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The Fiat 500C (the soft top convertible
version) was introduced at dealer showrooms
in Italy on July 4th to coincide with the new 500s second
birthday and the 52nd anniversary of the launch of the original
version. The Fiat 500 has reached about
390,000 orders in 59 markets since launch. |
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The Board of
Directors of Fiat S.p.A. met today in Turin under the
chairmanship of Luca Cordero di Montezemolo to approve the
Groups second quarter and first half 2009 results.
Group revenues
were down 22.5% to 13.2 billion. Year-on-year declines were
experienced by all businesses, but with signs of improvement
in certain markets compared with Q1 levels:
- Fiat Group Automobiles (FGA) reported revenues of 6.9
billion (-11.1%) on delivery of 591,100 cars and light
commercial vehicles (-8.3% over Q2 2008). FGA gained market
share in Western Europe (+0.9 p.p. to 9.2%) and, with its
product strength in fuel-efficient, environmentally-friendly
vehicles, outperformed in most major markets where
eco-incentives were in place, including Italy (to 34.5% from
32.9%), Germany (to 5.4% from 3.4%) and France (to 4.6% from
4.3%). In Brazil, Fiat maintained leadership (25.2% share)
in continued strong market. Fiat Professional no. 1 ranked
brand for LCVs in Western Europe for the quarter.
- Agricultural and Construction Equipment (CNH) revenues
were down 21.2% to 2.9 billion, reflecting the global
construction equipment industry decline, destocking actions
as well as weaker conditions for the agricultural business
compared with the record volumes for Q2 2008.
- Trucks and Commercial Vehicles (Iveco) reported a 43.2%
decrease in revenues to 1.8 billion, due to the sharp drop
in market demand, particularly in the heavy segment and
measures to reduce dealer inventories. Total deliveries were
down 56.1% to 25,921 vehicles.
The Group achieved trading profit of 310 million for the
quarter, countering significantly weaker year-on-year demand
through targeted realignment of production levels and
aggressive cost containment measures:
- FGA delivered a trading profit of 155 million (243
million for Q2 2008), representing a 2.2% margin. Strong
market share performance, combined with purchasing
efficiencies, cost containment actions, contained the effect
of lower market demand and destocking of the distribution
channels.
- CNH posted a trading profit of 123 million (399 million
in Q2 2008). Positive pricing and cost savings limited the
effect of volume declines, but were unable to fully offset
the drastic decline in construction equipment sales in all
markets.
- Iveco achieved 18 million in trading profit, down from
248 million for Q2 2008, with extensive cost reduction
measures delivering a positive result for the quarter
despite steep revenue declines. Additional margin support
was also provided by after sales activities, Latin America
and the special vehicles business.
Net industrial debt was reduced to 5.7 billion (6.6
billion at end of Q1), mainly through working capital
improvements, driven by destocking actions across
businesses. The Group ended the quarter with strong
liquidity of 6.4 billion (5.1 billion at end of Q1).
Major strategic developments during the quarter include
finalisation of the alliance with Chrysler and the signing
of a framework agreement to form a 50/50 joint venture with
GAC in China.
Group Results Second Quarter
Group revenues
for the second quarter of 2009 totalled 13.2 billion, a
22.5% decrease over the same period in 2008. The global
economic crisis continued to have a significantly negative
impact on demand levels for all of the Groups businesses,
but with signs of improvement in certain markets compared
with Q1 levels. The second quarter of 2009 closed with an
operating profit of 158 million (1,131 million in Q2
2008), including net unusual expense of 152 million
consisting primarily of restructuring costs.
Net financial
expense for the second
quarter totalled 161 million (231 million for Q2 2008) and
included a 39 million gain from the marking-to-market of
two stock option related equity swaps (79 million loss for
Q2 2008). Net of this item, financial expense increased 48
million over the prior year, substantially due to a higher
level of debt. The loss before taxes was 16 million
(955 million profit for Q2 2008), reflecting a
significantly lower operating result (down 973 million) and
a decrease in the result from investments (down 68
million), partially offset by lower net financial expense.
Income taxes
totalled 163 million (309 million
for the second quarter of 2008), mainly related to taxable
income of companies operating outside Italy.
There was a net
loss for the period of 179 million, compared with a
profit of 646 million for Q2 2008. Excluding unusual items,
the amount would be near break-even. During the quarter,
Group net industrial debt decreased by more than 0.8
billion, mainly due to the reduction in working capital and
disciplined capital expenditure. Group liquidity at
30 June 2009 was 6.4 billion, up 1.3 billion from the
first quarter.
Group Results First Half
For the first
half of 2009, Fiat Group revenues totalled 24.5
billion, a decrease of 23.8% over the prior year. Group
trading profit for the period was 262 million, down
from the 1,897 million recorded in H1 2008. Aggressive cost
containment measures and rigorous management of the Groups
operating leverage limited the impact of the significant
drop in demand.
Operating profit
for H1 2009 was 29
million, compared to 1,914 million for the first six months
of 2008. This decrease reflects the decline in trading
profit (down 1,635 million) and the 250 million difference
in semester-to-semester one-offs (net unusual income of 17
million for H1 2008, 233 million net expense for H1 2009),
attributable primarily to restructuring costs in addition to
provisions on inventory and residual values on leased
vehicles for FGA and Iveco .
Net financial
expense totalled 371
million (441 million for H1 2008) and included a 53
million gain from the marking-to-market of two stock
option-related equity swaps. For H1 2008, the same item
presented a 142 million loss. Net of this item, financial
expense for the first half increased 125 million,
substantially due to higher levels of debt. The loss
before taxes was 376 million for the first half (1,591
million profit in H1 2008), reflecting a lower operating
result and a decrease in investment income (down 152
million), partially offset by lower net financial expense.
Income taxes
totalled 214 million (518 million
for the first half of 2008), relating to taxable income of
companies operating outside Italy and employment-related
cash income taxes (IRAP) in Italy. There was a net loss
for the first half of 590 million, compared with a
profit of 1,073 million for the same period in 2008.
Working capital reduction in Q2 more than compensated for
the cash absorption in Q1, resulting in a 0.2 billion
decrease in net industrial debt during the first
half.
Automobiles
Fiat Group Automobiles
Second Quarter
Fiat Group
Automobiles
posted revenues of 6.9 billion
for the second quarter, down 11.1% over the prior year, due
to the significant contraction in the global automotive
market. Nearly one-third of the revenue decline was due to
unfavourable exchange rate movements. During the quarter,
the Sector delivered a total of 591,100 cars and light
commercial vehicles, down 8.3% over Q2 2008. In Western
Europe, total deliveries decreased 7.2% to 356,400 units.
The volumes were substantially flat in Italy (-0.3%), but
dropped in France (-22%), Great Britain (-30.9%) and Spain
(-71.5%). A significant increase was achieved in Germany
(+46.4%). For passenger cars only, Fiat Group Automobiles
delivered a total of 514,600 units during the quarter,
representing a 1.3% decrease over Q2 2008. Against an
overall market decline of 3.3%, deliveries in Western Europe
increased 3.4% to 317,600 units. Passenger car deliveries
were up 7.2% in Italy, running counter to the market trend,
but fell in several of the main Western European markets:
France (-10.4%), Great Britain (-22.4%) and Spain (-67.7%).
Performance in Germany was exceptional (+108.7%), with the
increase significantly outpacing market growth.
FGA's strong
offering of environmentally friendly cars enabled the Sector
to fully benefit from eco-based government incentives. The
Fiat brand, in particular, had an extremely positive
performance. In Europe, the Fiat Panda and Fiat 500 continue
to be the most sold A-segment cars and the Punto was one of
the most sold cars in the B-segment.
In Q2 2009, the
Western European passenger vehicle market declined 3.3%
year-on-year. Scrapping incentives introduced by governments
in several major markets significantly limited the fall in
demand. In Germany, the introduction of incentives and
reform of the annual vehicle tax were particularly effective
and stimulated a 32.8% increase in demand for the period.
The 3.8% year-on-year increase in demand in France also
benefited from incentives. In Italy, the decrease in demand
was limited to 1.4% in the second quarter as the positive
impact of scrapping incentives introduced in February began
to flow through to the market. By contrast, however, there
was continued deterioration in Spain (-33.7%) and Great
Britain (-21.2%), where incentives were only introduced
towards the end of the quarter. In Brazil, demand increased
3.8% in part driven by government incentives aimed at
encouraging purchases of new cars at the entry level.
Despite the
negative performance of the market overall, Fiat Group
Automobiles achieved significant gains in market share,
achieving a 34.5% share in Italy (+1.6 percentage points
over Q2 2008) and 9.2% share in Western Europe (+0.9
percentage points). The company retained its position as 4 th
ranked
automobile manufacturer in Western Europe. Fiat Group
Automobiles relative performance was particularly strong in
Germany (+2.0 percentage points to 5.4%) and positive in
France (+0.3 percentage points to 4.6%). The Fiat brand
achieved a 7.5% share in Western Europe (+0.8 percentage
points over Q2 2008) and a 26.8% share in Italy (+1.2
percentage points).
A total of 76,500
light commercial vehicles were delivered in Q2 2009,
representing a decline of 37.9% over the second quarter of
2008. For Western Europe, deliveries were down 49.7% to
38,800 units. Fiat Professionals share in Western Europe,
where the market contracted 34.3%, increased to 14.4% (+1.2
percentage points over Q2 2008). In Italy, share for the
period was 40.1% (-4.7 percentage points), principally due
to the sharp decline in the camper segment where the company
has long held a leading position. In Brazil, deliveries for
cars and light commercial vehicles increased 1% over Q2
2008. FGA maintained market leadership with a 25.2% market
share (+0.2 percentage points).
After a negative
first quarter (30 million loss), Fiat Group Automobiles
recorded a
trading profit
of 155 million for Q2 2009, compared
with 243 million for Q2 2008. This decrease reflected the
contraction in volumes, destocking actions, unfavourable
product mix driven lower sales of light commercial vehicles
and pricing pressure in Brazil, which were nearly offset by
cost reduction measures and tight controls on the operating
structure of the sector.
The Fiat 500C (the
soft top convertible version) was introduced at dealer
showrooms in Italy on July 4 th
to coincide with the new 500s second
birthday and the 52nd
anniversary of the launch of
the original version. The Fiat 500 has reached about 390,000
orders in 59 markets since launch. The Sedici was also
upgraded, with modifications to the interior and exterior
style and two new Euro 5 engines being offered. The Fiat
brand also presented the Panda Panda Cross, the first
low-environmental impact City SUV, and the special
MSN-edition Bravo, produced in collaboration with Microsoft
and equipped with a single device which integrates all of
the cars electronic communication and entertainment
functions. And, finally, the special series Fiat Panda 4x4
Adventure has arrived. The Fiat brand received an important
recognition for the second consecutive year, being named as
the lowest average CO2
emissions (133.7g/km)
brand for 2008 among the top selling brands in 21 European
markets (JATO ranking).
During the quarter,
the Tofas plant in Bursa, Turkey, passed a significant
milestone of 3 million vehicles produced. As part of the
World Class Manufacturing programme, two FGA plants achieved
Silver Level certification: Melfi (the first Italian plant
to achieve this level) and Tychy in Poland.
First Half
Fiat Group
Automobiles
had revenues of 12.5 billion,
down 14.3% over the first six months of 2008 due to the
significant contraction in demand and unfavourable currency
impacts. For H1 2009, Fiat Group Automobiles delivered a
total of 1,055,700 passenger cars and light commercial
vehicles, down 12.6% over the first six months of 2008
(-6.8% for passenger cars only). In Western Europe,
deliveries declined 12% to 632,100 units (-2.6% for
passenger cars only). Fiat Group Automobiles reported
significant gains in Germany (+65.8%), but experienced
declines in Italy (-12.2%), France (-16.4%), Great Britain
(-30.5%) and Spain (-73.1%). The Western European passenger
car market contracted 9.8% over the first six months of the
year, mainly reflecting the sharp declines recorded in the
early part of the year. Marked declines in demand continued
in Italy (-10.7%), Spain (-38.3%) and Great Britain
(-25.9%). The passenger car market grew in Germany (+26.1%),
however, and was flat in France. Fiat Group
Automobiles market share in Italy was 33.4% (+1.4
percentage points over H1 2008), confirming the positive
trend. In Western Europe, market share increased to 9.1%
(+0.8 percentage points).
Light commercial
vehicle deliveries totalled 142,300 units for the first six
months of 2009, a decrease of 37.7% over the same period in
2008. In Western Europe, where overall market demand fell
34.1%, total deliveries decreased 50% to 71,200 units.
Market share for Fiat Professional decreased to 40.1% in
Italy (-3.4 percentage points) and rose to 13.2% in Western
Europe (+0.8 percentage points). Deliveries were down for
passenger cars and light commercial vehicles in Brazil
(-2.9%). Market share decreased 0.6 percentage points to
24.5%, but Fiat Group Automobiles maintained its market
leadership.
For H1 2009, Fiat
Group Automobiles reported trading profit of 125
million. The decrease over the 436 million figure for the
first six months of 2008 was attributable to the fall in
volumes, unfavourable product mix resulting from weak demand
for light commercial vehicles and pricing pressure in Brazil
which were partially offset by cost containment measures.
Maserati
For Q2 2009,
Maserati reported 111 million in revenues, a
decrease of 45.9% over the same period in 2008. A total of
1,169 cars were delivered to the network during the quarter,
down 48.3% year-on-year. Due to the significant cost
containment measures taken, there was a 2 million
trading profit
for the
quarter (12 million for Q2 2008) despite the large drop in
revenues. Maserati reported 226 million in revenues
for H1 2009, down 43.2% over the same period for the
prior year. Sales to the network totalled 2,326 units,
representing a 48.2% decrease. The Sectors reference
markets also suffered an average year-on-year reduction of
47% for the period. Trading
profit for the first six
months of 2009 was 5 million, compared with 22 million for
the same period in 2008. The decline was wholly volume
driven.
Ferrari
For Q2 2009,
Ferrari reported revenues of 450 million,
down 12.3% over the same period in 2008 during which the
company experienced its historical sales record. The fall
was attributable to lower sales volumes, a less favourable
sales mix and unfavourable currency movements. During the
period, 1,574 vehicles were delivered to the network, an 11%
year-on-year decrease: deliveries of 8-cylinder vehicles
rose, driven by the addition of the California to the
product range, while sales of the 12-cylinder 599 GTB
Fiorano and 612 Scaglietti decreased. Sales to end customers
totalled 1,746 units (-6.2%). Ferrari closed Q2 2009 with a
trading profit of 70 million, compared to 105
million for Q2 2008. The year-on-year decrease reflects the
negative impact of volumes and product mix (both
particularly favourable in Q2 2008), in addition to
unfavourable currency impacts. The decline was partially
compensated by increased efficiencies in production and
overhead costs, in addition to the positive contribution of
licensing activities. For H1 2009, Ferrari recorded
revenues of 891 million, down 8% over the same
period for the prior year. A total of 3,145 vehicles (-8%)
were delivered to dealers and sales to end customers
totalled 3,226 units (-8%).
Trading profit was 124
million for the first half, compared to 164 million for the
first six months of 2008. The negative impact of lower
volumes and a less favourable sales mix was partly offset by
improved efficiencies, including Formula 1 costs, and the
positive contribution of licensing activities.
Trucks and Commercial Vehicles
Second Quarter
In Q2 2009,
Iveco reported revenues of 1.8 billion, down
43.2% year-over-year, mainly due to lower sales volumes
resulting from the severe economic crisis. Iveco delivered
25,921 vehicles, a 56.1% decrease over the same period in
2008, reflecting a sharp drop in demand and measures to
reduce dealer inventories. A total of 17,092 vehicles were
delivered in Western Europe (-55.1%). Significant declines
were experienced in all principal markets including Italy
(-40.7%), France (-59.2%) and Germany (-54%) and were
particularly marked in Great Britain (-77.8%) and Spain
(-64%). Volumes were also down in other regions: deliveries
fell 77.9% in Eastern Europe and 29.8% in Latin America. In
Western Europe, the market for ≥2.8 ton trucks and
commercial vehicles contracted significantly (-39.1%) over
Q2 2008. Demand declined significantly in all segments:
-37.6% for light vehicles, -35% for medium vehicles and
-45.5% for heavy vehicles. Demand also fell sharply in all
major European markets: Italy (-35.7%), France (-33.5%) and
Germany (-29.8%), with particularly sharp declines in Great
Britain (-50.1%) and Spain (-58.9%), which had already
experienced severe contractions in 2008.
Ivecos market
share in Western Europe was 9.0% for the quarter, down 1
percentage point over the second quarter of 2008. Share of
the light vehicle segment was down 0.9 percentage points
reflecting continuing competition from car-based van
models. Share of the heavy segment fell 1.8 percentage
points, driven by the significant drop in the Spanish
market. Iveco increased its relative share in Spain,
however, by 1.2 percentage points. Share of the medium
segment decreased slightly (-0.3 percentage points),
although significant improvements were recorded in Italy
(+4.4 percentage points) and France (+4.5 percentage
points).
Iveco closed the
second quarter with a trading profit of 18 million,
compared with a profit of 248 million for Q2 2008. The
decrease was primarily attributable to the sharp reduction
in sales volumes, only partially offset by extensive cost
containment measures adopted throughout the organisation.
After-sales activities, Latin America and the special
vehicles business continued to provide margin support.
During the quarter,
Iveco launched the EcoDaily, the latest transformation of a
model that, so far, has sold 2 million units. The new
vehicle underwent both styling and engine upgrades, in
addition to enhancements to comfort and electronics. The
EcoDailys principal feature is the two engines which meet
the strict new EEV standard (Enhanced
Environmentally-friendly Vehicle): a natural gas/gasoline
bifuel engine and an electric motor.
First Half
Iveco
posted
revenues of 3.3 billion for H1 2009, down 45.9% over
the same period for the prior year. Iveco delivered 47,406
vehicles, a 59.5% decrease over the same period in 2008,
reflecting the sharp drop in demand and measures to reduce
dealer inventories. A total of 31,523 vehicles were
delivered in Western Europe (-59.6%), with sharp declines in
all markets. Volumes were also down in other regions with
deliveries falling 79.3% in Eastern Europe and 31.4% in
Latin America. In Western Europe, where the market
contracted 37.7% over the first half of 2008, Iveco had an
overall market share of 9.2%, down 0.7 percentage points
over H1 2008. Ivecos share declined in both the light
segment (-0.6 percentage points) and heavy segment (-1.8
percentage points). In the latter segment, Iveco
nevertheless posted a notable performance in Spain (+5.3
percentage points) and a share increase in Italy (+0.3
percentage points). Market share was flat in the medium
segment compared to H1 2008, with significant improvements
recorded in Italy (+5.6 percentage points), France (+4.5
percentage points) and Great Britain (+0.9 percentage
points). In H1 2009, Iveco had a trading profit of 6
million, compared to a 470 million profit for the same
period in 2008, with the decrease reflecting the sharp
contraction in sales volumes.
Components and Production Systems
FPT Powertrain Technologies
FPT Powertrain
Technologies
reported 1.3 billion in revenues
for Q2 2009, a 40.5% year-on-year decrease. Sales
to external customers and joint ventures accounted for 15%
of the total (21% for Q2 2008). The Passenger & Commercial
Vehicles product line closed the quarter with revenues of
891 million (-20.2%), 93% of which was from sales to Fiat
Group companies. A total of 631,000 engines (-12.2%) and
579,000 transmissions (-2%) were sold during the quarter.
Industrial & Marine reported revenues of 360 million, down
63.8% over the second quarter of 2008 due to sharp volume
declines. A total of 62,000 engines were sold (down 61%),
primarily to Iveco (37%), CNH (27%) and Sevel (25%), the JV
for light commercial vehicles. In addition, 12,000
transmissions (-66%) and 23,000 axles (-74%) were delivered.
FPT closed the
second quarter of 2009 with a trading loss of 26
million, compared to a trading profit of 87 million for the
same period in 2008. The sharp contraction in volumes and
less favourable sales mix were only partially offset by
measures to reduce purchasing, manufacturing and overhead
costs.
For the new Iveco
EcoDaily, FPT Powertrain Technologies developed two
2.3-litre engines (106hp and 126hp) and two 3-litre engines
(140hp and 170hp). The latter meet the EEV standard
(Enhanced Environmentally-friendly Vehicle), the strictest
European emissions standard. The range of FPT engines for
the EcoDaily was completed with the Natural Power version,
offering a bifuel engine (natural gas/gasoline) that is also
EEV compliant. Developments in diesel applications for
medium- and heavy-duty vehicles include the launch of
production on the new CNG powered Cursor 8 engine which
offers improved performance and complies with the strictest
emissions standards. In June, FPT signed a strategic
cooperation agreement with Perkins Engine Company Limited
for the long-term supply of a clean 3.4-litre engine for
use on agricultural and construction equipment. In May, the
SAIC Fiat Powertrain Hongyan joint venture launched
production of Cursor 9 diesel engines at the new site in
Chongqing.
FPT reported 2.4
billion in revenues for
H1 2009,
a 42.3% year-on-year decrease. Sales to external customers
and joint ventures accounted for 16% of the total (22% for
2008). In H1 2009, Passenger & Commercial Vehicles reported
revenues of 1,601 million (-24.3%), selling 1,122,000
engines (-20%) and 1,048,000 transmissions (-10%).
Industrial & Marine had revenues of 751 million (-62%)
delivering a total of 127,000 engines (-60%). FPT reported a
trading loss of 84 million for H1 2009, compared to
a trading profit of 134 million for the same period in
2008. The first six months of the year were also heavily
influenced by the sharp decline in volumes and a less
favourable mix, partially compensated for through increased
efficiencies.
Magneti Marelli
Magneti Marelli
reported 1,152 million in revenues for Q2 2009,
down 28.7% over the same period in 2008, mainly due to the
overall decline in volumes experienced across business lines
(with the exception of positive sales performance in China)
and unfavourable exchange rates. Market conditions continued
to be difficult in the second quarter, but the level of
revenue decline recorded by the Sector was less severe than
for the first quarter, due in part to the positive effect of
government incentives introduced in several markets.
The Lighting
business saw a slight improvement, especially in Italy,
Turkey and the Mercosur region. Revenue increases in Germany
and the Czech Republic were only felt in June, however.
Engine Control partially offset the decrease recorded in
Europe with improvements in China and India. There was an
increase in sales of Suspension Systems and Shock Absorbers
in Poland, to both external and Fiat Group customers, of
Exhaust Systems in Brazil, to external customers, and of
telematic products (Portable Navigation Device) for the Fiat
500.
For Q2 2009,
Magneti Marelli posted a trading profit of 1
million, reversing the negative result recorded for the
first quarter of 2009. Compared to Q2 2008 (trading profit
of 72 million), trading performance was impacted by lower
sales volumes and a less favourable product mix, partly
offset by improved production and purchasing efficiencies
and the initial effects of overhead reductions. During the
quarter, Magneti Marelli released several new components for
engine control and lighting systems, developed and produced
for several major European automakers. For the first half
of 2009, Magneti Marelli reported revenues of
2,128 million (-27.8%). Magneti Marelli reported a
trading loss of 39 million for the first half of 2009
compared to a trading profit of 117 million for the
corresponding period in 2008. This decrease is attributable
to the sharp decline in volumes, offset in part by cost
containment measures implemented.
Significant events: second quarter 2009
and subsequent to 30 June 2009
On June 10th, Fiat
Group and Chrysler Group LLC finalised the agreement for a
global strategic alliance. On the same date, the new
Chrysler became operational. Under the agreement, Chrysler
will have access to Fiats world-class technology, platforms
and powertrains for small and medium-sized cars, enabling
the US automaker to expand its product offer, including low
environmental impact vehicles. Chrysler will also be granted
access to Fiats international distribution network with
particular focus on Latin America and Russia. The alliance
represents an important step toward positioning Fiat and
Chrysler among the leaders of the new generation of global
automakers. Fiat has a 20% interest in the newly-formed
Chrysler Group LLC, which could increase up to a total of
35%, if specific targets are achieved. Fiat will have the
right to take a majority interest in Chrysler once the
government loans have been entirely repaid. In June, the
European Investment Bank (EIB) and Fiat Group signed an
agreement for 400 million in financing. The loan, which is
to finance the Groups automotive research and development
projects, was issued under the European Clean Transport
Facility (ECTF), an EIB financing programme for European
manufacturers aimed at investment in the areas of emissions
reduction and energy efficiency. At the beginning of July,
Fiat and Guangzhou Automobile Group Co., Ltd. (GAC Group)
signed a framework agreement to establish a 50/50 joint
venture for the production of cars and engines for the
Chinese market. The agreement calls for the construction of
a new plant with an expected total investment by the joint
venture of more than 400 million. Upon completion of the
first phase of development, the plant will have a production
capacity of 140,000 cars and 220,000 engines per year, with
the option to subsequently increase capacity to 250,000 cars
and 300,000 engines per year. Production is scheduled to
commence in the second half of 2011.
2009 Outlook
The Group delivered
results in the first semester of 2009 in line with its
internal expectations, with the first quarter being
characterized by erratic declines in demand, and the second
beginning to show the full effect of the restructuring and
cost containment efforts started in the latter part of 2008.
We expect an improvement in the remainder of the year, as
trading conditions stabilise and improve for most of our
businesses. We confirm our view that the truck market and
the construction equipment business will continue to suffer
depressed demand for the major portion of the year, with
signs of recovery only visible in the 4th quarter. On the
basis of performance to-date and barring unforeseen systemic
shifts in demand, the Group reaffirms its view that the
following conditions will materialise for the whole of 2009.
Global demand for
our products will decline ~20% compared to 2008.
Group trading profit will be in excess of 1 billion.
Restructuring charges of ~300 million and other unusual
costs ~200 million.
The net result for the Group will be in excess of 100
million.
Group net industrial cash flow will be in excess of 1
billion, with net industrial debt levels below the 5
billion mark.
While working on
the achievement of its objectives, the Fiat Group will
continue to implement its strategy of targeted alliances, in
order to optimise capital commitments and reduce risks.
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