FIAT ANNOUNCES KEY APPOINTMENTS

Fiat S.p.A. is pleased to announce significant organisational changes effective September 1, 2011.

As a result of the acquisition of majority ownership of Chrysler Group and consistent with the objective of enhancing the operational integration of Fiat S.p.A. and Chrysler Group, Fiat S.p.A. is today announcing the formation of a Group Executive Council, similar to the one that managed Fiat S.p.A. until the demerger of the Fiat Industrial activities.

The Group Executive Council (GEC) is the highest executive decision making body within Fiat outside of its Board of Directors[1].  It is responsible for reviewing the operating performance of the businesses, setting performance targets, making key strategic decisions and investments for the Group and sharing best practices, including the development and deployment of key human resources. 

The GEC will have four main groupings.

The first is composed of four Regional Operations Groups for car manufacturing and sales, plus Parts and Service (MOPAR), Automotive Components (mainly Magneti Marelli) and Systems and Castings (Teksid and Comau). Each will be the responsibility of a Chief Operating Officer (COO) who will drive the organisation via a regional Management Team (subject of a separate announcement prior to September 1, 2011).  The COOs are accountable for Profit and Loss of their region/business, the management of regional resources, including manufacturing and commercial activities.

The COOs appointed to the GEC are as follows:

The second grouping is reflective of the Group's focus and emphasis on its brands.  Each of the global or potentially global brands is represented in the GEC, and their responsibility will be to improve and develop an appropriate brand portfolio and to assist in the development of adequate commercial and marketing strategies in each of the Group's operating regions.

The Brand Heads appointed to the GEC are as follows:

They will be supported by a Chief Creative Officer, Olivier François.

The third group is composed of industrial process leaders, who will drive consistency and rigor across the operating regions, and optimize the capital allocation choices the Group will face in the years to come.

The final group is composed of support / corporate functions[2].

The GEC will utilise Alessandro Baldi as the Executive Coordinator.

"We have now reached the right moment to step on the accelerator of Fiat-Chrysler integration," said Sergio Marchionne, Chief Executive of Fiat and Chrysler.

"These appointments are the result of an extensive process of evaluation of the technical and leadership skills of the individuals who have been appointed to the GEC. But equally important is the fact that they reflect the multi-cultural geographically diverse nature of our businesses.  We recognise in these leaders the future of Fiat-Chrysler as an efficient, multi-national competitor in a global automotive marketplace.

"It is a privilege for me to have the opportunity to lead this group of people and see them grow, to watch them as they transform challenge into success and into faith in themselves and what they can achieve."

 Turin, 28 July 2011

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For further information please contact:

Peter Newton, Public Relations Director
or Tom Johnston, Press Relations Manager

Fiat Group Automobiles UK Ltd
Tel: 01753 511431
Fax: 01753 516871

E-mail addresses: peter.newton@fiat.com or tom.johnston@fiat.com

This press release is available on www.fiat4media.co.uk                 

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[1] Fiat S.p.A. has only a majority ownership interest in Chrysler Group LLC, which is ultimately governed by its Board of Directors the majority of which are not affiliated with Fiat S.p.A.  Furthermore, Chrysler relies on capital markets funding for its operations which requires that its liquidity and capital resources be contained within Chrysler. Beyond dividends that may at some point in the future be declared by the Board of Chrysler Group and paid to Chrysler Group members on a pro rata basis, the financial resources of Chrysler Group are not available to support the operations of Fiat S.p.A..  In addition to ensuring the maintenance of Chrysler Group's standalone financial integrity, the Board of Directors of Chrysler Group also reviews and approves any related party transactions above  de minimis levels between Fiat and Chrysler Group.  Furthermore, the Board of Directors has oversight responsibilities for Chrysler Group, including approval of capital expenditures above certain levels.  To the extent that any decision of the GEC impacts Chrysler Group and falls within the review and/or decision ambit of the Board of Directors of Chrysler Group, such decisions are also subject to the approval of the Chrysler Board, as would any determination by the management of Chrysler Group.

[2] Certain functions that are fundamental to the governance structure of the individual companies (such as Legal and Internal Audit) remain independently within the ambit of the operating companies (Fiat and Chrysler Group).

[3] Also coordinates the Groups' sustainability initiative.