Fiat Chrysler’s brand-wise sales
In January 2018, Fiat Chrysler Automobiles (FCAU) sold 1,648 units of its luxury brand Alfa Romeo in the US market compared to just 108 units in January 2017. This impressive increase in Alfa Romeo sales can be attributed to solid demand for the company’s newly launched Stelvio SUV (sport-utility vehicle) and Giulia models.
According to Autodata, Fiat Chrysler’s January US car and truck segment sales fell 36% and 9% YoY (year-over-year), respectively.
Jeep sales improved
In January 2018, Fiat Chrysler’s Jeep brand sales recovered after falling for the previous 11 consecutive months, while its Ram brand sales remained negative. The company sold ~60,000 Jeep units during the month, a rise of 2% YoY, and 32,000 Ram units during the month, a fall of 16% YoY.
In December 2017, FCAU’s Jeep and Ram brand vehicle sales rose to 73,000 and 50,000 units, respectively, due to the high discounts offered during the holiday season. Jeep and Ram are two of the most important brands in Fiat Chrysler’s US product line. Ram also helps Fiat to maintain a notable position in the pickup truck market.
Possible impact on 1Q18 profits
Pickup trucks and luxury brand vehicles generate high profits for vehicle makers. A notable increase in the company’s Alfa Romeo brand and sales recovery in its Jeep brand sales could have a positive impact, but continued softness in its Ram brand truck sales could be negative for FCAU’s 1Q18 profit margins.
In the most recent reported quarter, Fiat Chrysler’s net profit margins were lower than those of other auto companies (IYK) Toyota Motor (TM), General Motors (GM), and Ford Motor Company (F). Among these auto companies, Toyota is known to maintain the highest profit margins.
Next, we’ll learn about Toyota’s US auto sales last month.