Fiat Group Automobiles (FGA) achieved revenues of €6.8 billion (+22.1%) on a total of 532,400 cars and light commercial vehicles delivered (+14.6% over Q1 2009), with demand positively impacted by the residual effect of eco-incentives in several Western European markets. Market share was 31.4% in Italy (-0.8 p.p.) and 8.6% for Europe overall (-0.3 p.p.) in highly competitive markets. In Brazil, Fiat increased deliveries 7.9% and maintained its leading market position.

Agricultural and Construction Equipment (CNH) revenues were €2.6 billion, in line with 2009 (+5.2% in USD terms). Construction equipment industry sales improved globally and CNH achieved share gains in the heavy segment in Western Europe and Latin America. Agricultural equipment revenues were down with strong sales and share gains for combines globally being more than offset by a weaker mix in the North American tractor market and soft demand in Europe in both segments.

Trucks and Commercial Vehicles (Iveco) reported an 11.2% increase in revenues to €1.7 billion, reflecting initial signs of a recovery in demand, albeit against extremely low 2009 levels. Total deliveries were up 25.3% to 26,919 vehicles, with a significant increase in the light segment (+41%) and more moderate improvement in the heavy segment (+9.5%). Sales volumes, however, remain nearly 50% below 2007/2008 levels.

Group trading performance was significantly stronger year-over-year at €352 million, predominantly reflecting higher volumes for all businesses. Fiat Group Automobiles reported a trading profit of €153 million (€30 million loss for Q1 2009) on the back of substantially higher volumes and an improved sales mix, with increased contribution from LCVs. CNH achieved a trading profit of €127 million (€49 million in Q1 2009). Cost containment and improved fixed cost absorption for Construction Equipment more than offset the negative volume and mix resulting from reduced agricultural equipment sales in North America and Europe. Iveco posted a trading profit of €3 million (€12 million loss in Q1 2009), mainly reflecting volume increases and manufacturing efficiencies, partially offset by lower prices in response to competitive pressure.

Net industrial debt at €4.7 billion (€4.4 billion at end of 2009), with normal seasonal working capital build contained through disciplined alignment of production and inventory levels to demand. Liquidity remained strong at €11.2 billion (€12.4 billion at 31 December 2009). The change over year-end 2009 was primarily attributable to repayment of a €1 billion bond.

For passenger cars only, Fiat Group Automobiles delivered 437,800 vehicles during the first three months, a 9.8% increase over the first three months of 2009. In Europe, a total of 276,200 passenger cars were delivered, representing an 8.4% gain year-over-year. Deliveries were up significantly in the principal markets: Italy (+26.3%), France (+13.1%), the UK (+41.3%), and Spain, where they essentially tripled. The exception to the trend was Germany (-72.6%), where the non-renewal of incentives sharply reduced sales in the smaller segments, where FGA’s presence is most significant.

The European passenger car market grew 9.5% over the first quarter of 2009, with performance varying between markets based on the level of advancement of incentive programmes. In Germany, especially, there was a 22.8% drop in demand following the conclusion of the incentive schemes at the end of 2009, which had a significant impact on the A segment. Continuation of government incentives contributed to the increase in demand in France (+16.9%) and other countries where incentives were not introduced until after the first quarter of 2009, such as the UK (+27.3%) and Spain (+44.5%), where the announcement of a VAT increase in July 2010 has also resulted in an acceleration of demand. In Italy, the market was up 23.3% for the quarter: government eco-incentives, which concluded at the end of 2009, continued to have a favourable impact on registrations in the first quarter of 2010, which resulted from the significant order intake experienced prior to the end of 2009. In Brazil, demand increased 13.9%.

In the first quarter, in a very competitive market environment, Fiat Group Automobiles share was 31.4% for Italy (-0.8 percentage points over Q1 2009) and 8.6% for Europe overall (-0.3 percentage points). The Sector achieved gains in Spain (+0.5 percentage points to 3.0%) and also in the UK (+0.3 percentage points to 3.0%), while share fell in France (-0.6 percentage points to 4.1%). In Germany, the sharp market decline in FGA's core segments determined the reduction in share to 3.0% (-2.5 percentage points). In Europe, the Fiat Panda was once again leader in its reference segment. The Lancia brand also had particularly positive performance, with registrations up 21% over 2009.

For Western Europe only (EU 15 + EFTA), Fiat Group Automobiles recorded an 8.7% share (down 0.3 percentage points over Q1 2009). A total of 94,600 light commercial vehicles were delivered in Q1, representing an increase of 43.8% over the first quarter of 2009. For Europe, deliveries were up 49.1% to 53,900 units. Approximately one-third of the increase is attributable to the fact that deliveries for Q1 2009 were particularly low due to dealer destocking actions. With the European market growing 5.2% overall, Fiat Professional achieved a 13.5% share (+1.4 percentage points). In Italy, market share increased to 45.3% (+5.3 percentage points). The introduction of the new Doblò, which was launched at the end of 2009, and the success of the CNG Fiorino in Italy both contributed to the brand's excellent first quarter performance. In Brazil, passenger car and light commercial vehicle deliveries increased 7.9% over the first quarter of 2009. Share decreased to 22.3% (-1.5 percentage points), with market supply of the new Uno expected in May. However, the Sector continued to hold its market-leading position.

The highlight for the quarter was the significant presence of FGA brands at the 80th Geneva Motor Show. On stage at the Swiss event was the Alfa Romeo Giulietta in its international debut. Following a presentation to the international press in mid-April, the new 5-door hatchback will be launched in several markets beginning in May. The Alfa Romeo Giulietta, released on the brand’s 100th anniversary, offers the maximum in performance and technology: from its engines, which represent the state-of-the-art in technology, performance and respect for the environment, to its new compact architecture complete with sophisticated suspension systems, active dual-pinion steering, high-quality materials and advanced production technologies.

Alongside the Giulietta was a MiTo equipped with the "Alfa TCT" (Twin Clutch Technology, an innovative automatic dual dry clutch transmission). The Swiss show was also the venue for the presentation of the Fiat Doblò Natural Power with 1.4-litre, 16-valve T-JET CNG/gasoline engine, confirming Fiat's undisputed leadership in factory-installed powerplants of this type. At the beginning of the year the brand also began sale of the 2010 model year Bravo, which has been enhanced in both style and content. At Geneva, for Lancia there was the debut of a special series Delta with new look and features and the limited edition Ypsilon ELLE. Also on display at Geneva was the Abarth Punto Evo, the high-tech sport version of the Fiat model presented last September. The power increase was achieved through an innovative 165 hp, 16-valve MultiAir 1400. An object of much admiration was the Abarth 500C, the first convertible released by the brand since its relaunch. In March, JATO named Fiat Automobiles, for the third year running, as having the lowest CO2 emissions among the top 10 selling brands in Europe with the lowest average CO2 emissions for cars sold in 2009: 127.8 g/km.

At the Geneva Motor Show in March, Ferrari presented the HY-Kers, a hybrid GT which benefits from eco-smart technologies developed in Formula 1 racing. Powered by two engines, one electric and the other a traditional V12, the car is a demonstration of the marque's skill in merging respect for the environment with pure driving pleasure. Geneva was also the venue for the debut of the Ferrari California with Start&Stop, while the Beijing Motor Show at the end of April will see the public unveiling of the 599 GTO, the highest performance vehicle in Ferrari's history to be produced in a limited series. The success of 8-cylinder models continued in the first quarter of 2010, with numerous awards and recognitions being received by the California and the F458 Italia.

For the heavy segment, share was up 1.0 percentage point on the back of positive performances in Italy (+4.2 percentage points), France (+1.8 percentage points) and the UK (+1.7 percentage points). In the medium segment, there was a 0.8 percentage point decrease, particularly impacted by performance of the Italian and UK markets. In this context Iveco managed to further reduce its overall inventory of new trucks and commercial vehicles, both at company and network level, reflecting achievement of its de-stocking prog

During the period, Iveco also provided vehicles for the Overland 12 expedition, to take place this year in Africa, and became Official Sponsor of the Fiat Yamaha Racing Team.

At the Geneva Motor Show, FPT presented an absolute first in gasoline engine technology: the new 85 hp two-cylinder Twin-Air. This engine combines the revolutionary MultiAir system with special fluid dynamics to achieve optimum fuel efficiency. Smaller (-23%) and lighter (-10%) than a 4-cylinder with equivalent performance, this new engine offers a significant reduction in CO2 emissions (up to 30%). The Twin-Air will debut on the Fiat 500 in September.

Also in Geneva, FPT Powertrain Technologies presented another important development in transmissions, the "Alfa TCT" (Twin Clutch Technology) to be mounted on the Alfa Romeo MiTo. This innovative transmission incorporates 23 patented technologies. In South America, the 1.0-litre Fire Low Friction and the Flexfuel versions of the 1.4-litre Fire Evo2 and the 1.6 & 1.8-litre E-Torq were launched.

In February, Fiat S.p.A. and Sollers signed a memorandum of understanding for the establishment of a global alliance for the production of passenger cars and SUVs. The new JV is expected to reach production capacity of up to 500,000 vehicles per year by 2016. Nine new models (C & D segment and SUV) will be sold in the Russian market, six of which will be based on a new global Fiat-Chrysler platform. A minimum of 10% of vehicles will be produced for the export market. The project will include new production facilities and a technology park for component production. The Russian government is expected to provide support for the joint venture through subsided long-term financing for the full investment required, estimated at €2.4 billion.

CNH and KAMAZ finalised a joint venture agreement for the production of agricultural and construction equipment in the Russian Federation. This followed a preliminary agreement signed in October 2009. The new company, CNH-KAMAZ Industrial BV, will be 50% held by CNH. JV will initially produce machinery for the Russian market and, subsequently, for other CIS markets. The planned initial investment of USD 70 million will provide annual production capacity of 4,000 units, including a family of 300 hp combines, two ranges of tractors in the 300-535 hp segment and construction equipment. Fiat Group Automobiles S.p.A. and Chrysler Group LLC took an additional step towards integrating their distribution activities in Europe. Starting from April 2010, FGA will commence commercial activities to support the sale and service of Chrysler, Jeep and Dodge branded products in several countries in Europe. The activities and employees of the Chrysler national sales companies in Europe will be gradually transferred to the corresponding FGA national sales companies. FGA Capital is already provider of financial services for Chrysler's European activities.

The Shareholders of Fiat S.p.A., which met in Turin on 26 March, approved the 2009 statutory financial statements and distribution of a gross dividend of €0.17 per ordinary share, €0.31 per preference share and €0.325 per savings share, payable from April 22nd. The aggregate dividend was €243.7 million (€237.1 excluding treasury shares currently held). Shareholders also approved amendments to the 2009-2010 Incentive Plan and renewed authorisation for the purchase of own shares for €1.8 billion (inclusive of the €656 million in treasury shares currently held); the buy-back programme remains on hold.

During the quarter, Fiat S.p.A. received the Sector Mover and Gold Class distinctions from SAM (Sustainable Asset Management), the sustainability-focused investment group which analyses the 2,500 largest quoted companies to determine their eligibility for inclusion in the Dow Jones Sustainability indexes. For 2009, Fiat was the best relative improver in sustainability performance within the Automobile sector (SAM Sector Mover).

2010 is positioning itself as a year of transition and stabilization. The Group expects all of its Sectors to improve performance over the prior year, with the exception of the Automobiles business, the performance of which will be impacted in the last 3 quarters of the year by the reduction and/or elimination of eco-incentives programs which underpin demand in Western Europe. The Group will continue to implement the rigorous cost containment action initiated as early as the latter part of 2008. The capital expenditures programs are expected to increase over the abnormally low levels of 2009, with the resumption of a normalized level of capital commitments across all Sectors, yielding a 30% to 35% rise in expenditures over 2009.