Notas De Marketing Fiat Stilo

earnings performance and to become more competitive.

This effort is aimed at:

-- updating its product line to improve its presence in more profitable market segments, including entry in segments where Fiat Auto currently does not have a presence

-- increasing sales on European markets, thereby reducing its dependence on the Italian market

-- increasing sales through more profitable channels.

In view of these goals, Fiat Auto undertook a tough, detailed plan of action at the beginning of 2002 based on developing new models, strengthening its sales operations, and cost cutting.

In the area of product innovation, Fiat Auto has a capital spending and research and development program underway calling for average annual investments of 2.5 billion euros between 2002 and 2005. These investments are aimed at creating new products, which will be used to gain a foothold for the company in growing market segments where it currently does not have a presence. At the end of this process, Fiat Auto models will have an average age of less than four years.

Programs for the joint development of common components as part of the industrial alliance between Fiat Auto and General Motors will make a significant contribution to competitiveness. In 2005, 50% of components will be shared. The cooperation with General Motors will also lead to substantial streamlining of their respective powertrain and transmission output. Introduction of a new generation of powertrains will start in 2003.

In the area of sales operations, Fiat Auto plans call for investing 150 million euros a year between 2002 and 2005 to strengthen its distribution network; increasing sales of vehicles to fleet customers through the hiring of 200 specialized sales