European OEM strategy: cost reduction and expansion beyond the EU

2012 results and future plans of several OEMs are reviewed

2013/04/09

Summary

Global Sales of 6 European OEMs

 Six European OEMs of PSA, Renault, Fiat, VW, BMW and Daimler sold 23.04 million units in 2012, up 3.4% y/y. Although the German three of VW, BMW and Daimler renewed their global sales records to result in good financial results, their sales in the European market remained in the same level as a year earlier. Increased sales outside the EU contributed to breaking the records.


 Renault dropped global sales by 6.4% y/y to 2.55 million units, the first year-on-year drop after four years. Fiat expanded global sales by 6.1% to 4.2 million units, since favorable sales of its affiliated Chrysler Group in North America balanced out doldrums in Europe. PSA has the largest dependency on the European market among the six OEMs with European sales accounting for 62.3% of total sales volume. Its global sales, therefore, were largely hit by the sluggish vehicle sales in Europe and severely diminished by 16.5% y/y to 2.96 million units.

 The German three also refreshed their records in revenue and net profit. Fiat alone decreased profit, while the Fiat Group greatly increased revenue and net profit as a result of the merger with Chrysler. PSA posted operating loss and net loss.

 For 2013, each European OEM forecasts sluggish European sales and market expansion outside the EU including the U.S. and China. They plan to develop and strengthen sales and production operations and to pursue cost reduction in non-EU markets including North America as well as in the emerging markets including China.


Related reports:
Mercedes-Benz plans to sell 1.6 million units in 2015 (Feb. 2013)
BMW to reach sales of two million vehicles: four years ahead of plan (Dec. 2012)
VW: to increase sales in China and US, eyeing 2018 global target of 10 mil units (Aug. 2012)

Six European OEMs' plans for 2013

PSA  PSA forecasts that the European market will contract 3 to 5 %, while it expects 8% growth of the Chinese market and 2% growth in both Russia and Latin America. In 2013, it aims to halve the negative 1,387 million Euros free cash flow of 2012.
Renault  Renault expects that the worldwide market will expand 4% thanks to buoyant markets of North America and the BRICS, while it anticipates the European market will shrink by 3 to 4%. In 2013 the OEM aims to increase unit sales, improve operating profit and to maintain positive free cash flow, on the condition that the European and the French markets are not worse than expected.
Fiat/Chrysler  The Fiat-Chrysler Group predicts that the European market will contract up to 5% and the U.S. and Brazilian markets will expand approximately 5%. It aims for 88 billion to 92 billion Euros in revenue, 4 to 4.5 billion Euros in operating profit and 1.2 to 1.5 billion Euros in net profit. The Group said that declines in Europe would be covered by growth in North and Latin Americas and the Asia Pacific region.
VW  VW expects the passenger car demand in Western Europe will generally be facing difficulties in 2013, while growth in China and India to increase but in a smaller level than before. Based on the assumption that the situation should turn around in 2014, VW forecasts that growth will continue especially in Chinese and ASEAN markets and expects sales in 2013 to be equivalent to those in 2012.
BMW  BMW expects 4% growth of the global market: 2.1% of the U.S., 8.5% of China, 10% of Russia, 7% of India and 9% in Brazil. As for Europe, it predicts contraction of 1.8%. Although the OEM forecasts that it will consecutively renew its record sales in 2013, it expects the EBIT unchanged from 2012 since it will make large investment in R&D and facilities.
Daimler  Daimler expects that the worldwide market will expand by 2 to 4%. It anticipates steady growth of demand in China and the U.S., although it predicts that profits in the first half of 2013 will not reach to the same level of result as the same period last year. Daimler expects that profits should rise in the second half as a competitive model is to be launched. As for EBIT, it expects a slight year-on-year drop in the passenger car business but anticipates growth in the commercial vehicle business. From 2014 Daimler aims to increase EBIT in both passenger car and commercial vehicle businesses.

Six European OEMs' business results

(Euros in millions and global sales units in thousands)
2007 2008 2009 2010 2011 2012 Changes
in
2011-2012
PSA Global Sales Volume 3,428 3,260 3,188 3,602 3,549 2,965 (16.5%)
Sales 58,676 54,356 48,417 56,061 59,912 55,446 (7.5%)
Operating Profit 1,752 550 (689) 1,796 1,315 (576) -
Net Profit 885 (363) (1,161) 1,134 588 (5,010) -
Renault Global Sales Volume 2,485 2,382 2,309 2,627 2,723 2,550 (6.4%)
Sales 40,682 37,791 33,712 38,971 42,628 41,270 (3.2%)
Operating Profit 1,354 326 (396) 1,099 1,091 729 (33.2%)
Net Profit 2,734 599 (3,068) 3,490 2,139 1,735 (18.9%)
Fiat/Chrysler Global Sales Volume 2,234 2,153 2,152 2,082 3,966 4,209 6.1%
Sales - - 32,684 35,880 59,559 83,957 41.0%
Operating Profit - - 736 1,112 2,392 3,814 59.4%
Net Profit - - (345) 222 1,651 1,411 (14.5%)
VW Global Sales Volume 6,190 6,257 6,336 7,203 8,265 9,276 12.2%
Sales 108,897 113,808 105,187 126,875 159,337 192,676 20.9%
Operating Profit 6,151 6,333 1,855 7,141 11,271 11,510 2.1%
Net Profit 4,122 4,688 911 7,226 15,799 21,884 38.5%
BMW Global Sales Volume 1,501 1,436 1,286 1,461 1,669 1,845 10.5%
Sales 56,018 53,197 50,681 60,477 68,821 76,848 11.7%
Operating Profit 4,212 921 289 5,111 8,018 8,300 3.5%
Net Profit 3,134 330 210 3,224 4,907 5,122 4.4%
Daimler Global Sales Volume 2,089 2,073 1,551 1,895 2,111 2,198 4.1%
Sales 99,399 98,469 78,924 97,761 106,540 114,297 7.3%
Operating Profit 8,710 2,730 (1,513) 7,274 8,755 8,615 (1.6%)
Net Profit 3,985 1,414 (2,644) 4,674 6,029 6,495 7.7%
Total Global Sales Volume 17,926 17,561 16,822 18,871 22,283 23,043 3.4%
Sales - - 349,605 416,025 496,797 564,494 13.6%
Operating Profit - - 282 23,533 32,842 32,392 (1.4%)
Net Profit - - (6,097) 19,970 31,113 31,637 1.7%

Sources: The OEMs' financial statements



PSA Peugeot Citroen S.A. to make further cost reduction efforts to break even

 Worldwide sales of Group vehicles and CKD units decreased to 2,965K units, down 16.5% y/y. Although Group sales increased 9.4% in China and 4.0% in Russia, PSA reported 14.8% drop in its key market, Europe, and 13.2% drop in Latin America. The suspension of CKD unit sales in Iran in February 2012 negatively affected the worldwide sales.
 As for financial results in 2012, PSA reported a consolidated revenue decrease of 7.5% to 55,446 million Euros, an operating loss of 576 million Euros and a large net loss of 5,010 million Euros. The Automotive Division reported 10.3% drop in consolidated revenue to 38,299 million Euros and an operating loss of 1,504 million Euros, 15 times larger than the previous year. As PSA depends heavily on the Southern European markets, serious sales decline in Europe became a primary factor for the significant drop in the Group income.

 PSA announced in July 2012 its plans to shut down facilities in France and to cut 8,000 employees as part of its cost reduction efforts to reach break-even in 2015. The OEM and its labor union reached an agreement on the plans in March 2013.

PSA's global sales by region

(Units in thousands)
2007 2008 2009 2010 2011 2012 Changes
in
2011-2012
Europe 2,542 2,231 2,159 2,195 2,063 1,758 (14.8%)
Russia 37 59 41 56 75 78 4.0%
Latin America 266 263 232 294 326 283 (13.2%)
China 209 179 272 376 404 442 9.4%
Others 181 219 142 204 224 259 14.6%
Total Cars 3,234 2,952 2,845 3,125 3,092 2,820 (8.8%)
Total CKD 195 309 342 477 458 145 (68.3%)
Global Sales 3,428 3,260 3,188 3,602 3,549 2,965 (16.5%)
Source:PSA Full Year Results 2012
Note 1. PSA changed a part of its area classification in 2009. 2008 figures in the chart are based on the new classification. "Europe" in 2007 includes 18 countries in Western Europe and Central-Eastern European countries. After 2008, "Europe" means "Europe 30" countries.
2. PSA suspended its CKD shipments to Iran from February 2012.

 

PSA's consolidated business results

(Euros in millions)
2007 2008 2009 2010 2011 2012 Changes
in
2011-2012
Sales 58,676 54,356 48,417 56,061 59,912 55,446 (7.5%)
(of which automotive division) 45,519 41,643 38,265 41,405 42,710 38,299 (10.3%)
Recurring operating income 1,752 550 (689) 1,796 1,315 (576) -
(of which automotive division) 858 (225) (1,257) 621 (92) (1,504) 1534.8%
Net Profit 885 (363) (1,161) 1,134 588 (5,010) -
Source:PSA Full Year 2012 Results
Note 1. Recurring operating income is a business index that PSA has used since 2007, equivalent to operating margin.
2. PSA has distribution company Gefco, parts supplier Faurecia and Financial Division other than Automotive Division.
3. PSA Peugeot Citroen disposed 75% of Gefco's stakes in Dec 2012. Values for 2012 on the above table do not include Gefco's results. The values for 2011 excluding Gefco's are as follows: Sales: 58,590 million Euros; Recurring operating income: 1,093 million Euros; Net Profit: 588 million Euros.

 

PSA's targets

Solutions for stagnant European market Common platform  Cost reduction using common components through introduction of the EMP2(Efficient Modular Platform), to be incorporated in 50% of PSA Group C/D segment vehicles. Production of the EMP2 to start in 2013 in Europe and 2014 in China.
To improve brands  Model mix to be improved by introducing upgraded models in three brands of Peugeot/Citroen/DS Line
Sales ratio outside the EU  To increase sales and production capacities in emerging markets and raise the sales ratio outside the EU to 50% in 2015 and to 2/3 by 2020, from 33% in 2011 and 38% in 2012.
Rebound 2015 plan  To achieve breakeven in the Group operational free cash flow by 2014 year-end. A cost reduction plan equivalent to a total of 1.5 billion Euros and more through personnel downsizing, reduced capital expenditure and R&D cost and introduction of modularity.

Note: Rebound 2015 targets are based on the assumption that European market conditions and pricing environment between 2012 and 2015 are stabilized at 2012 level and that PSA maintains a 13% market share in Europe boosted by new model launches.

 



Renault S.A.S. to aim for business recovery though partnerships with Nissan and Daimler and cost reduction efforts

 For 2012, Renault S.A.S. reported worldwide unit sales of 2.55 million units, down 6.4% y/y, which is the first year-on-year drop after four years.

 By brand, Renault sold 2.125 million units, down 6.0% y/y, and Renault-Samsung sold 65.6K units, down 44.4% y/y, while Dacia sold 360K units, up 4.9% y/y.

 By region, Renault augmented unit sales by 13.6% y/y in the Americas and by 21.6% in the Eurasian market. With only 1.271 million units in Europe, down 18.0% y/y, however, the increase was not enough to offset the fall.

 As for financial results in 2012, Renault reported 3.2% drop in revenue to 41.270 billion Euros, 33.2% drop in operating profit to 729 million Euros and 18.9% drop in net profit to 1.735 billion Euros. The automotive division posted an operating loss of 25 million Euros for the first time after 2009, from a profit of 330 million Euros in 2011. Sluggish sales in its largest market of Europe were a major reason, according to Renault.

Renault's global sales volume by brand and region

(Units in thousands)
2007 2008 2009 2010 2011 2012 Changes
in
2011-2012
Renault 2,135 2,019 1,861 2,116 2,261 2,125 (6.0%)
Dacia 231 258 311 350 343 360 4.9%
Renault-Samsung 120 104 136 162 118 66 (44.1%)
Worldwide 2,485 2,382 2,309 2,627 2,723 2,550 (6.4%)
Europe 1,623 1,508 1,530 1,644 1,550 1,271 (18.0%)
Eurasia 118 130 80 106 171 208 21.6%
Americas 245 255 228 317 397 451 13.6%
Euromed-Africa 499 489 471 560 346 361 4.3%
Asia-Pacific 259 260 0.4%
Sources: Renault Earnings Reports (2007-2012)
Note 1. Figures excluding the Russian AvtoVAZ Lada brand. Lada brand sales were 674,414 units in March through December in 2008 and 418,163 units in January through December 2009.
2. "Europe" includes Western and Central Europe. "Euromed" includes Romania, Bulgaria and other Eastern European countries as well as Turkey and North Africa. "Eurasia" includes Russia and the CIS. "Asia-Africa" includes Oceania and the Middle East.
3. From 2007 to 2011, Renault classified the region in the last column into "Asia-Africa" and "Euromed", which it changed in 2012. The re-classified data in 2011 are quoted from Renault Earnings Report 2012.

 

Renault's consolidated business results

(Euros in millions)
2007 2008 2009 2010 2011 2012 Changes
in
2011-2012
Revenues 40,682 37,791 33,712 38,971 42,628 41,270 (3.2%)
Operating Margin 1,354 326 (396) 1,099 1,091 729 (33.2%)
Net Income 2,734 599 (3,068) 3,490 2,139 1,735 (18.9%)
Sources: Renault Earnings Reports (2007-2012)
Note 1. Net income in 2012 includes the sale value of stocks of truck producer AB Volvo, 1.476 billion Euros.
2. Net income in 2010 includes profit on AB Volvo stocks sold, two billion Euros.
3. Net income includes the contribution from Renault's share in associated companies including Nissan. It was 1,289 million Euros in 2010, 1,524 million Euros in 2011 and 1,504 million Euros in 2012.

 

Renault's 2013 targets

Plans and targets * For 80% of 2014 to 2016 new models, Renault will use common platforms with associated companies including Nissan. Through partnerships, it aims to raise operation ratio of its facilities worldwide by 20% by the end of 2013 and to operate at 100% and more.
* Renault aims to increase its market share in Europe in 2013 by launches of the Captur, Zoe EV, Clio Estate and the new Logan.
Restructuring plans * In March 2013, Renault agreed with its labor union on the downsizing plan to cut 7,500 employees in France by 2016.
* In December 2012, the OEM negotiated with the labor union in Spain to reduce costs through increasing plant operating days, curbing the wage growth rate, setting wages of new employees below existing workers' wages and other efforts in order to invest in new models.

 

 



Fiat-Chrysler Group:Chrysler covers poor performance in Europe

 Fiat-Chrysler Group posted record highs both in unit sales and operating profit in 2012.

 Fiat-Chrysler posted a passenger car sales volume of 4,209K units including LCVs, up 6.1% y/y. Chrysler Group solely sold 2,409K units. Fiat-Chrysler sold 2,115K units, up 18.6% y/y, in North America; 979K units, up 5.4% y/y, in South America; 103K units, up 39.2%, in Asia and Oceania and 1,012K units, down 14.2%, in Europe and other markets.

 Revenues were up by 41.0% y/y to 83.957 billion Euros. Operating profit jumped 59.4% y/y to 3.814 billion Euros and net income resulted in 1.411 billion Euros. Excluding Chrysler Group, operating profit dropped 66.1% y/y to 355 million Euros, revenues fell 4.9% y/y to 35.566 billion Euros and the net loss was 621 million Euros, the first loss after 2009.

 In continuously sluggish European market, revenues fell 11.4% to 17.8 billion Euros. The Group reported, however, 28.8% y/y increase to 43.521 billion Euros in North America, 11.062 billion Euros in South America, which is almost as much as the previous year, and 50.0% y/y increase in the Asia-Pacific region to 3.128 billion Euros. Growth of the Chrysler Group in North America and Asia compensated for the declines in Europe and other markets.

Fiat-Chrysler's global unit sales by region

(Units in thousands)
2011 2012 Changes
in 2011-2012
2013 (Plan)
Europe/Others 1,180 1,012 (14.2%) —1,000
North America 1,783 2,115 18.6% —2,200
South America 929 979 5.4% —1,000
Asia/Pacific 74 103 39.2% —200
Total 3,966 4,209 6.1% 4,300—4,500

Note 1. 2011 unit sales data include Chrysler's sales from January 2011.
Source: Fiat Group Annual Report 2012

 

Fiat-Chrysler's consolidated business results

(Euros in millions)
2009 2010 2011 2012 Changes
in 2011-2012
2013 (Plan)
(excl.
Chrysler)
(incl.
Chrysler)
(excl.
Chrysler)
(incl.
Chrysler)
(excl.
Chrysler)
(incl.
Chrysler)
Net revenues 32,684 35,880 37,382 59,559 35,566 83,957 (4.9%) 41.0% 88,000—92,000
Trading profit 736 1,112 1,047 2,392 355 3,814 (66.1%) 59.4% 4,000—4,500
Trading margin 2.3% 3.1% 2.8% 4.0% 1.0% 4.5% (1.8ppt) 0.5ppt -
Profit/loss
for the year
(345) 222 1,006 1,651 (621) 1,411 - (14.5%) 1,200—1,500

Source: Fiat Group Annual Report 2012
Note 1. Chrysler's performances after June 2011 are included in the data.

 

Fiat's targets

Measures for the sluggish EMEA market
(Europe, the Middle East and Africa)

* In response to the sluggish EMEA market, Fiat will launch models in the Fiat 500 and Panda families as its flagship models. It will also emphasize the Ypsilon model and put less focus on Lancia brand.
* It will also target the high-end market with Alfa Romeo and Maserati brands. The OEM will review the Jeep brand in order to supply models to meet the needs of both European and international markets.
* It aims to keep its strong foothold for LCVs.

To strengthen business in India and China * In order to strengthen business in India, Fiat will launch new models including Jeep brand in the brisk SUV market. It also announced the plan to increase dealerships to 120 by the end of 2013.
* It will expand the scope of alliance with Guangzhou Automobile Group Co., Ltd. in China, including a plan to produce a Jeep model locally. The Jeep model manufactured at GAIG-FIAT Automobile Co., Ltd. will only be available in China. Production of the new SUV will commence in the second half of 2014.

 

 



The VW Group in 2012: Record highs in unit sales, revenues and profits

 The VW Group achieved the highest unit sales in its history of 9.27 million units, up 12.2% y/y. Sales increased 24.6% to 2.81 million units in China, 14.0% to 1.08 million units in South America and 26.2% to 840K units in North America. Only in Western Europe, it posted a fall of 2.4% to 3.09 million units. The OEM explained that the sluggish automotive market in Europe was the reason of the drop.

 By brand, VW, Audi and Skoda brands increased sales over the previous year: 5.73 million units, up 12.7%, 1.45 million units, up 11.7% and 930K units, up 6.8%, respectively. SEAT brand unit sales suffered 8.3% loss to 320K units, affected by stagnated market situations in Italy, Spain and France.

 Commercial vehicles of VW brand raised sales 4.0% to 550K units. Scania brand CVs decreased sales by 16.3% to 67K units due to depressed markets of Western Europe and South America.

 VW achieved 192.68 billion Euros in sales revenue, posting a 20.9% growth y/y, and slightly increased operating profit to 11.51 billion Euros, up 2.1% y/y. The OEM explained that this was due to increased costs along with sales expansion, startup costs for new models and upfront expenditures for the Modular Transverse Toolkit. Profit before tax increased 34.7% y/y to 25.49 billion Euros. Mergers with Porsche A.G. in August 2012 and with MAN SE in November 2011 contributed to the growth.

 

VW's global sales by brand and region

(Units in thousands)
2008 2009 2010 2011 2012 Changes
in
2011-2012
VW brand 3,668 3,954 4,503 5,091 5,738 12.7%
Audi brand 1,003 950 1,092 1,303 1,455 11.7%
Skoda brand 675 684 763 879 939 6.8%
SEAT brand 368 337 340 350 321 (8.3%)
Other brands 10 6 6 8 70 775.0%
Commercial Vehicles 502 362 436 529 550 4.0%
Scania 31 43 64 80 67 (16.3%)
MAN - - - 25 134 436.0%
Global Sales 6,257 6,336 7,203 8,265 9,276 12.2%
Western Europe 2,989 2,918 2,903 3,168 3,092 (2.4%)
Central/Eastern Europe 560 385 430 563 672 19.4%
North America 503 468 550 668 843 26.2%
South America 803 826 908 963 1,082 12.4%
Asia/Pacific 148 150 221 316 365 15.5%
China 1,024 1,401 1,925 2,260 2,815 24.6%
Other Regions 228 189 268 327 407 24.5%
Sources: VW Annual Reports (2008-2012)
Note 1. "Other brands" are Bentley, Lamborghini, Bugatti and Porsche. "Commercial vehicles" are all VW brand.
2. VW has consolidated Porsche since August 1, 2012 and MAN SE since November 2011.

 

VW Group's consolidated business results

(Euros in millions)
2008 2009 2010 2011 2012 Changes
in
2011-2012
Sales Revenue 113,808 105,187 126,875 159,337 192,676 20.9%
Operating Profit 6,333 1,855 7,141 11,271 11,510 2.1%
Profit before tax 6,608 1,261 8,994 18,926 25,492 34.7%
Profit after tax 4,688 911 7,226 15,799 21,884 38.5%

Sources: VW Annual Reports (2008-2012)

 

VW to renew its unit sales and revenue records consecutively in 2013 and 2014

2013 Plan  VW will invest a total of 50.2 billion Euros in the automotive business over the next three years (2013-2015). It will make a capital investment of 39.2 billion Euros, 60% of which is planned to be invested in Germany and 24.7 billion Euros, equivalent to 63%, are to be invested in improvement of facilities. As for new models, the Golf family will be expanded with the Golf Estate, Golf GTI, Golf GTD and Golf BlueMotion. The cross up! derived from the up! and VW's first EV, the e-up! will also be marketed.
Strategy 2018  By 2018 the VW Group aims to increase unit sales to more than 10 million vehicles/year, return on sales before tax to at least 8.0%, the ratio of capital investment in the automotive division to revenues to 6.0% and return on investment in the automotive division to more than 16%. It also aims to reduce an average CO2 emission of the Group's new vehicles to below 120g/km by 2018 and to 95g/km by 2020.
Modular Strategy  A vehicle design and production strategy using common platforms made accessible across all brands and segments. It would improve efficiency in development and reduce costs. As VW's production technologies and facilities will be made available as standard, launches of new products that meet local market needs would be accelerated worldwide and therefore competitiveness of products would be improved. Four types of platform systems will be available: the Modular Transverse Toolkit (MQB) for vehicles with transversely-mounted engines, the Modular Longitudinal System (MLB) for longitudinally-mounted powertrains, the Modular Standard System (MSB) for sports cars and the New Small Family (NSF) for ultra-mini cars.

 

 



BMW to expand in the U.S. and China

 The BMW Group refreshed its record high automobile sales to 1,845,186 units, up 10.6 y/y. By brand, the BMW sold 1,540,085 units, up 11.6% y/y, the MINI sold 301,526 units, up 5.8% y/y and the Rolls Royce sold 3,575 units, up 1.0%. The most-selling model was the BMW 3 Series, achieving 406,752 units with 5.8% increase y/y. The BMW 1 Series greatly increased sales to 226,829 units, up 28.6% y/y, as well.

 By region, sales in Europe slightly grew 0.8% y/y to 865,417 units: 287,400 units, up 0.7% y/y in Germany and 174,500 units, up 4.2% in the U.K. BMW attributed the growth to favorable sales of the 1 Series, 3 Series, the MINI and other models. In France and Italy, however, the OEM suffered decline in sales with 67,364 units, down 4.4% y/y and 60,520 units, down 16.5% y/y respectively, which, it said, was due to stagnant economy in the euro-zone.

 In Asia, sales augmented 31.4% y/y to 493,400 units. Sales in China exceeded 300K units in a single year for the first time, reaching 327,300 units with 40.1% growth y/y. In the Americas, BMW sold 425,300 units, up 11.8% y/y. The U.S. sales were up 13.8% y/y, posting 348,500 units. Thanks to favorable sales of the new BMW 3 Series, sales expanded in China and the U.S.

 In 2012, the Group revenues increased 11.7% to 76.848 billion Euros from 68.821 billion Euros in 2011; EBIT increased 3.5% to 8.3 billion Euros from 8.013 billion Euros in 2011 and net profit rose 4.4% to 5.122 billion Euros from 4.907 billion Euros in 2011. The automotive division posted revenue of 70.208 billion Euros, up 11.0% from 63.229 billion Euros in 2011. The OEM explained that EBIT's lower growth rate compared to revenues' was due to escalating costs for facility investment, R&D and employment. BMW made a capital investment of 5.240 billion Euros in 2012, up 41.9% from 3.692 billion Euros in 2011, as upfront expenditures for production of the 6 Series Gran Coupe, 3 Series models and BMW-i brand models.

BMW's global sales by brand and region

(Units)
2008 2009 2010 2011 2012 Changes
in
2011-2012
BMW 1,202,239 1,068,770 1,224,280 1,380,384 1,540,085 11.6%
MINI 232,425 216,538 234,175 285,060 301,526 5.8%
Rolls-Royce 1,212 1,002 2,711 3,538 3,575 1.0%
Total 1,435,876 1,286,310 1,461,166 1,668,982 1,845,186 10.6%
Germany 280,900 267,500 267,200 285,300 287,400 0.7%
United Kingdom 151,500 137,100 154,800 167,500 174,500 4.2%
Rest of Europe 432,200 357,300 369,200 405,600 403,500 (0.5%)
Americas 355,400 294,200 329,700 380,300 425,300 11.8%
(of which USA) 303,600 242,100 266,600 306,300 348,500 11.6%
Asia 165,700 183,200 286,300 375,500 493,400 31.4%
(of which China) 65,900 90,600 183,328 233,630 327,300 40.1%
Others 50,200 47,000 54,000 54,800 61,100 11.5%

Sources: BMW Annual Reports (2008-2012)

 

BMW's consolidated results

(Euros in millions)
2008 2009 2010 2011 2012 Changes
in
2011-2012
Production Volume (unit) 1,439,918 1,258,417 1,461,253 1,738,160 1,861,826 7.1%
Revenues 53,197 50,681 60,477 68,821 76,848 11.7%
EBIT 921 289 5,111 8,018 8,300 3.5%
Pretax profit 351 413 4,836 7,383 7,819 5.9%
Net Profit 330 210 3,224 4,907 5,122 4.4%

Sources: BMW Annual Reports (2008-2012)

 

BMW's targets for 2013

BMW's targets * Worldwide sales of two million units/year in 2016
* To meet the EU emission standards of 95g CO2/km by the year 2020
2013 forecast * The automotive division aims to achieve EBIT/revenue ratio of 8-10%.
* Introduction of 11 new models in 2013 to total 25 new models by the end of 2014.
Collaborations with Toyota Joint development of a fuel cell system * BMW and Toyota will jointly develop a fundamental fuel-cell vehicle system, including not only a fuel cell stack and system, but also a hydrogen tank, motor and battery, aiming for completion in 2020.
* The partners will collaborate in hydrogen infrastructure development and creation of codes and standards for fuel cell vehicles.
Joint development of a lithium-air battery * Joint research on a lithium-air battery that functions through an electro-chemical reaction between lithium and oxygen in the air. Its energy density and fuel efficiency would greatly exceed those of current lithium-ion batteries.

 

 



Daimler AG in 2012: Record sales volume and revenues, slight fall in EBIT

 Daimler AG achieved record sales volume in 2012, up 4.1% y/y to 2,198,029 units, of which Mercedes-Benz Cars division sold the record high of 1,451,569 units, up 5.1% y/y. The division also refreshed the record revenue, achieving 61.660 billion Euros. Major contributors to such successful sales include compact cars and SUVs. The U.S. market, where Mercedes-Benz Cars expanded sales by 19.7% y/y to 299,741 units, also contributed to the increase in revenues. The OEM expects that new compact cars and new E-class and S class-models will help sales volume grow enough to renew the record consecutively in 2013 and 2014.

 Daimler AG's consolidated revenue in 2012 was up 7.3% y/y to 114.297 billion Euros, EBIT was down 1.6% y/y to 8.615 billion Euros, and net income was up 7.7% y/y to 6.495 billion Euros. The OEM explained that investment in facilities and expenses to increase the model lineup are responsible for the decrease in EBIT.

Mercedes-Benz Cars' sales by region (on a wholesale basis)

(Units)
2008 2009 2010 2011 2012 Changes
in
2011-2012
Western
Europe
733,233 623,489 635,798 625,168 631,423 1.0%
(of which Germany) 332,472 297,756 292,895 290,658 289,923 (0.3%)
(other Western European countries) 400,761 325,733 342,903 334,510 341,500 2.1%
US 251,160 202,955 220,454 250,355 299,741 19.7%
Asia 144,141 138,942 261,568 335,449 338,286 0.8%
(of which China) 48,620 67,451 159,974 223,059 208,494 (6.5%)
Others 144,479 128,519 159,007 170,444 182,119 6.8%
Total 1,273,013 1,093,905 1,276,827 1,381,416 1,451,569 5.1%

Sources: Daimler Annual Reports (2008-2012)

 

Daimler AG's consolidated results

(Euros in millions)
2007 2008 2009 2010 2011 2012 Changes
in
2011-2012
Production Volume (Units in thousands) 2,097 2,150 1,456 1,941 2,137 2,195 2.7%
Sales volume
(Units in
thousands)
Passenger Cars 1,293 1,273 1,094 1,277 1,381 1,452 5.1%
Commercial Vehicles 796 800 457 619 730 746 2.2%
Total 2,089 2,073 1,551 1,895 2,111 2,198 4.1%
Revenues Passenger Cars 52,430 47,772 41,318 53,426 57,410 61,660 7.4%
Commercial Vehicles 42,589 42,859 28,813 36,394 42,348 44,388 4.8%
Total 99,399 98,469 78,924 97,761 106,540 114,297 7.3%
EBIT Passenger Cars 4,753 2,117 (500) 4,656 5,192 4,389 (15.5%)
Commercial Vehicles 4,077 368 (792) 1,998 2,873 2,023 (29.6%)
Total 8,710 2,730 (1,513) 7,274 8,755 8,615 (1.6%)
Net income 3,985 1,414 (2,644) 4,674 6,029 6,495 7.7%
Sources: Daimler Annual Reports (2007-2012)
Note 1. Data of passenger cars are from Mercedes-Benz Cars and data of commercial vehicles are the total of Daimler Trucks, Mercedes-Benz Vans and Daimler Buses.
2. "Totals" of revenues and EBIT include the data of Financial Services division.

 

Daimler AG's targets

Targets of Mercedes-Benz Cars * To sell 1.5 million and 1.6 million Mercedes-Benz brand cars in the world in 2014 and in 2015 consecutively, excluding the smart brand.
* To recapture the top position in global sales volume in the premium segment by 2020
* To launch over 13 new models by 2020
* 10 % Return on Sales
Sales volume forecasts for 2013 * Mercedes-Benz Cars division expects favorable sales of the CLA-class and E-class scheduled for launches in 2013 and the S-class to be launched in the second half of 2013 and anticipates that unit sales will renew records in 2013 and 2014 consecutively.
To strengthen operations in China * In order to achieve one of its mid-term targets, to sell the largest volume of premium cars in the world by 2020, it will develop and strengthen the sales network in China and increase the ratio of locally manufactured cars in sales.
Collaboration to develop FCV technologies * In order to launch a mass-produced FCV in 2017, Daimler will jointly develop fuel cell vehicle technologies with Renault-Nissan and Ford. Daimler will be responsible for development of a FCV system combining a fuel cell stack and a motor. It aims to curb the production cost by sharing components with them.


References: The OEMs' publications including press releases and annual reports, and media reports

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