertain to those calculated

on other reconciliation adjustments, where applicable.

The reconciliations of Stockholders’ Equity and Net Income (Loss) to US accounting principles, based on the aforementioned

differences, are set forth as follows:

Reconciliation of Stockholders’ Equity in consolidated financial statements

(in millions of euros) At 12/31/2001 At 12/31/2000

Stockholders’ Equity in the consolidated financial statements 12,170 13,320

Revaluation of property, plant and equipment reversed (322) (375)

Goodwill 913 869

Treasury stock (282) (50)

Provision for restructuring reserve not consistent with EITF 94-3 296 452

Securities and bonds valued at fair value (637) (419)

Deferred gains on disposals of fixed assets (119) (67)

Deferred revenue recognition (164) –

Write off capitalized costs (179) (127)

Accounting for Derivative Instruments and Hedging Activities (SFAS 133) (212) –

Other differences (134) 15

Deferred income taxes (107) (104)

Total differences (947) 194

Stockholders’ Equity according to US GAAP 11,223 13,514

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 43

43


44

44

Reconciliation of Net Income (Loss) in consolidated financial statements

(in millions of euros) 2001 2000 1999

Net Income/(Loss) in the consolidated financial statements (445) 664 353

Adjustment of depreciation and gains/losses on revalued assets 58 90 49

Goodwill 37 14 (117)

Provision for restructuring reserve not consistent with EITF 94-3 (172) 443 (19)

Deferred gains on disposals of fixed assets (47) 3 3

Deferred revenue recognition (164) – –

Write off capitalized costs (47) 61 (52)

Adjustments of securities to fair value at date of purchase – (358) –

Other differences 15 11 (71)

Deferred income taxes (72) (48) (24)

Total differences (392) 216 (231)

Net Income (Loss) according to US GAAP, before the effects of the changes in accounting principle (837) 880 122

Less: effect of the change in accounting principle for start up costs, net – – (91)

Net Income (Loss) according to US GAAP (837) 880 31


22 Statement of cash flows

(in millions of euros) 2001 2000 1999

A) Cash at January 1 1,997 1,906 1,673

B) Cash flows provided by (used in) operating activities:

Net income (loss) before minority interest (791) 578 506

Amortization and depreciation 2,880 3,052 2,354

Change in reserve for employee severance indemnities (77) (56) (104)

Change in deferred income taxes (588) (289) (354)

Gain on disposals (1,749) (2,753) (558)

Revaluations and writedowns of equity investments 372 73 (123)

Change in current assets and liabilities:

Trade receivables 583 572 271

Inventories (164) (973) (580)

Accounts payable 1,605 492 1,583

Other payables, receivables, accruals and deferrals 609 1,040 (90)

Reserve for income taxes and other reserves (413) 1,046 (18)

Changes in the scope of consolidation 168 (808) (83)

Total 2,435 1,974 2,804

C) Total cash flows provided by (used in) investing activities:

Investment in:

Fixed assets (3,438) (3,236) (2,712)

Investments (1,524) (4,347) (6,149)

Intangible assets and deferred charges (473) (521) (415)

Investment grants 100 135 127

Proceeds from the sale of fixed assets 2,652 1,601 1,198

Change in financial receivables (189) (1,816) (2,046)

Change in securities (15) 159 493

Change in securities of insurance companies net of policy liabilities and accruals

Other (including effects of acquisitions and other changes

(97) (254) (386)

in the composition of the scope of consolidation) (33) (260) 294

Total (3,017) (8,539) (9,596)

D) Total cash flows provided by (used in) financing activities:

Increase in borrowings 8,561 8,307 7,477

Repayment of borrowings (6,057) (4,161) (3,249)

Changes in short-term borrowings (1,140) 349 3,214

Increase in capital stock (*) – 2.603 –

Purchase of treasury stock (266) (30) –

Dividends paid (380) (412) (417)

Total 718 6,656 7,025

E) Total change in cash 136 91 233

F) Cash at December 31 2,133 1,997 1,906

(*) Subscription by General Motors of a 20% stake in Fiat Auto Holdings B.V.

A reconciliation between cash and Group net financial position is reported in the Report on Operations – Analysis of the Financial

Position and Operating Results of the Fiat Group and Fiat S.p.A.

For purposes of a better representation of the statement of cash flows, the change in the securities of insurance companies is

presented net of the change in policy liabilities and accruals. Prior years’ figures have been duly reclassified.

Consolidated Financial Statements at December 31, 2001 – Notes to the Consolidated Financial Statements 45

45


46

46

23 Translation of foreign financial statements

The principal exchange rates in 2001 and 2000 used to translate the foreign currency financial statements into euros were:

Average At Average At

2001 12/31/2001 2000 12/31/2000

U.S. dollar 0.896 0.881 0.924 0.931

British sterling 0.622 0.608 0.610 0.624

Swiss franc 1.511 1.483 1.558 1.523

Polish zloty 3.677 3.522 4.012 3.854

Brazilian real 2.106 2.045 1.690 1.819

Argentine peso 0.895 1.472 0.924 0.929

24 Emoluments to directors and statutory auditors

2001 2000

(in thousands of euros) Fiat S.p.A. Subsidiaries Total Fiat S.p.A. Subsidiaries Total

Directors 5,795 228 6,023 6,692 319 7,011

Statutory auditors 145 189 334 148 307 455

Total Emoluments 5,940 417 6,357 6,840 626 7,466

This refers to the emoluments due to Directors and Statutory Auditors of Fiat S.p.A. to carry out these functions also in the other

companies included in consolidation.

The list of companies included in the consolidated financial

statements (Article 38 and 39 of Legislative Decree 127/91)

is attached

Turin, March 27, 2002

The Board of Directors

By:

Paolo Fresco

Chairman


Fiat S.p.A. FINANCIAL STATEMENTS

at December 31, 2001

Fiat S.p.A.

Head Office: 250 Via Nizza, Turin, Italy

Paid-in Capital: 3,082,128,000 euros

Entered in the Turin Company Register

Fiscal Code: 00469580013

47

47


48

48

Balance Sheet

❚ ASSETS

December 31, 2001 December 31, 2000

in euros in euros

FIXED ASSETS

Intangible fixed assets (note 1)

Start-up and expansion costs 157,472 556,214

Concessions, licenses, trademarks and similar rights 25,807 30,018

Intangible assets in progress and advances 227,840 173,969

Total 411,119 760,201

Property, plant and equipment (note 2)

Land and buildings 40,127,142 41,851,511

Plant and machinery 5,918,340 6,799,339

Other assets 4,681,434 4,712,383

Construction in progress and advances 126,893 –

Total 50,853,809 53,363,233

Financial fixed assets (note 3)

Investments in:

Subsidiaries 7,549,946,301 7,485,765,693

Associated companies – 36,152

Other companies 155,659,465 112,767,744

7,705,605,766 7,598,569,589

Receivables from: (*)

Subsidiaries 25,822,845 25,822,845

Associated Companies – 180,760

25,822,845 26,003,605

Other securities 74,974 74,975

Total 7,731,503,585 7,624,648,169

TOTAL FIXED ASSETS 7,782,768,513 7,678,771,603

CURRENT ASSETS

Inventories (note 4)

Contract work in progress 38,144,394 27,614,924

Advances to suppliers 2,375,228,924 1,746,184,991

Total 2,413,373,318 1,773,799,915

Receivables (note 5)

Trade receivables (**) 170,940,694 260,284,094

Receivables from subsidiaries (***) 12,624,822 98,143,558

Receivables from others (****) 61,145,547 188,543,842

Total 244,711,063 546,971,494

Financial assets not held as fixed assets (note 6)

Other equity investments – 753,039

Treasury stock (total par value 10,500,000 euros) 37,541,700 27,234,360

Financial receivables:

From subsidiaries 64,426,436 615,210

From others 10,372,634 16,877,524

74,799,070 17,492,734

Total 112,340,770 45,480,133

Cash (note 7)

Bank and post office accounts 6,715,615 161,421

Cheques 1,614,681 –

Cash on hand 1,076 1,200

Total 8,331,372 162,621

TOTAL CURRENT ASSETS 2,778,756,523 2,366,414,163

ACCRUED INCOME AND PREPAID EXPENSES (note 8) 6,128,575 3,613,133

❚ TOTAL ASSETS 10,567,653,611 10,048,798,899

(*) Amounts due within one year – –

Amounts due beyond one year 25,822,845 26,003,605

(**) Amounts due within one year 170,579,174 258,550,245

Amounts due beyond one year 361,520 1,733,849

(***) Amounts due within one year 12,624,822 98,143,558

Amounts due beyond one year – –

(****) Amounts due within one year 57,378,227 183,965,021

Amounts due beyond one year 3,767,320 4,578,821


Balance Sheet

❚ LIABILITIES AND STOCKHOLDERS’ EQUITY

STOCKHOLDERS’ EQUITY (note 9)

December 31, 2001 December 31, 2000

in euros in euros

Capital stock 2,753,025,000 2,753,025,000

Additional paid-in capital 1,636,002,728 1,636,002,728

Revaluation reserve under Law No. 413 of 12/30/91 22,590,857 22,590,857

Legal reserve 659,340,011 659,340,011

Treasury stock valuation reserve 37,541,700 27,234,360

Other reserves

Extraordinary reserve 130,999,489 112,849,808

Reserve for purchases of treasury shares 943,712,398 969,972,878

Reserve under Art. 34, Law No. 576 of 12/2/75

Out-of-period income reserve under Art. 55,

Presidential Decree No. 917 of 12/22/86

– 2,196,541

(Article 18, Law No. 675 of 8/12/77)

Reserve for grants under Article 102,

1,914,925 1,914,925

Presidential Decree No. 1523 of 6/30/67 17,693,098 17,693,098

Reserve for capital grant under Regional Law No. 19/84 122,780 122,780

1,094,442,690 1,104,750,030

Retained earnings 587,192,473 247,530,000

Net income 378,673,294 692,122,057

TOTAL STOCKHOLDERS’ EQUITY 7,168,808,753 7,142,595,043

RESERVES FOR RISKS AND CHARGES (note 10)

Reserve for pensions and similar obligations 44,967,139 32,720,704

Income tax reserve 12,826,578 14,154,453

Other reserves 922,566 7,939,706

TOTAL RESERVES FOR RISKS AND CHARGES 58,716,283 54,814,863

RESERVE FOR EMPLOYEE SEVERANCE INDEMNITIES (note 11) 24,135,583 27,340,318

PAYABLES (note 12)

Borrowings from banks 122,336 4,905

Advances 2,466,409,703 1,812,344,116

Trade payables 246,049,765 275,703,097

Payables to subsidiaries (*) 567,569,938 614,231,975

Taxes payable (**) 14,546,125 89,582,679

Social security payable 1,629,272 1,789,922

Other payables (***) 15,559,726 23,453,888

TOTAL PAYABLES 3,311,886,865 2,817,110,582

ACCRUED EXPENSES AND DEFERRED INCOME (note 13) 4,106,127 6,938,093

❚ TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 10,567,653,611 10,048,798,899

(*) Amounts due within one year 227,569,938 364,231,975

Amounts due beyond one year 340,000,000 250,000,000

(**) Amounts due within one year 11,052,178 84,341,759

Amounts due beyond one year 3,493,947 5,240,920

(***) Amounts due within one year 15,357,553 23,043,080

Amounts due beyond one year 202,173 410,808

Financial Statements at December 31, 2001 49

49


50

50

Balance Sheet

❚ MEMORANDUM ACCOUNTS (note 14)

GUARANTEES GRANTED

Unsecured guarantees

Suretyships on behalf of:

December 31, 2001 December 31, 2000

in euros in euros

Subsidiaries 3,678,511,374 5,108,842,721

Others 106,828,127 –

Other unsecured guarantees on behalf of:

3,785,339,501 5,108,842,721

Subsidiaries 13,912,557,367 9,914,591,795

Others 263,769,628 169,302,174

14,176,326,995 10,083,893,969

TOTAL GUARANTEES GRANTED 17,961,666,496 15,192,736,690

COMMITMENTS

Commitments for supply contracts

To others 3,728,132,731 3,561,895,483

Other commitments

To others 24,817,289 30,366,563

TOTAL COMMITMENTS 3,752,950,020 3,592,262,046

OTHER MEMORANDUM ACCOUNTS 31,275,822 195,883

❚ TOTAL MEMORANDUM ACCOUNTS 21,745,892,338 18,785,194,619


Statement of Operations

VALUE OF PRODUCTION (note 15)

2001 2000

in euros in euros

Service revenues 74,681,528 84,688,484

Change in contract work in progress 10,529,470 10,828,308

Other income and revenues 10,884,943 10,491,464

TOTAL VALUE OF PRODUCTION 96,095,941 106,008,256

COSTS OF PRODUCTION (note 16)

Raw materials, supplies and merchandise 441,296 384,046

Services 84,327,962 78,865,762

Leases and rentals 983,725 1,062,391

Personnel

Wages and salaries 36,121,049 44,692,610

Social security contributions 7,593,346 10,416,593

Employee severance indemnities 17,900,254 15,051,135

Employee pensions and similar obligations 7,069,358 421,415

Other costs 860,355 439,905

Amortization, depreciation and writedowns

69,544,362 71,021,658

Amortization of intangible fixed assets 429,443 501,543

Depreciation of property, plant and equipment 3,277,019 3,115,872

3,706,462 3,617,415

Other operating costs 32,941,634 21,103,624

TOTAL COSTS OF PRODUCTION

DIFFERENCE BETWEEN THE VALUE

191,945,441 176,054,896

AND COSTS OF PRODUCTION (95,849,500) (70,046,640)

FINANCIAL INCOME AND EXPENSES (note 17)

Investment income

Subsidiaries 708,861,328 752,660,530

Other companies 4,358,985 2,801,227

Other financial income

From receivables held as fixed assets

713,220,313 755,461,757

Subsidiaries 1,144,382 1,090,426

From securities held as fixed assets other than equity investments 3,813 4,130

From securities held as current assets other than equity investments – 1,278,209

Other income

Subsidiaries 14,061,578 8,101,849

Others 929,136 3,976,446

Interest and other financial expenses

14,990,714 12,078,295

16,138,909 14,451,060

Subsidiaries 23,468,914 49,786,918

Others 29,521,695 17,557,187

52,990,609 67,344,105

NET FINANCIAL INCOME 676,368,613 702,568,712

Financial Statements at December 31, 2001 51

51


52

52

Statement of Operations

ADJUSTMENTS TO FINANCIAL ASSETS (note 18)

Writedowns

2001 2000

in euros in euros

Equity investments 3,839,904 6,686,598

TOTAL ADJUSTMENTS (3,839,904) (6,686,598)

EXTRAORDINARY INCOME AND EXPENSES (note 19)

Income

Gains on disposals – 372,079,673

Other income 69,336 56,655

Expenses

69,336 372,136,328

Losses on disposals 15,002 –

Other expenses 841,599 21,851,436

856,601 21,851,436

TOTAL EXTRAORDINARY INCOME AND EXPENSES (787,265) 350,284,892

INCOME BEFORE TAXES 575,891,944 976,120,366

Income taxes (note 20) 197,218,650 283,998,309

NET INCOME 378,673,294 692,122,057


Notes to the Financial Statements

ACCOUNTING PRINCIPLES AND METHODS

Consistently with the previous fiscal year, the financial

statements at December 31, 2001, which include the balance

sheet, the statement of operations and the notes, have been

prepared in accordance with the format and regulations set

forth in Legislative Decree No. 127 of April 9, 1991, and

provide the additional information required by the CONSOB.

The valuation criteria used, which are discussed below, are

consistent with those used in previous fiscal years, and conform

to the provisions of Article 2426 of the Italian Civil Code.

In particular:

Intangible fixed assets

Start-up and expansion costs consist of costs incurred in

connection with leashold improvements. They are capitalized

on the basis of their estimated useful life. They are amortized

on a straight-line basis over five years; the available reserves

exceed not already amortized costs by a substantial amount.

Trademarks are recorded at a value that reflects only the

administrative cost of registration. To ensure a conservative

valuation, this amount is amortized on a straight-line basis

over three years.

Property, plant and equipment and depreciation

Property, plant and equipment is recorded at acquisition cost

plus directly attributable charges. As indicated in a separate

schedule, the value of some of these assets includes the

inflation adjustments required under the pertinent laws.

Improvement costs are added to the value of the asset in

question only when they permanently increase their value.

Depreciation is computed on a straight-line basis at rates

deemed adequate in view of the estimated useful life of the

assets. For assets acquired during the fiscal year, the annual

depreciation is taken at half the regular rate. The cost of

maintenance and repairs is charged directly to income when

incurred.

Financial fixed assets

Financial fixed assets are held by Fiat S.p.A. on a long-term

basis, for the purpose of creating an integrated and diversified

industrial group.

They are shown in the balance sheet at their historical cost

or, when business operations are transferred, at the values

set forth in the respective contracts in accordance with the

appraisals required by law, determined by the LIFO method

with annual adjustments. As shown in a separate schedule,

some of these assets have been adjusted for inflation, as

required by the relevant legislation.

Investments in companies that have suffered a permanent

loss in value are written down accordingly. If in subsequent

fiscal years the reasons for these adjustments are no longer

valid, the writedowns are reversed. No reversals are made

for writedowns recognized prior to the effective date of

Decree Law No. 127/1991.

Nevertheless, any pertinent provisions of Article 2426, Last

Section, of the Italian Civil Code will continue to apply.

Other securities are shown at their net purchase price,

adjusted for the accrual of any premium or discount earned

or incurred upon issuance or purchase, because the

securities, which are pledged to fund scholarship grants,

are not held for trading purposes.

Inventories

Inventories also include work in progress under long-term

contracts, valued on the basis of the respective production cost.

Amounts received from customers while the work is in

progress are treated as a form of financing and included

among the liabilities under advances.

Revenues are booked when the work is actually delivered

and accepted by customers.

Treasury stock

Treasury stock is stated at the lower of purchase cost,

determined using the annual lot LIFO method and the average

market price for the last month of the year.

If in subsequent fiscal years the reasons for these adjustments

are no longer valid, the writedowns are reversed.

A corresponding treasury stock reserve for the same amount has

been recorded in the balance sheet under stockholders’ equity.

Receivables and payables

Accounts receivable are shown at their estimated realizable

value, which represents the difference between their face

value and the adjustments included in the allowance for

doubtful accounts. The individual items are shown in the

balance sheet net of the respective allowances.

Based on past experience, the amount of these allowances

is determined in accordance with a prudent estimate of

uncollectible amounts and reflects the risks associated

with specific delinquent accounts.

Financial Statements at December 31, 2001 – Notes to the Financial Statements

53

53


54

54

Receivables and payables denominated in currencies of non-

EMU countries are converted into euros using the exchange

rate prevailing at the time when booked. These receivables

and payables are adjusted at year-end exchange rates only

in the case where balances translated at year-end exchange

rates produce a net exchange loss. Any difference, if material,

is reflected in the statement of income.

Accruals and deferrals

Accruals and deferrals are determined by the accrual method,

in accordance with the general principle of assigning revenues

and expenses to the accounting period in which they are

earned or incurred.

Reserves for risks and charges

Reserves for risks and charges are established to cover costs

or liabilities that have already been incurred or the occurrence

of which was probable or definite at the end of the fiscal year,

but were undetermined either as to amount or time of

probable occurrance.

Reserve for employee severance indemnities

The reserve for employee severance indemnities represents

the actual liability toward employees accrued as of the end

of the fiscal year and is adjusted each year in accordance

with current laws and collective bargaining agreements.

Income taxes

Liability for corporate income taxes due for the fiscal year

is determined in accordance with the current legislation.

Deferred-tax liabilities and assets are determined on the basis

of the temporary differences that arise between asset and

liability items and the corresponding tax items.

In particular, deferred tax assets are recognized only when it

is reasonably certain that they will be recovered. Conversely,

deferred tax liabilities are not recognized if it is unlikely that

the corresponding obligations will in fact arise.

Dividends

Dividends are recorded in the year when declared by the

disbursing companies.

The respective tax credits are booked when the dividends

are collected.


ANALYSIS OF THE INDIVIDUAL ITEMS

Fixed assets

1 Intangible fixed assets

Start-up and expansion costs

At December 31, 2001, they totaled 157 thousand euros, and include costs incurred in connection with leasehold improvements,

which are amortized over five years.

The decrease of 399 thousand euros since December 31, 2000 is the net effect of amortization for the fiscal year.

Concessions, licenses, trademarks and similar rights

This item, which amounted to 26 thousand euros at December 31, 2001, includes trademarks owned by the Company, which are

amortized over three years.

The decrease of 4 thousand euros compared with December 31, 2000 is the net effect of the following items:

(in thousands of euros)

Capitalization of new trademark registrations 26

Amortization for the fiscal year (30)

Net change (4)

Intangible assets in progress and advances

This item reflects the costs incurred in connection with ongoing administrative procedures required to register trademarks.

It showed a net increase of 54 thousand euros to 228 thousand euros at December 31, 2001, as a result of new trademark

registrations.

2 Property, plant and equipment

At December 31, 2001 and 2000, property, plant and equipment totaled 50,854 thousand euros and 53,363 thousand euros,

respectively. These amounts are net of accumulated depreciation of 14,638 thousand euros at December 31, 2001 and 13,238

thousand euros at December 31, 2000.

The decrease of 2,509 thousand euros is a net effect of the following items:

(in thousands of euros)

Additions

Including: construction at buildings and facilities (247);

new vehicles (2,526); modernization of equipment (107) 2,880

Retirements

sale of a land located in Candiolo (349)

sales of vehicles (1,730)

elimination of obsolete furniture and equipment (33)

Total retirements (2,112)

Provision for the fiscal year charged to accumulated depreciation (3,277)

Net change (2,509)

Financial Statements at December 31, 2001 – Notes to the Financial Statements 55

55


56

56

Depreciation taken in 2001 was computed using the following rates:

Depreciation rates

Buildings 3%

Plant and machinery 10%

Furniture 12%

Equipment 20%

Vehicles 25%

3 Financial fixed assets

Investments

This item totaled 7,705,606 thousand euros at December 31, 2001. A breakdown of the net increase of 107,036 thousand

euros from December 31, 2000 is provided in the following table:

(in thousands of euros)

Increases

Acquisitions 92,090

Capital increases 18,683

Contributions 1,276,058

Demergers of subsidiaries and associated companies 19,137

Mergers of subsidiaries and associated companies 6,356

Total increases 1,412,324

Decreases

Disposals 199

Contributions 1,276,058

Demergers of subsidiaries and associated companies 19,137

Mergers of subsidiaries and associated companies 6,356

Writedowns of carrying value 3,538

Total decreases 1,305,288

Net increases 107,036


Increases include:

(in thousands of euros)

Acquisitions

Subsidiaries

3% of Ferrari S.p.A. from Fidia S.p.A. 15,285

0.49% of the residual capital of Toro Assicurazioni S.p.A.

through exercise of purchase right (16.15 euros per share) 13,905

100% of Fiat USA Inc. from Internazionale Holding Fiat S.A. 34,645

0.89% of the savings shares of Magneti Marelli S.p.A. 138

Total subsidiaries 63,973

Other companies

2.27% of Consortium S.r.l. from Mediobanca S.p.A. 19,527

2.69% of Cartiere Burgo S.p.A. from Montedison S.p.A. 6,268

1.78% of Fin. Priv. S.r.l. from Eurazeo S.A. 2,321

13% of Tredicimarzo S.r.l. from third parties 1

Total other companies 28,117

Total 92,090

Capital increases

Subsidiaries

Isvor Fiat S.p.A. 203

Fiat I&CS S.r.l. 799

Fiat G.S.A. S.r.l. 250

Fiat Se.p.In. S.c.p.A. 1,404

Fiat Revi S.c.r.l. 27

Total subsidiaries 2,683

Other companies

Tredicimarzo S.r.l. 14,000

Fin.Priv. S.r.l. 2,000

Total other companies 16,000

Total 18,683

Contributions

Subsidiaries

Sicind S.p.A. shares received following the contribution of shares of

Toro Assicurazioni S.p.A. (1,274,133 thousand euros), quotas of Fiat I&CS S.r.l.

(799 thousand euros) and Agenzia Torino S.r.l. (36 thousand euros) 1,274,968

Business Solutions S.p.A. shares received following the contribution of quotas

of I.T.S. S.r.l. (840 thousand euros), and Fiat G.S.A. S.r.l. (250 thousand euros) 1,090

Total 1,276,058

Demergers

Subsidiaries

Sicind S.p.A. shares acquired following the partial demerger of Fiat Ge.Va. S.p.A. 18,791

Business Solutions S.p.A. shares acquired following the partial demerger of Fiat Ge.Va. S.p.A. 346

Total 19,137

Mergers

Subsidiaries

Sicind S.p.A. shares received following merger of Soparind S.p.A. 6,356

Total increases 1,412,324

Financial Statements at December 31, 2001 – Notes to the Financial Statements 57

57


58

58

Decreases include:

(in thousands of euros)

Disposals

Subsidiaries

1.24% of the savings shares of Magneti Marelli S.p.A.

to Fiat Netherlands Holding N.V. 199

Contributions

Subsidiaries

shares of Toro Assicurazioni S.p.A. (1,274,133 thousand euros), and quotas of

Fiat I&CS S.r.l. (799 thousand euros) contributed to Sicind S.p.A. 1,274,932

quotas of I.T.S. S.r.l. (840 thousand euros) and of Fiat G.S.A. S.r.l.

(250 thousand euros) contributed to Business Solutions S.p.A. 1,090

Total subsidiaries 1,276,022

Associated companies

quotas of Agenzia Torino S.r.l. contributed to Sicind S.p.A. 36

Total 1,276,058

Demergers

Subsidiaries

cancellation of 0.63% of Fiat Ge.Va. S.p.A. shares following

demerger to Business Solutions S.p.A. 346

cancellation of 7.78% of Fiat Ge.Va. S.p.A. shares following

demerger to Sicind S.p.A. 18,791

Total 19,137

Mergers

Subsidiaries

Cancellation of Soparind S.p.A. shares following its merger with Sicind S.p.A. 6,356

Writedowns of carrying value

Subsidiaries

Fiat Se.p.In. S.c.p.A. 1,404

Fiat International S.p.A. 890

Fiat Revi S.c.r.l. 23

Total subsidiaries 2,317

Other companies

Istituto Europeo di Oncologia S.r.l. 1,221

Total 3,538

Total decreases 1,305,288

This item also includes the interests held in the Orione, Fiat Media Center, Sirio and Lingotto consortium funds, valued at 27

thousand euros.

As required by Article 2426, Section 3, of the Italian Civil Code, we wish to emphasize that certain investments are carried at an

amount that exceeds the value of the corresponding portion of the underlying stockholders’ equity in the latest approved financial

statements, after deducting dividends and after the adjustments required for consolidation purposes.

In particular, Fiat S.p.A. carries its investments in Iveco N.V., Fiat Netherlands Holding N.V., Comau B.V., and Sicind S.p.A. at

amounts that exceed the shares held in the underlying stockholders’ equities (by 191 million euros, 43 million euros, 18 million

euros, and 581 million euros, respectively) because these companies enjoy positive economic prospects and/or possess assets

whose value has appreciated.

It should also be noted that, when the criteria discussed above are applied, the stockholders’ equity of all other subsidiaries and

associated companies is higher than the respective carrying values.

The table at the end of the Notes to the financial statements contains a list of subsidiaries and associated companies and the

additional information required under Article 2427 of the Italian Civil Code and the supplemental data recommended by the

CONSOB, including changes in quantity and value of subsidiaries and associated companies and, for publicly traded companies,

a comparison between carrying value and market value.


Receivables

Receivables amounted to 25,823 thousand euros at December 31, 2001. A breakdown of the decrease of 181 thousand euros

from the figure at the end of 2000 is provided in the following table:

(in thousands of euros) 12/31/2001 12/31/2000 Change

Subsidiaries 25,823 25,823 –

Associated companies – 181 (181)

Total receivables 25,823 26,004 (181)

It consists of a loan granted to Elasis – Sistema Ricerca Fiat nel Mezzogiorno S.c.p.A., receivable beyond five years.

Other securities

These consist primarily of listed Treasury securities pledged to fund scholarship grants.

At December 31, 2001, their book values totaled 75 thousand euros (based on their quotations at December 28, 2001), in line

with the previous year.

The list of subsidiaries and associated companies appearing at the end of the Notes to the financial statements includes the following:

❚ the additional information on cost, upward adjustments, writedowns and amortization required under Article 2427 of the Italian

Civil Code; and

❚ as required under Article 10 of Law No. 72 of March 19, 1983, a mention of the assets held at December 31, 2001 which have

been adjusted for inflation pursuant to the relevant laws.

Current assets

4 Inventories

This item consists of costs incurred in connection with the High-Speed Railway Project. Fiat has been hired as general contractor

by Treno Alta Velocità - T.A.V. S.p.A. (which, in turn, had received the order from F.S. S.p.A. - Italian State Railways) for the

executive design and construction of two high-speed rail lines (Bologna-Florence and Turin-Milan) for a contract price of 3,405 million

euros and 4,147 million euros, respectively. The supplemental agreement for the Turin-Milan line was signed in February 2002.

Fiat S.p.A. has subcontracted this job to the CAV.E.T. and CAV.TO.MI. consortia, retaining responsibility for coordination,

organization and project management.

Financing of the project is carried by means of advances paid by T.A.V. S.p.A. to Fiat S.p.A., which then transfers to the two

consortia the net amounts after deducting its fee (3.846%).

The items included in Inventory are:

❚ Contract work in progress

This item, which totaled 38,144 thousand euros at December 31, 2001, refers for 35,783 thousand euros to the Florence-

Bologna line and for 2,361 thousand euros to the Turin-Milan line. For the latter, works began in 2001. The item includes

capitalized costs for coordination, organization and project management work. Contract work in progress increased by 10,529

thousand euros from the end of 2000, and reflects the work performed by Fiat S.p.A. in 2001.

❚ Advances to suppliers

Advances include disbursements made to Consorzio Alta Velocità Emilia Toscana - CAV.E.T. (2,110,704 thousand euros)

and Consorzio Alta Velocità Torino-Milano - CAV.TO.MI. (264,525 thousand euros) for the design and construction of the

Bologna-Florence and Turin-Milan lines. Work completed as at December 31, 2001 amounted to 1,761,478 thousand euros

for the Bologna-Florence line and 193,900 thousand euros for the Turin-Milan line.

Advances to suppliers show a net increase of 629,044 thousand euros from December 31, 2000, as a result of the contractual

advances paid during the fiscal year to the CAV.E.T. and CAV.TO.MI consortia, for 423,373 thousand euros and 205,671

thousand euros, respectively.

Financial Statements at December 31, 2001 – Notes to the Financial Statements 59

59


60

60

The latter advance was paid pursuant to the agreement signed on March 23, 2001 (worth 312 million euros) that regulates the

design and performance of preparatory work.

As explained later, the item Advances on the liabilities side of the balance sheet includes contractual advances totaling 2,466,410

thousand euros paid to Fiat S.p.A. by the bidder company Treno Alta Velocità - T.A.V. S.p.A.

The contractual obligations of the CAV.E.T. and CAV.TO.MI consortia toward Fiat S.p.A. and the proper performance of the

work are secured by bank guarantees totaling 753,712 thousand euros.

Similar commitments were provided by Fiat S.p.A. to T.A.V. S.p.A.

5 Receivables

Receivables amounted to 244,711 thousand euros at December 31, 2001. A breakdown of the net decrease of 302,260

thousand euros from the figure at the end of 2000 is provided in the following table:

(in thousands of euros) 12/31/01 12/31/00 Change

Trade receivables 171,199 260,542 (89,343)

Allowance for doubtful accounts (258) (258) –

Total trade receivables 170,941 260,284 (89,343)

Subsidiaries 12,625 98,143 (85,518)

Others

Due from the Tax Authorities 60,054 187,542 (127,488)

Due from employees 553 492 61

Other (security deposits, social security institutions, advances to suppliers, etc.) 538 510 28

Total others 61,145 188,544 (127,399)

Total receivables 244,711 546,971 (302,260)

Compared with December 31, 2000, trade receivables decreased by 89,343 thousand euros. These receivables are mainly the

result of corresponding amounts owed by T.A.V. S.p.A. for works completed.

The liabilities include, under trade payables, the amounts owed to CAV.E.T. and CAV.TO.MI.

Receivables from subsidiaries stem from the provision of services. At December 31, 2001, they were 85,518 thousand euros

lower than at the end of 2000, chiefly as the result of the collection of amounts due from Tax Authorities assigned to the

companies during fiscal 2000.

At the end of 2001, receivables from others amounted to 61,145 thousand euros. The amount due from the Tax Authorities

totaled 60,054 thousand euros. It comprised overpayments of 50,554 thousand euros for corporate income taxes (mainly related

to 2001), 964 thousand euros for the regional tax on production activities, 2,194 thousand euros for prepayments of taxes on

employee severance indemnities, and 6,342 thousand euros in miscellaneous items.

Receivables form others showed a decrease of 127,399 thousand euros from December 31, 2000, as a net result of the

following items:

(in thousands of euros)

Lower consolidated Group VAT receivables (131,257)

Corporate income tax overpayments in the fiscal year 49,077

Corporate income tax overpayments in fiscal 2000 used to set off substitute tax (43,525)

Miscellaneous items (1,694)

Net change (127,399)

Receivables with a term of more than five years totaled 4 thousand euros and consist of amounts due by employees.


6 Financial assets not held as fixed assets

Investments in other companies

Fiat S.p.A. had no investments in other companies at December 31, 2001.

This item consisted of 179,420 shares of Assicurazioni Generali S.p.A., of which 135,920 earmarked for the conversion of the

1991-2001 Assicurazioni Generali S.p.A. warrants. The decrease of 753 thousand euros over the figure at the end of 2000

reflects the disposal to warrant holders and to Fiat Ge.Va. S.p.A.

Treasury stock

This item consists of 2,100,000 ordinary shares with a total par value of 10,500,000 euros, earmarked for the Stock Option

Plans. Treasury stock totaled 37,542 thousand euros at December 31, 2001. A breakdown of the net increase by 10,308

thousand euros from December 31, 2000 is provided in the following table:

(in thousands of euros)

Purchases 26,261

Writedown to market value during the last month of the year (15,953)

Net change 10,308

Financial receivables

This item totaled 74,799 thousand euros at December 31, 2001, compared with 17,493 thousand euros at the end of 2000.

A breakdown is provided below:

(in thousands of euros) 12/31/01 12/31/00 Change

Subsidiaries

Fiat Ge.Va. S.p.A. 64,426 615 63,811

Others

Tax Authorities 10,373 16,878 (6,505)

Total financial receivables 74,799 17,493 57,306

This item consists of temporary liquidity left on deposit with the subsidiary Fiat Ge.Va. S.p.A. for corporate income tax refunds

from 1990 for which Government securities have been requested in lieu of cash.

7 Cash

Bank and post office accounts

This item, which at the end of the fiscal year amounted to 6,715 thousand euros, showed an increase of 6,553 thousand euros

compared with the figure at December 31, 2000. It mainly consists of funds received from T.A.V. S.p.A. after the early release of

amounts withheld in guarantee of work progress on the Turin-Milan line, to be paid to the CAV.TO.MI consortium upon its release

of the relative performance bond.

Checks

This item, which at the end of the fiscal year amounted to 1,615 thousand euros, showed an increase by that amount compared

with the figure at December 31, 2000. It consists of promissory notes issued by the Banca d’Italia in refund of the registration

tax not owed on the capital increase of 1990.

Cash on hand

At December 31, 2001, cash on hand totaled 1 thousand euros, unchanged from the end of 2000.

Financial Statements at December 31, 2001 – Notes to the Financial Statements 61

61


62

62

8 Accrued income and prepaid expenses

Accrued income

At 80 thousand euros, accrued income showed a net decrease of 334 thousand euros from the amount at December 31, 2000.

It consists of accrued interest on the items listed in the following table:

(in thousands of euros) 12/31/01 12/31/00 Change

Due from the Tax Authorities 79 361 (282)

Due from Group employees for sales of houses – 52 (52)

Other items 1 1 –

Total accrued income 80 414 (334)

Prepaid expenses

This item, which at the end of the fiscal year amounted to 6,049 thousand euros, showed an increase of 2,850 thousand euros

compared with the figure at December 31, 2000. It resulted from increased interest for discounting of VAT receivables during the

fiscal year and in a decrease upon transfer to the statement of operations of the allocable portion of interest for discounting of

receivables in previous years.

They include:

(in thousands of euros) 12/31/01 12/31/00 Change

Interest on the disposal of receivables due from Tax Authorities 5,501 2,489 3,012

Other operating costs 548 710 (162)

Total prepaid expenses 6,049 3,199 2,850

9 Stockholders’ Equity

Capital stock

At December 31, 2001, the fully paid-in capital stock totaled 2,753,025 thousand euros, and consists of 550,605,000 shares,

broken down as follows:

❚ 367,399,890 ordinary shares, totaling 1,836,999 thousand euros

❚ 103,292,310 preference shares, totaling 516,462 thousand euros, and

❚ 79,912,800 savings shares, totaling 399,564 thousand euros.

All classes of shares have a par value of 5 euros each.

It should be noted that, in accordance with the provisions of Articles 2420 ter and 2443 of the Italian Civil Code, the Stockholders’

Meeting of June 22, 1998 authorized the Board of Directors to increase the capital stock, on a contributory or on a noncontributory

basis, in a single transaction, or repeatedly over a maximum period of 5 years, up to a maximum of 10,000 billion

lire, redefined in the amount of 5,000 million euros by the Stockholders’ Meeting of June 23, 1999, and either in a single

transaction or on repeated occasions, to issue bonds or convertible bonds up to the same maximum amount, but without

exceeding in any one transaction the limits set forth by law.

Capital increases authorized by the Board of Directors as of today total 438,909 thousand euros, and consist of 411,379

thousand euros for the capital increase approved on December 10, 2001 and 27,530 thousand euros for capital increases

to service stock option plans.

Treasury stock valuation reserve

The treasury stock valuation reserve totaled 37,542 thousand euros at December 31, 2001, with a net increase of 10,308

thousand euros from the prior year. The change comes from the difference between the increase of 26,261 thousand euros

for the transfer from the reserve for purchases of treasury stock of the equivalent amount of the stock purchased during 2001

and a decrease of 15,953 thousand euros for the writedown of the stock to market value during the last month of the year.


Other reserves

Extraordinary reserve

At December 31, 2001, this item amounted to 131,000 thousand euros, or 18,150 thousand euros more than at the end of 2000,

owing to transfer of 15,953 thousand euros from the treasury stock valuation reserve for an amount equivalent to the writedown

of the shares to market value, and 2,197 thousand euros from the reserve under Art. 34 of Law No. 576 of December 2, 1975.

Reserve for purchases of treasury shares

The reserve for purchases of treasury shares totaled 943,712 thousand euros at December 31, 2001, or 26,261 thousand euros

less than at the end of 2000, owing to the transfer of the equivalent amount of the purchased shares to the treasury stock

valuation reserve.

Reserve under Art. 34 of Law No. 576 of December 2, 1975

This item, which was fully depleted at the end of the fiscal year, showed a decrease of 2,197 thousand euros compared with the

figure at December 31, 2000 upon transfer to the extraordinary reserve.

Retained earnings

Retained earnings totaled 587,192 thousand euros at December 31, 2001, or 339,662 thousand euros more than a year earlier,

owing to the appropriation of the remaining 2000 net income.

The table appearing at the end of the Notes to the financial statements provides a detailed breakdown of the tax status of the

various components of stockholders’ equity.

Financial Statements at December 31, 2001 – Notes to the Financial Statements 63

63


64

64

The table below shows the changes that affected stockholders’ equity in 2000 and 2001:

Revaluation

Additional reserve under Treasury stock

Capital paid-in Law No. 413 Legal valuation Other Retained Net

(in millions of euros) Total stock capital of 12/30/91 reserve reserve reserves (*) earnings income

Balance at December 31, 1999

Allocation of net income for the 1999 fiscal year:

6,803.6 2,753.0 1,636.0 22.6 659.3 – 1,132.0 204.6 396.1

Dividends paid to Stockholders (353.1) (353.1)

Transfer of the remaining net income

Utilization of part of the reserve for purchases

– 43.0 (43.0)

of treasury shares with transfer (30.0) (30.0)

to treasury stock valuation reserve 30.0 30.0

Transfer of part of treasury stock valuation reserve

to extraordinary reserve following

(2.8) (2.8)

writedown of treasury stock 2.8 2.8

Net income 692.1 692.1

Balance at December 31, 2000

Allocation of net income for the 2000 fiscal year:

7,142.6 2,753.0 1,636.0 22.6 659.3 27.2 1,104.8 247.6 692.1

Dividends paid to Stockholders (352.5) (352.5)

Transfer of the remaining net income

Utilization of part of the reserve for purchases

– 339.6 (339.6)

of treasury shares with transfer (26.3) (26.3)

to treasury stock valuation reserve 26.3 26.3

Transfer of part of treasury stock valuation reserve

to extraordinary reserve following

(15.9) (15.9)

writedown of treasury stock 15.9 15.9

Transfer from contribution reserve (2.2) (2.2)

to extraordinary reserve 2.2 2.2

Net income 378.7 378.7

Balance at December 31, 2001 7,168.8 2,753.0 1,636.0 22.6 659.3 37.6 1,094.4 587.2 378.7

(*) Broken down as follows: 12/31/01 12/31/00

Extraordinary reserve 131.0 112.9

Reserve under Article 34 of Law No. 576 of 12/2/75 – 2.2

Out-of-period income reserve under Article 55

of Presidential Decree No. 917 of 12/22/86 1.9 1.9

Reserve for capital grants under Article 102

of Presidential Decree No. 1523 of 6/30/67 17.7 17.7

Reserve for capital grants under Regional Law No. 19/84 0.1 0.1

Reserve for purchases of treasury shares 943.7 970.0

Total 1,094.4 1,104.8

10 Reserves for risks and charges

Reserve for pensions and similar obligations

This reserve covers early retirement incentives and payments due to retired employees. Determined on the basis of actuarial

computations, it was established as a result of supplemental collective and individual agreements.

At December 31, 2001, it totaled 44,967 thousand euros, for a net increase of 12,246 thousand euros compared with the end

of 2000, broken down as follows:

(in thousands of euros)

Provision for the fiscal year charged to income 21,571

Utilization for the fiscal year (9,325)

Net change 12,246


Income tax reserve

This reserve amounted to 12,827 thousand euros at December 31, 2001, a net decrease of 1,327 thousand euros compared

with December 31, 2000. It reflects primarily the liability for taxes on capital gains, the taxation of which has been deferred to

future fiscal years. It also includes deferred tax assets generated in 2001 and previous fiscal years by tax-deductible items

(depreciation and amortization, pension fund contributions, entertainment expenses), when it is reasonably certain that these

assets will be recovered in future years. They have been determined on the basis of tax rates published now for future years

(corporate income tax 36% for the 2002 fiscal year, 35% for subsequent fiscal years; regional tax on production activities 4.75%

for 2002, and 4.25% for subsequent fiscal years).

A breakdown of the change is as follows:

(in thousands of euros)

Utilization of deferred tax liabilities, net of provision for the fiscal year (11,003)

Utilization of deferred tax assets, net of provision for the fiscal year 9,676

Net change (1,327)

Other reserves

This item consists of reserves for losses at subsidiaries and associated companies that exceed their own book value (302

thousand euros), scholarships (84 thousand euros), expenses for employee bonuses (379 thousand euros), remuneration of

directors who opted for deferred payment in the form of Fiat shares (148 thousand euros), and other minor costs (9 thousand

euros). It totaled 922 thousand euros at December 31, 2001, or 7,018 thousand euros less than at December 31, 2000.

The change resulted from the following:

(in thousands of euros)

Provision for the fiscal year charged to income 749

Utilization for the fiscal year, mainly for bonuses granted to employees (7,767)

Net change (7,018)

The action for revocation of the deed of sale brought by the bankruptcy trustee of the company that sold land in Settimo Torinese

to Fiat S.p.A. in 1993 was settled in 2001 for 1.8 million euros.

Fiat S.p.A. is still subject to a pending lawsuit for damages resulting from alleged violation of an agreement granting the right

of first refusal on the sale of land located at Via Rivalta 15 in Turin and tax litigation regarding corporate income tax for 1992.

Given the currently pending nature of these actions, as well as the specific conditions of each one, no reasonable prediction

can be made as to their outcome or the costs that the company might sustain.

11 Reserve for employee severance indemnities

At December 31, 2001, this reserve totaled 24,136 thousand euros, a net decrease of 3,204 thousand euros from the end of 2000.

A breakdown of the change is as follows:

(in thousands of euros)

Provision for the fiscal year charged to income 17,900

Disbursements during the fiscal year (21,104)

Net change (3,204)

Financial Statements at December 31, 2001 – Notes to the Financial Statements 65

65


66

66

12 Payables

Borrowings from banks

This item amounted to 122 thousand euros at December 31, 2001 with an increase of 117 thousand euros comparable to the

figures at December 31, 2000.

Advances

These consist of advances received from Treno Alta Velocità - T.A.V. S.p.A. for the High-Speed Railway Project. Additional

information is provided in the note on advances to suppliers, on the asset side of the balance sheet. The advances were

allocated as follows: 2,192,228 thousand euros, for the Florence-Bologna line and 274,182 thousand euros for the Turin-Milan

line. Works completed as at December 31, 2001 totaled 1,831,937 thousand euros and 201,585 thousand euros, respectively.

The 654,066 thousand euros increase since December 31, 2000, is due to additional advances received from Treno Alta Velocità

- T.A.V. S.p.A. for the Bologna-Florence line (440,309 thousand euros) and the Turin-Milan line (213,757 thousand euros).

The latter advance was received under the agreement signed on December 22, 2000 (worth 323 million euros) that regulates the

design and performance of preparatory work. As previously mentioned, a similar agreement was made between Fiat S.p.A. and

the CAV.TO.MI. consortium.

As already mentioned, Fiat S.p.A. has provided T.A.V. S.p.A. with bank guarantees to secure these advances and the proper

performance of the job for a total of 792,427 thousand euros.

Fiat S.p.A. has received similar commitments from the CAV.E.T. and C.A.V.TO.MI. consortia.

Trade payables

Trade payables stem primarily from services received (consulting, publications, etc.) and amounts due to CAV.E.T. and C.A.V.TO.MI.;

they reflect progress payments due for work completed in the fourth quarter of 2001 and paid in the first quarter of 2002. These

items totaled 246,050 thousand euros at December 31, 2001, a net decrease of 29,653 thousand euros compared with December

31, 2000, mainly due to lower consideration owed to the CAV.E.T. consortium.

Payables to subsidiaries

These stood at 567,570 thousand euros at December 31, 2001, showing a net decrease of 46,662 thousand euros from a year

earlier.

A breakdown of this item is as follows:

(in thousands of euros) 12/31/01 12/31/00 Change

Financial payables 542,995 595,790 (52,795)

Trade payables 13,589 18,178 (4,589)

Other payables 10,986 264 10,722

Total payables to subsidiaries 567,570 614,232 (46,662)

Financial payables at December 31, 2001 include loans payable to the subsidiary Fiat Ge.Va. S.p.A. for 340,000 thousand euros

(of which 90,000 thousand euros are for a variable rate loan due on January 2, 2003, and a 250,000 thousand euros for a fixed

rate loan due on July 15, 2004), and amounts payable to subsidiaries for their VAT receivables, which they transferred to Fiat

S.p.A. under the consolidated VAT filing system (202,995 thousand euros).

Trade payables reflect mainly the purchase of external relations, administrative and general services.


Taxes payable

At December 31, 2001, taxes payable totaled 14,546 thousand euros, a net decrease of 75,037 thousand euros from the figure

at December 31, 2000. A breakdown is as follows:

(in thousands of euros) 12/31/01 12/31/00 Change

VAT payable 6,351 8,194 (1,843)

Liability for substitute tax payable on the capital gain from the sale of Magneti Marelli

and Belfiore 2001 (Decree Law No. 358/1997 as amended) – 71,035 (71,035)

Liability for substitute tax payable on the capital gain from

the sale of IN.TE.SA. (Decree Law No. 358/1997) 5,241 6,988 (1,747)

Taxes withheld on payments to employees and independent contractors 2,523 2,896 (373)

Miscellaneous items 431 470 (39)

Total taxes payable 14,546 89,583 (75,037)

The last installment of the substitute tax payable on the capital gain earned on the sale of IN.TE.SA. S.p.A. will be paid within the

filing deadline for the 2003 tax return.

Social security payable

This item totaled 1,629 thousand euros at December 31, 2001, a decrease of 161 thousand euros from December 31, 2000.

Other payables

At December 31, 2001, other payables were 15,560 thousand euros, for a net year-on-year decrease of 7,894 thousand euros.

A breakdown is provided below:

(in thousands of euros) 12/31/01 12/31/00 Change

Payables to shareowners of Toro Assicurazioni S.p.A., Magneti Marelli S.p.A.

and Comau S.p.A. for the purchases of shares 1,031 9,894 (8,863)

Amounts owed to employees paid in the first quarter of the following year 11,816 9,418 2,398

Dividends payable 638 682 (44)

Territorial Housing Authority (formerly Autonomous Institution for Low-Income Housing) 404 616 (212)

Miscellaneous payables (mainly charges for dividend payments) 1,671 2,844 (1,173)

Total other payables 15,560 23,454 (7,894)

All payables are due within five years.

13 Accrued expenses and deferred income

Accrued expenses

The balance of 4,106 thousand euros at December 31, 2001 is 2,832 thousand euros less than the figure at December 31, 2000.

A breakdown of this item is provided below:

(in thousands of euros) 12/31/01 12/31/00 Change

Interest on Fiat Ge.Va. loans 4,070 6,899 (2,829)

Amounts owed to employees 36 39 (3)

Total accrued expenses 4,106 6,938 (2,832)

Financial Statements at December 31, 2001 – Notes to the Financial Statements 67

67


68

68

14 Memorandum accounts

Unsecured guarantees

Suretyships

Suretyships totaled 3,785,339 thousand euros at December 31, 2001, and were mainly provided on behalf of subsidiaries.

They include suretyships provided on behalf of FiatSava S.p.A. (1,359,593 thousand euros to secure a debenture issue) and to secure

commercial paper, billets de trésorerie and money market claims totaling 1,538,018 thousand euros issued by other Group companies

(Fiat Finance Canada Ltd. for 139,163 thousand euros, Fiat France S.A. for 1,347,180 thousand euros and Fiat Polska Sp.zo.o.

for 51,675 thousand euros), bank loans (476,661 thousand euros), and rent payment obligations for buildings leased from Morgan

Stanley & Co. International Ltd. and other lessors (411,067 thousand euros).

The net decrease of 1,323,504 thousand euros from December 31, 2000 is mainly due to lower guarantees provided to secure

money market claims, billets de trésorerie and commercial paper (1,429,621 thousand euros) net of increases in Sava debentures

(36,286 thousand euros) and in bank loans (69,697 thousand euros).

Other unsecured guarantees

This item totaled 14,176,327 thousand euros at December 31, 2001, or 4,092,433 thousand euros more than at the end of 2000.

It includes the following:

❚ 13,912,557 thousand euros in guarantees provided on behalf of subsidiaries to secure bank loans (Banco CNH Capital S.A.

244,545 thousand euros, Fiat Automoveis SA 123,049 thousand euros, Iveco Fiat Brasil Ltda 71,204 thousand euros, Case

Corporation USA 250,523 thousand euros), bond issues (Fiat Finance and Trade Ltd. 11,049,893 thousand euros, Fiat Finance

North America 336,943 thousand euros, Banco Fiat S.A. 51,061 thousand euros, Fiat Finance Canada Ltd. 100,000 thousand

euros), credit lines (New Holland Credit Company LLC 567,344 thousand euros), VAT payable under the Group consolidation

process (235,619 thousand euros), as provided under Ministerial Decree of 12/13/79 as amended, for lease payments

(420,457 thousand euros), and sundry guarantees (461,919 thousand euros);

❚ 223,836 thousand euros for the risk on nonpayment on receivables due from tax authorities sold with recourse;

❚ 39,934 thousand euros in miscellaneous guarantees.

The net increase of 3,997,966 thousand euros in guarantees provided on behalf of subsidiaries is due mainly to new guarantees

provided to secure bond issues, loans and lease payments.

Upon sale of its controlling interest in the rolling stock activities, Fiat S.p.A. assumed certain obligations towards the purchaser

Alsthom N.V. in guarantee of any breaches of contract occurring prior to the sale. On the basis of due diligence results, it is

believed that Fiat does not face a reasonable likelihood of loss.

Commitments for capital expenditures

This item totaled 3,728,133 thousand euros at December 31, 2001. Of this amount, 3,404,831 thousand euros represent

the commitment (corresponding to the contractual amounts) stemming from the agreement executed on May 7, 1996 and the

supplemental agreements executed during 2000 and 2001 by Fiat S.p.A. and Treno Alta Velocità-T.A.V. S.p.A. for the design

and construction of the Bologna-Florence high-speed rail line, and 323,302 thousand euros the commitment for design and

construction of urgent work on the Turin-Milan line. The increase of 166,237 thousand euros compared with December 31, 2000

includes agreements reached during 2001 for bypasses on the Florence-Bologna line (17,440 thousand euros), urgent corrective

measures (103,976 thousand euros) and inflation adjustments (44,821 thousand euros).

Fiat S.p.A. has subcontracted design and construction to the CAV.E.T. and CAV.TO.MI. consortia.


Other commitments

This item, which totaled 24,817 thousand euros at December 31, 2001 (30,366 thousand euros at December 31, 2000),

represents the residuary amount of the commitment, undertaken by Fiat on the occasion of its centennial under a resolution

adopted by the Stockholders’ Meeting on June 22, 1998, to defray, over a ten-year period, the costs incurred to provide courses

for a Degree in Automotive Engineering (19,261 thousand euros) and pay for the renovation of the respective building (5,556

thousand euros). The building was delivered to the Turin Politecnico University in 1998. The decrease of 5,549 thousand euros

from December 31, 2000 reflects the outlays incurred in the year to renovate the building (3,755 thousand euros) and teach the

courses (1,794 thousand euros). As explained later in these Notes, these amounts were charged to income.

As part of the sale of Piemongest S.p.A. to lupiter S.r.l., Fiat S.p.A. guaranteed performance of the obligations envisaged under

that transaction.

It should be noted that, while Renault has a 33.5% interest in Teksid S.p.A., Fiat S.p.A. and Renault have agreed that this may

be resold to Fiat S.p.A., should there be a material change in the conditions upon which the original agreement was based.

Other memorandum accounts

Company assets held by third parties

This item totaled 31,276 thousand euros at December 31, 2001, a net increase of 31,080 thousand euros compared with the

figure at December 31, 2000, and mainly refers to securities owned by Fiat S.p.A. (Fiat U.S.A. Inc. and Cartiere Burgo S.p.A.)

deposited with the issuing companies.

15 Value of production

Service revenues

Service revenues, which amounted to 74,682 thousand euros in 2001, are mainly the result of transactions with Group companies.

The main component of this item (58,863 thousand euros) is fees paid for the use of the Fiat trademark. The amounts paid by

the individual companies, which are determined as a percentage of sales are: 49,916 thousand euros from Fiat Auto S.p.A.,

8,680 thousand euros from Iveco Fiat S.p.A., 246 thousand euros from FiatAvio S.p.A. The percentages are as follows: Fiat Auto

S.p.A. and FiatAvio S.p.A. 0.5% and Iveco Fiat S.p.A. 0.2%.

Service revenues also include 15,819 thousand euros for services rendered by management personnel of Fiat S.p.A. at the main

Group companies. Overall, they decreased by 10,007 thousand euros over a year earlier, mainly as a result of lower fees paid for

the use of the Fiat trademark.

Change in contract work in progress

This item represents mainly direct costs incurred for project management, coordination, and organization services during the

fiscal year in connection with the High-Speed Railway Project and capitalized as part of inventories.

Totaling 10,529 thousand euros in 2001, or 299 thousand euros less than in 2000, it consists of services provided by suppliers

outside the Group (10,223 thousand euros), Fiat Gesco S.p.A. (170 thousand euros), Fiat Ge.Va. S.p.A. (56 thousand euros) and

of costs for Fiat S.p.A. personnel (80 thousand euros).

Other income and revenues

These amounted to 10,885 thousand euros in 2001 and include 2,187 thousand euros in rental income from buildings owned

by Fiat S.p.A. and leased to Group companies; 3,365 thousand euros in fees paid by subsidiaries for services performed

by employees of Fiat S.p.A. in the capacity of Directors; 3,464 thousand euros in miscellaneous income and expense

reimbursements; 1,615 thousand euros in reimbursement of registration fees not due on the 1990 capital increase;

and 254 thousand euros in prior period income. They present an increase of 394 thousand euros from the 2000 figure.

Financial Statements at December 31, 2001 – Notes to the Financial Statements 69

69


70

70

16 Costs of production

Raw materials, supplies and merchandise

This item totaled 441 thousand euros in 2001, against 384 thousand euros in 2000.

It consists mainly of the cost of research publications, office supplies and printed forms.

Services

Service costs amounted to 84,328 thousand euros in 2001, an increase of 5,462 thousand euros compared with 2000 due to

higher expenses for general services and travel.

This item represents expenses for consulting services and research studies, as well as for travel, financial, administrative, tax and external

relations services. It also includes ordinary and extraordinary maintenance and general expenses (security, cleaning, EDP, telephone,

insurance, etc.). The main components of this item are amounts paid to Group companies for services provided totaling 43,844

thousand euros. They include support and consulting services in Italy (4,468 thousand euros to Fiat Gesco S.p.A., 1,573 thousand

euros to Fiat Ge.Va. S.p.A. and 1,883 thousand euros to Fiat International S.p.A.) and abroad (3,185 thousand euros to Fiat USA

Inc., 992 thousand euros to Fiat UK Ltd. and 638 thousand euros to Fiat Iberica S.A.); external relations services (3,051 thousand

euros to Fiat I.&C.S. S.r.l.); personnel training services (1,239 thousand euros to Isvor Fiat S.p.A.); office management, maintenance

(5,501 thousand euros to Ingest Facility S.p.A.); personnel and similar services (7,851 thousand euros to Fiat Se.p.In. S.c.p.A.);

information technology services (355 thousand euros to I.T.S. S.r.l. – 714 thousand euros to Fiat G.S.A. S.r.l. – 3,233 thousand euros

to Global Value S.p.A. – 645 thousand euros to Espin S.p.A.); security services (4,498 thousand euros to Consorzio Orione and 884

thousand euros to Consorzio Sirio), and services related to accounting and to Internal Auditing (945 thousand euros to Fiat Revi S.c.r.l.).

It also includes consulting, research and professional fees of 26,354 thousand euros.

Leases and rentals

Leases and rentals totaled 984 thousand euros in 2001, or 78 thousand euros less than in 2000.

Personnel

This item amounted to 69,544 thousand euros in 2001, a decrease of 1,478 thousand euros from 2000, as a result of lower

costs for wages and salaries and social security contributions and to higher costs related to personnel who left the Company.

The Company’s average staff decreased from 240 employees in 2000, including 133 managers, 100 clerical staff and 7 blue

collar workers, to 216 employees in 2001, including 113 managers, 97 clerical staff and 6 blue collar workers.

During 2001, 17 managers were seconded to the Group’s main subsidiaries (25 in 2000), which were billed for the respective

costs.

Amortization and depreciation

This item amounted to 3,706 thousand euros in 2001, or 89 thousand euros more than in 2000. Amortization of intangibles

totaled 429 thousand euros, while depreciation of fixed assets came to 3,277 thousand euros.

Other operating costs

At 32,942 thousand euros, this item was 11,838 thousand euros more than in 2000, mainly as a result of provision for fees to be

paid to the Chief Executive Officer upon termination of office (explained in detail at the end of these Notes).

It includes indirect taxes and fees (52 thousand euros for municipal property taxes, 162 thousand euros for nondeductible VAT,

etc.); contributions and association fees (2,671 thousand euros); costs incurred to renovate a building located at Lingotto complex

and owned by Turin Politecnico University (3,755 thousand euros) and contributions to fund the automotive engineering degree

course (1,794 thousand euros); losses on sales of vehicles and office equipment (227 thousand euros), settlement of the lawsuit

for revocation of the sale of land in Settimo Torinese (1,810 thousand euros), and sundry items.

It also includes fees paid to the Statutory Auditors and Directors of Fiat S.p.A. amounting to 145 thousand euros and 19,031

thousand euros, respectively.


Directors’ fees include 18,837 thousand euros in compensation awarded by the Stockholders’ Meeting as well as annual and

end-of-term fees approved by the Board of Directors for Directors who perform special functions, and 194 thousand euros, for

compensation provided in kind, which was booked under services.

17 Financial income and expenses

Investment income

Income from investments came to 713,220 thousand euros in 2001, a decrease of 42,242 thousand euros compared with 2000.

A breakdown is as follows:

(in thousands of euros) 2001 2000

Subsidiaries

Dividends distributed by:

Soparind S.p.A. 182,000 2,600

Fiat Auto Partecipazioni S.p.A. 99,973 –

FiatAvio S.p.A. 60,000 30,600

Sicind S.p.A. 30,000 120,000

Iveco N.V. 28,662 28,662

Toro Assicurazioni S.p.A. 28,475 16,105

Fiat Ge.Va. S.p.A. 20,000 36,000

Internazionale Holding Fiat S.A. 14,417 14,579

Itedi S.p.A. 1,000 3,000

Elasis S.c.p.A. 61 59

Magneti Marelli S.p.A. 32 160,345

Comau S.p.A. – 69,377

Teksid S.p.A. – 7,621

Business Solutions S.p.A. – 1,250

Total 464,620 490,198

Tax credit on dividends (58.73% of the dividends paid by Italian companies) 244,241 262,463

Total subsidiaries 708,861 752,661

Other companies

Dividends distributed by:

Mediobanca S.p.A. 1,989 1,535

Fin. Priv. S.r.l. 274 186

Assicurazioni Generali S.p.A. 11 44

Total 2,274 1,765

Tax credit on dividends paid 1,336 1,036

Capital gains from the sale of Assicurazioni Generali S.p.A. 749 –

Total other companies 4,359 2,801

Total investment income 713,220 755,462

Other financial income

❚ From receivables held as fixed assets

This item, which represents accrued interest on loans to Elasis - Sistema Ricerca Fiat nel Mezzogiorno S.c.p.A., totaled 1,144

thousand euros in 2001, or 54 thousand euros more than in 2000.

❚ From securities held as fixed assets other than equity investments

This item consists of interest earned on securities pledged to fund scholarship grants.

Income from these securities totaled 4 thousand euros in 2001, in line with 2000.

❚ From securities held as current assets other than equity investments

There was no income for this item in 2001.

Financial Statements at December 31, 2001 – Notes to the Financial Statements 71

71


72

72

This item amounted to 1,278 thousand euros in 2000 and it included interest and gains on the sale of Government securities

received in lieu of refunds on corporate and local income taxes due on the 1991 tax returns.

❚ Other income

Other income came to 14,991 thousand euros in 2001, an increase of 2,913 thousand euros compared with 2000.

A breakdown is as follows:

(in thousands of euros) 2001 2000

Subsidiaries

Interest earned from:

Fiat Ge.Va. S.p.A. 2,312 700

Miscellanea 670 103

Total 2,982 803

Fees for suretyships provided on behalf of the following Group companies:

FiatSava S.p.A. 3,352 3,266

Fiat Finance and Trade Ltd 2,991 1,758

Fiat France S.A. 562 328

New Holland Credit Company LLC 518 486

Fiat Auto S.p.A. 308 347

CNH Global N.V. – 345

Miscellanea 1,245 763

Total 8,976 7,293

Foreign exchange gains 2,104 6

Total subsidiaries 14,062 8,102

Others

Interest earned on bank deposits 278 3

Interest earned on amounts receivable from the tax authorities 539 3,779

Other interest income 81 134

Foreign exchange gains 31 60

Total others 929 3,976

Total other income 14,991 12,078

Interest and other financial expenses

Interest and other financial expenses decreased to 52,991 thousand euros in 2001, or 14,353 thousand euros less than in 2000.

A breakdown is provided below:

(in thousands of euros) 2001 2000

Subsidiaries

Interest paid to:

Fiat Ge.Va. S.p.A. 23,402 49,568

Fees paid to:

Fiat Ge.Va. S.p.A. 12 6

Foreign exchange losses 12 180

Miscellanea 43 33

Total subsidiaries 23,469 49,787

Others

Interest and other financing charges paid on bank borrowings 209 13

Interest paid to other lenders 274 76

Losses on the sale of Assicurazioni Generali S.p.A. shares to warrant holders – 116

Writedown of treasury stock 15,953 2,793

Discounting of receivables 9,390 10,052

Losses on receivables discounted without recourse 1,821 762

Charges for stock listings, dividend payments and other charges 1,819 1,966

Foreign exchange losses 56 1,779

Total others 29,522 17,557

Total interest and other financial expenses 52,991 67,344


18 Adjustments to financial assets

Writedowns of equity investments

This item totaled 3,840 thousand euros in 2001 and includes 3,538 thousand euros for writedown to book value of several equity

investments and 302 thousand euros for losses in excess of their book value. These include Fiat Se.p.In. S.c.p.a. (1,404 thousand

euros), Fiat International S.p.A. (890 thousand euros), Fiat Revi S.c.r.l. (23 thousand euros) and Istituto Europeo di Oncologia

S.r.l. (1,221 thousand euros).

Writedowns taken in 2000 were mainly attributable to Fiat I&CS S.r.l. (1,487 thousand euros), Fiat Se.p.In. S.c.p.A. (2,803 thousand

euros), Isvor Fiat S.p.A. (1,093 thousand euros), Fiat G.S.A. S.r.l. (1,232 thousand euros) and Fiat Revi S.c.r.l. (71 thousand euros).

19 Extraordinary income and expenses

Extraordinary income

Extraordinary income totaled 69 thousand euros in 2001, and consists of dividends expired.

In 2000, the capital gains on the sale of investments were generated by the sale of the subsidiaries Magneti Marelli S.p.A. to

Fiat Netherlands Holding N.V. for 370,316 thousand euros, Ingest S.p.A. to Business Solutions S.p.A. for 63 thousand euros,

and Belfiore 2001 S.p.A. (formerly Fiat Sagi S.r.l.) to Ingest S.p.A. for 1,700 thousand euros.

Extraordinary expenses

This account amounted to 856 thousand euros in 2001. For 15 thousand euros they refer to the sale of a 1.24% of the savings

shares of Magneti Marelli S.p.A. to Fiat Netherlands Holding N.V. and for 841 thousand euros they consists of provisions for early

retirement incentives.

In 2000 they mainly consisted of provisions for early retirement incentives (17,225 thousand euros) and other non recurring

expenses for employee performance bonuses (4,250 thousand euros).

20 Income taxes

Income taxes decreased by 86,779 thousand euros to 197,219 thousand euros in 2001, including 195,865 thousand euros in

corporate income taxes and 890 thousand euros for recovery of the regional tax on production activities.

The corporate income tax liability is totally offset by the tax credits on dividends, which is included under investment income,

amounting to 245,577 thousand euros (263,499 thousand euros in 2000).

* * *

The costs incurred for the transition to the euro totaled 329 thousand euros in 2001 (279 thousand euros in 2000). They were

charged in full to income in the fiscal year.

Financial Statements at December 31, 2001 – Notes to the Financial Statements

73

73


74

74

ANALYSIS OF FIXED ASSETS AND SUPPLEMENTAL INFORMATION

Cost of fixed assets

Gross value at beginning of fiscal year Increases Decreases

Disposals,

sales and

transfers

Gross value at end of fiscal year

Historical Upward Reclassi- Reclassi- Historical Upward Historical Upward

(in thousands of euros)

Intangible fixed assets

Start-up and expansion costs:

Cost of capital increase to 5,005.5 billion

lire (Resolution of the Stockholders’

cost adjustments Total fications Purchases fications cost adjustments cost adjustments Total

Meeting of 6/26/96)

Cost of capital increase to 5,506.05 billion

142 142 (142) – –

lire (Board Resolution of 4/24/97) 1,342 1,342 1,342 1,342

Leasehold improvements 651 651 651 651

Concessions, licenses,

2,135 2,135 (142) 1,993 1,993

trademarks and similar rights 764 764 22 4 (1) 789 789

Intangible assets in progress and advances 174 174 76 (22) 228 228

3,073 3,073 22 80 (22) (143) 3,010 3,010

Property, plant and equipment

Land and buildings 46,289 918 47,207 2 (426) 45,865 918 46,783

Plant and machinery 10,102 37 10,139 118 10,220 37 10,257

Other fixed assets 9,255 9,255 2,633 (3,563) 8,325 8,325

Construction in progress and advances – – 127 127 127

65,646 955 66,601 2,880 (3,989) 64,537 955 65,492

Gross value at beginning of fiscal year Increases Decreases Gross value at end of fiscal year

Permanent Disposals

losses in value Sales

(in thousands of euros)

Historical Upward

cost adjustments Total

Capital

increases, Riclassipurchases

fications

Historical

cost

Historical

cost

Upward

adjustments

Riclassifications

Historical Upward

cost adjustments Total

Financial fixed assets

Investments in:

Subsidiaries 8,072,272 38,583 8,110,855 66,656 41 (1,498) (199) – 8,137,272 38,583 8,175,855

Associated companies 36 36 (36) – –

Other companies 116,635 116,635 44,117 – (5) 160,747 160,747

8,188,943 38,583 8,227,526 110,773 41 (1,498) (199) – (41) 8,298,019 38,583 8,336,602

Loans to:

Subsidiaries 25,823 25,823 25,823 25,823

Associated companies 181 181 (181) – –

Other securities:

26,004 26,004 (181) 25,823 25,823

Debt securities 75 75 75 75

75 75 75 75


Revaluation of fixed assets

Classes of assets Upward adjustments Deductions Upward adjustments

included in gross value for divested included in gross value

(in thousands of euros) at beginning of period Increases assets at end of period

Property, plant and equipment

Land and buildings 918 918

Plant and machinery 37 37

Financial fixed assets

Investments in:

955 955

Subsidiaries 38,583 38,583

Depreciation and amortization of fixed assets

Classes of assets Amortization Increases due Decreases due Amortization

and depreciation to additions to disposals and depreciation

at beginning during the during the Reclassi- at end of

(in thousands of euros) of fiscal year fiscal year fiscal year fications fiscal year

Intangible fixed assets

Start-up and expansion costs

Cost of capital increase to 5,005.5

billion lire (Resolution of the

Stockholders’ Meeting of 6/26/96)

Cost of capital increase to 5,506.05

142 (142) –

billion lire (Board Resolution of 4/24/97) 1,073 269 1,342

Leasehold improvements 364 130 494

1,579 399 (142) 1,836

Concessions, licenses, trademarks and similar rights 734 30 (1) 763

2,313 429 (143) 2,599

Property, plant and equipment

Land and buildings 5,355 1,378 (77) 6,656

Plant and machinery 3,340 999 4,339

Other fixed assets 4,543 900 (1,800) 3,643

Writedowns of financial fixed assets

13,238 3,277 (1,877) 14,638

Classes of assets Writedowns Increases due to Decreases due to Writedowns

at beginning additions during Disposals during Permanent losses Reversals of at end of

(in thousands of euros) of fiscal year the fiscal year the fiscal year in value writedowns fiscal year

Financial fixed assets

Investments in:

Subsidiaries 625,089 890 (71) 625,908

Other companies 3,867 1,221 5,088

628,956 2,111 (71) 630,996

Financial Statements at December 31, 2001 – Notes to the Financial Statements

75

75


76

76

Art. 10, Law No. 72 of March 19, 1983 – Analysis of assets adjusted for inflation as of December 31, 2001

Classes of assets Historical cost Upward adjustments permitted by Law

Upward adjustments

(in euros)

not subject to

upward adjustments

subject to

upward adjustments No. 74 of 2/11/52 No. 72 of 3/19/83 No. 413 of 12/30/91

included in carrying

value at end of period

Property, plant and equipment

Land and buildings 45,644,436 220,770 35,188 578,432 304,249 917,869

Plant and machinery 10,202,673 17,353 37,701 37,701

Other fixed assets 8,324,284

64,171,393 238,123 35,188 616,133 304,249 955,570

Classes of assets Historical cost Upward adjustments permitted by Law Upward adjustments

not subject to subject to upward included in carrying

(in euros) upward adjustments adjustments Valuation reserves No. 74 of 2/11/52 No. 576 of 12/2/75 No. 72 of 3/19/83 value at end of period

Financial fixed assets

Investments in:

Subsidiaries 8,109,441,842 27,900,943 (625,979,474) 48,494 2,123,212 36,411,284 38,582,990

Other companies 160,747,670 (5,088,205)

8,270,189,512 27,900,943 (631,067,679) 48,494 2,123,212 36,411,284 38,582,990


List of investments in subsidiaries and associated companies required under Art. 2427, Section 5, of the Italian Civil

Code and additional information specified in the Consob communication of February 23, 1994

❚ Subsidiaries

included in financial fixed assets

Capital stock Result for the latest Stockholders’ equity % owned by Number of shares Total book value

Company and registered office (in euros) fiscal year (in euros) (in euros) Fiat S.p.A. (in euros)

Fiat Auto Partecipazioni S.p.A. – Turin

At 12/31/00 1,040,000,000 1,760,772,068 3,106,450,555 99.97 3,998,928,571 1,698,395,035

At 12/31/01 1,040,000,000 (43,655,860) 2,961,996,176 99.97

+0.03

3,998,928,571

indirect

1,698,395,035

Ferrari S.p.A. – Modena

At 12/31/00 516,500 (9,109,299) 171,353,391 87.00 8,700 249,620,835

❙ Purchases 300 15,284,822

At 12/31/01 516,500 24,310,091 195,663,482 90.00 9,000 264,905,657

Iveco N.V. – Amsterdam (The Netherlands)

At 12/31/00 1,179,440,000 124,211,000 2,307,207,000 44.71 11,464,864 948,058,255

At 12/31/01 1,179,440,000 (163,057,000) 2,110,184,000 44.71

+55.29 indirect

11,464,864 948,058,255

Fiat Netherlands Holding N.V. –

Amsterdam (The Netherlands)

At 12/31/00 62,325,000 (584,897,118) 2,131,544,107 74.00 102,490,000 882,273,089

At 12/31/01 62,325,000 (353,438,000) 1,739,639,000 74.00

+26.00 indirect

102,490,000 882,273,089

Teksid S.p.A. – Turin

At 12/31/00 229,200,000 217,660 415,350,764 66.50 152,418,000 151,057,103

At 12/31/01 229,200,000 (101,621,900) 313,728,864 66.50 152,418,000 151,057,103

Magneti Marelli S.p.A. – Milan

At 12/31/00 304,990,000 22,999,121 910,953,121 0.01 16,185 61,018

Ordinary shares

At 12/31/00 – – –

At 12/31/01 – – –

Savings shares

At 12/31/00 0.35 16,185 61,018

❙ Purchases 40,749 137,881

❙ Disposals (56,934) (198,899)

At 12/31/01 – – –

Comau B.V. – Amsterdam (The Netherlands)

At 12/31/00 150,000 1,074,000 383,548,000 100.00 quotas 300 383,045,927

At 12/31/01 150,000 (6,431) 383,541,720 100.00 quotas 300 383,045,927

FiatAvio S.p.A. – Turin

At 12/31/00 148,200,000 61,641,177 316,518,550 100.00 285,000,000 161,109,227

At 12/31/01 148,200,000 75,520,386 332,195,248 100.00 285,000,000 161,109,227

Soparind S.p.A. – Turin

At 12/31/00 6,240,000 193,598,579 233,370,388 100.00 12,000,000 6,355,604

❙ Merger with Sicind S.p.A. (12,000,000) (6,355,604)

At 12/31/01 – – – – – –

Itedi - Italiana Edizioni S.p.A. – Turin

At 12/31/00 5,980,000 1,472,672 17,757,042 100.00 11,500,000 5,899,105

At 12/31/01 5,980,000 1,615,170 18,372,212 100.00 11,500,000 5,899,105

Financial Statements at December 31, 2001 – Notes to the Financial Statements

77

77


78

78

List of investments (continued)

Capital stock Result for the latest Stockholders’ equity % owned by Number of shares Total book value

Company and registered office (in euros) fiscal year (in euros) (in euros) Fiat S.p.A. (in euros)

Toro Assicurazioni S.p.A. – Turin

At 12/31/00 171,765,000 69,582,883 1,202,187,719 62.26 106,953,604 1,260,648,514

Ordinary shares

At 12/31/00 39.68 37,628,952 606,826,417

❙ Exercise of purchase right 416,598 6,799,523

❙ Contribution to Sicind S.p.A. (38,045,550) (613,625,940)

At 12/31/01 – – –

Savings shares

At 12/31/00 89.92 55,091,791 515,965,127

❙ Exercise of purchase right 310,341 5,035,467

❙ Conversion into preference shares (55,402,132) (521,000,594)

At 12/31/01 – – –

Preference shares

At 12/31/00 90.89 14,232,861 137,856,970

❙ Exercise of purchase right 123,007 2,069,963

❙ Conversion of savings shares 55,402,132 521,000,594

❙ Contribution to Sicind S.p.A. (69,711,500) (660,507,632)

At 12/31/01 0.06 46,500 419,895

At 12/31/01

IHF - Internazionale Holding

Fiat S.A. – Paradiso (Switzerland)

181,841,880 42,688,105 1,330,195,613 0.03

+99.97 indirect

46,500 419,895

At 12/31/00 1,312,766,656

CHF 2,000,000,000

45,450,442

69,243,748

1,602,901,930

2,442,021,090

100.00 2,000,000 668,897,557

At 12/31/01

Sicind S.p.A. – Turin

1,348,708,611

CHF 2,000,000,000

49,612,944

73,571,034

1,681,564,586

2,493,592,124 100.00 2,000,000 668,897,557

At 12/31/00 248,611,242 31,743,497 647,498,531 100.00 248,611,242 598,321,294

❙ Contribution of Toro Assicurazioni S.p.A.,

Fiat I&CS S.r.l. and Agenzia Torino S.r.l. 1,274,968,391 1,274,968,391

❙ Merger of Soparind S.p.A. 6,240,000 6,355,604

❙ Partial demerger of Fiat Ge.Va. S.p.A. 17,470,475 18,790,621

At 12/31/01 1,547,290,108 (228,466,236) 1,739,303,584 100.00 1,547,290,108 1,898,435,910

Fiat GE.VA. S.p.A. – Turin

At 12/31/00 224,440,000 35,568,022 340,457,686 100.00 224,440,000 241,399,675

❙ Partial demerger to Sicind S.p.A.

❙ Partial demerger to

(17,470,475) (18,790,621)

Business Solutions S.p.A. (321,838) (346,157)

❙ Bonus issue 17,792,313

At 12/31/01 224,440,000 3,490,392 299,574,700 100.00 224,440,000 222,262,897

Fiat G.S.A. S.r.l. – Turin

At 12/31/00 1,300,000 (2,399,058) (1,003,158) 50.00 quotas 650,000 –

❙ Write-off and (650,000)

capital replenishment 250,000 250,000

❙ Contribution to Business Solutions S.p.A. (250,000) (250,000)

At 12/31/01 – – –

Fiat International S.p.A. – Turin

At 12/31/00 1,300,000 14,449 1,426,595 100.00 2,500,000 1,586,539

❙ Writedown to reflect loss in value (890,257)

At 12/31/01 1,300,000 (859,953) 566,642 100.00 2,500,000 696,282


List of investments (continued)

Capital stock Result for the latest Stockholders’ equity % owned by Number of shares Total book value

Company and registered office (in euros) fiscal year (in euros) (in euros) Fiat S.p.A. (in euros)

Fiat USA Inc. – New York (USA)

At 12/31/00 – – –

❙ Purchases 100.00 1,000 34,644,823

At 12/31/01

USD

19,096,789

16,830,000

9,522,800

8,392,444

34,952,444

30,803,589

100.00 1,000 34,644,823

Business Solutions S.p.A. – Turin

At 12/31/00 100,000,000 92,704,507 370,298,725 100.00 100,000,000 228,122,105

❙ Contribution of ITS S.r.l. and Fiat G.S.A. S.r.l. 1,090,227 1,090,227

❙ Partial demerger of Fiat Ge.Va. S.p.A. 321,838 346,157

At 12/31/01

Fiat Information & Communication

Services S.r.l. – Turin

101,412,065 154,772,952 526,602,775 100.00 101,412,065 229,558,489

At 12/31/00 800,000 (1,549,190) (79,731) 99.83 quotas 798,640 –

❙ Write-off and (798,640)

Capital replenishment 798,640 798,667

❙ Contribution to Sicind S.p.A. (798,640) (798,667)

At 12/31/01

Fiat Servizi per l’Industria

SE.P.IN. S.c.p.A. – Turin

– – –

At 12/31/00 3,850,000 (7,685,267) (3,835,267) 36.47 1,404,000 –

❙ Write off and (1,404,000)

Capital replenishment 1,404,000 1,404,000

❙ Write-off due to permanent loss in value (1,404,000)

At 12/31/01 3,850,000 (4,678,862) (828,862) 36.47 1,404,000 –

+63.53 indirect

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale – Turin

At 12/31/00 780,000 (5,674,502) (3,889,552) 26.00 202,800 –

Ordinary shares

At 12/31/00 52.00 202,800 –

❙ Write-off and (202,800)

Capital replenishment 202,800 202,800

At 12/31/01 52.00 202,800 202,800

+48.00 ind.

Preference shares

At 12/31/00 – – –

At 12/31/01 – – –

At 12/31/01

ITS Information Technology

Services S.r.l. – Turin

780,000 235,914 1,015,914 26.00 202,800 202,800

At 12/31/00 1,040,000 (2,511,103) 2,505,790 30.00 quotas 600,000 840,226

❙ Contribution to Business Solutions S.p.A. (600,000) (840,226)

At 12/31/01 – – –

Fiat Revi S.c.r.l. – Turin

At 12/31/00 300,000 (351,523) 250,221 9.00 quotas 27,000 22,500

❙ Advance on capital contribution 27,000

❙ Write-off due to permanent loss in value (22,500)

At 12/31/01 300,000 (250,221) 300,000 9.00 quotas

+91.00 indirect 27,000 27,000

Financial Statements at December 31, 2001 – Notes to the Financial Statements 79

79


80

80

List of investments (continued)

Capital stock Result for the latest Stockholders’ equity % owned by Number of shares Total book value

Company and registered office (in euros) fiscal year (in euros) (in euros) Fiat S.p.A. (in euros)

Elasis - Sistema Ricerca

Fiat nel Mezzogiorno

S. Cons. p. A. – Pomigliano d’Arco

At 12/31/00 19,240,000 36,721,958 79,507,413 0.17 61,667 22,741

At 12/31/01

“Orione” - Consorzio Industriale per

la Sicurezza e la Vigilanza – Turin

19,240,000 5,203,330 28,459,512 0.17

+71.93 indirect

61,667 22,741

At 12/31/00 26,081 (462,140) (436,059) 82.00 21,108

At 12/31/01 26,081 (309,377) (283,296) 82.00

+15.00 indirect

21,108

Consorzio “Sirio” per la

Sicurezza Industriale – Turin

At 12/31/00 55,155 6,499 86,202 1.58 764

At 12/31/01 55,426 (27,382) 59,091 1.58

+81.98 indirect

764

Consorzio Fiat Media Center – Turin

At 12/31/00 154,937 – 154,937 –

❙ Reclassification from other companies to subsidiaries 1.72 5,165

At 12/31/01

Fiat Oriente S.A.E.

(in liquidation) – Cairo (Egypt)

193,671 – 193,671 1.72

+58.62 indirect

5,165

At 12/31/00

EGP

13,858

50,000

864

3,119

82,744

298,543

100.00 12,500 7,472

At 12/31/01

EGP

12,455

50,000

4,155

16,681

78,521

315,223

100.00 12,500 7,472

❚ Total subsidiaries 7,549,946,301

❚ Associated companies

included in financial fixed assets

Capital stock Result for the latest Stockholders’ equity % owned by Number of shares Total book value

Company and registered office (in euros) fiscal year (in euros) (in euros) Fiat S.p.A. (in euros)

Agenzia Torino S.r.l. – Turin

At 12/31/00 103,291

Lire 200,000,000

8

15,556

103,299

200,015,556

35.00 quotas 70,000 36,152

❙ Contribution to Sicind S.p.A. (70,000) (36,152)

At 12/31/01 – – –

❚ Total associated companies –

❚ Total subsidiaries and associated companies 7,549,946,301


List of investments in other companies and additional information specified in the Consob communication of February

23, 1994

❚ Other companies included in financial fixed assets

% owned by Number Total book

Company and registered office Fiat S.p.A. of shares value (in euros)

Mediobanca S.p.A. – Milan

At 12/31/00 2.00 12,837,000 77,977,270

At 12/31/01 1.65 12,837,000 77,977,270

°) 161,643,504

Istituto per la Ricerca e la Cura del Cancro S.p.A. – Turin

At 12/31/00 19.35 6,000,000 6,197,483

At 12/31/01 19.35 6,000,000 6,197,483

Istituto Europeo di Oncologia S.r.l. – Milan

At 12/31/00 12.69 10,806,752

❙ Writedown to reflect loss in value (1,220,861)

At 12/31/01 12.69 9,585,891

Fin.Priv. S.r.l. – Milan

At 12/31/00 12.50 10,033,710

❙ Grants 2,000,000

❙ Purchase of quotas 2,320,952

At 12/31/01 14.29 14,354,662

Cartiere Burgo S.p.A. (Formerly Dieci S.r.l.) – Verzuolo

At 12/31/00 5.00 7,747,107

❙ Purchases 6,268,577

At 12/31/01 7.68 23,076,923 14,015,684

Consortium S.r.l. – Milan

At 12/31/00 – –

❙ Purchases 2.27 19,527,217

At 12/31/01 2.27 19,527,217

Tredicimarzo S.r.l. – Milan

At 12/31/00 – –

❙ Additions 10.00 1,000

❙ Grants 14,000,000

At 12/31/01 10.00 14,001,000

Consorzio Fiat Media Center – Turin

At 12/31/00 5,165

❙ Reclassification from other companies in subsidiaries (5,165)

At 12/31/01 –

Consorzio Lingotto – Turin

At 12/31/00 258

At 12/31/01 258

❚ Total other companies 155,659,465

Included in current assets

% owned by Number Total book

Company and registered office Fiat S.p.A. of shares value (in euros)

Assicurazioni Generali S.p.A. – Milan

At 12/31/00 0.01 179,420 753,039

❙ Disposals (179,420) (753,039)

At 12/31/01 – – –

°) Based on market prices on December 28, 2001.

% owned by Fiat

The indirect percentage held in the ordinary capital of subsidiaries is also indicated.

Financial Statements at December 31, 2001 – Notes to the Financial Statements

81

81


82

82

Treasury stock at December 31, 2001

Book value Par value

% owned by

Fiat S.p.A.

Number

of shares

per share

(in euros)

total

(in euros)

per share

(in euros)

total

(in euros)

Ordinary shares

At 12/31/00 0.18 1,002,000 27.18 27,234,360 5.00 5,010,000

❙ purchases

❙ writedown to market value

0.20 1,098,000 23.92 26,260,480 5.00 5,490,000

during the month of December (15,953,140)

At 12/31/01 0.38 2,100,000 17.88 37,541,700

*) 37,806,300

5.00 10,500,000

*) Based on market prices on December 28, 2001.


Tax status of equity reserves and other reserves — Presidential Decree No. 917 of December 22, 1986

Total amount of Total amount of

equity reserves and equity reserves and

other reserves which other reserves which

would be included Total amount would not be included

in the Company’s of other reserves in the stockholders’

taxable income in the generated from taxable income in the

event of distribution net income event of distribution Total

Description (in euros) (in euros) (in euros) (in euros)

Additional paid-in capital 1,636,002,728 1,636,002,728

Revaluation reserve under Law No. 413 of Dec. 30, 1991 22,590,857 22,590,857

Legal reserves 520,153,616 48,573,886 90,612,509 659,340,011

Treasury stock valuation reserve 37,541,700 37,541,700

Other reserves

Extraordinary reserve 16,526,621 114,472,868 130,999,489

Reserve for purchases of treasury stock

Out-of-period income reserve under Art. 55 of

Presidential Decree No. 917 of Dec. 22, 1986

299,115,106 644,597,292 943,712,398

(Law No. 675 of Aug. 12, 1977, Art. 18)

Reserve for capital grants under Art. 102 of

1,914,925 1,914,925

Presidential Decree No. 1523 of June 30, 1967

Reserve for investment grants

17,027,454 665,644 17,693,098

under Regional Law No. 19/84 92,962 29,818 122,780

Retained earnings 587,192,473 587,192,473

877,421,541 1,433,073,681 1,726,615,237 4,037,110,459

In accordance with specific resolutions of the Stockholders’ Meeting, the following reserves were transferred to stockholders’ equity:

❙ Reserve under Art. 34 of Law No. 576 of 12/2/75 453,070,328

❙ Revaluation reserve under Law No. 576 of 12/2/75 97,675,103

❙ Revaluation reserve under Law No. 72 of 3/19/83 266,350,533

which in the event of distribution would be included in the

Company’s taxable income, and:

❙ Revaluation reserve under Law No. 74 of 2/11/52 20,052,596

❙ Extraordinary reserve 953,046

Financial Statements at December 31, 2001 – Notes to the Financial Statements

83

83


84

84

Analysis of cash flow

(in thousands of euros) 2001 2000

A. Initial short-term borrowings (224,849) (244,719)

B. Cash flow — operating activities

Net income for the fiscal year 378,673 692,122

Depreciation and amortization 3,706 3,617

Capital losses on sale of fixed assets 121 (371,800)

Writedowns of equity investments 3,538 3,695

Net change in reserve for employee severance indemnities and other reserves 697 (3,176)

Changes in operating receivables and payables 195,239 (40,132)

C. Cash flow — investing activities

Investments in fixed assets

581,974 284,326

Equity investments (110,773) (1,554,572)

Other financial fixed assets – (181)

Other fixed assets (2,960) (4,615)

Selling price, or redemption value, of long-term investments 2,371 1,294,763

D. Cash flow — financing activities

(111,362) (264,605)

New borrowings 90,000 353,291

Reimbursement of borrowings (103,291) –

(13,291) 353,291

E. Distribution of net income (352,459) (353,142)

F. Net cash flow for the period (B+C+D+E) 104,862 19,870

G. Net borrowings at end of period (A+F) (119,987) (224,849)


Fees paid to Directors and Statutory Auditors (Article 78 of Consob Regulations, Resolution No. 11971 of May 14, 1999)

Person Description of position Fees (in thousands of euros)

First name and

last name Position held Term of office

Compensation

for office held

Non-cash

benefits

Bonuses and

other Incentives

Other

compensation

(*) (**)

Paolo Fresco Chairman 1/1 - 12/31 1) 1,055 48

Paolo Cantarella Chief Executive Officer 1/1 - 12/31 2) 2,973 17 3) 38

Angelo Benessia Director 5/14 - 12/31 59 7

Franco Bernabé

Carl Ludwig

Director 1/1 - 12/31 89 12

von Boehm-Bezing Director 1/1 - 12/31 80 12

Flavio Cotti Director 1/1 - 12/31 92 12

John Philip Elkann

Gabriele

Director 1/1 - 12/31 86 12

Galateri di Genola Director 1/1 - 12/31 101 12 3) 10

Franzo Director/

Grande Stevens Secretary 1/1 - 12/31 4) 314 12 5) 291

Gianfranco Gutty Director 1/1 - 12/31 83 12

Virgilio Marrone Director 1/1 - 2/27 and 5/14 - 12/31 6) 75 9

Felix George Rohatyn Director 2/27 - 12/31 71 10

Renato Ruggiero Director 1/1 - 6/6 41 5

John Francis Welch Director 1/1 - 12/31 7) 85 12 8) 284

Cesare Ferrero Chairman of the Board

of Statutory Auditors 1/1 - 12/31 62 3) 89

Giorgio Ferrino Statutory Auditor 1/1 - 12/31 41 3) 41

Lamberto Jona Celesia Statutory Auditor 1/1 - 12/31 41 3) 59

(*) For Directors, the amount includes the compensation for the 2001 term of office (prorated on the basis of time served) in the amount determined

by the Stockholders’ Meeting, and special compensation for assignments and functions performed.

(**) They include the pro-rata share of the insurance policy approved by the Stockholders’ Meeting (12,120 euros pro capite) and the use of means

of transport.

1) The annual compensation for the post of Chairman (947,000 euros) is a variable amount equal to the average stock market value for the months

of April and October of 40,000 ordinary Fiat shares.

2) The compensation for the post of Chief Executive Officer (2,869,000 euros) includes a fixed amount of 2,066,000 euros and a variable portion

equivalent to the average market value for the months of April and October of 38,500 ordinary Fiat shares. With a resolution approved on February 27,

2001, the Board of Directors awarded the Chief Executive Officer the following severance package: a) an amount equivalent to his compensation for

three years; b) a sum payable over twenty years, the amount of which will be proportionate to the actual number of years he served as CEO, but which,

after ten years, may not be greater than five times the fixed portion of his last annual compensation.

3) Fees for the post held at certain Group subsidiaries.

4) The fee for the post of Secretary amounts to 207,000 euros.

5) Fees for the post held at certain Group subsidiaries and the provision of professional services.

6) The fee is paid directly to IFI S.p.A., of which this Director is an employee.

7) The fee, upon request of the Director, is deferred up to the expiration of his office and will be paid in ordinary Fiat shares pursuant to the resolution

of the Stockholders’ Meeting of June 5, 2000.

8) Consulting contract with Jack Welch LLC.

Financial Statements at December 31, 2001 – Notes to the Financial Statements

85

85


86

86

Stock options granted to Directors (Article 78 of Consob Regulations, Resolution No. 11971 of May 14, 1999)

Grantee Options granted during the year Options exercised during the year

First and last name

Number of shares

buyable

Exercise

price per share Exercise period

Number of

shares bought

Exercise

price

Paolo Fresco 250,000 27.73 07/25/01 - 07/25/08 – –

1,000,000 25.82 07/01/02 - 10/30/08 – –

Paolo Cantarella 100,000 28.45 04/01/01 - 03/31/07 – –

100,000 30.63 02/18/01 - 02/18/08 – –

50,000 27.73 07/25/01 - 07/25/08 – –

200,000 27.07 02/27/02 - 02/27/09 – –

Turin, March 27, 2002

The Board of Directors

By:

Paolo Fresco

Chairman


Annex TO THE NOTES

to the Consolidated Financial Statements

87

87


88

88

The Companies of the Fiat Group

As required by Consob Resolution No. 11971 of May 14,

1999 as amended (Articles 81 and 126 of the Regulations),

a complete list of the companies and significant equity

investments of the Group is provided below.

The companies on this list have been classified according to

percentage of ownership, method of consolidation and type

of business. The information provided for each company includes:

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Controlling company

❚ Parent company

Fiat S.p.A. Turin Italy 2,753,025,000 EURO – – – –

Subsidiaries consolidated on a line-by-line basis

❚ Automobiles

name, registered office, country and capital stock stated in the

original currency. The percentage of Group consolidation and the

percentage held by Fiat S.p.A. or its subsidiaries are also shown.

A separate column shows the percentage held

of the voting rights at the annual ordinary stockholders’

meeting, when this figure differs from the percentage interest

held in the company.

Fiat Auto Holdings B.V. Amsterdam Netherlands 500,000 EURO 79.99 Fiat Auto Partecipazioni S.p.A. 80.000

Banco Fiat S/A São Paulo Brazil 351,651,899 BRL 79.97 Fiat Auto S.p.A. 94.968

Fiat Automoveis S.A. - FIASA 5.000

Clickar S.p.A. Turin Italy 5,000,000 EURO 79.99 Targasys S.r.l. a S.U. 100.000

Fiat Administradora de Consorcios Ltda. São Paulo Brazil 37,253,627 BRL 79.97 Banco Fiat S/A 100.000

Fiat Auto Argentina S.A. Buenos Aires Argentina 444,048,188 ARS 79.99 Fiat Auto S.p.A. 66.173

Fiat Automoveis S.A. - FIASA 33.827

Fiat Auto (Belgio) S.A. Brussels Belgium 305,987,000 BEF 79.99 Fiat Finance Netherlands B.V. 99.990

Fiat Auto (Suisse) S.A. 0.010

Fiat Auto Contracts Ltd Slough-Berkshire Great Britain 11,000,000 GBP 79.99 Fidis S.p.A. 100.000

Fiat Auto Espana S.A. Alcalá de Henares Spain 9,600,000,000 ESP 79.99 Fiat Finance Netherlands B.V. 99.998

Fiat Auto (Suisse) S.A. 0.002

Fiat Auto Financial Services Limited Slough-Berkshire Great Britain 2,250,000 GBP 79.99 Fiat Auto (U.K.) Ltd 100.000

Fiat Auto (France) S.A. Trappes France 91,050,000 EURO 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Auto Hellas S.A. Argyroupoli-Athens Greece 10,897,220,000 GRD 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Auto Holding S.A. Lugano-Paradiso Switzerland 1,900,000 CHF 79.99 Fiat Auto S.p.A. 100.000

Fiat Auto (Ireland) Ltd. Dublin Ireland 4,000,000 GBP 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Auto Japan K.K. Minatu-Ku. Tokyo Japan 420,000,000 JPY 79.99 Fiat Auto S.p.A. 100.000

Fiat Auto Lease N.V. Amsterdam Netherlands 1,000,000 NLG 79.99 Fidis S.p.A. 100.000

Fiat Auto Location S.A.S. Levallois Perret France 3,000,000 EURO 79.99 Fidis S.p.A. 100.000

Fiat Auto Maroc S.A. Casablanca Morocco 314,000,000 MAD 79.95 Fiat Auto S.p.A. 99.950

Fiat Auto Nederland B.V. Zuidoost Netherlands 12,500,000 NLG 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Auto Poland S.A. Bielsko-Biala Poland 660,334,600 PLN 62.76 Fiat Auto S.p.A. 78.451

Fiat Auto Portuguesa S.A. Lisbon Portugal 44,187,527 EURO 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Auto Renting S.A. Alcalá de Henares Spain 1,388,100 EURO 79.99 Fidis S.p.A. 99.998

Fiat Auto Espana S.A. 0.002

Fiat Auto S.p.A. Turin Italy 1,800,000,000 EURO 79.99 Fiat Auto Holdings B.V. 100.000

Fiat Auto South Africa (Proprietary) Ltd Sandton South Africa 440 ZAR 79.99 Fiat Auto S.p.A. 100.000

Fiat Auto (Suisse) S.A. Geneva Switzerland 42,000,000 CHF 79.99 Fiat Auto Holding S.A. 53.571

Fiat Auto S.p.A. 46.429

Fiat Auto Trading S.A. Betim Brazil 641,286 BRL 79.99 Fiat Automoveis S.A. - FIASA 100.000

Fiat Auto (U.K.) Ltd Slough-Berkshire Great Britain 44,600,000 GBP 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Auto Var S.r.l. a S.U. Turin Italy 10,200,000 EURO 79.99 Fiat Auto S.p.A. 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Fiat Automobil A.G. Heilbronn Germany 190,000,000 DEM 79.99 Fiat Finance Netherlands B.V. 99.000

Fiat Auto (Suisse) S.A. 1.000

Fiat Automobil GmbH Vienna Austria 500,000 ATS 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Automobiler Danmark A/S Glostrup Denmark 55,000,000 DKK 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Automoveis S.A. - FIASA Betim Brazil 1,332,341,332 BRL 79.99 Fiat Auto S.p.A. 100.000

Fiat Bank GmbH Vienna Austria 65,000,000 ATS 79.99 Fidis S.p.A. 50.000

Fiat Auto S.p.A. 50.000

Fiat Bank GmbH Heilbronn Germany 77,400,000 DEM 79.99 Fiat Automobil A.G. 100.000

Fiat Bank Polska S.A. Warsaw Poland 125,000,000 PLN 79.99 Fiat Bank GmbH 100.000

Fiat CR Spol. S.R.O. Prague Czech Republic 1,000,000 CZK 79.99 Fiat Auto S.p.A. 100.000

Fiat Credit Belgio S.A. Evere-Brussels Belgium 150,000,000 BEF 79.99 Fiat Auto (Belgio) S.A. 99.999

Fidis Nederland B.V. 0.001

Fiat Credit France S.A. Levallois Perret France 11,360,000 EURO 79.99 Fiat France Participations Financieres S.A. 100.000

Fiat Credit Hellas Commercial S.A. of Vehicles Argyroupoli-Athens Greece 200,000,000 GRD 79.99 Fidis S.p.A. 100.000

Fiat Credito Compania Financiera S.A. Buenos Aires Argentina 147,003,984 ARS 79.99 Fidis S.p.A. 100.000

Fiat Credito Portugal S.A. Lisbon Portugal 1,560,000,000 PTE 79.99 Fiat Auto Portuguesa S.A. 100.000

Fiat Distribuidora Portugal S.A. Lisbon Portugal 100,060,000 PTE 79.99 Fiat Auto Portuguesa S.A. 100.000

Fiat Factoring S.A. Levallois Perret France 2,400,000 EURO 79.99 Fiat France Participations Financieres S.A. 100.000

Fiat Factoring Sociedade de Fomento Comercial Ltda Barueri-São Paulo Brazil 52,702,068 BRL 79.97 Fiat Servicos Tecnicos em Administracao Ltda. 100.000

Fiat Finance Holding S.A. Luxembourg Luxembourg 2,300,000 EURO 79.99 Fiat Finance Netherlands B.V. 99.995

Fidis S.p.A. 0.005

Fiat Finance Netherlands B.V. Amsterdam Netherlands 550,000,000 EURO 79.99 Fidis S.p.A. 62.411

Fiat Auto Holdings B.V. 37.589

Fiat Finance Polska S.A. Warsaw Poland 15,000,000 PLN 79.99 Fiat Finance Netherlands B.V. 99.998

Fiat Auto Poland S.A. 0.001

Fiat Polska Sp. z o.o. 0.001

Fiat Finance S.A. Luxembourg Luxembourg 9,900,000 EURO 79.99 Fiat Finance Holding S.A. 99.995

Fidis S.p.A. 0.005

Fiat Finance S.A. Schlieren-Zurich Switzerland 24,100,000 CHF 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat Finansiering A.S. Glostrup Denmark 13,000,000 DKK 79.99 Fiat Finance Netherlands B.V. 100.000

Fiat France Participations Financieres S.A. Paris France 51,737,516 EURO 79.99 Fiat Auto (France) S.A. 100.000

Fiat India Automobiles Limited Mumbai India 18,780,741,500 INR 79.99 Fiat Auto S.p.A. 100.000

Fiat India Ltd. Mumbai India 12,217,862,500 INR 77.90 Fiat India Automobiles Limited 87.029 85.567

Fiat Auto S.p.A. 10.352 11.519

Fiat Lease Auto Snc Levallois Perret France 4,954,593 EURO 79.99 Fiat Credit France S.A. 99.997

Sofice S.A. 0.003

Fiat Leasing GmbH Vienna Austria 500,000 ATS 79.99 Fiat Bank GmbH 49.000

Fidis S.p.A. 51.000

Fiat Leasing GmbH & Co. OHG Heilbronn Germany 24,004,000 DEM 79.99 Fiat Bank GmbH 99.983

Fiat Leasing Verwaltungs GmbH 0.017

Fiat Leasing Portugal S.A. Lisbon Portugal 750,000,000 PTE 79.99 Fiat Credito Portugal S.A. 100.000

Fiat Leasing S.A.-Arrendamento Mercantil São Paulo Brazil 124,114,440 BRL 79.97 Banco Fiat S/A 100.000

Fiat Leasing Verwaltungs GmbH Heilbronn Germany 50,000 DEM 79.99 Fiat Automobil A.G. 100.000

Fiat Location Auto Snc Levallois Perret France 76,225 EURO 79.99 Fiat Credit France S.A. 99.980

Sofice S.A. 0.020

Fiat Magyarorszag Kereskedelmi KFT. Budapest Hungary 150,000,000 HUF 79.99 Fiat Auto S.p.A. 100.000

FiatSava S.p.A. Turin Italy 86,460,400 EURO 79.99 Fidis S.p.A. 100.000

Fiat Servicos Tecnicos em Administracao Ltda. São Paulo Brazil 41,411,502 BRL 79.97 Banco Fiat S/A 100.000

Fiat SR Spol. SR.O. Bratislava Slovack Republic 1,000,000 CZK 79.99 Fiat Auto S.p.A. 100.000

Fiat Sundaram Auto Finance Private Limited Chennai India 230,000,000 INR 40.80 Fiat Finance Netherlands B.V. 51.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 89

89


90

90

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Fiat Versicherungsdienst GmbH Heilbronn Germany 26,000 EURO 89.80 Fiat Bank GmbH 51.000

Rimaco S.A. 49.000

Fidis Nederland B.V. Maarssen Netherlands 6,800,000 NLG 79.99 Fiat Auto Nederland B.V. 100.000

Fidis S.p.A. Turin Italy 510,532,342 EURO 79.99 Fiat Auto S.p.A. 100.000

Inmap 2000 Espana S.L. Madrid Spain 12,020,000 EURO 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 100.000

Internat.Metrop.Automotive Prom. (Belgio) S.A. Waterloo Belgium 7,436,806 EURO 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 99.999

Fiat Auto (Belgio) S.A. 0.001

International Metropolitan

Automotive Promotion (France) S.A. Paris France 56,000 EURO 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 100.000

Property and Car Retailing-Pro.Ca.R.

International S.p.A. Turin Italy 15,000,000 EURO 79.99 Fiat Auto S.p.A. 99.000

Fidis S.p.A. 1.000

Property and Car Retailing-Pro.Ca.R.

Deutschland GmbH Frankfurt Germany 8,691,962 EURO 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 100.000

Sata-Società Automobilistica

Tecnologie Avanzate S.p.A. Melfi Italy 276,640,000 EURO 79.99 Fiat Auto S.p.A. 100.000

Sava-Leasing Società per Azioni Turin Italy 36,400,000 EURO 79.99 Fidis S.p.A. 100.000

Savarent S.p.A. Turin Italy 18,000,000 EURO 79.99 Fidis S.p.A. 100.000

Société Immobilière Joker S.A. Geneva Switzerland 50,000 CHF 79.99 Fiat Auto (Suisse) S.A. 100.000

Sofice-Société de Financement

des Concessionaires S.A. Levallois Perret France 3,353,600 EURO 80.06 Fiat Auto (France) S.A. 99.356

CNH France SAS 0.429

Iveco France S.A. 0.215

TarCredit E.F.C. S.A. Alcalá de Henares Spain 3,577,590,000 ESP 79.99 Fiat Auto Espana S.A. 100.000

Targa Assistance S.r.l. Turin Italy 260,000 EURO 48.00 Targasys S.r.l. a S.U. 60.000

Targa Rent S.r.l. Turin Italy 7,140,000 EURO 79.99 Targasys S.r.l. a S.U. 100.000

Targasys S.r.l. a S.U. Turin Italy 10,400,000 EURO 79.99 Fidis S.p.A. 100.000

❚ Agricultural and Construction Equipment

CNH Global N.V. Amsterdam Netherlands 124,957,724 EURO 84.56 Fiat Netherlands Holding N.V. 84.387

CNH Global N.V. 0.210 0.000

Austoft Holdings Limited Bundaberg Australia 10,145,000 AUD 84.56 Case Corporation Pty. Ltd. 100.000

Austoft Inc. Plantation United States 100 USD 84.56 Case Corporation 100.000

Austoft Industries Limited Bundaberg Australia 16,353,225 AUD 84.56 Lake Hull Pty. Ltd. 100.000

Banco CNH Capital Brazil S.A. Curitiba Brazil 23,075,613 BRL 84.56 CNH Global N.V. 100.000

Bli Group Inc. Wilmington United States 1,000 USD 84.56 New Holland North America Inc. 100.000

Bli Sales Inc. Bridgetown Barbados 1,000 USD 84.56 Bli Group Inc. 100.000

Blue Leaf I.P. Inc. Wilmington United States 1,000 USD 84.56 Bli Group Inc. 100.000

Brascor S.A. Industria e Comercio São Paulo Brazil 11,656 BRL 84.56 Case Brasil & CIA 90.000

PPM do Brazil Ltda. 10.000

Case (Barbados) FSC Ltd. Bridgetown Barbados 1,000 USD 84.56 Case Corporation 100.000

Case Belgium N.V. Schelle Belgium 427,620 EURO 84.56 Case Corporation 99.994

Case Equipment International Corporation 0.006

Case Bodenverdichtungs-Gerate Verwantungs GmbH Neuss-Rhein Germany 112,500 DEM 84.56 Case Germany GmbH 100.000

Case Bor-Mor Holdings Inc. Minneapolis United States 5 USD 84.56 Case Corporation 100.000

Case Brasil & CIA São Paulo Brazil 81,160,001 BRL 84.56 Case Brazil Holdings Inc. 89.750

Case Equipment International Corporation 10.250

Case Brazil Holdings Inc. Wilmington United States 1,000 USD 84.56 Case Corporation 100.000

Case Canada Corporation Toronto Canada 1,560 CAD 84.56 Case Corporation 100.000

Case Canada Investments Ltd. Calgary Canada 294,477,700 CAD 84.56 Case Corporation 100.000

Case Canada Receivables Inc. Calgary Canada 1 CAD 84.56 Case Credit Corporation 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Case Corporation Wilmington United States 4 USD 84.56 Fiatallis North America Inc. 61.111

CaseNewHolland Inc. 38.889

Case Corporation Pty. Ltd. St. Marys Australia 87,728,439 AUD 84.56 Case Corporation 100.000

Case Credit Australia Investments Pty. Ltd. St. Marys Australia 16,783,048 AUD 84.56 Case Credit Global Investments Ltd. 100.000

Case Credit Australia Pty. Ltd. St. Marys Australia 26,808,874 AUD 84.56 Case Credit Corporation 100.000

Case Credit Corporation Wilmington United States 1,000 USD 84.56 CNH Capital Corporation 100.000

Case Credit Global Investments Ltd. Hamilton Bermuda 12,000 USD 84.56 Case Credit Corporation 100.000

Case Credit Holdings Limited Wilmington United States 5 USD 84.56 Case Credit Corporation 100.000

Case Credit Limited Doncaster Great Britain 6,500,000 GBP 84.56 Case United Kingdom Limited 100.000

Case Credit Ltd. Calgary Canada 1 CAD 84.56 Case Credit Corporation 100.000

Case Credit Wholesale Pty. Limited St. Marys Australia 347,750 AUD 84.56 Case Corporation Pty. Ltd. 100.000

Case Currency Management Inc. Wilmington United States 5 USD 84.56 Case Corporation 100.000

Case Equipment Holdings Limited Wilmington United States 5 USD 84.56 Case Corporation 100.000

Case Equipment International Corporation Wilmington United States 1,000 USD 84.56 Case Corporation 100.000

Case Europe S.a.r.l. Roissy France 50,000 FRF 84.56 Case Corporation 100.000

Case France S.A. Le Plessis-Belleville France 138,813,150 EURO 84.56 CNH International S.A. 100.000

Case Germany GmbH Heidelberg Germany 100,000 DEM 84.56 Case Harvesting Systems GmbH 100.000

Case Harvesting Systems GmbH Neustadt Germany 550,000 DEM 84.56 Case Corporation 100.000

Case India Limited Wilmington United States 5 USD 84.56 Case Corporation 100.000

Case International Limited Basildon Great Britain 1 GBP 84.56 New Holland Holding Limited 100.000

Case International Marketing Inc. Wilmington United States 5 USD 84.56 Case Corporation 100.000

Case International United Kingdom Limited Doncaster Great Britain 1 GBP 84.56 Case United Kingdom Limited 100.000

Case LBX Holdings Inc. Wilmington United States 5 USD 84.56 Case Corporation 100.000

Case Machinery (Shanghai) Co. Ltd. Shanghai People’s Rep. of China 5,000,000 USD 84.56 Case Corporation 100.000

Case Melbourne Pty Ltd. St. Marys Australia 2 AUD 84.56 Case Corporation Pty. Ltd. 100.000

Case Mexico S.A. Mexico Mexico 810,000 MXN 84.56 Case Corporation 100.000

CaseNewHolland Inc. Wilmington United States 5 USD 84.56 CNH Global N.V. 100.000

Case New Holland Italia S.p.A. Modena Italy 15,600,000 EURO 84.56 CNH International S.A. 100.000

Case-Poclain GmbH Heidelberg Germany 50,000 DEM 84.56 Case Germany GmbH 100.000

Case Steyr Landmaschinentechnik GmbH St. Valentin Austria 9,000,000 EURO 84.56 CNH Global N.V. 100.000

Case United Kingdom Limited Doncaster Great Britain 3,763,618 GBP 84.56 Case Corporation 100.000

Case Wholesale Receivables Inc. Wilmington United States 1,000 USD 84.56 Case Corporation 100.000

CNH Argentina S.A. Buenos Aires Argentina 8,059,113 ARS 84.56 New Holland Holdings Argentina S.A. 80.654

Case Corporation 19.346

CNH Capital Benelux S.A. Zedelgem Belgium 1,350,000 EURO 84.56 CNH Global N.V. 99.000

CNH Capital U.K. Ltd 1.000

CNH Capital Corporation Wilmington United States 5 USD 84.56 Case Corporation 100.000

CNH Capital (Europe) plc Navan Ireland 38,100 EURO 84.56 CNH Capital plc 99.984

New Holland Financial Services S.r.l. 0.003

CNH International S.A. 0.003

New Holland Financial Services A/S 0.003

New Holland Financial Services Ltd 0.003

CNH Global N.V. 0.003

CNH Trade N.V. 0.001

CNH Capital Insurance Agency Inc. Wilmington United States 5 USD 84.56 Case Credit Corporation 100.000

CNH Capital plc Navan Ireland 6,386,790 EURO 84.56 CNH Global N.V. 100.000

CNH Capital Receivables Inc. Wilmington United States 5 USD 84.56 Case Credit Corporation 100.000

CNH Capital U.K. Ltd Basildon Great Britain 1 GBP 84.56 CNH Global N.V. 100.000

CNH Deutschland GmbH Heilbronn Germany 18,457,650 EURO 84.56 CNH International S.A. 100.000

CNH Engine Corporation Wilmington United States 1,000 USD 84.56 Case Corporation 100.000

CNH France SAS Levallois Perret France 39,796,200 EURO 84.56 Case France S.A. 100.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 91

91


92

92

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

CNH Information Technology Company LLC Wilmington United States 750,000 USD 84.56 Case Corporation 100.000

CNH International S.A. Luxembourg Luxembourg 300,000,000 USD 84.56 CNH Global N.V. 100.000

CNH Maquinaria Spain S.A. Coslada Spain 21,000,000 EURO 84.56 CNH International S.A. 77.142

Case Corporation 22.857

CNH Receivables Inc. Wilmington United States 1,000 USD 84.56 Case Credit Corporation 100.000

CNH Trade N.V. Amstelveen Netherlands 50,000 EURO 84.56 CNH Global N.V. 100.000

Concord Inc. Bismark United States 100 USD 84.56 Case Corporation 100.000

Fiatallis Latino Americana Ltda Contagem Brazil 109,224,063 BRL 84.56 CNH Global N.V. 100.000

Fiatallis North America Inc. Wilmington United States 10 USD 84.56 CaseNewHolland Inc. 100.000

Fiat Hitachi Excavators Belgium S.A. Herstal-lez-Liege Belgium 247,900 EURO 48.14 Fiat Hitachi Excavators S.p.A. 100.000

Fiat Hitachi Excavators Deutschland GmbH Sinsheim Germany 2,556,500 EURO 33.70 Fiat Hitachi Excavators S.p.A. 70.000

Fiat Hitachi Excavators France S.A. Trappes France 2,592,500 EURO 48.14 Fiat Hitachi Excavators S.p.A. 100.000

Fiat Hitachi Excavators S.p.A. San Mauro Torinese Italy 79,541,000 EURO 48.14 CNH Global N.V. 56.931

Flexi-Coil (Australia) Pty. Ltd. Toowoomba Australia 2 AUD 84.56 Flexi-Coil Ltd 100.000

Flexi-Coil Inc. Reno United States 1,000 USD 84.56 Flexi-Coil (Netherlands) Holding B.V. 100.000

Flexi-Coil Ltd Saskatoon Canada 296 CAD 84.56 New Holland Investments Canada Ltd 100.000

Flexi-Coil (Netherlands) Holding B.V. Leiden Netherlands 300,000 NLG 84.56 Flexi-Coil Ltd 100.000

Flexi-Coil (U.K.) Limited York Great Britain 1,000 GBP 84.56 Flexi-Coil Ltd 100.000

Harbin New Holland Beidahuang Tractors Ltd. Harbin People’s Rep. of China 5,300,000 USD 59.07 N.H. Mauritius Ltd. 69.850

HFI Holdings Inc. Wilmington United States 1,000 USD 84.56 Case Corporation 100.000

JV UzCaseMash LLC Tashkent Uzbekistan 15,000,000 USD 50.74 Case Equipment Holdings Limited 60.000

JV UzCaseService LLC Tashkent Uzbekistan 4,117,500 USD 43.13 Case Equipment Holdings Limited 51.000

JV UzCaseTractor LLC Tashkent Uzbekistan 15,000,000 USD 43.13 Case Equipment Holdings Limited 51.000

Kestrin Pty. Ltd. Bundaberg Australia 2 AUD 84.56 Austoft Holdings Limited 100.000

Lake Hull Pty. Ltd. Bundaberg Australia 100 AUD 84.56 Austoft Holdings Limited 100.000

MBA AG, Baumaschinen Bassersdorf Switzerland 4,000,000 CHF 80.52 O & K Orenstein & Koppel AG 100.000

New Holland Australia Pty. Limited Riverstone Australia 3,500,000 AUD 84.56 CNH Global N.V. 100.000

New Holland Belgium N.V. Zedelgem Belgium 27,268,300 EURO 84.56 CNH International S.A. 100.000

New Holland Bizon Sp. z o.o. Plock Poland 84,463,200 PLN 84.56 New Holland Belgium N.V. 100.000

New Holland (Canada) Credit Company Ltd. Calgary Canada 1,000 CAD 84.56 New Holland (Canada) Credit Holding Ltd. 51.000

New Holland Canada Ltd. 49.000

New Holland (Canada) Credit Holding Ltd. Toronto Canada 1 CAD 84.56 CNH Global N.V. 100.000

New Holland Canada Ltd. Winnipeg Canada 10,403 CAD 84.56 CNH Global N.V. 100.000

New Holland Credit Australia Pty Limited Riverstone Australia 11,507,150 AUD 84.56 CNH Global N.V. 100.000

New Holland Credit Company LLC New Holland United States 250,000 USD 84.56 Fiatallis North America Inc. 100.000

New Holland Danmark A/S Hvidovre-Copenaghen Denmark 12,000,000 DKK 84.56 CNH International S.A. 100.000

New Holland Financial Services A/S Hvidovre-Copenaghen Denmark 500,000 DKK 84.56 CNH Global N.V. 100.000

New Holland Financial Services Ltd Basildon Great Britain 50,000 GBP 84.56 CNH Global N.V. 100.000

New Holland Financial Services S.A. Morigny-Champigny France 38,125 EURO 84.56 CNH Global N.V. 100.000

New Holland Financial Services S.r.l. Modena Italy 10,400 EURO 84.56 CNH Global N.V. 100.000

New Holland Holdings Argentina S.A. Buenos Aires Argentina 6,500,000 ARS 84.56 CNH Global N.V. 100.000

New Holland Holding Limited London Great Britain 86,329,000 GBP 84.56 CNH International S.A. 100.000

New Holland Investments Canada Ltd Winnipeg Canada 156,405,000 CAD 84.56 CNH Global N.V. 100.000

New Holland Latino Americana Ltda Curitiba Brazil 43,918,476 BRL 84.56 Fiatallis Latino Americana Ltda 100.000

New Holland Logistics S.p.A. Modena Italy 1,032,000 EURO 84.56 CNH Global N.V. 100.000

New Holland Ltd Basildon Great Britain 1,000,000 GBP 84.56 CNH Global N.V. 100.000

New Holland Mauritius (Private) Ltd. Port Louis Mauritius 62,683,682 USD 84.56 CNH Global N.V. 100.000

New Holland North America Inc. Wilmington United States 60 USD 84.56 Fiatallis North America Inc. 100.000

New Holland Portugal-Comercio de

Tractores e Maquinas Agricolas Ltda Carnaxide Portugal 498,798 EURO 84.56 CNH International S.A. 99.980

Case New Holland Italia S.p.A. 0.020

New Holland Receivables Corporation Wilmington United States 10 USD 84.56 Fiatallis North America Inc. 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

New Holland Retail Receivables Corporation I Las Vegas United States 1,000 USD 84.56 New Holland Credit Company LLC 100.000

New Holland Retail Receivables Corporation II Las Vegas United States 1,000 USD 84.56 New Holland Retail Receivables Corporation I 100.000

New Holland Tractor Ltd. N.V. Antwerp Belgium 9,631,500 EURO 84.56 New Holland Holding Ltd 100.000

New Holland Tractors (India) Private Ltd New Delhi India 2,827,121,250 INR 84.56 N.H. Mauritius Ltd. 100.000

New Holland U.K. Limited Basildon Great Britain 91,262,275 GBP 84.56 New Holland Holding Ltd 100.000

O & K - Hilfe GmbH Berlin Germany 50,000 DEM 80.52 O & K Orenstein & Koppel AG 100.000

O & K Orenstein & Koppel AG Hattingen Germany 61,355,026 EURO 80.52 CNH International S.A. 95.220

O & K Orenstein & Koppel Ges.m.b.H. Vienna Austria 1,820,000 EURO 80.52 O & K Orenstein & Koppel AG 100.000

O & K Orenstein & Koppel S.A. Saint Ouen L’Aumone France 16,800,000 FRF 80.52 O & K Orenstein & Koppel AG 100.000

O & K Orenstein & Koppel S.A. Leganés Spain 2,181,674 EURO 80.52 O & K Orenstein & Koppel AG 100.000

Olaf Poulsen A/S Ishoj Denmark 6,000,000 DKK 80.52 O & K Orenstein & Koppel AG 100.000

Poclain do Brasil S.A. Soracaba Brazil 301,264 BRL 84.56 Case Corporation 89.364 99.707

Case Brasil & CIA 10.636 0.293

Pryor Foundry Inc. Oklahoma City United States 1,000 USD 84.56 Case Corporation 100.000

Receivables Credit Corporation Calgary Canada 1 CAD 84.56 Case Credit Corporation 100.000

Receivables Credit II Corporation Calgary Canada 1 CAD 84.56 Case Credit Corporation 100.000

Receivables Credit III Corporation Calgary Canada 1 CAD 84.56 Case Credit Corporation 100.000

Servicios Case Mexicana S.A. de C.V. Mexico Mexico 375,000 MXN 84.56 Case Corporation 100.000

Tiede Landtechnik GmbH Werther Germany 50,000 DEM 84.56 Case Germany GmbH 100.000

Uzcaseagroleasing Tashkent Uzbekistan 5,000,000 USD 43.13 Case Credit Holdings Limited 51.000

❚ Commercial Vehicles

Iveco N.V. Amsterdam Netherlands 1,179,440,000 EURO 100.00 IHF-Internazionale Holding Fiat S.A. 55.285

Fiat S.p.A. 44.715

2 H Energy S.A. Fecamp France 2,000,000 EURO 100.00 Iveco Aifo S.p.A. 100.000

Amce-Automotive Manufacturing Co.Ethiopia Addis Ababa Ethiopia 3,000,000 ETB 70.00 Iveco N.V. 70.000

Astra Veicoli Industriali S.p.A. Piacenza Italy 10,400,000 EURO 100.00 Iveco S.p.A. 100.000

Bedrijfswagen Service Nijmegen B.V. Nijmegen Netherlands 100,000 NLG 100.00 Iveco Nederland B.V. 100.000

Brandschutztechnik Gorlitz GmbH Gorlitz Germany 1,000,000 DEM 88.00 Iveco Magirus Brandschutztechnik GmbH 88.000

B.V. Rimij Apeldoorn Netherlands 10,000 NLG 100.00 Iveco Nederland B.V. 100.000

C.A.M.I.V.A. Constructeurs Associés de Materiels S.A. St. Alban-Leysse France 1,870,169 EURO 99.96 Iveco Eurofire (Holding) GmbH 99.963

CBW Grundstukcsverwaltung GmbH

Objekt Dortmund/Saarbrucken KG Ulm Germany 10,000 DEM 100.00 Iveco Investitions GmbH 95.000

Iveco N.V. 5.000

Componentes Mecanicos S.A. Barcelona Spain 37,405,038 EURO 59.39 Iveco Pegaso S.L. 59.387

Effe Grundbesitz GmbH Ulm Germany 20,000,000 DEM 100.00 Iveco Investitions GmbH 90.000

Iveco N.V. 10.000

Equip’Lev S.a.r.l. Antibes France 50,600 EURO 99.94 Lev Société Anonyme 100.000

Euromoteurs S.A. Garchizy France 915,000 EURO 100.00 Iveco France S.A. 100.000

Fiat Capital Corporation New Castle United States 0 USD 100.00 Iveco Trucks of N.A. Inc. 100.000

F.L. Maintenance Société Anonyme Levallois Perret France 40,000 EURO 99.94 Locamion Société Anonyme 100.000

Fraikin Alquiler de Vehiculos S.A. Barcelona Spain 1,803,000 EURO 100.00 Fraikin Société Anonyme 100.000

Fraikin Belgium S.A. Brussels Belgium 2,974,722 EURO 100.00 Fraikin Société Anonyme 100.000

Fraikin Belgium Truck Renting S.A. Brussels Belgium 9,048,114 EURO 99.94 Locamion Société Anonyme 99.997

Fraikin Société Anonyme 0.003

Fraikin Limited Langley Slough Great Britain 2,710,000 GBP 100.00 Fraikin Société Anonyme 100.000

Fraikin Locatime S.A. Levallois Perret France 3,754,080 EURO 100.00 Fraikin Société Anonyme 100.000

Fraikin Locamion Sociéte Anonyme Levallois Perret France 23,071,328 EURO 100.00 Fraikin Société Anonyme 92.929

Locamion Société Anonyme 7.071

Fraikin-Lux S.A. Walferdange Luxembourg 142,167 EURO 100.00 Fraikin Société Anonyme 97.303

Fraikin Belgium Truck Renting S.A. 2.697

Fraikin S.A. (Suisse) Romont Switzerland 1,000,000 CHF 100.00 Fraikin Société Anonyme 100.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 93

93


94

94

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Fraikin Société Anonyme Cannes France 50,329,643 EURO 100.00 Iveco Participations S.A. 100.000

IAV-Industrie-Anlagen-Verpachtung GmbH Ulm Germany 50,000 DEM 100.00 Iveco Investitions GmbH 95.000

Iveco N.V. 5.000

Immobilière Fraikin Société Anonyme Cannes France 4,634,720 EURO 100.00 Fraikin Société Anonyme 100.000

Industrial Vehicles Center Brabant/Antwerpen N.V. St. Pieters Leeuw Belgium 37,380,000 BEF 100.00 S.A. Iveco Belgium /N.V. 99.732

Iveco Nederland B.V. 0.268

Industrial Vehicles Center Hainaut S.A. Charleroi Belgium 600,000 EURO 100.00 S.A. Iveco Belgium /N.V. 95.000

Iveco Nederland B.V. 5.000

Interoto France Location-GEIE Levallois Perret France 0 FRF 99.97 Fraikin Locatime S.A. 25.000

Fraikin Locamion Sociéte Anonyme 25.000

Lev Société Anonyme 25.000

Locamion Société Anonyme 25.000

IVC Nutzfahrzeuge A.G. Hendschiken Switzerland 3,500,000 CHF 100.00 Iveco Schweiz AG 100.000

IVC-Salzburg Nutzfahrzeughandel GmbH Eugendorf Austria 36,336 EURO 100.00 Iveco Austria GmbH 100.000

IVC Vehicules Industriels S.A. Morges Switzerland 1,200,000 CHF 100.00 Iveco Schweiz AG 100.000

IVC-Wien Nutzfahrzeughandel GmbH Vienna Austria 36,336 EURO 100.00 Iveco Austria GmbH 100.000

Iveco Aifo S.p.A. Milan Italy 5,200,000 EURO 100.00 Iveco S.p.A. 100.000

Iveco Argentina S.A. Cordoba Argentina 26,700,000 ARS 100.00 Iveco S.p.A. 99.999

Iveco N.V. 0.001

Iveco Austria GmbH Vienna Austria 6,177,191 EURO 100.00 Iveco N.V. 100.000

Iveco Danmark A/S Kastrup Denmark 501,000 DKK 100.00 Iveco N.V. 100.000

Iveco Eurofire (Holding) GmbH Weisweil Germany 60,194,300 DEM 100.00 Iveco Magirus AG 90.032

Iveco S.p.A. 9.968

Iveco Fiat Brasil Ltda Sete Lagoas Brazil 110,100,000 BRL 90.00 Fiat Automoveis S.A. - FIASA 50.000

Iveco S.p.A. 47.800

Iveco Latin America Ltda 2.200

Iveco Finance Limited Watford Great Britain 100 GBP 100.00 Iveco (UK) Ltd 100.000

Iveco Finance Luxembourg S.A. Luxembourg Luxembourg 12,252,066 EURO 100.00 Iveco N.V. 100.000

Iveco Finland OY Espoo Finlandia 1,000,000 FIM 100.00 Iveco N.V. 100.000

Iveco Ford Truck Ltd Watford Great Britain 117,000,000 GBP 84.82 Iveco (UK) Ltd 84.821 52.000

Iveco Ford Truck Pension Trustee Ltd Watford Great Britain 2 GBP 92.41 Iveco Ford Truck Ltd 50.000

Iveco (UK) Ltd 50.000

Iveco France S.A. Trappes France 93,800,000 EURO 100.00 Iveco N.V. 51.220

Iveco S.p.A. 48.780

Iveco Investitions GmbH Ulm Germany 5,000,000 DEM 100.00 Iveco Magirus AG 99.020

Iveco N.V. 0.980

Iveco Latin America Ltda São Paulo Brazil 266,000,000 BRL 100.00 Iveco S.p.A. 99.999

Iveco N.V. 0.001

Iveco LKW-Zentrum Sachsen GmbH Dresda Germany 2,000,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco Magirus AG Ulm Germany 492,000,000 DEM 100.00 Iveco N.V. 51.341

Iveco S.p.A. 48.659

Iveco Magirus Brandschutztechnik GmbH Ulm Germany 12,700,000 DEM 100.00 Iveco Eurofire (Holding) GmbH 99.998

Iveco N.V. 0.002

Iveco Mezzi Speciali S.p.A. Brescia Italy 3,120,000 EURO 100.00 Iveco Eurofire (Holding) GmbH 100.000

Iveco Motorenforschung AG Arbon Switzerland 4,600,000 CHF 100.00 Iveco S.p.A. 60.000

Iveco France S.A. 40.000

Iveco Nederland B.V. Amersfoort Netherlands 10,000,000 NLG 100.00 Iveco N.V. 100.000

Iveco Nordbayern Nutzfahrzeuge GmbH Nuremberg Germany 1,450,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco Nord Nutzfahrzeuge GmbH Hamburg Germany 1,600,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco Norge A.S. Voyenenga Norway 500,000 NOK 100.00 Iveco N.V. 100.000

Iveco Nutzfahrzeuge GmbH Berlin-Brandeburg Berlin Germany 2,150,000 DEM 100.00 Iveco Magirus AG 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Iveco Nutzfahrzeuge GmbH Hannover Braunschweig Hannover Germany 1,550,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco Nutzfahrzeuge Nord-West GmbH Dortmund-Wambel Germany 2,650,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco Otomotiv Ticaret A.S. Nisantasi-Istanbul Turkey 1,957,763,000,000 TRL 99.99 Iveco S.p.A. 99.993

Iveco Participations S.A. Trappes France 250,000,000 EURO 100.00 Iveco S.p.A. 80.000

Iveco N.V. 20.000

Iveco Pegaso S.L. Madrid Spain 105,213,628 EURO 100.00 Iveco N.V. 100.000

Iveco Plan S.A. de Ahorro para fines determinados Buenos Aires Argentina 153,000 ARS 100.00 Iveco Argentina S.A. 99.600

Iveco N.V. 0.400

Iveco Poland Ltd. Warsaw Poland 13,866,350 PLN 100.00 Iveco N.V. 100.000

Iveco Portugal-Comercio de Veiculos Industriais Ltda Vila Franca de Xira Portugal 15,961,533 EURO 100.00 Iveco N.V. 99.999

Iveco S.p.A. 0.001

Iveco Rhein-Ruhr Nutzfahrzeuge GmbH Dusseldorf Germany 1,500,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco Rhein Sieg Nutzfahrzeuge GmbH Cologne Germany 1,750,000 DEM 100.00 Iveco Magirus AG 100.000

Iveco (Schweiz) AG Kloten-Zurich Switzerland 9,000,000 CHF 100.00 Iveco N.V. 100.000

Iveco South Africa (Pty) Ltd. Wadewille South Africa 15,000,750 ZAR 100.00 Iveco N.V. 100.000

Iveco S.p.A. Turin Italy 322,400,000 EURO 100.00 Iveco N.V. 100.000

Iveco Sud-West Nutzfahrzeuge GmbH Mannheim-Neckarau Germany 1,533,900 EURO 100.00 Iveco Magirus AG 100.000

Iveco Sweden A.B. Arlov Sweden 600,000 SEK 100.00 Iveco N.V. 100.000

Iveco Trucks Australia Limited Dandenong Australia 47,492,260 AUD 100.00 Iveco N.V. 100.000

Iveco Trucks of N.A. Inc. Wilmington United States 1 USD 100.00 Iveco N.V. 100.000

Iveco (UK) Ltd Watford Great Britain 47,000,000 GBP 100.00 Iveco N.V. 67.723

Iveco S.p.A. 32.277

Iveco Venezuela C.A. La Victoria Venezuela 2,495,691,000 VEB 100.00 Iveco N.V. 100.000

Lev Société Anonyme Levallois Perret France 9,165,168 EURO 99.94 Locamion Société Anonyme 100.000

Locamion Société Anonyme Levallois Perret France 10,900,064 EURO 99.94 Fraikin Société Anonyme 99.940

Locapel S.a.r.l. Antibes France 75,900 EURO 99.94 Lev Société Anonyme 100.000

Lohr-Magirus Feuerwehrtechnik GmbH Kainbach Austria 1,271,775 EURO 95.00 Iveco Magirus Brandschutztechnik GmbH 95.000

Lyon Vehicules Industriels S.A.S. Saint Priest France 915,000 EURO 100.00 Iveco France S.A. 99.999

Iveco N.V. 0.001

Mediterranea de Camiones S.L. Sedavi Spain 48,080 EURO 100.00 Iveco Pegaso S.L. 100.000

Officine Brennero S.p.A. Trento Italy 3,120,000 EURO 100.00 Iveco N.V. 100.000

Rhein-Main Nutzfahrzeuge GmbH

Reichold, Franz Kahl & Partners Frankfurt Germany 1,800,000 DEM 65.00 Iveco Magirus AG 65.000

S.A. Iveco Belgium /N.V. Zellik Belgium 6,000,000 EURO 100.00 Iveco N.V. 99.950

Iveco S.p.A. 0.050

S.C.I. La Mediterranéenne Vitrolles France 248,000 EURO 100.00 Société de Diffusion de Vehicules Industriels-SDVI S.A. 50.000

Iveco France S.A. 50.000

Seddon Atkinson Spares & Service Limited Oldham Great Britain 20,000 GBP 100.00 Seddon Atkinson Vehicles Ltd 100.000

Seddon Atkinson Vehicles Ltd Oldham Great Britain 41,700,000 GBP 100.00 Iveco (UK) Ltd 100.000

Seltra Société Anonyme Bezons France 2,598,864 EURO 100.00 Fraikin Société Anonyme 100.000

Service Lorrain Vehicules Industriels - S.L.V.I. S.A.S. Ludres France 699,200 EURO 100.00 Iveco France S.A. 99.500

Iveco N.V. 0.500

Sicca S.p.A. Modena Italy 5,300,000 EURO 100.00 Iveco S.p.A. 100.000

S.I.M.I.S.-Société Industrielle pour le

Materiels d’Incendie et de Securité S.A. Saint-Alban-Leysse France 40,016 EURO 97.96 C.A.M.I.V.A. Constructeurs Associes de Materiels S.A. 98.000

Société de Diffusion de Vehicules Industriels-SDVI S.A. Trappes France 7,022,400 EURO 100.00 Iveco France S.A. 100.000

Société Civile Immobilière Cles Amiens France 33,600 EURO 100.00 Immobilière Fraikin Société Anonyme 99.905

Fraikin Société Anonyme 0.095

Société Civile Immobilière des Cars Blues Levallois Perret France 90,000 EURO 99.94 Locamion Société Anonyme 99.833

Immobilière Fraikin Société Anonyme 0.167

Société Civile Immobilière "La Vitrollaise" Levallois Perret France 640 EURO 100.00 Immobilière Fraikin Société Anonyme 97.500

Fraikin Société Anonyme 2.500

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 95

95


96

96

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Société Civile Immobilière "Les Boussenot" Levallois Perret France 36,864 EURO 99.94 Locamion Société Anonyme 99.957

Immobilière Fraikin Société Anonyme 0.043

Société de la Seoune S.A. Trappes France 45,600 EURO 100.00 Iveco France S.A. 100.000

Sodima S.A. Haunconcourt France 305,600 EURO 100.00 Iveco France S.A. 100.000

Stevi S.A. S.Priest en Jarez France 503,250 EURO 100.00 Iveco France S.A. 100.000

Transolver Finance Establecimiento

Financiero de Credito S.A. Madrid Spain 9,315,500 EURO 50.00 Iveco Finance Luxembourg S.A. 50.000

Transolver Finance GmbH Ulm Germany 35,000,000 EURO 100.00 Iveco Magirus AG 100.000

Transolver Finance S.A. Trappes France 15,244,900 EURO 100.00 Iveco Finance Luxembourg S.A. 100.000

Transolver Finance S.p.A. Turin Italy 30,000,000 EURO 100.00 Iveco S.p.A. 100.000

Transolver Lease GmbH Ulm Germany 775,000 EURO 100.00 Iveco Magirus AG 100.000

Transolver Operational Services Limited Watford Great Britain 1,400,000 GBP 100.00 Iveco (UK) Ltd 100.000

Transolver Service S.A. Madrid Spain 610,000 EURO 100.00 Iveco Pegaso S.L. 100.000

Transolver Services S.A. Trappes France 38,000 EURO 100.00 Fiat France S.A. 90.000

Iveco France S.A. 10.000

Transolver Service S.p.A. Turin Italy 1,989,000 EURO 100.00 Iveco S.p.A. 100.000

Transolver Services GmbH Unterschliessheim Germany 750,000 EURO 100.00 Iveco Magirus AG 100.000

Trucksure Services Ltd Watford Great Britain 900,000 GBP 100.00 Iveco (UK) Ltd 100.000

Utilitaries & Vehicules Industriels

Franciliens-UVIF SAS La Garenne France 1,067,500 EURO 100.00 Iveco France S.A. 99.999

Iveco N.V. 0.001

Vehicules Industriels Phoceens-V.I.P. S.A.S. Vitrolles France 927,200 EURO 100.00 Iveco France S.A. 99.999

❚ Metallurgical Products

Iveco N.V. 0.001

Teksid S.p.A. Turin Italy 229,200,000 EURO 66.50 Fiat S.p.A. 66.500

Accurcast Limited Saint John-N.B. Canada 39,684,600 CAD 33.92 Meridian Technologies Inc. 100.000

Exportadora Teksid S.A. de C.V. São Pedro Mexico 592,474,411 MXN 49.88 Teksid de Mexico S.A. de C.V. 100.000

Fonderies Aluminium Cleon S.A. Cleon France 55,411,425 EURO 66.50 Teksid S.p.A. 100.000

Fonderies du Poitou S.A. Ingrandes sur Vienne France 31,793,550 EURO 66.50 Teksid S.p.A. 100.000

Funfrap-Fundicao Portuguesa S.A. Cacia Portugal 13,697,550 EURO 55.59 Teksid S.p.A. 83.600

Jutras Die Casting Limited Saint John-N.B. Canada 19,838,141 CAD 33.92 Meridian Technologies Inc. 100.000

Magnesium Products of America Inc. Eaton Rapids United States 30,174,038 USD 33.92 Meridian Technologies Inc. 100.000

Magnesium Products of Italy-M.P.I.-S.p.A. Verres Italy 14,500,000 EURO 33.92 Meridian Magnesium N.V. 100.000

Meridian Magnesium LLC Wilmington United States 4,962 USD 33.92 Ontario Inc. 90.000

Meridian Technologies Inc. 10.000

Meridian Magnesium N.V. Amstelveen Netherlands 90,800,000 EURO 33.92 Meridian Technologies Inc. 100.000

Meridian Technologies Inc. Saint John-N.B. Canada 183,848,000 CAD 33.92 Teksid S.p.A. 31.450

Teksid Acquisition Inc. 19.550

Metallurgique du Temple S.A. St. Michel Maurienne France 6,012,240 EURO 66.50 Teksid Investment N.V. 100.000

Nuova Teksid S.p.A. Turin Italy 100,000 EURO 66.50 Teksid S.p.A. 100.000

Ontario Inc. Saint John-N.B. Canada 6,210 CAD 33.92 Meridian Technologies Inc. 100.000

Société Bretonne de Fonderie et de Mecanique S.A. Caudan Cedex France 10,549,859 EURO 66.50 Teksid S.p.A. 100.000

Teksid Acquisition Inc. Toronto Canada 72,300,000 CAD 66.50 Teksid Investment N.V. 100.000

Teksid Aluminio de Mexico S.A. de C.V. São Pedro Mexico 116,730,897 MXN 49.88 Teksid de Mexico S.A. de C.V. 100.000

Teksid Aluminum Foundry Wilmington United States 170 USD 49.88 Teksid S.p.A. 75.000

Teksid de Argentina S.A. Buenos Aires Argentina 5,512,000 ARS 66.50 Teksid Investment N.V. 100.000

Teksid de Mexico S.A. de C.V. São Pedro Mexico 179,854,507 MXN 49.88 Teksid Investment N.V. 75.000

Teksid Deutschland GmbH Frankfurt Germany 25,600 EURO 66.50 Teksid S.p.A. 100.000

Teksid do Brasil Ltda Betim Brazil 173,439,025 BRL 66.50 Teksid S.p.A. 100.000

Teksid France S.A. Suresnes France 82,500 EURO 66.50 Teksid S.p.A. 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Teksid Hierro de Mexico S.A. de C.V. São Pedro Mexico 1,027,573,286 MXN 49.88 Teksid S.p.A. 46.400

Nuova Teksid S.p.A. 28.600

Teksid Inc. Wilmington United States 100,000 USD 49.88 Teksid S.p.A. 75.000

Teksid Investment N.V. Amstelveen Netherlands 180,000,000 EURO 66.50 Teksid S.p.A. 100.000

Teksid Poland S.A. Bielsko-Biala Poland 158,028,700 PLN 65.50 Teksid S.p.A. 98.492

❚ Components

Autocomponents Suspension S.r.l. a Socio Unico Melfi Italy 3,640,000 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Automotive Lighting Brotterode GmbH Meiningen Germany 7,270,000 EURO 74.89 Automotive Lighting Reutlingen GmbH 100.000

Automotive Lighting Italia S.p.A. Venaria Reale Italy 1,800,000 EURO 74.89 Automotive Lighting Holding GmbH 100.000

Automotive Lighting Polska Sp. z o.o. Sosnowiec Poland 43,000,000 PLN 74.89 Automotive Lighting Holding GmbH 100.000

Automotive Lighting Corporation Farmington Hills United States 1,000 USD 74.89 Automotive Lighting Holding GmbH 100.000

Automotive Lighting Holding GmbH Innsbruck Austria 11,952,191 EURO 74.89 Magneti Marelli Holding S.p.A. 74.900

Automotive Lighting Reutlingen GmbH Reutlingen Germany 1,330,000 EURO 74.89 Automotive Lighting Holding GmbH 100.000

Automotive Lighting S.R.O. Jhlava Czech Republic 100,000 CZK 74.89 Automotive Lighting Holding GmbH 100.000

Automotive Lighting UK Limited Cannock Great Britain 2,432,348 GBP 74.89 Automotive Lighting Holding GmbH 100.000

BMM Partes Electricas Automotrices S.A. de C.V. Chihuahua Mexico 3,000 MXN 74.89 Automotive Lighting Corporation 100.000

Bosch Rjiasan O.O.O. Rjiasan Russia 23,636,471 RUR 57.82 Automotive Lighting Holding GmbH 77.205

C.e.a. Axo Scintex S.A. Villemoisson France 6,505,600 FRF 99.98 Seima Italiana S.p.A. 99.998

C.S.A.T. S.r.l. - Costruzione Stampi Alta Tecnologia Tolmezzo Italy 517,000 EURO 99.98 Seima Italiana S.p.A. 60.000

Yorka SA 35.000

C.e.a. Axo Scintex S.A. 5.000

Fiat CIEI S.p.A. Milan Italy 70,825,081 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Iluminacao Automotiva Ltda Contagem Brazil 27,860,418 BRL 74.89 Automotive Lighting Holding GmbH 100.000

Industrias Magneti Marelli Mexico S.A. de C.V. Tepotzotlan Mexico 50,000 MXN 100.00 Magneti Marelli Mexico S.A. 99.998

Servicios Administrativos Corporativos Ipasa S.A. 0.002

Kadron S/A Amparo Brazil 20,000,000 BRL 99.61 Magneti Marelli Atividades Comerciais S.A. 100.000

Magneti Marelli After Market France SAS Nanterre France 40,000 EURO 99.87 Magneti Marelli France S.A. 100.000

Magneti Marelli After Market Limited Cannock Great Britain 1 GBP 100.00 Magneti Marelli After Market S.p.A. 100.000

Magneti Marelli After Market Poland Sp. z o.o. Sosnowiec Poland 50,000 PLN 100.00 Magneti Marelli After Market S.p.A. 100.000

Magneti Marelli After Market SL Madrid Spain 5,255,102 EURO 100.00 Magneti Marelli After Market S.p.A. 100.000 100.000

Magneti Marelli After Market S.p.A. Turin Italy 15,349,500 EURO 100.00 Fiat Netherlands Holding N.V. 99.999

Magneti Marelli Argentina S.A. Buenos Aires Argentina 2,000,000 ARS 99.89 Magneti Marelli France S.A. 84.563

Magneti Marelli Holding S.p.A. 15.437

Magneti Marelli Atividades Comerciais S.A. São Paulo Brazil 8,744,843 BRL 99.61 Magneti Marelli Holding S.p.A. 99.620

Magneti Marelli Cofap Auto Pecas S.A. São Paulo Brazil 1,797,289 BRL 99.62 Magneti Marelli After Market S.p.A. 99.620

Magneti Marelli Cofap Camisas S.A. São Paulo Brazil 30,953,590 BRL 99.61 Magneti Marelli Holding S.p.A. 99.620

Magneti Marelli Cofap Companhia

Fabricadora de Pecas Santo André Brazil 193,733,857 BRL 99.61 Magneti Marelli Holding S.p.A. 99.620

Magneti Marelli Cofap Sinterizados S.A. Santo André Brazil 14,864,781 BRL 99.61 Magneti Marelli Holding S.p.A. 99.620

Magneti Marelli Components B.V. Amsterdam Netherlands 53,600,000 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Magneti Marelli Conjuntos de Escape S.A. Buenos Aires Argentina 12,000 ARS 99.98 Magneti Marelli Sistemi di Scarico S.p.A. 99.000

Magneti Marelli Argentina S.A. 1.000

Magneti Marelli Controle Motor Ltda. São Paulo Brazil 68,901,576 BRL 100.00 Magneti Marelli Powertrain S.p.A. 99.995

Fiat do Brasil S.A. 0.005

Magneti Marelli Deutschland GmbH Heilbronn Germany 1,050,000 EURO 100.00 Magneti Marelli After Market S.p.A. 100.000

Magneti Marelli do Brasil Industria e Comercio Ltda Hortolandia Brazil 8,123,584 BRL 99.99 Magneti Marelli Holding S.p.A. 99.995

Fiat do Brasil S.A. 0.005

Magneti Marelli Eletronica Ltda São Paulo Brazil 44,629,893 BRL 100.00 Magneti Marelli Sistemi Elettronici S.p.A. 99.995

Fiat do Brasil S.A. 0.005

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 97

97


98

98

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Magneti Marelli Electronica SL Madrid Spain 18,388,581 EURO 100.00 Magneti Marelli Sistemi Elettronici S.p.A. 100.000

Magneti Marelli Elektronische Systeme GmbH Heilbronn Germany 100,000 EURO 100.00 Magneti Marelli Sistemi Elettronici S.p.A. 100.000

Magneti Marelli Escapamentos Ltda São Paulo Brazil 40,736,384 BRL 99.99 Magneti Marelli Holding S.p.A. 99.995

Fiat do Brasil S.A. 0.005

Magneti Marelli Exhaust Systems Polska Sp. z o.o. Sosnowiec Poland 15,000,000 PLN 99.99 Magneti Marelli Sistemi di Scarico S.p.A. 100.000

Magneti Marelli France S.A. Nanterre France 67,380,000 EURO 99.87 Magneti Marelli Holding S.p.A. 99.884

Ufima S.A. 0.003

Magneti Marelli Hellas S.A.

(Automotive Systems Trading) Athens Greece 200,000,000 GRD 100.00 Magneti Marelli After Market S.p.A. 100.000

Magneti Marelli Holding S.p.A. Turin Italy 152,595,000 EURO 99.99 Fiat Netherlands Holding N.V. 99.985 100,000

Magneti Marelli Iberica S.A. Madrid Spain 30,314,440 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Magneti Marelli Mexico S.A. Tepotzotlan Mexico 23,611,680 MXN 100.00 Magneti Marelli Sistemi Elettronici S.p.A. 100.000

Magneti Marelli Motopropulsion France SAS Nanterre France 4,440,000 EURO 99.87 Magneti Marelli France S.A. 100.000

Magneti Marelli North America Inc. Wilmington United States 3,498,619 USD 99.61 Magneti Marelli Cofap Comp.Fabr.de Pecas 100.000

Magneti Marelli Otomotiv Sistemleri

Sanayi ve Ticaret A.S. Esentepe-Istanbul Turkey 9,000,000,000 TRL 97.99 Magneti Marelli Holding S.p.A. 98.000

Magneti Marelli Partecipazioni Industriali S.p.A. Turin Italy 61,500,000 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Magneti Marelli Poland S.A. Sosnowiec Poland 10,567,800 PLN 99.99 Magneti Marelli Holding S.p.A. 100.000

Magneti Marelli Powertrain GmbH Heilbronn Germany 100,000 EURO 100.00 Magneti Marelli Powertrain S.p.A. 100.000

Magneti Marelli Powertrain (Shanghai) Co. Ltd. Shanghai People’s Rep. of China 10,000,000 USD 100.00 Magneti Marelli Powertrain S.p.A. 100.000

Magneti Marelli Powertrain S.p.A. Turin Italy 79,397,400 EURO 100.00 Fiat Netherlands Holding N.V. 99.999 100,000

Magneti Marelli Powertrain U.S.A. Inc. Sanford United States 25,000,000 USD 100.00 Magneti Marelli Powertrain S.p.A. 100.000

Magneti Marelli Repuestos S.A. Buenos Aires Argentina 12,000 ARS 100.00 Magneti Marelli After Market S.p.A. 99.000

Magneti Marelli Argentina S.A. 1.000

Magneti Marelli Sistemi di Scarico S.p.A. Milan Italy 5,000,000 EURO 99.99 Magneti Marelli Components B.V. 100.000

Magneti Marelli Sistemi Elettronici S.p.A. Turin Italy 42,798,600 EURO 100.00 Fiat Netherlands Holding N.V. 99.999 100,000

Magneti Marelli South Africa (Proprietary) Limited Johannesburg South Africa 1,950,000 ZAR 99.99 Magneti Marelli Components B.V. 100.000

Magneti Marelli (Suisse) S.A. in liq. Lausanne Switzerland 500,000 CHF 99.99 Magneti Marelli Components B.V. 100.000

Magneti Marelli Suspension

Systems Poland Sp. z o.o. Sosnowiec Poland 50,000 PLN 99.99 Magneti Marelli Holding S.p.A. 100.000

Magneti Marelli Svenska A/B Goteborg Sweden 100,000 SEK 99.99 Magneti Marelli Components B.V. 100.000

Magneti Marelli Systemes Electroniques France SAS Nanterre France 40,000 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Magneti Marelli Tubos de Escape SL Madrid Spain 10,154,255 EURO 99.99 Magneti Marelli Sistemi di Scarico S.p.A. 100.000

Magneti Marelli U.K. Limited Cannock Great Britain 20,000,000 GBP 99.99 Magneti Marelli Components B.V. 100.000

Malaysian German Automotive Equipment SDN. BHD Penang Malaysia 8,000,000 MYR 59.91 Automotive Lighting Holding GmbH 80.000

R.C.I. Ricambi Centro Italia S.r.l. a Socio Unico Rome Italy 49,400 EURO 100.00 Magneti Marelli After Market S.p.A. 100.000

Seima Italiana Deutschland GmbH Grasbrunn-Neukerferloh Germany 50,000 DEM 98.98 Seima Italiana S.p.A. 99.000

Seima Italiana S.p.A. Tolmezzo Italy 10,752,632 EURO 99.98 Magneti Marelli Holding S.p.A. 90.000 89.995

Yorka SA 10.000 10.005

Servicios Administrativos Corporativos Ipasa S.A. Col. Chapultepec Mexico 1,000 MXN 100.00 Magneti Marelli Mexico S.A. 99.990

Industrias Magneti Marelli Mexico S.A. de C.V. 0.010

Sistemi Sospensioni S.p.A. Milan Italy 72,900,000 EURO 99.99 Magneti Marelli Holding S.p.A. 100.000

Sistemi Sospensioni Sud S.p.A. Turin Italy 1,125,000 EURO 99.99 Sistemi Sospensioni S.p.A. 100.000

Tutela Lubrificantes S.A. Contagem Brazil 941,028 BRL 99.99 Magneti Marelli Holding S.p.A. 100.000

Ufima S.A. Nanterre France 38,137 EURO 99.94 Magneti Marelli Holding S.p.A. 35.541

Sicind S.p.A. 34.980

Magneti Marelli Components B.V. 29.426

Yorka SA Barcelona Spain 1,523,077,000 ESP 99.97 Seima Italiana S.p.A. 99.990

❚ Production Systems

Comau B.V. Amstelveen Netherlands 150,000 EURO 100.00 Fiat S.p.A. 100.000

Autodie International, Inc. Bloomfield Hills United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Comau Argentina S.A. Buenos Aires Argentina 2,001,120 ARS 100.00 Comau S.p.A. 99.950

Fiat Argentina S.A. 0.050

Comau Belgium N.V. Zedelgem Belgium 250,000 EURO 100.00 Comau S.p.A. 99.900

Comau Service Sud S.p.A. 0.100

Comau Deutschland GmbH Leonberg Germany 1,330,000 EURO 100.00 Comau S.p.A. 100.000

Comau do Brasil Ltda. Nova Lima Brazil 3,100,001 BRL 100.00 Comau S.p.A. 99.960

Fiat do Brasil S.A. 0.040

Comau Estil Unl. Luton Great Britain 21,292,000 GBP 100.00 Comau S.p.A. 100.000

Comau France S.A. Voisins le Bretonneux France 750,000 EURO 99.99 Comau S.p.A. 99.987

Comau India Private Limited Pune India 58,435,020 INR 100.00 Comau S.p.A. 99.990

Comau Service V.D.S. S.p.A. 0.010

Comau Management Inc. Southfield United States 100 USD 100.00 Comau B.V. 100.000

Comau Pico Holdings Corporation Wilmington United States 100 USD 100.00 Comau B.V. 98.000

Comau S.p.A. 2.000

Comau Poland Sp. z o.o. Bielsko-Biala Poland 2,100,000 PLN 100.00 Comau S.p.A. 100.000

Comau Quad Precision (Pty) Ltd. Eppindust South Africa 1,000 ZAR 83.70 Comau South Africa (Pty) Ltd. 83.700

Comau Romania S.R.L. Bihor Romenia 3,249,800,000 ROL 100.00 Comau S.p.A. 100.000

Comau SA Body Systems (Pty) Ltd. Uitenhage South Africa 300 ZAR 100.00 Comau South Africa (Pty) Ltd. 100.000

Comau SA Press Tools and Parts (Pty) Ltd. Uitenhage South Africa 100 ZAR 100.00 Comau South Africa (Pty) Ltd. 100.000

Comau SA Properties (Pty) Ltd. Uitenhage South Africa 100 ZAR 100.00 Comau South Africa (Pty) Ltd. 100.000

Comau Sciaky S.A. Paris France 40,000 EURO 99.75 Comau France S.A. 99.760

Comau Service Sud S.p.A. Grugliasco Italy 250,000 EURO 100.00 Comau S.p.A. 100.000

Comau Service Systems S.L. Madrid Spain 250,000 EURO 100.00 Comau S.p.A. 100.000

Comau Service U.K. Ltd Luton Great Britain 50,000 GBP 100.00 Comau S.p.A. 100.000

Comau Service V.D.S. S.p.A. Grugliasco Italy 250,000 EURO 100.00 Comau S.p.A. 100.000

Comau South Africa (Pty) Ltd. Uitenhage South Africa 1,001,000 ZAR 100.00 Comau S.p.A. 100.000

Comau S.p.A. Grugliasco Italy 100,000,000 EURO 100.00 Comau B.V. 100.000

Deltasign Ltd. in liq. Luton Great Britain 100 GBP 100.00 Comau Estil Unl. 100.000

Discserve Ltd. in liq. Luton Great Britain 100 GBP 100.00 Comau Estil Unl. 100.000

Eagle Test and Assembly Co. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Estil Systems Luton Ltd. in liq. Luton Great Britain 10,000 GBP 100.00 Comau Estil Unl. 100.000

Estil Shrewsbury Ltd. in liq. Shropshire Great Britain 100 GBP 100.00 Comau Estil Unl. 100.000

Famis Technology Ltd. in liq. Luton Great Britain 69,051 GBP 100.00 Discserve Ltd. in liq. 98.999

Comau Estil Unl. 1.001

Geico do Brasil Ltda Contagem Brazil 202,950 BRL 48.78 Geico S.p.A. 95.565

Comau do Brasil Ltda. 0.044

Geico Endustriyel Taahhut A.S. Istanbul Turkey 100,000,000,000 TRL 50.98 Geico S.p.A. 99.959

Geico S.p.A. Cinisello Balsamo Italy 3,627,000 EURO 51.00 Comau S.p.A. 51.000

Germann-Intec GmbH & Co. KG Heilbronn Germany 1,478,614 EURO 100.00 Comau Deutschland GmbH 100.000

Italtech S.p.A. Brescia Italy 309,600 EURO 100.00 Comau S.p.A. 100.000

Mecaner S.A. Urduliz Spain 4,264,095 EURO 86.26 Comau S.p.A. 86.258

Novi Industries, Inc. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Numerical Control Center, Inc. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Pico East, Inc. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Pico Estil Control Systems Ltd. in liq. Rainham Great Britain 100 GBP 100.00 Comau Estil Unl. 100.000

Pico Estil Manufacturing Ltd. in liq. Luton Great Britain 5,000 GBP 100.00 Comau Estil Unl. 100.000

Pico Estil Nottingham Ltd. in liq. Arnold Great Britain 100,000 GBP 100.00 Comau Estil Unl. 100.000

Pico Europe, Inc. Southfield United States 1,000 USD 100.00 Comau B.V. 100.000

Pico Expatriate, Inc. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Pico Iaisa S.de R.L. de C.V. Tepotzotlan Mexico 3,000 MXN 100.00 Progressive Mexico S.de R.L. de C.V. 99.967

Comau B.V. 0.033

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 99

99


100

100

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Pico Pitex S.de R.L. C.V. Tepotzotlan Mexico 3,000 MXN 100.00 Progressive Mexico S.de R.L. de C.V. 99.967

Comau B.V. 0.033

Pico Resources, Inc. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Precision.Com Corp. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Progressive Industries Co. of Canada Ltd. Windsor Canada 100 CAD 100.00 Comau B.V. 100.000

Progressive Mexico S.de R.L. de C.V. Tepotzotlan Mexico 3,000 MXN 100.00 Comau B.V. 99.967

Comau S.p.A. 0.033

Progressive Tool Argentina S.de R.L. Cordoba Argentina 12,000 ARS 100.00 Comau B.V. 99.000

Comau S.p.A. 1.000

Progressive Tool do Brasil Ltda. São Paulo Brazil 300,000 BRL 100.00 Comau B.V. 100.000

Progressive Tool & Industries Company Southfield United States 21,455 USD 100.00 Comau Pico Holdings Corporation 100.000

Renault Automation Comau S.A. Meudon la Foret Cedex France 29,173,600 EURO 51.00 Comau S.p.A. 51.000

Trebol Tepotzotlan S.de R.L. de C.V. Tepotzotlan Mexico 3,000 MXN 100.00 Progressive Mexico S.de R.L. de C.V. 99.967

Comau B.V. 0.033

Wisne Automation & Engineering Co. Novi United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

Wisne Design Mexico S.de R.L. de C.V. Tepotzotlan Mexico 3,000 MXN 100.00 Progressive Mexico S.de R.L. de C.V. 99.967

Comau B.V. 0.033

Wisne Technologies, Inc. Southfield United States 1,000 USD 100.00 Comau Pico Holdings Corporation 100.000

❚ Aviation

FiatAvio S.p.A. Turin Italy 148,200,000 EURO 100.00 Fiat S.p.A. 100.000

ELV S.p.A. Rome Italy 4,680,000 EURO 70.00 FiatAvio S.p.A. 70.000

Fiat Avio Inc. Englewood Cliffs United States 5,000,000 USD 99.85 FiatAvio S.p.A. 99.000

Fiatallis North America Inc. 1.000

Fiat Avio Polska Sp. z o.o. Bielsko-Biala Poland 4,000,000 PLN 100.00 FiatAvio S.p.A. 100.000

Regulus S.A. Kourou French Guiana 640,000 EURO 60.00 FiatAvio S.p.A. 60.000

Società di Servizi Comprensoriali e di

Sviluppo Immobiliare-SE.CO.SV.IM. S.r.l. Rome Italy 53,929,691 EURO 100.00 FiatAvio S.p.A. 99.998

Società Italiana Commerciale Industriale-SICI S.p.A. 0.002

Società Elettronica per l’Automazione S.p.A. Turin Italy 10,672,944 EURO 100.00 FiatAvio S.p.A. 100.000

❚ Publishing and Communications

Itedi-Italiana Edizioni S.p.A. Turin Italy 5,980,000 EURO 100.00 Fiat S.p.A. 100.000

Editrice La Stampa S.p.A. Turin Italy 4,160,000 EURO 100.00 Itedi-Italiana Edizioni S.p.A. 100.000

Publikompass S.p.A. Milan Italy 3,068,000 EURO 100.00 Itedi-Italiana Edizioni S.p.A. 100.000

❚ Insurance

Toro Assicurazioni S.p.A. Turin Italy 181,841,880 EURO 100.00 Sicind S.p.A. 99.974 100.000

Fiat S.p.A. 0.026 0.000

Altegia S.A. Paris France 16,867,398 EURO 99.48 Le Continent Holding S.A. 99.780

Le Continent Vie S.A. 0.220

Augusta Assicurazioni S.p.A. Turin Italy 26,000,000 EURO 100.00 Toro Assicurazioni S.p.A. 100.000

Augusta Vita S.p.A. Turin Italy 39,000,000 EURO 100.00 Augusta Assicurazioni S.p.A. 100.000

Companhia de Seguros Maritimos

e Terrestres Phenix de Porto Alegre Nova Lima Brazil 66,962,839 BRL 90.06 Toro Targa Participacoes S/C Ltda 99.851

Continent Assistance S.A. Paris France 914,694 EURO 99.47 Le Continent IARD S.A. 99.990

Le Continent Vie S.A. 0.002

L’Union Generale du Nord S.A. 0.002

D.A.S. Difesa Automobilistica Sinistri S.p.A. Verona Italy 2,750,000 EURO 50.01 Toro Assicurazioni S.p.A. 50.008

Fiat Ubezpieczenia Majatkowe S.A. Warsaw Poland 43,500,000 PLN 90.20 Toro Targa Assicurazioni S.p.A. 100.000

Fiat Ubezpieczenia Zycie S.A. Warsaw Poland 26,013,700 PLN 90.14 Toro Poland Investments z o.o. 99.942


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Giano Assicurazioni S.p.A. Rome Italy 5,200,000 EURO 47.50 Roma Vita S.p.A. 100.000

Guardian Finances S.A. Rueil-Malmaison France 53,358 EURO 99.48 Le Continent Holding S.A. 99.142

Altegia S.A. 0.286

Guardian Vie S.A. 0.286

Toro Assicurazioni S.p.A. 0.286

Guardian Vie S.A. Rueil-Malmaison France 39,346,454 EURO 99.48 Le Continent Holding S.A. 100.000

Iniziative Sviluppo Immobiliare-Isim S.p.A. Turin Italy 263,900,000 EURO 100.00 Toro Assicurazioni S.p.A. 100.000

Le Continent Holding S.A. Paris France 149,743,011 EURO 99.48 Toro Assicurazioni S.p.A. 51.520

Toro International Holding N.V. 47.960

Le Continent IARD S.A. Paris France 104,819,728 EURO 99.48 Le Continent Holding S.A. 96.466

Altegia S.A. 3.534

Le Continent Vie S.A. Rueil-Malmaison France 12,971,632 EURO 99.48 Le Continent Holding S.A. 99.990

Toro Assicurazioni S.p.A. 0.010

Lloyd Italico Assicurazioni S.p.A. Genoa Italy 132,997,250 EURO 100.00 Toro Assicurazioni S.p.A. 98.000

Augusta Assicurazioni S.p.A. 2.000

Lloyd Italico Vita S.p.A. Genoa Italy 8,000,000 EURO 100.00 Lloyd Italico Assicurazioni S.p.A. 80.000

Toro Assicurazioni S.p.A. 20.000

L’Union Generale du Nord S.A. Lille France 4,523,620 EURO 85.11 Le Continent IARD S.A. 82.809

Le Continent Vie S.A. 0.279

L’Union Generale du Nord S.A. 2.875 0.000

Toro Assicurazioni S.p.A. 0.006

Nuova Tirrena S.p.A. Rome Italy 133,660,125 EURO 92.13 Toro Assicurazioni S.p.A. 92.125

Roma Vita S.p.A. Rome Italy 85,120,000 EURO 47.50 Toro Assicurazioni S.p.A. 47.500

Société Immobiliere Belle-Terre S.A. Geneva Switzerland 50,000 CHF 99.48 Le Continent IARD S.A. 100.000

Toro International Holding N.V. Amsterdam Netherlands 65,250,000 EURO 100.00 Toro Assicurazioni S.p.A. 100.000

Toro Poland Investments z o.o. Warsaw Poland 50,346,000 PLN 90.20 Toro Targa Assicurazioni S.p.A. 100.000

Toro Targa Assicurazioni S.p.A. Turin Italy 73,550,000 EURO 90.20 Toro Assicurazioni S.p.A. 51.000

Targasys S.r.l. a S.U. 49.000

Toro Targa Participacoes S/C Ltda Nova Lima Brazil 87,775,710 BRL 90.20 Toro Targa Assicurazioni S.p.A. 100.000

❚ Services

Business Solutions S.p.A. Turin Italy 101,412,065 EURO 100.00 Fiat S.p.A. 100.000

Alimenta S.p.A. Padua Italy 2,600,000 EURO 100.00 Fiat Engineering S.p.A. 100.000

Borello S.p.A. Turin Italy 5,160,000 EURO 65.95 IPI S.p.A. 100.000

Business Solutions do Brasil Ltda Nova Lima Brazil 11,000 BRL 100.00 Business Solutions S.p.A. 99.973

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale 0.009

Fiat do Brasil S.A. 0.009

Fiat Gesco S.p.A. 0.009

Business Solutions France FiatGroup S.a.s. Paris France 695,600 EURO 100.00 Business Solutions S.p.A. 60.000

Fiat France S.A. 40.000

Business Solutions Iberica Fiat Group SL Madrid Spain 369,327 EURO 100.00 Business Solutions S.p.A. 80.000

Fiat Iberica S.A. 20.000

Business Solutions Polska Sp. z o.o. Bielsko-Biala Poland 3,600,000 PLN 100.00 Business Solutions S.p.A. 99.986

Fiat Polska Sp. z o.o. 0.014

CiaoService S.p.A. Turin Italy 3,790,249 EURO 90.00 eSPIN S.p.A. 100.000

Cleantecno S.r.l. Turin Italy 25,000 EURO 100.00 Ingest Facility S.p.A. 100.000

Cromos Consulenza e Formazione S.r.l. Turin Italy 25,000,000 ITL 77.14 Isvor Knowledge System S.p.A. 80.000

Delivery & Mail S.r.l. Turin Italy 90,000 EURO 100.00 Ingest Facility S.p.A. 99.000

Società Italiana Commerciale Industriale-SICI S.p.A. 1.000

Emmepi S.p.A. Turin Italy 20,312,000 EURO 100.00 Investimenti e Gestioni S.p.A. 100.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 101

101


102

102

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Easy Drive S.r.l. a S.U. Turin Italy 10,400 EURO 100.00 Business Solutions S.p.A. 100.000

eSPIN S.p.A. Turin Italy 6,932,000 EURO 90.00 Business Solutions S.p.A. 90.000

Fast-Buyer S.p.A. Turin Italy 7,000,000 EURO 99.92 Business Solutions S.p.A. 99.916

FiatEngineering do Brasil-Comercio e Industria Ltda Belo Horizonte Brazil 1,000,000 BRL 100.00 Fiat Engineering S.p.A. 78.800

Fiat Engineering France S.A. 21.200

Fiat Engineering France S.A. Paris France 680,000 EURO 99.98 Fiat Engineering S.p.A. 99.984

Fiat Engineering India Private Ltd. New Delhi India 3,500,000 INR 100.00 Fiat Engineering S.p.A. 99.999

Fiat Engineering France S.A. 0.001

FiatEngineering Polska Sp. z o.o. Bielsko-Biala Poland 100,000 PLN 100.00 Fiat Engineering S.p.A. 100.000

Fiat Engineering S.p.A. Turin Italy 10,588,250 EURO 100.00 Investimenti e Gestioni S.p.A. 100.000

Fiat GES.CO. Belgium N.V. Brugge Belgium 62,500 EURO 100.00 Gesco U.K. Limited 99.960

Fiat Gesco S.p.A. 0.040

Fiat Gesco S.p.A. Turin Italy 3,592,339 EURO 100.00 Business Solutions S.p.A. 100.000

Fiat G.S.A.-Gestione Software Applicativi S.r.l. Turin Italy 500,000 EURO 100.00 Business Solutions S.p.A. 100.000

Gesco Active S.p.A. Turin Italy 100,000 EURO 100.00 Fiat Gesco S.p.A. 100.000

Gesco Sud S.p.A. Turin Italy 100,000 EURO 100.00 Fiat Gesco S.p.A. 100.000

Gesco U.K. Limited London Great Britain 750,000 GBP 100.00 Fiat Gesco S.p.A. 75.000

Fiat United Kingdom Limited 25.000

Global Value S.p.A. Turin Italy 1,000,000 EURO 50.00 Fiat G.S.A.-Gestione Software Applicativi S.r.l. 25.000

ITS Information Technology Services S.r.l. 25.000

GSA-ITS do Brasil Ltda. Nova Lima Brazil 2,000 BRL 99.99 Business Solutions do Brasil Ltda 99.900

Sadi Brasil Ltda. 0.100

H.R. Services S.p.A. Turin Italy 1,200,000 EURO 100.00 Business Solutions S.p.A. 100.000

Immobiliare Sises 99 S.r.l. Sestriere Italy 516,500 EURO 100.00 Investimenti e Gestioni S.p.A. 100.000

Impreinvest S.p.A. Turin Italy 516,000 EURO 100.00 Fiat Engineering S.p.A. 100.000

Ingest Facility S.p.A. Turin Italy 500,000 EURO 100.00 Investimenti e Gestioni S.p.A. 100.000

Ingest Segim Polska Sp. z o.o. Bielsko-Biala Poland 500,000 PLN 100.00 Ingest Facility S.p.A. 100.000

Investimenti e Gestioni S.p.A. Turin Italy 302,374,000 EURO 100.00 Business Solutions S.p.A. 100.000

Ipi Intermediazione S.r.l. Turin Italy 4,378,400 EURO 65.95 IPI S.p.A. 99.990

Sicind S.p.A. 0.010

IPI S.p.A. Turin Italy 40,784,134 EURO 65.95 Investimenti e Gestioni S.p.A. 50.850

Toro Assicurazioni S.p.A. 9.338

Fiat Ge.Va. S.p.A. 5.761

IPI S.p.A. 0.000

Isvor Knowledge System S.p.A. Turin Italy 500,000 EURO 96.42 Business Solutions S.p.A. 70.000

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale 30.000

ITS Information Technology Services S.r.l. Turin Italy 1,040,000 EURO 100.00 Business Solutions S.p.A. 100.000

Japigia 2000 S.r.l. Turin Italy 98,000 EURO 95.00 Fiat Engineering S.p.A. 95.000

KeyG Consulting S.p.A. Turin Italy 125,000 EURO 60.00 Fiat Gesco S.p.A. 52.800

Business Solutions S.p.A. 7.200

Koinet S.p.A. Turin Italy 1,500,000 EURO 100.00 Business Solutions S.p.A. 100.000

Learning Systems S.p.A. Milan Italy 104,000 EURO 49.17 Isvor Knowledge System S.p.A. 51.000

Matrix S.r.l. Turin Italy 30,000 EURO 75.21 Isvor Knowledge System S.p.A. 78.000

Modus Informatica e Sistemi S.p.A. Turin Italy 114,125 EURO 54.00 CiaoService S.p.A. 60.000

Sadi Polska-Agencja Celna Sp. z o.o. Bielsko-Biala Poland 500,000 PLN 100.00 Servizi e Attività Doganali per l’Industria S.p.A. 100.000

Servizi e Attività Doganali per l’Industria S.p.A. Turin Italy 520,000 EURO 100.00 Business Solutions S.p.A. 100.000

Sestrieres S.p.A. Sestriere Italy 16,120,000 EURO 100.00 Business Solutions S.p.A. 70.000

Toro Assicurazioni S.p.A. 30.000

SGR Società per la Gestione dei Rischi S.p.A. Turin Italy 104,000 EURO 100.00 Business Solutions S.p.A. 100.000

Spilamberto Green Village S.r.l. Turin Italy 5,000,000 EURO 65.95 IPI S.p.A. 100.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Sporting Club Sestrieres S.r.l. Sestriere Italy 312,000 EURO 100.00 Sestrieres S.p.A. 100.000

Teleclient S.p.A. Turin Italy 412,000 EURO 100.00 Business Solutions S.p.A. 100.000

Transfima-Trasporti Fiat - Matra S.p.A. Turin Italy 1,020,000 EURO 51.00 Fiat Engineering S.p.A. 51.000

Worknet Società di Fornitura

di Lavoro Temporaneo S.p.A. Rome Italy 5,681,000 EURO 51.00 Business Solutions S.p.A. 51.000

❚ Miscellaneous and Holding companies

Carex Uitaacenter N.V. Nethen Belgium 1,520,053 EURO 100.00 Magneti Marelli Services S.p.A. 99.950

Midas Italia S.p.A. 0.050

Celt Receivables Limited Dublin Ireland 52 EURO 100.00 Fiat Geva Europe Ltd 100.000

C.R.F. Società Consortile per Azioni Orbassano Italy 25,000,000 EURO 89.45 Fiat Auto S.p.A. 40.000

Iveco S.p.A. 20.000

Magneti Marelli Holding S.p.A. 20.000

Comau S.p.A. 5.000

Teksid S.p.A. 5.000

Case New Holland Italia S.p.A. 5.000

Sicind S.p.A. 2.000

FiatAvio S.p.A. 2.000

Ferrari S.p.A. 1.000

Elasis-Sistema di Ricerca Fiat nel Mezzogiorno-

Società Consortile per Azioni Pomigliano d’Arco Italy 19,240,000 EURO 57.37 Fiat Auto S.p.A. 56.000

Fiat Hitachi Excavators S.p.A. 6.800

FiatAvio S.p.A. 5.800

Iveco S.p.A. 3.300

Fiat S.p.A. 0.167

C.R.F. Società Consortile per Azioni 0.033

European Engine Alliance S.c.r.l. Turin Italy 24,000,000 EURO 61.52 Iveco S.p.A. 33.333

CNH Global N.V. 33.333

Fahag Immobilien-und Finanz-Gesellschaft AG Zurich Switzerland 500,000 CHF 100.00 IHF-Internazionale Holding Fiat S.A. 100.000

Ferrari Deutschland GmbH Wiesbaden Germany 1,000,000 EURO 90.00 Ferrari International S.A. 100.000

Ferrari Fin. Services Inc. Englewood Cliffs United States 10,000 USD 100.00 Fiat U.S.A. Inc. 100.000

Ferrari Idea S.A. Lugano Switzerland 15,000,000 CHF 90.00 Ferrari International S.A. 100.000

Ferrari International S.A. Luxembourg Luxembourg 7,112,000 EURO 90.00 Ferrari S.p.A. 99.999

GSA-Gestions Sportives Automobiles S.A. 0.001

Ferrari.Net S.p.A. Modena Italy 15,500,000 EURO 90.00 Ferrari S.p.A. 100.000

Ferrari N.America Inc. Englewood Cliffs United States 200,000 USD 90.00 Ferrari S.p.A. 100.000

Ferrari San Francisco Inc. Mill Valley United States 100,000 USD 90.00 Ferrari N.America Inc. 100.000

Ferrari S.p.A. Modena Italy 516,500 EURO 90.00 Fiat S.p.A. 90.000

Ferrari (Suisse) SA Nyon Switzerland 1,000,000 CHF 90.00 Ferrari International S.A. 100.000

Fias Fiat Administration und Service GmbH Ulm Germany 200,000 DEM 96.00 Iveco Magirus AG 80.000

Fiat Automobil A.G. 20.000

Fiat Argentina S.A. Buenos Aires Argentina 520,002 ARS 100.00 Sicind S.p.A. 99.990

SGR-Sociedad para la Gestion de Riesgos S.A. 0.010

Fiat Auto Partecipazioni S.p.A. Turin Italy 1,040,000,000 EURO 99.99 Fiat S.p.A. 99.973

Teksid S.p.A. 0.027

Fiat Concord S.A. Buenos Aires Argentina 1 ARS 100.00 Fiat Argentina S.A. 99.990

SGR-Sociedad para la Gestion de Riesgos S.A. 0.010

Fiat Deutschland GmbH Ulm Germany 1,000,000 DEM 100.00 Fiat Finance and Trade Ltd 100.000

Fiat do Brasil S.A. Nova Lima Brazil 999,684 BRL 100.00 Sicind S.p.A. 99.932

Fiat Gesco S.p.A. 0.061

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale 0.007

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 103

103


104

104

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Fiat Financas Brasil Ltda Nova Lima Brazil 2,469,701 BRL 100.00 Fiat Ge.Va. S.p.A. 99.994

Fiat do Brasil S.A. 0.006

Fiat Finance Corporation B.V. Amstelveen Netherlands 2,300,000 EURO 99.99 Fiat Auto Partecipazioni S.p.A. 100.000

Fiat Finance and Trade Ltd Luxembourg Luxembourg 251,494,000 EURO 100.00 Fiat Ge.Va. S.p.A. 99.990

Fiat Finance Canada Ltd. 0.010

Fiat Finance Canada Ltd. Calgary Canada 10,099,885 CAD 100.00 Fiat Ge.Va. S.p.A. 100.000

Fiat Finance France S.N.C. Paris France 228,674 EURO 99.67 Fiat France S.A. 98.333

Fiat France Participations Financieres S.A. 1.667

Fiat Finance North America Inc. Wilmington United States 40,090,010 USD 100.00 Fiat Ge.Va. S.p.A. 60.526

IHF-Internazionale Holding Fiat S.A. 39.474

Fiat France S.A. Paris France 55,216,000 EURO 100.00 Sicind S.p.A. 100.000

Fiat Ges.co France (GEIE) Paris France 0 EURO 96.97 Fiat Gesco S.p.A. 50.000

Magneti Marelli France S.A. 20.000

Fiat Auto (France) S.A. 15.000

Iveco France S.A. 15.000

Fiat Gesco UK Limited in liq. London Great Britain 625,767 GBP 100.00 Fiat United Kingdom Limited 100.000

Fiat Geva Europe Ltd. Dublin Ireland 219,494,225 EURO 100.00 Fiat Finance and Trade Ltd 100.000

Fiat Ge.Va. S.p.A. Turin Italy 224,440,000 EURO 100.00 Fiat S.p.A. 100.000

Fiat Gra.De EEIG Watford Great Britain 0 GBP 95.96 Fiat Auto Partecipazioni S.p.A. 46.000

Iveco N.V. 24.000

CNH Global N.V. 24.000

Magneti Marelli Holding S.p.A. 2.000

Fiat S.p.A. 2.000

Comau S.p.A. 1.000

Teksid S.p.A. 1.000

Fiat Iberica S.A. Madrid Spain 2,797,054 EURO 100.00 Sicind S.p.A. 100.000

Fiat Information & Communication Services S.r.l. Turin Italy 800,000 EURO 100.00 Sicind S.p.A. 100.000

Fiat International S.p.A. Turin Italy 1,300,000 EURO 100.00 Fiat S.p.A. 100.000

Fiat Netherlands Holding N.V. Amstelveen Netherlands 62,325,000 EURO 100.00 Fiat S.p.A. 74.000

Sicind S.p.A. 26.000

Fiat Polska Sp. z o.o. Warsaw Poland 25,500,000 PLN 100.00 Sicind S.p.A. 100.000

Fiat-Revisione Interna e Ispettorato S.c.r.l. Turin Italy 300,000 EURO 92.28 Fiat Auto S.p.A. 20.000

Iveco N.V. 10.000

CNH Global N.V. 10.000

Fiat S.p.A. 9.000

Sicind S.p.A. 10.667

FiatAvio S.p.A. 5.000

Magneti Marelli Holding S.p.A. 5.000

Comau S.p.A. 5.000

Teksid S.p.A. 5.000

Itedi-Italiana Edizioni S.p.A. 5.000

Toro Assicurazioni S.p.A. 5.000

Ferrari S.p.A. 5.000

Business Solutions S.p.A. 4.333

Fiat Ge.Va. S.p.A. 1.000


Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Fiat Servizi per l’Industria S.c.p.a. Turin Italy 3,850,000 EURO 92.00 Fiat S.p.A. 36.468

Fiat Auto S.p.A. 33.532

Iveco S.p.A. 6.000

Teksid S.p.A. 2.000

FiatAvio S.p.A. 3.000

Magneti Marelli Holding S.p.A. 4.000

Case New Holland Italia S.p.A. 3.000

Comau S.p.A. 1.500

Editrice La Stampa S.p.A. 1.500

Business Solutions S.p.A. 3.000

Fiat Engineering S.p.A. 2.000

C.R.F. Società Consortile per Azioni 1.500

Toro Assicurazioni S.p.A. 2.500

Fiat U.S.A. Inc. New York United States 16,830,000 USD 100.00 Fiat S.p.A. 100.000

Fiat United Kingdom Limited London Great Britain 860,000 GBP 100.00 Sicind S.p.A. 100.000

GSA-Gestions Sportives Automobiles S.A. Meyrin Switzerland 1,000,000 CHF 90.00 Ferrari S.p.A. 100.000

IHF-Internazionale Holding Fiat S.A. Paradiso Switzerland 2,000,000,000 CHF 100.00 Fiat S.p.A. 100.000

Immobiliaria Moderna 2000 S.L. Madrid Spain 3,517,428 EURO 100.00 Fiat Iberica S.A. 100.000

Intermap (Nederland) B.V. Amsterdam Netherlands 18,151 EURO 99.99 Fiat Finance Corporation B.V. 100.000

Isvor Dealernet S.r.l. Turin Italy 780,000 EURO 86.45 Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale 80.000

Fiat Auto S.p.A. 20.000

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale Turin Italy 780,000 EURO 88.07 Fiat Auto S.p.A. 38.000 21.000

Fiat S.p.A. 26.000 52.000

Teksid S.p.A. 12.000 13.000

Iveco S.p.A. 9.000 13.000

Magneti Marelli Holding S.p.A. 6.000 0.000

FiatAvio S.p.A. 2.000 0.000

Fiat Engineering S.p.A. 2.000 0.000

Case New Holland Italia S.p.A. 2.000 1.000

Comau S.p.A. 2.000 0.000

Sicind S.p.A. 1.000 0.000

La Stampa Europe SAS Paris France 18,600,000 EURO 100.00 Fiat France S.A. 100.000

Magneti Marelli Services S.p.A. Turin Italy 15,349,500 EURO 100.00 Fiat Netherlands Holding N.V. 99.999 100,000

Magneti Marelli Suspension Holding S.p.A. Turin Italy 1,000,000 EURO 100.00 Fiat Netherlands Holding N.V. 100.000

Main (Mergers, Acquisitions and Investments) Limited Nassau Bahamas 1,000,000 USD 100.00 IHF-Internazionale Holding Fiat S.A. 100.000

Maserati North America Inc. Englewood Cliffs United States 1,000 USD 90.00 Ferrari N.America Inc. 100.000

Maserati S.p.A. Modena Italy 31,000,000 EURO 90.00 Ferrari S.p.A. 100.000

Midas Autoservice GmbH Vienna Austria 701,874 EURO 100.00 Magneti Marelli Services S.p.A. 100.000

Midas Europe S.A.M. Monaco Princ.of Monaco 152,000 EURO 100.00 Magneti Marelli Services S.p.A. 100.000

Midas France S.a.s. Celle S. Cloud France 17,475,000 EURO 100.00 Magneti Marelli Services S.p.A. 99.999

Midas Italia S.p.A. 0.001

Midas Italia S.p.A. Milan Italy 5,000,000 EURO 100.00 Magneti Marelli Services S.p.A. 100.000

Midas Polska Sp. z o.o. Warsaw Poland 8,649,300 PLN 100.00 Magneti Marelli Services S.p.A. 100.000

Midas S.A. Nethen Belgium 2,476,262 EURO 100.00 Magneti Marelli Services S.p.A. 99.750

Midas Italia S.p.A. 0.250

Midas Schwiez A.G. Zurich Switzerland 680,000 CHF 100.00 Magneti Marelli Services S.p.A. 100.000

Midas Silenciador S.L. Madrid Spain 2,673,700 EURO 100.00 Magneti Marelli Services S.p.A. 100.000

Midas Spain Inc. Chicago United States 1,000 USD 100.00 Magneti Marelli Services S.p.A. 100.000

Motorcomsa S.A. Paradiso Switzerland 3,000,000 CHF 100.00 IHF-Internazionale Holding Fiat S.A. 100.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 105

105


106

106

Subsidiaries consolidated on a line-by-line basis (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

MotorMust.com S.p.A. Milan Italy 2,300,000 EURO 99.67 Magneti Marelli Services S.p.A. 99.674

MSC USA Englewood Clifs United States 100,000 USD 90.00 Ferrari International S.A. 100.000

Neptunia Assicurazioni Marittime S.A. Lugano Switzerland 10,000,000 CHF 100.00 Rimaco S.A. 100.000

Palazzo Grassi S.p.A. Venice Italy 10,200,000 EURO 100.00 Sicind S.p.A. 100.000

Pharos S.r.l. Turin Italy 105,000 EURO 92.38 Fiat Servizi per l’Industria S.c.p.a. 95.238

Società Italiana Commerciale Industriale-SICI S.p.A. 4.762

Rimaco S.A. Lausanne Switzerland 350,000 CHF 100.00 IHF-Internazionale Holding Fiat S.A. 100.000

Sadi Brasil Ltda. Nova Lima Brazil 90,000 BRL 88.98 Fiat Automoveis S.A. - FIASA 10.000

Case Brasil & CIA 10.000

Teksid do Brasil Ltda 10.000

Magneti Marelli do Brasil Industria e Comercio Ltda 10.000

Fiatallis Latino Americana Ltda 10.000

Iveco Fiat Brasil Ltda 10.000

Iveco Latin America Ltda 10.000

Magneti Marelli Cofap Comp.Fabr.de Pecas 10.000

New Holland Latino Americana Ltda 10.000

Comau do Brasil Ltda. 10.000

Sadim S.a.r.l. Celle S. Cloud France 50,000 FRF 100.00 Midas France S.a.s. 100.000

Sicind S.p.A. Turin Italy 1,547,290,108 EURO 100.00 Fiat S.p.A. 100.000

Società Italiana Commerciale Industriale-SICI S.p.A. Turin Italy 618,800 EURO 100.00 Sicind S.p.A. 100.000

Sisport Fiat Società per Azioni-SF Turin Italy 7,120,800 EURO 100.00 Sicind S.p.A. 100.000


Jointly-owned companies consolidated by the proportional integration method

% of

Group % of

consoli- Interest % interest voting

Name

❚ Commercial Vehicles

Registered office Country Capital stock Currency dation held by held rights

Heuliez Bus S.A. Mauleon France 9,000,000 EURO 49.76 Société Charolaise de Participations S.A. 99.520

Ikarus Egyedi Autibusz GY Budapest Hungary 350,000,000 HUF 32.35 Ikarusbus Jamugyarto RT 68.114

Ikarusbus Jamugyarto RT Szekesfehervar Hungary 6,007,459,850 HUF 47.50 Irisbus Holding S.L. 95.000

Irisbus Australia Pty. Ltd. Brisbane Australia 825,000 AUD 30.00 Irisbus Holding S.L. 60.000

Irisbus Deutschland GmbH Mainz-Mombach Germany 10,000,000 EURO 50.00 Irisbus Holding S.L. 100.000

Irisbus France S.A. Venissieux France 142,482,000 EURO 50.00 Irisbus Holding S.L. 100.000

Irisbus Holding S.L. Madrid Spain 233,670,000 EURO 50.00 Iveco S.p.A. 30.403

Iveco N.V. 19.597

Irisbus Italia S.p.A. Turin Italy 100,635,750 EURO 50.00 Irisbus Holding S.L. 100.000

Irisbus Iberica S.L. Madrid Spain 28,930,788 EURO 50.00 Irisbus Holding S.L. 100.000

Irisbus (U.K.) Ltd Watford Great Britain 200,000 GBP 50.00 Irisbus Holding S.L. 100.000

Karosa r.s.o. Bratislava Slovack Republic 200,000 CZK 47.94 Karosa A.S. 100.000

Societé d’Assistance Tecnique

Karosa A.S. Vysoke Myto Czech Republic 1,065,559,000 CZK 47.94 Automobile S.A.T.A.U. S.A. 95.880

Naveco Ltd. Nanjing People’s Rep. of China 2,527,000,000 CNY 50.00 Iveco S.p.A. 50.000

Societé d’Assistance Tecnique

Automobile S.A.T.A.U. S.A. Venissieux France 35,610,000 EURO 50.00 Irisbus France S.A. 100.000

Société Charolaise de Participations S.A. Venissieux France 2,370,000 EURO 50.00 Irisbus Holding S.L. 100.000

❚ Aviation

Europropulsion S.A. Suresnes France 1,200,000 EURO 50.00 FiatAvio S.p.A. 50.000

Vegaspazio S.p.A. Rome Italy 100,000 EURO 50.00 FiatAvio S.p.A. 50.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 107

107


108

108

Subsidiaries valued by the equity method

% of

Group % of

consoli- Interest % interest voting

Name

❚ Automobiles

Registered office Country Capital stock Currency dation held by held rights

Alfa Romeo Inc. New York United States 3,000,000 USD 79.99 Fiat Auto S.p.A. 100.000

Brousse Freres S.A. Saint Ouen France 555,000 FRF 79.99 Garage du Palais S.A. 100.000

International Metropolitan

Copada S.A.S. Paris France 5,000,000 FRF 79.99 Automotive Promotion (France) S.A. 100.000

Fiat Auto Egypt Industrial Company SAE Giza Egypt 20,000,000 EGP 40.80 Fiat Auto S.p.A. 51.000

Fiat Auto Egypt S.A.E. Giza Egypt 500,000 EGP 40.39 Fiat Auto Egypt Industrial Company SAE 99.000

Fiat Auto S.A. de Ahorro para Fines Determinados Buenos Aires Argentina 60,000 ARS 80.01 Fiat Auto Argentina S.A. 99.900

Fiat Argentina S.A. 0.100

Fiat Automoviles Venezuela C.A. La Victoria Venezuela 5,224,850,000 VEB 79.99 Fiat Automoveis S.A. - FIASA 100.000

Property and Car Retailing-Pro.Ca.R.

Fiat Motor Sales Ltd Slough Berkshire Great Britain 1,500,000 GBP 79.99 International S.p.A. 100.000

Garage du Palais S.A. Paris France 1,000,000 FRF

79.99

79.99

International Metropolitan

Automotive Promotion (France) S.A. 100.000

Leasys S.p.A. Rome Italy 319,200,000 EURO 40.80 Fidis S.p.A. 51.000

Property and Car Retailing-Pro.Ca.R.

SA France Auto Roubaix France 6,000,000 FRF 79.99 International S.p.A. 100.000

Property and Car Retailing-Pro.Ca.R.

SA France Auto Roubaix Roubaix France 585,200 FRF 79.99 International S.p.A. 100.000

Saigarage S.p.A. in liq. Turin Italy 516,456 EURO 79.99 Fiat Auto Var S.r.l. a S.U. 100.000

Sirio Polska Sp. z o.o. Bielsko-Biala Poland 1,350,000 PLN 62.76 Fiat Auto Poland S.A. 100.000

Property and Car Retailing-Pro.Ca.R.

Trans Commerz GmbH Vienna Austria 500,000 ATS 79.99 International S.p.A. 95.000

Fiat Auto (Suisse) S.A. 5.000

Zao Nizhegorod Motors Nizhnjy Novgorod Russia 24,660,000 RUR 58.47 Fiat Auto S.p.A. 73.090 73.127

❚ Agricultural and Construction Equipment

Agriserve Inc. Wilmington United States 352,500 USD 80.08 New Holland North America Inc. 94.695

Bizon-Ukraina S.P. Kowel Ukraine 1,000 USD 43.13 New Holland Bizon Sp. z o.o. 51.000

Case IH Power & Equipment Inc. Wilmington United States 897,400 USD 84.56 New Holland North America Inc. 100.000

Challenger New Holland Ltd. Ottawa Canada 623,000 CAD 49.56 New Holland Canada Ltd. 58.604

Charleston Tractor Co. Wilmington United States 280,000 USD 84.56 New Holland North America Inc. 100.000

Farmers New Holland Inc. Wilmington United States 650,000 USD 84.56 New Holland North America Inc. 100.000

First State New Holland Inc. Wilmington United States 260,000 USD 63.94 New Holland North America Inc. 75.615

Galwa-Kor Sp. z o.o. Plock Poland 300,000 PLN 84.56 New Holland Bizon Sp. z o.o. 100.000

Garden City New Holland Inc. Wilmington United States 542,500 USD 55.48 New Holland North America Inc. 65.604

Hayward Implement Inc. Wilmington United States 375,000 USD 84.56 New Holland North America Inc. 100.000

Heartland New Holland Inc. Wilmington United States 325,000 USD 78.06 New Holland North America Inc. 92.308

La Grande New Holland Inc. Wilmington United States 404,800 USD 64.13 New Holland North America Inc. 75.840

Medicine Hat New Holland Ltd. Ottawa Canada 1,327,900 CAD 74.90 New Holland Canada Ltd. 88.568

Memphis New Holland Inc. Wilmington United States 401,700 USD 81.22 New Holland North America Inc. 96.042

Metro New Holland Inc. Wilmington United States 400,000 USD 84.56 New Holland North America Inc. 100.000

Neuse River New Holland Inc. Wilmington United States 288,000 USD 65.27 New Holland North America Inc. 77.188

Newton Tractor Sales Inc. Wilmington United States 445,000 USD 67.46 New Holland North America Inc. 79.775

Niagara Frontier Equipment Sales Inc. Wilmington United States 612,500 USD 56.52 New Holland North America Inc. 66.841

Northside New Holland Inc. Wilmington United States 250,000 USD 77.80 New Holland North America Inc. 92.000

Pensacola Tractor & Equipment Inc. Wilmington United States 330,000 USD 84.56 New Holland North America Inc. 100.000

Redwood Equipment Inc. Wilmington United States 547,500 USD 79.78 New Holland North America Inc. 94.338

Ridgeview New Holland Inc. Wilmington United States 390,000 USD 78.06 New Holland North America Inc. 92.308

Speedway New Holland Inc. Wilmington United States 585,000 USD 83.12 New Holland North America Inc. 98.291

St. Catharines New Holland Ltd. Ottawa Canada 327,700 CAD 57.23 New Holland Canada Ltd. 67.680

Sunrise Tractor & Equipment Inc. Wilmington United States 875,000 USD 80.02 New Holland North America Inc. 94.629

Tallahassee New Holland Inc. Wilmington United States 385,000 USD 82.37 New Holland North America Inc. 97.403


Subsidiaries valued by the equity method (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Team New Holland Equipment Inc. Wilmington United States 603,000 USD 75.98 New Holland North America Inc. 89.851

Third City New Holland Inc. Wilmington United States 370,000 USD 84.56 New Holland North America Inc. 100.000

Three Rivers Equipment Company Inc. Wilmington United States 563,700 USD 53.44 New Holland North America Inc. 63.190

Topeka New Holland Inc. Wilmington United States 400,000 USD 72.51 New Holland North America Inc. 85.750

Tri-County New Holland Inc. Wilmington United States 400,000 USD 84.56 New Holland North America Inc. 100.000

West Shore New Holland Inc. Wilmington United States 385,000 USD 61.41 New Holland North America Inc. 72.623

Woodstock New Holland Ltd Ottawa Canada 1,480,000 CAD 84.56 New Holland Canada Ltd. 100.000

Yorkton New Holland Ltd. Ottawa Canada 900,000 CAD 78.93 New Holland Canada Ltd. 93.333

❚ Commercial Vehicles

F. Pegaso S.A. Madrid Spain 993,045 EURO 100.00 Iveco Pegaso S.L. 100.000

Financiere Pegaso France S.A. Trappes France 260,832 EURO 100.00 Iveco Pegaso S.L. 100.000

Iveco-Motor Sich. Inc. Zaporozhye Ukraine 26,568,000 UAK 55.56 Iveco S.p.A. 55.556

Iveco S.P.R.L. Kinshasa Congo (Dem. Rep. Congo) 340,235,000 ZRN 100.00 Iveco N.V. 100.000

Iveco Ukraine Inc. Kiev Ukraine 62,515,200 UAK 65.91 Iveco S.p.A. 65.910

❚ Metallurgical Products

Teksid Aluminum Components Inc. Wilmington United States 20,000,000 USD 49.88 Teksid S.p.A. 75.000

Teksid of India Limited Panaji India 398,832,830 INR 66.50 Teksid S.p.A. 100.000

❚ Components

Cofap Companhia Fabricadora de Pecas S.A. São Paulo Brazil 36,632,269 BRL 67.40 Magneti Marelli Holding S.p.A. 33.704 34.160

Magneti Marelli Iberica S.A. 33.704 34.160

Magneti Marelli Guangzhou Motor

Vehicle Instruments Co. Limited Guangzhou People’s Rep. of China 8,100,000 USD 100.00 Magneti Marelli Sistemi Elettronici S.p.A. 100.000

Seima Italiana Auto Svet Krasnig Oktjabr Kirz Russia 24,290,000 RUR 59.99 Seima Italiana S.p.A. 60.000

Seima Italiana Russia Vladimir Russia 100,000 RUR 99.98 Seima Italiana S.p.A. 100.000

Yorka de Mexico S.A. de CV Mexico D.F. Mexico 50,000 MXN 99.97 Yorka SA 100.000

Yorka Northamerica Corp. Southfield United States 10,000 USD 99.97 Yorka de Mexico S.A. de CV 100.000

❚ Insurance

CST-Centro Servizi Toro S.r.l. Turin Italy 8,010,000 EURO 100.00 Toro Assicurazioni S.p.A. 100.000

Ogepa S.A. Paris France 38,113 EURO 96.33 Le Continent IARD S.A. 79.720

Omnium de Financement et de

realisation du Batiment-O.FI.BA. S.A. Paris France 38,113 EURO 99.16 Le Continent IARD S.A. 99.680

L’Union Generale du Nord S.A. 20.000

❚ Miscellaneous and Holding companies

Ayfra S.A. in liq. Asuncion Paraguay 135,000,000 PYG 100.00 Sicind S.p.A. 99.990

Fiat Argentina S.A. 0.010

BUC - Banca Unione di Credito Lugano Switzerland 100,000,000 CHF 100.00 IHF-Internazionale Holding Fiat S.A. 100.000

Centro Studi sui Sistemi di Trasporto-CSST S.p.A. Turin Italy 520,000 EURO 79.04 Fiat Auto S.p.A. 49.000

Iveco S.p.A. 30.000

C.R.F. Società Consortile per Azioni 11.000

CiaoWeb Portal S.p.A. Turin Italy 25,000,000 EURO 100.00 CiaoWeb S.p.A. 100.000

CiaoWeb S.p.A. Turin Italy 35,000,000 EURO 100.00 Sicind S.p.A. 100.000

European Engine Alliance EEIG Maindenhead Great Britain 1,950,000 GBP 61.52 New Holland U.K. Limited 33.333

Iveco S.p.A. 33.333

Overseas Union Bank and Trust (Bahamas) Ltd. Nassau Bahamas 5,000,000 USD 100.00 IHF-Internazionale Holding Fiat S.A. 100.000

Rimi S.p.A. in liq. Turin Italy 102,000 EURO 100.00 Sicind S.p.A. 100.000

SGR-Sociedad para la Gestion de Riesgos S.A. Buenos Aires Argentina 10,000 ARS 99.96 Rimaco S.A. 99.960

Sistemi Ambientali S.p.A. in liq. Rivoli Italy 19,014,744,000 ITL 99.77 Sicind S.p.A. 99.768

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 109

109


110

110

Subsidiaries valued at cost

% of

Group % of

consoli- Interest % interest voting

Name

❚ Automobiles

Registered office Country Capital stock Currency dation held by held rights

Alfa Romeo Motors Ltd. Bangkok Thailand 100,000,000 THB 79.99 Fiat Auto S.p.A. 99.999

Andalcar Motor S.L. Cordoba Spain 423,599,000 ESP 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 100.000

Auto Italia Erfurt GmbH Erfurt Germany 25,000 EURO 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 100.000

BDC & Co. Société en Accomandite Simple Auderghem Belgium 270,000,000 BEF 65.18 Internat.Metrop.Automotive Prom. (Belgio) S.A. 81.481

Centro Automobile GmbH Frankfurt Frankfurt Germany 3,067,751 EURO 79.99 Property and Car Retailing-Pro.Ca.R. Deutschland GmbH 100.000

Consorzio di Ricerca per Veicoli

a Minimo Impatto Ambientale Arese Italy 82,630 EURO 55.56 Fiat Auto S.p.A. 59.378

C.R.F. Società Consortile per Azioni 6.250

Centro Studi sui Sistemi di Trasporto-CSST S.p.A. 3.125

Consorzio Fiat Auto Marketing Institute Beinasco Italy 54,224 EURO 79.81 Fiat Auto S.p.A. 70.000

Isvor Fiat S.p.A. - Società di Sviluppo e

Addestramento Industriale 20.000

Fiat Servizi per l’Industria S.c.p.a. 5.000

Targasys S.r.l. a S.U. 2.000

F. Auto Austria Commerz & Co. SCS Brussels Belgium 228,000,000 BEF 69.47 Internat.Metrop.Automotive Prom. (Belgio) S.A. 86.842

Fiat Auto de Mexico Sociedad Anonima

de Capital Variable (S.A. de V.C.) Mexico City Mexico 50,000 MXN 79.99 Fiat Auto S.p.A. 99.998

Property and Car Retailing-Pro.Ca.R. International S.p.A. 0.002

Fiat Auto Espana Marketing Instituto

Agrupacion de Interes Economico Alcalá de Henares Spain 5,000,000 ESP 75.99 Fiat Auto Espana S.A. 95.000

Fiat Auto Marketing Institute (Portugal) ACE GEIE Lisbon Portugal 3,000,000 PTE 63.99 Fiat Auto Portuguesa S.A. 80.000

Fiat Auto Thailand Pvt. Ltd. Bangkok Thailand 8,000,000 THB 79.99 Fiat Auto S.p.A. 100.000

Hidrofiasa Ltda Nova Lima Brazil 10,000 BRL 79.99 Fiat Automoveis S.A.-FIASA 99.990

Teksid do Brasil Ltda 0.010

KARLACK METROPOLE GmbH -

Karosserie-und Lackiersentrum Erfurt Germany 25,000 EURO 79.99 Auto Italia Erfurt GmbH 100.000

La Fenice S.A. Buenos Aires Argentina 12,000 ARS 80.01 Fiat Auto Argentina S.A. 99.900

Fiat Argentina S.A. 0.100

New City Car S.A. Brussels Belgium 70,000,000 BEF 79.99 Internat.Metrop.Automotive Prom. (Belgio) S.A. 99.999

Fiat Auto (Belgio) S.A. 0.001

Pro-Car LLC Moscow Russia 999,250 RUR 79.99 Property and Car Retailing-Pro.Ca.R. International S.p.A. 100.000

Savarent Fleet Services S.r.l. Turin Italy 50,000 EURO 79.99 Savarent S.p.A. 100.000

Targasys Espana S.L. Alcalá de Henares Spain 5,000 EURO 79.99 TarCredit E.F.C. S.A. 98.000

Fiat Auto Espana S.A. 2.000

❚ Agricultural and Construction Equipment

A.M. Exports Limited Doncaster Great Britain 5,000 GBP 84.56 David Brown Tractors (Retail) Ltd. 100.000

Case Credits Limited Doncaster Great Britain 100,000 GBP 84.56 Pryor Foundry Inc. 100.000

Case India USLT Limited Wilmington United States 5 USD 84.56 Case Corporation 100.000

Case Mauritius US Limited Port Louis Mauritius 2 USD 84.56 Case India USLT Limited 100.000

Case Poclain Ltd. Doncaster Great Britain 2 GBP 84.56 Case United Kingdom Limited 100.000

Case Sprayers Limited Lincoln Great Britain 1 GBP 84.56 Case United Kingdom Limited 100.000

Consorzio Fiat-Hitachi Isvor Dealernet Rete S.Mauro Torinese Italy 41,000,000 ITL 32.85 Fiat Hitachi Excavators S.p.A. 46.341

Isvor Dealernet S.r.l. 12.195

C.W. Inc. Bismark United States 10 USD 84.56 Concord Inc. 100.000

David Brown Tractors (Belfast) Ltd. Belfast Great Britain 1,000 IEP 84.56 Pryor Foundry Inc. 100.000

David Brown Tractors (Ireland) Ltd. Dublin Ireland 20,000 IEP 84.56 Pryor Foundry Inc. 100.000

David Brown Tractors Ltd. Doncaster Great Britain 2 GBP 84.56 Case United Kingdom Limited 100.000

David Brown Tractors (Retail) Ltd. Doncaster Great Britain 20,000 GBP 84.56 Pryor Foundry Inc. 100.000

Grundstückverw.Ges.Stalheuser

Liegenschaften GmbH & Co. KG Essen Germany 1,000 DEM 75.69 O & K Orenstein & Koppel AG 94.000

Fermec North America Inc. Wilmington United States 5 USD 84.56 Case Corporation 100.000


Subsidiaries valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

International Harvester Company Wilmington United States 1,000 USD 84.56 Case Corporation 100.000

International Harvester Co. of Belgium N.V. Schelle Belgium 1,250,000 BEF 84.56 Case Belgium N.V. 90.000

Case Corporation 10.000

International Harvester Co. of Great Britain Ltd. Doncaster Great Britain 3 GBP 84.56 Case Corporation 100.000

J.I. Case Argentina S.A. Buenos Aires Argentina 2 ARS 84.56 Pryor Foundry Inc. 100.000

J.I. Case Company Limited Doncaster Great Britain 2 GBP 84.56 Case United Kingdom Limited 100.000

J.I. Case International S.A. Caracas Venezuela 3,000,000 VEB 84.56 Pryor Foundry Inc. 100.000

Lake Wales New Holland Inc. Wilmington United States 225,000 USD 84.56 New Holland North America Inc. 100.000

New Holland Excavator Holdings LLC Wilmington United States 1 USD 84.56 Case Corporation 100.000

New Holland Holdings Limited Riverstone Australia 5,000,000 AUD 84.56 CNH Global N.V. 100.000

New Holland Superannuation Pty. Ltd. Riverstone Australia 2 AUD 84.56 New Holland Australia Pty. Limited 100.000

O & K Norge A/S in liq. Oslo Norway 2,000,000 NOK 80.52 O & K Orenstein & Koppel AG 100.000

Poclain Limited Doncaster Great Britain 46,700 GBP 84.56 David Brown Tractors (Retail) Ltd. 100.000

PPM do Brazil Ltda. Soracaba Brazil 11,619 BRL 84.56 Case Brasil & CIA 98.610

Poclain do Brasil S.A. 1.390

RosCaseMash Saratov Russia 200,000 RUR 32.35 Case Equipment Holdings Limited 38.250 51.000

Shanghai New Holland Agricultural

Machinery Corporation Limited Shanghai People’s Rep. of China 35,000,000 USD 50.74 New Holland Mauritius (Private) Ltd. 60.000

Steiger International Ltd. Agana Guam 20 USD 84.56 Pryor Foundry Inc. 100.000

Tractorwork Limited Doncaster Great Britain 3,050 GBP 84.56 Pryor Foundry Inc. 100.000

Versatile Credit Pty. Ltd. Bundaberg Australia 1,000,002 AUD 84.56 Versatile Farm Equipment Pty. Ltd. 100.000

Versatile Farm Equipment Pty. Ltd. Bundaberg Australia 20,000 AUD 84.56 Austoft Industries Limited 100.000

❚ Commercial Vehicles

Consorzio per la Formazione

Commerciale Iveco-Coforma Turin Italy 100,000,000 ITL 58.81 Iveco S.p.A. 50.000

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale 10.000

Iran Magirus-Deutz Teheran Iran 180,000,000 IRR 100.00 Iveco Magirus AG 100.000

Iveco Colombia Ltda. Santa Fe’ de Bogota Colombia 43,478,000 COP 99.53 Iveco Venezuela C.A. 99.530

Iveco Hong Kong Limited Hong Kong People’s Rep. of China 1,000 HKD 100.00 Iveco N.V. 100.000

Transolver Finance AG Kloten Switzerland 1,500,000 CHF 100.00 Iveco (Schweiz) AG 100.000

❚ Metallurgical Products

Compania Industrial Frontera S.A. de C.V. São Pedro Mexico 50,000 MXN 49.88 Teksid Hierro de Mexico S.A. de C.V. 100.000

Servicios Industriales Parque

Fundidores S.de r.l. de C.V. São Pedro Mexico 12,777 MXN 33.25 Teksid Aluminio de Mexico S.A. de C.V. 33.340

Teksid de Mexico S.A. de C.V. 33.330

Teksid do Brasil Aluminio Ltda Betim Brazil 1,000 BRL 66.83 Teksid do Brasil Ltda 99.000

Fiat do Brasil S.A. 1.000

Teksid Fonte Ingrandes S.A.S. Ingrandes sur Vienne France 40,000 EURO 66.50 Fonderies du Poitou S.A. 100.000

❚ Components

Automotive Lighting Japan K.K. KohoKu-Ku-Yokohama Japan 10,000,000 JPY 74.89 Automotive Lighting Reutlingen GmbH 100.000

Komdix SAS Paris France 40,000 EURO 100.00 Magneti Marelli Sistemi Elettronici S.p.A. 100.000

Magneti Marelli Auto Pecas Ltda. São Paulo Brazil 1,000 BRL 99.99 Magneti Marelli Holding S.p.A. 99.900

Magneti Marelli do Brasil Industria e Comercio Ltda 0.100

Magneti Marelli Automotive Components (India) Limited Pune India 125,000,000 INR 99.99 Magneti Marelli Components B.V. 100.000

Magneti Marelli Componentes S.A. Buenos Aires Argentina 12,000 ARS 98.89 Magneti Marelli Argentina S.A. 99.000

Magneti Marelli Pecas de Reposicao Ltda São Paulo Brazil 1,000 BRL 99.99 Magneti Marelli Holding S.p.A. 99.900

Magneti Marelli do Brasil Industria e Comercio Ltda 0.100

MM GB Limited Cannock Great Britain 250,000 GBP 99.99 Magneti Marelli U.K. Limited 100.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 111

111


112

112

Subsidiaries valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Rien E.U.R.L. in liq. Vaulx-en-Velin France 300,000 FRF 99.99 Magneti Marelli Holding S.p.A. 100.000

Shiyan Magneti Marelli Dong Feng

Auto Fueling Components Co. Ltd. Shiyan City People’s Rep. of China 3,000,000 USD 99.99 Magneti Marelli Holding S.p.A. 100.000

❚ Production Systems

Comau Australia Pty. Ltd Adelaide Australia 100 AUD 85.00 Comau S.p.A. 85.000

Comau (Shanghai) Automotive Equipment Co. Ltd. Shanghai People’s Rep. of China 1,000,000 USD 100.00 Comau S.p.A. 100.000

Comau U.K. Limited London Great Britain 2,500 GBP 100.00 Comau S.p.A. 100.000

❚ Insurance

Royal Servizi Tecnici S.r.l. Genoa Italy 91,800 EURO 100.00 Lloyd Italico Assicurazioni S.p.A. 100.000

S.C.I. Continent Pierre Grenier Paris France 5,335,715 EURO 96.61 Le Continent IARD S.A. 80.000

L’Union Generale du Nord S.A. 20.000

Société Civile Immobilière Continent Pierre Paris France 10,113,505 EURO 97.76 Société Civile Immobilière Continent Wagram 60.731

Le Continent IARD S.A. 1.115

Le Continent Vie S.A. 38.154

Société Civile Immobilière Continent Pyramides Paris France 30,160,815 EURO 97.00 Le Continent IARD S.A. 56.955

Société Civile Immobilière Continent Wagram 32.123

L’Union Generale du Nord S.A. 10.922

Société Civile Immobilière Continent Wagram Paris France 18,522,748 EURO 96.65 Le Continent IARD S.A. 80.300

L’Union Gen. du Nord S.A. 19.700

Société Civile Immobilière Immovie Paris France 17,662 EURO 99.48 Le Continent Vie S.A. 99.983

Le Continent IARD S.A. 0.017

S.C.I. Le Continent Asnieres Paris France 4,116,123 EURO 96.61 Le Continent IARD S.A. 80.000

L’Union Generale du Nord S.A. 20.000

❚ Services

Alimenta International S.r.l. Padua Italy 30,000 EURO 100.00 Alimenta S.p.A. 100.000

Building Services S.r.l. Turin Italy 90,000 EURO 51.00 Ingest Facility S.p.A. 51.000

Building Support S.r.l. Turin Italy 90,000 EURO 51.00 Building Services S.r.l. 100.000

Business Solutions Deutschland FiatGroup GmbH Ulm Germany 200,000 EURO 100.00 Business Solutions S.p.A. 100.000

Business Solutions FiatGroup USA Inc. Wilmington United States 1,000 USD 100.00 Business Solutions S.p.A. 100.000

C.O.AV. Città Ospedaliera Avellino S.c. a r.l. Parma Italy 25,500 EURO 51.00 Fiat Engineering S.p.A. 51.000

Consorzio Co.Ge.Av. In liquidazione Turin Italy 51,646 EURO 100.00 Fiat Engineering S.p.A. 100.000

Consorzio Fiatengineering-Ispredil-S.T.S. Turin Italy 200,000,000 ITL 55.00 Fiat Engineering S.p.A. 55.000

Consorzio Infatecno Turin Italy 10,000 EURO 100.00 Cleantecno S.r.l. 50.000

Ingest Facility S.p.A. 50.000

Detskoie Pitanie, Sok, Napitok - Depsona ZAO Moscow Russia 193,000,006 RUR 89.89 Alimenta S.p.A. 89.894 89.396

Fast Buyer France S.a.r.l. Paris France 7,700 EURO 99.92 Fast-Buyer S.p.A. 100.000

Fast-Buyer India Private Limited New Delhi India 220,000 INR 99.92 Fast-Buyer S.p.A. 100.000

Nuova Immobiliare Cinque S.r.l. Turin Italy 50,000 EURO 100.00 Investimenti e Gestioni S.p.A. 99.000

Società Italiana Commerciale Industriale-SICI S.p.A. 1.000

Nuova Immobiliare Due S.r.l. Turin Italy 50,000 EURO 100.00 Investimenti e Gestioni S.p.A. 99.000

Società Italiana Commerciale Industriale-SICI S.p.A. 1.000

Nuova Immobiliare Quattro S.r.l. Turin Italy 50,000 EURO 100.00 Investimenti e Gestioni S.p.A. 99.000

Società Italiana Commerciale Industriale-SICI S.p.A. 1.000

Nuova Immobiliare Tre S.r.l. Turin Italy 50,000 EURO 100.00 Investimenti e Gestioni S.p.A. 99.000

Società Italiana Commerciale Industriale-SICI S.p.A. 1.000

Nuova Immobiliare Uno S.r.l. Turin Italy 50,000 EURO 100.00 Investimenti e Gestioni S.p.A. 99.000

Società Italiana Commerciale Industriale-SICI S.p.A. 1.000


Subsidiaries valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

SCI Saint Michel in liq. Nice France 10,000 FRF 99.99 Fiat Engineering France S.A. 85.000

Fiat Engineering S.p.A. 15.000

Scuola di Pubblica Amministrazione s.p.a. Lucca Italy 30,000,000 ITL 48.21 Isvor Knowledge System S.p.A. 50.000

Transfima Gruppo Europeo di Interesse Economico Turin Italy 250,000 EURO 50.65 Fiat Engineering S.p.A. 43.000

Transfima-Trasporti Fiat - Matra S.p.A. 15.000

Unisanayi-Sanayi Urunleri Pazarlama Bursa Turkey 45,000,000,000 TRL 98.72 Fast-Buyer S.p.A. 98.800

Unisud S.r.l. Avellino Italy 30,980 EURO 69.94 Fast-Buyer S.p.A. 70.000

Unisul-Unindustria Mercosul Ltda Belo Horizonte Brazil 50,000 BRL 95.93 Fast-Buyer S.p.A. 80.000

❚ Miscellaneous and Holding companies

Fiat Automoveis S.A. - FIASA 20.000

Banca Unione di Credito (Cayman) Ltd Grand Cayman Cayman Islands 10,000,000 CHF 100.00 BUC - Banca Unione di Credito 100.000

Centro Ricerche Plast-Optica S.r.l. Amaro Italy 1,033,000 EURO 70.11 C.R.F. Società Consortile per Azioni 51.000

Seima Italiana S.p.A. 24.500

Consorzio Fiat Media Center Turin Italy 375,000,000 ITL 52.36 Astra Veicoli Industriali S.p.A. 1.724

Augusta Assicurazioni S.p.A. 1.724

Augusta Vita S.p.A. 1.724

Business Solutions S.p.A. 1.724

CiaoWeb Portal S.p.A. 1.724

Clickar S.p.A. 1.724

Comau S.p.A. 1.724

Editrice La Stampa S.p.A. 1.724

eSPIN S.p.A. 1.724

Ferrari Idea S.A. 1.724

Fiat Auto S.p.A. 1.724

Fiat Gesco S.p.A. 1.724

Fiat Hitachi Excavators S.p.A. 1.724

Fiat Information & Communication Services S.r.l. 1.724

Fiat Servizi per l’Industria S.c.p.a. 1.724

Fiat S.p.A. 1.724

FiatSava S.p.A. 1.724

Global Value S.p.A. 1.724

IPI Intermediazione S.r.l. 1.724

IPI S.p.A. 1.724

Irisbus Italia S.p.A. 1.724

Itedi-Italiana Edizioni S.p.A. 1.724

Iveco S.p.A. 1.724

Koinet S.p.A. 1.724

Magneti Marelli Holding S.p.A. 1.724

Midas Italia S.p.A. 1.724

Maserati S.p.A. 1.724

MotorMust.com S.p.A. 1.724

Case New Holland Italia S.p.A. 1.724

Nuova Tirrena S.p.A. 1.724

Palazzo Grassi S.p.A. 1.724

Roma Vita S.p.A. 1.724

Savarent S.p.A. 1.724

Toro Assicurazioni S.p.A. 1.724

Worknet Società di Fornitura di Lavoro

Temporaneo S.p.A. 1.724

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 113

113


114

114

Subsidiaries valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Consorzio per lo Sviluppo delle Aziende Fornitrici Rome Italy 250,741 EURO 62.99 Iveco S.p.A. 23.810

Fiat Auto S.p.A. 23.810

Case New Holland Italia S.p.A. 23.810

Consorzio "Sirio" per la Sicurezza Industriale Turin Italy 107,320,000 ITL 73.11 Fiat Auto S.p.A. 37.659

Astra Veicoli Industriali S.p.A. 0.186

Augusta Assicurazioni S.p.A. 0.186

Autocomponents Suspension S.r.l. a Socio Unico 0.190

Automotive Lighting Italia S.p.A. 0.466

Business Solutions S.p.A. 0.049

C.R.F. Società Consortile per Azioni 1.118

Centro Studi sui Sistemi di Trasporto-CSST S.p.A. 0.009

Cleantecno S.r.l. 0.009

Comau S.p.A. 2.050

Consorzio Fiat Media Center 0.047

CST-Centro Servizi Toro S.r.l. 0.009

Delivery & Mail S.r.l. 0.009

Easy Drive S.r.l. a S.U. 0.009

Editrice La Stampa S.p.A. 0.466

Elasis-Sistema di Ricerca Fiat nel Mezzogiorno-

Società Consortile per Azioni 0.466

ELV S.p.A. 0.009

eSPIN S.p.A. 0.049

Fast-Buyer S.p.A. 0.049

Ferrari S.p.A. 1.537

Fiat Engineering S.p.A. 0.466

Fiat Ge.Va. S.p.A. 0.932

Fiat Gesco S.p.A. 1.118

Fiat Hitachi Excavators S.p.A. 1.118

Fiat Information & Communication Services S.r.l. 0.186

Fiat International S.p.A. 0.009

Fiat-Revisione Interna e Ispettorato S.c.r.l. 0.093

Fiat S.p.A. 1.584

Fiat Servizi per l’Industria S.c.p.a. 1.048

FiatAvio S.p.A. 8.386

FiatSava S.p.A. 0.466

Fidis S.p.A. 0.373

Gesco Active S.p.A. 0.009

Global Value S.p.A. 0.009

H.R. Services S.p.A. 0.349

Impreinvest S.p.A. 0.047

Investimenti e Gestioni S.p.A. 0.186

Ingest Facility S.p.A. 0.466

IPI S.p.A. 0.009

Irisbus Italia S.p.A. 1.305

Iniziative Sviluppo Immobiliare-Isim S.p.A. 0.047

Isvor Dealernet S.r.l. 0.009

Isvor Fiat S.p.A. - Società di Sviluppo

e Addestramento Industriale 0.932

Itedi-Italiana Edizioni S.p.A. 0.047

Iveco Aifo S.p.A. 0.466

Iveco Mezzi Speciali S.p.A. 0.093

Iveco S.p.A. 9.318


Subsidiaries valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Koinet S.p.A. 0.048

Magneti Marelli After Market S.p.A. 0.373

Magneti Marelli Powertrain S.p.A. 1.659

Magneti Marelli Sistemi Elettronici S.p.A. 1.211

Magneti Marelli Sistemi di Scarico S.p.A. 0.476

Magneti Marelli Holding S.p.A. 0.186

Maserati S.p.A. 0.047

Midas Italia S.p.A. 0.098

Orione-Consorzio Industriale

per la Sicurezza e la Vigilanza 0.047

Pharos S.r.l. 0.047

Case New Holland Italia S.p.A. 0.186

New Holland Logistics S.p.A. 0.047

Palazzo Grassi S.p.A. 0.009

Servizi e Attività Doganali per l’Industria S.p.A. 0.186

Sava-Leasing Società per Azioni 0.186

Savarent S.p.A. 0.186

Società di Servizi Comprensoriali e di

Sviluppo Immobiliare-SE.CO.SV.IM. S.r.l. 0.186

Società Elettronica per l’Automazione S.p.A. 0.186

SGR Società per la Gestione dei Rischi S.p.A. 0.047

Sicca S.p.A. 0.466

Sisport Fiat Società per Azioni-SF 0.047

Sistemi Sospensioni S.p.A. 0.932

Teksid S.p.A. 2.795

Teleclient S.p.A. 0.098

Toro Assicurazioni S.p.A. 0.489

Transolver Finance S.p.A. 0.009

Vegaspazio S.p.A. 0.093

Fiat Common Investment Fund Limited London Great Britain 100 GBP 100.00 Fiat United Kingdom Limited 100.000

Fiat Finance Luxembourg S.A. Luxembourg Luxembourg 100,000 USD 100.00 Fiat Finance and Trade Ltd 99.000

Fiat Ge.Va. S.p.A. 1.000

Fiat Oriente S.A.E. in liq. Cairo Egypt 50,000 EGP 100.00 Fiat S.p.A. 100.000

Fiat Russia OOO Moscow Russia 18,509,050 RUR 100.00 Sicind S.p.A. 80.000

Fiat International S.p.A. 20.000

Fides Corretagens de Securos Ltda Belo Horizonte Brazil 365,526 BRL 100.00 Rimaco do Brasil Ltda. 100.000

Immobilier 92 SAS Paris France 38,115 EURO 100.00 Fiat France S.A. 100.000

Interit Investments S.A. in liq. Lugano Switzerland 50,000 CHF 100.00 BUC - Banca Unione di Credito 100.000

ISVOR DILTS Leadership Systems Inc. Burlingame United States 1,000 USD 44.91 Isvor Fiat S.p.A. - Società di Sviluppo e

Addestramento Industriale 51.000

Isvor Fiat India Private Ltd. New Delhi India 1,750,000 INR 88.07 Isvor Fiat S.p.A. - Società di Sviluppo e

Addestramento Industriale 100.000

Luganova S.A. Lugano Switzerland 3,000,000 CHF 100.00 BUC - Banca Unione di Credito 100.000

Luto Servizi S.A. Lugano Switzerland 100,000 CHF 100.00 BUC - Banca Unione di Credito 100.000

Mixerventinove S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

Mixerventisei S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

Mixerventisette S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

Mixerventotto S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 115

115


116

116

Subsidiaries valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

New Business Cinque S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

New Business Due S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

New Business Quattro S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

New Business Sei S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

New Business Tre S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

New Business Uno S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

Norfinance & Associes S.A. Geneva Switzerland 3,600,000 CHF 60.00 BUC - Banca Unione di Credito 60.000

Norfinance Gestion S.A. Lausanne Switzerland 281,000 CHF 39.08 Norfinance & Associes S.A. 65.125

Norfinance Gestion (Ticino) S.A. Mendrisio Switzerland 300,000 CHF 60.00 Norfinance & Associes S.A. 100.000

Nuove Iniziative Finanziarie S.r.l. Turin Italy 50,000 EURO 100.00 Società Italiana Commerciale Industriale-SICI S.p.A. 99.000

Sicind S.p.A. 1.000

Orione-Consorzio Industriale

per la Sicurezza e la Vigilanza Turin Italy 50,500,000 ITL 96.13 Fiat S.p.A. 82.000

Comau S.p.A. 1.000

Editrice La Stampa S.p.A. 2.000

Fiat Auto S.p.A. 2.000

Fiat Ge.Va. S.p.A. 1.000

FiatAvio S.p.A. 1.000

FiatSava S.p.A. 1.000

Isvor Fiat S.p.A. - Società di Sviluppo e

Addestramento Industriale 1.000

Iveco S.p.A. 1.000

Magneti Marelli Holding S.p.A. 1.000

Case New Holland Italia S.p.A. 1.000

Fiat Gesco S.p.A. 1.000

Palazzo Grassi S.p.A. 1.000

Sisport Fiat Società per Azioni-SF 1.000

Pikalin Investments S.A. in liq. Lugano Switzerland 50,000 CHF 100.00 BUC - Banca Unione di Credito 100.000

Rimaco do Brasil Ltda. Belo Horizonte Brazil 365,520 BRL 100.00 Rimaco S.A. 100.000

Sacafet in liq. Addis Ababa Ethiopia 2,000,000 ETB 100.00 Main (Mergers, Acquisitions

and Investments) Limited 100.000

Telexis do Brasil Ltda. Nova Lima Brazil 1,000 BRL 99.99 Fiat do Brasil S.A. 99.900

Sadi Brasil Ltda. 0.100


Associated companies valued by the equity method

% of

Group % of

consoli- Interest % interest voting

Name

❚ Automobiles

Registered office Country Capital stock Currency dation held by held rights

Dekra Italia S.r.l. Arese Italy 176,770 EURO 40.00 Targasys S.r.l. a S.U. 50.000

Fiat-GM Powertrain B.V. Amstelveen Netherlands 228,000 EURO 40.00 Fiat Auto Holdings B.V. 50.000

GM-Fiat Worldwide Purchasing B.V. Amstelveen Netherlands 300,000 EURO 40.00 Fiat Auto Holdings B.V. 50.000

Jiangsu Nanya Auto Co. Ltd. Nanjing People’s Rep. of China 29,840,000 USD 40.00 Fiat Auto S.p.A. 50.000

Jiangsu Nanya Gearbox Co. Ltd. Nanjing People’s Rep. of China 15,900,000 USD 40.00 Fiat Auto S.p.A. 50.000

Jiangsu Nanya Press Parts Co. Ltd. Nanjing People’s Rep. of China 12,000,000 USD 40.00 Fiat Auto S.p.A. 50.000

Jiangsu Parts Co. Ltd. Nanjing People’s Rep. of China 29,900,000 USD 40.00 Fiat Auto S.p.A. 50.000

Koc Fiat Kredi Tuketici Finansmani A.S. Istanbul Turkey 30,000,000,000,000 TRL 40.00 Fidis S.p.A. 49.980

Fiat Finance Netherlands B.V. 0.010

Fiat Finance S.A. 0.010

Società di Commercializzazione

e Distribuzione Ricambi S.p.A. Turin Italy 100,000 EURO 15.20 Fiat Auto S.p.A. 19.000

Société Europeenne de Vehicules Legers

du Nord-Sevelnord Société Anonyme Paris France 49,725,000 EURO 40.00 Fiat Auto S.p.A. 50.000

Società Europea Veicoli Leggeri-Sevel S.p.A. Atessa Italy 68,640,000 EURO 40.00 Fiat Auto S.p.A. 50.000

Somaca-Société Marocaine

Construction Automobiles S.A. Casablanca Morocco 30,000,000 MAD 16.00 Fiat Auto S.p.A. 20.000

Targa Trafficmaster S.p.A. Turin Italy 2,000,000 EURO 40.00 Targasys S.r.l. a S.U. 50.000

Tofas-Turk Otomobil Fabrikasi Tofas A.S. Levent Turkey 170,412,875,000,000 TRL 30.28 Fiat Auto S.p.A. 37.856

❚ Agricultural and Construction Equipment

AG-Chem / New Holland LLC Wilmington United States 1,000 USD 42.28 New Holland North America Inc. 50.000

Al-Ghazi Tractors Ltd Karachi Pakistan 100,000,000 PKR 36.51 CNH Global N.V. 43.170

Casady Brothers Implement Inc. Wilmington United States 550,000 USD 38.44 New Holland North America Inc. 45.455

Case Credit Europe S.A.S. Paris France 200,000,000 FRF 42.28 Case Credit Corporation 50.000

Consolidated Diesel Company Whitakers United States 100 USD 42.28 CNH Engine Corporation 50.000

Employers Health Initiatives LLC Wilmington United States 790,000 USD 42.28 New Holland North America Inc. 50.000

GQM Products LLC Wilmington United States 12,000,000 USD 42.28 Case Corporation 50.000

LBX Company LLC Wilmington United States 41,000,000 USD 42.28 Case LBX Holdings Inc. 50.000

L&T Case Equipment Limited Mumbai India 180,100,000 INR 42.28 Case Mauritius US Limited 50.000

Megavolt L.P. L.L.L.P. Wilmington United States 500,000 USD 33.83 Case Corporation 40.000

New Holland de Mexico SA de CV Queretaro Mexico 24,000,000 MXN 42.28 CNH Global N.V. 50.000

New Holland Finance Ltd Basingstoke Great Britain 2,900,000 GBP 41.44 CNH Global N.V. 49.000

New Holland HFT Japan Inc. Sapporo Japan 240,000,000 JPY 42.28 New Holland North America Inc. 50.000

New Holland Trakmak Traktor A.S. Ankara Turkey 525,000,000,000 TRL 31.71 CNH Global N.V. 37.500

Rathell Farm Equipment Company Inc. Wilmington United States 640,000 USD 36.59 New Holland North America Inc. 43.266

Sip-Mot S.A. Zamosc Poland 4,000,000 PLN 18.51 New Holland Bizon Sp. z o.o. 21.890

Turk Traktor Ve Ziraat Makineleri A.S. Ankara Turkey 12,000,000,000,000 TRL 31.71 CNH Global N.V. 37.500

❚ Commercial Vehicles

Altra S.p.A. Genoa Italy 516,400 EURO 33.34 IrisBus Italia S.p.A. 66.670

Auto Distribucion Illiberis S.A. Peligros Spain 2,773,400 EURO 49.00 Iveco Pegaso S.L. 49.000

GEIE V.IV.RE Paris France 0 FRF 50.00 Iveco S.p.A. 50.000

Haveco Automotive Transmission Co. Ltd. Zhajiang People’s Rep. of China 200,010,000 CNY 33.33 Iveco S.p.A. 33.333

Iveco Uralaz Ltd. Miass Russia 65,255,056 RUR 33.33 Iveco S.p.A. 33.330

Machen-Iveco Holding S.A. Luxembourg Luxembourg 26,000,000 GBP 30.00 Iveco S.p.A. 30.000

Otoyol Pazarlama A.S. Kartal/Istanbul Turkey 1,410,000,000,000 TRL 27.00 Iveco S.p.A. 27.000

Otoyol Sanayi A.S. Kartal/Istanbul Turkey 8,000,000,000,000 TRL 27.00 Iveco S.p.A. 27.000

V.IVE.RE Gruppo Europeo di Interesse Economico Turin Italy 0 ITL 50.00 Iveco S.p.A. 50.000

❚ Metallurgical Products

Cevher Dokum Sanay A.S. Izmir Turkey 4,000,000,000,000 TRL 19.95 Teksid S.p.A. 30.000

Hua Dong Teksid Automotive Foundry Co. Ltd. Zhenjiang-Jangsu People’s Rep. of China 306,688,237 CNY 33.25 Teksid S.p.A. 50.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 117

117


118

118

Associated companies valued by the equity method (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Nanjing Teksid Aluminum Foundry Co. Ltd. Nanjing People’s Rep. of China 73,380,300 CNY 33.25 Teksid S.p.A. 50.000

Nanjing Teksid Iron Foundry Co. Ltd. Nanjing People’s Rep. of China 199,617,600 CNY 33.25 Teksid S.p.A. 50.000

❚ Components

Mako Elektrik Sanay Ve Ticaret A.S. Balmuncu-Istanbul Turkey 1,500,000,000,000 TRL 42.99 Magneti Marelli Holding S.p.A. 43.000

❚ Production Systems

Gonzales Production Systems Inc. Madison Heights United States 10,000 USD 49.00 Comau Pico Holdings Corporation 49.000

G.P. Properties I L.L.C. Madison Heights United States 10,000 USD 49.00 Comau Pico Holdings Corporation 49.000

❚ Aviation

Italenergia S.p.A. Turin Italy 906,520,000 EURO 20.96 FiatAvio S.p.A. 20.959 25.057

❚ Publishing and Communications

E.D.M. S.r.l. F.Ponte Felcino Italy 21,930,000 EURO 41.40 Editrice La Stampa S.p.A. 41.400

Editalia S.r.l. Caserta Italy 2,868,918 EURO 45.00 Editrice La Stampa S.p.A. 45.000

Editoriale Corriere Romagna S.r.l. Forlì Italy 2,856,000 EURO 40.00 Editrice La Stampa S.p.A. 40.000

Edizioni Dost S.r.l. Bologna Italy 1,042,914 EURO 40.00 Editrice La Stampa S.p.A. 40.000

Satiz S.r.l. Turin Italy 4,000,000 EURO 25.00 Itedi-Italiana Edizioni S.p.A. 25.000

Società Editrice Mercantile S.r.l. Genoa Italy 4,247,000 EURO 40.00 Editrice La Stampa S.p.A. 40.000

❚ Insurance

Attività Promozioni Immobiliari-A.P.IMM. S.p.A. Turin Italy 255,000 EURO 49.00 Toro Assicurazioni S.p.A. 49.000

Banca di Roma S.p.A. Rome Italy 1,374,080,000 EURO 10.57 Toro Assicurazioni S.p.A. 10.571

❚ Services

Atlanet S.p.A. Rome Italy 120,571,516 EURO 29.90 Business Solutions S.p.A. 29.900

Fiumicello S.r.l. Turin Italy 114,400 EURO 13.19 IPI S.p.A. 20.000

Global Value Services S.p.A. Turin Italy 10,000,000 EURO 50.00 ITS Information Technology Services S.r.l. 50.000

Global Value Solutions S.p.A. Turin Italy 1,000,000 EURO 50.00 Fiat G.S.A.-Gestione Software Applicativi S.r.l. 50.000

Immobiliare Novoli S.p.A. Florence Italy 20,640,000 EURO 40.00 Investimenti e Gestioni S.p.A. 40.000

Italenergia S.p.A. Turin Italy 906,520,000 EURO 17.65 Business Solutions S.p.A. 17.654 21.106

Iupiter S.r.l. Milan Italy 7,700,000 EURO 13.19 IPI S.p.A. 20.000

Marina Cala dé Medici Circolo Nautico S.p.A. Ospedaletto Italy 516,000 EURO 30.00 Investimenti e Gestioni S.p.A. 30.000

Rubattino 87 S.r.l. Milan Italy 10,845,400 EURO 30.59 Investimenti e Gestioni S.p.A. 30.589

Sinport Sinergie Portuali S.p.A. Genoa Voltri Italy 40,800,000 EURO 24.25 Business Solutions S.p.A. 24.250

❚ Miscellaneous and Holding companies

CIAOHOLDING N.V. Amstelveen Netherlands 29,200,000 EURO 50.00 Fiat Netherlands Holding N.V. 50.000

Euro Capitale Structures Limited (ECS) Dublin Ireland 125,000 EURO 48.00 Fiat Geva Europe Ltd. 48.000

Europ Assistance Holding S.A. Paris France 13,440,000 EURO 40.00 Fiat Netherlands Holding N.V. 39.999

Holding di Partecipazioni Industriali S.p.A. Milan Italy 760,559,800 EURO 9.98 Sicind S.p.A. 9.816 10.210

Toro Assicurazioni S.p.A. 0.115 0.119

Nuova Tirrena S.p.A. 0.032 0.033

Roma Vita S.p.A. 0.024 0.025

Lloyd Italico Assicurazioni S.p.A. 0.006 0.006

Lloyd Italico Vita S.p.A. 0.002 0.002

Lingotto S.p.A. Turin Italy 240,000,000,000 ITL 30.93 Toro Assicurazioni S.p.A. 15.646

Sicind S.p.A. 12.793

Lingotto S.p.A. 8.068 0.000

Livingstone Motor Assemblers Ltd. Livingstone Zambia 20,000,000 ZMK 20.00 Fiat Auto Partecipazioni S.p.A. 20.000

Viasat S.p.A. Rome Italy 2,425,956 EURO 49.99 Magneti Marelli Holding S.p.A. 50.000


Associated companies valued at cost

% of

Group % of

consoli- Interest % interest voting

Name

❚ Automobiles

Registered office Country Capital stock Currency dation held by held rights

Car City Club S.r.l. Turin Italy 110,000 EURO 26.40 Savarent S.p.A. 33.000

Consorzio delle Dennie None Italy 7,000,000 ITL 22.85 Fiat Auto S.p.A. 28.571

Consorzio per la Reindustrializzazione

dell’area di Arese S.c. a r.l. Arese Italy 2,000,000,000 ITL 24.00 Fiat Auto S.p.A. 30.000

Fabrica de Motores-Fademotor C.A. Barcelona Venezuela 1,000,000 VEB 39.20 Fiat Automoviles Venezuela C.A. 49.000

Fabrication Automobiles de Tiaret SpA Wilaya de Tiaret Algeria 1,225,000,000 DZD 29.25 Fiat Auto S.p.A. 36.571

G.E.I.E. Gisevel Paris France 100,000 FRF 40.00 Fiat Auto (France) S.A. 50.000

G.E.I.E.-Sevelind Paris France 100,000 FRF 40.00 Fiat Auto (France) S.A. 50.000

N. Technology S.p.A. Chivasso Italy 1,500,000 EURO 16.00 Fiat Auto S.p.A. 20.000

❚ Agricultural and Construction Equipment

Brahma Steyr Tractors Limited Chandigarh India 32,000,000 INR 30.21 Case Steyr Landmaschinentechnik GmbH 35.719

❚ Commercial Vehicles

Afin Leasing A.G. Vienna Austria 1,500,000 EURO 40.00 Iveco N.V. 40.000

Atlas Vehicules Industriels S.A. Casablanca Morocco 19,700,000 MAD 48.99 Iveco N.V. 48.984

Iveco S.p.A. 0.001

CBC-Iveco Ltd. Changzhou People’s Rep. of China 664,000,000 CNY 50.00 Iveco S.p.A. 37.500

Iveco N.V. 12.500

Consorzio Iveco Fiat-Oto Melara Rome Italy 100,000,000 ITL 50.00 Iveco S.p.A. 50.000

Elettronica Trasporti Commerciali S.r.l. (Eltrac S.r.l.) Turin Italy 109,200 EURO 50.00 Iveco S.p.A. 50.000

Fiat OM-Carrelli Elevatori S.p.A Lainate Italy 20,000,000 EURO 25.00 Iveco S.p.A. 25.000

Gestrans S.A. Suresnes France 45,730 EURO 50.00 Irisbus France S.A. 100.000

IkarusBus Trejd KFT Moscow Russia 20,000 USD 47.50 Ikarusbus Jamugyarto RT 100.000

Irisbus North America Limited Liability Company Dover United States 20,000 USD 50.00 Irisbus France S.A. 100.000

Sotra S.A. Abidijan Ivory Coast 3,000,000,000 XAF 19.90 Irisbus France S.A. 39.800

Zastava-Kamioni D.O.O. Kragujevac Yugoslavia 1,234,433,600 YUM 46.50 Iveco S.p.A. 46.500

❚ Metallurgical Products

S.A.S.-Società Assofond Servizi S.r.l. Trezzano sul Naviglio Italy 520,000 EURO 13.30 Teksid S.p.A. 20.000

❚ Components

Flexider S.p.A. Turin Italy 8,000,000,000 ITL 25.00 Magneti Marelli Holding S.p.A. 25.000

Gulf Carosserie India Limited Worli India 5,000,000 INR 20.00 Magneti Marelli Holding S.p.A. 20.000

Johnson Matthey Argentina S.A. Buenos Aires Argentina 8,420,000 ARS 30.00 Magneti Marelli Components B.V. 30.000

Mars Seal Private Limited Mumbai India 400,000 INR 23.97 Magneti Marelli France S.A. 24.000

Matay Otomotiv Yan Sanay Ve Ticaret A.S. Istanbul Turkey 855,000,000,000 TRL 28.00 Magneti Marelli Holding S.p.A. 28.000

M.I.P.-Master Imprese Politecnico Milan Italy 40,000,000 ITL 49.99 Magneti Marelli Holding S.p.A. 50.000

Parades GEIE Milan Italy 216,900 EURO 33.33 Magneti Marelli Powertrain S.p.A. 33.330

Trust Plastron S.r.l. Turin Italy 530,000,000 ITL 33.00 Magneti Marelli Holding S.p.A. 33.000

❚ Production Systems

Consorzio Generazione Forme-CO.GE.F. S.Mauro Torinese Italy 30,000,000 ITL 33.33 Comau S.p.A. 33.333

Consorzio Fermag Rome Italy 280,000,000 ITL 40.00 Comau S.p.A. 40.000

Mixerotto S.r.l. Turin Italy 25,000 EURO 30.00 Comau S.p.A. 30.000

❚ Aviation

Atla S.r.l. Chieri Italy 500,000 EURO 30.00 FiatAvio S.p.A. 30.000

Consaer Pozzuoli Italy 213,200 EURO 24.39 FiatAvio S.p.A. 24.390

Consorzio Italmissile Rome Italy 77,469 EURO 33.33 FiatAvio S.p.A. 33.333

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 119

119


120

120

Associated companies valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

Consorzio Oto-BPD in liq. Aulla Italy 103,291 EURO 50.00 FiatAvio S.p.A. 50.000

Consorzio Promav in liq. Portoscuso Italy 77,746 EURO 33.33 FiatAvio S.p.A. 33.333

Consorzio Riva-Sepa Turin Italy 10,329 EURO 50.00 FiatAvio S.p.A. 50.000

Consorzio Sagat Pomezia Italy 20,000,000 ITL 25.00 FiatAvio S.p.A. 25.000

Consorzio Servizi Acqua Potabile Colleferro Italy 100 ITL 41.00 FiatAvio S.p.A. 36.000

Società di Servizi Comprensoriali e

di Sviluppo Immobiliare-SE.CO.SV.IM. S.r.l. 5.000

Consorzio Servizi Colleferro Colleferro Italy 0 ITL 30.00 FiatAvio S.p.A. 20.000

Società di Servizi Comprensoriali e

di Sviluppo Immobiliare-SE.CO.SV.IM. S.r.l. 10.000

Consorzio Sitab Rome Italy 50,000,000 ITL 20.00 FiatAvio S.p.A. 20.000

Eurojet Turbo GmbH Munich Germany 2,000,000 DEM 21.00 FiatAvio S.p.A. 21.000

Isi GEIE Turin Italy 0 ITL 50.00 FiatAvio S.p.A. 50.000

Turbo-Union Limited Bristol Great Britain 1,008 GBP 20.04 FiatAvio S.p.A. 20.040

❚ Publishing and Communications

Centro Com. S.r.l. Turin Italy 25,000 EURO 50.00 Editrice La Stampa S.p.A. 50.000

❚ Services

C.I.S.A. Consorzio per Impiantistica

e Servizi Aerospaziali Naples Italy 103,291 EURO 34.00 Fiat Engineering S.p.A. 34.000

Coberga S.c. a r.l. in liq. Imola Italy 20,000,000 ITL 37.50 Fiat Engineering S.p.A. 37.500

Consorzio Brescia Val Sesto S. Giovanni Italy 25,000 EURO 30.00 Fiat Engineering S.p.A. 30.000

Consorzio CO.RI.R.E. Brindisi Italy 100,000,000 ITL 20.00 Fiat Engineering S.p.A. 20.000

Consorzio Metroval-Brescia in liq. Milan Italy 50,000,000 ITL 25.50 Transfima-Trasporti Fiat - Matra S.p.A. 50.000

Consorzio Parco Industriale Villastellone Villastellone Italy 100,000,000 ITL 21.50 Investimenti e Gestioni S.p.A. 21.500

Consorzio per il Barocco in liq. Palermo Italy 300,000,000 ITL 24.50 Fiat Engineering S.p.A. 24.500

Feic-Consorzio Imprese Lavori FFSS di Saline Misterbianco Italy 30,000,000 ITL 33.33 Fiat Engineering S.p.A. 33.333

Finanziaria Sistemi Trasporto S.r.l. in liq. Mestre Italy 45,000,000 ITL 33.33 Fiat Engineering S.p.A. 33.333

Motorcity Park S.r.l. Milan Italy 2,098,880 EURO 40.00 Investimenti e Gestioni S.p.A. 40.000

M.S. Gestioni S.r.l. Turin Italy 25,000 EURO 32.32 IPI S.p.A. 49.000

Niugarit.Promocao e Desenvolvimiento de Actividades

Industriais em Cooperacao Ltd Lisbon Portugal 10,000,000 PTE 29.97 Fast-Buyer S.p.A. 30.000

Parco Grande S.c.r.l. Turin Italy 10,000 EURO 50.00 Fiat Engineering S.p.A. 50.000

Ravizza S.c.r.l. Turin Italy 10,000 EURO 50.00 Fiat Engineering S.p.A. 50.000

S.I.NO.DO. Sistema Informativo Normativa Doganale Turin Italy 150,000,000 ITL 50.00 Servizi e Attività Doganali per l’Industria S.p.A. 50.000

Servizio Titoli S.r.l. Turin Italy 105,000 EURO 27.24 Business Solutions S.p.A. 27.238

Società Consortile a Responsabilità

Limitata Nova Vetera S.c.r.l. in liq. Turin Italy 40,800 EURO 25.00 Fiat Engineering S.p.A. 25.000

Uffici Finanziari 2000 S.c.r.l. Turin Italy 10,200 EURO 40.00 Fiat Engineering S.p.A. 40.000

❚ Miscellaneous and Holding companies

Acomarit Holdings Ltd. Hamilton Bermuda 12,000 USD 22.68 BUC - Banca Unione di Credito 22.675

Agenzia Internazionalizzazione Imprese Torino S.r.l. Turin Italy 200,000,000 ITL 35.00 Sicind S.p.A. 35.000

Alcmena S.a.r.l. Luxembourg Luxembourg 5,000,000 EURO 20.00 BUC - Banca Unione di Credito 20.000

Ciosa S.p.A. in liq. Milan Italy 1,000,000 ITL 25.00 Sicind S.p.A. 25.000

CONFORM - Consorzio Formazione Manageriale Avellino Italy 100,000,000 ITL 43.53 Isvor Fiat S.p.A. - Società di Sviluppo e

Addestramento Industriale 33.000

Isvor Knowledge System S.p.A. 15.000

Consorzio Parco Industriale di Chivasso Chivasso Italy 100,000,000 ITL 34.42 Fiat Auto Partecipazioni S.p.A. 30.900

Fiat Auto S.p.A. 4.400

Expo 2000 - S.p.A. Turin Italy 11,449,704,000 ITL 24.50 Sicind S.p.A. 24.498


Associated companies valued at cost (continued)

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

FMA-Consultoria e Negocios Ltda São Paulo Brazil 1 BRL 50.00 Fiat do Brasil S.A. 50.000

Giraglia Immobiliare S.p.A. Milan Italy 3,500,000 EURO 24.18 Sicind S.p.A. 24.181

Interfinanziaria S.A. Lugano-Paradiso Switzerland 1,000,000 CHF 33.33 IHF-Internazionale Holding Fiat S.A. 33.330

Italimpianti S.p.A. Milan Italy 10,400,000,000 ITL 41.76 Sicind S.p.A. 41.760

Italpark-Società per Infrastrutture

Ausiliarie di Trasporti S.p.A. in liq. Rome Italy 480,000,000 ITL 29.00 Sicind S.p.A. 29.000

Le Monde Presse S.A. Paris France 40,240,000 FRF 27.28 La Stampa Europe SAS 27.277

MB Venture Capital Fund I N.V. Amsterdam Netherlands 50,000 EURO 45.00 Sicind S.p.A. 45.000

Nuova Didactica S.c. a r.l. Modena Italy 220,000,000 ITL 25.11 Ferrari S.p.A. 16.364

Case New Holland Italia S.p.A. 12.273

QSF Qualità Servizi Formazione GEIE Turin Italy 20,000,000 ITL 22.02 Isvor Fiat S.p.A. - Società di Sviluppo e

Addestramento Industriale 25.000

Tecnologie per il Calcolo Numerico-

Centro Superiore di Formazione S.c. a r.l. Trento Italy 100,000 EURO 22.36 C.R.F. Società Consortile per Azioni 25.000

Zetesis S.p.A. Milan Italy 400,000 EURO 40.00 Sicind S.p.A. 40.000

Annex to the Notes to the Consolidated Financial Statements – The Companies of the Fiat Group 121

121


122

122

Other companies valued at cost

% of

Group % of

consoli- Interest % interest voting

Name Registered office Country Capital stock Currency dation held by held rights

❚ Agricultural and Construction Equipment

Lubelska Fabryka Maszyn Rolnicych S.A. Lublin Poland 13,000,000 PLN 15.61 New Holland Bizon Sp. zo.o. 18.460

Plast-Form Sp. z o.o. Lublin Poland 3,400,000 PLN 12.44 New Holland Bizon Sp. zo.o. 14.705

Polagris S.A. Pikieliszki Lithuania 800,040 LTL 9.35 New Holland Bizon Sp. zo.o. 11.054

❚ Commercial Vehicles

Consorzio Bolzano Energia Bolzano Italy 12,000 EURO 16.67 Iveco S.p.A. 16.667

Consorzio Spike Genoa Italy 90,380 EURO 15.00 Iveco S.p.A. 15.000

Trucks & Bus Company Tajoura Libya 87,000,000 LYD 17.24 Iveco S.p.A. 17.241

Wohnungsverein Ulm A.G. Ulm Germany 1,000,000 DEM 13.60 Iveco Magirus AG 13.600

Zona Franca Alari Sepauto S.A. Barcelona Spain 520,560 EURO 10.37 Iveco Pegaso S.L. 10.373

❚ Metallurgical Products

Infun For S.p.A. Rovigo Italy 6,037,000 EURO 11.41 Teksid S.p.A. 17.163

❚ Components

Consorzio U.L.I.S.S.E. Rome Italy 440,000,000 ITL 11.36 Magneti Marelli Holding S.p.A. 11.360

❚ Aviation

Consorzio Sorore Siena Italy 18,000,000 ITL 16.67 Società Elettronica per l’Automazione S.p.A. 16.667

❚ Insurance

S.C.I. Le Hameau du Golf Paris France 3,040 EURO 14.92 Le Continent IARD S.A. 15.000

❚ Services

Byte Software House - S.p.A. Turin Italy 4,215,000 EURO 17.79 Business Solutions S.p.A. 17.794

Consorzio Alta Velocità Torino Milano C.A.V.TO.MI. Turin Italy 500,000,000 ITL 16.00 Fiat Engineering S.p.A. 16.000

Inmobiliaria Urbanitas SL Madrid Spain 600,000 EURO 9.89 IPI S.p.A. 15.000

We-Cube.Com S.p.A. Turin Italy 666,668 EURO 12.50 Business Solutions S.p.A. 12.500

❚ Miscellaneous and Holding companies

Isvor Fiat S.p.A. - Società di Sviluppo e

Ascai Servizi S.r.l. Rome Italy 122,000,000 ITL 14.44 Addestramento Industriale 16.400

Charta Net S.r.l. Collecchio Italy 1,040,000 EURO 15.00 CiaoWeb Portal S.p.A. 15.000

Consorzio Lingotto Turin Italy 10,000,000 ITL 17.70 Investimenti e Gestioni S.p.A. 12.300

Fiat S.p.A. 5.400

CRIT-Centro di Ricerca e

Innovazione Tecnologica S.r.l. Vignola Italy 70,000 EURO 12.47 Ferrari S.p.A. 7.143

Case New Holland Italia S.p.A. 7.143

Ercole Marelli e C. S.p.A. Milan Italy 18,525,000,000 ITL 13.00 Sicind S.p.A. 13.000

Euromedia Luxembourg One S.A. Luxembourg Luxembourg 52,500,000 USD 14.29 Fiat Netherlands Holding N.V. 14.286

Fin.Priv. S.r.l. Milan Italy 20,000 EURO 12.50 Fiat S.p.A. 12.500

Gerbi & Fase S.p.A. Turin Italy 3,000,000 EURO 14.00 BUC - Banca Unione di Credito 14.000

I.M. Intermetro S.p.A. Rome Italy 4,770,000,000 ITL 12.50 Sicind S.p.A. 12.500

IRCC-Istituto per la Ricerca e la

Cura del Cancro-Torino S.p.A. Turin Italy 15,500,000 EURO 19.35 Fiat S.p.A. 19.354

Istituto Europeo di Oncologia S.r.l. Milan Italy 82,500,000 EURO 12.75 Fiat S.p.A. 12.746

Kish Receivables Company Dublin Ireland 123,451,123 EURO 1.48 Celt Receivables Limited 1.480 16.037

Selvi & Cie S.A. Geneva Switzerland 2,400,000 CHF 16.67 BUC - Banca Unione di Credito 16.666

Société Anonyme pour le Developpement

Immobilier de Monaco-Sadim in liq. Monaco Princ.of Monaco 5,000,000 FRF 12.60 Sicind S.p.A. 12.600

Société Anonyme Technique Immobilière

et Financière de la Sadim (S.A.T.I.F.) Monaco Princ.of Monaco 5,000,000 FRF 12.60 Sicind S.p.A. 12.600


Report of the Independent Auditors on the Consolidated Financial Statements

Pursuant to art. 156 of Legislative Decree no. 58 of February 24, 1998

To the Stockholders of Fiat S.p.A.:

1.We have audited the consolidated financial statements

of Fiat S.p.A. and subsidiaries as of and for the year

ended December 31, 2001. These consolidated financial

statements are the responsibility of the Company's

Directors. Our responsibility is to express an opinion on

these consolidated financial statements based on our audit.

2.We conducted our audit in accordance with generally

accepted auditing standards in Italy as recommended by

the Italian Regulatory Commission for Companies and the

Stock Exchange (“Consob”). Those Standards require that

we plan and perform the audit to obtain reasonable

assurance about whether the consolidated financial

statements are free of material misstatement and are, as a

whole, reliable. An audit includes examining, on a test basis,

evidence supporting the amounts and disclosures in the

financial statements. An audit also includes assessing the

adequacy and the fairness of the accounting principles

used and the reasonableness of the estimates made

by the Directors. We believe that our audit provides

a reasonable basis for our opinion.

The financial statements of certain subsidiaries and affiliates,

principally in the Components and Insurance sectors, which

statements reflect total assets representing 22% of

consolidated total assets and revenues representing 13% of

consolidated revenues, have been audited by other auditors

who have provided us their reports thereon. Our opinion

expressed herein, insofar as it relates to the amounts

included in the consolidated financial statements for those

subsidiaries and affiliates, is based also on the audits

performed by other auditors.

For the opinion on the prior year's consolidated financial

statements, which are presented for comparative purposes

as required by law, reference should be made to our

auditors' report dated April 5, 2001.

3.In our opinion, the consolidated financial statements of

Fiat S.p.A. and subsidiaries as of and for the year ended

December 31, 2001 comply with the Italian statutory

provisions governing the criteria for their preparation;

accordingly, they give a true and fair view of the financial

position and results of operations of the Company and

its subsidiaries.

Turin, Italy

April 9, 2002

Arthur Andersen SpA

Colin Johnston - Partner

This report and the consolidated financial statements have

been translated into English from the original version in Italian.

They have been prepared in accordance with the Italian law

related to financial statements. Certain accounting practices

applied by the Company that conform with generally accepted

accounting principles in Italy, may not conform with generally

accepted accounting principles in other countries.

123

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124

Report of the Independent Auditors on the Financial Statements

Pursuant to art. 156 of Legislative Decree no. 58 of February 24, 1998

To the Stockholders of Fiat S.p.A.:

1.We have audited the financial statements of Fiat S.p.A.

as of and for the year ended December 31, 2001. These

financial statements are the responsibility of the Company's

Directors. Our responsibility is to express an opinion on

these financial statements based on our audit.

2.We conducted our audit in accordance with generally

accepted auditing standards in Italy as recommended by

the Italian Regulatory Commission for Companies and the

Stock Exchange (“Consob”). Those Standards require that

we plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free of

material misstatement and are, as a whole, reliable. An audit

includes examining, on a test basis, evidence supporting the

amounts and disclosures in the financial statements. An

audit also includes assessing the adequacy and the fairness

of the accounting principles used and the reasonableness

of the estimates made by the Directors. We believe that

our audit provides a reasonable basis for our opinion.

The financial statements of certain indirectly-held investments

in subsidiaries and affiliates, principally in the Components

and Insurance sectors, which statements reflect total assets

representing 22% of consolidated total assets and revenues

representing 13% of consolidated revenues, have been

audited by other auditors who have provided us their reports

thereon. Our opinion expressed herein, insofar as it relates

to the valuation of the investments recorded in the statutory

financial statements, is therefore based also on the audits

performed by other auditors.

For the opinion on the prior year's financial statements,

which are presented for comparative purposes as required

by law, reference should be made to our auditors’ report

dated April 5, 2001.

3.In our opinion, the financial statements of Fiat S.p.A. as

of and for the year ended December 31, 2001 comply with

the Italian statutory provisions governing the criteria for their

preparation; accordingly, they give a true and fair view of

the Company’s financial position and results of operations.

Turin, Italy

April 9, 2002

Arthur Andersen SpA

Colin Johnston - Partner

This report and the financial statements have been translated

into English from the original version in Italian. They have been

prepared in accordance with the Italian law related to financial

statements. Certain accounting practices applied by the

Company that conform with generally accepted accounting

principles in Italy, may not conform with generally accepted

accounting principles in other countries.


Report of the Board of Statutory Auditors Pursuant to

Article 41 of Legislative Decree No. 127/1991

Dear Stockholders:

The consolidated financial statements of the Fiat S.p.A. Group

at December 31, 2001, including the balance sheet, statement

of operations and respective notes, which are being submitted

for your consideration, show net loss of 445 million euros.

They were communicated to us within the statutory deadlines,

together with the Report on Operations, and were prepared

in accordance with the method of presentation required under

Legislative Decree No. 127 of April 9, 1991.

The tests carried out by Arthur Andersen S.p.A., which

is responsible for the audit, have shown that the amounts

included in the financial statements are consistent with

the Parent Company’s accounting records, the statutory

and consolidated financial statements of its subsidiaries

and the official information provided by said subsidiaries.

The financial statements communicated by the subsidiaries

to the Parent Company for the purpose of compiling the

consolidated financial statements were prepared by the

respective management entities, reviewed by the entities

and/or individuals responsible for monitoring each individual

company, as required under the pertinent legal systems, and

audited by independent accountants, in accordance with

the procedure required for certification of the consolidated

financial statements. Consequently, the Board of Statutory

Auditors did not review these financial statements.

The determination of the scope of consolidation, the selection

of the principles used to consolidate investments in subsidiaries

and associated companies and the procedures used for that

purpose comply with the requirements of Legislative Decree

No. 127 of April 9, 1991. Therefore, the structure of the

consolidated financial statements is technically correct and

consistent overall with the pertinent legislation. In particular,

it also provides the information required by the Consob with

registered letter DAC/RM/97002477 of March 14, 1997

concerning companies whose securities are listed both

in Italy and in regulated markets in North America.

The Report on Operations presents fairly the results and

financial position, as well as the operations in 2001 and the

events that have occurred since the end of the fiscal year,

for the complex of companies subject of the consolidation

process. Based on our examination, this report is consistent

with the consolidated financial statements.

Turin, April 18, 2002

The Statutory Auditors

Cesare Ferrero

Giorgio Ferrino

Lamberto Jona Celesia

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126

Report of the Board of Statutory Auditors Pursuant to Article 153 of Legislative

Decree No. 58/1998, and Article 2429, Section 3, of the Italian Civil Code

Dear Stockholders:

Article 153 of Legislative Decree No. 58 of February 24,

1998 requires that the Board of Statutory Auditors report to

the Stockholders’ Meeting the results of its oversight activity,

indicating any omissions or improper transactions it discovered,

and empowers it to put forth motions regarding the financial

statements, their approval and other matters under its jurisdiction.

This Report is provided in accordance with the abovementioned

provision.

During the fiscal year just ended, we performed the duties

incumbent upon us under Article 149 of Legislative Decree

No. 58 of February 24, 1998, and are able to report specific

information on the subjects listed below.

We attended the meetings of the Board of Directors, where

we received detailed information on the Company’s operations

and on the main operating, financial and asset transactions

carried out by the Company and/or its subsidiaries. In this

area, we determined and ascertained that all pending or

completed transactions comply with all pertinent provisions

of the law or the Articles of Association, are not in conflict

with any resolution adopted by the Stockholders’ Meeting

or produce no potential conflicts of interest, and are

consistent with the principles of good management.

The Company’s organization is adequate, based on the

size of the Company. As part of our work, we met with the

Company officials who oversee its organization and with

representatives of the Independent Auditors, from whom

we obtained comprehensive information indicating that the

Company was complying with the principles of fair and

efficient administration.

The Board of Directors created an Audit Committee and a

Compensation Committee. In addition, a system of internal

control has been established at the Group level and is

operational at Fiat S.p.A. and its subsidiaries. We express a

favorable opinion on the Company’s system of internal control,

and on its ability to check the proper implementation of the

internal operating and administrative procedures adopted to

ensure that the Company is managed properly and efficiently,

while at the same time identifying, preventing or minimizing

financial and operating risks and the danger of fraud.

Based on our determinations and on the information garnered

in previous fiscal years, we further believe that the Company’s

administrative and accounting system is adequate for the

purpose of presenting fairly the results of operations.

The guidelines provided by Fiat S.p.A. to its subsidiaries

pursuant to Article 114, Section 2, of Legislative Decree

No. 58/98 also appear to be adequate.

The Board of Directors provided us with the Report on

Operations for the first half of 2001 within the statutory

deadline and published it within the deadlines and in

accordance with the formalities required by the Consob.

It also complied with statutory requirements concerning

the publication of quarterly reports.

With a letter dated June 25, 2001, the stockholder who had

written the two memoranda discussed in our Report on the

financial statements at December 31, 2000 indicated that he

was not satisfied with the written explanations that, as the

Chairman had promised, were provided to him in response to

the questions and doubts he had raised at the Stockholders’

Meeting of May 14, 2001. Subsequently, with a summons

served on September 27, 2001, the same stockholder contested

the approval of the financial statements at December 31,

2000. Fiat S.p.A. instituted the requisite legal action, which

is currently pending before the Courts.

With regard to the Consob Communications of February 20,

1997, March 2, 1998 and April 6, 2001, insofar as they apply

to our task, we can confirm the following:

❚ The information provided by the Board of Directors in its

Report on Operations is exhaustive and complete.

❚ As required by the Consolidated Law on Financial

Intermediation (Legislative Decree No. 58-98), the Board of

Statutory Auditors has been regularly informed on matters

falling under its jurisdiction.

❚ The regular checks and audits of the Company conducted

by us reveal no atypical or unusual transactions.

❚ With regard to intra-Group transactions, the Board of

Directors mentions in its Report on Operations that

numerous transactions involving the delivery of goods and

the provision of services took place among the Company,

the Group companies and/or related parties on standard

market terms, and explains these transactions.

❚ The Auditors’ report contains no objections or added

disclosures, nor does it set forth qualifications or

suggestions.

❚ As already mentioned above, the relevant components of

the Company’s organization are adequate for their purpose

and its administrative and accounting system is reliable in

providing a fair presentation of the results from operations.

❚ The system of internal control is adequate and effective

and, as explained in the Report on Operations, is carefully

monitored by the Audit Committee.

❚ During 2001, the Board of Directors met nine times.

We were present at all of these meetings. The Board of


Statutory Auditors met 16 times. The independent auditors

attended five of these meetings.

❚ The Board of Statutory Auditors received no complaints

under Article 2408 of the Italian Civil Code and, at this

point, is not aware of any memoranda sent to Fiat S.p.A.

❚ During the course of the year we issued the various

opinions that the Board of Statutory Auditors is required

to provide pursuant to law.

❚ The Company has complied promptly with the

recommendations of the Code of Conduct issued by

the Committee for the Corporate Governance of Listed

Companies and a member of the Board of Statutory

Auditors was present at all Audit Committee meetings.

❚ The auditing firm of Arthur Andersen S.p.A., which already

audits the Company’s statutory financial statements and

the consolidated financial statements, performs a limited

audit of the semiannual report and audits the Form 20-F,

was also asked to perform the assignments listed below,

for which it received the fees listed separately in each case.

– Analysis of the accounting treatment under Italian,

international and U.S. accounting principles of

extraordinary transactions carried out by Fiat S.p.A.

and its subsidiaries (fees totaling 129,000 euros).

– Preparatory analysis for the adoption of international

accounting principles (fees totaling 46,000 euros).

– Support in preparing the Fiat Group Annual Report at

December 31, 2000 in accordance with the requirements

of Form 20-F (fees totaling 17,000 euros).

– Audit of the costs incurred for the automotive engineering

degree program, as set forth in a report by the Permanent

Joint Committee (fees totaling 5.200 euros).

Based on direct checks and on the information received

from the Independent Auditors, we have verified that the

statutory financial statements, which show net income of

378,673,294 euros, have been prepared and presented

in accordance with the applicable provisions of the law.

Therefore, we recommend that you approve them, together

with the motion for allocation of net income submitted by

the Board of Directors.

The Board of Directors has also asked you to approve the

purchase of treasury shares, for the amounts and with the

procedures and deadlines set forth in the respective Report.

Insofar as it concerns matters under our jurisdiction, we certify

that the proposed transaction is consistent with the provisions

of the pertinent legislation.

Lastly, we remind you that at your next Ordinary Stockholders’

Meeting you will be required to appoint a new Board of Directors,

due to the expiration of the term of office of the Board you

last elected.

Turin, April 18, 2002

The Statutory Auditors

Cesare Ferrero

Giorgio Ferrino

Lamberto Jona Celesia

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127


The Fiat Group in 2001

Balance Sheets, Statements of Operations and Notes

Published by:

Euphon – Turin, Italy

Editorial Coordination:

Micrograf – Turin, Italy

Design by:

Fantinel & Associati – Turin, Italy

Printed by: Puntografico – Brescia, Italy

Printed in Italy

May 2002

01UK

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