Chrysler 2001 Annual Report Download - page 42

42
Automobiles
(in millions of euros) 2001 2000 1999
Net revenues 24,440 25,361 24,101
Operating income (loss) (549) 44 (121)
as a % of revenues (2.2) 0.2 (0.5)
Net income (loss) before
minority interest (1,442) (599) (*) (493)
Cash flow (292) 732 855
Capital expenditures 1,331 1,412 1,464
Research and development 870 776 711
Net invested capital 2,340 4,220 5,021
Number of employees 55,174 74,292 82,553
(*) Does not include extraordinary items stemming from the agreement with
General Motors.
Highlights
SALES PERFORMANCE
In 2001, the performance of the global automobile market was
characterized by relatively steady demand in North America
(-0.3%), modest growth in Western Europe (+0.7%) and,
in South America, a recovery in Brazil (+12.4%) and a slump
in Argentina (-44%).
In Western Europe, demand increased to 14.8 million units,
reflecting the widespread use of promotional programs by
carmakers and an acceleration of the rate of replacement
of cars without catalytic converters still in circulation. In Italy,
new vehicle registrations totaled 2,425,000 units, slightly
more than in 2000.
Demand was up in France, where the market expanded
by 5.7%, and in Great Britain, where unit sales passed the
2.4-million mark for the first time, posting growth of 10.6%.
Shipments were also up in Spain (+ 3.8%). In Germany,
where the market had contracted sharply in 2000, demand
was down by a further 0.8%.
In the other markets, demand declined sharply in Poland
(-31.5%) and in Turkey (-70.3%) due to the economic crises
that developed in these two countries.
In Western Europe, sales of light commercial vehicles totaled
slightly more than 1.8 million units, or 1.7% less than in 2000.
This decline marked the end of an upward trend that had lasted
for a number of years. In Italy, the market contracted by 5.8%.
The Sector’s share of the Western European market was 9.6%,
or 0.4 points less than in 2000. The Sector’s penetration of the
Italian market decreased from 35.4% in 2000 to 34.7% in
2001, due mainly to the phase-out of the Bravo and Brava
models. However, the situation began to improve toward the
end of the year with the introduction of the Stilo.
In Brazil, the Sector’s market share rose by one percentage
point to 28.6%, making it the market leader in that country.
In this market environment, Fiat Auto sold a total of 2,096,000
vehicles, or 10.8% less than in 2000. The contribution of
associated companies, which were drastically affected by
the slumping Turkish economy, brought the Sector’s sales to
2,126,000 units, for a decrease of 12.8% from the previous
year. Sharp sales declines caused by local economic crises
also occurred in Poland and Argentina.
At the Western European level, sales were 13.7% lower than
in 2000, due mainly to the implementation of aggressive
Revenues by geographical
region of destination
Employees by geographical
region
050 100%
Rest of the world
Rest of Europe
Italy
Giancarlo Boschetti,
Fiat Auto’s Chief Executive Officer.
Fiat built its first car in 1899. The Lingotto, the Company’s
first mass-production automobile factory, was inaugurated
in Turin in 1923. It now houses the Group’s headquarters.
Other plants were later opened in Italy and the rest of the
world. Fiat Auto’s home market extends beyond Italy to
include the Mercosur countries and Poland.
Fiat Auto Holdings
Automobile Market
(in thousands of units) 2001 2000 % change
France 2,250 2,130 5.7
Germany 3,282 3,309 (0.8)
Great Britain 2,465 2,228 10.6
Italy 2,425 2,423 0.1
Spain 1,427 1,376 3.8
Western Europe 14,765 14,668 0.7
Poland 319 466 (31.5)
Brazil 1,295 1,151 12.4