economically conscious vehicles. Fiat has been manufacturing smaller for years‚ overseas in Europe‚ Brazil and even China. With the acquisition of the American made Automotive company Chrysler in 2009‚ Fiat has launch a marketing campaign to finally gain a hold in the American market. Is America ready for “Every Once in a while‚ something comes along so powerful in concept‚ so revolutionary in design‚ it redefines a generation – America‚ get ready for the one and only FIAT 500. Despite the American
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GAAP / IFRS Fiat Group’s first-time adoption of IFRS Differences Between Key Accounting Methods Under Italian GAAP And IFRS What characterizes the differences between the two sets of methods? - Substance over form Example: Recognition of revenue - Less flexibility Example: Recognition of R&D cost - More transparent Main factors that affect management’s reporting incentives and strategy in fiscal year 2005 - Research & Development: Because Fiat main operations are based on the manufacturing
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Case study: FIAT GROUP’S FIRST-TIME ADOPTION OF IFRS Question 1: What is Fiat’s key accounting policies? Which of Fiat’s key accounting policies are affected by the adoption of IFRS? a. Fiat’s key accounting policies: The Fiat Group has a tendency of engaging in financing accountings mechanism‚ selling a significant part of its finance‚ trade and tax receivables through either securitization programs or factoring transactions b. Fiat’s key accounting policies are affected by the adoption of
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Balance Sheet Analysis The Chrysler Group’s current assets continue to increase at a normal rate from year to year. This is good news for any company‚ but especially for Chrysler since they recently came out of a financial crisis. If you look at the balance sheet for the Chrysler Group‚ after computing the common-size and percentage change analysis‚ you are able to configure that the current assets steadily increase around 15% each year. Also‚ the total assets increase almost to a total of 10%
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Fiat Case Analysis 1. What are the basic attributes of the auto industry in the era of globalization; which dynamic changes in the industry influence companies’ strategies? During the era of globalization‚ the auto industry‚ like many industries‚ saw an increase in marketplace growth. The case throws out a perplexing statistics that one in seven people own an automobile on a global basis‚ equating to roughly 900 million cars and light vehicles. The Exhibit 1 of the case points out that the
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Crisis Management FIAT The Italian automobile company FIAT is synonomous with success‚ with brands such as Ferrari‚ Maseratti‚ Alfa Romeo and the FIAT brand‚ one usually thinks of class and success when the brand is mentioned. By and large the FIAT brand has been suuccesful for over one hundred years‚ the group’s activities were primarily focused on the industrial manufacturing of cars‚ industrial and agricultural machinery. With
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analysis on the Italian Autos Industry shows the following key points about Fiat ("ITALY AUTOS REPORT”‚ 2013): Fiat has an established presence and dominates local production. An increase in Fiat’s alliances with strong foreign carmakers is extending the company’s global reach and should help its finances. The resurgence of new model investment and sales has succeeded in reinvigorating the fortunes of Fiat and its Italian suppliers. Labor agreements reached between Fiat and the workers’ union
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Sandrine CATHALO Elodie DUFOUR Elodie GARBAN Charles RATTANAVAN Joffrey THELLIEZ Fiat and Chrysler create an alliance Toward to an eventual merger… Executive Summary Since 1990‚ we have seen a high wave of mergers. Many companies where merging in order to respond to their environment and there is a reason for this. Indeed‚ in a world of globalization where the key trend is to become bigger and bigger in order to survive‚ it is of the utmost importance to position your strategy and strategic
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Chrysler in Trouble Chrysler Motors‚ LLC was the third largest automobile manufacturer in the United States filed for bankruptcy protection April 30th‚ 2009‚ under section 363 of chapter 11of the United States bankruptcy code. The company included its 24 subsidiary in the filing. In order to remain viable and as a condition of its bankruptcy filing Chrysler announce that it would form an alliance with Fiat spA. Fiat was scheduled to receive a 20% stake in the company which would increase
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Sam O’Brien‚ C10390017‚ DT366 yr2 Report on the WACC for Fiat motors The WACC is the weighted average cost of capital. It is a calculation of the firms cost of capital taking into account the relevant weight of equity and debt as a proportion of the total. The cost of equity or KE calculated using a risk free rate example German 5yr government bond‚ the firm’s beta and the return on the market. The firm’s beta is a calculation of the firms exposure to the market‚ a beta of less than 1 indicates
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