Chrysler 2009 Annual Report Download - page 88

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FIAT GROUP AUTOMOBILES
Fiat, Abarth, Alfa Romeo, Lancia and Fiat Professional
HIGHLIGHTS
(E million) 2009 2008
Net revenues 26,293 26,937
Trading profit/(loss) 470 691
Operating profit/(loss) (*) 217 460
Investments in tangible and intangible assets 1,495 2,288
of which capitalised R&D costs 446 641
Total R&D expenditure (**) 669 843
Cars and light commercial vehicles delivered (no. of units) 2,150,700 2,152,500
No. of employees at year end 54,038 52,634
(*) Including restructuring costs and other unusual income/(expense).
(**) Includes capitalised R&D and R&D charged directly to the income statement.
COMMERCIAL PERFORMANCE
After a particularly negative start to the year, the scrapping incentives introduced in several major markets led
to a gradual recovery in demand in Western Europe, where the passenger car market closed the year with
volumes slightly higher than 2008 (+0.5%).
These incentives had a very positive impact in Germany, where demand increased 23.2%, and in France, where
the market grew 10.7% over 2008. In Italy, government incentives helped maintain demand substantially in line
with 2008 (-0.2%). In both the UK and Spain, however, where incentives were introduced towards the end of the
first half, demand was down 6.4% and 17.9%, respectively.
Outside of Western Europe, performance in the Sector’s key markets was mixed. In Poland, demand remained
stable (+0.1%), while in Brazil there was a further increase (+12.6%) over the positive performance in 2008
underpinned by government purchase incentives and a generally favourable economic environment.
FGA’s strong offering of environmentally-friendly cars enabled the Sector to fully benefit from eco-based
government incentives. Fiat Group Automobiles continued to make positive share gains in the passenger
car market, reaching 32.8% in Italy (+0.9 percentage points over 2008) and 8.8% in Western Europe (+0.6
percentage points). FGA’s relative performance was particularly strong in Germany (+1.5 percentage points to
4.7%) and positive also in the UK (+0.6 percentage points to 3.5%). Market share for the Fiat brand increased to
7.1% in Western Europe (+0.5 percentage points over 2008) and 25.5% in Italy (+0.4 percentage points). Lancia
and Alfa Romeo also increased market share in Western European, each gaining 0.1 percentage points to 0.9%
and 0.8%, respectively.
The light commercial vehicle market in Western Europe declined 27.4% over 2008. Demand fell in all major
markets: France (-18.8%), Italy (-21.4%), Germany (-24.8%), the UK (-35.5%) and Spain (-35.6%).