The Board of Directors of Fiat S.p.A. met at CNH premises in Racine, Wisconsin (U.S.A.), under the chairmanship of Luca Cordero di Montezemolo, to approve the Group’s third quarter and first nine month 2008 results.

• Group revenues rose 3.2% to €14.3 billion, with CNH providing aparticularly strong contribution:
− Fiat Group Automobiles (FGA) reported Q3 revenues of €6.6 billion (+1.9% y.o.y.) on 516,700 total units delivered (-4.8%), with continued strong volumes in Brazil (+10.2%), more than offset by lower deliveries in Western Europe (-12%). In face of a 10.1% decline in registrations for Western Europe (down 9.8% excluding Italy), FGA decreased by only 4.1% (up 4% excl. Italy), improving its market share to 7.8% from 7.4%. In Brazil, FGA retained a leading position with 24.8% market share.
− Agricultural and Construction Equipment (CNH) revenues were up 10.1% (+20.3% in US dollar terms) on the back of market share gains, continued strong growth in agricultural equipment and, in particular, stronger demand for combines in all regions. Construction equipment sales declined, due to continued weak demand in North America and Western Europe, partly offset by increases in Latin America and RoW.
− In a core market significantly declining, Trucks and Commercial Vehicles (Iveco) had revenues of €2.4 billion (-6.2%), as a result of a 17.9% decline in vehicles delivered, partly offset by a change in product mix. Iveco continues to strengthen its presence in Latin America (+47.6%).
• Trading profit rose nearly 8% to €802 million, reflecting overall margin improvement despite uneven trading conditions:
− FGA contributed trading profit of €190 million (2.9% of revenues), a €5 million gain over Q3 2007.
− CNH reported a €59 million y.o.y. increase to €284 million (up 37% in US dollar terms). Margins were up 1.1 percentage points to 9.1%, reflecting buoyant demand for agricultural equipment, improved product mix in addition to pricing and operational actions implemented.
− Iveco posted €181 million in trading profit, down €9 million over Q3 2007 due to lower sales volumes. However, improved price positioning enabled the Sector to maintain margins (up to 7.5% from 7.4% for Q3 2007).
• Strategic developments include agreements for new production initiatives in Serbia.
• Working capital absorption (€2.4 billion), due to weakening trading conditions in Western Europe, seasonality and strong demand for agricultural products, combined with capital expenditure (€1.1 billion), primarily targeted at strengthening the product portfolio, brought net industrial debt to €3.3 billion. Liquidity at €3.2 billion.

Group revenues for Q3 2008 totalled €14.3 billion, up 3.2% over the same period in 2007, and benefited from the significant contribution of CNH and the growth of the Automobile businesses. Top-line performance for Iveco, however, reflected a substantial drop in demand in the European market. Group trading profit for the third quarter was €802 million, a €57 million (+7.7%) increase over the same period in 2007. The trading margin improved to 5.6% from 5.4%. Net financial expense of €161 million was substantially in line with the €163 million figure for the third quarter of 2007. The figure for Q3 2008 also included a €22 million charge for the decrease in the mark-to-market value of two stock-option related equity swaps (compared to a €19 million charge for Q3 2007).

Profit before taxes totalled €675 million, a €53 million increase over the third quarter of 2007, reflecting the €57 million improvement in operating profit. Net profit (before minority interests) was €468 million, compared to €454 million for the third quarter of 2007, after income taxes of €207 million (€168 million for the third quarter of 2007).

For Q3 2008, the Group had a net industrial cash absorption of approximately €2.8 billion, with the positive operating result being more than offset by a €2.4 billion increase in working capital - reflecting lower activity in the Western European markets, seasonality and inventory build to satisfy 4th quarter demand for agricultural products - and by capital expenditures of approximately €1.1 billion (+€0.3 billion over Q3 2007) - primarily targeted at strengthening the product portfolio. Net industrial debt rose €2.8 billion to €3.3 billion. At 30 September 2008, Group liquidity was €3.2 billion (typically at its lowest level in the third quarter).

Group revenues totalled €46.3 billion for the first nine months of 2008, an 8.4% increase over same period in 2007, and all industrial businesses contributing to the improvement. Operating profit for the first nine months was €2,716 million and included €17 million in unusual income primarily related to the release of provisions for risks which were deemed unnecessary. The €430 million increase over 2007, therefore, principally reflects the €413 million increase in trading profit.

Profit before taxes was €2,266 million, compared with €2,071 million for the first nine months of 2007. This €195 million improvement was attributable to higher operating profit (+€430 million) and investment income (+€36 million), both of which more than offset the €271 million increase in net financial expense. Income taxes totalled €725 million (€614 million for the first nine months of 2007), representing an effective tax rate of 32%, at the high end of the Group’s expected effective rate for FY 2008.

Net profit (before minority interests) was €1,541 million, as compared to €1,457 million for the first nine months of 2007. During the period, there was a net industrial cash absorption of approximately €2.9 billion, mainly attributable to seasonal factors and lower activity in the Western European markets in the third quarter, in addition to a high level of capital expenditure (€2.7 billion, up €0.6 billion over the first nine months of 2007). The Group also distributed €545 million in dividends (including €36 million to minority shareholders of consolidated entities) and made share buy-backs totalling €239 million. As a result, net industrial debt rose €3.6 billion during the period.

The Fiat brand continued its positive performance. In Europe, the Fiat Panda and the 500 continue to be the most sold A-segment cars and the Punto remains amongst the models in its segment experiencing the highest level of demand. The Lancia brand began to see the benefit of deliveries of the new Delta, with 12,000 orders having been received at the end of Q3 2008, since its launch in June. The Lancia Musa also enjoyed success in several major European markets. Alfa Romeo began sales of the new MiTo (at the end of Q3 2008, 10,000 orders received since the model went on sale in September).

In Q3 2008, the Western European passenger vehicle market declined 10.1% year-over-year driven by sharp declines in demand in Italy (-11.7%), Spain (-32.5%) and Great Britain (-18.8%), in addition to a more modest decline in Germany (-3.3%). By contrast, there was limited growth in France (+0.9%). Demand remained buoyant in Brazil, which saw 17.7% growth over Q3 2007. Fiat Group Automobiles continued to gain share in the passenger vehicle market. In Italy, market share was 31.8%, a 0.9 percentage point increase over Q3 2007. In Western Europe, market share increased 0.4 percentage points to 7.8%. During the quarter, the Fiat brand continued to win market share in Western Europe, climbing from 5.7% in 2007 to 6.3% in 2008. In Italy alone, market share rose to 24.4% (+0.6 percentage points). In Brazil, deliveries for the quarter were up 10.2% over Q3 2007 and the Sector reaffirmed its position as market leader with a 24.8% market share (down 1.8 percentage points from Q3 2007 due to the particularly high level of competition).

A total of 94,500 light commercial vehicles were delivered in Q3 2008, representing 6.9% growth year-over-year. In Western Europe, where the market declined 12.2%, deliveries actually rose 1.3% to 51,300 units. Fiat Professional benefited from the contribution of the Fiorino, which went on sale at the end of 2007. Fiat Professional’s market share was 12.1% for Western Europe (+0.3 percentage points over Q3 2007) and 42.5% for Italy (-0.6 percentage points).

For the third quarter, Fiat Group Automobiles had trading profit of €190 million (2.9% of revenues), an improvement over the €185 million figure (2.8% of revenues) reported for Q3 2007. The decrease in volumes in Western Europe and higher selling expenses associated with the launch of new models were substantially offset by the positive performance in the Brazilian market and better product mix.

In September, Fiat Group Automobiles models received two important expressions of recognition. The Lancia Delta was awarded the coveted EuroNCAP five stars, considered the highest recognition for safety internationally, while the Fiat Fiorino was named “International Van of the Year 2009” by a panel of automotive journalists from 20 countries. This brings the number of times Fiat Professional has won this prestigious award to four. Then, in October, the Alfa MiTo topped new models from all other makers presented in 2008 to win the “Auto Europa 2009” award, finishing ahead of the Lancia Delta which took second place. New products unveiled during the third quarter include the Fiat Qubo, an innovative car which, given its flexibility and ability to satisfy a variety of mobility needs, has been described as a ‘free space’ vehicle. In early October, the Paris Motor Show saw the premiere of the PUR-O2 label, intended for vehicles with minimum environmental impact (a 500, Croma and Bravo model were exhibited) equipped with systems to reduce consumption and emissions. Also presented by Fiat, was the special “500 by Diesel” series: a marriage between the new icon of ‘Made in Italy’ and the renowned fashion house. Lancia presented the prototype Ypsilon Versus at the Paris show. Designed in collaboration with Versace, this car provided a sneak preview of a special series which will be available in March 2009. Alfa Romeo presented the Alfa Brera TI (the historic initials standing for “Turismo Internazionale”), a sports car bred for daily street driving. Finally, Abarth presented its “esseesse” kit, which transforms a standard production Fiat 500 into a high-spirited car sporting the Scorpion badge, and the racing version of the 500, the Abarth Assetto Corse. A single-make trophy will be launched in 2009 for the 500 Abarth Assetto Corse which is to be sold to drivers “competition ready”. The Eco Drive was also presented to the public at the Paris Motor Show. Eco Drive is a sophisticated application developed with Microsoft which promotes eco-friendly driving. Already available on the 500 and Grande Punto, the application will also be offered on all Fiat models equipped with Blue&Me beginning in 2009. There were two new offerings from Fiat Professional at the Hannover Motor Show, where it debuted the Natural Power versions of the Ducato and Fiorino (i.e., dual-powered by natural gas and gasoline). Finally, in October Fiat presented the Grande Punto Natural Power. This vehicle has minimum emissions, very low running costs and can be driven in restricted traffic zones.

Fiat Group Automobiles’ share of the Italian market stood at 31.9% (+0.5 percentage points over the first nine months of 2007), continuing a positive trend. For Western Europe, market share saw a slight increase to 8.2% (+0.1 percentage points). There was a significant increase in deliveries in Brazil (+22.8%), where Fiat Group Automobiles closed the first nine months with a 25.3% share (down 0.6 percentage points), maintaining the lead position in a market which is continuing to experience double-digit growth (+23.3%).

A total of 323,100 light commercial vehicles were delivered during the first nine months, a 13.5% increase over the same period for the prior year. In Western Europe, a total of 193,700 units were delivered, resulting in a 10% increase notwithstanding the 5.3% decline in the market. Market share for Fiat Professional increased to 43.2% in Italy (+0.7 percentage points) and 12.3% in Western Europe (+0.6 percentage points). Fiat Group Automobiles reported trading profit of €626 million for the first nine months (2.9% of revenues). The 9.8% improvement over the €570 million figure (2.9% of revenues) for the same period in 2007 was driven by higher volumes, a more favourable product mix and, in particular, positive performance in the Brazilian market, the effects of which were partially offset by non-recurring costs related to the temporary closure of the Giambattista Vico plant.

For Q3 2008, Maserati reported €198 million in revenues, an increase of 40.4% over the same period in 2007. This improvement is primarily attributable to the excellent performance of the GranTurismo. Deliveries to the network climbed to 1,971 units for the quarter, up 34% over the same period in 2007. For Q3 2008, trading profit was €9 million (4.5% of revenues) – a significant increase over the €6 million figure (4.3% of revenues) for Q3 2007 despite substantial adverse currency movements – driven by strong sales performance and significant efficiency gains.

Boasting a successful sales record with over 15 thousand units sold to date and 47 international awards received, the Quattroporte has provided an upgrade to the entire range which now also includes a Sport version. In July, the Quattroporte S, equipped with a new 4.7-litre engine (430 hp), was presented and road tested by over 200 journalists from leading international publications, and it received favourable reviews. The entire new Maserati Quattroporte range recently made its debut appearance to the general public at the Paris Motor Show.

Maserati booked €596 million in revenues in the first nine months, up 22.9% over the same period for the prior year. Deliveries to the network rose 25% to 6,466 units compared to the first nine months of 2007: a result that is all the more significant given the overall decline of approximately 15% in Maserati’s market segments. At the end of September, the order book stood at 1,784 units. Maserati reported trading profit of €31 million (5.2% of revenues) for the first nine months of 2008, representing a substantial increase over the €6 million figure (1.2% of revenues) for the same period in 2007.

After simultaneous previews at Maranello and in Los Angeles, Ferrari officially presented the new California at the Paris Motor Show. This new model offers several innovative features: from the central front-mounted V8 engine to the 7-speed transmission coupled with double-friction clutch and Formula 1-style controls. Other original features include the cabriolet with folding hard-top.

Ferrari’s revenues for the first nine months were €1,419 million, up 21.1% year-over-year. A total of 4,822 vehicles(+3.1%) were delivered to dealers and sales to end customers totalled 5,026 units (+2.6%). Ferrari’s trading profit was €243 million (17.1% of revenues) in the first nine months of 2008, up 54.8% from the €157 million figure (13.4% of revenues) reported for the same period of 2007 due to higher volumes, improved pricing and cost efficiency gains.

CNH’s brands were well placed to benefit from the agricultural equipment industry’s strong growth. Worldwide tractor market share was up with gains achieved in Rest of World and North America (particularly in high-hp models); in Latin America and Western Europe market shares were unchanged. Overall combine market share was up, achieving significant gains in North America and Rest of World; Latin America and Western Europe declined, due to supply constraints. Retail unit sales for the construction equipment industry worldwide declined by 12%. Latin America and Rest of World markets continued to grow, while Western Europe and North America sharply declined. Industry sales of heavy construction equipment were up by 3%, with strong performance in Latin America and Rest of World and a drop in Western Europe and North America. Retail sales in the light construction equipment industry declined by 22%, driven by drops in North America and Western Europe, a decline in Rest of World, partially offset by a significant growth in Latin America.

CNH continued to benefit from its global construction equipment presence, with a stable worldwide market share. In the strong Latin American markets, share gains were achieved in light equipment; in Rest of World and North America, market share was substantially stable, while declining in Western Europe. CNH closed the third quarter of 2008 with trading profit of €284 million (9.1% of revenues), an increase of €59 million over the €225 million level (8.0% of revenues) for Q3 2007 (up 37% in US dollar terms). Agricultural Equipment’s sales growth, mix improvements, pricing and operational actions more than offset rising material cost pressures and production capacity constraints as well as weakness in Construction Equipment.

During the quarter, all CNH brands continued to launch new, re-powered and up-graded products, further widening their product offering. Case IH Agriculture publicly debuted its new Mid-Range Magnum row crop tractors, and an expanded line-up of high efficiency, Axial-Flow Combines. Case IH also introduced upgraded models of small square balers, a new pull-type rotary cutter and continued its worldwide distribution of the new JXU Utility tractors, Axial Flow combines and Module Express Cotton Pickers into the Australian market. New Holland Agriculture’s new 591 hp CR9090 Class IX Combine set a new Guinness world record in the UK on 26 September, by harvesting 551 tons of wheat in 8 hours, beating the previous record by 19.5 tons, while consuming only 13.3 litres of fuel per hectare – highlighting the machine’s efficiency. In addition, New Holland upgraded its VN2080 Grape Harvesters for worldwide markets and introduced new T7000 and upgraded T6000 higher horsepower tractors for the Latin American market.

Case Construction added new models to its B-Series crawler excavators with reduced noise levels and increased fuel efficiency for worldwide distribution, new compact track loaders in Europe, new compaction equipment in the Americas and new crawler dozers, backhoe loaders, and skid steer and compact track loaders in Rest-of-World markets. New Holland Construction presented its newest models of crawler excavators, expanding the breadth of its product line, complete with improved hydraulics and cab ergonomics and an integrated noise and dust reduction system, destined for the North American and Western European markets. It introduced new models of graders, telehandlers and skid steer loaders in the Latin American market and new crawler excavators and graders in Rest-of-World markets.

CNH had revenues of €9.7 billion for the first nine months of 2008, up 10.3% over the same period in 2007. In U.S. dollar terms, revenues grew by 24.8%. Increased sales of higher-value high horsepower tractors and combines, better mix and pricing actions drove the improvement. Trading profit was €881 million (9.1% of revenues) up €119 million over the first nine months of 2007 (€762 million and 8.7% trading margin). The increase was 30.9% in U.S. dollar terms. Agricultural Equipment’s sales growth, improved mix, and pricing actions more than offset higher procurement, manufacturing and expediting costs driven by rapidly increasing volumes as well as weakness in Construction equipment.

For Q3 2008, Iveco had revenues of €2.4 billion, representing a 6.2% decrease year-over-year principally attributable to lower sales volumes in Europe, where the market contracted significantly. Iveco delivered a total of 39,953 vehicles during the quarter, a 17.9% drop over the same period in 2007. In Western Europe, a total of 23,960 vehicles were delivered, down 25.9% year-over-year. Declines were experienced in all principal European markets, except for Great Britain, where a 2.7% increase was reported. Outside Western Europe deliveries contracted 19.1% in Eastern Europe, while performance in Latin America remained very strong (+47.6%). In Western Europe, the number of new vehicle registrations in the ≥ 2.8 ton category declined considerably (-9.1%) compared to Q3 2007, with a drop in registrations in all three segments. There were decreases in France (-6.7%), Great Britain (-8.6%), Italy (-4.1%) and a very significant drop in Spain (-46.6%). By contrast, Germany experienced a continued increase in demand (+4.2%).

Iveco’s market share in Western Europe stood at 9.8%, slightly below Q3 2007 (-0.6 percentage points). Market share in the light vehicle segment fell 0.4 percentage points mostly due to increased demand in the van segment being predominantly met by car-based models and the commercial strategy of defending margins. Market share in the medium segment fell 1 percentage point, principally due to the effect of low-priced competition from Japanese producers and defensive price positioning for the new Eurocargo. In the heavy vehicle segment, there was a 1.4 percentage point decrease which was predominantly attributable to a less favourable market mix compared to 2007 and protection of margins through price monitoring. Iveco had trading profit of €181 million, down €9 million over Q3 2007 principally due to lower sales volumes. Notwithstanding top-line performance, the trading margin stood at 7.5% (7.4% for Q3 2007) due to improved price positioning.

In July, Iveco launched a field test of a hybrid version of the Daily (dual-powered diesel/electric) with the delivery of 10 of these vehicles to one of the leading global courier companies. This version of the Daily will go into production in 2009. In September, the Campagnola was launched, representing a return of the historic offroad vehicle produced by Fiat for more than 35 years. This model has been designed as a people transporter having the look and performance of an authentic off-road vehicle. Also in September, Iveco presented the new Eurocargo 4x4 to the media and the public at the Hannover Motor Show, in addition to other models powered by alternative fuels which are already or soon to be in production. In Turin, Iveco participated at the world fair for natural gas and hydrogen powered vehicles, exhibiting part of its range of CNG powered commercial vehicles and buses.

Revenues for the Industrial & Marine (I&M) product line totalled €0.7 billion. The 2.5% increase over Q3 2007 was driven by an increase in volumes to CNH and Sevel (the JV for the production of light commercial vehicles). A total of 122,600 engines were sold (+8.7%) - primarily to Iveco (36%), CNH (25%) and Sevel (25%) - in addition to 21,100 transmissions (-22.3%) and 52,600 axles (-20.8%). FPT reported trading profit of €21 million (1.3% of revenues) for the third quarter, a €42 million decrease over the €63 million figure (3.9% of revenues) for the same period in 2007. This decrease principally resulted from a contraction in volumes, worsening of the sales mix and increases in raw materials prices, in addition to start-up costs for new ventures in China and Brazil.

On the product front - for gasoline engines: development was completed on the Euro 5-compliant Fire family of engines for the 500, equipped with Start & Stop system, and the “esseesse” kit was launched for the 500 Abarth. The Fire family has also been enlarged with a new 1,172 cc version being developed expressly for the Indian market. For diesel engines: the 190 hp, 1.9-litre Twin Turbo Multijet is now available on the Lancia Delta. Yet another FPT engine, the F1C offered on the Iveco Campagnola, was unveiled in September. The F1C is a 4-cylinder, 3-litre Common Rail turbo diesel with 16 valves and exhaust gas recycling (EGR). Also of note was the launch of the 480 hp Cursor 13 engine on the Iveco Stralis. For transmissions: the new M38 manual transmission for light commercial vehicles, available in both 5-speed and 6-speed versions, was launched in September.

Revenues for FPT Powertrain Technologies in the first nine months of 2008 totalled €5.7 billion (€3 billion from the P&CV product line and €2.7 billion from I&M), a 10.1% increase over the first nine months of 2007. Sales to external customers and joint ventures accounted for 22% of revenues (24% for the first nine months of 2007). During the first nine months, Passenger & Commercial Vehicles sold 1,959,800 engines (+1.8%) and 1,662,000 transmissions (+7.9%). Industrial & Marine delivered a total of 440,100 engines (+18.2%). FPT’s trading profit for the first nine months was €155 million (2.7% of revenues), down €29 million over the €184 million figure (3.6% of revenues) for the same period in 2007. The favourable effect of higher volumes (concentrated in the first six months) and increased efficiencies were more than offset by increased raw materials prices and startup costs for several international ventures, as well as costs recognised in the first quarter for production problems with the 1.3 Multijet engine related to defective components received from an external supplier.

Magneti Marelli reported trading profit of €48 million for the third quarter, up from the €44 million figure for Q3 2007. This increase was primarily attributable to higher sales volumes in Brazil and Poland, which offset the slowdown in the other markets and a less favourable product mix overall. Actions taken to improve production costs also contributed to the result. Trading margin for the period was 3.5% (3.7% for Q3 2007). On a comparable scope of operations, the trading margin would be higher at 4%. Among the principal products launched during the quarter were: headlights and rear lights for the Maserati Quattroporte; a complete exhaust system for the dual-power gasoline/natural gas Fiat Grande Punto Natural Power; a manifold for the 165 hp, 2.0-litre JTD engine and shock absorbers for the Fiat Linea. In addition to these products, Magneti Marelli also introduced other important components for new models of some of the major German, French, American and Chinese automakers.

Magneti Marelli reported €4.3 billion in revenues for the first nine months of 2008, up 16.7% over the same period in 2007. On a comparable scope of operations, revenues were up by 6.7% on the back of excellent performance in several markets - primarily Brazil, Poland and Germany - in relation to business with both Fiat and external customers. Magneti Marelli reported trading profit of €165 million (3.8% of revenues; 4.2% on a like-for-like basis), compared to €145 million (3.9% of revenues) for the first nine months of 2007.

At the beginning of July, Fiat Group Automobiles and BMW signed a Memorandum of Understanding which should lead to collaboration in the area of components and platforms for both Mini and Alfa Romeo vehicles. In September Fiat Group Automobiles and the Republic of Serbia reached a definitive joint venture agreement based on the Memorandum of Understanding signed in April. A new company, held 67 percent by FGA and 33 percent by the Serbian Government, will acquire the assets of the Zastava plant in Kragujevac. The plant, located 140 kilometres south-east of Belgrade, will reach a production capacity of approximately 200,000 cars per year in 2010 with potential for a further 100,000 units per year. Initial investment in the project will be approximately €700 million, including more than €200 million in contributions from the Serbian government consisting of €100 million in cash, a €50 million loan and other contributions in the form of tax exemptions, training programmes, etc. The project will also receive support from the City of Kragujevac in relation to provision of the necessary infrastructure and supply of utilities. Serbia’s Ministry for the Economy and Regional Development also signed a Memorandum of Understanding with Iveco and Magneti Marelli as the basis of potential cooperation in the production of buses, special purpose vehicles and automotive components. Two joint working groups have been established to examine various aspects of the initiatives in greater detail. The objective is to establish two companies, in each case held 70 percent by Iveco or Magneti Marelli and 30 percent by the Serbian Government. It is expected that by year-end 2012 Iveco will produce approximately 2,200 buses per year and Magneti Marelli will produce original components and spare parts in plastic, suspensions, exhaust systems and automotive lighting for both the domestic and international markets. Magneti Marelli also signed an agreement with Unitech Machines Limited to establish a joint venture in India for the production of automotive electronic systems, such as instrument panels, body electronics (i.e., control systems for principal vehicle functions) and telematics. In September, Fiat also signed a master agreement with the Region of Basilicata to establish a centre of excellence for research, training and the development of innovative manufacturing processes in Melfi. This “Campus for Innovation in Manufacturing”, which will require a total investment of €18.5 million, will be attached to the Fiat plant in Melfi. Its activities will be managed by the Centro Ricerche Fiat.

Given continuing weak trading conditions, we expect the remainder of the year to close with reduced volumes against original expectations in all of our sectors, with the exception of the agricultural portion of CNH. Nonetheless, we are confirming our trading profit for the year at the low end of our indicated range of €3.4 to €3.6 billion. Net industrial debt is expected to range between €1.5 to € 2 billion, totally attributable to working capital reversals associated with lower production volumes.

The events we have witnessed in this quarter have significantly changed the quality of the trading conditions which our sectors will face in the last quarter of this year and, in our view, for a major portion of 2009. With conditions and positioning of our businesses and financial markets changing as widely and frequently as we have seen in the last few weeks, it is quite difficult to peg a particular point as being a reliable guidance for the performance of Fiat Group in 2009. We believe that we will continue to experience erratic fluctuations in market sentiments throughout at the least the first semester. These deviations from “normal” trading conditions expected in 2009 are viewed by us as temporary and as such do not impact on the overall substance of the commitment made by the Group back in 2006 regarding the 2007-10 objectives. It is for these reasons that we have chosen a strategy of updating the financial markets on a quarterly basis on expected 2009 performance, as evidence materialises about the ultimate shape and quality of the various product demand curves we face.

Notwithstanding this, we have modelled a number of potential scenarios and formed clear operational response plans to various degrees of possible market declines. Based on this analysis, we can summarize our worst case 2009 market scenario as follows:

• Global demand for our products could decline between 10% to 20% compared to 2008.
• The range of trading profit associated with such declines will be between €2.3 and €1.5 billion.
• The net result for the Group will range between €1,200 and €400 million.
• Net industrial indebtedness levels will be between €3 and €4 billion, purely as a result of working capital reversals.