European OEMs: Germans set sights on new sales record

H1 2013 results and 2013 full year outlooks reflect varying levels of success

2013/09/06

Summary

 This is a report on six major European OEM groups' business results in the first half of 2013, outlooks, targets and strategies as well as their major developments. Forecasts by LMC Automotive Ltd. on light vehicle production in Germany are also provided.

Outline: Six European OEMs results in H1 2013

Comparison of H1 sales of the 6 European OEM

 In H1 2013, the six European OEM groups of PSA, Renault, Fiat, VW, BMW and Daimler sold a total of 11,795,000 units, up 1.7% y/y. The three German OEMs of VW, BMW, Daimler, and Fiat exceeded their respective global sales in the same period a year earlier. Fiat expanded unit sales by 2.4% y/y, since favorable sales outside the EU balanced out doldrums in Europe. Renault dropped unit sales by 1.9% y/y due to stagnation in Europe and North & South America. Unit sales for PSA declined by 9.8% y/y affected by poor performances in Europe and Russia as well as the halted Completely Knocked Down (CKD) exports to Iran.


 As for the financial results, Daimler greatly increased both EBIT and net profit by 41.1% and 72.1% y/y respectively as a gain from EADS stake sale is included. On the other hand, Renault suffered a marked decline of 87.5% y/y in net income to EUR 97 million. PSA reported a sales decrease of 3.8% y/y, and its net loss was EUR 426 million, 47.9% less than H1 2012.


 Each OEM plans various strategies in order to improve production operations and cover poor sales in the European market, which shows no sign of recovery. They will enhance sales and production network to increase the ratio of sales outside the European market. Simultaneously, production network will be restructured and factory utilization rate will be improved to boost the production capacity in Europe.


 Regarding the outlooks, the three German OEMs respectively plan to achieve the highest unit sales in history in the 2013 full year. Renault keeps its original targets to exceed the 2012 unit sales and to turn its automotive business around toward profitability. Fiat also holds its original targets for the Group: up to EUR 92 billion in net revenue, EUR 4.5 billion in operating profit and EUR 1.5 billion in profit. Lastly, PSA aims to halve the EUR 3 billion deficits in operating cash flow of 2012.


Related Reports:
* VW boosts production in key markets in North America and China (Aug. 2013)
* PSA looks to break its dependence on Europe by expanding into emerging markets (Jul. 2013)
* FIAT lays out strategy to break-even in Europe by 2016 (Jun. 2013)
* Renault strives for positive operating margin for the automotive division (May 2013)
* 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)


 

Outlooks of the Six European OEMs

PSA * PSA aims at least to halve the EUR 3 billion deficits in operating cash flow of 2012. It plans to greatly reduce it in 2014 to balance it out in 2015.
Renault * Renault will keep its original targets for 2013: increasing unit sales, turning operating profit and free cash flow positive in the automobile business and achieving a cumulative EUR 2 billion free cash flow in the period from 2011 through 2013. The free cash flow was EUR 1,084 million in 2011 and EUR 597 million in 2012.
Fiat * The Fiat-Chrysler Group will keep its original targets: EUR 88 billion to 92 billion in net revenue, EUR 4 to 4.5 billion in operating profit and EUR 1.2 to 1.5 billion in profit.
VW * VW expects that unit sales and sales revenue in 2013 will exceed the previous year results. It aims to achieve the operating profit equivalent to the 2012 result although negatively affected by fiercer competition.
BMW * BMW anticipates a single digit year-over-year growth in passenger car sales and about the same operating profit as 2012. The automotive division aims to achieve EBIT/revenue ratio of 8-10% and expects Return on Capital Employed (RoCE) of 26%.
Daimler * Daimler expects a y/y increase in passenger car sales, rewriting its unit sales record. It predicts lower EBIT than in 2012.

Business results of the Six European OEMs

(Euros in millions / Global sales units in thousands)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012 2013 YoY
PSA Global Sales Volume 3,260 3,188 3,602 3,549 2,965 (16.5%) 1,619 1,460 (9.8%)
Sales 54,356 48,417 56,061 59,912 55,446 (7.5%) 28,809 27,710 (3.8%)
Operating Profit 550 (689) 1,796 1,315 (576) - (51) (65) 27.5%
Net Profit (363) (1,161) 1,134 588 (5,010) - (818) (426) (47.9%)
Renault Global Sales Volume 2,382 2,309 2,627 2,723 2,550 (6.4%) 1,328 1,303 (1.9%)
Sales 37,791 33,712 38,971 42,628 41,270 (3.2%) 20,622 20,441 (0.9%)
Operating Profit 326 (396) 1,099 1,091 729 (33.2%) 508 583 14.8%
Net Profit 599 (3,068) 3,490 2,139 1,735 (18.9%) 774 97 (87.5%)
Fiat Global Sales Volume 2,153 2,152 2,082 3,966 4,209 6.1% 2,121 2,172 2.4%
Sales - 32,684 35,880 59,559 83,957 41.0% 41,745 42,082 0.8%
Operating Profit - 736 1,112 2,392 3,814 59.4% 1,753 1,647 (6.0%)
Net Profit - (345) 222 1,651 1,411 (14.5%) 816 715 (12.4%)
VW Global Sales Volume 6,257 6,336 7,203 8,265 9,276 12.2% 4,552 4,798 5.4%
Sales 113,808 105,187 126,875 159,337 192,676 20.9% 95,378 98,687 3.5%
Operating Profit 6,333 1,855 7,141 11,271 11,510 2.1% 6,540 5,780 (11.6%)
Net Profit 4,688 911 7,226 15,799 21,884 38.5% 8,847 4,793 (45.8%)
BMW Global Sales Volume 1,436 1,286 1,461 1,669 1,845 10.5% 901 955 6.0%
Sales 53,197 50,681 60,477 68,821 76,848 11.7% 37,495 37,098 (1.1%)
Operating Profit 921 289 5,111 8,018 8,300 3.5% 4,401 4,107 (6.7%)
Net Profit 330 210 3,224 4,907 5,122 4.4% 2,629 2,704 2.9%
Daimler Global Sales Volume 2,073 1,551 1,895 2,111 2,198 4.1% 1,072 1,107 3.3%
Sales 98,469 78,924 97,761 106,540 114,297 7.3% 55,895 55,794 (0.2%)
Operating Profit 2,730 (1,513) 7,274 8,755 8,615 (1.6%) 4,366 6,159 41.1%
Net Profit 1,414 (2,644) 4,674 6,029 6,495 7.7% 2,990 5,147 72.1%
Total Global Sales Volume 17,561 16,822 18,871 22,283 23,043 3.4% 11,593 11,795 1.7%
Sales - 349,605 416,025 496,797 564,494 13.6% 279,944 281,812 0.7%
Operating Profit - 282 23,533 32,842 32,392 (1.4%) 17,517 18,211 4.0%
Net Profit - (6,097) 19,970 31,113 31,637 1.7% 15,238 13,030 (14.5%)

Sources: The OEMs' press releases and financial statements.
Note: Numbers in brackets "(  )" represent negative value.



PSA Peugeot Citroen S.A. decreased unit sales and continued operating loss

 PSA reduced global sales by 9.8% y/y in H1 2013 to 1.46 million units due to the halted CKD exports to Iran and sluggish demand in Europe. PSA sold 855,000 units in Europe, down 12.8% y/y; 278,000 units in China, up 33% y/y; and 146,000 units in Central and South America, up 19.7% y/y. Its ratio of sales outside the EU rose to 41% from 39% in H1 2012.


 As for the consolidated financial results in H1 2013, PSA reported a sales decrease of 3.8% y/y to EUR 27.71 billion, operating loss increased by 27.5% y/y to EUR 65 million and the net loss decreased by 47.9% y/y to EUR 426 million, affected by low demand in the ailing European market and the strike at its Aulnay plant. The automotive division decreased sales by 7.5% y/y to EUR 18.7 billion and reported the operating loss of EUR 650 million.

PSA's global sales by region

(Units in thousands)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012 2013 YoY
Europe 2,231 2,159 2,195 2,063 1,758 (14.8%) 980 855 (12.8%)
Russia 59 41 56 75 78 4.0% 41 32 (22.0%)
Latin America 263 232 294 326 283 (13.2%) 122 146 19.7%
China 179 272 376 404 442 9.4% 209 278 33.0%
Others 219 142 204 224 259 15.6% 124 149 20.2%
Total Cars 2,952 2,845 3,125 3,092 2,820 (8.8%) 1,476 1,460 (1.1%)
Total CKD 309 342 477 458 145 (68.3%) 143 - -
Global Sales 3,260 3,188 3,602 3,549 2,965 (16.5%) 1,619 1,460 (9.8%)

Source: PSA Full Year Results, Half Year Results
Numbers in brackets "(  )" represent negative value.

 

PSA's consolidated business results

(Euros in millions)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012 2013 YoY
Sales 54,356 48,417 56,061 59,912 55,446 (7.5%) 28,809 27,710 (3.8%)
of which automotive division 41,643 38,265 41,405 42,710 38,299 (10.3%) 20,203 18,695 (7.5%)
Recurring operating income 550 (689) 1,796 1,315 (576) - (51) (65) 27.5%
Of which automotive division (225) (1,257) 621 (92) (1,504) 16.3倍 (657) (510) (22.4%)
Net Profit (363) (1,161) 1,134 588 (5,010) - (818) (426) (47.9%)
Source: PSA Full Year Results、Half Year Results
1. PSA has parts supplier Faurecia and Financial Division other than their Automotive Division.
2. PSA has sold 75% of Gefco's stake on Dec 2012. Values for 2012 in this table do not include Gefco's results.
3. The values for 2011 excluding Gefco's are as follows: Sales: 58.59 billion Euros; Recurring operating income: 1.09 billion Euros; Net Profit: 588 million Euros.
4. Numbers in brackets "(  )" represent negative value.

 

PSA's targets and major developments

Europe * Cost reduction using common components through introduction of the EMP2 (Efficient Modular Platform). In Europe, introduction of EMP2-based models will start in 2013.
* Earnings recovery by shifting core models in each brand to higher segments and by clarifying/differentiating brand identities.
* To raise the ratio of outside the EU to 50% by 2015 and to 2/3 by 2020 from 33% in 2011, 38% in 2012 and 41% in H1 2013.
China * Sales of 500,000 units in 2013.
Dongfeng Peugeot-Citroen Automobile Ltd.(DPCA) * The third plant in Wuhan started operations in July, 2013. ・Sales launches of the Peugeot 301 and the Citroen C Elysee scheduled for H2 2013.
Changan PSA Automobile Co., Ltd.(CAPSA) * Production of the DS5 to start in H2 2013.・To establish the sales network by setting up a total of 84 dealers in 40 cities by the end of 2013.
Latin America * To invest EUR 240 million every year from 2012 through 2015 in Brazil in order to achieve the production capacity of 300,000 vehicles by 2015.

 

 



Renault S.A.S. dropped unit sales and eked out positive net gains

 For H1 2013, Renault S.A.S. reported worldwide sales of 1,303,000 units, down 1.9% y/y. Non-European markets were unable to compensate for the decline in the European market. By brand, only the Dacia brand increased sales to 211,000 units, up 15.9% y/y, while the Renault brand and the Renault-Samsung brand reported decreases of 4.6% to 1,062, 000 units and 12.1% to 29,000 units respectively.

 As for consolidated financial results in H1 2013, Renault reported 0.9%y/y drop in revenues to EUR 20.44 billion. The operating margin, on the other hand, increased by 14.8% y/y to EUR 583 million due to new model launches and its cost reduction efforts including the MONOZUKURI method. Net income decreased largely by 87.5% y/y to EUR 97 million mainly due to a provision to cover the discontinued Iranian sales, but resulted in surplus thanks to the equity in net income of its affiliate, Nissan. Excluding the equities in net income of its affiliates, Renault's net income in H1 2013 plunged into the red of EUR 652 million from the surplus of EUR 155 million in H1 2012.

Renault's global sales volume by brand and region

(Units in thousands)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012 2013 YoY
Renault 2,019 1,861 2,116 2,261 2,125 (6.0%) 1,113 1,062 (4.6%)
Dacia 258 311 350 343 360 4.9% 182 211 15.9%
Renault-Samsung 104 136 162 118 66 (44.1%) 33 29 (12.1%)
Worldwide 2,382 2,309 2,627 2,723 2,550 (6.4%) 1,328 1,303 (1.9%)
Europe 1,508 1,530 1,644 1,550 1,271 (18.0%) 708 657 (7.2%)
Eurasia 130 80 106 171 208 21.6% 104 114 9.6%
Americas 255 228 317 397 451 13.6% 215 210 (2.3%)
Euromed-Africa 489 471 560 346 361 4.3% 184 197 7.1%
Asia-Pacific 259 260 0.4% 117 125 6.8%
Source: Renault earnings reports
Notes: 1. Figures excluding the Russian AvtoVAZ Lada brand
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 2012.4
4. Numbers in brackets "(  )" represent negative value.

 

Renault's consolidated business results

(Euros in millions)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan-Jun
2012 2013 YoY
Revenues 37,791 33,712 38,971 42,628 41,270 (3.2%) 20,622 20,441 (0.9%)
Operating margin 326 (396) 1,099 1,091 729 (33.2%) 508 583 14.8%
Net Income 599 (3,068) 3,490 2,139 1,735 0.0% 774 97 (87.5%)
Source:Renault earnings report
Note:1. Values for 2012, released in July 2013 are changed from its original values to reflect the application of IFRS11 and revised IAS 19 standards. The original values are as follows: Revenues: 20,935, Operating margin: 482, Net Income: 786.
2. Numbers in brackets "(  )" represent negative value.

 

Renault's strategies for 2013

Strategies for markets outside the EU * Strategies for markets outside the EU ・To raise the sales ratio outside the EU
* To plan growth in Russia, Brazil and India
* To implement the turnaround plan for Renault Samsung Motors, Korea
* To improve sales and local production operations in China
Strategies for the EU markets * To raise the market share by launching new models
* To increase profits by cutting costs and improving efficiency
* To achieve highly competitive production through corporate downsizing and restructuring in production operations

 

 



Fiat-Chrysler Group increased unit sales in H1 2013, maintains its original full year targets

 Fiat-Chrysler increased worldwide sales to 2,172,000 units, up 2.4% y/y. By region, the Group expanded sales in North America to 1,082,000 units, up 1.3% y/y, thanks to the Dodge Dart and the Ram brand models. In South America, sales increased by 10.7% y/y to 488,000 units. The Siena and the Grand Siena contributed to the growth. Other contributing factors include the extension of the reduced rates and exemption of Industrial Products Tax (IPI: Imposto sobre Produtos Industrializados) to vehicles toward the end of 2013. Conversely, in Europe and other regions, stagnant market conditions affected sales and resulted in 5.2% y/y drop to 532,000 units.


 Fiat-Chrysler H1 2013 net revenue was EUR 42.08 billion, up 0.8% y/y, posting results almost the same as or slightly higher than a year earlier in respective markets outside the EU. Operating profit, however, dropped by 6.0% y/y to EUR 1.65 billion and net profit fell by 12.4% y/y to EUR 715 million.


 As for the 2013 full year, Fiat-Chrysler Group will keep its original targets: net revenues of EUR 88 to 92 billion, operating profit of EUR 4 to 4.5 billion and net profit of EUR 1.2 to 1.5 billion.

Fiat-Chrysler's global unit sales by region

(Unit in thousands)
2011 2012 YoY
2011-2012
2013
(Plan)
Jan-Jun.
2012 2013 YoY
Europe/Others 1,180 1,012 (14.2%) ~1,000 561 532 (5.2%)
North America 1,783 2,115 18.6% ~2,200 1,068 1,082 1.3%
South America 929 979 5.4% ~1,000 441 488 10.7%
Asia/Pacific 74 103 39.2% ~200 51 70 37.3%
Total 3,966 4,209 6.1% ~4,400 2,121 2,172 2.4%
Source: Fiat Annual Reports, Half Year Reports
Note: 1. 2011 unit sales data include Chrysler's sales from January 2011.
2. Numbers in brackets "(  )" represent negative value.

 

Fiat-Chrysler's consolidated business results

(Euros in millions)
2009 2010 2011 2012 YoY 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% (1.8%pt) 0.5%pt -
Profit/loss for the year (345) 222 1,006 1,651 (621) 1,411 - (14.5%) 1,200~1,500

 

Jan.-Jun.
(excl. Chrysler) (incl. Chrysler)
2012 2013 YoY 2012 2013 YoY
Net revenues 17,925 17,961 0.2% 41,745 42,082 0.8%
Trading profit 128 150 17.2% 1,753 1,647 (6.0%)
Trading margin 0.7% 0.8% 0.1%pt 4.2% 3.9% (0.3%pt)
Profit/loss for the period (313) (293) (6.4%) 816 715 (12.4%)
Source:Fiat Annual Reports, Half Year Reports
Note: 1. Numbers in brackets "(  )" represent negative value.
2. Chrysler's performances after June 2011 are included in the data

 

Fiat-Chrysler Group's targets and policies

Brand policies * Fiat: To position the Fiat 500 and the Panda as its flagship models and future models will be derived from these two
* Maserati: To improve the lineup in order to provide a wide price range of models from EUR 50,000 to 150,000
* Alfa Romeo: While focusing on the North American and European markets, it will also concentrate on the growth-expected Asian and Oceania markets. The brand will have a wider price range to compete with other premium brands.
* Jeep: To review the brand and launch products tailored to international markets including India and Europe
Market policies * Europe: To improve plant utilization ratio by various efforts including allocating 15% of the production capacity in Europe to models targeting global markets and to manufacture two million vehicles in 2016 (1.25 million vehicles in 2012)
* North America: To launch a total of 50 new or upgraded models by 2016
* South America: To improve the product lineup and concurrently keep high earnings ratios
* Asia and Oceania: To improve dealerships in China and India
Additional acquisition of Chrysler stocks  Fiat plans to acquire the remaining 41.5% of Chrysler stocks from the UAW Retiree Medical Benefits Trust (VEBA: a voluntary employees' beneficiary association) in order to merge Chrysler completely and increase competitiveness. Acquisition of the remaining stocks by Fiat was rejected at the end of July 2013 and reportedly, the business merger might be delayed.

 

 



VW Group aims to consecutively achieve new records in unit sales and revenue in 2013

 In H1 2013, the VW Group achieved another new sales record of 4,798,000 units, up 5.4% y/y, thanks to strong sales in China. The VW brand and the Audi brand respectively increased sales by 4.4% and 6/4% y/y. However, the Skoda brand dropped sales by 5.7% y/y.


 In H1 2013, the VW Group achieved EUR 98.69 billion in sales revenue, up 3.5% y/y, but decreased operating profit and profit after tax by 11.6% y/y to EUR 5.78 billion and by 45.8% y/y to EUR 4.79 billion respectively. Stagnation in the European market negatively affected the passenger car division and resulted in the decreased operating profit, according to the OEM.


 The Group expects the 2013 full year unit sales and revenue to exceed the 2012 results and the operating profit to stay at the same level as 2012 although they are subject to fiercer competition.

VW's global sales by brand and region

(Units in thousands)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012
Jan.-Jun.
2013
YoY
Jan.-Jun
VW Brand 3,668 3,954 4,503 5,091 5,738 12.7% 2,787 2,911 4.4%
Audi Brand 1,003 950 1,092 1,304 1,457 11.7% 733 780 6.4%
Skoda Brand 675 684 763 879 939 6.8% 493 465 (5.7%)
SEAT Brand 368 337 340 350 321 (8.3%) 163 182 11.7%
Other Brands 10 6 6 8 70 775.0% 5 87 1640.0%
Commercial Vehicles 502 362 436 529 550 4.0% 270 271 0.4%
Scania 31 43 64 80 67 (16.3%) 32 38 18.8%
MAN - - - 25 134 436.0% 68 65 (4.4%)
Global Sales 6,257 6,336 7,203 8,265 9,276 12.2% 4,552 4,798 5.4%
Western Europe 2,989 2,918 2,903 3,168 3,092 (2.4%) 1,647 1,586 (3.7%)
Central/Eastern Europe 560 385 430 563 672 19.4% 336 326 (3.0%)
North America 503 468 550 668 843 26.2% 391 439 12.3%
South America 803 826 908 963 1,082 12.4% 505 493 (2.4%)
Asia/Pacific 148 150 221 316 365 15.5% 181 185 2.2%
China 1,024 1,401 1,925 2,260 2,815 24.6% 1,302 1,544 18.6%
Other Regions 228 189 268 327 407 24.5% 190 225 18.4%
Sources: VW Annual Reports, Half year report 2012, 2013
1. "Other brands" are Bentley, Lamborghini, Bugatti and Porsche. "Commercial vehicles" are all VW brand, excluding MAN and Scania.
2. Includes MAN's value effective November 9, 2011.
3. Includes Porsche's value from August 2012 in "Other Brands".
4. Numbers in brackets "(  )" represent negative value.

 

VW Group's consolidated business results

(Euros in millions)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012
Jan.-Jun.
2013
YoY
Jan.-Jun
Sales Revenue 113,808 105,187 126,875 159,337 192,676 20.9% 95,378 98,687 3.5%
Operating Profit 6,333 1,855 7,141 11,271 11,510 2.1% 6,540 5,780 (11.6%)
Profit before tax 6,608 1,261 8,994 18,926 25,492 34.7% 10,090 6,620 (34.4%)
Profit after tax 4,688 911 7,226 15,799 21,884 38.5% 8,847 4,793 (45.8%)
Sources:VW Annual Reports (2012) Q1_2013, Half-Yearly Financial Report 2013
(Notes) 1. Financial Service department is included in "Revenue" and "Profit"
2. VW has consolidated Porsche since August 1, 2012 and MAN SE since November 2011.
3. Profit before tax for Jan.-Jun. 2012 includes remeasurement of Porsche options
4. Numbers in brackets "(  )" represent negative value.

 

The VW Group's outlooks and plans for 2013

2013 Plans * VW will invest a total of EUR 50.2 billion in the automotive business over the next three years of 2013 to 2015. It will make a facility investment of EUR 39.2 billion, 60% of which will be put solely in Germany. In these three years, a total of EUR 14.5 billion will be invested in Audi production in Mexico, Porsche plant expansion and other projects.
* Under the Modular Platform Strategy, VW will pursue further cost reduction and each brand will launch various new models.
* Aside from the above mentioned EUR 50.2 billion, VW in China will invest a total of EUR 9.8 billion out of respective JVs' own funds, in new model development and facility improvement.

 

 



BMW expects new model launches in 2013 to break its unit sales record

 In H1 2013, the BMW Group increased worldwide sales to 954,521 vehicles, up 6.0% y/y. Favorable sales of the BMW X1, 3-, 5-, 6- and 7-Series contributed to the unit sales growth, according to the Group. By brand, the BMW sold 804,248 units, up 7.7% y/y; the MINI sold 148,798, down 2.0% y/y; and the Rolls-Royce sold 1,475 units, down 7.8% y/y. By region, sales in Germany decreased to 133,454 units, down 6.1% y/y, but in the U.K. sales grew 11.3% y/y to 94,439 units and 173,156 units were sold in the U.S, up 9.1% y/y. In China 183,208 units were sold, up 15.0% y/y.


 In H1 2013, the Group revenues dropped 1.1% y/y to EUR 37.1 billion. This is because the increased leasing contracts and competition. EBIT decreased by 6.7% y/y to EUR 4.11 billion due to investment in new technologies and the stagnant European automobile market. Pretax profit was EUR 4.04 billion, almost the same as the previous year with a slight drop of 0.5% y/y. Net profit increased 2.9% y/y to EUR 2.70 billion.

BMW's global sales by brand and region

(Units)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012 2013 YoY
2012-2013
BMW 1,202,239 1,068,770 1,224,280 1,380,384 1,540,085 11.6% 747,064 804,248 7.7%
MINI 232,425 216,538 234,175 285,060 301,526 5.8% 151,875 148,798 (2.0%)
Rolls-Royce 1,212 1,002 2,711 3,538 3,575 1.0% 1,600 1,475 (7.8%)
Total 1,435,876 1,286,310 1,461,166 1,668,982 1,845,186 10.6% 900,539 954,521 6.0%
Germany 280,900 267,500 267,200 285,300 287,400 0.7% 142,158 133,454 (6.1%)
United Kingdom 151,500 137,100 154,800 167,500 174,500 4.2% 84,870 94,439 11.3%
Rest of Europe 432,200 357,300 369,200 405,600 403,500 (0.5%) 210,310 208,816 (0.7%)
Americas 355,400 294,200 329,700 380,300 425,300 11.8% 195,020 213,867 9.7%
of which USA 303,600 242,100 266,600 306,300 348,500 11.6% 158,691 173,156 9.1%
Asia 165,700 183,200 286,300 375,500 493,400 31.4% 238,731 272,943 14.3%
Of which China 65,900 90,600 183,328 233,630 327,300 40.1% 159,358 183,208 15.0%
Others 50,200 47,000 54,000 54,800 61,100 11.5% 29,450 31,002 5.3%

Sources:Annual Reports 、Half Year Report 2012, 2013
Notes: Numbers in brackets "(  )" represent negative value.

 

BMW's consolidates results

(Euros in millions)
2008 2009 2010 2011 2012 YoY
2011-2012
Jan.-Jun.
2012 2013 YoY
Production Volume (Unit) 1,439,918 1,258,417 1,461,253 1,738,160 1,861,826 7.1% 912,653 1,002,094 9.8%
Revenues 53,197 50,681 60,477 68,821 76,848 11.7% 37,495 37,098 (1.1%)
EBIT 921 289 5,111 8,018 8,300 3.5% 4,401 4,107 (6.7%)
Pretax profit 351 413 4,836 7,383 7,819 5.9% 4,056 4,035 (0.5%)
Net Profit 330 210 3,224 4,907 5,122 4.4% 2,629 2,704 2.9%

Sources:Annual Reports, Half Year Report 2012, 2013
Notes: Numbers in brackets "(  )" represent negative value.

 

BMW Group's targets and developments

Targets * To launch 25 models including 10 all-new models in 2013 and 2014
* To triple the model portfolios by 2020 compared to 2005
* To launch the BMW Active Tourer, its first FWD, in 2014
* To mount 3-/4-cylinder gasoline/diesel engine modules on MINI and BMW models in order to reduce costs through economies of scale.
New model launches in 2013 * To release a total of 14 models including the BMW 3-, 4-, 5-series, the MINI Paceman and the Rolls-Royce Wraith.

 

 



Daimler AG posted record unit sales in H1 2013 and aims to achieve the record in full year

 Daimler AG's passenger car division, Mercedes-Benz Cars, sold 746,222 units, up 5.3% y/y, in H1 2013. By region, sales increased in Western Europe by 0.7% y/y to 327,938 units; in the U.S. by 7.8% y/y to 144,474 units; in Asia by 5.8% y/y to 171,845 units; and in other markets by 17.7% y/y to 101,965 units. In Germany, however, sales dropped 3.2% y/y to 140,904 units. New model launches including the A-Class and the CLA-Class have contributed to the growth, according to the OEM.


 Daimler's consolidated revenue in H1 2013 dropped slightly by 0.2% y/y to EUR 55.79 billion, EBIT was up 41.1% y/y to EUR 6.16 billion, and net profit also increased by 72.1% to EUR 5.15 billion. EBIT and net profit were boosted by a gain of EUR 3.19 billion resulted from the revaluation and the sale of the shares of European Aeronautic Defence and Space Company (EADS) in April 2013. H1 2013 EBIT excluding the gain on EADS stake sale was EUR 2.97 billion.


 The OEM expects to greatly improve its earnings in H2 compared to H1 2013 by the introduction of the new S-Class and other models, along with cost reduction through streamlining operations.

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

(Units)
2008 2009 2010 2011 2012 YoY
2011-
2012
Jan.-Jun.
2012 2013 YoY
Western Europe 733,233 623,489 635,798 625,168 631,423 1.0% 325,621 327,938 0.7%
of which Germany 332,472 297,756 292,895 290,658 289,923 (0.3%) 145,579 140,904 (3.2%)
of which other countries in Western Europe 400,761 325,733 342,903 334,510 341,500 2.1% 180,042 187,034 3.9%
US 251,160 202,955 220,454 250,355 299,741 19.7% 134,056 144,474 7.8%
Asia 144,141 138,942 261,568 335,449 338,286 0.8% 162,402 171,845 5.8%
of which China 48,620 67,451 159,974 223,059 208,494 (6.5%) 102,204 106,455 4.2%
Others 144,479 128,519 159,007 170,444 182,119 6.8% 86,608 101,965 17.7%
Total 1,273,013 1,093,905 1,276,827 1,381,416 1,451,569 5.1% 708,687 746,222 5.3%

Sources :Daimler Annual Reports Half Year Report 2012, 2013
Note: Numbers in brackets "(  )" represent negative value.

 

Daimler AG's consolidated results

(Euros in millions)
2008 2009 2010 2011 2012 YoY
2011-
2012
Jan.-Jun.
2012 2013 YoY
Production Volume (Units in thousands) 2,150 1,456 1,941 2,137 2,195 2.7% 1,100 1,177 7.0%
Sales volume
(Units in
thousands)
Passenger Cars 1,273 1,094 1,277 1,381 1,452 5.1% 709 746 5.2%
Commercial Vehicles 800 457 619 730 746 2.2% 364 361 (0.8%)
Total 2,073 1,551 1,895 2,111 2,198 4.1% 1,072 1,107 3.3%
Revenues Passenger Cars 47,772 41,318 53,426 57,410 61,660 7.4% 30,301 30,434 0.4%
Commercial Vehicles 42,859 28,813 36,394 42,348 44,388 4.8% 21,766 21,094 (3.1%)
Total 98,469 78,924 97,761 106,540 114,297 7.3% 55,895 55,794 (0.2%)
EBIT Passenger Cars 2,117 (500) 4,656 5,192 4,389 (15.5%) 2,567 1,501 (41.5%)
Commercial Vehicles 368 (792) 1,998 2,873 2,023 (29.6%) 1,103 831 (24.7%)
Total 2,730 (1,513) 7,274 8,755 8,615 (1.6%) 4,366 6,159 41.1%
Net profit 1,414 (2,644) 4,674 6,029 6,495 7.7% 2,990 5,147 72.1%
Sources: Daimler Annual Reports, Half Year Report 2012, 2013
Notes: 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.
3. EUR 3.19 billion resulted from the revaluation and the sale of the shares of EADS in April 2013 is included in the EBIT for H1 2013
4. Numbers in brackets "(  )" represent negative value.

 

Daimler Group's outlooks for 2013

2013 Outlooks * Daimler predicts that passenger car sales will achieve a new record in 2013.
* Mercedes-Benz Cars division will increase unit sales by launches of the new A-class and B-class compact models and SUV as well as its models including the CLA-class, new E-class and the flagship model: the S-class.
* Mercedes-Benz Vans division will increase unit sales thanks to the new Citan city van and the new Sprinter. In Russia, it will introduce the Sprinter Classic.
* Daimler Trucks division will increase unit sales slightly in 2013 over 2012. Expansion of shares in major markets expected.
* Daimler Buses division expects that the new Citaro and the Setra 500 will help increase unit sales and to maintain the highest shares in major markets.
* The Group expects revenues to grow in emerging countries and North America and as a result, 2013 revenues should exceed the previous year result. EBIT should post a year-over-year drop in 2013 full year because Daimler will have no equity method investment gain as the EADS stake was sold.

 

 



Production Forecast by LMC Automotive: German light vehicle production decrease slightly by 2016

(LMC Automotive、July 2013)

German light vehicle production forecast According to LMC Automotive's forecast in July 2013, German light vehicle production in 2013 is expected to decrease by 4.2% to 5.37 million units. By 2016, the country's production is expected to decrease by 2.3% compared to 2013; Mercedes-Benz decreases by 1.7%, Opel by 1.6% and Audi by 1.2%. Conversely, Volkswagen's production increases by 1.6% and BMW by 0.7%.

 Regarding the German passenger car assembly, LMC Automotive comments "capacity utilization remains comparatively strong at over 80%."

 However, the company also indicates, "demand in Europe will recover, but capacity utilization [in Europe] will still be unsustainably low for some OEMs. Further 'right-sizing' is expected. Those underutilized OEMs without strong alliance partners are the most vulnerable as they will have less time make the transition."

 

German production forecast through 2016 (LMC Automotive)

GLOBAL MAKE 2010 2011 2012 2013 2014 2015 2016
Grand Total 5,611,893 6,024,825 5,612,839 5,374,937 5,095,369 5,233,049 5,253,872
BMW 941,304 1,005,259 1,044,008 1,073,157 1,077,589 1,097,738 1,108,232
Ford 741,803 731,114 692,345 603,871 578,618 582,191 575,134
Mercedes-Benz 1,108,252 1,155,421 1,089,386 1,054,277 964,842 916,082 965,942
Multicar 1,273 1,322 1,381 1,372 1,393 1,372 1,362
Opel 464,445 442,040 387,525 313,918 262,416 243,651 228,628
Volkswagen
Group
Audi 875,468 1,017,155 814,854 821,634 719,390 754,963 757,976
Porsche 89,144 125,005 149,889 150,873 174,121 172,738 176,853
Volkswagen 1,390,204 1,547,509 1,433,451 1,355,835 1,317,000 1,464,314 1,439,745
Volkswagen Group Total 2,354,816 2,689,669 2,398,194 2,328,342 2,210,511 2,392,015 2,374,574
Source: LMC Automotive, Global Automotive Production Forecast, July 2013
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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