Scope of consolidation

Consolidated entities

The Consolidated financial statements at 31 December 2013 includes Fiat S.p.A. and 303 subsidiaries consolidated on a line-by-line basis in which Fiat S.p.A., directly or indirectly, has a majority of the voting rights, and over which it exercises control or from which it is able to derive benefit by virtue of its power to govern their corporate financial and operating policies.

There were no significant changes in the scope of consolidation in 2013, although the following minor changes occurred:

  • on 1 July 2013, the Group, through its wholly owned subsidiary Fiat Group Automobiles S.p.A., acquired full control of the VM Motori group, which was previously considered a joint venture consolidated by using the equity method. Starting from this date, Fiat Group has consolidated VM Motori group on a line-by-line basis;
  • from November 2013, the investment in the Brazilian company, CMP Componentes e Modulos Plasticos Industria e Comercio Ltda, which was previously classified as held for sale on acquisition, has been consolidated on a line by line basis as a result of changes in the plans for its sale;
  • from December 2013, the assets and liabilities related to a subsidiary consolidated by the Components operating segment (Fonderie du Poitou Fonte S.A.S.) were reclassified as Assets and liabilities held for sale (Note 22).

Certain minor subsidiaries (dealership and captive service companies) generating a negligible volume of activities are excluded from consolidation and accounted for using the equity method. Their proportion of the Group’s assets, liabilities and aggregate revenues are insignificant. Other minor subsidiaries that are dormant, under liquidation or generating a negligible volume of business are excluded from consolidation and accounted for at cost. Their aggregate assets and revenues at 31 December 2013 represent 0.1% of the Group’s respective amounts.

Interests in jointly controlled entities are accounted for using the equity method. Condensed financial information based on the Group’s pro-rata interest in these entities, before eliminations, is as follows:

(€ milllion)At 31 December 2013At 31 December 2012
Non-current assent 1,730 1,984
Current assent 8,759 8,790
TOTAL ASSETS 10,489 10,774
Debt 7,686 7,602
Other liabilities 1,319 1,601

The combined balances of the Group’s share in the principal Income statement items of jointly controlled entities accounted for using the equity method are as follows:

(€ million)

20132012
Net revenues 4,021 4,381
Trading profit/(loss) 213 230
EBIT 213 225
Profit/(loss) before taxes 175 200
Profit/(loss) 136 148

At 31 December 2013 the main aggregate amounts related to the Group’s interests in associates are as follows:

(€ million)At 31 December 2013At 31 December 2012
Total assets 404 294
Liabilities 293 218

(€ million)20132012
Net revenues 225 182
Net profit/(loss) (28) (38)

The main aggregate amounts related to the Group interests in associates measured at cost are as follows:

(€ million)At 31 December 2013At 31 December 2012
Totale assets 30 35
Liabilities 13 16

(€ million)20132012
Net revenues 47 48
Net profit/(loss) 5 4

Acquisitions or disposals

No significant subsidiaries were acquired or disposed of in 2013. Nevertheless, as discussed above on 1 July 2013, through its potential voting rights, the Fiat Group acquired control of the VM Motori group in accordance with IAS 27 - Consolidated and Separate Financial Statements. The company, which was previously consolidated by using the equity method, was consolidated on a line-by-line basis from that date. On the same date, General Motors, holding the 50% remaining interest in VM Motori, notified Fiat of the exercise of its put option to sell its  interest, subject to the approval of the relevant anti-trust authorities. The transaction closed on 28 October 2013 with the payment of a purchase consideration of €34.1 million. Other option rights existing at that date expired unexercised. At 31 December 2013, the purchase price allocation was completed with the recognition of goodwill for €15 million. Amounts of fair valued assets and liabilities acquired are disclosed as Change in the scope of consolidation, where significant in the relevant Notes.

No significant subsidiaries were acquired or disposed of in 2012. Nevertheless, in January 2012, as a result of the occurrence of the  third performance event (“Ecological Event”) established in Chrysler’s LLC Operating Agreement, the Group acquired a further 5% interests in Chrysler with no monetary consideration. At 31 December 2012, Fiat had therefore a 58.5% ownership interest in Chrysler.