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Why Fiat Chrysler’s NAFTA Revenue Fell in 4Q17

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Fiat Chrysler’s 4Q17 revenue

In 4Q17, Fiat Chrysler’s (FCAU) total revenue stood at 28.9 billion euros, or $35.9 billion. This revenue reflected a fall of ~2.8% YoY (year-over-year).

In this article, we’ll take a closer look at Fiat Chrysler’s 4Q17 shipments and revenue from the NAFTA (North American Free Trade Agreement) region.

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Global shipments

Fiat Chrysler’s consolidated global shipments in 4Q17 stood at 1.16 million vehicle units, nearly flat compared to 1.15 million units in the same quarter of 2016. The company attributed this stagnation in consolidated shipments to its strategy to reduce fleet sales in the NAFTA region.

At the same time, FCAU’s combined global shipments, which include shipments of the company’s joint ventures, rose 1.1% YoY.

NAFTA revenue weakened

During 4Q17, Fiat Chrysler shipped ~624,000 vehicles in North America, a fall of ~3.3% compared to the ~645,000 units it shipped in 4Q16. Due to these lower sales, the company’s revenue from the NAFTA region fell ~5% YoY to 16.8 billion euros, or $20.9 billion.

Unfavorable currency movements also hurt FCAU’s NAFTA revenue in the fourth quarter. In contrast, a positive product mix acted in favor of the company’s NAFTA revenue.

It’s important to note that FCAU reports its earnings in euros. Investors must pay attention to the company’s euro financial figures to get a fair idea about its existing trends.

Fiat Chrysler generates the majority of its revenue from North America. Other automakers, such as (IYK) General Motors (GM), Toyota Motor (TM), and Ford Motor Company (F), also make a large portion of their revenues in the North American market.

Read on to the next article to learn about Fiat Chrysler’s 4Q17 revenue from its other main markets.

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