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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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    delhi ncr
    @King CM

    Thanks for that.

    That report pertains ONLY to the American brand cars, and is about delays often of only a few months caused by many factors, one of which is: the firm's American brand cars are selling terrifically (as my posts above show), better than almost everyone else.

    Why? Because Marchionne feels that the American market is near-saturation, and now is when he must use American market profits to boost profits, reduce his debt-load/interest payments, IN ORDER to finance the non-American brand cars that have been starved for new cars over the last 3-4 years.

    i.e., the new Alfa Romeo-s (which have a global market and likely premium pricing and profit margins)

    AND: importantly, and hopefully for us, FINALLY more all-new, non-500-lineup Fiats: i.e., the 'New Avventura', the all-new Punto for and from Brazil and India, the all-new Fiat Aegea sedan and hatch, an all-new Grand Sienna (for India and LatAm).....

    Also: the several new plants being opened and/or expanded+updated in China, Brazil, Turkey and India, and not just the newly, comprehensively re-invented plants for the new Alfa-s, the new Chrysler Minivan, the new Wrangler etc in Italy and the US/Canada.

    btw, average transaction prices in the American car market are up 4%, with FCA being the firm to show the highest improvement in average prices.

    i.e., Now after 5 years of intense and incredibly daring and imaginative work saving the American brands and making them thrive, they are now taking profits, for use prudentially in the so-far relatively capital-starved non-American brands, namely Fiat and Alfa.

    Their American car sales, net, are set to keep rising relative to all others what with the new 500X, Renagade, new Minivan, new Aegea-like Chrysler 100 (to go up against the Corolla and Civic), and the very hot new petrol engines (turbo, twinturbo, +supercharged) coming very soon.

    Not to mention the very exciting (because more affordable than the competition) new electric hybrids (from mild to full) coming too by 2016, starting with Alfa and the apparently rather 'premium' Chrysler 7-seat Minivan.

    So delaying or deferring some American all-new car model changes is just financial prudence, although some Internet gossipers feel and fear it is a sign that Marchionne and Elkann will try to sell Chrysler+Dodge, and maybe even Jeep+Ram off. Given that M has been continuously talking about mergers and 'consolidation'.

    Who knows, but it's very doubtful.

    He's really just trying to immunize the firm financially from the next episode of the 'rolling', 'permanent' global economic turbulence/slowdown/recession/depression, by NOT being as he is now, overly dependent for profits on the American car market.

    This makes me very optimistic that FCA will now finally be pushing harder and faster on these new Indian/Brazilian/Chinese/European+Turkey factories and models (esp Fiats and small Jeeps, and of course to go up globally against the German trio, Alfa Romeo).

    The evidence points that way for sure.

    The caveat to this reading is financial: a downturn in the US, and a further, deeper slowdown in China and LatAm will mean......all financial bets are off!
    --- Double Post Merged, Jun 3, 2015, Original Post Date: Jun 3, 2015 ---
    May 2015 sales for FCA in Italy and Germany

    The trend is similar to the previous month, although the German car market has slowed year-on-year by 8% in May, while being up by 3% or so this year.

    FCA has lost out on sales of the Panda and the Punto a lot, but sales of the 500 series of models are up by 20%, and all the Jeep models from the Renegade to the Grand Cherokee are growing hugely.

    Alfa is steady: Germany will be a quite important market for the new bigger, sportier, rwd sedans+CUVs coming from Alfa Romeo soon enough.

    Italy

    The great rebound in Italian car sales continues with a 15%+ growth y-o-y.

    Fiat, Jeep and even Alfa Romeo (with just the 2 aging hatchbacks) continue to grow faster than the market, and so FCA is gradually recouping marketshare lost during the long southern European recession.

    The 500X and the Renegade, both, are selling very very well.
    Last edited: Jun 3, 2015
  2. prabhjot

    prabhjot Esperto

    Messages:
    2,444
    delhi ncr
    FCA sales in Britain, May 2015

    This car market's been booming for much longer than the rest of Europe (since they have been 'printing money' for years longer, just like the Americans). The Fiat 500 and 500L + Panda have been growing very well, making the UK one of FCA's best European markets. The market's cooling off finally, and despite the 500X the 500 line-up is down year-on-year by 8% or so, but up month-on-month for 2015.

    Jeep sales remain pretty good, holding steady, which suggests that the Renegade has been well-recieved.

    Net-net: FCA is up for the month, and for the year, picking up overall marketshare.

    FCA sales in Japan, May 2015


    FCA is down year-on-year, not at all out of line with the rest of the market which is down 8-14% for every month this year. Bmw's Mini and the new Mercedes models are growing well, everyone else seems to have lost sales by a notable amount including Toyota+Lexus, Bmw, Audi, etc.

    If one includes sales so far this of around 500 each of Abarth, Maserati and Ferrari: FCA's actually doing well, relative to most other firms.

    NOTE: (a) It appears that a fair number of FCA and other company increased-sales are due to an artificial buyancy caused by rental fleets buying like crazy at low prices, mainly because of the booming tourist economy, and especially the HUGE, incredibly large Milan Expo currently underway which is/will see millions of people pass through Italy and Milan.

    (b) Overall European sales are already cooling off, i.e., the post-recession rebound in car sales is already, after a mere 6-10 months, losing steam. Except Britain no country is anywhere near there pre-recession sales figures. Profit margins remain scant or negative.

    (c) With the US near a top, and Europe with very little up-side, if any, Japan down, LatAm down a lot, China slowing very quickly, one would hope that FCA will finally place bigger bets on India and China especially, where, although they make a few tens of millions of dollars of profits, local-manufacture sales numbers are as yet negligible.

    Even a slow China, and a Suzuki+Hy+H+Toyota dominated Indian market offers huge volumes for the taking for FCA, especially in China where the Jeep brand is extremely popular and will only at the end of the year start offering more affordable pricing for the now-localized Cherokee, Renegade and upcoming C-Suv, etc.

    Given the situation elsewhere, perhaps FCA will finally start commiting greater capital to India, like they're already doing in a big (Jeep-centric way) to China, pretty much the ONLY large economies still stable and/or growing decently?!
  3. Mabams1826

    Mabams1826 Amatore

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    Erode
    ERODE
    Fiat Enthusiast
    Excat FCA numbers in US

    Screenshot_2015-06-06-13-03-29.png

    Screenshot_2015-06-06-13-03-34~3.jpg

    Screenshot_2015-06-06-13-03-39~2.jpg
    prabhjot likes this.
  4. prabhjot

    prabhjot Esperto

    Messages:
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    delhi ncr
    FCA sales in Brazil in May 2016

    The Brazilian economy and with it the credit- and currency-dependent car market too is in recession: car sales are again down 25% or so year-on-year.

    Fiat, like the other 2 top-3 firms VW and Chevrolet, is down more than the market, albeit less than these other two. Obviously because of aging models like the Palio, the Punto and Grand Sienna.

    It is the Japanese and the Korean who've picked up marketshare, esp Honda with the HR-V crossover, the single best-selling nameplate in Rio de Janeiro.

    This market behaviour is very different to India. The Indian car market consolidated much further under the already top-3 brands during the sales recession here in 2013/14. One wonders why?

    The great news is the huge success of the locally made and exported Jeep Renegade, selling almost 3000 cars (!, since it's significantly more expensive than an Honda hr-v or a Duster or Ecosport in Brazil as elsewhere) in May 2016.

    Fiat should be fine soon enough, given the cutting-edge new plant at Pernambuco where the Renegade is made (and from where exports possibly even to the US are likely). The plant and adjoining supplier park, with lots of federal and state government capital invested in it as well, will specialize in SUSW cars like this Jeep. Next up: a Fiat branded medium ('lfestyle') pick-up truck for which the radical FCC4 was the concept, also for exports, very possibly as a Ram even to the US. Then the C-Suv Jeep also to be locally made here in India in 2017 (undergoing development/testing) and a big-B- or C-SUV with the Fiat brand, also styled like the FCC4/pickup, or so say the Brazilian autosites, with plenty of evidence.

    Also, from the older factories: a new a-class small hatch, below the Uno which has now been moved up somewhat with the Sporting/Cross version (very funky, btw.)

    It's clear they need in Brazil, exactly like they do here, the all-new Punto and the all-new Grand Sienna, asap, which means end-2016 at the earliest, since development is still underway. Also a cheap but charismatic small, Palio-platform small-b-suv (ecosport competitor) which could be the same as the 'New Avventura' (?) promised by FCA for India in late 2016 or early 2017 in their 5-year product plan.

    Alternately, the Indian 'new Avventura' could indeed be the fcc4-concept-derived, SUSW-based bigger SUV, styled like the pickup apparently? Both the pickup and the SUV have been spied road-testing recently. Since the India-destined Jeep c-suv too will be off the same platform and share a lot of its architecture with it? Here is a link to a sourced rendering of it, too big and therefore expensive imo, but still:

    http://translate.google.co.in/trans...odelo-do-grupo-fca-em-pernambuco/&prev=search

    It seems they'll be 'premiumizing' their line-up in Brazil/LatAm with the new, more expensive SUSW models from the new factory, while they wait out the recession before the later 2017? launch of the all-new, bread-and-butter models: the all-new Punto and Grand Sienna, also of course destined for India.

    btw, the Ford Ka (new Figo in India) is a hit in Brazil, and the Indian-exported Toyota Etios sedan is selling well (as taxis?).
  5. prabhjot

    prabhjot Esperto

    Messages:
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    delhi ncr
    Overall FCA sales growth for in Europe, May 2015

    In may, FCA (Fiat+Jeep+Alfa+Maserati) grew 9% or so, when the overall market grew only 1.1% or so.

    So far this year FCA sales are up 11% on the same period last year.

    Resultantly, FCA's marketshare has grown from 6.3% to 6.8%.

    Marchionne said that FCA has turned mildly profitable at an operational level, something that still eludes Renault, Opel and Ford in Europe.

    Marchionne's strategy of starving Europe of both new cars and of course new investments over the recessionary years are bearing fruit, now that the car sales recession seems to be over, though sustained high growth being witnessed in Italy, Spain etc may still prove elusive, given the great crisis-proneness of both the global and especially the Eurozone economies.

    Of course, starting with the 500X+Renegade, FCA is now moving faster with several all-new models coming up over the next year or a little more: the first Alfa sedan, the Maserati sports CUV, a Fiat Freemont-replacement (called either 500XL or Giant Panda/Pandone?), the Jeep c-suv (also to be locally made in India), and the Aegea-hatchback+sedan, too. + new engines + new utility vans/trucks, etc

    Europe is good for FCA for now (unlike for say ford, renault, PSA, opel or even VW which has a sub-2% profit margin).....but clearly his years-old call for consolidation in Europe is still valid.

    And he is pursuing GM partly, it seems, because he wants to consolidate Opel with Fiat in Europe, and possibly even with Peugeot-Citroen too. He tried doing that in the immediate aftermath of the recession's onset, but unions+governments+managements prevented much consolidation/capacity rationalisation, etc.

    FCA is both in sales growth terms, multi-brand terms and at a corporate/stock-market level.....the most interesting car firm in the world, especially because of the sheer plucky imagination and hard-slogging of Marchionne et al.
    VIJENDRA SINGH likes this.
  6. prabhjot

    prabhjot Esperto

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    delhi ncr
    FCA sales in June 2015

    63rd consecutive month of sales AND marketshare growth in the US. Amazingly, FCA now outsells both Ford and GM (the 2 biggest selling firms in the American market) when it comes to retail customer rather than low-margin rental/fleet/utility/government sales! An incredible achievement for a company all of whose brands were (near)dead in 2008-9, as far as everbody OTHER than Marchionne+Elkann+Fiat were concerned.

    Full Renegade and 500X supplies haven't been achieved yet: a lot more growth coming up over the next few months.

    Transaction prices are up higher for FCA cars than for most other brands, so profits and margins are moving up smartly too, finally.

    Similar story in Canada, where FCA is the no1 firm.

    FCA sales in Italy, France, Spain and Germany also up, HIGHER than market-as-a-whole, i.e., marketshare continues to grow, in a strongly rebounding Western and esp Southern European car market. The Greece euro-exit crisis could put the skids on the good news, though, over the next few months?

    The Renegade+500X together are selling very well, esp in Italy, Spain and France, while Germany seems to especially like Jeeps, even the bigger, more expensive ones, including the Wrangler. The 500X has not hit full steam yet.

    The Melfi plant where it and the Renegade are made is running at full-capacity, multiple shifts, 7 days a week (also for exports to the US and elsewhere).
  7. prabhjot

    prabhjot Esperto

    Messages:
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    delhi ncr
    FCA sales in Brazil, Japan, Australia

    The meltdown in brazilian autosales continues: Fiat-brand sales down 30%!
    GM, VW, Renault, the other big players, also down similar or greater amounts. As is, interestingly, much-smaller Hyundai (minus 10%) or so. But Toyota and esp Nissan and Honda are surging.

    The bright spot for FCA are Jeep sales, especially of the locally-made Renegade: a total of over 3000 in June, from near-zero only 4 months ago, that too in a severely deprressed market.

    They have other newer models, sharing with the Brazilian-made Jeep, a lot, esp its brand-new, state-of-the-art factory: a new C-lifestyle Fiat Pickup, a new Jeep C-suv (the same one India will get for local manufacture in 2017) and a Fiat-branded C-Suv.

    These losses FCA is making in Brazil/S America will remain damaging for a long while. A good thing, then, that US and now European, especially southern European car sales are so bouyant, esp for FCA, more than most other firms.

    FCA: perhaps time to start investing mor heavily in India, a very Brazil-like market, no? Obviously for Jeep, but especially for the 'Fiat' lower-cost/smaller-car brand!!

    FCA down slightly in Japan and Australia, too, mainly on account of a drop in Fiat and Alfa sales, though Jeep continues to do very well in both countries. Alfa is notably popular in japan for such a small brand, and will be vital once the Giulia etc start rolling-out. Fiat's small-car range is unsuited to Australia, and the Japanese car market's down this year 3-6% in any case, so it's unlikely FCA's too perturbed, given Jeep's performance. FCA has shown scorching growth in both these countries since 2013, thanks to Jeep (+ In Japan, Maserati and Ferrari.)
  8. Raj_pol

    Raj_pol Regolare

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    Bangalore
    Punto Evo 1.3
    @prabhjot Interesting Jeep seems to be the golden boy of their entire portfolio. I wonder if they can recreate the same magic in India considering that our choices of cars vary widely from the rest of the world.
    We shall see if and when they launch Jeep here.
    For the next 5 years I do not see any shortage in the sales of crossovers, mini SUV's and the like in India. Also the crowd is maturing though very slowly and we would definitely see more emphasis on safety (6 airbags, abs, hill hold, esp etc...). FCA should keep the same in mind when launching products here.
    Again my thoughts are different. If they could localize some parts of an Alfa Romeo and sell the same here - I mean the big three germans are obscenely overpriced and there is a huge opportunity there.
    dadasaheb and prabhjot like this.
  9. prabhjot

    prabhjot Esperto

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    delhi ncr
    @Raj_pol

    From what I can make out:

    FCA's profits in India despite desultory sales of Fiat-branded cars has to do as much with exports of engines, transmissions, and other components (made in Ranjangaon at the JV plant and at MM facilities) as it does with revenues via Tata and Maruti. Also, the big (apparently 1000 engineers plus) r&d work for global projects that gets done in Chennai and Ranjangaon. FCA globally and in India too are famous for, as a Marchionne policy, in-sourcing of many major components.

    So: price/cost competitiveness is NOT going to be a problem, not for Jeep nor one presumes for Alfa Romeo either when that brand is ready for its India entry (post-2018?)

    The Alfa-s or the ckd, bigger more expensive Jeeps could very likely have a decent degree of localization even without any huge CKD/assembly operation. India is now a HUGE source of component exports, only more so in FCA's case. There may be huge, low-cost-but-high-quality local content EVEN in made-in-Italy/USA luxury/sports cbu models: esp Jeep but as you suggest Alfa Romeo too.

    There is a LOT of pretty easy money to be made by FCA with their premium and super-premium brands: from Jeep to Maserati via Alfa and Abarth. And, I'd argue, even the semi-premium 500 line-up of higher-priced cars.

    Far easier money than could be made slogging away with the Fiat brand mass-market models for what? another 3-5 years at least before profitable good-sales happen. The mass market is imo best addressed, mostly if not entirely, via Tata and/or Suzuki (depending on what sort of 'deal' if any Marchionne could strike with Mr. Osamu Suzuki and sons sometime soon enough?)
  10. Raj_pol

    Raj_pol Regolare

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    Bangalore
    Punto Evo 1.3
    @prabhjot The only question here would then be - what of the dealers? See they should not run a half hearted effort in India with Fiat and for all you argue that is the reality with Fiat. It could be because they do not have money, appetite or a combination of both. Whatever be the reason, they should stop Fiat fully then, and maybe use a far more restricted set of dealers to offer their premium brands. Nobody should be present in one of the world's largest car markets with 2 cars which are virtually unchanged for the last 5 years or more.

    Also unplanned things like as I mentioned before an Avventura with no petrol top end and now a sports car with no diesel version. So yes as you say they should exit this business (Fiat is anyways not as successful a brand as say Jeep is) and start loading in the premium offerings V-6 and all :)
    prabhjot likes this.

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