annual report - FIAT SpA

Fiat Powertrain
OPERATING PERFORMANCE
Fiat Powertrain produces engines and
Highlights
transmissions for cars and light commercial (€ million) 2010 2009
vehicles (the Passenger & Commercial
Vehicles business line of the former FPT
Net revenues 4,211 3,372
Powertrain Technologies).
Trading profit/(loss) 140 104
During 2010, it acquired the remaining 50% Operating profit/(loss) (*) 172 77
of Fiat
(formerly
Powertrain Polska
Fiat-GM Powertrain
Sp.z.o.o.
Polska),
Investments in tangible and intangible assets 385 401
which has since been fully consolidated. of which capitalized R&D costs 53 36
Over the year, the sector experienced a Total R&D expenditure (**) 80 55
stabilization in sales volumes, with declines
resulting from the phaseout of ecoincentives
in several major European
markets offset by market growth in South
America.
No. of employees at year end 12,453
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
11,408
Fiat Powertrain reported €4,211 million in revenues, an increase of 24.9% over 2009 (+11.1% on a like-for-like basis).
Sales to customers external to the Fiat Group as well as to joint ventures represented 13% of total revenues (10% on a
comparable scope of operations and 8% for 2009).
A total of 2,347,000 engines (+2.5% on a like-for-like basis) and 2,233,000 transmissions (+1.1%) were sold during the
year. Sales of diesel engines to external customers accounted for approximately 9% of total sales volumes (7% in
2009).
At the beginning of October, FPT Powertrain Technologies received the prestigious international "Technobest 2010"
award for its innovative 2-cylinder TwinAir engine from Autobest magazine (selected by an independent panel of 15
trade journalists from 14 countries). The new 1.4 MultiAir Turbo was named “Best New Engine 2010”, one of the
prestigious “Engine of the Year” categories awarded by an international panel of 65 trade journalists from 32 countries.
The MultiAir technology was also recognized in the US, where it was named "Best of What’s New" 2010 by Popular
Science magazine for its innovative features.
INNOVATION AND PRODUCTS
In 2010, Fiat Powertrain continued to develop innovative powertrain systems (engines and transmissions combined) for
Fiat Group Automobiles.
For small gasoline engines, the principal focus was development of the new family of 2-cylinder engines, which led to
the production launch and initial application of the new 85 hp turbo-charged TwinAir that combines the revolutionary
MultiAir system with fluid-dynamic technology for optimized combustion. Lighter and smaller than a 4-cylinder having
the same performance characteristics, this new engine offers a significant reduction in CO2 emissions and was
launched on the Fiat 500 and Fiat 500C. The TwinAir family was further developed with application of the turbo version
on other A and B-segment models produced by Fiat Group Automobiles.
Development also continued on a naturally-aspirated version, which will feature the second generation of the electrohydraulic
valve management system, the MultiAir II. A CNG turbo application is also being developed for the TwinAir
family. The MultiAir II technology is also being developed for application on 16v Fire engines and will offer reduced
CO2 emissions without compromising performance.
Work also continued on the TwinAir and Fire engine families to further reduce consumption and emissions to meet the
new Euro 5+ and Euro 6 standards.
For the 8v Fire family, production began on the new Fire 1.0 Low Friction and 1.4 Evo2 Flexfuel in Latin America.
Application of the Start&Stop system on all Fire family engines was completed and the new CNG/gasoline 1.4 16v Fire
Turbo was launched on the new Doblò. Development of Euro 5 LPG versions of the 1.2 8v, 1.4 8v and 1.4 16v
(naturally-aspirated and turbo) Fire engines was completed and production launch is scheduled for 2011.
In March, the 1.8 235 hp direct injection turbo (the second engine in the B family) went into production for application
on the Alfa Romeo Giulietta. Further enhancements were also made to this engine family's injection and combustion
system to achieve Euro 6 emissions levels.
For diesel engines, Fiat Powertrain began supplying Fiat Group Automobiles with a new version of the eco-efficient 85
Report on Operations Fiat Powertrain 78