Reorganization At Fiat Auto - New Business Units

Reorganization At Fiat Auto Creates New Business Units For Alfa Romeo, Lancia And Fiat Lead By New Chief Executives

Fiat Auto, the division of the Fiat Group that produces Alfa Romeo, Fiat and Lancia products, has announced a complete reorganization of its structure and the appointment of new Chief Operating Officers (COO) for each of the four new divisions.

Fiat Auto Chief Executive Officer, Giancarlo Boschetti, presented the new organizational structure to the annual management meeting of Fiat Auto which was held today (Tuesday 19 February 2002) in Turin. Fiat Auto, a division of the Fiat Group, is now divided into four Business Units: - Fiat/Lancia/Light Commercial Vehicles - Alfa Romeo - International Development - Customer Services

After Sales services will also be organized as a business unit and will play an important role within the new organization so paying testimony to Fiat Auto's commitment in this area. The financial results deriving from this activity will obviously positively impact on the four Business Units.

The main objectives of the reorganization are: development of its brands, strengthening of sales and after sales activities, consolidation of international activities and growth in financing and mobility services.

A primary focus of this new organizational structure will be to enhance the specificity of its brands, which represent an important heritage for Fiat Auto. The "Fiat" brand will continue to be aimed at the general public with highly innovative products. Lancia will strengthen is position as an elite and exclusive brand. Alfa Romeo will consolidate its place in the top tier of stylish sportscars brands through the improvement of its sales volumes and the entry into new markets.

Each Business Unit will be a full-fledged autonomous entity fully responsible for its operating and financial results, and with its individual production, manufacturing, marketing, commercial, quality and human resources management organizations.

This new organization is intended to streamline decision-making processes and lead to increased focus on customer satisfaction, which remains Fiat Auto's primary objective.

Traditional staff functions and functions necessary to ensure synergies within the Business Units will be maintained at the central level. Responsibility for the activities connected to the alliance with General Motors will also be assigned to a central department while the Business Units will be responsible for the development of operational activities.

The new Business unit responsible for Fiat, Lancia and Commercial Vehicles will be headed by Gianni Coda; the Alfa Romeo business unit will be under Daniele Bandiera; International Development will be headed by Jan Nahum and Customer Services by Silvano Cassano. The After Sales Business unit will have Raimondo Beltramo as its COO.

FIAT AUTO ORGANIZATIONAL STRUCTURE

CEO and General Manager: Giancarlo BOSCHETTI

Business Unit Fiat/Lancia/Commercial Vehicles: Gianni CODA

Business Unit Alfa Romeo: Daniele BANDIERA

Business Unit International Developments: Jan NAHUM

Business Unit Customer Services: Silvano CASSANO

Business Unit After Sales: Raimondo BELTRAMO

Purchasing: Tommaso LE PERA

Powertrain: Nunzio PULVIRENTI

Product and Process Engineering: Walter MORTARA

Logistics: Gianluigi SERI

Quality: Vincenzo NERVI

Corporate Development: Giuseppe PERLO

Finance: Diego PISTONE

Human Resources: Giuseppe ALESSANDRIA

Environment and Institutional Relations: Vincenzo RUOCCO

General Counsel: Giorgio FOSSATI

Press Relations: Simone MIGLIARINO

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