Fiat Chrysler’s brand-wise sales
In December 2017, Fiat Chrysler Automobiles (FCAU) sold about 2,034 units of its Alfa Romeo luxury brand in the US market against just 52 units sold in December 2016. This impressive increase in Alfa Romeo sales could be attributed to solid demand for the company’s recently launched Stelvio SUV and Giulia models. According to Autodata, Fiat Chrysler’s US car and truck sales both fell 11% YoY (year-over-year) in December.
Chrysler sales rose
In December, Fiat Chrysler’s Jeep brand sales continued to weaken for the 11th consecutive month, while Ram brand sales also fell for the fourth month in a row. The company sold about 73,205 Jeep units during the month, down 12% YoY, and 49,876 units of Ram brand vehicles last month, a 7% YoY drop.
In November, FCAU’s Jeep and Ram brand vehicle sales were lower at 66,001 and 40,390 units, respectively. Ram and Jeep are two key brands in Fiat Chrysler’s US product line. Ram helps the company maintain a solid position in the pickup truck segment.
On the brighter side, the company’s Chrysler brand sales rose 3% YoY in December. This positive sales growth was mainly driven by stronger demand for Pacifica minivan and Chrysler 300 models.
Impact on 4Q profitability
Pickup trucks and luxury brand vehicles generate high profits for vehicle makers. A notable rise in the company’s Alfa Romeo December sales could have a positive impact, but continued softness in its Jeep and Ram brand truck sales could be negative for FCAU’s 4Q profitability.
In the most recently reported quarter, Fiat Chrysler’s net profit margins were lower than those of other auto companies (IYK) such as Toyota (TM), General Motors (GM), and Ford (F). Among these auto companies, Toyota is known to maintain the highest profit margins.
In the next article, we’ll learn about Toyota’s US auto sales last month.