annual report - FIAT SpA

COMPONENTS
Magneti Marelli
OPERATING PERFORMANCE
During 2010, there was a global recovery in Highlights
production volumes for passenger cars and light
commercial vehicles. In Europe, Magneti Marelli
benefited from growth in demand for light
(€ million)
Net revenues
2010
5,402
2009
4,528
commercial vehicles and recovery in the
medium-to-large passenger car segments, which
were particularly hard hit in 2009. By contrast, it
Trading profit/(loss)
Operating profit/(loss) (*)
98
73
25
(40)
was negatively impacted by the decline in the A Investments in tangible and intangible assets 383 356
and B segments following the phase-out of ecoincentives.
of which capitalized R&D costs 138 114
Magneti Marelli closed 2010 with revenues up Total R&D expenditure (**) 292 245
19.3% over 2009.
No. of employees at year end 34,269 31,628
During the year, the sector concluded several (*) Includes restructuring costs and other unusual income/(expense)
major agreements for the development of
innovative products in its core components
activities.
(**) Includes capitalized R&D and R&D charged directly to the income statement
In collaboration with the Harman Group, Magneti Marelli will provide the next generation infotainment system for a
major German client. The new system will combine Magneti Marelli's open platform with the expertise of its partner in
audio and high-end applications.
Magneti Marelli and Accenture signed a five-year partnership agreement for the design and development of in-vehicle
infotainment, telematics and embedded software projects. Accenture will contribute to developing and managing the
digital entertainment and communication solutions and services.
With the US company, ElectroJet, Magneti Marelli signed a partnership agreement for the production and sale of an
engine control system that provides a simple and cost-effective solution for application of electronic fuel injection on 2
and 3-wheel vehicles. This agreement is targeted at the Asian market for 2-wheel vehicles, which offers attractive
business potential for the sector.
With regard to the development of production activities, in early June the joint venture established by Magneti Marelli
and Shanghai Automobile Gear Works opened a new plant in Jiading (Shanghai) to produce hydraulic components for
approximately 300,000 Magneti Marelli Freechoice automated transmissions annually. In addition, a new plant began
production of suspension systems in the United States and another in Russia began production of lighting.
Finally, in Brazil, Magneti Marelli received recognition for its commitment to sustainability as a result of its excellent
performance in waste reduction (i.e., reduction in quantity and increase in percentage recycled).
All business lines recorded year-over-year improvements. Highlights of the operating performance of individual business
lines are provided below.
Lighting
Revenues totaled €1,586 million in 2010, an increase of approximately 30% over the prior year. The principal increase
in volumes was linked to a recovery in the medium-to-large segments of the European automotive market and primarily
impacted activities in Germany and the Czech Republic. Performance was also strong in the Asian markets and the
NAFTA region.
Innovation was centered around two key areas: reduced energy consumption, with the FINE-X (Future Integrated New
Efficient Xenon) and economic low-intensity light projects; and design flexibility, with the adoption of LED technology
also for headlights.
Numerous production launches during the year included headlights and tail lights for the Alfa Romeo Giulietta, in
addition to new platforms for Audi and Mercedes with headlights utilizing exclusively LED technology. Major new orders
included: headlights and tail lights for Peugeot, Mercedes and Volkswagen-Audi models and for the new Fiat Panda,
and headlights for BMW, Renault, Citroën and Chrysler.
Engine Control
Revenues for 2010 totaled €967 million, representing an increase of 14% over 2009, with growth concentrated in Brazil,
China, India and the United States.
Report on Operations Magneti Marelli 80