Chrysler 2008 Annual Report Download - page 81

Report on Operations Iveco80
Commercial Performance
In 2008, demand for commercial vehicles (gross vehicle weight
≥ 2.8 tonnes) in Western Europe declined 6.9% to 1,172,000
units, particularly in Spain (-37.5%), Italy (-6.9%) and Great
Britain (-2.5%). France and Germany registered only slight
decreases over 2007 levels, despite the significant worsening
of conditions in these markets in the second half of the year.
The light segment (GVW 2.8 to 6 tonnes) declined 9.1% from
2007. Spain posted a marked decline (-41.4%), while the
contraction in Italy (-8%), France (-4.4%) and Great Britain
(-6.9%) was less severe. The German market, by contrast,
remained stable at 2007 levels.
Demand in the medium segment (GVW 6.1 to 15.9 tonnes)
decreased 3.9% over 2007, particularly in Spain (-23.7%), Italy
(-10.1%) and Germany (-3.8%), while the market in Great
Britain remained stable and growth was recorded in France
(+13.0%), despite the drop in demand in the last two months
of the year.
In 2008, the heavy segment (GVW ≥ 16 tonnes) remained at
2007 levels and the high level of registrations for most of the
year reflected order levels experienced the prior year. Great
Britain and France posted growth of 20.1% and 8.9%,
respectively, whereas declines were seen in Spain (-30.2%),
Italy (-1.8%) and Germany (-1.5%).
Demand for commercial vehicles in Eastern Europe (GVW ≥ 2.8
tonnes) totalled 149,790 units in 2008, a decline of 5.0% year
on year. The most significant decline was in the heavy vehicle
segment, which was down 15.8%.
Demand for buses in Western Europe totalled 39,300 units,
increasing 7.5% over 2007 with growth in all segments:
minibuses and truck derived buses (16%), intercity & coach
(5%) and city (2.5%). France, Germany and Great Britain posted
solid performance, while Italy remained stable and Spain
posted a sharp decline.
Iveco’s market share in Western Europe (GVW ≥ 2.8 tonnes)
stood at 9.9% (down 0.5 percentage points vs. 2007). Market
share in the light segment, down 0.3 percentage points to
8.4%, was impacted by competition from car-based models
(vans), as well as an unfavourable market mix. Iveco’s market
share in the medium segment fell 1.3 percentage points, to
24.9%, principally due to low-priced competition. Market share
of 10.4% for the heavy segment, represented a decrease of one
percentage point due, in part, to the unfavourable market mix.
Highlights
(€ millions) 2008 2007
Net revenues 10,768 11 , 1 9 6
Trading profit 838 813
Operating profit (*) 779 803
Investments in tangible and intangible assets (**) 426 347
- of which, capitalised R&D costs 120 78
Total R&D expenditure (***) 246 207
No. of employees at year end (****) 27,108 26,461
(*) Includes restructuring costs and net unusual income/(expense).
(**) Net of vehicles sold under buy-back commitments.
(***) Includes capitalised R&D and R&D charged directly to the income statement.
(****) Excludes employees of the powertrain businesses transferred to FPT (8,335 at year-end
2008 and 8,218 at year-end 2007).
Commercial Vehicle Market (GVW >_ 2.8 tonnes)
(units in thousands) 2008 2007 % change
France 221.8 224.5 -1.2
Germany 277.7 278.6 -0.3
Great Britain 196.2 201.2 -2.5
Italy 125.2 134.5 -6.9
Spain 86.5 138.5 -37.5
Rest of Western Europe 264.6 280.9 -5.8
Western Europe 1,172.0 1,258.2 -6.9
Commercial Vehicle Market by product (GVW >_ 2.8 tonnes)
(units in thousands) 2008 2007 % change
Heavy 267.3 267.2 –
Medium 73.5 76.5 -3.9
Light 831.2 914.5 -9.1
Western Europe 1,172.0 1,258.2 -6.9
Trucks and Commercial
Vehicles – Iveco