Fiat's passenger car business aims for 2011 global sales of 2.2 M to 2.3 M units, up by 5 - 10%
Fiat to launch Chrysler vehicle-based new model to expand sales in Europe
Fiat Group completed a demerger of passenger car businesses from non-passenger car businesses in January 2011. These two businesses are Fiat SpA which includes passenger car division and passenger-car related parts divisions, and Fiat Industrial SpA which includes the heavy commercial vehicle division Iveco and capital goods division. Fiat SpA will deepen integration of Chrysler by focusing on passenger cars to realize flexible and competitive operations.
Fiat Group Automobile (FGA), the passenger car/light commercial vehicle division had 2010 global sales of 2.08 million units, down by 3.2% over the previous year. Its market share in Europe fell due to a phase-out of each country's government eco-car incentive program. Fiat, however, kept the leading position with a share of 22.8% in Brazil, which is the second most important market for Fiat after Europe.
Fiat set its 2011 sales target at 2.2 million to 2.3 million units, up by 5 to 10% from the 2011 target. Fiat will launch a multiple number of new model vehicles in the latter half of 2011 to expand sales. They will be Dodge vehicle-based SUVs to be sold under the Fiat brand, and large and medium size sedans and mini vans based on Chrysler brand vehicles to be launched under the Lancia brand.
In 2010, the automobiles division (FGA, Ferrari and Maserati) posted sales of 30.1 billion Euros, up by 6.3%, and trading profit of 930 million Euros, up by 30%. Drop in sales of passenger cars was covered by booming sales of light commercial vehicles and luxury brand cars, and favorable exchange fluctuations.
Fiat Group Automobiles' global sales by brand and region
|Light Commercial Vehicle||247||271||285||323||388||409||307||390|
|(of which) Italy||671||704||688||808||855||718||722||626|
|(of which) Europe excluding Italy||508||489||412||481||502||520||583||540|
|Rest of the world||198||215||193||226||264||249||97||155|
|Source: Fiat Q4 & FY2010 Results Review, Presentation for investors 2011.1.27|
|NOTES: 1.||Ferrari's 2010 results which are not included in those of Fiat Group Automobiles (FGA) are as follows: sales volume expanded to 6,573 units (up by 5.4% over the previous year) in emerging markets including China, revenues were up by 7.9% and trading profit was up by 15.8% to 3.03 million Euros.|
|2.||Maserati's 2010 results which are not included in those of FGA are as follows: sales volume was up by 26.4% over the previous year to 5,675 units, revenues were up by 30.8% and trading profit was up by 13 million Euros to 24 million Euros.|
|3.||The 2010 global sales volume includes 13,500 vehicles of Chrysler Group in Europe.|
European market: Fiat loses share by 1.1 point to 7.5% in 2010
The phase-out of eco-incentives by the governments of many countries depressed FGA (passenger car and light commercial vehicle division)'s 2010 sales by 10.7% to 1.166 million units, impacting demand for both smaller and CNG/LPG vehicles despite them being FGA's strong sellers. Fiat lost market share in Europe by 1.1 point to 7.5%.
Expecting demand to stay slumping from the latter half of 2010 to the first half of 2011, it has shelved the launch of new model vehicles. Fiat will launch a multiple number of new model vehicles in the latter half of 2011 to expand sales in Europe. In June 2011, it will launch the Fiat Freemont, a Dodge brand vehicle-based SUV. In the latter half of 2011, Fiat will launch the Lancia brand new Delta and new Ypsilon. It will also introduce four new models of large and medium sedans, a minivan and a convertible car, which will be based on Chrysler brand vehicles.
FGA's key new and fully remodeled vehicles launched from 2010 to 2012
|Fiat||*Freemont||Jun. 2011||The Freemont touched up for Europe is a three-row seven-seat SUV based on the Dodge Journey. This is Fiat's first product from its alliance with Chrysler. It is produced at the Chrysler's Toluca Plant in Mexico.|
|New Panda||Beginning of 2012||The Panda is Fiat's top-selling minicar model in Europe. The current Panda is produced at the Tichy Plant in Poland. The new Panda will be produced at the Pomigliano d'Arco Plant in Italy starting in November 2011.|
|Entry-level B||2012||The Entry-level B is a small car. It will also be launched in North America.|
|5/7-seater MPV||2012||Fiat will launch a five or seven-seat MPV as a successor model of the Fiat Idea. It plans to produce the model at the Kragujevac Plant in Serbia, which currently produces the Punto. Fiat will launch the 7-seat version in North America.|
|C-Sedan||2012||The C-Sedan is a compact car. It will also be launched in North America.|
|Lancia/ Chrysler||New Delta||Mar. 2011||The new Delta is a C-segment 5-door hatchback. It is a compact flagship model of Lancia. It has been sold in key European markets since March 2011. In England and Ireland where the Lancia brand vehicles are not sold, the new Delta will be launched under the Chrysler brand in June.|
|New Ypsilon||Jun. 2011||The new Ypsilon is a five-door hatchback with an overall length of 3.84 m, a mini flagship model of Lancia. It will be launched in key European countries in June. In England and Ireland where the Lancia brand vehicles are not sold, the new Ypsilon will make a debut under the Chrysler brand in September.|
|*New Thema||Oct. 2011||The Chrysler 300 will be supplied to Fiat and sold as the Lancia Thema under the OEM deal. It is a large high-end sedan, which is equipped with a 3.6-L V6 gasoline engine and 8-speed AT or 3.0-L V6 diesel engine and 5-speed AT.|
|*New Voyager||Q3 2011||The Chrysler Town & Country will be supplied to Fiat and sold as the Lancia Voyager under the OEM deal. It is a minivan with an overall length of 5.14 m, which is equipped with a 2.8-L diesel engine or 3.6-L gasoline engine.|
|*Flavia/Flavia Cabrio Concept||2011-2012||The Chrysler 200 (D-segment sedan) and the 200 Convertible will be supplied to Fiat and sold as the Flavia and Flavia Cabrio Concept under the OEM deal.|
|Alfa Romeo||Giulietta||May 2010||The Giulietta is a sporty five-door hatchback. It is a successor model of the 147. It is the Fiat's first model that employs the C-platform common to the Chrysler vehicles. Fiat plans to launch the Giulietta in North America as well.|
|Giulia Sedan||Latter half of 2012- Beginning of 2013||The Giulia Sedan is a medium size sedan. It is a successor model of the 159 sedan. Fiat plans to launch the model in North America as well.|
|Giulia SW||The Giulia SW is a station wagon. It is a successor model of the 159 sport wagon. Fiat plans to launch the model in North America as well.|
|*Alfa C-SUV||2012||The Alfa C-SUV is a small SUV based on the successor of the Jeep Compass/Patriot. It will be produced at the Mirafiori Plant in Italy. Fiat plans to launch the model in North America as well.|
|Jeep||*New Grand Cherokee||Beginning of 2011||The new Grand Cherokee is a medium size high-end SUV. It has been sold in the US since May 2010. It was planned to launch the model in Europe in 2010, but the plan was postponed to the beginning of 2011.|
|Fiat Professional||New Doblo Cargo||2010||The new Doblo Cargo is a small van. The boot has a capacity of 4.2 m3, slightly larger than the old model. The maximum load is 1,000 kg.|
|New Panda Van||2011||The new Panda Van is a van derived from a passenger car.|
|New Doblo Dropside||2011||The new Doblo Dropside is a light truck.|
|*1t Pickup||2012||The 1-t pick up will be produced by Chrysler.|
Source: Fiat Press Release 2011.2.14/2011.1.24, Fiat Investor Day 2010 Presentation, and others NOTE: The asterisk (*) marked models are based on Chrysler vehicles.
Fiat to improve operating rate of plants in Italy
Fiat will improve the operating rate of plants in Italy as part of the program to expand profitability. In 2010, its plants in Europe except Italy had operating rate of 78%, while those in Italy stayed at an operating rate of 37%. According to the agreement with the Union, Fiat will revise work conditions to cut production costs and expand production in Italy.
Fiat to take actions to improve operation rate of assembling plants in Italy
|Mirafiori plant (Turin City)||Both Fiat and Union in December 2010 agreed to the innovation plan for the Mirafiori Plant. Fiat will produce the C-segment SUV based on the new platform jointly developed with Chrysler, and will sell it under both brands of Jeep and Alfa Romeo in the global markets including the US. The plant will have an annual production capacity of 280K units at maximum.|
|Pomigliano d'Arco plant (Naples City)||The new labor-management agreement for the Pomigliano d'Arco Plant became effective in January 2011. The union agreed to change the rotating shift system to three shifts and a six days-week. From November 2011, the plant will produce the next Panda (the current Panda is produced at the Polish Plant). Fiat will spend 800 million Euros to increase production of the plant to 270 K-300 K units (the plant produced 30 K Alfa Romeo brand vehicles in 2010).|
|To transfer production of the next Panda to the Pomigliano Plant is part of Fabbrica Italia by Marchionne CEO of Fiat (the plan to increase passenger car production in Italy from 650K units in 2010 to 1.4 million units in 2014). To ensure higher profitability in production in Italy, Fiat will increase the shift schedule from two shifts per day/235 days per annum to three shifts per day/280 days per annum to improve the productivity by 70%.|
|Grugliasco plant (Piemonte Region)||In February 2011, Fiat unveiled the plan to resume the Grugliasco Plant in Piemonte Region in the Northwest part of Italy. The plant, which was bought from Corrozzeria Bertone in 2009, has suspended operations for several years. Fiat will invest 500 million Euros in the plant to tool up its facilities in the latter half of 2011 to produce an E-segment of Maserati vehicles for global markets starting in December 2012. Fiat will continue production at the Maserati Modena Plant.|
|Source: Fiat Press Release 2011.2.15, Presentation for investors 2011.1.27, Automotive News Europe 2011.3.26|
|NOTES: 1.||Fiat will close the Termini Imerese Plant in Sicily in 2011.|
|2.||The 2010 operation rates of Fiat's passenger car plants (on a three shifts per day/280 days per annum basis) are 37% and 78%, respectively in Italy (Cassino, Melfi, Mirafiori, Pomigliano d'Arco, and Termini Imerese) and in Europe except Italy (Tychy in Poland, Kragujevac in Serbia and Bursa in Turkey). They were 40% and 81% last year.|
Brazil: the plant with an annual capacity of 200 K units to start running
In Brazil, FGA sold 761 K passenger cars and light commercial vehicles in 2010, and took a 22.8% market share, ranking first for nine consecutive years. The Novo Uno, a compact car launched in May 2010, was in great demand and sold 110 K units by the end of 2010.
The Brazilian passenger car market was up by 6.9% to 2.7 million units in 2010. The light commercial vehicle market continued to grow, up by 29.5% to 600 K units. Fiat started building a plant with an annual capacity of 200 K units at the end of 2010. It is planned to start operations of the plant in 2013 to produce vehicles which will be developed in Brazil.
Marchionne CEO of Fiat expects that its sales scale in the Brazilian market will reach at least one million units per year in 2014, and sees the market will drive the expansion of the Group's business (March 2011).
Fiat to build a new plant with an annual capacity of 200 K units in Brazil, while expanding the annual capacity of existing plants by 150 K units
|Production capabilities||Fiat plans to invest ten billion Real in Brazil between 2011 and 2014. It spent three billion Real to start building a new plant in Pernambuco at the end of 2010. The new plant will produce vehicles developed in Brazil from 2013 for the domestic market and other South American countries. It will have an annual production capacity of 200 K units in 2014. The plant will have an R&D center and an employee training center.|
|The left seven billion Real will be used for expanding the annual production capacity of the existing Betim Plant by 150 K units to 950 K units, and developing new products and technologies.|
|Introduction of new model vehicles||Fiat launched the Novo Uno in Brazil in May 2010. The Novo Uno is a three-door or five-door hatchback created by reducing equipment from the Fiat Panda. It enjoyed brisk sales and sold 110 K units by the end of 2010.|
Source: Fiat Presentation for investors 2011.3.29, Fiat Press Release 2010.12.28
Fiat to increase stake in Chrysler to 30% and to promote collaboration on powertrains
As a result of deepened integration with Chrysler, Fiat successfully satisfied the conditions to increase the stake as required by the US Government. Fiat raised its stake in Chrysler from 20% to 25% in January 2011, and to 30% in April of the same year. The Italian company aims to take a 51% stake in the Detroit company by the end of 2011.
Fiat and Chrysler have deepened integration through model planning, sharing platforms and so on. They are also advancing collaboration on powertrains including engines, transmissions, etc. Fiat will provide Chrysler with the MultiAir, an electro-hydraulic variable valve actuation technology controlling air intake of engine, and the Dual Dry Clutch Transmission, while Chrysler will provide Fiat with technologies for off-road and electric vehicles.
Fiat to raise its stake in Chrysler to 30%
|In January 2011, Fiat raised its stake in Chrysler from 20% to 25%. This was realized because Fiat attained one of the business objectives as provided in the partnership agreement, which is one of the conditions for raising its stake. This objective is to produce Fiat's FIRE engines at the Chrysler's Dundee Plant in Michigan. The plant produces 1.4-L inline four-cylinder engine which incorporates the MultiAir technology, which will be mounted on the Fiat 500 for the US.|
|In April 2011, Fiat raised its stake in Chrysler from 25% to 30%. This raise was approved by the US government because it becomes certain to attain the sales goal for Chrysler outside North America as set as a condition by the government. Since the new company was established in June 2009, sales outside North America have aggregated to1.5 billion dollars. Besides, more than 90% of Fiat dealers in South America and Europe agreed to sell Chrysler vehicles.|
|Fiat aims to take a 51% stake in Chrysler by the end of 2011.|
Source: Fiat Press Release 2011.4.12, Automotive News Europe 2011.4.5, Nihon Keizai Newspaper 2011.4.13
Fiat and Chrysler to collaborate on powertrains as well
|Fiat → Chrysler||* Fiat's MultiAir Technology (electro-hydraulic control is used for the variable valve mechanism of the engine) will be used for Chrysler's World Gas Engine and V6 Pentastar engine. * Fiat's Dual Dry Clutch Transmission will be employed for Chrysler's C and D segment vehicles. * Fiat's CNG technology, the top class in Europe, will be used for the US natural gas vehicle market.|
|Fiat ⇔ Chrysler||* The technologies for diesel engines, AWDs and transmissions Fiat's high pressure common rail technology for the Diesel MultiJet II engine Chrysler's technology for off-road vehicles|
|Chrysler → Fiat||* Chrysler's hybrid and electric vehicle technologies|
Source: Fiat Presentation for investors 2011.3.29
New plants in Russia and China to have annual production capacities of 300 K and 250 K units respectively
Fiat is also working on expanding sales in BRICs markets except in Brazil. In Russia, Fiat backed off a new production alliance with the local manufacturer Sollers, while submitting a memorandum of intent to the Russian government in February 2011 to build a new plant with an annual production capacity of 300 K units on its own.
In China, Fiat is building a plant with an annual production capacity of 250 K units with Guangzhou Automobile in Hunan Province. There are plans for the plant to start running in July 2012, and will produce the C-segment sedan Linea as per the request of the Chinese government for fuel-efficient models.
In India, Fiat will focus on the B and C segments to expand sales, with plans to sell 130 K units by 2014.
In Russia, Fiat backs off new production alliance with Sollers, while submitting the plan to build a new plant with annual production of 300 K units on its own
|Fiat's objectives||Fiat aims to increase sales volume in Russia to 280 K units by 2014 (of which 230 K units are passenger cars which realized a 7% market share, and 50 K units are LCV). By maximizing the Jeep brand models, it plans to focus on the B, C, D and SUV segments.|
|New model vehicle release||Fiat will introduce a small sedan based on the successor model of the Dodge Caliber (to be launched in North America in January 2012) in Russia (schedule to be determined). In addition, Fiat will launch a medium size sedan based on the successor model of the Dodge Avenger (the same in 2012) in Russia at the end of 2013. Both sedans will employ the new Compact Architecture called Compact Wide by Fiat and Chrysler, which is wider by 40 mm than existing architectures. In addition, there are plans to produce the Compass/Patriot Jeep (which will be integrated into one model using a Fiat platform in 2013) and the successor model of the Liberty (Cherokee outside the US) in Russia.|
|Construction of new plant||In February 2011, Fiat submitted a memorandum of intent to the Russian government to produce passenger cars and commercial vehicles to be exempt from import tariffs on parts according to the government's new incentive scheme for the development of the auto industry. Fiat will spend 1.6 billion Euros to build a new plant to produce C and D segment passenger cars, SUVs and light commercial vehicles under the Fiat and Jeep brands at an annual production scale of 300 K units.|
|The incentive scheme mandate foreign manufacturers to produce 300 K units at a minimum in Russia by 2015 to be exempted from import tariffs on parts. Fiat and Sollers, a Russian auto manufacturer, had concluded the memorandum in 2010, with respect to a new joint venture to produce passenger cars and SUVs, but they dropped the negotiation in February 2011 (Sollers tied up with Ford). Fiat is seeking a possibility of partnership with other manufacturers.|
Source: Fiat Press Release 2011.2.25, Automotive News Europe 2011.3.3, and others
In China, Fiat starts operation of a plant with an annual capacity of 250 K units in 2012
|Fiat's objectives||Fiat attempts to produce 300 K units by 2014 to obtain a 2% share in China. Maximizing the Jeep brand models, Fiat will focus on the C, D and SUV segments.|
|New model vehicle release||In China, Fiat will launch a small sedan based on the successor model of the Dodge Caliber in the latter half of 2012 (January 2012 in North America) and the medium size sedan based on the successor model of the Dodge Avenger at the end of 2013 (2012 in the same). There are plans to produce Jeep Compass/Patriot (which will be integrated into one model using the Fiat's platform in 2013) and the successor model of the Liberty (called the Cherokee outside the US).|
|Construction of new plant||Fiat and Guangzhou Automobile Group are building a fifty-fifty joint plant in Changsha-city of Funan-province, and Fiat will open the plant in July 2012. The initial annual capacities will be 140 K passenger cars and 220 K engines, respectively. It is expected to expand production of passenger cars and engines to 250 K units and 300 K units at maximum, respectively. Fiat will produce the C-segment sedan Linea first as per the request by the Chinese government to develop fuel-efficient and low-emission passenger cars.|
Source: Fiat Presentation for investors 2011.1.15, Automotive News Europe 2011.4.4, and others
In India, Fiat aims for sales 130 K units and a 5% market share by 2014
|Fiat's objective||Fiat aims for sales volume of 130 K units and a 5% share by 2014 in India. It will focus on the B and C segments and strengthen the dealer network.|
Source: Fiat Presentation for others 2011.1.15
Automobiles division (FGA, Ferrari and Maserati)'s sales and trading profit have increased by 6.3% and 30%, respectively, in 2010
In January 2011, Fiat Group completed demerger of passenger car businesses from non-passenger car businesses. These two businesses are Fiat SpA which includes passenger car and passenger car-related parts divisions, and Fiat Industrial SpA which includes Iveco, a heavy commercial vehicle division and the capital goods division.
Despite a drop in sales volume in 2010, the sales and trading profit of the automobiles division (FGA, Ferrari and Maserati) in Fiat SpA had increased. Compared to the previous year levels, they were up by 6.3% to 30.1 billion Euros and by 30% to 930 million Euros, respectively. The drop in passenger car sales was covered by booming sales of light commercial vehicles and high-end brands, and preferable fluctuation of exchange rates.
In March 2011, Fiat Group held the 2011 forecast unchanged from the 2010-2014 plan, which was unveiled in April 2010. Fiat Group sees that Fiat SpA, the passenger car and passenger car-related parts division, will have sales of 37 billion Euros (35.9 billion Euros in 2010), an trading profit of 0.9 to 1.2 billion Euros (1.1 billion Euros) and a capital expenditure of 4 billion to 4.5 billion Euros (2.9 billion Euros).
Fiat Group: revenues and trading profit of Fiat SpA and Fiat Industrial SpA after the demerger
|(Euro in millions)|
|2009||2010||2011 target||2009||2010||2011 target|
|Components and production systems||8,789||10,865||89||249|
|Eliminations and others||(4,456)||(5,115)||(72)||(71)|
|Agricultural and construction equipment (CNH)||10,107||11,906||337||755|
|Trucks and commercial vehicles (Iveco)||7,183||8,307||105||270|
|Eliminations and others||(902)||(1,286)||11||2|
|Fiat Industrial SpA||17,968||21,342||22,000||322||1,092||1,200-1,400|
|Eliminations between Fiat and Fiat Industrial||(550)||(964)|
Source: Fiat Group 2010 Full Year and Fourth Quarter Results NOTE: The automobiles division consists of Fiat Group Automobiles (FGA), Maserati and Ferrari. The parts and production system consists of Fiat Powertrain, Magneti Marelli, Teksid and Comau.
Fiat SpA and Fiat Industrial SpA will announce their business results separately after 2011. Fiat SpA's revenues and trading profit in the first quarter of 2011 were as follows:
Fiat SpA：revenues and trading profit in Q1 2010/2011
|(Euro in millions)|
|Jan.-Mar. 2010||Jan.-Mar. 2011||Jan.-Mar. 2010||Jan.-Mar. 2011|
|Components and production systems||2,449||3,006||42||61|
|Eliminations and others||(1,180)||(1,387)||(8)||(2)|
|Source: Fiat SpA 2011 First Quarter Results|
|NOTES:||In the Automobiles division during the Q1 2011, Fiat Group Automobiles (FGA) sold 518,600 units (down by 2.6% from the Q1 2010), Ferrari 1,691 units (up by 6.7%), and Maserati 1,467 units (up by 21.7%)。|
Fiat Group's business results (2003 to 2010)
|(Euro in millions)|
|Result Before Taxes||(1,298)||(1,629)||2,264||1,641||2,773||2,187||(367)||1,282|
|Group Net income||(1,900)||(1,634)||1,331||1,151||2,054||1,721||(848)||600|
|No. of Employees||162,237||161,066||173,695||172,012||185,227||198,348||190,014||199,924|
|Source: Fiat Group 2010 Full Year and Fourth Quarter Results, 2010 Annual Report|
|NOTES: 1.||Trading profit is calculated by the equation: sales - (sales net cost + general administration fee for sales + R&D costs and other expenses), which has been presented since the settlement of 2005. Operating results are calculated by the equation: trading profit + (capital gain or loss + other special gain or loss + restructuring costs).|
|2.||R&D costs include capitalized R&D and R&D charged directly to the income statement.|
Reference: Fiat Group's passenger car sales by model in Europe
Fiat Group's passenger car sales by model in Europe
|Alfa Romeo Total||110,827||110,788|
|Fiat SpA Total||1,283,909||1,088,458|
Source: Automotive News Europe Executive Edition 2011.2.22 NOTE: The table above includes 29 European countries. The data do not include light commercial vehicles.
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