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Why Fiat Chrysler’s North American Operations Are Crucial

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Fiat Chrysler’s North American operations

In the last part of this series, we looked at Fiat Chrysler Automobiles N.V.’s (FCAU) key business segments and brands. Now we’ll explore the geographical breakup of Fiat Chrysler’s shipments. Fiat Chrysler is the seventh largest automaker globally and sells its cars in several regions.

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Breakup by shipments

The above graph shows the breakup of Fiat Chrysler’s mass-market shipments based on 1Q15 data. As you can see, NAFTA (North American Free Trade Agreement) is FCAU’s largest market, accounting for more than 58% of its shipments.

General Motors (GM) and Ford (F) are the leading car manufacturers in North America. Honda Motor Company (HMC), which is based in Japan, also gets a major portion of its revenues from North America.

Fiat Chrysler’s US (SPY) operations have managed to rise in year-over-year sales for more than 60 months. In June 2015, Fiat Chrysler had a 12.6% share in US markets compared to 12.1% in the previous year, according to a PR Newswire report and based on data compiled by Kelley Blue Book.

Other markets

EMEA (Europe, Middle East, and Africa) is another crucial market for Fiat Chrysler. It accounts for more than a quarter of its shipments. Fiat Chrysler has a 6.3% market share in the European Union, according to June car registrations data. Fiat Chrysler’s market share has improved from the previous year when it had a 6.1% market share. This is based on the European Automobile Manufacturers Association’s June car registration data.

Although Fiat Chrysler has lost market share in Latin America, it’s still the largest car manufacturer in that region with a 14.5% market share in 1Q15.

Fiat Chrysler is not a major player in the Asia-Pacific region. Its market share languishes below 1% in China, India, and Japan. However, it has a 4% market share in Australia, according to 1Q15 shipments.

In the next part, we’ll look at the profitability of Fiat Chrysler’s various operations.

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