Statement by Fiat CEO Sergio Marchionne regarding the new Fiat Auto organization

We acted very quickly, taking slightly over a month to revamp Fiat Auto's organization and set up a leaner, more efficient and more competitive structure.

Our goal was to make the most of our managers' skills, leadership abilities and personal qualities in order to form the team that from today onwards, under the direction of Herbert Demel, will be responsible for guiding Fiat Auto's cultural transformation and relaunch efforts.

In planning the new structure, we focused both on high-profile people from outside and the best resources we have inside the Group, with an eye to building effective professionalism and enabling promising young managers to take part in the decision-making process.

Deep-seated changes can spring only from extensive participation. This is why we chose people who, because of their professional experience and character, can spearhead the move to a different mentality: people who have a proven aptitude for teamwork and goal achievement; people who are dedicated to continuous improvement.

This change in management, personnel and mentality will help develop a heightened sense of responsibility, promoting fast decisions and establishing synergies between the functions. There can be no doubt that it will lead to multiple benefits in terms of operating efficiency, resource management and cost containment.

I am convinced that this team, made up of young and motivated managers, has the skills, the personality, and the enthusiasm needed to go head-to-head with worldwide competition, enabling Fiat Auto to make a quality leap.


Turin, September 1, 2004

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