Fiat Chrysler’s sales by brand
In August, Fiat Chrysler Automobiles (FCAU) sold 2,240 units of its luxury brand, Alfa Romeo, in the United States, reflecting 96% YoY (year-over-year) growth.
The company attributed this sharp increase in Alfa Romeo sales to strong demand for its recent launches, the Stelvio SUV (sport utility vehicle) and Giulia models. In August, 1,271 units of the Stelvio SUV were sold in the United States. Now let’s see how its other key brands’ US sales were in August.
Jeep sales jumped 20%
Last month, Fiat Chrysler’s Jeep brand sales remained strong for the eighth month in a row after dropping for the previous 11 consecutive months. At the same time, total Ram brand sales also witnessed a solid 27% YoY rise to 54,808 vehicle units in August, also much higher than the 45,065 units it sold in July.
The company sold ~87,502 units of its Jeep brand in August, up 20% YoY. In late 2016, FCAU launched the second generation of its Jeep Compass, which is continuing to drive impressive positive sales growth in 2018. In August, Fiat’s Jeep Compass model’s sales rose 76% YoY in the United States to 16,339 units. The Jeep Cherokee, Wrangler, and Grand Cherokee were the top three Jeep brand vehicles sold last month, with 21,978, 20,168, and 20,072 units sold, respectively.
Notably, Jeep and Ram are two of the key brands in Fiat Chrysler’s US product line. The Ram brand also helps it uphold a notable position in the pickup truck space.
Optimism in third-quarter margins
Pickup trucks and luxury brand vehicles generate high profit margins for vehicle manufacturers (XLY) compared to small cars. Notable increases in the company’s Alfa Romeo, Jeep, Ram, and overall retail sales could have a positive impact on FCAU’s third-quarter profit margins.
In its most recently reported quarter, Fiat Chrysler’s net profit margins were lower than Toyota’s (TM) and General Motors’ (GM) but higher than Ford Motor Company’s (F). Among these auto companies, Toyota is known to maintain the highest profit margins. In the quarter that ended on June 30, FCAU’s, GM’s, Ford’s, and TM’s adjusted net profit margins were 3.4%, 7.1%, 3.1%, and 8.9%, respectively.
In the next article, we’ll learn about Toyota’s US auto sales in August.