European OEMs' 2012 plan: VW, BMW and Daimler to report record sales volumes

Fiat's non-consolidated profit declines in 2011, while PSA' automotive division posts operating loss

2012/05/18

Summary

 Six European major OEMs of PSA, Renault, Fiat, VW, BMW and Daimler had increase in sales to 20.3 million units in 2011, up by 12.2% over the previous year. Their business stayed sound following 2010. They successfully responded to demand in the emerging countries of China, Russia and Brazil, and their sales crossed 20 million-unit mark. Three German OEMs of VW, BMW and Daimler, thanks to brisk sales of high-end models, and Renault marked record-setting sales volumes. As sales of compact cars dropped in Europe, PSA and Fiat recorded a fall in sales volume.

 In the financial aspect, Germany's big three posted record high sales and profits. Fiat, which integrated with Chrysler, posted considerable increases in both sales and profit on a consolidated basis but posted a fall in profit on a non-consolidated basis. PSA's automotive division reported operating loss. In 2012, it will work towards sound financial status.

 These OEMs predict that, in 2012, the European market will shrink by a few percent, but the global markets around emerging countries and North America will continue to expand. Three German OEMs aim for record-setting results above the 2011 records.

Related Reports:  Fiat (May 2012), Renault (Jan. 2012), BMW (Nov. 2011)
Mercedes-Benz Cars (Nov. 2011), Daimler's Commercial Vehicle Business (Nov. 2011)
PSA (Aug. 2011), VW (Aug. 2011)

2012 Plans for Six European OEMs

PSA In 2012, PSA predicts that the European market will remain in grim circumstances and shrink by 5%. PSA will implement financial reform in 2012 by cutting procurement and fixed costs by one billion Euros, reorganization, curbing investment and R&D costs, reducing inventory, cutting net debt and disposing assets.
Renault Renault expects that the worldwide market will grow 4%, although it predicts that the European market will shrink 3 - 4%. It aims for sales volume higher than the 2011 record (record-setting level) to obtain free cashflow.
Fiat Fiat predicts a 5% shrinkage of the European market and a 5% expansion of the US and Brazilian markets. As the entire Fiat-Chrysler Group's targets, it aims for sales greater than 77 billion Euros, operating profit of 3.8 billion to 4.5 billion Euros, and a net profit of 1.2 to 1.5 billion Euros.
VW VW predicts that the European markets will shrink except for Germany, but the global passenger car market will outreach the 2011 level thanks to the growth of the American and emerging markets. It aims to have sales volume and sales in Euro greater than the 2011 record and operating profit on a par with the previous year level.
BMW BMW aims for two-year consecutive record sales in three brands: BMW, Mini and Rolls-Royce in 2012. It also aims to outreach the 2011 record pre-tax profit.
Daimler Daimler predicts that the global market will grow in 2012 around the US and Asia by about 4%. Daimler plans group-wide sales volume and sales in Euros above the 2011 levels. It aims for EBIT on a par with the 2011 record.

Outline of six European OEMs' business results

(Euros in millions and global sales units in thousands)
2007 2008 2009 2010 2011
PSA Global sales volume 3,428 3,260 3,188 3,602 3,549
Sales 58,676 54,356 48,417 56,061 59,912
Operating profit 1,752 550 (689) 1,796 1,315
Net earnings 885 (363) (1,161) 1,134 588
Renault Global sales volume 2,485 2,382 2,309 2,627 2,722
Sales 40,682 37,791 33,712 38,971 42,628
Operating profit 1,354 326 (396) 1,099 1,091
Net earnings 2,734 599 (3,068) 3,490 2,139
Fiat Global sales volume 2,234 2,153 2,152 2,082 2,033
Sales - - 32,684 35,880 59,559
Operating profit - - 736 1,112 2,392
Net earnings - - (345) 222 1,651
VW Global sales volume 6,190 6,257 6,336 7,203 8,265
Sales 108,897 113,808 105,187 126,875 159,337
Operating profit 6,151 6,333 1,855 7,141 11,271
Net earnings 4,122 4,688 911 7,226 15,799
BMW Global sales volume 1,501 1,436 1,286 1,461 1,669
Sales 56,018 53,197 50,681 60,477 68,621
Operating profit(EBIT) 4,212 921 289 5,111 8,018
Net earnings 3,134 330 210 3,224 4,907
Daimler Global sales volume 2,089 2,073 1,551 1,895 2,111
Sales 99,399 98,469 78,924 97,761 106,540
Operating profit(EBIT) 8,710 2,730 (1,513) 7,274 8,755
Net earnings 3,985 1,414 (2,644) 4,674 6,029
Total Global sales volume 17,926 17,561 16,822 18,871 20,349
Sales - - 349,605 416,025 496,597
Operating profit - - 282 23,533 32,842
Net earnings - - (6,097) 19,970 31,113
NOTES: 1. Global sales volume of Fiat represents those of Fiat Group Automobiles, which do not include that of Chrysler LLC. Sales and operating profit include those of Chrysler after June 2011. Fiat split off the commercial vehicles/industrial equipment division (Fiat Industrial) in January 2011. The 2009 and 2010 data represent the sales of the passenger car division announced retroactively.
2. VW's global sales include those of Scania which has been consolidated since July 2008, and those of MAN from November 2011.