The Board of Directors of Fiat S.p.A. met today in Turin under the chairmanship of Luca Cordero di Montezemolo to approve the Group’s 2009 third quarter and first nine month results.

• Group revenues were €12.0 billion, down 15.9% over Q3 2008. Several businesses, however, experienced slowing in year-on-year declines compared with H1 levels:
- Fiat Group Automobiles (FGA) achieved €6.5 billion in revenues (-1.4%) on delivery of 538,900 cars and light commercial vehicles (up 4.3% over Q3 2008). FGA continued to increase market share in Western Europe (+0.4 p.p. to 8.3%) with its product strength in eco-friendly vehicles contributing to share gains in most major markets. In Brazil, where the overall market experienced 7.8% growth, Fiat maintained leadership (24.5% share).
- Agricultural and Construction Equipment (CNH) revenues were €2.3 billion, down 27.4%, due to persisting significant declines in the global construction equipment industry and weaker market conditions for the agricultural business compared with strong Q3 2008 levels. CNH achieved market share gains for tractors in North America and for combines in Latin America.
- Trucks and Commercial Vehicles (Iveco) reported €1.7 billion in revenues, a 29.7% decrease reflecting continued market weakness, which was most pronounced in the heavy segment. Total deliveries were down 35.2% to 25,880 units.
• Group trading profit came in at €308 million, notwithstanding continued severe pressure on volumes and an overall highly-competitive environment in most businesses. Targeted realignment of production levels and rigorous cost management delivered the best quarterly margin performance year-to-date (2.6%):
- FGA reported a trading profit of €155 million (€190 million for Q3 2008), representing a 2.4% margin. Solid volume performance for passenger cars combined with cost containment actions narrowed the revenue gap attributable primarily to a less favourable product mix.
- CNH posted a trading profit of €66 million (€284 million in Q3 2008). Cost savings, aggressive management of production levels and net pricing only partially offset volume declines.
- Iveco achieved €22 million in trading profit (€181 million in Q3 2008). Decisive cost reduction measures delivered a positive result, despite persisting volume declines. After sales activities, Latin America and the special vehicles business continued to provide positive margin contributions.
• Net industrial debt substantially remained stable at €5.8 billion (€5.7 billion at end of Q2), with seasonal effects offset in the main by destocking across all businesses.
• Liquidity further strengthened to €8.4 billion at quarter end (€6.4 billion at end of Q2).
• The Group re-accessed the European and US capital markets, with 3 successful bond issues totalling over €3 billion executed during the quarter.

Group revenues for the third quarter of 2009 totalled €12 billion, a 15.9% decrease over the same period in 2008. The global economic slowdown continued to have a significant impact on demand for all Group businesses. However, the level of decline in some markets was more contained than for the first half, where performance was particularly negative in the first quarter. Group trading profit for the quarter was €308 million, compared with €802 million for the same period in 2008. Aggressive cost containment actions helped mitigate the effect of revenue declines and pushed trading margins up to 2.6%, a healthy improvement over Q2 (2.4%).

The third quarter closed with an operating profit of €267 million (€802 million for Q3 2008), including net unusual expenses of €41 million, primarily related to restructuring costs. Net financial expense for the third quarter totalled €164 million (€161 million for Q3 2008) and included a €34 million gain from the marking-to-market of two stock option related equity swaps (€22 million loss for Q3 2008). Net of this item, financial expense was up €59 million over the prior year, principally due to a higher level of debt. Profit before taxes was €128 million, compared with €675 million for Q3 2008, reflecting a significantly lower operating result. Income taxes totalled €103 million (€207 million for the third quarter of 2008) and related mainly to taxation of operations outside Italy. Net profit came in at €25 million (€66 million excluding unusual items), compared with €468 million for Q3 2008.

Group net industrial debt was substantially unchanged for the quarter. Actions to reduce working capital and disciplined capital spending meant capital absorption was limited compared with typical Q3 levels. Group liquidity was €8.4 billion at 30 September 2009 - €2 billion higher than 30 June level - with three major bond issues in excess of €3 billion being completed during the quarter.

For the first nine months of 2009, Fiat Group revenues totalled €36.5 billion, a decrease of 21.4% over the prior year. Group trading profit for the period was €570 million, down from €2,699 million for the first nine months of 2008. Aggressive cost containment measures limited the impact of declines in demand. Operating profit for the first nine months was €296 million, compared to €2,716 million for the same period in 2008. This decrease reflects the decline in trading profit (down €2,129 million) and the €291 million year-on-year difference in one-offs (net unusual income of €17 million for the first nine months of 2008 compared with net unusual expense of €274 million for 2009). For 2009, unusuals primarily consist of restructuring costs, provisions on aged inventory and provisions for residual values on leased vehicles for FGA and Iveco.

Net financial expense for the first nine months totalled €535 million (€602 million for the same period in 2008) and included a positive €87 million effect from the marking-to-market of two stock option-related equity swaps. A €164 million loss was recorded for the same item for the first nine months of 2008. Net of the effect of the equity swaps, financial expense for the first nine months increased €184 million, substantially due to the higher level of debt. The loss before taxes for the period was €248 million (profit before tax of €2,266 million for the same period in 2008), reflecting a significantly lower operating result and a decrease in investment income (down €161 million), partially offset by lower net financial expense. Income taxes totalled €317 million (€725 million for the first nine months of 2008) and related to taxable income of companies operating outside Italy and employment-related cash income taxes (IRAP) in Italy. There was a net loss of €565 million for the first nine months of 2009, compared with a profit of €1,541 million for the same period in 2008.

Despite the considerable decrease in business volumes and consequent effect on profitability, realignment of production levels (which had a positive impact on working capital) and disciplined management of capital expenditure, resulted in a slight improvement in net industrial debt (down €0.1 billion) compared with year end 2008.

For Q3 2009, Fiat Group Automobiles posted revenues of €6.5 billion, representing a slight decrease (-1.4%) over the same period in 2008 (+1.6% on a constant currency basis). During the quarter, the Sector delivered a total of 538,900 cars and light commercial vehicles, up 4.3% over Q3 2008. In Western Europe, deliveries increased 7.0% to 287,100 units, with strong volume growth in Italy (+13.1%), Germany (+20.5%) and the UK (+26.9%), partially offset by declines in Spain (-25.3%) and France (-8.6%).

For passenger cars only, Fiat Group Automobiles delivered a total of 464,300 units during the quarter, 10.0% higher than Q3 2008. Against an overall market increase of 7.5%, deliveries in Western Europe rose 16.5% to 252,800 units. Passenger car deliveries increased 20.4% in Italy, 42.4% in the UK and 48.8% in Germany - with increases significantly outpacing market growth in those markets - but decreased in France (-4.6%) and Spain (-19.6%).

FGA’s strong offering of environmentally friendly cars enabled the Sector to fully benefit from eco-based government incentives. Performance for the Fiat brand, in particular, was extremely positive. In Europe, the Fiat Panda and Fiat 500 continued to be the most sold A-segment cars and the Punto was one of the most sold cars in the B-segment.

During the third quarter, the Western European passenger vehicle market increased 7.5% year-on-year driven by scrapping incentives introduced by governments in several major markets. Incentives were particularly effective in Germany, where demand increased 26.1%. The French market also benefited from such schemes, with the market expanding 7.9% over Q3 2008. In Italy, scrapping incentives drove a 7.2% increase in demand for the period. Incentives introduced in May 2009 generated an increase in demand in the UK (+8.3%) and underpinned the stable year-over-year performance in Spain (-0.1%). In Brazil, demand was up 9.2%, aided by the extension of government incentives on new car purchases and a generally favourable macro-economic environment. Fiat Group Automobiles achieved a 32.8% market share in Italy (+1.1 percentage points over Q3 2008) and an 8.3% share in Western Europe (+0.4 percentage points). Relative performance was particularly strong in Germany (+1.1 percentage points to 4.3%) and share gains were also achieved in the UK (+0.7 percentage points to 3.9%). The Fiat brand increased its market share to 6.6% in Western Europe (+0.3 percentage points over Q3 2008) and 25.2% in Italy (+0.8 percentage points).

A total of 74,500 light commercial vehicles were delivered in Q3 2009, down 21.1% over Q3 2008. For Western Europe, deliveries were down 33.1% to 34,300 units. Fiat Professional’s share in Italy was 39.9%, down 2.6 percentage points, whereas for Western Europe overall, where the market contracted 25.2%, share was substantially stable at 12%. In Italy the commercial strategy for the compact van segment was oriented toward defending margins in anticipation of the launch of the bi-fuel CNG/gasoline Fiorino (exclusive to Fiat in this category) in the second half of September. In Brazil, deliveries for cars and light commercial vehicles increased 13.4% over Q3 2008. FGA maintained market leadership with a 24.5% market share (+0.1 percentage points) in an overall market which grew 7.8%.

Fiat Group Automobiles recorded a €155 million trading profit for Q3 2009, compared to the €190 million figure for the same period in 2008. Solid volume performance for passenger cars and cost containment measures partially offset a less favourable product mix, pricing pressure in Brazil and adverse currency movements.

In September, Fiat broadened its B-segment offering with the launch of the Punto Evo, a companion to the highly successful Grande Punto, which sets a new standard in innovation, safety and style. The “Evo” in the name highlights the technological progress and excellence represented by this model, not least with its extensive range of Euro 5 engines including the second-generation 1.3 MultiJet and the revolutionary new 1.4 MultiAir. The addition of a series of bi-fuel CNG engines gives the Punto Evo one of the most ecological and complete ranges offered in the segment. The Fiat Punto Evo is also equipped with advanced features such as the Start&Stop, the new “Blue&Me-TomTom” portable navigator, the “cornering” feature on the front fog lights and seven airbags.

The recently launched Trekking version of the Qubo offers excellent handling on all types of terrain and, at the same time, low level of emission and fuel consumption. There were also several new developments for Alfa Romeo during the quarter. These included the 105 hp and 135 hp versions of the MiTo 1.4 MultiAir, the first application of this revolutionary technology developed for gasoline engines. Also of note is the 170 hp “Quadrifoglio Verde”, a pure-bred sports car with the highest specific output ever recorded by an Alfa Romeo yet offering the fuel consumption and CO2 emission performance of an economy car. Abarth also presented two brand new designs: the Abarth 695 Tributo Ferrari and the Abarth 500 R3T, which will be used in the next promotional street racing trophy. Fiat Professional launched the Fiorino Metano, a new bi-fuel (CNG-gasoline) vehicle which is the only one of its type in the segment. Finally, already leader two years in a row, Fiat was once again confirmed as having the lowest average CO2 emissions amongst the top 25 selling brands in Europe for the first half of 2009. The data published by the research company JATO also shows that Fiat, with 129.1 g/km, is the only full-range brand to have already reached the average European target for 2015 of 130 g/km.

Fiat Group Automobiles achieved a 33.2% share of the Italian market (+1.3 percentage points over the first nine months of 2008), continuing a positive trend. In Western Europe, market share increased to 8.9% (+0.7 percentage points). Light commercial vehicle deliveries totalled 216,900 units for the first nine months of 2009, a decrease of 32.9% over the same period in 2008. In Western Europe, where overall market demand fell 31.6%, total deliveries decreased 45.5% to 105,500 units. Market share for Fiat Professional decreased to 40% in Italy (-3.2 percentage points) and rose to 12.8% in Western Europe (+0.5 percentage points). In Brazil, deliveries increased 2.7% for passenger cars and light commercial vehicles and the Sector maintained its market leadership with a share of 24.5%.

For Q3 2009, Ferrari reported revenues of €396 million, down 12% over the same period in 2008. The fall was attributable to lower sales volumes and a less favourable sales mix. Deliveries to the network declined 3.9% to 1,345 vehicles: 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 1,454 units (-4.3%). Ferrari closed the third quarter of 2009 with a trading profit of €52 million, compared to a trading profit of €79 million for the same period in 2008. The year-on-year decrease reflects the negative impact of volumes and product mix (both particularly favourable in Q3 2008), in addition to unfavourable currency movements. The decline was partially offset by increased efficiencies in production and overhead costs. The company presented the new Ferrari 458 Italia at the Frankfurt Motor Show. The vehicle represents Italy in both name and spirit: from its creativity to its capacity to innovate (the very latest chassis technology combined with sophisticated electronic traction control systems). Powered by a centre-mounted 4.5-litre 8-cylinder engine capable of delivering 570 hp, the Ferrari 458 Italia is a vehicle with exceptional performance: a top speed of more than 300 kilometres per hour and an extraordinary power to weight ratio. In addition, with Ferrari’s extensive competition experience, this extraordinary concentration of innovation boasts outstanding fuel performance for a supercar consuming just 13.3 l per 100 km.

For the first nine months of 2009, Ferrari recorded revenues of €1,287 million, down 9.3% over the same period for the prior year. A total of 4,490 vehicles (-6.9%) were delivered to dealers and 4,680 units (-6.9%) sold to end customers. Trading profit was €176 million for the first nine months of 2009, compared to €243 million for the same period in 2008. Lower volumes and a less favourable mix were partially offset by improved efficiencies, including costs related to Formula 1 activities.

For Q3 2009, Iveco reported revenues of €1.7 billion, down 29.7% year-over-year, with lower sales volumes reflecting the continued market decline. In percentage terms, the year-over-year decline was lower than for the first and second quarters of 2009. Iveco delivered 25,880 vehicles, down 35.2% over the same period in 2008. A total of 16,188 vehicles were delivered in Western Europe (-32.4%), with declines in all markets except Italy, where deliveries were substantially stable, albeit in comparison with very low Q3 2008 levels. Volumes declined 42.5% in Germany, 27.8% in France, 24.9% in Spain and 77.2% in the UK. Deliveries were also down for Iveco’s other markets, declining 69.8% in Eastern Europe and 33.5% in Latin America. In Western Europe, the market for ≥2.8 ton trucks and commercial vehicles contracted 34.4% over Q3 2008. There were declines in the light and medium segments of 30.1% and 34.0%, respectively, while the heavy segment experienced an even more marked decline of 47.0%. Registrations fell sharply in all major European markets: France (-34.0%), Germany (-32.2%), UK (-30.3%), Italy (-37.4%) and Spain (-43.6%), which had already experienced severe contractions in 2008. Iveco’s market share (≥2.8 tons) in Western Europe was 8.9% for the quarter, down 0.9 percentage points over the same period in 2008. Share in the light segment was down 0.6 percentage points, reflecting the continued competition from car-based “van” models. Share in the heavy segment (down 1.3 percentage points) was impacted by the significant drop in the Spanish market, but is recovering versus previous quarters. Share in the medium segment was down 2.6 percentage points, with the share decline in Germany not being fully compensated by the positive results achieved in Italy (+2.8% percentage points) and France (+7.9 percentage points).

Notwithstanding the significant decline in volumes, Iveco delivered a trading profit of €22 million in Q3 2009 (€181 million in 2008), thanks to realignment of production levels, rigorous cost containment measures, as well as margin support provided by after-sales activities, Latin America and the special vehicles business.

The EcoDaily was well received by the market (12,000 orders have been received in Western Europe since its launch in June) and Iveco presented two new products during the quarter. In Europe, Iveco Irisbus unveiled the Magelys HDH, a coach that belongs to an elite class of sophisticated vehicles designed for the long-distance tourist market in Europe. With three-axles, it is 14 metres long and powered by a six-cylinder Cursor 10 engine. In Brazil, a prototype of the Daily Electric was presented. Developed jointly by Iveco and Itaipu Binacional, which manages the world’s largest hydro-electric powerplant located near the Brazil/Paraguay border, the Daily Electric is the first zero-emission light commercial vehicle produced in Latin America. The Daily CNG was named ‘Green Van of the Year 2009’ by a prestigious UK trade magazine and Iveco won the ‘Transport Innovation of the Year’ award for Blue&Me Fleet, an advanced telematic fleet management system.

FPT closed the third quarter of 2009 with a trading profit of €19 million, compared to a profit of €21 million for the same period in 2008. Measures to reduce overhead, purchasing and manufacturing costs compensated for the drop in volumes and less favourable sales mix.

Developments in the area of diesel engines included launch of production of a Euro 5 compliant 1.3-litre Small Diesel Engine (in both 75 hp and 95 hp versions), equipped with the innovative Common Rail MultiJet II injection system, for application on passenger vehicles. The engine’s commercial launch was at the end of September on the Fiat Punto Evo. Industrial & Marine launched production on the 3-litre F1C light diesel engine, with twinstage turbo, which provides 170 hp of output and complies with the EEV (Enhanced Environmentally-friendly Vehicle) emissions standards, currently the strictest emissions standard in Europe. The first Fire MultiAir family gasoline engines were launched on the Alfa MiTo and Fiat Punto Evo, in both naturally-aspirated and turbo versions. During the quarter, in fact, FPT Powertrain Technologies received the ‘Technobest 2009’ award for the MultiAir’s innovative technology. Finally, at the Genoa International Boat Show, FPT presented 620 hp and 380 hp versions of the new C90 engine. This propulsion system demonstrates FPT’s capacity to develop new technologies and apply them to different engine types.

FPT reported €3,610 million in revenues for the first nine months of 2009, a 36.7% year-on-year decrease. Sales to external customers and joint ventures accounted for 16% of the total (22% for 2008). During the first nine months, Passenger & Commercial Vehicles reported revenues of €2,461 million (-17.6%) selling 1,693,000 engines (-13.6%) and 1,613,000 transmissions (-2.9%). Industrial & Marine had revenues of €1,141 million (-58.1%) delivering a total of 194,000 engines (-55.9%). FPT reported a trading loss of €65 million for the first nine months of 2009, compared to a trading profit of €155 million for the same period in 2008. The result was heavily influenced by the sharp decline in volumes and a less favourable mix, partially compensated for through increased efficiencies.

For Q3 2009, Magneti Marelli posted a trading profit of €21 million, compared to a profit of €48 million for Q3 2008. Trading performance was impacted by lower sales volumes and a less favourable product mix, partly offset by improved production and purchasing efficiencies and measures to reduce overhead costs. Product launches during the period included, above all, those linked to the Group’s vehicles. LED taillights for the Grande Punto, an exhaust system for the Alfa MiTo with 1.4 MultiAir, shock absorbers for the Fiat Punto Evo and for the Fiat 500 sold in Brazil, and an injector developed for Fiasa. Magneti Marelli also released several new engine control and lighting system components which have been developed and produced for other major automakers.

For the first nine months of 2009, Magneti Marelli reported revenues of €3,248 million (-24.5%). Magneti Marelli reported a trading loss of €18 million for the first nine months of 2009 compared to a trading profit of €165 million for the corresponding period in 2008. This decrease, which was particularly significant in the first quarter, is attributable to the sharp decline in volumes, offset in part by cost containment measures implemented.

After a two-year absence, Fiat Group decided to access the debt capital markets. In July and September, Fiat Finance and Trade Ltd. SA issued two bonds under the Global Medium Term Note programme. The first issue of €1,250 million, due in 2012 and paying a fixed coupon of 9%, was priced at 99.367%, with more than €10 billion in demand. The second issue of €1,250 million, due in 2014 and paying a fixed coupon of 7.625%, was priced at 99.498%, with demand at €8 billion. In August, CNH also completed the issue of $1 billion in senior notes, due in 2013 with a 7.75% coupon payable semi-annually, at an issue price of 97.062%.

In September, Fiat was included in the Dow Jones Sustainability World and Dow Jones Sustainability STOXX Indexes, in recognition of the fact that sustainability forms an integral, daily part of the Group’s way of doing business. The Company received a score of 90/100 compared with an average of 72/100 for all companies in the sector. The DJSI World and DJSI STOXX are two of the most prestigious stock market indexes which only admit companies that are leaders in terms of economic as well as social and environmental performance.

At the beginning of October, production of the C635, a new family of transmissions for medium-sized passenger vehicles, began at the FPT Powertrain Technologies plant in Verrone, Biella. Once fully operational, the plant will reach a production capacity of approximately 800,000 transmissions per year with a total workforce of approximately 100 people. The expansion is a result of the letter of understanding signed in 2008 between FPT, the Region of Piedmont, the Province of Biella and the City of Verrone. FPT Powertrain Technologies’ investment to set up the new production line, including machinery and R&D costs, will total €500 million. At the beginning of October, CNH and KAMAZ, a leading global heavy truck manufacturer, signed a heads of agreement in Moscow and announced an industrial and commercial alliance to further strengthen CNH’s leading position in Russia’s agricultural and construction equipment sector. Under the agreement, the two companies will set up an industrial joint venture whose initial objective will be to locally produce and distribute CNH agricultural and construction equipment in the Russian market. Production is planned to commence in 2010. The two companies will also integrate their respective networks to distribute CNH’s entire product range (both locally produced and imported agricultural and construction equipment) in the Russian Federation.

The Group delivered results in the first nine months of 2009 in line with its internal expectations, with the first quarter being characterised by erratic declines in demand, and the second and third showing 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 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 whole year.

On the basis of year-to-date results and barring unforeseen systemic shifts in demand, the Group reaffirms the following objectives for 2009 performance:
• Global demand for our products will decline ~20% compared to 2008.
• Group trading profit will be in excess of €1 billion.
• Group net industrial cash flow will be in excess of €1 billion, with net industrial debt levels below the €5 billion mark.