The Fiat Group is the largest industrial enterprise in Italy and one of the founders of the European motor industry. Right from the outset, the company had a strong propensity for international expansion and innovation.
Active for over a century, the Group transformed its vocation for the world of engines into a strong commitment to all forms of mobility for people and goods: from cars to trucks, to agricultural tractors, marine engines, aeronautical engines and space launchers.
In 2003, Fiat redefined its core business area by focusing its manufacturing and service activities on the automotive sector. As a result, certain businesses no longer considered strategic were sold, rigorous cost-containment measures were implemented and an incisive industrial relaunch enabled the Group to reach operating break-even in 2004, and post a profit in 2005.
During 2007, the Group continued to pursue its strategy of strengthening the industrial and commercial structure through targeted alliances focusing in particular on high-growth markets such as Russia, India and China.
For Fiat, 2007 was an important year that saw the completion of the industrial turnaround plan launched in July 2004, and the achievement of all the Sectors and Group targets set at that time. Many of these targets were even exceeded. During 2007, Fiat started the implementation of the 2007-2010 growth and margin expansion plan, which will transform the Group into a significant international industrial enterprise. The Fiat Group industrial operations are finally debt free and close to fully regaining its investment grade status, thus marking an additional clean break with the recent past.
These successes are confirmed by the Company’s excellent results for 2007: revenues of nearly 59 billion euros, 12.9% higher compared to 2006; a trading profit of 3.2 billion euros, well ahead of previous guidance and 66% higher than the prior year; and a trading margin that increased from 3.8% to 5.5%. Last but not least, in 2007 the Group extinguished its net industrial debt and closed the year with 0.4 billion euro net cash.
During 2007, the Group received several important reognitions at the international level: the 500 was voted “2008 Car of the Year”, the Linea won the “Autobest” award, the Punto was named “Car of the Year” in Brazil, and the Scudo was nominated “2008 International Van of the Year”. Meanwhile, New Holland’s T7000 tractor was named “Tractor of the Year” at the Hanover agricultural machinery exhibition Agritechnica and Ferrari won the 2007 Formula One Drivers’ and Constructors’ Championships.