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How Were Auto Companies’ Shipments in 2015?

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Auto companies’ shipments

Vehicle shipments are one of the key drivers of an auto company’s performance. Generally, auto shipments depend on demand from end consumers as well as on any portfolio actions undertaken by the company. Last year, auto companies’ shipments rose, primarily due to the higher demand from North America.

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Stronger North America

In 2015, North American auto sales expanded to 17.4 million units, growing by 6% from the year earlier. This was the highest in US auto sales history. Low gasoline prices and low-interest rates in the US helped auto demand to grow last year. Now, let’s look at how different auto companies’ shipments shaped up in 4Q15.

Who benefited the most?

In the quarter ended December 31, 2015, mainstream automakers (VCR) such as General Motors (GM), Fiat Chrysler Automobiles (FCAU), and Ford Motor Company (F) reported an increase in vehicle deliveries to the North American market. Now let’s take a look at how different automakers were able to benefit from the rising auto demand from the region in 4Q15.

  • General Motors delivered 927,000 vehicle units in North America, which represents an increase of 8.5% from 4Q14.
  • Ford delivered 808,000 vehicle units in North America, which represents an increase of 15.4% from the corresponding quarter of the previous year.
  • Fiat Chrysler Automobiles delivered 731,000 vehicle units in North America, which represents an increase of 9.4% from the corresponding quarter of the previous year.
  • Toyota (TM) delivered 728,000 vehicle units in North America, which represents an increase of 2.2% from the corresponding quarter of the previous year.

Ford Motor Company benefited the most with this positive trend in North American auto demand in the last reported quarter. This was primarily supported by the higher shipments of Ford’s legacy F-150 pick-up truck.

Weaker South America

Last year, South America witnessed a sharp decline in auto demand due to worsening economic conditions in the region. FCAU, which has a reputation for having a strong hold on the South American market, also reported a decline of about 35% and 18% in Brazil and Argentina, respectively, in 2015. In South America, General Motors and Ford also reported a sharp fall in 4Q15 sales volume of 33% and 39%, respectively. Shipments in countries like Brazil and Argentina were negatively affected by the economic slowdown.

Continue to the next article to find out how auto companies’ profit margins fared in 4Q15.

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