Some background on FIAT Group – Fiat Page 4

THE FIAT GROUP - MUCH MORE THAN JUST CARS

Best known for its car brands - Fiat, Alfa Romeo, Lancia, Ferrari and Maserati - the Fiat Group has, over its 107 year history, grown into an economic force across a remarkable and diverse range of industries that is a major player not just in the European economy, but also around the world.

In Australia, leaving aside the people who work in the car business, Fiat directly employs more than 600 Australians in its Iveco Truck business, which can trace its roots back to 1903 and which became a fully owned subsidiary in 1992. Not only do Australian truckers rely on Fiat products, thousands of Australian farmers rely on Fiat agricultural equipment from Case IH and New Holland and, since their launch in 2000, a rapidly growing number of people rely on Fiat Ducato vans.

The Group's manufacturing and service activities are carried out by the Operating Sectors.

The Group's principal Sectors, which account for 82% of total sales, are Fiat Auto, Ferrari and Maserati (automobiles), CNH (agricultural and construction equipment) and Iveco (commercial vehicles).

In addition to the latter, there are the activities of the Components and Production Systems Business Area - comprised of Magneti Marelli (components) and Teksid (metallurgical products), and Comau (production systems) -, and Other Operations, which include Business Solutions (services) and Itedi (publishing and communications). In 2005 Fiat announced the creation of Fiat Powertrain Technologies, a new industrial unit that will integrate the Groups' innovation capabilities and expertise in engines and transmissions.

The scale of the Fiat Group business is revealed by the fact that in Fiat Research and Development activities alone there are approximately 12,400 people at 121 centers in Italy and abroad. Group investments in R&D activities totaled 1,810 million euros.

Another sign of its strategic position in the industry are its joint ventures. These include JVs with the PSA Group of light commercial vehicles and people movers; Ford for small cars; General Motors for diesel engines and car platforms; Suzuki for a small 4WD vehicle and diesel engines. In addition Fiat's development of the Unijet and Multijet diesel systems sees these system sold under license to many other car makers.

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OPERATING SECTORS

FIAT AUTO

One of the pioneers of the car industry, Fiat built its first car in 1899. Since then it has produced approximately 87 million cars and light commercial vehicles and many of its models have marked important milestones in motoring history.

Fiat Auto operates in international markets under four brands, all distinguished by their innovative content, style and manufacturing solutions: Fiat, known for its creativity, versatility and practicality; Lancia, which features an elite and exclusive line of models; Alfa Romeo, the combination of sportiness, technology and elegance in a unique design; and Fiat Light Commercial Vehicles, a reference point for easier, more productive and gratifying working experiences.

To round out the range of products and services offered, Fiat Auto's activities include sales financing and a broad array of support programs for customers and the dealer network.

Fiat Auto has plants in Italy, Poland, Brazil and Argentina. Manufacturing is also carried out through either joint ventures or licensing agreements in France, Turkey, Egypt, South Africa, India, China and Vietnam.

On eleven occasions Fiat Auto models have won the European Car of the Year Award, the car industry's most prestigious recognition worldwide. The award has been won eight times by Fiat, twice by Alfa Romeo and once by Lancia.

The continuous, strong thrust toward product renewal of the Fiat Auto brands calls for the launch of 29 vehicles, including new models and restyling, in the 2005-2007 period.

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FERRARI

The first Ferrari was built in Maranello in 1947 at the company Enzo Ferrari had transferred from Modena five years earlier when it was given the name by which it is known today. It was the 125 Sport, a two-seater that would go on to win the Rome GP in 1947 and very soon went on to become a sophisticated grand tourer road car. The Company has come a long way since then. 1969 saw the acquisition of 50% of the Company's shares by the Fiat Group, whose interest in Ferrari rose to 90% in 1988. In 2002, Mediobanca acquired a 34% interest in Ferrari and this interest was then divided among Commerzbank, Lehman Brothers, B.P. Emilia Romagna, Compagnie Monegasque de Banque.

Ferrari's mission, however, remained the same: to build unique sports cars destined to represent the excellence of Italian cars, whether on the road or on racing circuits. And in fact the legend continues. Suffice it to look at its successes on the circuits, where the Scuderia Ferrari in 2004 won its fifth Formula 1 Drivers' Championship and its sixth Constructors' Championship in a row. Achievements reinforced by sales results and the vast number of fans that follow the races on circuits throughout the world.

Annual production is pitched at a self-imposed limit of about four thousand cars to ensure maximum quality. The workforce numbers just less than 3000.

The Maranello and Modena plants have recently been the scene of a significant technological upgrade. So alongside the wind-tunnel designed by Renzo Piano in 1997, there is now one of the most modern, "worker-friendly" plants in the world, together with the thoroughly refurbished Maserati plant in Modena. Particularly noteworthy are the new structures dedicated to Machining Processes and Dies and the spectacular Product Development Center designed by Fuksas.

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MASERATI

Maserati is an all Italian brand with a glorious sporting history: since the very beginning it has been manufacturing fascinating and exclusive cars built in short production runs, outstanding in terms of prestige, technological innovation, styling and performance.

Between September 2001, on the occasion of the Frankfurt Motor Show and January 2002 at the Detroit Motor Show, Maserati presented the new Spider and Coupé models powered by 390 bhp 4200 cc V8 aspirated engines, an event that marked the brand's long-awaited return to the North American market after almost 12 years.

The 2003 Frankfurt Motor Show saw the debut of the Quattroporte equipped with a 400 bhp 4200 cc V8 power unit, a top-of-the-range saloon that combines the qualities of a prestige car with those of an authentic grand tourer.

Founded in Bologna in 1914, Maserati celebrated its 90th anniversary in 2004 and returned to the racing circuits by taking part in the international GT FIA championship with the brand-new MC12 the same year and by taking the team and manufacturers' championships in 2005.

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