F&I Management & Training

Fiat has thanked the positive impact of the various government-backed car scrappage schemes across western Europe for a rise in sales last year.

The Italian firm said global sales of its Fiat, Lancia and Alfa Romeo models had risen 5.7% to 1.84 million cars.

It said the scrappage scheme in Germany saw its German sales almost double, while UK sales had risen by 17.7%.

However, parent company Fiat Group made an annual net loss, which it blamed on its taking of a 20% stake in Chrysler.

Although Fiat Group did not pay for this share of the US carmaker last June, it said "the strategic realignment with Chrysler" caused significant restructuring costs and write-downs.

This contributed to an annual loss of 800m euros ($1.1bn; £702m), which compares with a profit of 1.7bn euros in 2008.

'Gradual recovery'

The results for the wider Fiat Group, which saw its annual revenues fall 16% to 50.1bn euros, also include the company's agricultural machinery business, and its trucks and buses unit Iveco.

"After a particularly negative start to the year, the introduction of incentives in several major markets led to a gradual recovery in demand in western Europe," said the company.

Under the various scrappage schemes, owners of old cars are given a subsidy towards their purchase of a new vehicle.