annual report - FIAT SpA

In terms of recognition, the new Iveco range attracted several awards again in 2010. One of the most prestigious was
“Utilitarie de l’Année 2010” awarded to the EcoDaily by the French weekly L’Argus de l’Automobile. In China, the light
segment Power Daily (produced by the joint venture Naveco) received special mention as “Recommended Vehicle for
Green Logistics” by Green China Magazine and the China Green Logistics Development Promotion Alliance for
optimum power coupled with low emissions and reduced consumption.
Also, on national innovation day at a ceremony attended by the President of the Italian Republic, Iveco received the
“Award of Awards”, established to promote and support the best in innovation and creativity from Italian companies,
universities, public entities, organizations and individuals.
SERVICES
For the Customer Services area performance was varied during the year. In the first half, there were clear signs of
recovery for maintenance and repair services (compared with particularly weak performance for the same period in
2009), driven by the increase in vehicle mileage in nearly all markets and regions. In the second half, although the
upward trend continued, performance was much more varied from market to market.
With regards to spare parts, renewed reliability of supply meant that the availability of spare parts was progressively
restored and service returned to pre-crisis levels.
The three-year investment plan aimed at increasing flexibility of the logistics infrastructure and processes continued on
course. A new automated system was installed at the central warehouse in Turin in 2010, which will increase the speed
and reliability of spare parts withdrawal.
The company's direct presence in Russia, established in 2008, has enabled it to respond rapidly to the recovery in the
local market.
In collaboration with the Chinese joint ventures, regular spare parts supply flows were set up to ensure service support for
Iveco vehicles exported to other markets. The logistics infrastructure and processes will be further enhanced during 2011.
In the area of Technical Assistance, activities in 2010 focused on the VOR Log, the new system for monitoring vehicles
being serviced across the network and minimizing vehicle downtime. This system, which is now operational throughout
Western Europe, involves the entire primary network and Customer Services activities directly to ensure maximum
attention and responsiveness to customer support. Customer Services also worked on developing a plan to enhance
the level of service provided throughout the Iveco network, focusing on various different aspects to achieve an overall
improvement in customer perception of Iveco quality. The plan was presented and put into operation at the beginning
of 2011. During 2010, new features were introduced to "OneCall" (the call management system supporting the
technical assistance provided by the network) to improve the level of service and increase customer satisfaction.
With the inauguration of its first Truck Station in Hanover, Iveco launched a new international initiative dedicated to the
world of heavy road transport. The Truck Stations are one-stop service points equipped to respond to all of a transport
operator’s needs in a single stop, guaranteeing 24 hour-a-day assistance for both vehicles and trailers.
Iveco offers financial services in Europe and also, through the financial services companies of Fiat Group
Automobiles, in Latin America, Poland and China.
Since 2005, activity in Western Europe has been managed by Iveco Finance Holdings Limited (IFHL), a joint venture with
Barclays Group in which Iveco holds a 49% stake (accounted for under the equity method). This joint venture supports the
sector’s European sales through dealer and end-customer financing in France, Germany, Italy and the United Kingdom.
In Spain, the activity is managed by Transolver Finance Est. Financiero de Credito S.A., a 50/50 joint venture with the
Santander Group (accounted for under the equity method). This company offers both dealer and end-customer
financing. Iveco also provides medium and long-term rental services in Spain through Transolver Service S.A., a
wholly-owned subsidiary (consolidated on a line-by-line basis).
In Switzerland, Austria and Eastern Europe the activity is run by captive financial services companies (consolidated on
a line-by-line basis).
In 2010, business was positively impacted by a modest economic recovery in Western Europe in the second half and
recovery, albeit tentative, in Eastern European markets. The economic climate also had an impact on the number of
new vehicles financed and on market penetration.
For fully-consolidated subsidiaries only, the number of new vehicles financed in 2010 rose to 1,325, compared with
1,118 for 2009, despite a drop in penetration rate to 27.7% (39.0% in 2009). The total number of vehicles financed in
2010 increased to 3,072 (2,776 in 2009).
Including the activities of Iveco Finance Holdings Ltd. and the Spanish joint ventures, there was a 4% decrease in the
number of new vehicles financed through the sector’s Financial Services activities (13,871 in 2010, 14,458 in 2009),
with a penetration rate of 20.4% (22.4% in 2009). The total number of vehicles financed, however, increased 2%
(23,038 in 2010, 22,637 in 2009), mainly due to used vehicles.
Report on Operations Iveco 91