FCAU’s 4Q16 revenues
Previously, we saw that Fiat Chrysler Automobiles (FCAU) reported a minor rise of 1.0% in its total 4Q16 revenues. Its lower shipments in North America continued to hurt revenues from its largest single market. In this part of the series, we’ll see why FCAU’s revenues from Europe rose slightly in 4Q16.
Solid gains in Europe
Europe is the second-largest market for Fiat Chrysler Automobiles after the NAFTA (North American Free Trade Agreement) market. In 4Q16, the company’s shipments in Europe rose 14.0% to 340,000 vehicle units, from 299,000 units in 4Q15. These higher shipments increased its revenues from the region to 6.0 billion euros, or $6.4 billion, a rise of 7.0% from its 4Q15 revenues.
The company noted a higher demand for Fiat Tipo family vehicles, Jeep Renegade, and Alfa Romeo Giulia as the key drivers behind this positive growth in Europe. However, the company’s advertising and costs related to R&D (research and development) to support its new products continued to affect its revenues from the region during the quarter.
Performance in other key markets
Fiat Chrysler’s 4Q16 revenues from the Asia Pacific region fell 11.0% YoY (year-over-year) to 0.89 billion euros, or $0.95 billion. Recent localization of the Jeep brand vehicle production in China through its joint ventures affected the company’s revenues.
In 4Q16, FCAU’s shipments in Latin America continued to fall 6.0% due to macroeconomic challenges in the region. In spite of that fall, the company’s revenues from the region rose 27.0% YoY to 1.9 billion euros due to a favorable product mix.
In the next part of this series, we’ll look at Fiat Chrysler’s 4Q16 margins.