Chrysler 2005 Annual Report Download - page 55

Operating Performance
Demand in Western Europe in the automobile market was
substantially in line (-0.2%) with the previous year.The largest declines
occurred in Italy (-1.3%) and the United Kingdom (-5.0%), offset in
part bygains in France (+2.6%), Germany (+1.6%) and Spain (+0.9%).
Outside WesternEurope,demand was off sharplyin Poland (-26.5%),
while the Brazilian market continued on its growth track, with
demand rising by 9.1%.
The Western European market for light commercial vehicles posted
an overall increase of 2.8% over 2004.This increase was the net
result of gains of 13.4% in Spain, 3.4% in France and 3.1% in Germany
and decreases of 1.8% in Italy and 1.3% in the United Kingdom.
Fiat Auto’s share of the automobile market held at 28.0% in Italy
(about the same as in 2004), but declined to 6.5% for Western
Europe as a whole (0.7 percentage points less than in 2004).
The Sector’s share of the market for light commercial vehicles was
virtually unchanged, registering 10.4% for all of Western Europe
(-0.2 percentage points compared with 2004) and 42.3% for Italy
(in line with 2004).
In Brazil, Fiat Auto’s share of the automobile and light commercial
vehicle markets increased to 24.4% (+0.9 percentage points) and
28.8% (+4.5 percentage points), respectively.
Fiat Auto
Fiat, Alfa Romeo, Lancia
and Fiat Veicoli Commerciali
Highlights
(in millions of euros) 2005 2004
Net revenues 19,533 19,695
Trading profit/(loss) (281) (822)
Operating result (*) (818) (1,412)
Investments in tangible and intangible assets 1,582 1,792
-of which capitalised R&D costs 310 500
Total R&D expenses (**) 665 952
Automobiles and light commercial
vehicles delivered (number) 1,697,300 1,766,000
Employees at year-end (number) 46,099 45,122
(*) Including restructuring costs and unusual income (expenses).
(**) Including R&D capitalised and charged to operations.
Sales Performance
Automobiles and Light Commercial Vehicles
(in thousands of units) 2005 2004 %change
France 79.3 73.2 8.3
Germany 90.8 107.8 -15.8
United Kingdom 53.3 86.7 -38.5
Italy 687.7 704.3 -2.4
Spain 70.3 72.4 -3.0
Rest of Western Europe 118.5 148.8 -20.3
Western Europe 1,099.9 1,193.2 -7.8
Poland 33.8 60.6 -44.3
Brazil 404.3 358.1 12.9
Rest of the world 159.3 154.1 3.3
Total sales 1,697.3 1,766.0 -3.9
Associated companies 107.3 90.7 18.3
Grand total 1,804.6 1,856.7 -2.8
54 Reporton Operations Fiat Auto
01 Report on Operations
Automobile Market
(in thousands of units) 2005 2004 % change
France 2,058.1 2,005.3 2.6
Germany 3,250.1 3,198.3 1.6
United Kingdom 2,443.5 2,572.8 -5.0
Italy 2,234.2 2,264.7 -1.3
Spain 1,527.3 1,514.1 0.9
Western Europe 14,415.8 14,449.2 -0.2
Poland 234.2 318.5 -26.5
Brazil 1,414.8 1,297.3 9.1
In 2005, Fiat Auto sold a total of 1,697,300 vehicles, or 3.9% less
than in 2004. In Western Europe, shipments were down 7.8% to
1,100,000 units. Strong competitive pressure and, early in the year,
the expected launch of new models account for the reduction in
unit sales. Once new models became available, sales rebounded
both in Italy and Europe as a whole, particularly in the fourth quarter.
In 2005, Fiat Auto’s sales volume was down 2.4% in Italy (but
increased by 14.7% in the fourth quarter of 2005) and 3% in Spain.