Fiat keeps overall result positive thanks to Chrysler
The second quarterly results by Chrysler were one of the best in history. And just that fact was very welcome for the brand which its operational centers are in Turin and Detroit. Although the company is merged since last summer (Fiat has 61.8% of Chrysler), there is also one operating result. But we want to mention the results of Fiat SpA separately. Q2 had a turnover of 9,2 billion euros (with Chrysler it is 21,5 billion euros). Net profit of the whole group is 358 million euros. Without the grow of Chrysler (sales are up +20% and net profit +141%), Fiat would have a net loss of 246 million euros (-7.5%). Thanks to these moderate results, Fiat’s stock plummeted yesterday. Lingotto could summarise Q2 as expected under these market conditions. Fiat’s relatively positive statement is only possible thanks to the results outside the EU.
For the second half of 2012 expectations are positive, as Fiat expects sales in the US to grow. The economic situation in Europe should stabilise at the end of 2012. The goals set by the company should be achieved abundantly. This is of course linked to the success of Chrysler. So the 5-year ‘road-map’ goals (set in 2009) are within reach. Fiat retains its position on investments in Europe (500 million instead of 1 billion euros) for the rest of the year. The postponement of the replacement of the Fiat Punto is part of these reduced investment plans. Yesterday in Milan, Marchionne stated that postponing this model will be a good decision on the long run, now the Italian market is showing reduced demand. Today in Turin, Marchionne will speak to the trade unions about the decisions which will be made for the upcoming months. One should take into consideration that there can be some reorganisations/reviews to keep losses at a minimum. Till 2014 Fiat is prepared for a difficult time in Europe.
The first half year wasn’t that good for the FGA group, all brands had to give in market share. Exceptions are Lancia and Jeep. The north and south of America is one of the best regions for Fiat this half year. Just like Asia where a plus 24% is achieved. Maserati (+2%) and Ferrari (+12.2%) added a positive result to the turnover of 8.7% to a total of 0.8 billion euros. The sales of the recently introduced Fiat Viaggio will generate more positive results for Fiat on this important and rising market.