31. Related party transactions

Pursuant to IAS 24, the related parties of the Group are entities and individuals capable of exercising control, joint control or significant influence over Fiat Group and its subsidiaries, companies belonging to the Exor group, (including the CNH Industrial group) and unconsolidated subsidiaries, associates or joint ventures of the Fiat Group. In addition, members of Fiat Group Board of Directors, Board of Statutory Auditors and executives with strategic responsibilities and their families are also considered related parties.

The Group carries out transactions with unconsolidated subsidiaries, jointly-controlled entities, associates and other related parties, on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved. Transactions carried out by the Group with unconsolidated subsidiaries, jointly-controlled entities, associates and other related parties are primarily of those a commercial nature, which have had an effect on revenues, cost of sales, and trade receivables and payables; in particular, these transactions relate to:

  • the sale of motor vehicles to the jointly-controlled entities Tofas-Turk Otomobil Fabrikasi A.S. and FGA Capital group;
  • the sale of engines, other components and production systems to the jointly-controlled entity Società Europea Veicoli Leggeri-Sevel S.p.A. and companies of the CNH Industrial group and, for 2012, to the jointly-controlled entity Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme;
  • the provision of services, recharges of research costs and the sale of goods to the jointly-controlled entities Fiat India Automobiles Limited and GAC FIAT Automobiles Co Ltd;
  • the purchase of commercial vehicles from the jointly-controlled entities Società Europea Veicoli Leggeri-Sevel S.p.A., Tofas-Turk Otomobil Fabrikasi A.S and, for 2012, Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme;
  • the purchase of engines from the VM Motori group in 2012 and in the first half of 2013;
  • the purchase of commercial vehicles from the CNH Industrial group.

The most significant financial transactions with related parties generated Receivables from financing activities of the Group’s financial services companies due from jointly-controlled entities and Asset-backed financing relating to amounts due to FGA Capital for the sale of receivables which do not qualify for derecognition under IAS 39. At 31 December 2013 and at 31 December 2012, Receivables from financing activities due from related parties also included receivables due from CNH Industrial group companies mainly arising from customer factoring provided by the Group’s financial services companies. On the other hand, Debt due to related parties included certain balances due to CNH Industrial group companies, mainly relating to factoring and dealer financing in Latin America.

In accordance with IAS 24, transactions with related parties also include compensation payable to Directors, Statutory Auditors and managers with strategic responsibilities.

The amounts of the transactions with related party recognized in the Income statement are as follows:

   2013  2012
(€ million)Net Revenues Cost of salesSelling,
general and
administrative
costs
Financial
income/
(expenses)
Net Revenues Cost of salesSelling,
general and
administrative
costs
Financia
income/
(expenses)
                 
Tofas-Turk Otomobil Fabrikasi A.S. 1,145 1,287 3 - 1,115 1,227 4 -
Società Europea Veicoli Leggeri-Sevel S.p.A.  475 1,557 6 - 470 1,526 - -
FGA Capital group 223 62 10 (24) 200 82 12 (28)
Fiat India Automobiles Limited 27 1 4 1 38 - 1 -
GAC FIAT Automobiles Co Ltd 137 - 1 - 147 - - -
Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme (*) - - - - 24 218 - -
VM Motori group  - 121 - - - 215 - -
Other 8 6 - - 8 4 - -
Total jointly-controlled entities 2,015 3,034 24 (23) 2,002 3,272 17 (28)
                 
To-dis S.r.l. 48 4 - - 48 2 - -
Arab American Vehicles Company S.A.E. 15 - - - 24 - - -
Other 7 - 5 - 6 1 7 -
Total associates  70 4 5 - 78 3 7 -
                 
CNH Industrial group 703 314 - - 676 264 1 -
Poltrona Frau group - 22 1 - - 18 - -
Directors, Statutory Auditors and Key Management - - 49 - - - 57 -
Other - 2 12 - 1 18 7 -
Total other related parties and CNH
Industrial group
703 338 62 - 677 300 65 -
                 
Total unconsolidated subsidiaries 44 15 28 1 36 99 27 3
                 
Total of which related parties 2,832 3,391 119 (22) 2,793 3,674 116 (25)
Total 86,816 74,570 6,689 (1,964) 83,957 71,701 6,763 (1,885)
Effect on Total (%) 3.3% 4.5% 1.8%   3.3% 5.1% 1.7%  

(*)  At 31 December 2012, the Investment was classified as Asset held for sale, then transferred at the beginning of the 2013.

Non-financial assets and liabilities originated by related party transactions are as follows:

 At 31 December 2013At 31 December  2012
(€ million)Trade
receivables
Trade
payables
Other
current
assets
Other
current
liabilities
Trade
receivables
Trade
payables
Othe
current
assets
Other
current
liabilities
                 
Tofas-Turk Otomobil Fabrikasi A.S. 50 232 - - 32 257 - 2
Società Europea Veicoli Leggeri-Sevel S.p.A.  21 406 4 9 23 396 3 5
FGA Capital group 49 165 1 93 64 147 12 85
Fiat India Automobiles Limited 10 10 - - 96 5 2 -
GAC FIAT Automobiles Co Ltd 35 3 - 5 23 4 - -
Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme (*) - - - - 1 55 - -
VM Motori group  - - - - - 20 - -
Other 5 13 1 - 7 17 1 -
Total jointly-controlled entities 170 829 6 107 246 901 18 92
                 
Arab American Vehicles Company S.A.E. 9 3 - - 11 3 - -
Other 13 3 - 25 29 4 - 27
Total associates 22 6 - 25 40 7 - 27
                 
CNH Industrial group 48 20 24 13 74 30 27 45
Poltrona Frau group - 6 - - - 5 - -
Directors, Statutory Auditors and Key Management - - - 17 - - - 14
Other - 1 - 1 - 11 - -
Total other related parties and CNH
Industrial group
48 27 24 31 74 46 27 59
                 
Total unconsolidated subsidiaries 39 11 4 1 24 15 4 1
                 
Total of which related parties 279 873 34 164 384 969 49 179
Total 2,406 17,235 2,302 8,943 2,702 16,558 2,163 7,781
Effect on Total (%) 11.6% 5.1% 1.5% 1.8% 14.2% 5.9% 2.3% 2.3%

(*)  At 31 December 2012, the Investment was classified as Asset held for sale, then transferred at the beginning of the 2013.

Financial assets and liabilities originated by related party transactions are as follows:

At 31 December 2013At 31 December 2012
(€ million)Current
Receivables
from financing activities
Asset-backed financingOther debtCurrent
Receivables
from financing activities
Asset-backed financingOther debt
FGA Capital group 54 85 270 88 56 96
Società Europea Veicoli Leggeri-Sevel S.p.A. 28 - 20 24 - 4
Other 18 - - 5 - -
Total jointly-controlled entities 100 85 290 117 56 100
             
Global Engine Alliance LLC - - - - - 4
Other 7 - - - - -
Total associates 7 - - - - 4
             
Total CNH Industrial group 18 - 53 18 5 87
             
Total unconsolidated
subsidiaries
38 - 20 66 - 20
             
Total of which related parties 163 85 363 201 61 211
Total 3,671 596 29,306 3,727 449 27,44
Effect on Total (%) 4.4% 14.3% 1.2% 5.4% 13.6% 0.8%

Guarantees pledged in favor of related parties

Other guarantees pledged in favor of related parties are as follows:

(€ million)At 31 December 2013At 31 December  2012
Total jointly-controlled entities 7 5
Total other related parties and CNH Industrial group - 7
Total unconsolidated subsidiaries 8 13
Total of which related parties 15 25

Emoluments to Directors, Statutory Auditors and Key Management

The fees of the Director and Statutory Auditors of Fiat S.p.A. for carrying out their respective functions, including those in other consolidated companies, are as follows:

(in € thousands)20132012
Directors (a) 18,912 22,78
Statutory auditors 230 229
Total Emoluments 19,142 23,009

(a) This amount includes the notional compensation cost arising from stock grants granted to the Chief Executive Officer.

The aggregate compensation payable to executives with strategic responsibilities was approximately €30 million for 2013. This is inclusive of an amount of €3 million as the Fiat Group’s contribution to State and employer defined contribution pension funds.