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FCA sales in the rest of the world, esp USA, Europe and Middle East, Brazil

Discussion in 'Fiat Global News' started by prabhjot, Feb 4, 2015.

  1. prabhjot

    prabhjot Esperto

    delhi ncr
    FCA in Japan, November 2015

    Fiat is up hugely year-on-year in nov in an overall market that is down 8+%. Jeep is keeping its steady run rate of 400+- cars each month. All FCA cars are of course imported, inlcuded Abarths-, for which demand remains strong in japan, Alfa-s (which is down and needs the Giulia asap), dodges, maserati-s, and ferrari-s.

    Overall, the market is declining for various reasons but FCA is making some money. The renegade and the 500X have not yet been released in japan afaik, so big sales-number increases are likely: Japan likes Mini andlikes Jeep, so.

    Eventually i guess the Jeeps Cherokee, the new C-suv, the renegade and the 500X will be exported there not out of the usa or italy but either India or china, by 2017/2018, which should make them very price competitive (the yen is severely depreciated). But the numbers aren't that big.

    When the trans-pacific free agreement, recently concluded, becomes fully operationalized FCA will likely seek to grow, via tariff-free access, in Japan. They make money there, more can be made, but in the final analysis, like with india: not much, in the circumstances.
    bharath likes this.
  2. prabhjot

    prabhjot Esperto

    delhi ncr
    FCA in Britain, Nov 2015

    Jeep is up a lot but Fiat is down a lot. Fiat only offers the Abarth 500, the new 500, the 500L and the 500X here, plus some vans under 'Fiat professional'. Abarths are up, but the 500 which used to be a top-10 vehicle a year ago, is not selling that well anymore. It seems the refresh has not been to english tastes. Also, the 500X is no hit here. Not surprising since Britain is very patriotic towards Ford, Vauxhall/Opel, Nissan and VW even though none are british-owned or indeed for most models even british made! Britain is a big market, though, and FCA needs to complement the Jeep renegade's sucess there with the India-exported (?) C-Suv (Compass?) and the Fiat Aeea/Tipo large-hatchback + a Fiat bigger than but no-more expensive-than-500X CUV. Also: a big challenge but a nice if relatively limited opportunity in the very first year, is the 2016 Alfa Giulia: Britain is a huge premium-sedan market thanks to the executive 'fleet'-market.
    bharath likes this.
  3. prabhjot

    prabhjot Esperto

    delhi ncr
    Fiat+Jeep in Brazil, november 2015

    The Brazilian market continues to be sunk, and will remain so for a long time it seems, given the fact that to global economic contagion has been added a severe political crisis for the long-incumbent president and her party. Down 30% year on year, again in november.

    The top3 firms, Fiat, GM and VW are all down more than this, FIAT being the biggest and with the oldest lineup, down 40odd%! The seperate Fiat lcv domination is intact, but there too Fiat is down as much. Fiat passenger cars+lcv-s still leave Fiat by very far the biggest car firm in Brazil. It is ultra-competitive cost-wise, there, and so, amazingly is STILL profitable (or as last quarter), uniquely so.

    The Jeep renegade, fully localized and made, is outselling all-comers, at the rate of 6000+ a month @ premium prices, built at the heavily govt-subsidised, cutting-edge new FCA susw plant in ne brazil at Pernambuco.

    Fiat is, as usual and as per the Marchionne strategy of waiting waiting to fully sweat every asset in every way before betting on expensive new ones, late in replacing, refreshing models like the palio, punto, sienna, grand sienna, linea, idea, palio weekend etc.

    By the end of 2016/early 2017, though, they will ALL be replaced or dropped with all-new models, currently undergoing testing, on time perhaps for a 2017 launch of one or 3 of them in india too?

    Meanwhile the strategy is to 'premiumize' while riding out the recession, and to export: hence the premium priced Toro pickup will join the Jeep Renegade, its sibling, in january 2016. As also the Jeep c-suv (india bound) in early 2017, also a higher-margin, export-centric Jeep from the same plant.
    bharath and Vidhyashankar Kannan like this.
  4. prabhjot

    prabhjot Esperto

    delhi ncr
    FCA in China, Nov 2015

    China is the world's biggest market more or less. FCA has, like in India, a fascinating old history in China: JEEPs used to be built in old-unreformed communist China. But the plant that built it was grabbed by Daimler when they sold Chrysler Corp. to the private equity firm Cerebrus in the early 2000's. Unlike the Fiat-brand India, however, the good old Jeep brand in china remains hugely popular and prestigious.

    The result is that FCA is the firm that sells the most fully-imported vehicles, more even than RangeRover-Jaguar, Mercedes, Audi, Porsche etc.

    Ferrari-s and esp Maserati-s are popular in china, and sell well, but the bulk of the 7000 odd import sales in september alone of 2015 were of Jeeps.

    In november the Jeep Compass sold 3000+.

    FCA has just started localized manufacture and sale of the cusw platform (same as the Dodge Dart/Fiat viaggio+ottimo) based new Jeep Cherokee. In its first month of pretty-premium-priced localized sales it sold 2200 odd. Fat margins, since apparently they have not cut prices much since slipping behind tariff walls with localized manufacture. The Viaggio+Ottimo have not succeeded in China, so the plant it seems will be diverted to its platform mate the Jeep Cherokee and in 2017 also to the Chrysler 200 sedan, with the likelihood by 2018 of another Chrysler vehicle being added, perhaps the 2016 all-new Chrysler Town&Country minivan or its crossover avatar.

    FCA is also, with the same chinese government mandated local JV partner, also setting up a second plant, for susw vehicles: the Renegade (2016), the Compass (2017), the 500X (2018) and possibly also the Chrysler 100/Fiat Aegea-Tipo and/or the rumoured larger 500XL crossover later, post-2018.

    Meanwhile, of course, the still-small dealer-body is expanding as well.

    And so, with FCA marques together and singly being the biggest import ones already, FCA can expect the locally-made Jeeps and Chryslers and one or 2 Fiats too, expect to really thrive in China.

    The Chinese market is switching away from sedans to cuv-s in a huge ay, and therefore JEEP with its localized new models (Cherokee, renegade, C-suv) is set superbly, to AT LEAST maintain over the next year or two the very high and very profitable fully-imported sales-strike-rate of 90000 odd vehicles before the Chinese slowdown, which may indeed get worse at some point soon. Tariffs on cbu-s in China are a mere 25%, compared to 140% all told for India!

    The notable thing, greatly to FCA's financial advantage, is that FCA does not have the huge legacy and new investment burden of all the other big european, american and east asian firms. This is an advantage now that China is slowing a lot and investment and product planning bets are proving costly since the local Chinese brands are super-competitive now with their own cuv-s, and since sales growth will not be anything like all non-fca firms have bet their huge chinese investments on. Also, margins for firms as well as dealers are shrinking, including for such premium prestige brands as BMW, Audi and Toyota, as well as non-prestige ones like Hyundai-Kia.

    FCA has JEEP, a very popular chinese brand, and china is moving hugely towards cuv/suv-s and fca's investment, distribution and marketing etc planning is in-sync and realistic, given the new economic slowdown longterm reality in China.

    Advantage FCA, then, despite the slowdown. FCA is very late to China, because of the legacy issues with pre-Fiat-merger Chrysler/Jeep etc. So, while it has lost out on the life saving and enhancing bumper profits that say VW and GM have had over the last 10-15 years, its brands have huge cachet in china, Jeep is very affectionately regarded and, in a sense, their late timing for lcal manufacture is no bad thing, since they have much lower investment-levels at considerable risk in the new slowed-down China than say Hyundai, Ford, Toyota, BMW, VW group etc.

    Their 'bet on China' is necessarily more prudent, smaller, more-tightly-brand-focussed and therefore more remunerative in a slowed-down but still humunguous Chinese car market!

    They will be launching Alfa Romeo in 2017 to, from those very JEEP(+Chrysler+Maserati+Fiat) dealerships, thereby 'leveraging' one strong brand (Jeep+Maserati too) for another more-new-to-China one (Alfa Romeo.)
  5. prabhjot

    prabhjot Esperto

    delhi ncr
    FCA in the European Union as a whole, nov 2015

    FCA has grown MUCH faster than almost all non-luxe firms in the eu market which is up 8+% ytd.

    In nov Fiat has grown 19% year-on-year, Jeep 50% (thanks mainly to the Renegade). FCA minus Maserati and Ferrari and also minus the vans (doblo, ducato etc) sold 68000 vehicles in nov in the eu.

    YTD, if one includes the vans, FIAT branded vehicles have sold 1.2+million vehicles in a post-recessionary EMEA.

    The even greater kick-up in sales volume, and profitable too, given the low cost but high quality manufacturing at the Tofas jv plant in turkey with its depreciated currency, will happen throughout 2016, as the Agea/Tipo models are serially launched across Europe and the ME+A.

    FCA is, AFAIK, the only mass-market firm to be profitable on a net basis in europe currently, and that includes giants like VW+Skoda+Seat, Ford, Opel and Peugeot-Citroen, also Renault. Already, with very much fewer passenger car models offered compared to them.

    i.e., Marchionne's strategy of stopping all new model development, trimming manufacturing costs by cutting down on Italian manufacture (now restarting to grow, for Alfa and Maserati) and going instead to Turkey, Serbia, poland, engaging in brand and dealer and marketing rebuilding via the 500 series of cars, and ONLY then, with apt timing (i.e., european recession over) moving with the 500X+renegade in a booming segment (small stylish youthful cuv-s) and in the VFM segments with the highly-affordable-but-great-quality Aegea/Tipo models out of not Italy but 'third world' Turkey......is proving to be quite the visionary masterstroke.

    Especially as he has had great personal policy-reform influence on the centre-left young PM of Italy: italy is rebounding very much better than most other recession-ed european countries, much to FCA's financial benefit, since it has 28%+ of that market, and rising again fast!

    Jeep's high-margin sales are soaring too, and Maserati's high-margin growth in the EU this year has again been rather good: the icing on this cake.

    How much more possible growth their is for FCA (and others) in the EU is an open question, however, given Europe's vulnerability to multiple global-economic, domestic poilitical and geopolitical (potential) 'crises'.
    bharath, gklc811 and gpunto75 like this.
  6. prabhjot

    prabhjot Esperto

    delhi ncr
    FCA sales in France, italy and Spain: Dec 2015

    Sales up, as has been the case throughout the year, notably better than the average for the market as a whole in all 3, very good-re-bounding-from-recession car markets, picking up marketshare again on the margin. The Renegade+500X twins have been especially well-accepted i these 3 countries: the Melfi plant for them is at full tilt, 20 shifts a week. In a good sign for the reception of the Alfa Giulia, even Alfa Giulietta has grown well. A facelifted one will be shown at the geneva autoshow in 2016, and an all-new rwd one will be offered for europe in 2017/2018.

    Jeep is growing further too. The new C-suv or Compass is missing out on the boom in JEEP sales, but the dealers and brand are clearly pretty well re-established now, esp thanks to the Renegade and so its arrival in 2017, in the huge c-suv space in europe should see success? The REAL growth kicker, very sizeable, will be the Aegea models, since they'll enter market segments that FCA has deliberately stayed away from in the european market for the last 5+years. Already, the hyper-vfm Tipo sedan has boosted the december sales numbers in italy, not a sedan-liking market, for the Fiat brand to a growth-rate of 32% for december.
    dadasaheb likes this.
  7. gpunto75

    gpunto75 Regolare

    Grande Punto 1.3
    Fiat Chrysler Automobiles posted double-digit U.S. sales gains in December, Fiat Chrysler up 13 percent. Fiat Chrysler is the No. 4 seller of vehicles in the U.S. marke. Fiat Chrysler Automobiles and Ford are reporting their best U.S. sales year in at least nine years. FCA said today its U.S. sales of 1.7 million rose 7% in 2015, propelling the automaker to it's best year in a decade as available credit, low interest rates and low gas prices likely led the U.S. auto industry to record sales for the year. FCA US said its 217,527 sales in December were up 13% as deliveries of its Jeep brand soared 42% and the automaker recorded its 69th consecutive month of year-over-year sales increases. Sales also rose 6% for Dodge, 4% for Ram and 1% for Fiat but fell 21% for Chrysler in December. “FCA US finished 2015 strong with sales up 13% and our best December sales since we started business more than 90 years ago,” said Reid Bigland, Head of U.S. Sales. “For the second straight year, the company has topped 2 million in U.S. sales.
    Courtesy: Reuters and freep.com
    While the WSJ says
    "Fiat Chrysler Automobiles NV on Tuesday posted a 12.6% gain to 217,527 vehicles sold in the U.S. for the month, extending the Italian-U.S. auto maker’s sales gains streak to 69 months. Jeep brand sales soared 42% for their best month ever, with the Cherokee, Compass and Renegade individually reporting their best month and the Wrangler and Patriot recording their best December sales ever.That contributed to the auto maker posting its best December sales since starting business more than 90 years ago."
    PradeepM, prabhjot and SOOZ_P like this.
  8. Raj_pol

    Raj_pol Superiore

    Punto Evo 1.3
    The Fiat brand itself seems to have almost no presence at all in the US though the FCA group as a whole is doing well. I wonder what plans for the FIAT brand by itself considering most of the growth seems to have come from Jeep or any of the other acquired companies.
  9. bibin

    bibin Regolare

    Fiat Chrysler Automobiles took the Canadian auto-sales crown for the first time in 2015 beating FORD AND GM.
    Raj_pol likes this.
  10. prabhjot

    prabhjot Esperto

    delhi ncr
    The American brands under the custodianship of Fiat, Sergio Marchionne and John Elkann/Agnelli have achieved, in december 2015, the HIGHEST-ever-in-the-90-year-history-of-Chrysler sales figure

    No1 car firm, all brands but mainly Jeep, ram and Dodge, in Canada for 2015 as a whole, despite the downtime of the Canadian minivan plant in Windsor, now revamped, re-invested and on the verge on Jan 11, of launching the next-gen Minivan, the Chrysler Town And Country (Dodge Caravan), including its purportedly very excellent vfm plug-in-hybrid tech version (phev).

    The minivan IS a Chrysler Corporation invention, as a passenger, private vehicle format and segment anywhere in the world. BIG good/decent-margin sales of the new Town and Country are very very likely both in Canada, of course, but also in the US: it is a historic, popular nameplate.

    A crossover, badged Chrysler, based on the Fiat/Alfa platform (us-version), the CUSW, used on the Dodge Dart, Fiat Viaggio, Jeep Cherokee, and Chrysler 200, will follow in end 2016/early 2017, apparently. Also to be offered as a phev.

    : FCA up 11%, a large part of the growth being of Brazilian Fiats (one or 2 re-badged as Dodge and Ram) as well as of the 500, also growth for the 2 current hatchbacks from Alfa Romeo. Big growth for Ram (some of its pickup trucks are made in Mexico, as are some big v6 petrol engines), and of course for Jeep.


    FIAT is NOT a global-growth-focus-and-push brand for FCA, Marchionne has said that clearly, repeatedly.

    It WILL only be beefed up in Brazil+Argentina+LatAm (and India? remains to be seen through 2017) with the Toro, new Palio, new Punto, X1h/Mobi etc and of course will be/is already being re-grown aggressively (beyond the popular 500 lineup of models, and the Panda) via the 124 spider, the Aegea/Tipo models, and the new, updated vans, Doblo, Ducato, Daily etc) in Europe, Turkey, parts of the 'Middle East' and North Africa, likely even including, for lcv-s, Iran.

    For the rest of the world, FIAT will recieve only the more euro-chic models, in the main: Japan, China, Australia, Malaysia, korea etc, namely the 500X, Abarth, the upcoming in a year or a little more the '500XL' etc. China will see very little focus on FIAT either: almost-entirely JEEP and Alfa Romeo+Chrysler.

    FCA under Marchionne follows a brand-first and multi-brand (for different segments and regions/countries) approach. FIAT is not AT ALL a universal catch-all brand like say Ford, Toyota, Nissan, VW or Hyundai.

    India, it is true, just does not seem to be or to deserve much attention, as a retail market, given such a strategy and such priorities. Yes, export-base, r&d-engineering centre, and JEEP+Maserati+Ferrari make sense here and are likely. Remains to be seen whether any great big new model push will be commited-to in 2016/17 by FCA.

    I doubt it, am sure they may doubt it too, given what has happened since the new dealership launch+facelifted models+Abarth launch etc. And now the start of a diesel emission/b4 to bs6 fuel crackdown, etc etc, as well. But most of all because they have a 50 billion$ investment program through to 2018/2020 for so many brands and so many old and all-new nameplates in their better/strong and core markets and segments that spending much on a tough/impossible-to-crack market like India makes ever-little, less and less sense, IMO.
    --- Double Post Merged, Jan 7, 2016, Original Post Date: Jan 6, 2016 ---

    JEEP will be 75 years old this year as a born-global (thanks to WW2 and the allies victory in europe, n africa and china+india) brand and pioneer of the automotive genre known as 'suv' as well as 'luxury large suv' as well as 'off roader' as well as 'retro suv' etc.

    It will, then, be launching in India in its milestone year.

    JEEP has blown away its own targets for 2015 (global sales) of 1.2 million sales, with ease. A record year, with SO much further-growth baked-in already, given (a) the new plants in brazil, china and india (b) the new c-suv coming up in end-2016/2017 (c) new Wrangler, new Wrangler pickup, and new Range Rover-competing Grand Wagoneer luxe 4x4 7-seat suv, by 2017/2018.

    A lot of the JEEP incremental growth is 'white space' and conquest growth, even in the USA but esp in Europe, Brazil/LatAm, Japan, and going forward: China+India(in small numbers initially.)

    JEEP, unlike any other global brand, has tons of room to grow (profitably) EVEN if global and/or regional macroeconomic conditions detriorate a lot further.

    Congratulations to FCA and Marchionne+Manley etc. Go JEEP in China (2016 onwards, local manufacture) and in India too (2016-2017....)!

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