Chrysler 2002 Annual Report Download - page 51

Sales performance
In Western Europe, demand for commercial vehicles totaled
650,500 units in 2002, or 5.7% less than in 2001. Only Italy
reversed the trend (+11.1%), due mainly to the positive impact
of the investment incentives provided by the Tremonti Bis Law.
New registrations of light commercial vehicles (GVW between
3.5 and 6 tons) were down 2.2% to 355,000 units. The decrease
in demand that occurred in all major European markets was
offset only in part by a substantial gain in Italy (+13.8%), and
asteady performance in Great Britain (+3.0%).
Demand for medium vehicles (GVW between 6.1 and 15.9 tons)
decreased by 8.6% to 81,800 units.
The negative impact of sharp decreases in Germany and Great
Britain (-16.5% and -8.6%, respectively) was only partially offset
by a 17.8% increase in Italy.
With 213,700 new units registered in 2002, the market for heavy
vehicles (GVW ≥16 tons) contracted by 9.9%, with particularly
steep declines in Germany (-14.7%), France (-12.3%) and Great
Britain (-6.5%). Only Italy recorded a gain, with demand
increasing by 2.7%.
Iveco sold 161,883 vehicles worldwide, or approximately 0.9%
more than in 2001. The Sector’s licensee associated companies
shipped approximately 37,500 vehicles, or 9.3% more than in
2001. In Western Europe, the Sector sold 128,760 vehicles,
or about the same as in 2001 (-3.0% on a comparable basis).
The main reason for this reduction was a decline in the French
market, where the Sector experienced a sharp 23.1% drop in
unit sales, due in part to a more selective approach in signing
new contracts with buyback clauses, and to weak demand in
Germany (-8.0%). These decreases were offset by positive
performances in Italy and Great Britain.
Iveco’s share of a contracting Western European market for
vehicles with a curb weight equal to or greater than 3.5 tons
increased to 17.9% (+0.9 percentage points). The main reason
for this achievement is the Sector’s outstanding performance
in the medium-vehicle segment, in which Iveco became the
European market leader with a penetration of more than 30%
(+5.3 percentage points). The Sector’s share of the heavy-vehicle
segment also improved, rising by 1.3 percentage points to
12.3%. This improvement reflects the success of the new
Stralis, which was named Truck of the Year 2003.
Iveco’s performance in the light vehicle segment (market share
of 18.5%) was comparable with 2001, owing in part to an upturn
49 Report on Operations
Commercial Vehicles — Iveco
(in millions of euros) 2002 2001 2000
Net revenues 9,136 8,650 8,611
Operating result 102 271 489
EBIT (409)46 422
Net result before
minority interest (493)(123) 147
Cash flow (70)287 569
Capital expenditures (*) 587 718 656
Research and development 239 215 227
Net invested capital 1,582 1,979 2,207
Number of employees 38,113 35,340 35,852
(*) Vehicles under long-term rentals 331 348 306
Highlights
Revenues by geographical
region of destination
Italy Rest of Europe Rest of the world
Employees by geographical
region
050% 100%
Commercial Vehicles Market (GVW ≥3.5 tons)
(in thousands of units) 2002 2001 % change
France 113.4 123.1 (7.9)
Germany 125.8 140.4 (10.4)
Great Britain 116.9 118.6 (1.5)
Italy 105.0 94.6 11.1
Spain 68.9 72.8 (5.4)
Western Europe 650.5 689.7 (5.7)
Commercial Vehicles Market (GVW ≥3.5 tons)
(in thousands of units) 2002 2001 % change
Heavy 213.7 237.3 (9.9)
Medium 81.8 89.5 (8.6)
Light 355.0 362.9 (2.2)
Western Europe 650.5 689.7 (5.7)