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Six leading European OEMs:
the global sales in 2009 declined to 16.36 million by 2.4%VW recorded highest sales while PSA, Renault, and Fiat managed to have small decrease ratios in 2009

Executive Summary

  Leading European automobile manufacturing groups, PSA, Renault, Fiat, VW, BMW, and Daimler sold 16.361 million vehicles in 2009, declining by 2.4% from 2008.

  As for individual manufacturers, PSA sold 3.188 million vehicles with a 2.2% decline, Renault sold 2.309 million vehicles with a 3.1% decline, Fiat sold 2.151 million vehicles (excluding Iveco) with a 0.1% decline, VW recorded the highest sales, selling 6.29 million vehicles (excluding Scania) with a 1.1% increase, while BMW sold 1.286 million vehicles with a 10.4% decline and Daimler sold 1.551 million vehicles with a 25.2% decline.

  As the shrinking of the automobile market accelerated in the second half of 2008, PSA, Renault and Daimler posted operating losses and Fiat posted net losses with their business performances in 2009 (VW and BMW have not yet released their figures), while their decrease ratio of sales by volumes was rather small in 2009 except BMW and Daimler.

  Sales of the six manufacturers in 2009 indicate that sales have bottomed out as they decreased by 11.9% year-on-year in the first half, increased by 4.2% in the third quarter and then increased by 13.6% in the fourth quarter. However, all the manufacturers, except Daimler, forecast the auto market will be still grim in 2010.

  PSA, Renault, and Fiat forecast that the European auto market would shrink around 10% in 2010 and VW says there is no sign that the global market will see continuous recovery yet. On the other hand, Daimler and VW believe that the auto market will expand cautiously in China, India and Brazil, driving the global market to recover.

  Furthermore, Daimler and BMW believe that the premium car market, which suffered a huge decline in 2009, will turn to recovery in 2010.

2010 outlook by European six manufacturers

  Passenger car sales in 18 Western European countries increased by 0.5% to 13.63 million vehicles, the sales decreased by 27.1% in 10 new EU member countries to 859,000 vehicles, with the passenger car sales in the total 28 European countries declined by 1.7% to 14.489 million vehicles.

  In 18 Western European countries, as there were positive influences from vehicle purchasing promotion measures executed in these countries, the sales, which had been a 9.7% decrease year-on-year in the first half of 2009, increased by 7.5% in the third quarter and by 21.6% in the fourth quarter.

PSA: Sold 3.19 million vehicles with a 2.2% decline in 2009, aiming to turn free cash flow positive

  PSA sold 3.188 million vehicles in 2009 with a 2.2% decline. The revenues fell by 10.8% to 48.42 billion Euros with an operating loss of 690 million Euros (operating profit of 550 million Euros in 2008). However, in the second half, sales reached 1.601 million vehicles with an increase of 13% from 2008 and its operating profit was 140 million Euros.

  Furthermore, free cash flow that had been expected to be negative in 2009, following negative cash flow of 3.8 billion Euros in 2008, turned into a positive cash flow of 800 million Euros in 2009.

  PSA expects market environment in 2010 to remain sluggish and the European auto market to contract by 9%. However, by introducing new models, reducing costs, and increasing the capacity utilization of its plants, the company believes that it will post a recurring operating profit in the first half of 2010.

PSA: Secures recurring operating profit in the first half of 2010

Renault: 2009 sales down 3.1% while Dacia and Renault-Samsung brands see significant growth

  Renault sold 2.309 million vehicles in 2009, down 3.1%. Although sales of Renault branded vehicles declined by 7.8% to 1.86 million vehicles, the Dacia brand grew by 20.5% to 310,000 vehicles and the Renault-Samsung brand rose by 30.8% to 140,000 vehicles.

  The revenues in 2009 declined by 10.8% to 33.7 billion Euros (it grew by 25% year-on-year in the fourth quarter) with an operating loss of 400 million Euros, a negative operating margin of 960 million Euros and a net loss of 3.07 billion Euros. However, the Company achieved to secure positive free cash flow, which was its top priority (positive free cash flow of 2.1 billion Euros).

  The Company predicts that the European auto market will shrink by 10% in 2010 and sets the same target as 2009, to secure positive free cash flow.

Renault: Places positive cash flow as its top priority for 2010

Fiat: Sold 2.15 million of light vehicles in 2009, slight decrease of 0.1%

  Fiat's passenger car/small commercial vehicle production arm Fiat Group Automobiles (FGA) sold 2.151 million vehicles in 2009 with a slight decline of 0.1% from 2008. The sales in 2009 remained the same of 2008 in Europe and increased by 12.6% in Brazil, while slid by 34.5% in other regions.

  The revenues of Fiat Group, which includes other divisions, were 50.1 billion Euros in 2009, down 15.9% from those of 2008 that were the Company's highest record. The trading profit, to which production adjustments and assertive cost reduction measures contributed according to the Group, only managed to reach 1.1 billion Euros, dipped by 68.5% from the previous year.

  Fiat forecasts that the passenger car market in Europe will shrink by around 12% in 2010 but expects to increase the Group's revenues by 4 - 6%, to post a trading profit of 1.5 billion Euros with a 40% increase and a net income of 200 - 300 million Euros returning to surplus (it adds that if the environmental incentive programs by the Western European countries are terminated, the passenger car market will further shrink and its business performance will also be downwardly affected).

Fiat: The automotive business depends on the environmental incentive programs

VW: Enjoys highest sales in 2009 with 6.29 million while sales in Europe/USA decline by 7.1%

  VW sold 6.29 million vehicles in 2009, the highest sales with an increase of 1.1% from 2008. Although it sold 3.28 million vehicles in Europe, down 7.1% and sold 468,000 vehicles in North America, down 7.1%, the sales in the Asia Pacific region reached 1.55 million vehicles, up 32.1% and in the South American region reached 815,000 vehicles, up 2.2% (any of the figures do not include sales from Scania).

  As for sales of passenger cars by brand, VW marked the highest sales with 3.95 million vehicles, up 7.8%, Audi decreased by 5.4% to 950,000 vehicles, Skoda increased by 1.4% to 684,000 vehicles, and SEAT decreased by 8.6% to 337,000 vehicles due to the contraction of the Spanish auto market.

  VW expects to have decreased revenues in 2009 compared to those of 2008, although it will post better results than the industrial average thanks to increased sales (figures for January to September are revenues of 77.2 billion Euros with a 9.7% decrease and a profit after-tax of 650 million Euros with an 82.5% decline). Forecasting for 2010, VW expects to have yet improved business performance by utilizing its strong presence in China and Brazil where markets are on the expansion. However, it believes there is no sign of continued recovery for the global auto market yet.

VW: Further increases business in 2010 by leveraging its position in China and Brazil

BMW: 2009 sales dipped by 10.4% to 1.29 million, managing to post pretax profit

  BMW sold 1.286 million vehicles in 2009, down 10.4% from 2008. However, the sales during the period from October to December were 347,000 vehicles with a 7.7% increase. It sold 91,000 vehicles, up 37.5% in China and 6,398 vehicles with 2.2-fold increase in Brazil. The MINI brand sold 216,000 vehicles, managing to decline only by 6.8%. Although revenues in 2009 also decreased by 4.7%, it managed to have a positive pretax profit by reducing costs and improving productivity.

  In 2010, it expects to sell over 1.3 million vehicles with a several percent increase thanks to the introduction of new models such as the new 5 Series and the recovery of the global economy.

BMW: Launches new 5 Series in 2010, recovering sales to over 1.3 million

Daimler: The Premium car market expands in 2010 with sales starting to increase and EBIT turning positive

  Daimler's passenger car arm Mercedes-Benz Car sold 1.094 million vehicles in 2009, down 14.9% from 2008. The commercial vehicle division sold 457,000 vehicles, decreasing by 42.8%.

  Total sales of Daimler Group declined to 1.551 million vehicles by 25.2% in 2009. The revenues slipped by 19.8% to 78.9 billion Euros. The EBIT (earnings before interest and tax) was a loss of 1.51 billion Euros (profit of 2.73 billion Euros in 2008) and the net loss amounted to 2.64 billion Euros (it was a net profit of 1.41 billion Euros in 2008).

  Daimler forecasts that the global auto market will expand by 3 - 4% while the premium car market will expand more in 2010. The company expects its sales and revenues will start increasing and EBIT will turn positive in 2010.

Daimler: The premium car market recovers in 2010, EBIT turns positive