Fiat Chrysler’s brand-wise sales
In February 2018, Fiat Chrysler (FCAU) sold 1,568 units of its luxury brand, Alfa Romeo, in the US market, against just 443 units sold in February 2017. This sharp increase in Alfa Romeo sales could be attributed to robust demand for the company’s launch of the Stelvio SUV (sport-utility vehicle) and Giulia models last year. According to data compiled by Autodata, Fiat Chrysler’s February US car and truck sales rose 1.3%, while its small car sales fell 17.5% YoY (year-over-year).
Solid Jeep and Ram retail sales
In February 2018, Fiat Chrysler’s Jeep brand sales recovered for a second month in a row after dropping for 11 consecutive months. Ram brand sales fell YoY.
The company sold 70,020 Jeep brand units during the month, marking a rise of 12% YoY. Ram sales fell 14% YoY to 36,737 units. Nonetheless, Jeep and Ram US retail sales rose 10% and 8% YoY, respectively in February 2018.
In January 2018, FCAU’s Jeep and Ram brand vehicle sales were lower, at 60,000 and 32,000 units, respectively. Jeep and Ram are key brands in Fiat Chrysler’s US product line, with the Ram brand holding a notable position in the pickup truck space.
Possible effects on profits
Pickup trucks and luxury brand vehicles generate high profits for vehicle makers. A notable increase in the company’s Alfa Romeo sales and a recovery in Jeep sales could boost FCAU’s 1Q18 operating margins.
In the most recent reported quarter, Fiat Chrysler’s net profit margins were narrower than those of auto peers (IYK) Toyota (TM), General Motors (GM), and Ford (F). Among these auto companies, Toyota is known to have the widest profit margins. In the next part, we’ll learn about Toyota’s US auto sales last month.