As described in Note 22, to the Consolidated Financial Statements at december 31 2007, the Group holds certain derivative financial instruments whose value is linked to the price of listed shares and stock market indices (principally Equity swaps on Fiat shares).
Although theses transactions were entered into for hedging purposes, they do not qualify for hedge accounting under IFRS. As a consequence, the variability of the underlying values could have an effect on the Group’s results.
In addition in 2007 the Group entered derivatives contracts linked to commodity prices to hedge specific exposures on supply contracts.