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

Table of contents

Summary
PSA's sales down by 1.5% to 3.549 million units, while automobile division posts operating loss
Renault posts record high sales of 2.722 million units, aiming for the third-consecutive record sales in 2012
Fiat: consolidation of Chrysler boosts sales by 66%, while FGA has four-consecutive drop in sales volume to 2.033 million units
VW continues to increase unit sales, sales and operating profit for two consecutive years, while aiming to refresh these records in 2012
BMW marks record high sales volume for first time in four years, while sales and pre-tax profit refresh records for two years in a row
Daimler's business results hit a new high for the first time after the split-off of Chrysler

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
		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.

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