NEWS RELEASE
THE FIAT GROUP – MUCH MORE THAN JUST CARS
Best known for its car brands – Fiat, Alfa Romeo, Lancia, Ferrari and Maserati - the Fiat Group has, over its 107 year history, grown into an economic force across a remarkable and diverse range of industries that is a major player not just in the European economy, but also around the world.
In Australia, leaving aside the people who work in the car business, Fiat directly employs more than 600 Australians in its Iveco Truck business, which can trace its roots back to 1903 and which became a fully owned subsidiary in 1992. Not only do Australian truckers rely on Fiat products, thousands of Australian farmers rely on Fiat agricultural equipment from Case IH and New Holland and, since their launch in 2000, a rapidly growing number of people rely on Fiat Ducato vans.
The Group's manufacturing and service activities are carried out by the Operating Sectors.
The Group’s principal Sectors, which account for 82% of total sales, are Fiat Auto, Ferrari and Maserati (automobiles), CNH (agricultural and construction equipment) and Iveco (commercial vehicles).
In addition to the latter, there are the activities of the Components and Production Systems Business Area – comprised of Magneti Marelli (components) and Teksid (metallurgical products), and Comau (production systems) –, and Other Operations, which include Business Solutions (services) and Itedi (publishing and communications). In 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.
The scale of the Fiat Group business is revealed by the fact that in Fiat Research and Development activities alone there are approximately 12,400 people at 121 centers in Italy and abroad. Group investments in R&D activities totaled 1,810 million euros.
Another sign of its strategic position in the industry are its joint ventures. These include JVs with the PSA Group of light commercial vehicles and people movers; Ford for small cars; General Motors for diesel engines and car platforms; Suzuki for a small 4WD vehicle and diesel engines. In addition Fiat’s development of the Unijet and Multijet diesel systems sees these system sold under license to many other car makers.
OPERATING 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 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 European 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 excellence 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 2004 won its fifth Formula 1 Drivers’ Championship and its sixth 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.
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 celebrated its 90th anniversary in 2004 and returned to the racing circuits by taking part in the international GT FIA championship with the brand-new MC12 the same year and by taking the team and manufacturers’ championships in 2005.
CONSTRUCTION AND AGRICULTURAL MACHINERY ~ CNH
The first Fiat brandedconstruction equipment product was manufacturedin 1919. CNH is one of the world’s leading manufacturers 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.
COMMERCIAL VEHICLES ~ IVECO
Fiat's vocation for commercial vehicles goes back a long way: at the Milan International Exhibition in May 1901 the Company presented two buses 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.
COMPONENTS ~ 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, set 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.
PRODUCTION SYSTEMS ~ 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.
METALLURGICAL PRODUCTS ~ 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%
SERVICES ~ BUSINESS SOLUTIONS
Business Solutions is the Fiat Group Sector operating in the field of services to business through numerous companies, divided into four areas of activity:
- Human Resources: outsourcing of administrative management of personnel, training.
- Facility Management: management of property and plants 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, customsservices and administrative procedures for listed companies. Services and consultancy for procurement processes: on-line auctions, marketplace and centralized 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 a share of approximately 56% in IPI SpA.
The Fiat Group sold 65% of its stake in Worknetto Générale Industrielle.
PUBLISHING AND COMMUNICATIONS ~ ITEDI
Fiat entered publishing in 1926 when the Group set up Editrice La Stampa for the publishing of the Turin-based newspaper, "La Stampa" (founded in 1867). 1980 marked the founding of Itedi, Italiana Edizioni S.p.a., that absorbed all of Fiat’s publishing and communication activities.
The Company operates through Editrice La Stampa S.p.a.and, as regards sale of advertising space, through Publikompass S.p.a.
Currently "La Stampa" sells around 360,000 copies a day and is present on the Internet at with its own dedicated editorial staff. The newspaper is edited in Turin and printed at six different printing works in Italy and abroad, one of which is owned by La Stampa. The central editorial staff in Turin is flanked by correspondent offices in Rome, Milan, New York, Moscow, Paris, London, Berlin and Brussels. There are also branch offices in the provincial capitals in Italy’s Piedmont, Liguria and Valle d’Aosta regions.