FCAU’s US sales in January
In January 2018, Fiat Chrysler Automobiles’ (FCAU) total US sales dropped to 133,000 vehicles, ~13% lower than the 152,000 units it sold in January 2017 and ~23% higher than the 172,000 units it sold in December 2017.
January was the 17th consecutive month during which FCAU’s sales fell in the US market.
US retail sales inched up
Last month, Fiat Chrysler’s retail sales rose to 112,000 vehicle units with a rise of ~2% YoY (year-over-year). In December 2017, the company’s US retail sales fell 3% YoY to 151,000 units.
As a percentage of its overall US sales, Fiat Chrysler’s January retail sales figure was ~84%.
Steep fall in fleet sales
In January 2018, Fiat Chrysler continued to cut its US fleet vehicle sales. Last month, FCAU’s fleet sales witnessed a steep fall of ~50% to 21,226 vehicle units, accounting for just 16% of its total US sales. This figure was slightly down from its December 2017 fleet sales of 21,174 units.
As part of its strategy to improve its profitability, Fiat Chrysler reduced its US sales to the daily rental segment in 2017, just like US giant General Motors (GM) did. Daily rental segment sales typically result in lower profits for auto companies (XLY) compared to profits from retail sales.
Due to this planned cut in fleet sales, FCAU has been losing its US market share to peers such as GM, Ford Motor Company (F), and Toyota Motor (TM) lately. Ford reported a fall of ~7% in its January US sales, while TM’s US sales rose 17% YoY.
Despite a massive drop of 50% in its fleet sales, a 2% rise in Fiat’s retail sales could keep investor optimism alive going forward.
Read on to the next article to learn about Fiat Chrysler’s car and truck segment sales in January 2018.