Operating Sectors The Fiat Group In 1999 - Fiat SpA

Operating Sectors

The Fiat Group in 1999

Contents

This Report is available on the Internet atwww.fiatgroup.com

Financial Highlights by Sector

The Fiat Group

Products and Services of the Group

Operating Sectors

Automobiles (Fiat Auto)

Ferrari and Maserati

Commercial Vehicles (Iveco)

Agricultural and Construction Equipment (CNH Global)

Metallurgical Products (Teksid)

Components (Magneti Marelli)

Production Systems (Comau)

Aviation (FiatAvio)

Rolling Stock and Railway Systems (Fiat Ferroviaria)

Publishing and Communications (Itedi)

Insurance (Toro Assicurazioni)

Services

Principal Fiat Group Companies

1

2

4

6

12

14

20

26

30

34

38

40

42

44

46

48

p

in millions of euros 1999 1998 1997 1996 1995

Operating income 788 746 1,791 932 1,717

Income before taxes 1,024 1,442 2,160 1,965 1,758

Income before minority interest 506 916 1,550 1,420 1,329

Group net income 353 621 1,248 1,225 1,109

Net financial position (Net borrowings) (4,031) 1,420 1,340 (1,142) (1,341)

Stockholders’ equityincluding minority interest 14,767 15,120 15,462 14,026 13,236

Group interest in stockholders’ equity 12,874 12,998 13,203 12,042 11,178

Cash flow (income before minority interest

plus depreciation and amortization) 2,860 3,226 4,184 3,867 3,501

Capital expenditures 2,712 2,418 2,398 2,746 2,918

Research and development 1,406 1,264 1,166 1,129 1,079

Operating income fromIndustrial Activities/Net revenues 1.9% 2.2% 4.4% 2.9% 4.8%

Operating income/Averagenet invested capital 4.8% 5.4% 12.2% 6.3% 12.3%

Income before minorityinterest/Net revenues 1.1% 2.0% 3.4% 3.5% 3.4%

Net income/Average stockholders’equity (after minority interest) 2.7% 4.7% 9.9% 10.5% 10.3%

Value creation (*) (480) (714) 144 (607) 26

(*) Difference between operating income for the fiscal year (including investment income) and the cost of average netinvested capital at an annual rate of 10% in 1999, and of 12% in the previous years.

Financial Highlights of the Fiat Group

Fiat S.p.A. adopted the euro as its reporting currency as of January 1, 1999, opting foran early use of this currency, as allowed under Legislative Decree No. 213/1998 “ProvisionsGoverning the Introduction of the Euro in the Italian National System.”

The Consolidated and Statutory Financial Statements at December 31, 1999 of FiatS.p.A. are therefore denominated in euros. To make the respective data comparable,the amounts for the previous years have been restated in euros using the fixed exchangerate of 1 euro = 1,936.27 lire established on December 31, 1998.

Research anddevelopment

number Companies Employees Facilities Centers

Italy 233 122,730 83 72

Europe excluding Italy 454 53,654 79 34

Mercosur 67 27,883 24 9

North America 161 9,379 38 12

Other regions 133 7,673 25 4

Total 1,048 221,319 249 131

Statistical data by geographical region

1997

242,322

1998

220,549

1999

221,319237,865

19961995

237,426

Number of Employees

Net Invested Capitalin millions of euros

1997

14,122

1998

13,700

1999 (*)

18,798

15,168

1996

14,577

1995

(*) Includes the controlling interest in the Case Groupacquired at the end of 1999 and valued at cost.

48,123

1999

45,769

1998

46,257

1997

40,244

1996

39,092

1995

Consolidated Revenuesin millions of euros

Financial Highlights by Sector

1

Operating income from

Industrial Activities/ Income beforeNet revenues Operating income Net revenues minority interest

1999 1998 1999 1998 1999 1998 1999 1998(in millions (in millions (in millions (in millions (in %) (in %) (in millions (in millions

of euros) of euros) of euros) of euros) of euros) of euros)

Automobiles (Fiat Auto) 24,101 24,859 (121) (108) (0.5) (0.4) (493) (258)

Commercial Vehicles (Iveco) 7,387 6,649 311 261 4.2 3.9 180 192

Agricultural and Construction Equipment (CNH Global) 5,246 5,127 371 452 7.1 8.8 216 507

Metallurgical Products (Teksid) 1,682 1,165 76 42 4.5 3.6 26 4

Components (Magneti Marelli) 4,062 3,793 108 56 2.7 1.5 107 21

Production Systems (Comau/Pico) 1,693 843 43 (1) 2.5 (0.1) (8) (6)

Aviation (FiatAvio) 1,361 1,361 109 60 8.0 4.4 61 79

Rolling Stock and Railway Systems (Fiat Ferroviaria) 375 389 13 18 3.5 4.6 3 (1)

Publishing and Communications (Itedi) 413 437 17 19 4.1 4.3 11 –

Insurance (Toro Assicurazioni) 3,922 2,959 (103) (168) n.m. n.m. 92 64

Miscellaneous and eliminations (2,119) (1,813) (36) 115 n.m. n.m. 311 314

Total for the Group 48,123 45,769 788 746 1.9 2.2 506 916

NumberCash flow Capital expenditures Net invested capital of employees

1999 1998 1999 1998 1999 1998 1999 1998(in millions (in millions (in millions (in millions (in millions (in millions

of euros) of euros) of euros) of euros) of euros) of euros)

Automobiles (Fiat Auto) 855 1,146 1,464 1,373 5,021 5,863 82,553 93,514

Commercial Vehicles (Iveco) 433 368 359 307 2,359 1,764 36,217 31,912

Agricultural and Construction Equipment (CNH Global) 333 624 178 151 5,777 1,123 19,049 21,344

Metallurgical Products (Teksid) 123 74 182 73 793 504 14,522 10,981

Components (Magneti Marelli) 310 254 209 222 1,289 1,270 25,613 29,398

Production Systems (Comau/Pico) 30 12 26 14 485 165 16,943 7,103

Aviation (FiatAvio) 145 167 42 36 163 159 5,590 5,962

Rolling Stock and Railway Systems (Fiat Ferroviaria) 18 15 11 12 29 94 2,109 2,294

Publishing and Communications (Itedi) 19 11 8 9 25 21 934 1,473

Insurance (Toro Assicurazioni) 120 89 97 25 311 327 2,907 2,869

Miscellaneous and eliminations 474 466 136 196 2,546 2,410 14,882 13,699

Total for the Group 2,860 3,226 2,712 2,418 18,798 13,700 221,319 220,549

Being aGroup

ValueCreation

Achievingcompetitiveexcellence

Focusing andmotivatingmanagement

Inno

vatin

g ou

r pr

oduc

ts

Reduc

ing c

omplex

ity

Lengthening the

value chain

Globalizing our activities

Focusing on our

core businesses

Enhan

cem

ent o

f

hum

an re

sour

ces

Customer satisfaction

VALUESSTRATEGIES

1 – Paolo Annibaldi, Corporate Senior Vice President External Relations and Communication Fiat S.p.A.2 – Giancarlo Boschetti, Chief Executive Officer Iveco N.V.3 – Paolo Cantarella, Chief Executive Officer Fiat S.p.A.4 – Damien Clermont, Chief Financial Officer Fiat S.p.A.5 – Luca Cordero di Montezemolo, Chairman and Chief Executive Officer Ferrari S.p.A.6 – Pier Luigi Fattori, Corporate Senior Vice President Human Resources Fiat S.p.A.7 – Paolo Fresco, Chairman Fiat S.p.A.8 – Carlo Gatto, Chief Administration Officer Fiat S.p.A.9 – Francesco Paolo Mattioli, Executive Vice President Fiat S.p.A.

10 – Paolo Monferino, Executive Vice President Fiat S.p.A.11 – Umberto Quadrino, Co-Chairman CNH Global N.V.12 – Jean Pierre Rosso, Chairman and Chief Executive Officer CNH Global N.V.13 – Roberto Testore, Chief Executive Officer Fiat Auto S.p.A.

1

7

2

8

3

9

4

10

5

11

6

12 13The Management

Main acquisitions/agreements strengthening the Group competitivenessLengthening

Leadership Globalization the value chain

Fiat Auto Joint venture with Yuejin Motor Company (China) ●

Set up of Fiat Auto Egypt Industrial ●

Strategical industrial alliance with General Motors ● ● ●

Iveco Acquisition of a majority interest in Fraikin (France) ●

CNH Global Acquisition of a majority interest in Case Corporation (United States) ● ● ●

Teksid Acquisition of a majority interest in Meridian Technologies (magnesium) ● ●

Magneti Marelli Joint venture with Bosch (lighting) ●

Acquisition Seima Group (lighting) ●

Comau Acquisition Pico Group (United States) ● ●

Acquisition of a majority interest in Renault Automation (France) ● ●

Acquisition of Sciaky activities (France) ●

Toro Assicurazioni Acquisition of the French operations of the Guardian Group ●

T H EFIAT

2

Established in 1899, Fiat was one of the founders

of the European automobile industry. Since its

inception, the Company followed a two-prong

growth strategy — penetration of foreign markets

and focus on innovation — which characterized its

subsequent development and translated into the

manufacturing of high-tech quality products and

the adoption of the most innovative industrial and

organizational systems.

Fiat is a lot more than just cars. The Company

leveraged its expertise in an original and perhaps

unique way among international groups, expanding

its mission to include every area of mobility: from

cars to aircraft, from trucks to trains, from farm

tractors to marine engines and, in more recent

years, even space launchers. Fiat’s industrial

diversification continued at an increasingly rapid

pace, with a growing presence in metallurgical

products and components, followed later on by

production systems, insurance and support

services.

15% Services (*)85% IndustrialActivities

(*) It includes the following service activities operated by the IndustrialSectors: financial, insurance and mobility services supplied by Fiat Auto,Iveco and CNH Global; Magneti Marelli’s quick-service centers and infomobilityservices; Comau’s plant maintenance operations, etc.

Revenues by Sector

Commercial Vehicles (14%)

Agricultural andConstructionEquipment (10%)

Other IndustrialSectors (17%)

Other companies (4%)

Automobiles (45%)

Insurance (7%)

Ferrari and Maserati (2%)

Publishing and Communications (1%)

Metallurgical Products (3%)

Components (7%)

Production Systems (3%)

Aviation (3%)

Rolling Stock and Railway Systems (1%)

Service Sectors (8%)

creating increasingly complex competitive challenges. In its endeavors, it is bolstered by the values it has

consistently applied over its one-hundred-year history and which will guide it into the future: value creation,

customer satisfaction, and the enhancement of its human resources.

This approach is dictated by the pursuit of a specific goal: the achievement of competitive excellence, which

means the attainment of a leadership position in those markets where the Group chooses to operate.

To translate these values into concrete actions, the Company is committed to fully implementing its strategies:

focusing on its core businesses, globalizing its activities, lengthening the value chain and innovating its products.

The Fiat Group is pursuing aggressively all these main avenues of growth. Its commitment is demonstrated

by the major acquisitions and alliances it has concluded, the increasingly balanced geographic mix of its

revenues, the expanding range of its services, the streamlining of its organization, and the successful launch

of new products.

During its long history, Fiat has often been ahead of its time, anticipating trends and repeatedly transforming

itself in an effort to seize every available growth opportunity. The Company has chosen to go down this road

once again, as it continues the journey and the industrial adventure it started in Turin over a century ago.

Fiat was the main force behind the development of a mass

automobile market in Italy, driving the expansion of the national

economy and contributing to the enhancement of its

competitive position in Europe and the rest of the world. This

was particularly true in Southern Italy, where Fiat stimulated

economic growth with the construction of one of its biggest

manufacturing hubs.

The Group also provided a significant contribution to the

economic expansion of emerging countries, where the

Company used the expertise it developed with its early

automotive ventures to implement its overall growth strategy.

Fiat entered the second century of its life against the backdrop

of a profound transformation that is reshaping industry and

G R O U P

Revenues by geographical region of destination

Europe excluding Italy (41%)

Italy (38%)

Other regions (21%)

Sales trend of the last ten years

1990

in millions of euros

0

1991 1992 1993 1994 1995 1996 1997 1998 1999

10,000

20,000

30,000

40,000

29,546 29,17430,526

28,176

34,005

39,092 40,244

46,257 45,76948,123

Abroad

Italy

Revenues by geographical region of origin

Europe excluding Italy (22%)

Italy (61%)

Other regions (17%)

PRODUCTS OF THE GROUPAgricultural and Construction EquipmentThe Sector is headed by CNH Global N.V., anew company created in 1999 through themerger of New Holland and Case. It operatesin the field of tractors and agricultural equipmentwith the New Holland, Case, Case IH, DMI,AFS, Flexi-Coil and Steyr brands. Its constructionequipment products are sold under the NewHolland, New Holland Construction, Case,Fermec, Link-Belt, O&K, FiatAllis and Fiat-Hitachibrands. CNH Capital offers a broad range offinancial services to customers worldwide.

Other Industrial SectorsThese Sectors, which include MetallurgicalProducts, Components, Production Systems,Aviation and Rolling Stock and Railway Systems,offer the following products and services:

• Cast-iron and aluminum engine blocks andcylinder heads, other cast-iron components,transmission components, cast-iron andaluminum gearboxes and suspension systems,and magnesium bodywork components.

• Motor vehicle components and systemsin the areas of powertrain, suspensions,interior/bodywork, and electronics, as wellas aftermarket, quick repair and infomobilityservices.

• Industrial automation systems for theautomotive industry, including productand process engineering, logistics andmanagement, program management,manufacturing, installation and productionstart-up, and maintenance.

• Components and systems for airplanesand helicopters, ship propulsion turbines,propulsion systems for launchers and satellites,and aircraft engine overhaul services.

• Railway and urban transit transportationsystems, rolling stock of different types,railway bogies, trams and subway systems.

ServicesThese Sectors, which include Publishing andCommunications and Insurance, are active inthe following principal areas:

• Publication of the daily La Stampa and salesof advertising space for multimedia customers.

• Full range of casualty and life insuranceproducts, bankassurance products througha joint venture with Banca di Roma, salesof Toro Targa Assicurazioni insurance productsby a joint venture with Fiat Auto that operatesthrough the Fiat dealer network.

The Companies of the Fiat Group are organized into10 operating Sectors that manufacture automotiveproducts and provide services to customers in morethan 180 countries throughout the world. Drivenby an unflagging determination to achieve marketleadership and excel in customer satisfaction,the Group engages in the areas of automobiles,commercial vehicles, agricultural and constructionequipment, components, production systems, aviation,rolling stock and railway systems, insurance andfinancial services, and publishing.

Commercial VehiclesThe Sector designs, produces and sells a completerange of commercial vehicles under the brandsIveco, Seddon Atkinson, Iveco Pegaso and IvecoFord, as well as buses (through a joint venturewith Renault V.I.) under the Iveco brand, fire-fightingequipment under the Camiva, Iveco and Magirus

brands, and diesel engines under the Aifo brand. Through Transolver, the Sector furnishes afull spectrum of financial services, includinglong-term leases. The Sectorlead company is Iveco N.V.

Through Targa Services, the Sector offers its suppliers, dealersand customers a complete range of automotive services.Financial services are provided by Fidis. The Group also controlsFerrari and Maserati, which manufacture sports and luxury cars.

AutomobilesThe Group’s automobile operations are carried out primarilyby Fiat Auto S.p.A. and its subsidiaries, which sell cars underthe Fiat, Lancia and Alfa Romeo brands, and light commercialvehicles under the Fiat brand.

4

AND SERVICESLengthening the Value ChainThe Group devotes significant attention to lengthening its value chain by developingservices and solutions that are linked to the products it sells: financial and insuranceservices and mobility services for Fiat Auto, Iveco and CNH Global; aftermarket servicesand supply of quick repair and infomobility services for Magneti Marelli; maintenanceservices for Comau; engine overhaul services for FiatAvio; and mileage-based maintenanceand support services for Fiat Ferroviaria.

Support Services for the Group’s Industrial ActivitiesThe services that support the Group’s industrial activities, which in the past were structuredat the Sector and country level, have been re-engineered with the establishment ofdedicated organizational units that can supply better quality services at lower costs,primarily in the areas of information and communication technologies, real estate,administration, finance, and personnel management and training.

Automobiles

FIAT AUTO

6 7

Fiat built its first car in 1899.The Lingotto, the Company’sfirst mass-production carfactory, was inaugurated inTurin in 1923. It now housesthe Group’s headquarters.Other plants were later openedin Turin (Mirafiori in 1939 andRivalta in 1967), followed byadditional facilities in Italy andin the world. The acquisitionsof Lancia S.p.A. in 1969 andAlfa Romeo in 1986 representlandmark events in theCompany’s history. Fiat’sdomestic markets extendbeyond Italy, to include theMercosur countries, where itbuilt factories in 1960 (Argentina)and 1976 (Brazil), and Poland,where in 1993 it purchased FSM’sautomotive activities. In 1979,at the end of a decentralizationprocess launched in 1973, FiatS.p.A. divested its automotiveoperations and transferred themto Fiat Auto S.p.A.

Highlights of the year

Marketing of the Lancia Lybra and new Fiat Punto, which were

introduced at the events celebrating Fiat’s Centennial, got underway

in the second half of 1999. These models were well received

by motorists, as demonstrated by brisk sales in the closing months

of 1999 and the beginning of 2000.

New companies established in 1999 include a 50-50 joint venture

between Fiat Auto and Yuejin Motor Corporation, which will

manufacture cars in China, and Fiat Auto Egypt Industrial Company

SAE, which will manufacture and distribute World Car models

for the local market. This family of vehicles (Palio, Siena and Palio

Weekend), which are built at different factories throughout the

world, is intended to drive Fiat Auto’s expansion in the emerging

countries, where the growth potential is greatest.

The Sector is studying with great interest potential opportunities in Russia. It

recently confirmed that it looks forward to the start of operations at Zao

Nizhegorod, its joint venture with OAO Gaz and EBRD, but is adjusting the

investment and production schedules to accommodate changing conditions

in the local automobile market.

On March 13, 2000, Fiat and General Motors, the world’s largest automotive

company, announced a strategic industrial alliance. General Motors will acquire

20% stake of Fiat Auto in exchange for the acquisition of about 5.1% of GM’s

capital stock. Fiat S.p.A. will thus become General Motor’s largest industrial

stockholder.

Revenues by geographical regionof destination

Employees by geographical region

Italy

Rest of Europe

Rest of the world

Principal companies, production facilities and sales networks

Europe

Italy● Fiat Auto Turin

Termoli (CB) Arese (MI) Rivalta (TO)

Termini Imerese (PA)Verrone (VC)

Cassino (FR) Pomigliano d’Arco (NA)

● FMAPratola Serra (AV)

● SataMelfi (PZ)

◆ SevelAtessa (CH)

France◆ Sevelnord

Lieu-Saint-Amand

Poland● Fiat Auto Poland

TychyBielsko-Biala

Russia■ Zao Nizhegorod Motors

Nizhnjy Novgorod

Mercosur

Argentina● Fiat Auto Argentina Cordoba

Brazil● Fiat Automoveis

FIASABetim (Minas Gerais)

Other regions

China◆ Jiangsu Nanya

AutoNanjing

Egypt■ El Nasr Automotive

Manufacturing

Morocco◆ Somaca

Casablanca

India● Ind Auto

Lal Bahadur Shast(Maharastra)

Pakistan■ Raja Autocars

Turkey◆ Tofas

Bursa

Vietnam■ Mekong Corporation

● subsidiary◆ affiliated company■ licensee

Italy Rest of Europe Rest of the world Total

Production facilities 16 3 4 23

R&D centers 12 – � 1 13

Dealers 692 2,020 859 3,571

Roberto Testore,Fiat Auto’s Chief

Executive Officer.

Multipla Bipower

Operating Sectors – Automobiles

20%

13%

67%

15%

43%

42%

8 9

Innovation applied to the development, styling and

manufacturing of new products is a primary factor

in achieving customer satisfaction and gaining a

competitive advantage. As a result, it represents a

core value of this Sector’s growth strategy. Over the

last five years, this approach has enabled Fiat Auto

to earn Car of the Year honors for three of its models:

the Fiat Punto in 1995, the Fiat Bravo-Brava in 1996,

and the Alfa Romeo 156 in 1998.

In 1999, the new Fiat Punto and Lancia Lybra also

received numerous important awards, confirming the

growing success they are achieving in the markets

where they have been introduced.


Products

Automobiles

Full-size166 Lancia k

Lancia k SW

Intermediate156 Lybra

Lybra SWMarea

Marea Weekend

Intermediate/Compact146 Palio Weekend

Siena145

Bravo - Brava

SubcompactLancia Y Punto

Palio

City subcompactPanda

Seicento

Niche Products

Luxury and Sports carsLancia k coupéGTV

SpiderBarchetta

Punto Cabrio

Coupé

MinivansLancia Z Ulysse

Multipla

Light Commercial Vehicles

ScudoFiorino

Ducato

Strada

156 Sportwagon*

(*) Distribution started in 2000.

Fidis is the lead company of all the financial service

units which, within the scope of Fiat Auto’s operations,

offer products designed to support automobile sales to

consumers, and help Fiat Auto dealers and the suppliers

of the Fiat Group in general. Fidis is present directly

or through cooperation agreements in four continents.

The portfolio of loans handled in 1999 averaged 17

billion euros, including 10.8 billion euros in financing

provided to end customers, 3.9 billion euros granted

to the sales network and 2.4 billion euros loaned to

suppliers.

Formula, an innovative financial product that offers

end customers a wide range of options upon expiration

of the financing contract, has grown particularly well

in recent years. In the area of network financing,

Fidis continued to develop its traditional inventory

financing products and now finances about 90% of

the vehicle inventories purchased by dealers.

Fidis has achieved significant growth in financing

provided to Group suppliers, expanding both traditional

services like factoring and more innovative support

activities. This was accomplished through focused

programs that targeted domestic and international

expansion, including, in particular, financing provided

to several Fiat Auto suppliers for the construction of

new production facilities in Argentina, Brazil and India.

Service Activities

Highlights

in millions of euros 1999 1998 1997

Net revenues 24,101 24,859 26,202

Operating income (loss) (121) (108) 758

As a % of revenues (0.5) (0,4) 2,9

Income (loss) beforeminority interest (493) (258) 402

Cash flow 855 1,146 2,068

Capital expenditures 1,464 1,373 1,341

Research and development 711 608 535

Net invested capital 5,021 5,863 5,992

Number of employees 82,553 93,514 118,109

Production of Fiat Auto and its subsidiariesAutomobiles and Light Commercial Vehiclesin thousands of units 1999 1998 1997

Fiat 1,165.2 1,154.7 1,331.2

Lancia Autobianchi 160.1 175.4 181.7

Alfa Romeo 208.3 197.7 160.6

Total Western Europe 1,533.6 1,527.8 1,673.5

Brazil 391.6 393.0 581.7

Poland 343.8 336.7 327.9

Argentina 42.8 93.4 95.7

Total 2,311.8 2,350.9 2,678.8

Other regions 41.2 38.1 –

Grand total 2,353.0 2,389.0 2,678.8

Sales Performance - Automobiles and Light Commercial Vehicles

in thousands of units 1999 1998 1997

France 151 152 120

Germany 185 195 168

Great Britain 96 109 101

Italy 955 951 1,136

Spain 73 67 53

Rest of Europe 216 210 172

Western Europe 1,676 1,684 1,750

Poland 177 160 178

Brazil 304 365 509

Rest of the world 171 188 203

Total sales 2,328 2,397 2,640

Affiliated companies 59 89 99

Grand total 2,387 2,486 2,739

10 11

In 1999, the automobile market continued to expand in

Europe, where it grew by 5% marking the sixth consecutive

up year, and in North America. However, demand was down

about 18% for the year in Brazil and Argentina. Competitive

price pressure increased steadily in Europe, especially in

Italy, with a negative impact on the level of profitability.

Fiat Auto sold a total of 2,328,000 vehicles, compared with

2,397,000 in 1998. Lower sales in South America account

for most of this 2.9% decline.

Consolidated revenues of Fiat Auto amounted to 24,101

million euros, showing a slight decline compared with 1998.

The Sector reported an operating loss of 121 million euros,

compared with a loss of 108 million euros in 1998. However,

operating margins, which had been deteriorating during the

first half of the year, improved sharply in the closing months

of 1999, owing to the good performance of new models.

Performance in 1999

Fiat Auto continues to be firmly committed to

expanding its range of services. Motorists who visit

one of the Company’s sales outlets must be able

to find solutions to the numerous and increasingly

complex needs that will arise while they own their

cars. The wisdom of this strategy is demonstrated

by the success of Targa Services in its first year of

activity.

New services like Targa Rent, which offers short-term

rentals of Fiat Auto vehicles through the dealer

network, have been added to roadside assistance,

insurance programs, authorized body shops and

maintenance centers.


The Sportronic electronic automatic gearbox

combines the benefits of an automatic

transmission with the advantages of a stick

shift. It can be set in either fully automatic

(position A) or sequential (position S) mode.

Other Companies

FERRARI

12 Operating Sectors – Ferrari and Maserati 13

The Ferrari Team was founded inModena in 1929 to help memberscompete in car races, initially withAlfa Romeo automobiles. The firstFerrari-built sports car raced in the1940 Mille Miglia, and in 1943 theproduction facilities were moved toMaranello. The company officiallyadopted the Ferrari name and anew model, the 125 Sport, madeits debut in 1947. Since then, Ferrariautomobiles, with some of theworld’s greatest drivers at thewheel, have become legendary,winning more than 5,000 racesat racetracks everywhere on theplanet. Ferrari’s achievementsinclude 9 Formula 1 World Drivers’Championships, 14 Manufacturers’World Championships, 3 Formula 1Constructors’ Championships and,as of the end of 1999, 125 victoriesin Formula 1 Grand Prix races.In 1969, Enzo Ferrari sold 50% ofhis company to Fiat, which increasedits interest to 90% in 1988.In 1997, Ferrari purchased 50%of Maserati, another historicaland prestigious Italian brand,and gained full control of thecompany in 1999.

Highlights of the Year

1999 was a favorable year from every standpoint. Ferrari launched

its most important product, the 360 Modena, and sales rose to

5,588 units, up from 4,267 in 1998. The total includes 3,735

Ferrari cars and 1,853 Maserati automobiles. During the year,

Ferrari purchased the 50% of Maserati it did not own. This

positive development will enable Ferrari to realize considerable

synergies and revitalize the Maserati brand through a program

of industrial and commercial restructuring.

The Ferrari Racing Team was particularly successful in 1999,

winning back the Formula 1 Constructors’ Championship after

16 years.

At the consolidated level, Ferrari/Maserati reported revenues of 758 million euros

and operating income of 24 million euros.

Significant events that occurred in the early months of 2000 include the introduction

of the 360 Spider at the Geneva Auto Show, rising sales to end customers, with

motorists buying twice as many Maseratis as in the first two months of 1999,

and the outstanding performance of the racing team in the first Grand Prix races

of the current Formula 1 Championship.

Ferrari: Automobile sales bygeographical region of destination

Maserati: Automobile salesby geographical region

Italy

Rest of Europe

Rest of the world

Highlights

in millions of euros 1999 1998 (*) 1997

Net revenues 758 617 539

Operating income 24 11 36

As a % of revenues 3.1 1.9 6.6

Cash flow 61 47 58

Capital expenditures 63 61 50


Net invested capital 185 170 162


(*) Figures do not include Maserati.

Ferrari makes exclusive cars, individually crafted

in limited series, for racing drivers, car enthusiasts

and collectors. Racing is the very reason of its

existence, enabling the Company to offer motorists

the ultimate in automotive performance. Ferrari is

the leader of its market segment.

Maserati automobiles are beguiling machines, made

in small series for car connoisseurs. Its prestigious

models are noticeable for their distinctive and

elegant styling and performance, which are

outstanding when compared with other models

in their class.

Products

Luca Cordero di Montezemolo,Ferrari’s Chairman and CEO.

MASERATI

Ferrari 360 Modena Berlinetta powered by an eight-cylinder 3586cm3 engine with output of 400 bhp (manualor F1-type gearbox)

456M GT/GTA 2+2 coupé powered by a 12-cylinder 5474cm3 engine with output of 442 bhp (manualor automatic)

550 Maranello Berlinetta powered by a 12-cylinder 5474 cm3 engine with output of 485 bhp (top speed 320 km/h)

Maserati Quattroporte Saloon powered by a V8 3217 cm3 engineEvoluzione with output of 335 bhp (manual or automatic)

3200 GT/GTA Coupé powered by a V8 3217 cm3 engine with output of 370 bhp (manual or automatic)

Product range

United States

10%

27%

46%

17%

16%

67%

17%

The 5474-cm3 65° V12 engine that powersthe 550 Maranello.

Trucks Commercial Buses Defense Firefighting Enginesvehicles vehicles vehicles

Europe Italy Astra V.I. ●

Iveco Aifo ●

Iveco Mezzi Speciali ●

Iveco ● ● ● ●

Irisbus Italia ●

Austria Lohr-Magirus ●

Czech Republic Karosa ●

France Camiva ●

Iveco France ●

Irisbus France ●

Heuliez Bus ●

Germany Brandshutz Gorlitz ●

Iveco Magirus Brandsch. ●

Iveco Magirus ●

Great Britain Seddon Atkinson Vehicles ●

Yugoslavia Zastava-Kamioni ●

Spain Iveco Pegaso ● ●

Irisbus Iberica ●

Ukraine Iveco-Kraz ● ●

Iveco Motor-Sich ●

Mercosur Argentina Iveco Argentina ●

Brazil Iveco Fiat Brasil ●

Venezuela Iveco Venezuela ●

Other regions Australia Int. Trucks Australia ● ●

China Naveco ●

Ethiopia Amce - Autom. Manuf. ●

India Ashok Leyland ●

Turkey Otoyol Sanayi ●

Commercial Vehicles

IVECO

14 15

Iveco (Industrial VehicleCorporation), a wholly-ownedsubsidiary of Fiat S.p.A., wascreated in 1974 as a result ofan agreement between Fiatand Klockner-Humboldt-Deutz, a German company.The new entity absorbed thecommercial vehicle activitiesof five different companies:Fiat, Lancia, OM, MagirusDeutz and Unic.OM, the oldest of thesecompanies, was founded in1849. Since its inception,Iveco adopted an innovativeindustrial organization,leveraging the availablesynergies and economiesof scale. In 1991, it took overEnasa-Pegaso, Spain’s largestmanufacturer of commercialvehicles. During the 90’s,Iveco expanded its internationalpresence, establishing jointventures and new companieson every continent. In 1998,together with Renault itestablished Irisbus, a jointventure with global reachto which both companiescontributed their busoperations.


During 1999, Iveco continued to implement a

strategy designed to foster its international

expansion and lengthen the value chain by offering

customers a comprehensive range of services.

In December 1999, it acquired a controlling interest

in the Fraikin Group, the unchallenged leader in

the French market for long-term leasing of

commercial vehicles and an established provider

of rental and fleet management services.



Italy

Rest of Europe

Rest of the world




R&D centers 11 12 2 25

Dealers 89 378 189 656

Operating Sectors – Commercial Vehicles

Irisbus, a recently established 50-50 joint venture

with Renault, continued to grow, taking over Ikarus,

a Hungarian bus manufacturer.

Capital investment programs carried out during

1999 were focused primarily on the startup of

facilities that will manufacture Iveco engines and

the development of a new factory for the production

of Daily and Ducato commercial vehicles, which

the Sector is building through a joint venture with

Fiat Auto, at Sete Lagoas, in the Brazilian state of

Minas Gerais.

Giancarlo Boschetti,Iveco’s Chief

Executive Officer.

9%

44%

47%

14%

27%

59%

16 17

The new Daily was successfully introduced

throughout Europe in June 1999 and was later

honored as Van of the Year 2000.

During the year, Iveco’s range of heavy-load

vehicles grew to include the Euromover, a

low-cab model specifically designed for

municipal utilities.

The Sector also expanded its intermediate range, with the

introduction of the Eurocargo 120 EL models, which, with

their low beds and easy cab access, are particularly suited

for urban freight distribution.

The Sector also introduced the Cursor engine. This new

10-liter powerplant, with an output of 430 bhp, follows the

extremely successful Cursor 8, which was launched in 1998.


Products

Trucks Name Curb weight in tons Engine output in kW

Heavy-load road vehicles Eurotech 18-26 175-309

Eurostar 18-26 276-380

Seddon Atkinson 18-30 118-328

Heavy-load quarry/construction vehicles Eurotrakker 18-40 184-345

Astra 18-40 254-380

Intermediate vehicles Eurocargo 06-26 085-196

Eurocargo 4x4 10-14 105-167

Commercial Vehicles Name Curb weight in tons Engine output in kW

Daily Classe L 3.2 63-78

Daily Classe S 3.5 63-92

Daily Classe C 3.5-5.2 63-92

City and long-distance buses

Defense vehicles

Firefighting equipment

Engines Family Number of cylinders Engine output in kW

8100 4 in line 60-92

8000 4-6 in line 85-100 105-167

8360 6 in line 161-196

8460 6 in line 192-276

8210 6 in line 225-345

8280 8 V 260-378

Cursor 8 6 in line 180-259

Cursor 10 6 in line 287-316

Highlights


Net revenues 7,387 6,649 5,850



Income (loss) beforeminority interest 180 192 174

Cash flow 433 368 374



Net invested capital 2,359 1,764 1,440


18 19

The EuroTech and EuroStar heavy-load

vehicles with Cursor engines are

becoming the trucks of choice for

long-range and domestic freight hauling.

The heavy-load vehicle range features Cursor

10 engines and a number of other innovations.

These new engines have been designed

specifically for long-distance tractor trailers, a

key segment in Europe of the heavy-load market.

In 1999, the European market for commercial vehicles continued

to grow at the rapid pace it had experienced the previous year,

consolidating the expansionary trend that started in 1994. In

Western Europe, demand for commercial vehicles with a curb

weight equal to or greater than 3.5 tons totaled about 630,000

units, up 10.8% over the previous year. With the exception of

Great Britain (-2.8%), all European markets turned in a positive

performance. Particularly good results were achieved in Italy

(+24.8%) and Spain (+22.2%). Demand was also up significantly

in Germany (+13.6%) and in France (+12.4%).

Overall, Iveco sold 149,900 vehicles in 1999, or 9.6% more than

in 1998. Counting the contribution of joint ventures and licensees,

unit shipments totaled 192,000 vehicles, about the same as in

1998.

The Sector’s financing activities continued to grow both internally,

with the introduction of new products and the establishment

of new companies (Transolver Service GmbH in Germany and

Transolver Service S.A. in Spain), and through acquisitions (Fraikin).

The Sector’s net revenues amounted to 7,387 million euros,

or 11.1% more than in the previous fiscal year.

At 311 million euros (+50 million euros over 1998) operating

income was equivalent to 4.2% of revenues, up from 3.9% in

1998, owing to the beneficial effects of higher volumes and lower

product costs and overhead.�

Performance in 1999

Service Activities


In many businesses the notion that in certain cases

it is more efficient to pay for a service rather than to

purchase an asset has become an established belief.

Iveco has responded to the needs of the market by

creating Transolver, a company focused on supporting

the Sector’s marketing activities with a complete

package of products that can be sold by its

distribution system. Transolver includes Transolver

Finance, which offers its customers financing and

leasing options, and Transolver Services, which

provides vehicle rental services.

The acquisition of Fraikin is an example of this strategy

focused on expanding the company’s distribution

activities and services.

During 1999, the Transolver companies that provide

financing and rental services executed contracts

covering more than 22,500 new and used vehicles,

or 6% more than in 1998. In Western Europe,

Transolver’s penetration of the financing market rose

to 27% of new vehicles sold.

Sales Performance - Units sold

During 1999, the Sector’s profitability was adversely affected

by the phaseout of the old Daily line and the costs incurred

to launch the new range of these vehicles.

in thousands of units 1999 1998 in %

France 20.1 16.3 23.3

Germany 16.9 16.6 1.8

Great Britain 13.7 15.6 (12.2)

Italy 41.5 37.2 11.6

Spain 15.0 12.9 16.3

Western Europe 119.8 111.2 7.7

Rest of the world 30.1 25.6 17.6

Total sales 149.9 136.8 9.6

Joint ventures (*) 42.1 56.5 (25.5)

Grand total 192.0 193.3 (0.7)

(*)1998 data do not include Naveco sales (20,600 units).


On November 12, 1999, New Hollandand Case Corporation completed themerger of their respective operations.This transaction created CNH Global(CNH), the largest manufacturer ofagricultural equipment in the world,one of the top international manufac-turers of construction equipment andone of the world’s largest equipmentfinance companies, with the widestgeographical reach of any companyin its industry. CNH distributes its

strong, globally recognized brands in over 160 markets through an extensivenetwork of approximately 10,000 dealers and distributors. Fiat is CNH’s largeststockholder, with a 71% interest.This new company, whose securities are traded on the New York Stock Exchange,reported proforma consolidated revenues of about 10 billion euros in 1999.CNH’s products will continue to be distributed under the New Holland and Casebrands by the respective sales networks.In September 1999, Harbin New Holland Beidahuang Tractor Ltd, a joint venturein the People’s Republic of China in which CNH holds a 70% interest, started tomanufacture and sell a line of farm tractors with output ranging between 100 and180 bhp. In January 2000, CNH completed the acquisition of Canadian-basedFlexi-Coil Ltd, a leading producer of seeding systems and tilling equipment.

Agricultural and Construction Equipment

CNH GLOBAL

20 21

CNH Global is the newname of New Holland N.V.,following its acquisition ofCase Corporation in 1999.New Holland was createdin 1991 through the mergerof Ford New Holland andFiat Geotech. Ford builtits first tractor prototypein 1907 and started massproduction in 1917.Fiat’s first tractor cameto market in 1919.New Holland has becomea dominant force in theworld market for agriculturalequipment and has grownsignificantly in the area ofconstruction equipment.Case was founded in 1842 inWisconsin by Jerome IncreaseCase. Following developmentsand acquisitions (of strategicalimportance the acquisition ofInternational Harvesting in 1985),Case offers a broad range of farmequipment and is the largest U.S.manufacturer of small andmedium-sized constructionmachines. Since 1957 Case hasprovided superior financialproducts to serve its customers.



Italy

Rest of Europe

Rest of the world





Dealers 174 3,890 5,936 10,000

Operating Sectors – Agricultural and Construction Equipment

Jean Pierre Rosso, CNH Global’s Chairman and CEO,and Umberto Quadrino, CNH Global’s Co-Chairman.

(pro-forma, incl. Case)

6%

37%

57%

14%

40%

46%

(pro-forma, incl. Case)

Agricultural equipment Construction equipment

Europe Italy New Holland ● ●

Austria Case ●

Belgium New Holland ●

France Case ● ●

New Holland ●

Germany Case ●

New Holland ●

Poland New Holland ●

United Kingdom Case ● ●

New Holland ●

NAFTA United States Case ● ●

New Holland ● ●

Canada New Holland ●

Mexico Case ●

Mercosur Brazil Case ● ●

New Holland ●

Other regions Australia Case ●

22 23Operating Sectors – Agricultural and Construction Equipment

ProductsCNH is managed as a global company, keeping

separate Case and New Holland brand names and

dealer networks. CNH is organizing its manufacturing

operations with global product line responsibilities,

and CNH will organize its sales and marketing

activities on a geographic basis, keeping separate

the dealer and customer-related activities of New

Holland and Case.

During the year, the CNH’s Equipment Operations

continued to renovate its product line and expand

its sales network. During the first quarter, Case

introduced the C Series wheel loader line, designed

in response to customer requirements for optimum

reliability and durability on the job site. Case also

introduced a new high-lift telescopic handler and a

new 7-ton excavator built for contractors who want

the versatility and productivity of a larger excavator,

but the maneuverability of a smaller unit.

In November, New Holland launched its new TM line

of tractors, available with engines with output ranging

from 92 and 135 bhp. In Europe, CNH introduced

new square balers, which are the first machines of

this kind to be equipped whit a self-steering from

axle for outstanding driving comfort.

Financial Services

CNH Capital, a Sector company, provides broad-

based financial services for the global marketplace

through various wholly owned subsidiaries and joint

ventures in the United States, Canada, Argentina,

Australia, Brazil and Europe.

CNH Capital provides and administers retail financing

to end-use customers for the purchase or lease of

new and used CNH and other agricultural and

construction equipment. CNH Capital also facilitates

and finances the sale of insurance products and other

financing programs to retail customers. In addition,

CNH Capital provides wholesale financing to CNH

dealers and rental equipment yards.

CNH Capital also provides financing options to dealers

and non-captive third parties to finance inventory,

working capital, real estate acquisitions, construction

Complete horsepower range

Two-wheel drive, four-wheel drive and Quadtrac

Specialty tractors

Combines

Cotton pickers

Grape and sugar cane harvesters

Self propelled and pull type harvesters

Balers

Complete line of sprayers

Planters and seeding systems

Precision farming systems

Tillage equipment

Skid-steer loaders

Loaders/backhoes

Mini/midi excavators

Telescopic handlers

Forklifts

Trenchers

Horizontal drills

Crawler and wheel excavators

Wheel and crawler loaders

Graders

Dozers

Harvesting equipment

Hay and forageequipment

Crop production

Constructionequipment

Light-to medium-construction equipment

Heavy constructionequipment

Agriculturalequipment

Business Unit Product Lines

Tractors

Highlights

in millions of euros 1999 (*) 1998 1997

Net revenues 5,246 5,127 5,284



Income beforeminority interest 216 507 422

Cash flow 333 624 528



Net invested capital 5,777 1,123 592


(*) Excluding Case.

24 25

CNH is a leader in the mechanized

farming market and one of the top international

producers of construction equipment.

and remodeling, business acquisitions, dealer

systems and service and maintenance equipment.

In North America, CNH Capital offers customers a

private-label credit card to purchase parts, service,

rentals implements and attachments from its dealers.

CNH Capital’s Soris Financial offers a broad range

of retail and wholesale financing products, including

equipment and commercial loans and leases for North

American manufactures, dealers, distributors, and

their customers. Soris Financial also facilitates and

finances the sale of insurance products to retail

customers.

At December 31, 1999, CNH Capital’s serviced

portfolio of receivables was approximately 11 billion

euros. On a pro forma basis, after giving effect to the

merger, CNH Capital’s revenues were approximately

737 million euros in 1999.

In 1999, the tractor market grew slightly in Western Europe. In North America,

although overall tractor sales evidenced a small increase, this was entirely

attributable to the growth in sales of low horsepower tractors. The North American

market for more powerful tractors, such as those produced by CNH, continued

to reflect ongoing market weakness. In Latin America, the market held steady,

slightly above 1998 levels.

Sales of heavy construction equipment experienced an overall decline, as buoyant

Performance in 1999

demand in Western Europe and Latin America could

only partially offset a sharp decline in North America.

Excluding Case, which was not yet consolidated, CNH

sold 78,900 farm tractors in 1999, down slightly from

the 80,800 units shipped in 1998. CNH’s revenues

amounted to 5,246 million euros, or 2.3% more than in

the previous fiscal year. This increase, which occurred

despite a reduction in unit sales, was due mainly to the

appreciation of the U.S. dollar, which is the Sector’s

reporting currency. When Case’s 1999 sales are included

on a pro forma basis, CNH’s revenues rise to about 10

billion euros.

Excluding Case, operating income came to 371 million

euros. The decrease from the 452 million euros earned

in 1998 is due mainly to a drop in units shipped and an

unfavorable sales mix.

Operating Sectors – Agricultural and Construction Equipment

Cast iron Aluminum Magnesium

Europe Italy M.P.I. ●

Teksid For ●

Teksid ● ●

France Fonderies Aluminium Cleon ●

Fonderies du Poitou ● ●

Metallurg. du Temple ●

Societé Bretonne de Fonderie et Mécanique ●

Poland Teksid Poland ● ●

Portugal Funfrap-Fundicao Portug. ●

NAFTA Canada Meridian Operations ●

Mexico Teksid Aluminio de Mexico ●

Teksid Hierro de Mexico (*) ●

United States Magnesium Products ●

Teksid Aluminum Foundry ●

Mercosur Argentina Teksid Argentina ●

Brazil Teksid do Brasil ● ●

Asia China Hua Dong Teksid Automotive Foundry Co. (*) ●

Nanjing Teksid Iron (*) ●

Nanjing Teksid Aluminum (*) ●

India Teksid Kalyani ●

Turkey Cevher Dokum Sanayi (*) ●

(*) Affiliated companies.


In 1999, with a transaction involving a capital increase reserved

for the Renault Group, Teksid completed the purchase of Renault’s

foundry activities. Following this transaction, Fiat S.p.A. will continue

to hold a controlling interest of 66.5% in Teksid, while the French

Group will own the remaining 33.5%.

In the United States, the Sector established Teksid Aluminum

Components (100% Teksid). In Canada, it laid the groundwork for

an expansion of manufacturing capacity at Meridian Technologies

Inc., a world leader in magnesium technology owned for 51% by

Teksid and for 49% by Norsk Hydro. Another important development

was the gradual integration of the former Renault facilities, with the

goal of increasing the product specialization of the individual

manufacturing locations. This resulted in the creation of two centers of excellence

in Italy: Crescentino for cast iron and Carmagnola for aluminum. The output of

the Carmagnola cast-iron production unit, which will be phased out in July 2001,

will be picked up by other Sector locations in Italy and abroad. These transactions

enabled Teksid to consolidate its position as a world producer of cast-iron, aluminum

and magnesium components and strengthen its leadership of the European market.

In 1999, the Sector had revenues of 1,682 million euros, up more than 44% over

the previous fiscal year. Operating income rose to 76 million euros (4.5% of

revenues), compared with 42 million euros (3.6% of revenues) in 1998.

Metallurgical Products

TEKSID

26 Operating Sectors – Metallurgical Products 27



Italy

Rest of Europe

Rest of the world

Highlights


Net revenues 1,682 1,165 1,190




Cash flow 123 74 98





Principal companies and businesses

Founded in 1978, Teksidinherited the steel makingand metallurgical expertisedeveloped by Fiat duringsixty years of activity. Afterdivesting its primary steelmaking activities in 1982,the Company focused itsoperations on the productionof metallurgical components.Toward the end of the 1970’s,Teksid embarked on aninternationalization strategy,establishing manufacturingfacilities in Brazil and NorthAmerica. Over the last twentyyears, the Sector’s geographicalexpansion has been patterned toachieve the greatest proximity toits customer’s facilities worldwide.The largest expansion ofproduction capacity occurred inEurope (Italy, France, Portugal andPoland), North and South America(Canada, United States, Mexico,Brazil and Argentina)and the Far East (China).




Paolo Filomeni,Teksid’s Chief

Executive Officer.

28%

38%

34%

31%

37%

32%

28 Operating Sectors – Metallurgical Products 29

Business Unit Core products

Cast iron Engine blocks

Cylinder heads

Drive shafts

Cam shafts

Exhaust manifolds

Differentials

Struts

Wishbones

Aluminum Cylinder heads

Engine blocks

Gearboxes/clutches

Suspension components

Magnesium Instrument panels

Seats

Products

14%

43%

Revenues by business unit

Cast iron

Aluminum

Magnesium

43%

28%

Revenues by customer

Other carmakers

Fiat Group

72%

The use of magnesium alloys in the productionof automotive components has grown

substantially in the past three years. The worldmarket has consolidated first generation

products (bulkhead beams, gearboxes, steeringwheel shafts, seat backs) and, at the same

time, has developed new components(instrument panels, frames for moving body

parts) fully capable of benefiting from thepotential of pressure casting technology

(integration of functions, reduced wall thickness).The substantial weight reduction obtainable

by replacing steel (-40%) and aluminum(-10%) for the same performance allowsmagnesium to maintain its uncontested

position as the metal for the future of ecologicalcars (low emissions, recyclable).

The Sector is a world-leader producer

of engine blocks (cast iron), cylinder

heads (aluminum) and instrument panels

(magnesium).

Fiat Group

Fiat Auto, Iveco, CNH Global.

Other carmakers

Renault, Daimler Chrysler, General Motors,

Ford, Cummins, Volkswagen, Volvo, Toyota,

BMW.

Competitive Positioning

Principal customers

Policast currently represents an interesting processalternative for the production of automotive componentswith a particularly complex geometry.In particular, engine designers are increasingly interestedin exploiting the “near net shape” potential of the processapplied to aluminum alloys for the making of cylinderheads, valve covers, and engine blocks.The recent development of materials used in the process(polymers, paints, sands) together with increasedexperience in the design of molding equipment(polystyrene molds, gluing and painting stations) have

made it possible to achieve high levels of quality in theresulting products.Teksid is a world leader in the production of aluminum-alloy Policast castings. In addition to the Carmagnolafacility, another plant specializing in this technology andcapable of meeting the fast growing demand of the NorthAmerican market is being built in Alabama, United States.

Components

MAGNETI MARELLI

30 Operating Sectors – Components 31

Magneti Marelli was founded in1919 by Fiat and Ercole Marelli. In 1938, Enrico Fermi, a NobelPrize winner for physics, wasplaced at the head of theCompany’s researchlaboratories. In 1939, theCompany carried out its firsttelevision transmission andreception experiments and,after the Second World War,produced Italy’s first televisionsets. However, it left thisbusiness in the 1970’s. In 1967,Fiat took over this company,transforming it into a globalcenter for the production ofautomotive components. In1994, Magneti Marelli was mergedwith Gilardini. In 1997 it acquiredthe Cofap Group, South America’slargest components producer. In1998, the Company entered thequick-service business, acquiringMidas’ European service centers,and started to offer online servicesthrough Viasat, a 50-50 joint ventureestablished with Telespazio, aTelecom Italia company, to provideinfomobility products based onsatellite technologies.


The most important events of 1999 were the conclusion of an

agreement with Textron Automotive in the United States for the

production of dashboard modules, the acquisition of Fiat Auto’s

Suspension Systems operations in Italy, Poland and Brazil, and

the establishment of Automotive Lighting Holding, a 50-50 joint

venture with Bosch of Germany to which both companies transferred

their worldwide lighting systems activities. Coupled with the

acquisition of Seima, a producer of automotive headlights and

taillights, in 2000, this transaction will propel Magneti Marelli into

the rank of co-leader of the global lighting systems market.

The Sector is carrying out an ambitious program designed to

streamline its portfolio of businesses, focusing its efforts on carefully

selected industry segments. With this in mind, it divested its Rotary Devices

and Fuel Systems Divisions and plans to sell its Lubricants Division.

The 1999 fiscal year ended with revenues of 4,062 million euros, up more than

7% over 1998, and with an operating income that at 108 million euros (2.7% of

revenues) was almost double the figure reported a year earlier (56 million euros,

or 1.5% of revenues).



Italy

Rest of Europe

Rest of the world

19%

48%

33%

Highlights


Net revenues 4,062 3,793 3,451




Cash flow 310 254 271



Net invested capital 1,289 1,270 991


Domenico Bordone,Magneti Marelli’s

Chief Executive Officer.


26%

46%

28%




Powertrain Suspension Interior and Electronic Aftermarketsystems systems bodywork systems and

systems services (**)

Europe Italy Automotove Lighting (*) ●

Magneti Marelli ● ● ● ● ●

Magneti Marelli Climatizzazione ●

Sistemi Sospensioni ●

France Magneti Marelli France ● ● ● ●

Germany Automotove Lighting (*) ●

Great Britain Automotove Lighting (*) ●

Poland Automotove Lighting (*) ●

Magneti Marelli Poland ● ●

Spain Magneti Marelli Iberica ● ● ● ●

NAFTA Mexico Automotove Lighting (*) ●

Magneti Marelli Mexico ● ●

United States Cofap of America ●

Magneti Marelli USA ●

Mercosur Argentina Magneti Marelli Argentina ● ●

Magneti Marelli Denso ●

Brazil Magneti Marelli Brasile ● ● ● ●

Magneti Marelli Cofap ●

Other regions China Magneti Marelli Guangzhou ●

India Magneti Marelli India ●

South Africa Magneti Marelli Pty ●

Turkey Magneti Marelli Electronic ●

(*) Magneti Marelli and Bosch 50-50 joint venture.(**) Other companies active in this area include Midas (Italy, France, Poland, Spain and Brasil) and Viasat (Italy).

Interior and bodywork systems

32 Operating Sectors – Components 33

Business Unit Product lines

Powertrain systems Engine control systemsExhaust systemsSelespeed transmission systems

Suspension systems Front and rear suspensionsShock absorbers

Interior and bodywork systems Climate control systemsDashboard modulesLighting systemsRearview mirrors

Electronic systems Instrument panelsElectronic control unitsOnline systems

Aftermarket and services Quick-repair servicesReplacement partsInfomobility servicesLubricants

Products


Electronic systems

Powertrain systems

Suspension systems

Aftermarket and services

40%


Other carmakers

Fiat Group

60%

The Sector is co-leader of the world’s lighting

systems market and is the second largest European

producer of instrument panels. Also in Europe, it

ranks third among manufacturers of gasoline fuel

injection systems, climate control systems and

rearview mirrors.

Competitive position

Magneti Marelli’s products canaccount for as much as 35% ofthe modules and systems thatcomprise a motor vehicle.

Fiat Group Fiat Auto, Maserati, Iveco,

CNH Global.

Other carmakers Peugeot/Citroën, Renault,

Volkswagen, BMW,

DaimlerChrysler.

Principal customers

Magneti Marelli’s high-end instrument panels combineseveral essential functions, such as an encryptedanti-theft device (immobilizer), an automatic oil changereminder and a diagnostic system with a dot-matrixdisplay of alarms and faults. It can also display informationprovided by a navigation system.

Equipped with a control unit that reads and processesthe input of a sophisticated system of onboard sensors,Magneti Marelli’s leading-edge climate control systemdelivers a massive flow of 430 m3 of air per hour and canbe programmed with different temperature settings forthe driver and front passenger seats.

31%

17%

24%

9%

19%


Comau is a global supplier of industrial automation systems to

automotive manufacturers, to whom it offers a complete range of

services: product and process engineering; logistics and management,

including program management; manufacturing, installation and

start-up of production lines and equipment; and maintenance services

that ensure the proper and reliable operation of industrial facilities.

In 1999, Comau completed important acquisitions with the goal of

strengthening its presence in its core business segments (bodywork,

mechanical engineering and maintenance services). Fiat’s acquisition

of Pico, a leading U.S. producer of bodywork systems, and Comau’s

purchases of Renault Automation and Sciaky structurally reinforced

the Sector’s presence in its principal markets and its position as a

supplier of the major carmakers.

Comau Service, a Business Unit with outstanding growth potential that offers

innovative maintenance services for automotive production facilities, became

operational in 1999.

Owing in part to the acquisitions mentioned above and including Pico’s contribution,

the Sector reported revenues of 1,693 million euros in 1999, double the figure

booked a year earlier. Operating income totaled 43 million euros (2.5% of revenues).

In 1998, Comau without Pico reported an operating loss of 1 million euros.

In 2000, Comau signed an important agreement with Fanuc, in Japan, in the area

of robotic components that will help both companies strengthen their respective

core businesses.

Production Systems

COMAU

34 Operating Sectors – Production Systems 35



Italy

Rest of Europe

Rest of the world

Highlights


Net revenues 1,693 843 841

Operating income (loss) 43 (1) 27

As a % of revenues 2.5 (0.1) 3.3

Income (loss) beforeminority interest (8) (6) 12

Cash flow 30 12 29






Fiat started regular andorganized production ofmachine tools in 1935. TheSector was reorganized in1973 with the establishmentof Consorzio MacchineUtensili (CO.MA.U.), aconsortium of Fiat and otherTurin manufacturers, whichresulted in the creation ofComau S.p.A. in 1997 andhelped significantly expandsales volume. Over the years,by acquiring and absorbingother companies, Comaubroadened its product range,becoming one of the few “total”suppliers of automation systemsfor the automotive industry.In the mid 1990’s, the Sectorlaunched a globalization effort,developing organizations thatcovered a complete portfolioof businesses in the majorindustrial regions of the world.



R&D centers 10 4 � 1 15

Piero Maritano,Comau’s Chief

Executive Officer.

Product and Production Maintenanceprocess Systems services

engineering

Europe Italy Comau ●

Comau Service ●

Italtech ●

UTS ●

France Renault Automation Comau ● ● ●

Comau Sciaky ●

Germany Comau Deutschland ●

Poland Comau Poland ● ●

United Kingdom Comau Estil ● ●

Spain Mecaner ●

NAFTA Mexico Trebol Tepotzotlan ● ●

United States Progressive Tools & Industries ● ●

Mercosur Brazil Comau do Brasil ● ●

Comau Service do Brasil ●

Argentina Comau Argentina ● ●

Other regions China Comau Cina ●

India Comau India ●

South Africa Aims ●

26%

47%

27%

42%

40%

18%

36 Operating Sectors – Production Systems 37

Business Unit Product lines

Engineering Product and process

engineering

Bodywork Sheet-metal dies

Bodywork assembly and welding systems (sheet-metalworking, final assembly, materials handling)

Robotics

Painting Systems Painting systems

Plastics Plastic dies

Injection molding presses

Mechanical Machining systems

Engineering Mechanical assembly systems

Maintenance Maintenance services

Products

Revenues by business unit28%


Other carmakers

Fiat Group

72%

The inclusion of Pico (Progressive Tool &Industries Co.) in the Production Systems

Sector will strengthen Comau’s position in theNAFTA market, providing it with the specialized

knowhow and resources that Pico hasacquired over the last 20 years as the leadingsupplier of bodywork assembly and weldingsystems to the largest carmakers in America. A finely meshed network of skilled technicalrepresentatives, who are available directly at

production sites, is an invaluable tool inincreasing customer loyalty and ensuring a

steady stream of orders for new systemsand maintenance services.

The Sector is the world’s leading

producer of bodywork systems.

Fiat Group

Fiat Auto, Iveco.

Other carmakers

General Motors, Ford, DaimlerChrysler,

Volkswagen Group, BMW, Renault and PSA.


Principal customers

All Comau products and services reflect sophisticated engineeringand the use of leading-edge hardware and software applications.They also embody years of experience with the top carmakers inthe world, an in-depth knowledge of the market, decades of researchand innovation, and the contribution of Comau’s men and women,who day after day work side-by-side with their customers, developingindividual and total solutions for every aspect of manufacturing.

Comau’s goal is to provide simple and effective automation systems.Even the most complex automation system, the most completeproduction line, the most sophisticated equipment must be easy touse, cost-effective to operate, and flexible and adjustable enoughto allow shifts in component production in response to changingmarket needs. From the start of the design process, Comau worksclosely with its customers, providing a comprehensive approach tothe development of production alternatives — from engineering tomanufacturing and from assembly to maintenance services —offering a “full service” package to customers throughout the world.

Engineering

Maintenance

Bodywork

Plastics

Painting Systems

58%

4%

2%

20%

4%

Mechanical Engineering12%

Since its founding, Fiat hasbeen noted for its ability todevelop, test and manufactureengines for the differentbusinesses included in theGroup. Aircraft productionstarted with the beginningof the First World War andcontinued until 1969. At thattime, Fiat transferred itsframe-production activities toAeritalia, a newly establishedcompany, concentratinginstead on the manufactureof engines. In 1976, allaviation activities weretransferred to Fiat AviazioneS.p.A., an independentcompany that later changed itsname to FiatAvio. In 1994, withthe acquisition of BPD Difesa eSpazio, FiatAvio strengthened itsposition in the aerospace market,which has grown to represent itssecond main area of strategicinterest. The acquisition of AlfaRomeo Avio in 1997 expandedFiatAvio’s presence as a providerof maintenance services, with afurther extension of the valuechain.

Aviation

FIATAVIO

38 Operating Sectors – Aviation 39


FiatAvio develops, produces and distributes components and systems

for airplane and helicopter engines, and assembles turbines for marine-

propulsion applications. Its space activities manufacture propulsion

systems for launchers and satellites. The Sector has also developed

overhaul services for aircraft engines and energy production facilities.

In the area of commercial aircraft engines, FiatAvio participates in

important development and production programs in partnership

with the world’s top engine manufacturers. In the field of Defense

applications, the Sector is a partner in the European consortium

that is developing and will manufacture the EJ200 engine for the

new Eurofighter.

FiatAvio has developed a significant presence in the area of space

activities. In Europe, it collaborates in the development of the

Ariane programs, for which it produces such high-tech components as boosters

and separation engines for the Ariane 4 launcher, and boosters and a liquid

oxygen turbopump for the Ariane 5 launcher.

In 1999, the Sector had revenues of 1,361 million euros, about the same as in

the previous fiscal year. Operating income increased to 109 million euros (8%

of revenues), compared with 60 million euros in 1998 (4.4% of revenues).

In 2000, FiatAvio helped establish Turboprop International GmbH (22% FiatAvio,

12% ITP, 33% Motoren und Turbinen Union and 33% Snecma Moteurs), which

will coordinate the design, development and production of the M138 engine for

the A400M military transport aircraft.



Italy

Rest of Europe

Rest of the world

Highlights


Net revenues 1,361 1,361 1,263




Cash flow 145 167 112





Italy French Guyana Total

Production facilities 9 2 11

R&D centers 8 � – 8

This Sector is a worldwide leader in the production of

accessory gearboxes for aeronautical engines. In this area

it also holds the European leadership position in the production

of power reduction boxes, afterburners, and helicopter

engines. In aerospace, it is the European leader in the

production of solid-fuel propulsion engines and separation

engines.

Competitive position 52%

12%

2%


Gas Turbines

Engine Overhaul

Aviation16%

18% Space

Automation electronics

Saverio Strati,FiaAvio’s Chief

Executive Officer.

Products Partners

Accessory gearboxes General Electric, Pratt & Whitney,

Rolls-Royce, Motoren und Turbinen

Union, ITPPower reduction boxes Pratt & Whitney Canada

Low pressure General Electric, Pratt & Whitney, turbines Rolls-Royce, Pratt & Whitney

Canada, Snecma Moteurs, Motorenund Turbinen Union, ITP

Heaters and Rolls-Royce, Pratt & Whitney, afterburners Motoren und Turbinen Union, ITP,

Allied SignalAuxiliary Allied Signal, Others power units

Helicopter engines General Electric Helicopter transmissions Eurocopter, Sikorsky Marine propulsion General Electric and automation

Aircraft engine components and systems

Products Partners

9.5 to 230 ton solid-fuel Snecma Moteurs, SNPE propulsion engines

Separation engines Liquid oxygen Snecma Moteurs turbopumps

Satellite launchers

Space

Products

28%

41%

31%

1%

97%

2%

Roll ing Stock and Railway Systems

FIAT FERROVIARIA

40 Operating Sectors – Rolling Stock and Railway Systems 41

Fiat built its first tram in 1906,but officially entered the rollingstock market in 1917, whenit acquired the Diatto worksin Turin. In the 1920’s, theCompany manufacturedthe world’s first electriclocomotive, followed in the1930’s by the Littorina, anenormously successful self-propelled rail car equippedwith an internal combustionengine, originally poweredwith gasoline and later withdiesel fuel. In response to theneed for faster, more comfortableand efficient transportation, FiatFerroviaria developed its tiltingbody train and a series of high-speed bogeys, which it started tomanufacture in the 1970’s utilizingoriginal and futuristic solutions.The Sector’s low-platformtrams have made an importantcontribution to the developmentof light subways and surface urbantransportation systems.


Fiat Ferroviaria operates in rail and tramways, producing traction

systems, rolling stocks of various types, railway bogeys, trams and

subway systems.

The Sector has been remarkably successful in the international

markets with its Pendolino, a tilting-body train that can achieve

higher speeds on existing railway lines and assure maximum ride

comfort, with limited investments and a short implementation

schedule.

In 1999, the markets where the Sector operates were relatively

stagnant, with the exception of urban transport systems in Italy.

At December 31, 1999, Fiat Ferroviaria’s order portfolio totaled

1,288 million euros (1,599 million euros at the end of 1998).

Revenues totaled 375 million euros in 1999, slightly less than in the previous

fiscal year. Operating income was 13 million euros (3.5% of revenues), down

from 18 million euros in 1998 (4.6% of revenues). Orders booked under extremely

competitive conditions account for most of this decline.



Italy

Rest of Europe

Rest of the world

Highlights





Income (loss) beforeminority interest 3 (1) 14

Cash flow 18 15 30





The Pendolino trainTrains

Trains in Trains on under operation order option Total

Italy 40 – – 40

Switzerland 9 24 � – 33

Spain 10 – � 14 24

Germany 60 3 � – 63

United Kingdom – 53 25 78

Finland 2 8 15 25

Portugal 5 5 – 10

Czech Republic – 7 – 7

Croatia – 3 – 3

Total 126 103 54 283

Berlin

Dresden

Stuttgart

Wien

Bern

Lyon

München

Praha

MilanoVeneziaTorino

Bologna

Roma

Bari

Helsinki

BarcelonaMadrid

Lisbon

Oporto

Salzburg

Nünberg

Turku

Tampere

Düsseldorf

Furtimwald

Hof

Zürich

Basel

Pescara

Genova

Marseille

Firenze

Napoli

Reggio Calabria

Frankfurt a.M.

Genève

Valencia

London

Glasgow

Ljubijana

Maribor

EdinburghEdinburgh

ManchesterLiverpool

Birmingham

Italy Switzerland Total

Production facilities 3 1 4

R&D centers 3 � 1 4

Lines in operationContracts

km/h onconventional tracks250

The Sector is a leader in the design and production of variable-

geometry trains with active tilting-body systems, and holds

a preeminent position in the design and production of railway,

tram and subway bogeys.


10%

13%

55%


Other trains

High-speed trains

Pendolino trains8%

14% Tram and subway systems

Components

Maurizio Magnabosco,Fiat Ferroviaria’s

Chief Executive Officer.

1%

33%

66%

11%

89%

La Stampa uses a complete range of

electronic publishing tools: a professional

database available worldwide in real time,

CD-ROM publishing of multimedia

projects, Internet presence through

the www.lastampa.it website with a

dedicated editorial staff, electronic

distribution (Dayfax summary edition

and an edition available at the website

of the National Telemedicine Project

in a version accessible to visually

challenged persons).

Publishing and Communications

ITEDI

42 Operating Sectors – Publishing and Communications 43

Fiat has been active in thepublishing business since1926, when it establishedEditrice La Stampa, theeponymous publisher ofTurin’s daily. The newspaper,which was created in 1867as the Gazetta Piemontese,changed its name to LaStampa in 1895, when it washeaded by Alfredo Frassati.Publikompass, a companyfounded in 1972 to selladvertising space for Italiancommunication media on alicensee basis, has significantlyexpanded its customer portfolio. In 1979, Fiat established Itedi,to which it transferred all itspublishing and communicationsinterests.


La Stampa, one of Italy’s premier non-specialized national circulation

newspapers, is also present on the Internet with its own website,

www.lastampa.it. The new edition of this site, which went on line

on December 18, 1999 with content provided by a dedicated

editorial staff, is recording as many as 100,000 page-hits a day.

La Stampa Interattiva, a subsidiary that was set up toward the end

of 1999, is developing an Internet portal in cooperation with CiaoWeb.

Publikompass is a leader among Italian companies that solicits

advertising sales on a licensee basis and is the advertising partner

of 33 publishers. At the end of the year, the Sector sold a 75%

interest in its non-strategic industrial publishing activities, which

are headed by Satiz, to MSX International, a U.S. group.

In 1999, net revenues totaled 413 million euros, down from the previous fiscal

year due to the deconsolidation of the Satiz activities. Operating income was

equivalent to 17 million euros (4.1% of revenues), compared with 19 million euros

in 1998 (4.3% of revenues).

In February 2000, Itedi launched Koinet, the first business-to-business portal

developed by a major Italian group. Koinet is specifically designed to meet the

communication needs of small and medium-sized businesses.


Advertising

Newspaper publishing

Industrial publishing

Highlights





Net income (loss) 11 – 2

Cash flow 19 11 13



Number of employees 934 1,473 1,505

La Stampa is Italy’s third-largest national

circulation newspaper.

Publikompass is the largest non-captive

company licensed to sell advertising on

behalf of Italian newspapers and enjoys

a significant presence in the periodical,

Internet and television advertising

markets.


Alberto Nicolello,Itedi’s Chief

Executive Officer.

Newspapers● La Stampa, with daily circulation of 400,000

copies, which are distributed with varioussupplements, and reach 1,650,000 readers.

● The weekly Specchio, with circulation ofabout 210,000 copies.

Multimedia advertising licenseeAbout 70,000 pages of advertising space sold

and 100,000 customers.Sells advertising space for 11 newspapers,

11 periodicals, 6 local TV stations and 20Internet sites.

Editorial offices: TurinCorrespondent offices: Rome, Milan, Washington, Moscow,

Paris, London, Bonn and Brussels.Field offices in all the provincial capitals of the regions of

Piedmont, Liguria and Valle d’Aosta.Collaborative relationships with Le Monde (of which Editrice

La Stampa is a stockholder), The New York Times, The LosAngeles Times and The Guardian.

Head office: MilanAn area office in Rome.24 branch offices in all the main Italian business centers and

where the major clients are located.The staff consists of 298 employees and the sales organization

of 320 agents.

Publikompass

Editrice La Stampa


48%

33%

19%

Toro Assicurazioni Life insurance and casualty insurance products and reinsurance

Nuova Tirrena Life insurance and casualty insurance products and reinsurance

Roma Vita Joint venture with Banca di Romafor the distribution of life insurance products

Giano Assicurazioni Joint venture with Banca di Roma for the distribution of casualty insuranceproducts through the bank-branch network

DAS Legal assistance insurance

Toro Targa Distribution of casualty insuranceAssicurazioni products (auto insurance primarily)

through the Fiat dealer network

Phenix Seguradora Casualty insurance products in Brazil

Continent Life insurance and casualty insurance Assurances Group products and reinsurance in France

Guardian Royal Life insurance and casualty Exchange Group insurance products and reinsurance

Insurance

ASSICURAZIONI

44 Operating Sectors – Insurance 45

Highlights

Consolidated premiums

1995 1996


0

1,000

2,000

3,000

4,000

1998 19991997


The Italian insurance market posted strong growth in 1999,

expanding by about 20% compared with the previous year. The

gains were especially pronounced in life insurance, which increased

by more than 30%, and now accounts for 58% of all premiums

written. Unit- and index-linked policies, which are linked to the

performance of mutual funds or stock market indices, have been

particularly successful, and sales through bank branches have

expanded at a brisk pace. In the French market, which is the

Sector’s other major profit center, demand was about the same

as in 1998. The Sector had an outstanding year, reporting higher

insurance revenues (premiums written totaled 4,088 million euros,

+29%) and an improved operating performance (net income of 92

million euros, +44%). The programs introduced in recent years

were particularly successful, including the sale of insurance products through

such innovative channels as bankassurance (Roma Vita +72%) and Fiat dealers

(Toro Targa Assicurazioni, +103% in Italy). In December 1999, in continued

pursuit of its growth strategy, Toro acquired the French operations of the Guardian

Group, which will be merged with the Continent Group, strengthening its range

of products. The newly acquired companies, which will be consolidated as of

2000, booked premiums totaling more than 180 million euros in 1999.

At the end of 1999, the Sector received the authorizations required to operate

in Poland through a direct subsidiary.


Consolidated premiums 4,088 3,169 2,162

Premiums earned 3,922 2,959 2,016

Income before taxes 178 116 133

Net incomebefore minority interests 92 64 88

Technical reserves 9,733 6,386 4,738

Investments in financialassets and real estate 10,867 7,393 5,520

Stockholders’ equity 1,444 1,334 1,083




Italy

Rest of Europe

Rest of the world

Toro Assicurazioni ranks third among Italian insurance

groups. Based on current estimates, Roma Vita is

the second largest service provider in the

bankassurance market.


Principal companies and activities

TORO

Consolidated premiums per employee

1995 1996

in thousands of euros

0

375

750

1,125

1,500

1998 19991997

Investments and technical reserves

1995 1996


0

2,500

5,000

7,500

10,000

1998 19991997

Life insurance

Casualtyinsurance

Technical reserves

Investments

Italy Rest of Rest of TotalEurope the world

Agents 919 400 – 1,319

Dealers 814 305 227 1,346

Bank branches 1,300 – – 1,300

Premiums by business unit

Other casualty insurance

Automobile insurance

Life insurance

Francesco Torri,Chief Executive Officer

of Toro Assicurazioni.

1,364

1,9322,162

3,169

4,088

696 743840

1,193

1,574

3,676

4,6845,520

7,393

10,867

2,838

3,965

4,738

6,386

9,733

54%

29%

17%

3%

26%

71%

1%

10%

89%

Established in 1833, ToroAssicurazioni graduallyexpanded its activities toinclude all segments of theinsurance market. In 1983,IFI acquired the companyfrom Banco Ambrosiano andlater transferred its ownershipto IFIL. In 1989, Fiat purchaseda relative majority of its sharesand gained full control in 1990.Toro Assicurazioni heads oneof Italy’s leading insurancegroups, ranking in third placein terms of revenues andamong the top performersin terms of earnings. TheCompany operates in theinternational markets as well. Itis particularly well established inFrance, where it has operated since1956 through the Continent Group.Toro Targa Assicurazioni, a venturelaunched in 1998 to distributeinsurance products through Fiatdealers, is present in Italy, Brazil andPoland. Roma Vita, a joint venturewith Banca di Roma, in which theSector acquired a significant interestin 1997, has become one of theleading bankassurance distributors.

Other Companies

SERVICES

46 Operating Sectors – Other Companies 47

Information and Communication Technology

CIAOHOLDING is a joint venture owned in equal shares by Fiat andIFIL. It operates the CiaoWeb Internet portal which has among its purposesthe creation of an online channel to promote the products and services

offered by the Fiat Group’s companies, IFIL and their sales networks. At the sametime, CiaoWeb collaborates with external partners who can help it increase the rangeand depth of its e-commerce lineup. CiaoWeb was launched on December 18, 1999. By March of this year, 115,000 subscribers were using its free Internet service, with400,000 page hits a day. CIAOHOLDING also coordinates investments in venturecapital funds that specialize in e-commerce, and provides professional Internet services(Web Hosting, Web Design, Virtual Internet Service Provider).

Fiat G.S.A. This company providesinformation technology supportservices in the development of soft-

ware specifically designed for industrial, commercial,administrative and personnel management appli-cations. It also coordinates and manages theseactivities in France, Germany, United Kingdom, Spain,Belgium, Poland, Argentina and Brazil. It has 701employees in Italy and 257 abroad.

ITS provides information technology services(hardware management and maintenance)and data transmission systems. It has 725employees in Italy. It also coordinates and

manages these activities in France, Germany, Spain,Poland and Brazil, where it has a total of 233 employees.

Telexis’ corporate mission is todevelop, produce and operate tele-

communication services that encompass the supplyof products and services for online communications, including Internet-relatedservices. It has 256 employees in Italy. It also coordinates and manages activitiesin France, Spain, Poland and Brazil, where its overall staff totals 48 employees.

Real Estate Services

Ingest-Segim All services related to the regular maintenance of theGroup’s real estate assets (office and residential buildings) are beingconcentrated in this recently established company.

IPI This company, which is listed on the Stock Exchange, has traditionallyengaged in the development and management of real estate assets, andthe provision of related consulting services, for Fiat Group companies

and external customers. It has 113 employees.

Administrative and Financial Services

Fiat Gesco All the administrative activities of the Group Sectors (accounting, financial reporting,

taxation and management reporting) have been concentrated in this company, which employs

1,931 people in Italy. It also coordinates and manages these activities in France, Germany, United Kingdom,

Spain, Belgium, Poland, Argentina, Brazil and the United States, where it has a total of 1,277 employees.

Fiat Ge.Va. This company provides centralized cash management services to Fiat Group

companies and acts as a financial management consultant. It is present in all the major

countries where the Group operates either directly or through its international cash management units.

Fiat Ge.Va. S.p.A. has 204 employees.

In 1999, Fiat Ge.Va. responded to the substantial financial commitments undertaken by the Group by

mobilizing significant resources in the Eurobond market and through real estate and financial securitization

transactions in Italy and abroad.

Personnel Administration and Training Services

Fiat Se.p.In This company specializes in personnel management, administration and selection,as well as in the development of human resources and the provision of health benefits andthe management of business centers. It has 1,110 employees.

Isvor Fiat provides personnel training and educational services to Group companies andexternal customers. It also supplies standard and customized products, and designs personneltraining courses for the Group’s sales networks and its principal suppliers. It has 232 employeesin Italy. It also coordinates and manages activities in Argentina, Brazil and India and operates

professional centers in France, Germany, Spain, Great Britain and Poland.In providing its services, Isvor Fiat relies on the contribution of a staff of 160 instructors and more than900 consultants from 15 countries.

Consistently with the strategylaunched by the Group in previousfiscal years to reduce thecomplexity of all its businesses,the services that support theindustrial activities, whichpreviously operated at the Sectorand country level, have beenconcentrated at dedicatedorganizational units. Thesecenters of professional excellenceprovide the Group with betterquality services at lower cost.

48

Automobiles Commercial Vehicles Agricultural andConstruction Equipment

A U T O M O T I V E C O M P A N I E S

Iveco N.V.Netherlands

Astra Veicoli Industriali S.p.A.Italy

Iveco Aifo S.p.A.Italy

Iveco S.p.A.Italy

Sicca S.p.A.Italy

Camiva S.A.France

International Trucks Australia Ltd.Australia

Iveco Argentina S.A.Argentina

Iveco Austria GmbHAustria

Iveco Belgium S.A. N.V.Belgium

Iveco Danmark A/SDenmark

Iveco Ford Truck LtdGreat Britain

Iveco France S.A.France

Iveco Magirus AGGermany

Iveco Mercosul LtdaBrazil

Iveco Pegaso, S.A.Spain

Iveco Portugal Ltda.Portugal

Naveco Ltd (*)China

Fiat Auto S.p.A.Italy

FMA - Fabbrica MotoriAutomobilistici S.p.A.Italy

SATA - Società AutomobilisticaTecnologie Avanzate S.p.A.Italy

Fiat Auto Argentina S.A.Argentina

Fiat Auto Belgio S.A.Belgium

Fiat Auto España, S.A.Spain

Fiat Auto (France) S.A.France

Fiat Auto Hellas S.A.Greece

Fiat Auto (Ireland) Ltd.Ireland

Fiat Auto Japan K.K.Japan

Fiat Auto Maroc S.A.Morocco

Fiat Auto Nederland B.V.Netherlands

Fiat Auto Poland S.A.Poland

Fiat Auto Portuguesa, S.A.Portugal

Fiat Auto South Africa Pty. LtdRepublic of South Africa

Fiat Auto (Suisse) S.A.Switzerland

Fiat Auto (U.K.) LtdGreat Britain

Fiat Automobil AGGermany

Fiat Automobil GmbHAustria

Fiat Automobiler Danmark A/SDenmark

Fiat Automóveis S.A. - FiasaBrazil

Fiat CR Spol S.R.O.Czech Republic

Fiat India Automobiles LimitedIndia

Fiat Magyarorszag KFT.Hungary

Sevel S.p.A. (*)Italy

Sevel Nord S.A. (*)France

Tofas A.S. (*)Turkey

Ferrari S.p.A.Italy

Maserati S.p.A.Italy

Fiat Sava S.p.A.Italy

Fidis S.p.A.Italy

Sava-Leasing S.p.A.Italy

Savarent S.p.A.Italy

Targa Services S.r.l. a S.U.Italy

Banco Fiat S.A.Brazil

Fiat Auto Contracts LtdGreat Britain

Fiat Auto Financial Services LtdGreat Britain

Fiat Bank GmbH Germany

Fiat Bank Polska S.A. Poland

Fiat Credit France S.A.France

Fiat Credito CompaniaFinanciera S.A.Argentina

Fiat Credito Portugal S.A.Portugal

Fiat Distribuidora Portugal LtdaPortugal

Fiat Finance Netherlands B.V.Netherlands

Fiat Financiera, S.A.Spain

Sofice - Société de Financementdes Concessionnaires S.A.France

Transolver Finance S.p.AItaly

Transolver Service S.p.A.Italy

Fraikin Société AnonymeFrance

Transolver Finance S.A.France

Transolver Financial Services LtdGreat Britain

Transolver Operational Services LtdGreat Britain

Transolver Services S.A.France

Case Canada Investments Ltd.Canada

Case Credit Australia Pty LtdAustralia

Case Credit CorporationUnited States

Case Credit Ltd.Canada

Case Receivables II Inc.United States

Case Wholesale Receivables Inc.United States

CNH Capital CorporationUnited States

CNH Global N.V.Netherlands

Fiat Hitachi Excavators S.p.A.Italy

New Holland Italia S.p.A.Italy

Case Brasil & Cia.Brazil

Case Canada CorporationCanada

Case CorporationUnited States

Case Corporation Pty LtdAustralia

Case France S.A.France

Case Germany GmbHGermany

Case Harvesting SystemsGmbHGermany

Case United Kingdom LimitedGreat Britain

FiatAllis Latino Americana Ltda Brazil

New Holland Australia Pty Ltd.Australia

New Holland Belgium N.V.Belgium

New Holland Canada LtdCanada

New Holland DeutschlandGmbHGermany

New Holland France S.A.France

P R I N C I P A L C O M P A N I E SFIAT GROUP

Metallurgical Products Components Production Systems

O T H E R I N D U S T R I A L C O M P A N I E S

Teksid S.p.A.Italy

Teksid For S.p.A.Italy

Fonderies Aluminium Cleon S.A.France

Fonderies du Poitou S.A.France

Meridian Technologies Inc.Canada

Société Bretonne de Fonderieet Mecanique S.A.France

Teksid Aluminio de Mexico S.A. de C.V. Mexico

Teksid Aluminum Foundry, Inc. United States

Teksid do Brasil Ltda.Brazil

Teksid, Inc. United States

Teksid Poland S.A. Poland

Teksid Hierro de Mexico S.A. (*)Mexico

Comau S.p.A.Italy

Geico S.p.A. Italy

Italtech S.p.A. Italy

U.T.S. S.p.A. Italy

Aims Holdings (Pty) Ltd.Republic of South Africa

Autodie International, Inc.United States

Comau Argentina S.A.Argentina

Comau Deutschland GmbHGermany

Comau do Brasil Ind. e Com. LtdaBrazil

Comau Estil UK UnlimitedGreat Britain

Comau France S.A.France

Comau India Pvt. Ltd.India

Comau Poland Sp. zo.o.Poland

Comau Sciaky S.A.France

Mecaner S.A. Spain

Pico Holdings CorporationUnited States

Pico Mexico, Inc. United States

Progressive Tools & Industries Co.United States

Renault Automation Comau S.A.France

New Holland Latino Americana LtdaBrazil

New Holland North America Inc.United States

New Holland U.K. LimitedGreat Britain

O&K Orenstein & Koppel AGGermany

Al-Ghazi Tractors Limited (*)Pakistan

Flexi-Coil Ltd (*)Canada

New Holland de Mexico S.A.de C.V. (*)Mexico

Türk Traktör Ve ZiraatMakineleri A.S. (*)Turkey

New Holland Credit CompanyLLCUnited States

New Holland Receivables Co.United States

New Holland Trade N.V.Netherlands

Comau Service S.r.l.Italy

Comau Service do Brasil Ltda.Brazil

Magneti Marelli S.p.A.Italy

Magneti Marelli Climatizzazione S.p.A.Italy

Sistemi Sospensioni S.p.A.Italy

Magneti Marelli Argentina S.A.Argentina

Magneti Marelli Cofap S.A.Brazil

Magneti Marelli Components B.V.Netherlands

Magneti Marelli Deutschland GmbHGermany

Magneti Marelli do Brasil Industria e Comercio Ltda.Brazil

Magneti Marelli France S.A.France

Magneti Marelli Iberica S.A.Spain

Magneti Marelli Mexico S.A.Mexico

Magneti Marelli Poland S.A.Poland

Magneti Marelli U.K. LtdGreat Britain

Magneti Marelli U.S.A. Inc.United States

Automotive Litghting HoldingGmbH (*)Austria

Midas Europe S.A. M.Princ. of Monaco

Viasat S.p.A. (*)Italy

Rolling Stockand Railway Systems

Insurance Publishing and Communications Miscellaneous andHolding Companies

S E R V I C E C O M P A N I E S

Fiat Ferroviaria S.p.A.Italy

Elettromeccanica Parizzi S.p.A.Italy

Fiat Rail LtdGreat Britain

Fiat-Sig Schienenfahrzeuge AGSwitzerland

Aviation

FiatAvio S.p.A.Italy

Sepa S.p.A.Italy

FiatAvio Inc.United States

Regulus S.A.French Guyana

Serene S.p.A. (*)Italy

Sogetel S.p.A. (*)Italy

Vegaspazio S.p.A. (*)Italy

Eurojet Turbo GmbH (*)Germany

Europropulsion S.A. (*)France

Turbo-Union Ltd (*)Great Britain

Toro Assicurazioni S.p.A.Italy

D.A.S. - Difesa AutomobilisticaSinistri S.p.A.Italy

Giano Assicurazioni S.p.A.Italy

Iniziative Sviluppo Immobiliare -Isim S.p.A.Italy

Nuova Tirrena S.p.A.Italy

Roma Vita S.p.A.Italy

Toro Targa Assicurazioni S.p.A.Italy

Companhia de SegurosMaritimos e Terrestres PhenixBrazil

Continent Assistance S.A.France

Guardian France S.A.France

Guardian Risques S.A.France

Guardian Vie S.A.France

Le Continent I.A.R.D. S.A.France

Le Continent Vie S.A.France

L’Union Générale du Nord S.A.France

Augusta Assicurazioni S.p.A.Italy

Prime Augusta Vita S.p.A.Italy (*)

Itedi - Italiana Edizioni S.p.A.Italy

B. & B. Immobiliare S.p.A.Italy

Editrice La Stampa S.p.A.Italy

Publikompass S.p.A.Italy

Other Service Companies

Centro Ricerche FiatSocietà Consortile per AzioniItaly

Elasis - Sistema RicercaFIAT nel Mezzogiorno -Società Consortile per AzioniItaly

Fenice S.p.A.Italy

Fiat Ges.co. S.c.p.A.Italy

Fiat GE.VA. S.p.A.Italy

Fiat G.S.A. S.r.l.Italy

Isvor Fiat S.p.A.Italy

ITS S.r.l.Italy

Telexis S.r.l.Italy

Fiat Engineering S.p.A.Italy

IPI S.p.A.Italy

Sicind S.p.A.Italy

Fiat Argentina S.A.Argentina

Fiat Deutschland GmbHGermany

Fiat do Brasil S.A.Brazil

Fiat France S.A.France

Fiat Iberica, S.A.Spain

Fiat United Kingdom LtdGreat Britain

Fiat U.S.A., Inc.United States

I.H.F. - Internazionale HoldingFiat S.A.Switzerland

New Holland Holdings N.V.Netherlands

(*) Affiliated Company

Engine Overhaul activities carried outby FiatAvio S.p.A.

The Fiat Group in 1999Operating Sectors

Published by:Fiat Information & Communication Services

Editorial Coordination:Micrograf – Turin, Italy

Design by:Fantinel & Associati – Turin, Italy

On the cover:Oil on canvas, 100x25 cmby Roberto Bergonzo – Turin, Italy

Printed by: Puntografico – Brescia, Italy

Printed in Italy

June 200001UK

Operating Sectors The Fiat Group In 1999 - Fiat SpA

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Transcript of Operating Sectors The Fiat Group In 1999 - Fiat SpA