Fiat S.p.A. – Annual General Meeting

Address from Fiat CEO

Sergio Marchionne

Centro Congressi Lingotto

4 April 2012

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Good morning Shareholders. 2011 marked the beginning of a new course, a new life for our Group. For the first year, we are now able to view the financial results of the Fiat-Chrysler alliance, in addition to the industrial and commercial results. And, although Chrysler was only consolidated for seven months, as we will see shortly the contribution was significant. However, before looking at the full-year results in detail, I would first like to give you an overview of how the integration is progressing and the benefits that it has brought us so far.

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This slide shows how Fiat has increased its ownership interest in Chrysler over time. During 2011, we achieved two of the three Performance Events established in the original agreement and, for each of those, we received an incremental 5% interest in Chrysler, at no consideration: the first following production launch of a FIRE engine in the United States and the second after reaching the pre-established sales targets for Chrysler vehicles in non-NAFTA markets. In May, following repayment in full of loans from the U.S. and Canadian governments, Fiat exercised its option to acquire a further 16% interest. In July, we then purchased the interests held by the U.S. Treasury and Canada. In January of this year, we achieved the Ecological Event, the third Performance Event linked to U.S. production of a vehicle based on a Fiat platform with fuel efficiency of 40 mpg or better. As a result, our interest in Chrysler has grown to the current 58.5% for a total outlay of around USD 1.9 billion, significantly below its true value.

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In addition, we have options to purchase the remaining interest in Chrysler held by the employee medical benefits fund. These steps represent more than just a financial transition. They are fundamental to the Fiat-Chrysler integration and the creation of a global automaker.

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Looking at revenue and trading profit broken down by operating region, we get a better idea of how the new Group’s activities are spread globally. This slide shows the pro-forma, full-year contribution from Chrysler for 2011. The graph on the left shows that NAFTA markets now contribute nearly half of Fiat-Chrysler’s total revenues. Looking at trading profit by operating region, you can see that the largest contribution comes from NAFTA markets, with a significant share of results also attributable to our activities in Latin America. The smallest contribution comes from the EMEA Automobiles activities, for which the result for 2011 was substantially breakeven, and consisted of:

- approximately €400 million in trading profit for luxury and performance brands, and

- a nearly €0.5 billion loss for mass-market brands in Europe. I’ll come back to this shortly to explain what we are doing to resolve the situation on our own

In any event, we have improved our geographic mix and this has enabled us finally to remedy Fiat’s over-dependence on the European market and we are more solid as a result.

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This geographic diversification gives us the ability to more effectively manage market volatility, as well as the confidence that those areas of the group that are stronger during any particular phase in the business cycle will be able to provide support to those which may be less robust. Fiat-Chrysler sold a combined total of more than 4 million vehicles in 2011, making it the 7th largest automaker globally. Today, we are far from being a marginal player. We have become one of the strongest and most competitive automakers globally with some of the most innovative and advanced technologies in the world.

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The integration process is moving ahead rapidly. In July, we established a new management structure with leaders from both organizations to reflect the cultural and geographic diversity of our businesses. We made significant progress in converging architectures and components, integrating purchasing activities, sharing best practice in manufacturing processes, and optimizing utilization of our combined production capacity. Synergies from joint development of architectures, as well as shared purchasing activities and implementation of World Class Manufacturing standards, are beginning to generate significant benefits. Over the past two years, we have achieved €1.4 billion in synergies, of which close to €1 billion was in 2011 alone. The process is not yet complete, but we have increased the intensity and expect integration activities to be 50% complete by the end of this year.

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This next slide shows the level of capacity utilization in each of our operating regions. On the left are the figures for the industry as a whole and on the right Fiat-Chrysler performance for 2011. As a result of the major restructuring process initiated in 2009, in North America overcapacity is no longer an issue. Based on the Harbour definition, capacity utilization is at 90% for the industry and 92% for Chrysler activities in the U.S., Canada and Mexico. In Latin America, we are at full capacity, with plants in Brazil and Argentina operating at around 114% compared to an industry average of 82%. In Europe, however, our Italian passenger car plants are operating well below capacity at around 50%, based on the Harbour definition, which is significantly below the European industry average of 82% and the average for Fiat’s European plants outside Italy of 118%. Based on the Technical definition, we achieved just 33% capacity utilization at our Italian plants, compared to an average of 74% for our other European plants.

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Over the past two years, this structural imbalance has been a key area of focus for us. We have sought to implement changes that would give us the greatest operating flexibility possible at our plants and ensure their long-term viability.

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This next slide outlines what we have accomplished so far. As we announced more than 3 years ago, allowing ample time for the conversion process, we terminated our car manufacturing activities at the Termini Imerese plant at the end of 2011. We also made the decision to withdraw from Confindustria to ensure the necessary contractual flexibility to negotiate directly with unions and work together with them to establish conditions that would enable us to make the Italian auto industry competitive once again. At the end of 2011, a new company-specific collective labor agreement was signed for all Fiat and Fiat Industrial employees in Italy, which provides significant benefits for everyone. For the Group, it represents a modern instrument that provides the flexibility and governability of plants necessary to compete in the global marketplace. For employees, it preserves all existing rights and offers clear economic advantages associated with increased productivity and greater flexibility in the use of overtime.

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We are at the beginning of a new era and we are working diligently to take full advantage of the opportunities presented by the Chrysler alliance and ensure Fiat’s European businesses make their contribution to the global organization. Our target is to eliminate the structural inefficiencies in our manufacturing activities in Italy and return our mass-market brands to break-even in Europe by the end of 2014.

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The first plant to reap the full benefits of the new contract is Pomigliano. As you know, we chose to bring production of the new Panda to Italy as part of our overall commitment to making the manufacturing base in this country more solid. After upgrades to both facilities and production processes, Pomigliano is now best-in-class for Fiat-Chrysler and has achieved the highest WCM quality standards. The Pomigliano plant is an example that it is not only possible to change things, but that it is also our responsibility to change them if we want a better future, if we want to progress.

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Returning to Fiat Group’s 2011 results, it was in many respects an exceptional year. Despite difficult trading conditions in Europe, we achieved or exceeded all targets. Revenues reached nearly €60 billion, with Chrysler contributing approximately €24 billion in the 7 months following consolidation. Excluding Chrysler, Fiat’s revenues topped €37 billion, representing a 4% increase over the prior year. Trading profit came in at €2.4 billion – more than half attributable to Chrysler – and group trading margin improved to 4%. Net profit of €1.7 billion included around €1 billion in net unusual income related to fair value measurement of the interest in Chrysler less unusual charges. Excluding unusual items, net profit was €0.8 billion. The net result excluding Chrysler would have been break-even. Net industrial debt totaled €5.5 billion at year-end, compared to €0.5 billion at year-end 2010. The increase primarily reflects Chrysler’s net indebtedness at initial consolidation and the purchase of the U.S. Treasury and Canada stakes in Chrysler. Excluding Chrysler, Fiat closed the year with net debt of €2.4 billion.

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Excluding the consideration paid for the additional interests in Chrysler and other non-cash items, that figure was around €0.7 billion, well below our original guidance. Total available liquidity at year-end of €20.7 billion included €3.0 billion in undrawn committed credit lines. Fiat excluding Chrysler had available liquidity of €12.3 billion, in line with year-end 2010.

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Throughout the year, we continued to rigorously manage costs and maintain production levels aligned with market demand. Savings from World Class Manufacturing totaled €480 million for Fiat and Chrysler combined, representing around 7% of total manufacturing costs. There were also significant efficiency gains on the purchasing front with savings for 2011 in excess of 2% of total purchased volumes of around €43 billion. In addition, we successfully refinanced bank and capital market maturities, issuing €2.5 billion in new bonds and closing a €1.95 billion 3-year syndicated revolving credit facility. In October, the Board of Directors announced that it would propose the conversion of Fiat’s preference and savings shares into ordinary shares for the purpose of simplifying the Company’s capital and governance structure, in line with international best practice. Given Fiat’s intention to maintain a high level of liquidity and the fact that Chrysler is subject to certain restrictions on payment of dividends to its members, the Board of Directors has decided to recommend a dividend of €39.7 million for preference and savings shares only.

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This slide provides a breakdown of revenues and trading profit by business. For FGA, revenues were substantially in line with 2010 with a more favorable product mix offsetting the decline in volumes. Trading profit was affected by a decline in passenger car volumes in Europe, higher advertising costs related to new model launches and higher R&D expenditure for future products. Those impacts were partly offset by purchasing and WCM efficiencies. Chrysler, which was fully consolidated for the period June to December, made a significant contribution to trading profit on the back of continued strong performance for new vehicles in terms of volume, mix and price. Luxury & Performance brands, together with Components, registered strong performance for both revenues and trading profit.

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During the year, trading conditions in our principal markets were uneven. In the United States, market demand was up 11% for the year and, in 2012, we expect demand to increase to 13.8 million vehicles, in line with projections included in the Chrysler business plan. In Canada, the market registered growth of 2% and we expect that level of demand to continue for the current year. In Europe, the trend varied across markets with an overall decline of 1.4% for the year that was particularly pronounced in the fourth quarter. The growth experienced in Germany was not sufficient to counter negative performance in France, Spain and Italy, which recorded its lowest volumes since 1996. By contrast, the LCV market in Europe continued its recovery with volumes up nearly 8% for the year driven by gains in all major markets with the exception of Italy. There were double-digit increases in France, Germany and the minor markets. The outlook in Europe for 2012 is not encouraging. We expect that difficult trading conditions will continue and that passenger car demand will decline, for the fifth consecutive year, from 13.6 million in 2011 to around 13 million.

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A contraction is also expected for LCVs. In fact, we are estimating a decline of 3-5% for Europe overall, with an even more severe decline in Italy of around 10%. In Latin America, Brazil set a new annual record, with volumes up 2.9% for the year to 3.4 million vehicles. Argentina also recorded strong growth with an approximate 29% increase in volumes. For 2012, we expect economic growth will continue to drive an increase in passenger car demand.

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In North America, Chrysler outperformed the market with double-digit volume increases and solid share gains. In the U.S., it closed 2011 with a 10.5% share, compared to 9.2% for 2010. December marked 21 consecutive months of growth driven by a total of 16 new model launches. In Canada, Chrysler’s market share was up 1.3 percentage points over the prior year to 14.3%.

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This next slide shows some of Chrysler’s best-performing products in the U.S. and Canada, where sales volumes were up 26% and 13% respectively. The major contributors included:

the new Chrysler 200 the new Dodge Durango several Jeep models including the Grand Cherokee, Compass,

Patriot and Wrangler and the full range of Ram pickups

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The Dodge Dart, which we presented at the Detroit Motor Show in January and will be launching in North America in May, is another important addition to the product line-up. It is a highly competitive model in the key compact segment, which accounts for some 14% of the total market in the U.S. and 21% in Canada. It is also a symbolic model being the first Chrysler Group vehicle based on a Fiat Group platform (originally developed for the Alfa Romeo Giulietta), which has been adapted for the North American market.

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Switching now to Europe, FGA’s 2011 market share came in at 6.9%. The decline over the prior year was primarily attributable to the reduced weight of the Italian market, which – as you see in the top right of the slide – accounted for 14.2% in 2010 but dropped to only 12.9% in 2011. The second factor influencing FGA’s European market share was the shift in demand toward the larger car segments. The relative weighting of the A and B segments decreased 3.5 percentage points, resulting in a 0.6 percentage point decline in FGA’s overall market share. In Italy, the year-on-year comparison was most heavily influenced by the fact that first quarter 2010 continued to benefit from the effects of eco-incentives. In fact, FGA’s share declined to 29.4% for the full year, despite significant gains in its three principal market segments, largely reflecting the 2.3 percentage point loss experienced in the first quarter.

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By brand, Fiat was the most affected by the shift in market demand to larger vehicles. It retained leadership in its main segments, however, with the Panda and 500 holding the top 2 positions in the A segment and the Punto among the top 5 in the B segment. The new Freemont, launched in June, was well received by customers in the growing SUV cross-over segment, which in Europe was up around 21% for the year. For Alfa Romeo, sales were up almost 19%, driven by the Giulietta, which registered the brand’s best-ever performance in the C segment. Lancia’s full-year market share was in line with 2010. During the year, the brand achieved sequential quarter-over-quarter improvements driven by the performance of the new Ypsilon, which was launched in June. Jeep was the best performing brand for the year, with sales up nearly 62% on the back of a rejuvenated product line-up and stronger distribution through the FGA network. In terms of relative market performance, Jeep’s share was nearly double the 2010 level.

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Fiat Professional registered a 5.6% increase in sales in Europe for the year with volume gains in all key markets except Italy and Spain, where there were significant contractions in market demand in the 4th quarter. Market share was in line with 2010 at 12.5%. Commercial performance was primarily driven by the new Ducato, which achieved an all-time record share in its segment.

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For Latin America, Fiat and Chrysler increased their combined share to 16.8% and Chrysler registered a 33% increase in sales over the prior year. In Brazil, Fiat retained market leadership – a position that it has held for nearly an entire decade – with a share of 22.2% for the year. We gained territory in all key segments:

- 1 percentage point in the A and B segments on the back of strong performances by the new Uno and 500

- over 3 percentage points in the C2 segment with the Bravo - nearly 3 percentage points in the SUV segment with just 4

months of sales of the new Freemont Fiat has won the “Carro do Ano” two years in a row, with the new Uno taking the prize in 2011 followed by the new Palio in 2012. The Palio received 5 additional awards including “Best Compact of the Year 2012”. Chrysler also recorded several milestones, especially for the Jeep brand, which doubled sales of the Cherokee and more than tripled sales of the Grand Cherokee.

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In Argentina, our share was up 0.4 percentage points to 11.6% with Chrysler brands reporting their best year ever in that market. In addition to strong momentum in the smaller segments, we also took the top spot for the pick-up segment for the first time.

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These results reflect the work done to expand and refresh the product range across the board. Here is a snapshot of our principal product launches in 2011. In total, there were 16 new models and 11 refreshes. In Europe, Lancia/Chrysler launched the new Ypsilon and also expanded the range with introduction of the Thema and Voyager in the final quarter. In the NAFTA region, we introduced the 500 Cabrio and four new models under Chrysler Group’s high performance SRT brand. In Brazil, in addition to the Palio, the newly-introduced 500 and Freemont also performed well. With the 500 now produced in Mexico, like the Freemont, we were able to be more price competitive than for the previous model imported from Europe. In China, we introduced the Grand Cherokee and the 500.

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An equally intensive program of new product launches is planned for 2012. In total, there will be 19 new models and 9 refreshes. In Europe, the major new models are the Panda – which was launched in January – and the Lancia Flavia Convertible and Fiat 500 Large, which were presented at the Geneva Motor Show. In North America, the launch of the 500 Abarth will be followed by the Dart and the new Viper – which is actually being presented today at the New York International Auto Show – and a fully-electric version of the 500. In Latin America, we will undertake a major renewal of the product range with 5 new models and refreshes of 7 existing models. In Asia, we will introduce 6 new models, including the Alfa Romeo Giulietta and a new C segment sedan, the first to be produced in partnership with GAC.

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Full-year shipments for Fiat and Chrysler combined, exclusive of JVs, totaled 4 million vehicles. For 2012, our target is to increase that figure to between 4.1 and 4.4 million units, with the projected volume by geographic area as shown on the right of the slide. The variability in the range is primarily attributable to the level of uncertainty concerning the economic environment in Europe. In North America, we expect both the market and our relative share to increase. In Latin America, shipments should reach around 1 million units driven primarily by growth in Brazil.

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Turning to Luxury and Performance brands, Ferrari recorded a 17.3% increase in revenues over the prior year to €2.3 billion achieving record sales on the back of performance of 12-cylinder models and the FF, in particular. North America, Ferrari’s no. 1 market, accounted for more than 27% of shipments. Trading profit totaled €312 million for the year and trading margin improved to 14%, driven by higher volumes and a more favorable product mix, which were partially offset by an increase in R&D expenditure.

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It was also an optimum year for Maserati with volumes up 8.5% and revenues coming in at just under €600 million. In North America, the brand’s no. 1 market, volumes were up 20% and China became the second largest market for the first time with volumes nearly doubling over 2010 levels. Trading profit was nearly double the prior year level at €40 million. The increase was attributable to an improved mix and continued optimization of operating costs.

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Magneti Marelli benefited from strong performance in Germany, Brazil and China, in addition to a sustained recovery in North America. Growth in demand in the LCV segment also made a positive contribution. Revenues were up 8.5% to almost €6 billion and trading profit was nearly double at €181 million, benefiting from increased sales volumes and manufacturing efficiencies which more than offset cost pressures from higher materials prices.

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For Fiat Powertrain, revenues were up 6% to €4.4 billion with higher volumes in Latin America more than offsetting declines in Europe. Engine volumes were in line with the prior year, while an increase was recorded for transmissions. Trading profit came in at €131 million. The decrease over the prior year was attributable to increased raw material costs and higher R&D associated with new products, which were only partially offset by overhead and manufacturing efficiencies. The acquisition of a 50% interest in VM Motori during the year also enabled us to expand the Fiat-Chrysler engine portfolio with two new state-of-the-art diesel engines. In addition, we expanded our long-standing relationship with Suzuki through two new supply agreements: one for the 1.6 MultiJet II engine beginning January 2013 and the other, a 3-year agreement to supply 100,000 1.3 MultiJet engines per annum to Maruti Suzuki India beginning in January of this year.

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Efforts to align our activities to the highest sustainability standards were once again recognized internationally. For the third consecutive year, Fiat S.p.A. was included in the Dow Jones Sustainability World and Europe Indexes that only admit companies that are best-in-class in terms of sustainability performance. Our commitment to reducing the environmental impact of our production processes also brought recognition from the Carbon Disclosure Project, which placed us among the leaders in combating climate change. In addition, on the basis research conducted by VIGEO, which assesses companies based on their social, environmental and governance performance, Fiat became a member of the ASPI Eurozone® Index. We value such recognition because it provides testimony to the sense of duty and values that are integral to our business culture.

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With regard to the outlook for the current year, we remain fully committed to the strategic direction laid out in the 5-year plans outlined in November 2009 for Chrysler and April 2010 for Fiat. Having reviewed economic and trading conditions in the four operating regions that encompass the activities of Fiat and Chrysler, we confirm expectations for performance in North America, Latin America and Asia-Pacific. With regard to Europe, weakened economic conditions have cast doubt on volume assumptions for the overall market and, consequently, on our development plans up to 2014. As a result, the Group has provided guidance for 2012 in terms of ranges, from continuing depressed trading conditions in Europe to a gradual stabilization and recovery at the very end of 2012. We expect to close the year as follows:

Revenues in excess of €77 billion Trading profit between €3.8 and €4.5 billion Net profit between €1.2 and €1.5 billion Net industrial debt between €5.5 and €6.0 billion

The Group expects to fully articulate the effect of economic conditions in the eurozone on its plan up to 2014 in conjunction with the release of its Q3 2012 earnings results.

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I would like to conclude with a few general remarks on Fiat and its industrial mission.

The first thing that I would like to make clear is that when we speak of Fiat today, we are speaking of an organization that has changed radically in recent years, even if we only look back as recently as 2004. That Fiat doesn’t exist any more. In Italy, unfortunately, perceptions have remained stuck in the past and many still haven’t realized what an epic transformation has taken place, both outside and inside our organization, from the globalization of the economy to the type of organization Fiat has become.

To understand how profound that transformation has been, we only have to look at the Group’s profile in 2004 – the automobile activities in particular – and then again in 2011.

This snapshot shows a business that was almost entirely concentrated in Europe.

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It had total revenues of €27 billion, of which more than 90% was generated in Europe. It employed just over 100,000 people, of which more than 70% in Europe and more than half in Italy. The business was heavily loss-making. In fact, it recorded an operating loss, including unusuals, of around €1.3 billion, with all of the losses coming from Europe and the Latin American business essentially breaking even. The same snapshot in 2011 shows a globally-diversified Fiat. Annual revenues, including the pro-forma full-year contribution from Chrysler, have increased to nearly €75 billion. There are more than 197,000 employees worldwide, of which around 44% are in Europe, a third in the NAFTA region and nearly a quarter in Latin America. Today, Fiat’s global operating activities are capable of generating significant profit despite losses associated with the mass-market brands in Europe. Losses that have, however, been more than halved since 2004 and which are being more than offset by the solid profits generated in Latin America and North America. Today, Fiat is a highly-profitable global enterprise. We are all very aware of current market conditions in Europe.

Clearly, the crisis pre-dates the current problems linked to sovereign debt. And 2012 is expected to close with passenger car demand in decline for the fifth consecutive year.

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In Italy, volumes have dropped to their lowest level in decades and the month just closed was the worst March we have experienced since 1980. Conditions are not expected to improve in the immediate future. Remaining with the old business model, with our activities heavily concentrated in a market that is now in crisis, wouldn’t have gotten us very far. That’s why toward the end of 2008 we had already made a clear choice to reduce our dependence on Europe and increase our focus in North and Latin America.

It was the only way to ensure a future for Fiat. In fact, the March sales figures released yesterday for the U.S. and Canada show performance has been excellent. In the U.S., Chrysler sales were up 34%, representing the 24th consecutive month of growth, and retail sales were up 43%, the best March since 2007. In Canada, we recorded the best March sales in twelve years and we remained market leader for the quarter.

By contrast, those automakers who have remained exclusively focused on Europe are counting their losses and in need of assets sales, new capital and government assistance.

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However, because of the choices we made, we are now stronger and more independent. We are able to leverage on a solid global presence and we can look to the future with a greater sense of security.

As a result, we are in a position to confirm our 2012 targets. It no longer makes sense to talk of Fiat as an Italian or European group. Fiat has become a multinational. I was pleased when, in his recent remarks, even Prime Minister Monti acknowledged this change. Let me just read you his exact words, because they go right to the heart of the issue. “Those who manage Fiat have the right and the duty to choose the best place to invest. They have no obligation to limit themselves to Italy. Three things are important for an enterprise such as Fiat: productivity, flexibility and third, or perhaps first, respect. The nation can demand a lot, but it must also respect their choices and it is unthinkable that in one nation, and one alone, an enterprise should, because of its historic roots, be subjected to constant investigative scrutiny.”

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Those of you who were at the AGM in 2010 will remember that I too spoke of respect and of a relationship that has to go in both directions. Fiat, particularly in the recent past, has always sought to treat this nation with profound respect. It is a sentiment due, first and foremost, to those institutions that represent the foundations of our society. Our respect is demonstrated by the fact that we recognize Italy’s absolute freedom to choose for itself what is best, without us making demands or conditioning anyone. I believe Fiat deserves the same treatment. It should be afforded the freedom to act as a global organization. Every business everywhere in the world has the right and even the duty to make rational industrial choices. It has the right and the duty to make independent choices, focusing first and foremost on growing and becoming more competitive. Fiat has chosen to exercise this freedom in a responsible manner and will continue to do so as long as it doesn’t compromise its own future. That doesn’t mean Italy or Europe have lost importance for us or that we have reduced the intensity of our efforts here. However, they are no longer our only focus. Today, we have to consider them one component of a much larger industrial concern, one part of a global strategy.

As such, expecting that Fiat’s choices take only Italy and Italian issues into account would be narrow-minded and dangerous.

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Narrow-minded because it is void of consideration for the more than two-thirds of Fiat employees outside Italy. Dangerous because it would condemn us to isolation and then extinction. The nature of today’s economic landscape – no longer limited by borders and forcing us to adopt a global perspective – doesn’t leave us much choice. Seeking revenue opportunities elsewhere – and increasingly further afield – has become an imperative. Continuing to rely on domestic consumption to revive an ailing economy would be pure folly.

Reliance on a model that assumes consumption will consistently outpace production is simply unsustainable. The search for new markets – especially for players like European automakers, crippled by years of chronic overcapacity – is an imperative for survival.

The alliance with Chrysler offers us a unique, probably unrepeatable opportunity to find our own solution to this problem.

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In fact, it will enable us, at least partially, to begin utilizing our excess capacity. To do this, we have to seize the opportunity to upgrade our manufacturing activities in Italy to a standard necessary to compete internationally and to produce for more demanding markets, such as the United States. As a result of the tie-up between Fiat and Chrysler, Italy has the opportunity to play a role in our global activities and benefit from exporting to markets outside Europe. However, we can’t decide for Italy whether or not it wants to be a part of this project. As I have said on other occasions, the nation must decide for itself. The tools are in place and we are a willing partner. Now it is up to Italy, and certain social forces above all, to decide whether to take advantage of the opportunity. We have sought to create all of the conditions necessary to achieve this and we have adequate consensus from the unions and the vast majority of workers behind us. But there are still those who, for reasons we don’t understand, are doing everything possible to block the project. If those external forces do succeed, we will have no other choice but to accept it. And at that point, we won’t be the ones responsible for the outcome.

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I would like to read to you the words of the editor-in-chief of Il Tempo, Mario Sechi. I don’t know him personally, but I have come to appreciate his objectivity from hearing him talk several times on TV. In his editorial yesterday, he gave a very brief but very effective description of what we face.

“[…] Fiat became global the moment it landed in America. It can close shop in Italy and set up shop again in another country.

Fiat is a reflection of the Italian and European crisis, it is the mad kamikaze dive of a system that doesn’t want to change.

Fiat is the suffering face of the inability to delocalize production.

The other side of that face is growing unemployment.

It is irresponsible to use the events of the automobile crisis to obstruct change that is needed now more than ever.

We are playing with people's lives here and I have read scores of statements from the left, the right and the center that are the obvious fruit of a collective delusion in the halls of power: that everything will go back to the way it was before.

They don’t understand: nothing will be like it was before.”

I couldn’t agree more with Sechi. Our nation has to decide whether to begin the profound change necessary to create a more efficient, competitive industrial base or to cling to the past and continue to live there. Italy can be an important part of the mosaic we are building.

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A mosaic where every piece understands the contribution it can make to the whole and recognizes the value of the contribution of the other pieces. My hope is that the desire to grasp this opportunity for Italy is stronger than any political or ideological motivation.

* * * The other area I wanted to touch on is the moral responsibility that enterprises, particularly multinationals, have toward those countries in which they operate.

Making cars and managing an industry as complex as ours is more than just a question of financial planning and operational efficiency. For any advanced economy, the auto sector is one of the most important contributors to GDP and employment and, therefore, also to the quality of life and well-being of society as a whole. That means we have an obligation to act responsibly, and ethically, in the choices we make. For our part, we have always sought to remember the responsibilities associated with our activities and the duty we have to contribute to the development of those countries where we are present.

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Fiat is a global enterprise that thinks globally, but in each region and community acts as though it were a local business. It is not simply a matter of adapting our products to the specific demands of each market. For us, “being local” is more than anything a way of living and growing with the culture or community where we are present, sharing the challenges and successes, feeling part of its history and, even more, of its future. It is a commitment to the people that work with us, in every part of the world, and to the communities where Fiat has established and developed an industrial presence. This is true in Italy, Brazil and North America, just as it is in China, Russia and India. The need to achieve the best international standard of competition, wherever we operate, is not up for discussion. But that requirement is also accompanied by a responsibility toward each local community. It is an approach based on respect for each culture, willingness to integrate with the local community, playing an active role in generating jobs and contributing to its progress and well-being.

* * * I would like to show you three video clips, in three different languages, that express better than words what Fiat is today and the values to which it is committed.

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The first clip, which aired last year in Brazil, celebrates the 35th anniversary of Fiat Automoveis.

I believe it reflects how Fiat has grown in Brazil and why we have had the success that everybody recognizes. The example in Brazil is the most significant because it provides a model for our other development initiatives around the globe. Initiatives founded on respect and openness, humility and patience, where there is no room for nationalism. The Fiat story in Brazil is an excellent example of integration. It is the story of individuals that extended trust to others and earned their respect and trust in return. It is a story of two cultures that met and got to know each other over time, that chose to join forces and share know-how, transforming their differences into strengths and embarking on a journey together.

[VIDEO: “Fiat 35 years: Que te move?” – 45’’ subtitles in Italian]

* * * The second clip aired in the U.S. during the halftime break at this year’s NFL Super Bowl.

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“It’s Halftime in America” was the message of hope that we wanted to give a nation emerging from a very trying period, but with both the ability and will to succeed. Those who have lived through difficulty, who have seen dark days of desperation, know that there is only one way to come out of them. Returning to the values that are important in life; rediscovering a sense of belonging to a project, a community, a nation; embracing hope; taking your destiny into your own hands. If Chrysler – which had essentially been written off by the financial world, the media and the public – was able to do it, then there is hope for everyone.

[VIDEO “Halftime in America” – 120” subtitles in Italian] That is the spirit Chrysler is working with in the United States. The moral obligation didn’t end when the loans from the U.S. and Canadian governments were repaid last May – with interest and 6 years ahead of time.

Those loans not only gave Chrysler a second chance to demonstrate its full potential, but they also represented an act of faith in our alliance, in the ability of Fiat and Chrysler to create something better and lasting.

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We remain mindful of that trust and work every day to honor the commitment taken in 2009 toward Chrysler, the U.S. auto industry and the nation.

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The same holds true for Fiat in Italy.

That is why proactively and independently – without asking for aid or other forms of support – we set about eliminating the inefficiencies in our manufacturing activities in Italy. That is why we made the decision to shift production of the new Panda to Pomigliano.

That decision was not based on purely operational or financial considerations, but on an understanding of the importance of the auto industry to a nation’s economy and with the same sense of responsibility that underpins all of our decisions. Also here, we should remember the words of Prime Minister Monti, when he said:

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“Fiat has made this country great and this country has made it great.

Fiat will be an important part of our future, if it remembers the talent, commitment and sweat Italians have put into making it great…

…and if Italians, as proud as they may be of their past, understand that in the future, in an open and competitive world, they can have the right to an enterprise that’s their own, where everyone works to ensure we are competitive and appealing.”

It is a sentiment that we agree with fully. We ask nothing more than a two-way relationship based on mutual respect rather than continuous demands. We simply ask that the conditions necessary to become more competitive are recognized and shared, that commitment to a new course becomes a joint project for growth, for Fiat and for Italians. All of us who want a better Italy have a responsibility to do something to change things and ensure our place in the world.

Sometimes, I have the impression that in this country there is an apathy toward the present, an attitude that is eroding one of the core values that bind us together, that shape how we view the future. It is as though we believe we have a right to a better future without understanding that we have to work to achieve it.

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Today we are afflicted by a host of problems – enormous problems – but despite that, we still feel deep down that this is the age of rights.

The right to a permanent job in the city where we live and to a guaranteed income. The right to protest and parade. The right to make demands. As I said last Friday when I spoke at Bocconi, individual rights are sacrosanct and should be protected. But if we continue to live only according to our rights, we will die by our rights. This particular “evolution of the species” has created a much weaker generation, lacking the courage to fight, but hoping that someone else will.

A type of wait and see mentality that is both perverse and self-defeating. We need to regain a proper sense of duty, an understanding that in order to receive we also have to give. We need to rediscover a sense of commitment, the dignity that comes with it, and the value of everyone’s contribution in building the present and, even more importantly, the future. The clip you will see shortly is a message of faith that Italy can succeed, because commitment and responsibility are values that still exist in many parts of our society.

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We just need to return to those values and exalt them above the moaning and the apathy. The third clip, which many of you here will no doubt already have seen, was created for the launch of the new Panda.

It was intended as a message of hope for Italy, a reminder to everyone of the nation’s many valuable resources, of its talent and creativity. A nation of people who put passion into what they do. The Italy that works, that overcomes challenges – that part of the nation that doesn’t just throw in the towel or waste time with idle words, but applies itself and works to do, to build, to progress. Despite the numerous difficulties that exist, the period we are currently living through also offers us a great opportunity. We can choose what kind of Italy we want to be and we can play an active role in making it come about. Now is the time to show we are up to the present challenge and worthy of our past. It is time to move forward again in the way we know best, driven by the same work ethic upon which this nation was built. The things we do and the way we do them demonstrate who we are. They reflect our vision of the world and the type of people we want to be. It is only the things we do, the things we make that make us. A simple and direct concept that expresses the core value behind Fiat’s rebirth eight years ago.

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Doing – and doing what we do well – is what defines us, what makes us unique. In my opinion, such an approach is the only approach that will guide Italy through a new phase of economic growth.

[VIDEO “L’Italia che piace” - 60’’] The people at Pomigliano who embraced this challenge with us are an example that it is possible to change things. This is a sign of great hope for the entire nation.

* * * I would like to conclude by thanking all of our shareholders for supporting Fiat and its management over the past 12 months, for believing in the Fiat-Chrysler integration and for being by our side as we embarked on this new phase of growth.

I would also like to thank everyone at Fiat and Chrysler around the world for their contribution over the past year and for what they continue to do for the future of our group.

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