Could Lower January Jeep Sales Hurt Fiat Chrysler Stock?



Jeep sales fell

In January 2017, sales of Fiat Chrysler’s (FCAU) key brand Jeep disappointed investors while its Ram brand sales remained firm. The company sold 58,415 Jeep brand vehicles during the month, down 7% YoY (year-over-year) and 38,045 units of Ram brand vehicles, up 5% YoY.

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Importance of Jeep and Ram brands

The Ram and Jeep brands are the key strengths of Fiat Chrysler’s product portfolio. These two brands help the company maintain its position in the US pickup truck segment. Currently, Ford (F), General Motors (GM), and Toyota (TM) are among the major competitors for Fiat Chrysler in this segment.

Among other key brands, the sales of Chrysler, Dodge, and Fiat brands fell 39%, 17%, and 9%, respectively. January 2017 sales of Alfa Romeo, Fiat Chrysler’s luxury brand, also dropped 59% YoY to just 68 car units from 108 units in January 2016.

Impact on FCAU stock

If we look at automakers’ performances for 1Q17 so far, then FCAU has significantly outperformed not only its peers but also the broader market. Through January 15, its stock gained about 26.3% on a quarter-to-date basis. These gains are much higher than GM’s and Ford’s 6.4% and 4.1% gains, respectively. Meanwhile, the S&P 500 Index (SPY) has risen 4.9% in the first quarter so far.

Despite minor declines in the company’s total US sales in January, Fiat Chrysler managed to post a good YoY increase in its heavyweight truck sales, which reflects optimism. Therefore, we can’t deny the possibility of its stock trading on a firm note in the near term.

Continue to the next part to learn about Toyota’s US auto sales in January 2017.


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