Fiat S.p.A. Annual General Meeting · In relation to the interest held by VEBA in Chrysler, as you...

Fiat S.p.A. – Annual General Meeting

Address from CEO

Sergio Marchionne

Centro Congressi Lingotto

9 April 2013

Fiat AGM of 40 9 April 2013

Good Morning Shareholders. The Group’s 2012 Annual Report is the first to consolidate results for Chrysler Group for the full year and begin to fully demonstrate the benefits of our alliance. However, what we have accomplished over the past three and a half years in terms of sharing and integrating know-how and experience is evident not only in our financial results, but also at the commercial, industrial and cultural level. I would like to begin by presenting a few key facts and figures for 2012 that demonstrate the extent of the transformation that Fiat has undergone and the resulting benefits.


The Group closed 2012 with a trading profit of €3.8 billion, which – even without the contribution from the capital goods activities that are now part of Fiat Industrial – was the highest in our 114-year history. Together, Fiat and Fiat Industrial reported €5.9 billion in trading profit, which is almost double the previous record of €3.4 billion reached in 2008. The chart on the top right of this slide, which shows the breakdown of revenues by region, is key in understanding the change that Fiat has undergone since we formed the alliance with Chrysler in 2009. In 2012, Italy – historically the core market for Fiat’s mass-market brands – accounted for less than 10% of total revenues. It shows that the Group has finally achieved global diversification and is no longer dependent on any single market or region. Worldwide shipments reached 4.2 million vehicles, another record for Fiat. During the year, we also completed the mandatory conversion of all preference and savings shares into ordinary shares. This enabled us to simplify the company’s capital structure and governance in line with international best practice. In relation to the interest held by VEBA in Chrysler, as you know, we notified VEBA that we were exercising our option to purchase the first two tranches of its interest in Chrysler, each representing approximately 3.3% of Chrysler’s equity.


In absence of mutual agreement on application of the price calculation formula, we have sought a declaratory judgment from the Delaware Court and expect a decision during the second quarter. Consistent with Fiat’s intention to maintain a high level of liquidity and with the current restrictions on Chrysler’s ability to pay dividends to its members, the Board of Directors is recommending that no dividend be distributed for 2012.


Throughout the year, we continued to rigorously manage costs, focusing in particular on maintaining production levels in line with market demand. In North and South America, we made ample use of labor flexibility mechanisms available to us in order to respond to increased demand levels in several markets. By contrast, in Europe – where there has been a protracted decline in demand – we were forced to implement production stoppages, with the utilization of temporary layoff benefit schemes in Italy. We also downsized our workforce in Poland following allocation of production of the new Fiat Panda to Pomigliano, Italy. Despite the forced reduction in activity levels, our plants continued to receive awards for the quality of production processes and made considerable progress in further implementation of World Class Manufacturing principles. In total, application of WCM yielded approximately half a billion euros in savings during 2012. In terms of new models, in North America we launched the Dodge Dart – the first Chrysler Group model derived from a Fiat platform – as well as the new SRT Viper and Ram Light Duty pickup. In Europe, we introduced the new Fiat Panda and Fiat 500L and, in Latin America, the Fiat Grand Siena, Jeep Compass and Dodge Dart.


In Asia, in addition to the launch of the Fiat Viaggio, 2012 also saw the return of the Chrysler brand to the Chinese market. And finally, we signed an agreement with Mazda for development and production of a new rear-wheel-drive Alfa Romeo roadster to be launched during 2015.


Major achievements for the year included record sales for Jeep, which were up 20% over 2011 to more than 700,000 units worldwide. The brand posted growth in all major markets, including markets outside North America, and broke the previous all-time sales record set in 1999. Outside the NAFTA region, the brand has grown at a rate of nearly 50% per annum for the past two years. By model, the Grand Cherokee registered the best performance and the Compass and Wrangler posted increases of 20% and 16%, respectively, registering record volumes for the year.


Turning to Group results, in 2012 we achieved or exceeded all of our full-year targets. Revenues were up 12% to €84 billion, with volume increases for the mass-market brands in NAFTA, LATAM and APAC more than offsetting the decline in EMEA. As I stated earlier, trading profit was €3.8 billion and trading margin improved to 4.5%. Net profit was above €1.4 billion, compared with €1.7 billion in 2011, which included Chrysler Group from the first of June. Excluding unusual items, net profit for 2012 was €1.7 billion compared with €700 million for 2011. For Fiat excluding Chrysler, however, there was a net loss of approximately €1 billion. At year end, net industrial debt totaled €6.5 billion and total available liquidity remained strong at €20.8 billion.


Now let’s take a look at performance by business and region beginning with the mass-market brands. NAFTA made the largest contribution to the increase in Group revenues and trading profit. Revenues totaled €43.5 billion, representing a 29% increase over the prior year. Vehicle shipments exceeded 2 million units with increases in all markets. We continued to outpace all other U.S. automakers in terms of sales growth. For the U.S. and Canada combined, all brands posted double-digit sales increases. Trading profit for the region was €2.7 billion with trading margin improving to 6.2%.


In the United States, the industry registered a significant recovery with demand up 13% over the prior year. The Group achieved a 21% increase in sales and December marked the 33rd consecutive month of year-over-year sales gains. Market share was up 0.7 percentage points over the prior year to 11.2%. In Canada, sales growth was in line with the market at 6% and volumes were the highest in 12 years, with the Ram truck, Jeep Wrangler, Chrysler 200 and Fiat 500 all setting annual sales records. December represented the 37th consecutive month of year-over-year sales growth – the longest growth streak in the company’s history in Canada. Market share for the full year was 14.2%.


In Latin America, the Group recorded another year of strong results, posting €1.1 billion in trading profit and a double-digit trading margin. Revenues were in line with the prior year at more than €11 billion, with increased volumes being offset by negative currency translation impacts. At constant exchange rates, revenues were in fact 5% higher. Group shipments in the region totaled 979,000 units, an increase of 5% for the year and an all-time sales record for the Group.


Boosted by the introduction of government incentives, the Brazilian market reached a record of 3.6 million units for the year. Those incentives will be gradually phased out over the course of 2013. Fiat Group was able to capitalize on the increase in demand and actually outperformed the market, improving its leadership position with share up more than a full percentage point to 23.3%. To encourage the continued growth of the domestic car industry, the Brazilian government also launched a program that runs from 2013 to 2017 and is designed to stimulate investment in the sector. The program provides a series of tax incentives to encourage advancements in energy efficiency and promote investment in research and development activities. Fiat is well positioned to participate in and benefit from this program. In Argentina, the market contracted 1% and our market share declined to 10.6% as a result of reduced product availability associated with customs delays for imported vehicles and components.


In the Asia Pacific region, trading conditions were favorable with demand higher in nearly all of the Group’s key markets. Fiat Group posted a 50% increase in revenues for the region and trading profit was nearly double the prior year’s level. Retail sales, including joint ventures, totaled more than 115,000 units, representing a 28% increase over the prior year. The increase was driven by the Jeep brand which nearly doubled the prior year’s volumes and accounted for 64% of total sales in the APAC region. Chrysler brand also achieved excellent results on the back of the performance of the new 300C and Grand Voyager. During the year, we undertook several initiatives to strengthen our presence in the region. In India, we established a new Group-owned company for the distribution of Fiat brand products that will take over direct management of commercial activities in the Indian market and reorganize the dealer network. In Australia, as part of the Fiat/Chrysler integration process, Chrysler Australia became sole distributor for all Fiat, Alfa Romeo and Abarth brand products.


In terms of sales performance by individual market, we achieved a 45% increase in China, including sales through our joint venture, driven by excellent results for Jeep and the new C-segment Fiat Viaggio, which is the first vehicle to be produced locally through the joint venture partnership with GAC. In Australia, we had the highest year-over-year sales increase of any automaker, posting a 50% increase compared with an average of 11% for the market. In Japan, sales were up 35%, propelled by strong industry demand, with Jeep and Alfa Romeo leading the way. In South Korea, sales improved 23% for the year despite a modest contraction for the market overall.


In Europe, which accounts for the majority of the EMEA region, difficult trading conditions continued throughout the year. Demand for both passenger cars and LCVs fell to the lowest levels in at least 16 years. The market remains highly competitive, particularly in the mass-market segments, with structural overcapacity and continued pricing pressure. Group revenues in EMEA were down 11% over the prior year, mainly reflecting volume declines. The trading loss of €704 million was, unfortunately, in line with our expectations. Later on, I will go into more detail on our strategy to eliminate the losses associated with our mass-market brands in Europe. Industrial efficiencies, WCM synergies and disciplined SG&A spending partially compensated for the negative impact of volumes and pricing. Vehicle shipments in the EMEA region were just above the 1 million mark, a 14% year-over-year decrease primarily attributable to sharp declines in Italy, Germany and France. The average utilization rate at our plants in EMEA, including joint ventures, was below 70% based on the Harbour method or about 44% using the Technical definition.


European passenger car demand was down 8% over 2011, representing the fifth straight year of decline. Among the major markets, Italy experienced the most significant drop with volumes down 20%, the worst percentage decrease since 1993, to just 1.4 million vehicles, the lowest level since 1979. Double-digit declines were also recorded in France and Spain. The only major market to register growth was the UK, with demand increasing 5% over the prior year. Group brands recorded a 6.3% combined share of the European market, slipping 0.6 percentage points over 2011. That decrease was largely attributable to the unfavorable market mix, as Italy’s weighting in the European total fell to 11.2%. That represents a 4.4 percentage point decrease compared with its weighting pre-crisis of 15.6%. However, our share in Italy was up slightly to 29.6%. That result was primarily driven by performance in the A segment, where share reached 60%, and the Small MPV segment, where after just one quarter of sales the 500L was already positioned as one of the best selling models.


The European light commercial vehicle market registered a 12% contraction for the year. Overall performance was heavily affected by the 33% drop in demand in Italy. However, all other major markets also posted significant declines. The Group’s sales were down 18% over the prior year, despite the Fiat Ducato registering its highest ever segment share and ranking among the best selling commercial vehicles in its category for the 6th consecutive year. Fiat Professional closed the year with an 11.7% share of the European LCV market, a decline of 0.8 percentage points that was entirely attributable to the unfavorable market mix. Group share of the Italian market was 42.7%, compared with 44.4% for 2011, when sales benefited from significant fleet renewal activity. Excluding Italy, however, our share in other European markets was 0.2 percentage points higher at 9.2%.


The next few slides give an overview of some of the major developments on the product front during the year. In NAFTA, the new Ram 1500 was named Motor Trend’s “Truck of the Year”, as well as receiving 6 other prestigious awards. For its best-in-class fuel efficiency, the Dodge Dart was named “Most Earth Friendly Car of the Year”. At the Detroit Auto Show in January, we presented the new Grand Cherokee complete with an innovative new 8-speed transmission that offers lower fuel consumption and emissions, while at the same time improving performance. The chart on the right shows some of the Group’s best-performing products in the U.S. and Canada, where sales volumes for the year were up 21% and 6%, respectively.


As I mentioned earlier, in Brazil the Group posted the best performance in its 36-year operating history in terms of both sales and production. With the success of our A and B segment models, where combined sales were up 18% for the year, we regained our leadership achieving a combined 30.2% share. The new Strada also made a significant contribution, recording its twelfth straight year as the number one small pickup with more than 110,000 units sold.


In APAC, we launched two key products during the year. The Fiat Viaggio, presented at the Beijing Auto Show, began arriving at Chinese dealerships in September. Demand grew rapidly and by the end of the fourth quarter the Viaggio had already established itself as the Group’s second best selling vehicle in China after the Jeep Compass. Together with continued development of the distribution network, two new versions to be released in 2013 will contribute to volume increases projected in China. At year end, the Chrysler brand expanded its product offering in the APAC region with the launch of the Chrysler Ypsilon, the first ever small hatchback model in the brand’s product range.


In EMEA, the new 500L presented in September was launched in markets across Europe during the fourth quarter. The vehicle was awarded 5 stars by EuroNCAP and, just four months after launch, it was positioned as leader in its segment in Italy and fourth in Europe registering consistent share gains. Fiat will continue to add to the 500L range during 2013 with new engines and versions. The Panda was once again the most popular A-segment vehicle in Europe, with a 15.7% segment share, and nearly 190,000 vehicles were shipped during the year. With the addition of the all-new 4x4, which was named “SUV of the Year 2012” by TopGear magazine, the Panda family now has the most extensive offering in its segment.


Turning to the outlook for 2013, our expectation of moderate growth in the U.S. market is underpinned by the positive performance recorded in the first quarter. In Canada, we expect demand to remain in line with 2012 levels. For Latin America, we expect moderate growth for the region with another record year in Brazil and demand in Argentina increasing in line with GDP. In APAC, demand is projected to increase for the region overall, driven by growth in China and India but partially offset by contractions in Japan and Australia, where the industry is expected to normalize after strong growth in 2012. With regard to Europe – in light of demand levels for passenger cars and LCVs during the first quarter – a further contraction, albeit moderate, is expected for 2013, resulting in the sixth consecutive year of decline. Our current expectation is that industry demand will be below what we indicated in January as the basis for our full-year 2013 targets.


When we announced Group results for 2012, we indicated a target of worldwide vehicle shipments for our mass-market brands for 2013 of between 4.3 million and 4.5 million. Approximately half of those volumes will come from NAFTA. LATAM and EMEA are expected to contribute around 1 million each and in APAC our target is to double volumes compared with 2012 levels.


For our Luxury and Performance brands, Ferrari increased revenues 8% over the prior year to €2.4 billion, posting an all-time sales record driven by performance for 12-cylinder models. North America, Ferrari’s number 1 market, accounted for 28% of total shipments. Trading profit was €350 million for the year and trading margin improved to 14.4%, driven by higher volumes, a more favorable product mix and positive contributions from licensing and financial services. It was also an optimum year for Maserati with volumes up 2% and revenues of €634 million. In the U.S. – Maserati’s number one market – the brand posted its best sales performance in 8 years. In China, the brand’s second largest market, shipments were up more than 10% for the year. Maserati closed the year with trading profit of €42 million, in line with results for 2011. The positive impact of higher volumes and continued improvements in operating costs were offset by significant costs incurred during the year in connection with the production start-up for new models.


The components business also contributed positively to results. Magneti Marelli benefited from positive market performance in Germany, NAFTA and China, but there were difficult trading conditions in most European markets and a slowdown in Brazil, which was particularly weak in the first half of the year. Revenues totaled €5.8 billion, in line with the previous year. Trading profit of €140 million for the year reflected lower volumes in Europe, costs associated with the significant number of production start-ups in the NAFTA region and cost inflation in Brazil. Teksid reported revenues of €780 million, a year-over-year decrease attributable primarily to lower volumes for the Cast Iron business unit particularly associated with lower demand in the heavy vehicle segment. Trading profit performance reflected the decrease in revenues. Comau posted full-year revenues of €1.5 billion, a 6% increase over 2011 primarily attributable to the contribution from the Powertrain Systems business. Trading profit was also higher at €36 million.


Efforts to align our activities to the highest sustainability standards were once again recognized internationally. For the fourth consecutive year, Fiat S.p.A. was included in the Dow Jones Sustainability World and Europe Indexes that only admit companies that are best-in-class in terms of sustainability performance. Fiat achieved the maximum score in nearly every area of analysis in the environmental dimension – particularly those related to its climate change mitigation strategies – and, in the social dimension, it received the maximum score for human capital development and management, occupational health and safety, stakeholder engagement, and corporate citizenship and philanthropy. We value this recognition because it serves as testimony to the sense of duty and values that are an integral part of our business culture.


The financial targets for 2013 that we communicated during the presentation of the Group’s 2012 results were:

revenues in the €88-€92 billion range

trading profit between €4 and €4.5 billion

net profit between €1.2 and €1.5 billion

net industrial debt of approximately €7.0 billion

Market conditions in the NAFTA, LATAM and APAC regions continue to support our projections, while Europe still presents significant levels of uncertainty. When the Group announces Q1 2013 results at the end of April, we also plan to give updated full-year targets for each region.

* * *


Before closing, I would like to make a few comments on our strategy in

Europe.

In order to fully appreciate why we have chosen the path we have at

this crucial moment in our history, it is important to first understand

how different the Fiat of today is.

Not only has the Group continued to grow year after year, but even

more significantly in the past decade it has undergone a fundamental

transformation.

It has changed in structure, financial solidity and geographic scope, as

well as relative weighting in the auto industry.

The Fiat of 2004 no longer exists.

We only have to look at the Group’s profile in 2004 – the auto activities

in particular – and then again in 2012 to immediately see how

profound that transformation has been.


The graph on left shows a business whose activities were almost

entirely concentrated in one geographic region.

The auto activities had revenues of around €27 billion, 92% of which

were generated in Europe.

Excluding Fiat Industrial, it employed just over 100,000 people, more

than half of whom were located in Italy.

Outside Europe, our presence was limited to South America and, even

there, it was substantially concentrated in Brazil.

We were an automaker of rather modest dimensions, selling around

1.8 million vehicles a year, and we were eleventh in the global ranking,

just behind Suzuki.

But size and ranking apart, Fiat was making huge losses and it was on

the verge of extinction.

Operating losses of around €1.3 billion, including unusuals, were

concentrated entirely in Europe, while the Latin American business

was essentially breaking even.

The Fiat of 2012 is light years away from where it was then.

The Group now has a strong and well-diversified global presence.

Annual revenues have reached €84 billion – more than three times

what they were in 2004 – and are distributed more evenly, with Europe

now only accounting for just over 20% of the total.


There are 215,000 employees worldwide, of which around 40% are

located in Europe, a third in North America and a quarter in Latin

America.

In absolute terms, the number of Fiat Group employees in Europe

increased by around 15,000 people between 2004 and 2012.

Together with Chrysler, we now sell more than 4.2 million vehicles a

year and have become the seventh largest automaker globally, just

behind Ford.

The Fiat of today is capable of generating significant profit despite

losses associated with the mass-market brands in Europe.

* * *

The truth is that over the past nine years, from the potential ashes of

an Italian automaker, we have created a major auto group with a

global footprint.

We did it through a series of steps that were crucial to turning the

organization around and then beginning to expand.

The first of those steps was in 2004 when Fiat was in critical condition.

We changed the Group from the inside, transforming the structure and

culture and restoring the sense of challenge and competition that had

somehow been lost.

Then, in response to increased difficulties in the European market –

which were then aggravated even further by the general economic

crisis – we took another important strategic step.


We made a deliberate choice to reduce our over-dependence on

Europe and increase our focus on markets in NAFTA and Latin

America.

Leveraging the profit potential in other markets, which clearly was no

longer achievable in Europe, was the only way to ensure a future for

Fiat.

March sales figures for the U.S. and Canada have reconfirmed the

value of that decision.

In the U.S., we have now posted 36 months of consecutive year-over-

year sales gains.

In Canada, we have just achieved a new industry record, posting the

longest growth streak ever recorded – 40 consecutive months – and

for the first quarter of this year we were the number one automaker in

the country.

The financial security provided by our activities outside Europe –

particularly NAFTA and LATAM – has enabled us to support and

protect our presence in Europe.


However, EMEA cannot survive indefinitely being subsidized by profits

generated elsewhere.

That would risk permanently undermining the solid foundation that we

have been diligently building over the past several years, as well as

compromising the future of the Fiat/Chrysler integration.

And that is why we have prepared ourselves to move forward to the

next step.

* * *

As we have proven more than once in the past, moments of crisis can

also be moments of great opportunity. They can give us the chance to

chart a new course for the future.

To overcome difficulty, we need vision, we need to re-evaluate our

circumstances – and at times even ourselves.

That is exactly what is behind the plan we presented to the financial

community on October 30th last year.


It is a courageous plan that, as I myself have said, is “not for the faint-

hearted”.

We have adopted this strategy to deal with the effects the European

crisis is having on our business and bring new production to our car

plants in Italy.

We have decided to reorient our strategy in response to current market

difficulties and trends in consumer demand and preferences.

We plan to reduce our exposure to the mass market and shift our

focus toward the less crowded premium end of the market.

At the same time, we can increase utilization of our manufacturing

base in EMEA to support the development of our global brands – Alfa

Romeo, Maserati and Jeep – and key models in Fiat brand’s 500 and

Panda families.

The gamble we plan to take in Italy, and in Europe more generally, is

not an uncalculated gamble, however. There are several concrete

factors that underpin the decision.

First: in Europe we already have state-of-the-art manufacturing

facilities and an excess production capacity, whereas in all other

regions we are operating near full capacity.


Second: we can leverage the experience and know-how we already

have in-house with brands such as Ferrari, which is the benchmark for

premium cars around the world.

Third: over the past three years, the combination of Fiat and Chrysler

has enabled us to develop architectures and powertrains that will place

us on the cutting edge in the premium segment.

Fourth: as a result of the combination with Chrysler, today Fiat has a

global presence and the access we now have to export markets in

North America and Asia offers us the opportunity to utilize some of our

excess production capacity in Europe to service export markets.

By implementing this plan, we expect to be able to utilize the excess

production capacity of our mass-market activities and, by 2015-2016,

achieve breakeven also in Europe.

To think – as someone wrote – that coming out with a few new

models, even if they are commercially successful, will automatically

justify the enormous investment that has gone into them is a pure

illusion.


Putting new investment into an activity focused solely on the European

market, which is currently in the midst of a major economic crisis, just

wouldn’t make sense.

In fact, it would be outright suicidal.

The net effect would simply be more losses and more suffering for

workers.

The reason we are even able to contemplate this strategy is that the

combination of Fiat and Chrysler has created an organization which is

profoundly different to what it was 3 years ago.

Fiat has opened itself up fundamentally and irreversibly to the outside

world.

* * *

The process of relaunching our manufacturing activities in Italy has

already begun.

In January, we opened the Avvocato Giovanni Agnelli plant in

Grugliasco, where the Group has invested more than half a billion

euros, not taking into account development costs.

The plant has already begun construction of the new Maserati

Quattroporte. This is to be followed by production of the Maserati

Ghibli, which will be launched by Summer of this year.


Work is also underway to prepare the Melfi plant for production,

beginning in 2014, of two new models for the global export market.

Those models will be:

the new Fiat 500X, the latest addition to the 500 family

and a small SUV for Jeep, which represents the brand’s

entrance into a new market segment

More than €1 billion in investments are planned and they will be

shared equally by Fiat and Chrysler.

* * *

But let me make one thing clear.

There was only one alternative to the course that we have chosen to

resolve the problem of overcapacity that Fiat, along with all other

automakers, is facing in Europe.

That would have been to close one or more plants in Italy.

It would have been the easiest and most immediate alternative, not to

mention the most rational from a financial perspective.

It was the route some had hoped we would take – especially the

financial community. It was also the route that many others were afraid

we would take, because of the inevitable social consequences.


However, the reason we decided to rethink our business strategy at

least in part is because we believe that making cars is not just about

accounting and efficiency.

We have become a global organization and we are free to follow an

industrial strategy that is rational and in the best interests of the Group.

But from the very beginning we have managed this freedom with a

sense of responsibility, constantly seeking the appropriate equilibrium

between industrial logic and social responsibility.

And that is why, rather than choosing the easier route, we chose

instead the courageous and more responsible route.

* * *

Italy is currently going through a very difficult period with major

challenges that need to be addressed and resolved.

We are aware that we have undertaken an enormous commitment,

made all the more significant by current conditions of uncertainty.

But we have never shrunk back from our commitments and we don’t

intend to now at such a critical moment.

The course that we have begun represents the contribution that Fiat

intends to make, however modest in the grander context, to the future

of this nation.


A sign of hope and of commitment.

If we dedicate all of our energies to doing what we do well, we will be

making a contribution to restoring the image of Italy as a

technologically-advanced nation where manufacturing is still viable.

We have already proven that it can be done: at Pomigliano we have

created a model factory, the best in Europe, as even the Germans

acknowledge.

There is no reason why we can’t do it again elsewhere.

* * *

Whether for historic reasons – or because we are the largest private

industrial enterprise in Italy – Fiat is still very much considered by most

to be an Italian group.

The fact that we have become a global automaker, capable of

competing with the very best in the sector, is considered of little or no

importance.

However, we are no longer the Fiat that most Italians imagine us to be.

Sometimes when people see their children grown up, it is difficult for

them to understand and accept the change, to view them as mature

adults.

Sometimes, the relationship between Italy and Fiat is a bit the same.


But the principal reason that our group has transformed itself and

expanded internationally is to escape from the isolation that would

have jeopardized its future.

We have done it to become stronger, more capable, more conscious

of our potential.

No one can blame us for that.

For more than a century, the story of Fiat has been closely interwoven

with the story of Italy.

Over the years, Fiat has been a major player in the industrial

development of Italy. It has contributed to its social and economic

growth, and to its prosperity.

And, in turn, it has also been nurtured and enjoyed prosperity.

Today, 114 years later, that spirit is still alive.

Fiat has been totally transformed. It is an open, global organization

that is very different to the image of Fiat that many in this country still

hold on to.


We can’t recreate the Fiat of the past – and we shouldn’t want to.

We do intend to do our part for Italy, however.

We want to contribute to building a future that is worthy of our

aspirations in terms of industrial, social and economic progress.

Because there will always be a piece of Italy in every Fiat, just like

there will always be a bit of Fiat in every Italian.

[Video “La Nostra Vita” – 60’’]

* * *

I would like to conclude by thanking all of our shareholders for

supporting Fiat and its management over the past 12 months, for

believing in the Fiat/Chrysler integration and for remaining by our side

as we embark on this new phase of growth.

I would also like to thank all of the 215,000 people at Fiat and Chrysler

around the world for their contribution over the past year and for what

they continue to do for the future of our group.

* * *

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