annual report - FIAT SpA

FIAT GROUP AUTOMOBILES
Fiat, Abarth, Alfa Romeo, Lancia and Fiat Professional
COMMERCIAL PERFORMANCE
The European passenger car market
(EU27+EFTA) experienced a decrease of 4.9%
over 2009 levels to approximately 13.8 million
vehicles. Demand in the first part of the year was
still positively influenced by government
incentive programs. However, beginning in the
second quarter, registrations fell off significantly
with a year-on-year decline of approximately
11% in the second half.
In Germany, the first European market to
completely phase out these incentives, demand
was down 23.4% for the year. In Italy, the
market declined 9.2%, with the fall off in demand
being particularly pronounced in the second half
(-22.7%). The decrease in France was more
contained (-2.2%), with incentives being phased
out progressively during the year. Modest growth
Highlights
(€ million) 2010 2009
Net revenues 27,860 26,293
Trading profit/(loss) 607 470
Operating profit/(loss) (*) 515 217
Investments in tangible and intangible assets 1,652 1,495
of which capitalized R&D costs 529 446
Total R&D expenditure (**)
Passenger cars and light commercial vehicles
722 669
delivered (no. of units) 2,081,800 2,150,700
No. of employees at year end 57,611 54,038
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
was experienced in the United Kingdom (+1.8%) and Spain (+3.1%). In Brazil, demand for passenger cars increased
6.9%, despite the phase out of incentives during the first part of the year.
For 2010, FGA’s European market share was impacted by the decision to reschedule new product launches for the
second half of 2011, in view of the contraction in market demand expected for the second half of 2010 and first half of
2011.
In Europe, Fiat Group Automobiles closed 2010 with a market share of 7.5% (down 1.1 percentage points over 2009).
In Italy, share was 30.1%, a decrease of 2.7 percentage points. Excluding the effect of the sharp reduction in demand
for CNG/LPG vehicles (-25%), where FGA is market leader, share would have been in line with 2009. At 3.0% (-1.7
percentage points), share performance in Germany was impacted by the significant decline in demand (over 40%) in
FGA's core market segments. Modest share decreases were experienced in France (-0.3 percentage points to 4.0%)
and the United Kingdom (-0.5 percentage points to 3.0%). By contrast, market share in Spain was up 0.5 percentage
points to 3.0%. In other European markets, notable performance was achieved in the Netherlands, where FGA’s ecoperforming
product range benefited from CO2 emissions-based incentives, resulting in a 44% increase in registrations
and a 0.8 percentage point gain in market share to 6.4%.
The Fiat brand's market share decreased to 6.0% in Europe (-1.0 percentage point over 2009). The Fiat Panda and the
Fiat 500 retained the top two positions in the A segment, with the Fiat 500 achieving a net gain in share of 2.5
percentage points. In Europe, market share for the Lancia brand was 0.7% (-0.1 percentage points), while Alfa Romeo
maintained registration levels (with a 0.8% share), despite the contraction in the market, due to the positive contribution
Sales Performance
Passenger Cars and Light Commercial Vehicles
(units in thousands) 2010 2009 % change
Passenger Car Market France 120.9 114.8 5.3
(units in thousands) 2010 2009 % change Germany 107.8 179.5 -39.9
France 2,251.7 2,302.4 -2.2 UK 66.4 75.1 -11.5
Germany 2,916.3 3,807.2 -23.4 Italy 625.6 721.9 -13.3
UK 2,030.8 1,995.0 1.8 Spain 37.3 25.2 48.1
Italy 1,960.3 2,159.5 -9.2 Poland 34.7 42.4 -18.3
Spain 982.0 952.8 3.1 Rest of Europe 172.8 145.6 18.7
Poland 333.5 320.3 4.1 Europe (EU27+EFTA) 1,165.5 1,304.5 -10.7
Europe (EU27+EFTA) 13,785.7 14,499.1 -4.9 Brazil 761.4 749.5 1.6
Brazil 2,695.4 2,520.2 6.9 Rest of World 154.9 96.7 60.3
Total Sales 2,081.8 2,150.7 -3.2
Associate companies 140.5 126.9 10.6
Grand Total 2,222.3 2,277.6 -2.4
Report on Operations Fiat Group Automobiles 70