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Where Fiat-Chrysler made its money (corrected)

by David Zatz on

Yesterday, Fiat — soon to be Fiat Chrysler Automobiles (FCA) — presented its 2013 financial report and guidance for 2014 to analysts in an open teleconference. The company showed a $2.8 billion profit by Chrysler (including hefty one-time benefits), with losses by Fiat itself. For what may be the last time, the company provided data on both Fiat with Chrysler, and Fiat without Chrysler.

revenues

Chrysler accounts for around half of the future FCA’s revenues (left hand chart), keeping in mind that Fiat does gain some revenue in North America (not just from Fiat and Alfa Romeo sales in Mexico, but also from Maserati and Ferrari sales).

Fiat makes most of its money from Europe, with Italy accounting for nearly a third of that revenue; Latin America comes in second. The company is expanding rapidly in Asia-Pacific [this was incorrectly typed as “Latin America” in the first version], but remains a niche player in all major markets there.

Looking at trading profits (right hand chart), one can see the outsized contribution by Chrysler, and compare the loss in Europe/Middle East with the profits from Latin America and the Asia-Pacific region.

revenues2

The chart above shows similar information, but in billions of euros rather than as percentages, and with Ferrari and Maserati broken out. Components includes Magneti Marelli and other companies.

The final chart was assembled by Allpar, and shows net earnings before interest and taxes.  Chrysler is the driver of profits for the entire group, while Latin America comes in as the second largest generator of profit for the last two years (Ferrari and Maserati were stronger in 2013). This chart does not include the one-time gains at Chrysler for 2013.

2013 EBIT (profits)

Chrysler is still in investment mode; for 2013, the company came up shorter than Mr. Marchionne expected, by around 50,000 units, largely due to the late launch of the Jeep Cherokee. For 2014, the company will likely have some production shortfalls as the Sterling Heights plant (200) is closed for 30 days and new large cars are phased in; Sergio Marchionne said several times that 2015 would be a better year, though 2015 may be impacted by the transition to new minivans. Many expect the Windsor, Ontario minivan plant to be closed for one or two months in late 2014 and/or early 2015 as it changes over to new models.

Asia-Pacific initiatives include a joint venture to build Jeeps and Fiats in China; continued expansion into India and Australia; and the greater introduction of Dodge and Alfa Romeo in the region (the use of Dodge appears to contradict past plans, but Mr. Marchionne has often changed plans when they do not work).


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