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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

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    Very notable factoids from carsitaly.com about FCA sales around the world by brand.

    Brazil's political economy is suffering greatly from the ongoing, permanent, global economic crisis. Car sales are down again this year, following a severe downturn last year too (India was in a car sales downturn too, for a couple of years, similar causes, but that is OT).

    Fiat, being the dominant player there (though nowhere near as oligopolistic as Maruti Suzuki in India) is down MORE than the market, largely because the cut-price Nuvo Uno is dated, and because the Japanese (T, H, Nissan) and the Korean are surging. All the other strong EuroAmerican players (GM, VW, Renault, PSA) are down even more than Fiat. i.e., Brazil, a quai-European, albeit 'third-world' country, is lurching in times of economic crisis towards the carmakers who for decades have specialised in third-world markets (i.e Toyota, Honda et al). Becoming more like, in aggregate, statistically, say India or say Indonesia or Thailand. A new Uno is coming soon though, apparently.

    BUT: FCA has just started the localized manufacture at the new state-of-the-art plant in Pernambuco of the Jeep Renegade. AND: it's pricing is fantastic, as low as the Ford Ecosport and the Duster, in a bouyant segment of the market: small cuv/suv-s! It should really grab sales from these two, in numbers!

    And really is a pointer to the kind of costing FCA could achieve with this and other small new Jeeps AND their Fiat-brand siblings (500X, 500L, etc) in India, with heavy localization, perhaps based on exports (like the Ecosport and Duster in India)!

    Another factoid: FCA sold as many as 18000 FULLY IMPORTED Jeeps in China.....in the month of January this year alone! The highest number of imports sold for any brand. Local manufacture of the Cherokee begins later this year, and of the Renegade in 2016: Jeep sales can be imagined, then, without the import-duty burden! Even though china too is in the midst of a/the new, 'permanent' global slowdown?

    FCA is down and losing marketshare in Turkey too, where it is a very strong player, in another country seeing a big economic and car sales slowdown. But the new, good-selling Ram Promaster vans in the US are now being exported from there to the US, and the new Linea-replacement+its hatchback version are being readied and engineered in Turkey, and will be made only by FCA-Tofas turkey, also for exports.

    All told: FCA is strong and strengthening in the US, getting stronger in a rebounding Europe and in China via Jeep, stronger in australia, mexico, japan and canada, but weaker in the Fiat-brand-centric non-European world (LatAm, Turkey) and of course India.

    FCA's future growth clearly lies with Jeep and its new Fiat siblings (e.g., 500X) in these emerging markets, rather than with the old-style Fiat mass market cars!

    And of course with Ferrari, Maserati and the upcoming new Alfa Romeo-s in a global economy that may be in crisis but is producing millionaires, billionaires and plutocrats all over, from 'poor' india to 'successful' China.
  2. prabhjot

    prabhjot Esperto

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    Turkey is over the worst of its economic slowdown (for global AND regional, middle east politics reasons/causes) and car sales rebounded hugely in march. The Linea's sales are up a lot: it remains the #1 bestselling car model, the 500L is selling very well, even better than the Punto. And the commercial LCV range, locally made, have a nearly 40%, growing share of the market, with lots of exports too.

    Germany has a steady, now growing strongly car market, one totally dominated by domestic marques and their proxies (eg., Skoda), but here too FCA has grown far quicker than most if not all firms, led by Jeeps, esp the Renegade and the Cherokee, and the Fiat 500 and Panda, and even the Punto is up a fair bit.
  3. prabhjot

    prabhjot Esperto

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    http://www.autoedizione.com/altavilla-italy-important-basis-for-fca-and-alfa-major-member/

    Notable that the Fiat and Fiat professional+Iveco vans and trucks etc are doing well in North Africa and the Middle East.

    Perhaps a pointer to FCA trying out the Doblo and/or Ducato, in some form and substance, Tata-badged of course, in India and SAARC?

    btw, the Renegade and the 500X together (the latter is just getting going, while the former is by a still-relatively unknown though appreciated brand, Jeep, in Europe, with a still growing dealership network) are together selling pretty well, at the rate of about 5400 a month, in the EU.

    All indicators point to the Renegade and possibly albeit to a much lesser extent, the 500X being BIG hits in the US and NAFTA.

    And so the Melfi plant is humming at the rate of a 1000 cars a day!

    Bring them here, already, FCA!
    --- Double Post Merged, Apr 6, 2015 ---
    http://www.autoedizione.com/melfi-producing-some-1-000-cars-every-day/
    Last edited: Apr 6, 2015
    asimpleson likes this.
  4. prabhjot

    prabhjot Esperto

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  5. prabhjot

    prabhjot Esperto

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    http://allparnews.com/index.php/2015/04/fca-building-an-italian-car-brand-28415

    This a very important insight into just how visionary Marchionne and John Elkann/Agnelli are, how long term in their thinking, with an acute sense of branding and the weight or enablement of their past on their present potential, around the world.

    To supplement this 'Italian Car' meta-prestigious-brand (from Fiat to Ferrari via Alfa and Maserati) globally they are using the hardcore Americana of the Jeep brand (and its very old global presence from India to Egypt to China) as the basis for their global-growth efforts, which are already such successes...despite the quasi-permanent global economic slowdown/stagnation, and despite the fact that they're only just getting started with the global launch and development of the new b- and c-Jeeps, and the bmw-fighting Alfa-s.

    In which case: India just does not work as far as this 'italian' brand stuff goes, while China, North Africa, LatAm, Australia, Japan and the Middle East/Turkey etc do! Here, Jeep will have to be the very major emphasis, branding wise for FCA?
  6. prabhjot

    prabhjot Esperto

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    Sergio Marchionne has created a stir among financial and automotive analysts by, perhaps for the first time by any ceo of any firm in any industry anywhere and at any time, denouncing and deconstructing his own firm, and his industry, for being the most wasteful-of-capital industry of all.

    i.e., for being addicted to high cost, low risk perpetually high investment that fails with only one or two exceptions to earn its cost of capital over a business cycle.

    He openly is arguing for consolidation, on a large scale, and/or at the very least a huge increase in cooperation among big firms on, especially engines and transmissions.

    He did this at the presentation of FCA's Q1 results which are mostly up, except for LatAm where a recession's underway. He spoke on the subject of 'consolidation' (i.e., mergers, acquisitions, large scale pooling of risk/r&d/engines etc) for 2 hours, with a powerpoint presentation full of data to prove that the industry as a whole LOSES money over the business cycle, and therefore only gets by on subsidies from governments, from central bank money printing, loose credit etc rather than on its own capitalist/managerial merits.

    Analysts are all agreeing with him, and yet are seeing it as Marchionne and the Agnelli clan getting desperate and fearful, and wanting to sell-out, especially since a major further global downturn is forever imminent, and given the fact that the Agnelli-s have only invested and not taken out a penny in dividends since the merger in 2009, and have promised to not do so till 2018, the final year of the famously ambitious, audacious 5-year plan (centering mainly on the globalization of Jeep and the launch and promotion of 8 new major Alfa Romeo-s, platform and engine sharing, etc) of Marchionne (also the year he will retire).

    He was asked that, point blank. He called it hogwash, and confirmed their earlier guidance, both financial and about the 5-year plan's sequence of new car model launches, new factories, etc.

    Clearly, though, he will be taking major, perhaps radical, action in terms of mergers, equity-swaps, perhaps sales of a brand or two, strategic tie-ups esp for engines, etc. He even threatened to speak to the likes of cash-rich Google and Apple if no other big car firm would heed his warning and critique of the pathological addiction-to-capital/value-destruction/waste in the car industry.

    It is unlikely any of the big, much more profitable firms (GM, Ford, Toyota, VW, Hyundai-Kia, Renault-Nissan) will be willing to merge/buy or sell, although VW does seem a very good fit, depending on how a deal is structured. Now that the hated Ferdinand Piech has been ousted from chairmanship of VW.

    Perhaps, a reprise of Mercedes-Chrysler? or say BMW with FCA?

    Chances still are that the 'deals' he does will be with Suzuki and/or Tata Motors, supplemented by smaller co-projects with Mazda and Mitsubishi. The latter is especially interesting, since a tie-up across the board (from tractors and agri machinery to buses/trucks to construction machinery to auto components to highend cars to budget emerging-market cars, and shared r&d costs) will yield HUGE cost savings over many years, for FCA, JLR, and Tata Motors, as well as CNH Industrial (Iveco, New Holland etc).

    Funnily, then, India, a market where FCA is negligible in terms of sales, seems to exemplify Marchionne's vision of a lower-cost-through-sharing-and-cooperation-among-competitor-firms-and-brands! No sales, but good profits! Unlike even Honda, Toyota, and Tata, let alone Ford, VW etc.

    Deal or no deal: FCA India's clearly going to be hyper-efficient with capital by sticking close to Tata and Suzuki for engines, transmissions, etc, and by focussing on exports especially of the new smaller Jeeps for which fresh investments are underway in the Ranjangaon.

    FCA has just too many big investment commitments globally, with the lingering financial burdens of the merger with Chrysler etc (high cost loans, high labour cost guarantees etc) to really bother with the expensive/impossible-to-crack Indian car mass market?

    PS: Marchionne's got degrees in Philosophy, Accountancy, and Law. He is a champion poker player. He loves fast Ferrari-s etc, speaks several languages fluently, is a workaholic, is as much an outspoken public intellectual (by the low standards of corporate types) as he is a visionary and fearless yet cautious leader, and saviour/caretaker of so many historical, marquee brands (from Jeep to Ferrari via Fiat and Dodge and Alfa).
  7. Saket Sidana

    Saket Sidana Regolare

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  8. prabhjot

    prabhjot Esperto

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    Sales for April 2015 for FCA for the US and Canada.

    Total FCA sales up 6% year-on-year.

    Total-all-brand-marketshare gains.

    Best April sales performance since 2007.

    No.1 car firm in Canada (all brands).

    The all-new (i.e., entirely post-Marchionne) products, the Dodge Dart, the Chrysler 200 and the Jeep Cherokee outselling all other nameplates in the FCA portfolio including such legendary ones as the Jeep Wrangler and Grand Cherokee.

    The Jeep Renegade in its very first full month sold 4500 or so, already. It is imported from Italy. 500X sales have not begun yet: next month.

    Fiat 500 is down in a segment that is down because of low gasoline prices, and in any case very small, because it is very small by American standards.

    The 500L, panned for being goofy looking and with some early supposed 'quality issues' (in reality, Americans' unfamiliarity with small turbopetrols and dual-clutch gearboxes) is now selling well at about 1200 a month, steady, now that they've removed both points of culture-shock for the American customer.

    38 Alfa 4c sports cars sold

    HUGE demand for the 'big badass Americana' cars: the Dodge Challenger, the Dodge Charger and the Hellcat 707 bhp engine variant. Also, the Chrysler 300.

    Ram trucks growing even further.

    Ram-badged, Fiat vans (imported from turkey: the Doblo and Ducato) selling well too.

    FCA has announced they will up their profit margins from the booming American market (around 4% now) to 6% or so by the end of the year.
  9. prabhjot

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    FCA sales in Mexico (all brands)

    7500 or so for April 2015, up 16%. FCA sells the Mitsubishi Attrage and the Fiat rand Sienna re-badged as Dodges. Jeeps and Rams and the Chrysler 200 doing very well. Even the fiat 500 and 500L selling much more.
  10. prabhjot

    prabhjot Esperto

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    FCA sales in France, Spain and Italy (all brands) for April 2015:

    Up as much or more than the market average, Italy (20% +) and Spain in particular growing well, France more mutedly.

    The Jeep Renegade's selling well in all three markets, especially in Italy. The 500X is picking up further steam in its second month. The Melfi plant where they are made is running full-tilt, multiple shifts.

    The Panda, the 500, the 500L even the Lancia Ypsilon and the Punto selling really well in all three countries, esp Italy and Spain.

    FCA has withdrawn all Chrysler products from Europe, whether 'Chrysler' branded (UK) or re-badged as 'Lancia' in italy. The Fiat Freemont (Dodge Journey) still sells in Italy, Spain etc, though, and well enough for its segment.

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