Fiat’s automotive division achieved revenues of EUR26.3billion in 2009, 2.4% below 2008’s level, on a total of 2,150,700 cars and light commercial vehicles delivered. Fiat also warned that the removal of incentives in Europe could hit it particularly hard.
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Fiat’s automotive unit said it closed the year with its highest ever Q4 revenues. Full year market share for passenger cars increased in Western Europe (+0.6 pp to 8.8%), with increases in Italy (+0.9 pp to 32.8%) and several other key markets, Fiat said.
Fiat also said it maintained its leading position in Brazil, with an overall share of 24.5% in a market that grew 12.6%.
For the fourth quarter of 2009, Fiat Group trading profit was EUR488m, compared with
EUR663 million for the same period in 2008. Fiat said that the trading margin of 3.6% ‘confirmed the steady quarterly margin recovery achieved during each quarter of 2009’.
The Group recorded a loss before taxes for the year of EUR367m (profit before taxes of EUR2,187m for 2008). This reflects a significantly lower operating result (down EUR2,613 million) and a decrease in investment income (down EUR135m), which were partially offset by lower net financial expense.
Incentives in Europe helped the automotive division in 2009. For Q4 2009, Fiat Group Automobiles (FGA) had revenues of EUR7.2bn, representing a 27.1% increase over the same period in 2008, when the economic crisis had already begun to reflect significantly on sales volumes.
FGA trading profit was EUR190m for the fourth quarter (2.6% trading margin), compared to EUR65m for the same period in 2008.
Fiat said 2010 is positioning itself as a year of ‘transition and stabilisation’.
Fiat also warned that the performance of the automobiles business will depend on the continued availability of reliable eco-incentives programs to underpin demand in Western Europe.
Fiat Group is forecasting trading profit of approximately EUR1.5bn in 2010, with positive net income of EUR200 to EUR300m.
Although it is assuming incentives will be absent in Germany, it said targets are subject to continued availability of eco-incentives in the European automotive market – otherwise ‘in Italy alone volumes would decrease by approximately 20% and would impact all car producers, more importantly those particularly active in the A and B segments, and Fiat in particular which holds roughly a 30% share’.
Trading profit in that ‘without incentives’ scenario would be drop by EUR350-400m, Fiat said.
Fiat has been lobbying for incentives to be continued in Italy.
