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NEWS RELEASE
HAPPY BIRTHDAY FIAT!
Fiat celebrates its 106th birthday today (11 July 2005) with the anniversary of the day in 1899 when Fiat or Fabbrica Italiana Automobili di Torino was founded in preparation for the launch of the company’s first car, the Fiat 4hp late the same year.
That first Fit was designed by Aristide Faccioli and was powered by a 600 cc flat two cylinder engine developing, as the name suggested, four horse power or 2.9 kW. With a top speed of 35 kmh, it carried four people in the rather unusual seat fashion of two seat facing each other.
Giovanni Agnelli founded a family dynasty that is still at the head of the company today with John Elkann as Vice Chairman of the company and Lappo Elkann, who is Brand Promotion Director for the automotive brands. Giovanni Agnelli established his position in the fledging company with his strategic vision for the company and was appointed as Managing Director in 1902. He was to guide the company towards its two main industrial directions, expanding production and diversifying into new markets.
By 1906 Fiat was not just producing cars, its product lines included trucks, buses, trams, marine engines and aircraft. This was also the year when the first Fiats arrived in Australia and in the following year production of Fiat cars started in the USA. In 1910 Fiat took to the race track, winning the Indianapolis 500 with a Fiat S76, the first of many, many victories for Fiat products.
Lingotto, the renowned Fiat factory that became the image of Italian mass production opened, in 1923. It was one of the first factories in Europe to put in place true mass production techniques and its roof top test track on which all new cars were tested, became world famous. In 1926 Fiat diversified into the media with the purchase of the influential La Stampa newspaper, starting Fiat expansion through all areas of the Italian economy. The next generation of the Agnelli family joined the company with Giovanni’s son, Edoardo, in 1927 as vice chairman.
1936 saw the launch of the car that became the symbol of the company, the Fiat 500 Topolino, at the time the world’s smallest production car. Built in Fiat’s new factory at Mirafiori, the 500 was the car that put Italy on the road. After the war, Fiat continued to build world famous small cars, with the Fiat 500 and 600, through to the Panda today.
But the Fiat Group is much more than small cars. Its car brands include Fiat, Alfa Romeo, Ferrari, Maserati and Lancia, with commercial vehicles covered by Fiat and Iveco. But cars and commercial vehicles are just part of the Fiat Group, with the group also including CNH (agricultural and construction equipment), Magneti Marelli (components) and Teksid (metallurgical products), and Comau (production systems), Business Solutions (services) and Itedi (publishing and communications).
At the beginning of 2005, Fiat announced the creation of Fiat Powertrain Technologies, a new industrial unit that will integrate the Groups’ innovation capabilities and expertise in engines and transmissions.
FIAT BUSINESS SECTORS
Fiat Auto
One of the pioneers of the car industry, Fiat built its first car in 1899. Since then it has produced approximately 87 million cars and light commercial vehicles and many of its models have marked important milestones in motoring history.
Fiat Auto operates in international markets underfour brands, all distinguished by their innovative content, style and manufacturing solutions: Fiat, known for its creativity, versatility and practicality; Lancia, which features an elite and exclusive line of models; Alfa Romeo, the combination of sportiness, technology and elegance in a unique design and Fiat Veicoli Commerciali Leggeri (Light Commercial Vehicles), a reference point for easier, more productive and gratifying working experiences.
To round out the range of products and services offered, Fiat Auto’s activities include sales financing and a broad array of support programs for customers and the dealer network.
Fiat Auto has plants in Italy, Poland, Brazil and Argentina. Manufacturing is also carried out through either joint ventures or licensing agreements in France, Turkey, Egypt, South Africa, India, China and Vietnam.
On eleven occasions Fiat Auto models have won the Car of the Year Award, the car industry’s most prestigious recognition worldwide. The award has been won eight times by Fiat, twice by Alfa Romeo and once by Lancia.
The continuous, strong thrust toward product renewal of the Fiat Auto brands calls for the launch of 29 vehicles, including new models and restyling, in the 2005-2007 period.
Ferrari
The first Ferrari was built in Maranello in 1947 at the company Enzo Ferrari had transferred from Modena five years earlier when it was given the name by which it is known today. It was the 125 Sport, a two-seater that would go on to win the Rome GP in 1947 and very soon went on to become a sophisticated grand tourer road car. The Company has come a long way since then. 1969 saw the acquisition of 50% of the Company's shares by the Fiat Group, whose interest in
Ferrari rose to 90% in 1988. In 2002, Mediobanca acquired a 34% interest in Ferrari and this interest was then divided among Commerzbank, Lehman Brothers, B.P. Emilia Romagna, Compagnie Monegasque de Banque.
Ferrari's mission, however, remained the same: to build unique sports cars destined to represent the excellency of Italian cars, whether on the road or on racing circuits. And in fact the legend continues. Suffice it to look at its successes on the circuits, where the Scuderia Ferrari in 2003 won its fourth Formula 1 Drivers’ Championship and its fifth Constructors' Championship in a row. Achievements reinforced by sales results and the vast number of fans that follow the races on circuits throughout the world.
Annual production is pitched at a self-imposed limit of about four thousand cars to ensure maximum quality. The workforce numbers just less than 3000, while the latest models are the 612 Scaglietti, the new 12-cylinder 2+2 that replaced the glorious 456M, the 575M Maranello, Ferrari's first 12-cylinder road car with a Formula 1 type gearbox; the Enzo, an expression of the cutting edge technology derived from Grand Prix events; the Challenge Stradale, an 8-cylinder, 425 bhp model, which lines up alongside the 360 Modena and Spider, and again is derived from experience on the racing circuit.
The Maranello and Modena plants have recently been the scene of a significant technological upgrade. So alongside the wind-tunnel designed by Renzo Piano in 1997, there is now one of the most modern, "worker-friendly" plants in the world, together with the thoroughly refurbished Maserati plant in Modena. Particularly noteworthy are the new structures dedicated to Machining Processes and Dies and the spectacular ProductDevelopmentCenter designed by Fuksas.
Maserati
Maserati is an all Italian brand with a glorious sporting history: since the very beginning it has been manufacturing fascinating and exclusive cars built in short production runs, outstanding in terms of prestige, technological innovation, styling and performance.
Between September 2001, on the occasion of the Frankfurt Motor Show and January 2002 at the Detroit Motor Show, Maserati presented the new Spider and Coupé models powered by 390 bhp 4200 cc V8 aspirated engines, an event that marked the brand's long-awaited return to the North American market after almost 12 years.
The 2003 Frankfurt Motor Show saw the debut of the Quattroporte equipped with a 400 bhp 4200 cc V8 power unit, a top-of-the-range saloon that combines the qualities of a prestige car with those of an authentic grand tourer.
Founded in Bologna in 1914, Maserati celebrates this year its 90th anniversary and returns to the racing circuits by taking part in the international GT FIA championship with the brand-new MC12.
CNH
The first Fiat brandedconstruction equipment product was manufacturedin 1919. CNH is one of the world’s leading manufacturer of agricultural tractors, combine harvesters, hay and forage equipment and grape harvesters and is among the leaders in the construction equipment business. CNH was formed in 1999 by the merger of two legendary brands: New Holland NV and Case Corporation.
CNH agricultural machinery is sold through the global brands Case IH and New Holland and through the regional brand Steyr. With one of the widest offering in the business, the agricultural brands of CNHmeet the various needs of its customers all over the world.
The construction equipment of CNH is sold through the Case, Kobelco, New Holland Construction and New Holland global brands and covers a wide range of products: backhoes, wheeled and crawler excavators, skid-steer loaders, wheeled loaders, graders,telescopic handlers and articulated trucks.
CNH pursues the continuous renewal of its product offering and can boast one of the “youngest” product ranges of the business in both the agricultural and the construction equipment field.
The models launched were very well received both by the farming community and richly rewarded by the industry. For example, the many awards won at the 2003 Agritechnica fair of Hannover: the Gold Medal to the New Holland CR combine for its innovative stone detection system and for the rotary technology; the "Machine of the Year" award to the New Holland TS-A series in the medium-to low hp tractor category; the "Machine of the Year" award in the Combine category to the Case IH AFX. Gold Medal awarded by the German German
Agricultural Society to the New Holland CR combine harvester. Awards followed in 2004 by the Gouden Aar for the TS-A Fast Steer system, or the Best of Specialised Award for the New Holland TNV75A, to mention just a few.
Iveco
Fiat's vocation for commercial vehicles goes back a long way: at the Milan International Exhibition in May 1901 the Company already presented two omnibuses and atrailer for firemen. Iveco was formed in 1975 by the merger of five leading European brands, and was joined by others over the years. Today Iveco is one of the world's leading companies in the road transport sector and one of the most important manufacturers of diesel engines for motor vehicle and industrial applications worldwide.
Iveco designs, manufactures and markets a wide range of light (2.8 - 6 tons GVW), medium (6 - 16 tons GVW) and heavy (above 16 tons GVW) commercial vehicles for on-road and off-road use. It also produces public transport vehicles,special purpose vehicles for defence and civil protection applications, engines and firefighting vehicles.
2003 got off to a good start when the Company won the Truck of the Year Award for its Stralis Active Space heavy truck and reached the goal of 20 thousand vehicles produced in only 24 months activity at Sete Lagoas in Brazil, Latin America's most modern commercial vehicle plant. In an effort to renew and expand its product range, the newStralis Active Day and Active Time heavyrange models were presented in April followed by the launch inMay of the new EuroCargo truck, a medium weight vehicle.
Iveco is also committed to the production of alternative-fuel vehicles. It can not only deploy a complete range of methane-powered engines, but it is already operating the prototype of a new hybrid bus produced by Irisbus: the CityClass Fuel Cell, powered by hydrogen fuel cells, a totally clean, highly advanced technology.
The Company operates in more than 100 countries by way of joint ventures, licence agreements andequity investments. It is particularly present in countries with a high growth potential such as China and South America; in China through Naveco, a joint venture for the production of light commercial vehicles (Daily), and CBC for the production of buses, and in South America where it produces its full range.
Magneti Marelli
Founded in 1919 by Fiat and the Ercole Marelli company, in 1967 Magneti Marelli was bought out entirely by the Fiat Group that transformed it into a worldwide center for automotive components.
Magneti Marelli has recently organized its various businesses into homogeneous groups, the better to focus on its core activities. Consistent with this strategy to reinforce the Sector by selecting and strengthening its portfolio, in 2001 it acquired full control of Automotive Lighting, a leader in motor vehicle lighting, thatset up as a joint venture with Bosch. Instead in 2002 the non-coreSpares Parts activities were divested.
Today Magneti Marelli Holding SpA operates the following business lines: Lighting, Powertrain, Electronic systems, Exhaust systems, Suspension systems, Shock absorbers, Motorsport and Retail Service. Thanks to this selected range of activities the Sector has become a global supplier with a widespread production structure in Europe, North and South America and Asia, which means it can guarantee absolutely top-level components and systems to manufacturers throughout the world.
Among Magneti Marelli's recent successes are the variable beam lighting units, the hardware and software "heart" of the new Multijet 1.3 16v engine, the patented Flecs suspension system, the Dualogic gearbox and the industrialisation of the Selespeed gearbox, and the SFS twin-fuel engine control system.
And last but not least, the electronic control units installed on the Formula 1 World Championship-winning Ferraris.
Comau
In 1978, Comau combined under a single corporate umbrella the machine tool and production system activities that Fiat and other companies in the Turin area had developed since the beginning of the Thirties.
Over the years Comau has made important acquisitionsto strengthen its presence in its corebusiness segments(Bodywork, Mechanicals and Maintenance services). Fiat's acquisition of Pico in 1999,(American market leader for bodywork systems) and Comau's acquisition ofRenault Automation and Sciaky structurally reinforced the Sector'spresence on its principal markets and its position as a supplier to the main automotive manufacturers. At the same time business continued to grow in the area of maintenance services for production plants, both as regards the Fiat Group and other important automotive manufacturers.
Thanks in part to acquisitions Comau broadened its range of services and products to become one of the few "global" suppliers in the motor industry automation field. In fact the Sector can guarantee customers a comprehensive service: product and process engineering, production systems, production start-up of machinery lines, and maintenance to ensure the correct and constant operation of manufacturing plants.
In line with a growth strategy focused on global consolidation and broadening its range, Comau has set up companies in Romania, Russia, South Africa, India, China and Australia in addition to its offices in Europe, Nafta and Mercosur.
Teksid
Teksid was founded in 1978, drawing together over 60 years of experience accumulated by Fiat in the metallurgical field, the origins of which stretched back to the early 1900s.
From its founding until today the Company, which operates in the field of metallurgical components for the automotive industry, has grown to become one of the world leaders in its field. The Sector works together with the main European and American manufacturers in high technology cast-iron and magnesium castings.
The Cast-iron Business Unit, which has plants in Italy, France, Portugal, Poland, Brazil, Mexico and China, has an annual production capacity of around 750,000 tonnes. It produces cylinder blocks and heads, exhaust manifolds, crankshafts, camshafts and components for cars and commercial vehicles. Withannualrevenues of approximately 600 million dollars, Teksid's Cast-iron Business Unit is the only operator in its sector to beranked among the top 75 suppliers to theautomotive industry.
The Magnesium Business Unit (the Meridian Technologies Inc. subsidiary) is the world's leading manufacturer of instrument panels, seat frames and other complex body components. It has plants in the USA, Canada, the UK, Italy and China and can boast a worldwide market share of over 35%.
Business Solutions
Business Solutions is the Fiat Group Sector operating in the field of services to business through numerous companies, subdivided into four areas of activity:
- Human Resources: outsourcing of administrative management of personnel, training.
- Facility Management: management of property and plant systems based on the most efficient solutions and technologies.
- Administration and Procurement: outsourcing and consultancy to rationalise administrative processes, services in the fields of motoring, non-industrial risk prevention, customs sector and administrative procedures for listed companies. Services and consultancy for procurement processes: on-line auctions, marketplace and centralised purchasing.
- Information & Communication Technology: technological services and solutions for outsourcing information systems, development of eBusiness solutions and telecommunications.
Set up in 2000 after a process of insourcing various activities, today Business Solutions offers companies a wide, comprehensive and diversified range of services and consultancy.
In line with strategies developed by the Fiat Group in 2003, Business Solutions has focused its activity on the captive market, reformulating its field of action. As a result the Sector sold TeleClient to Acroservizi, a company operating in the fields of call centre management, banking and insurance services and telemarketing. 70% of Fiat Engineering was sold to Maire Holding. An agreement was also reached with Risanamento Spa, part of the Zunino Group, for the divestment of a number of properties and investments in property companies, among which an approximately 56% share in Ipi Spa.