Fiat Group on Tuesday reported a first-quarter 2003 net loss of EUR699 million, compared with EUR663 million in the first three months of 2002. For the Fiat Auto division, in Western Europe, the contraction that characterised the car market in 2002 continued during the first quarter of 2003. Overall demand was down 2.7%, aided in part by an increase of 5.8% in Italy, where motorists took advantage of environmental incentives provided by the government during the last three months of this programme. The Polish market continued to improve, but a credit crunch had a negative impact on demand in Brazil.