|Formation of Fiat Group Automobiles SpA, Feb 1 2007|
29.01.2007, Hakulinen Yrjö
|Formation of Fiat Group Automobiles SpA|
On February 1, 2007, Fiat Auto will change name to “Fiat Group Automobiles SpA.”
Four new companies will be formed at the same time, 100% owned by Fiat Group Automobiles SpA: “Fiat Automobiles SpA,” “Alfa Romeo Automobiles SpA,” “Lancia Automobiles SpA,” and “Fiat Light Commercial Vehicles SpA.”
The current heads of the four brands will be designated as chief executive officers of the respective companies. The operations and the personnel will remain at Fiat Group Automobiles SpA.
These changes are consistent with the new corporate culture at the Fiat Group. In particular, they reflect two strategic decisions as to how to approach the business. On the one hand, the Group will exist as a unified whole, and on the other hand, each company will be characterized by the specific nature of the respective operating sectors and individual brands.
Over the next few months, all Group activities will highlight this aspect by pairing the “Fiat Group” mark with the sector or brand trademark.
The birth of Fiat Group Automobiles SpA represents the next, natural step since the Group mark was changed at the end of 2005.
Inclusion of the word “Group” in the name reflects its prominent role as a constituent part of the Fiat Group, considering the contribution that Fiat Auto makes to Group results and the realization of major synergies with other Group sectors.
The new name also identifies a key area of activity that has recently undergone profound transformation, featuring a newly streamlined structure that is more solid and compact than before. At the same time, it also indicates the synergies linking the automotive business, which has already generated major benefits in terms of operating efficiency, resource management, and cost cuts.
Finally, the name “Fiat Group Automobiles SpA” highlights the international vocation of this large industrial organization. The creation of four companies reflects the attention devoted by the Group to positioning the brands on the market.
The Fiat, Alfa Romeo, Lancia, and Fiat Light Commercial Vehicles brands each have a specific identity with defined, recognized characteristics, and apply distinct commercial and market policies. Formation of these four new companies must be interpreted in view of the growing distinctiveness of the brands, enhanced value, and reinforcement of their competitive capacities.
The new configuration will not alter relationships with employees, dealers, and suppliers in any way. On the contrary, improved brand name recognition will promote better relations with the sales network, customers, and partners.
To sum up, the objective of the changes announced today is to reinforce the individual brands within the scope of a single and stronger automobiles sector.
Turin, January 23, 2007