Chrysler 2010 Annual Report Download - page 123

REPORT ON
OPERATIONS
122
OPERATING
PERFORMANCE:
DISCONTINUED
OPERATIONS
TRUCKS AND COMMERCIAL VEHICLES
Iveco
HIGHLIGHTS
(€ million) 2010 2009
Net revenues 8,307 7,183
Trading profit/(loss) 270 105
Operating profit/(loss) (*) 240 (90)
Investments in tangible and intangible assets (**) 273 217
of which capitalized R&D costs 138 84
Total R&D expenditure (***) 214 169
No. of employees at year end (numero) 25,583 24,917
(*) Includes restructuring costs and other unusual income/(expense)
(**) Net of vehicles sold under buy-back commitments and leased out
(***) Includes capitalized R&D and R&D charged directly to the income statement
COMMERCIAL PERFORMANCE
Following the sharp contraction experienced in 2009, demand in Western Europe for trucks and commercial
vehicles (Gross Vehicle Weight or “GVW” ≥ 3.5 tons) increased 6.3% to 528,757 units, driven by a recovery in
almost all major markets, except Italy (-3.2%), with Spain up 5.9%, the UK 9.2%, France 5.2% and Germany
rising 15.7%.
The light segment (GVW 3.5-6 tons) saw a 9.0% improvement over 2009, with significant gains in the UK
(+14.9%), Germany (+11.1%) and France (+10.3%). Italy was down 2.3%.
Demand in the medium segment (GVW 6.1-15.9 tons) contracted 1.5% over 2009. Declines in Spain (-8.9%),
the UK (-17.1%), Italy (-11.0%) and France (-15.0%) were partially offset by the strong performance in Germany,
which was up 18.4% over the prior year.
For the heavy segment (GVW ≥ 16 tons), the market improved 3.5% year-over-year driven by a recovery in
demand in the second half. Spain (+21.6%), Germany (+22.6%) and the UK (+5.0%) all ended the year up over
2009 levels, while Italy (-3.6%) and France (-1.8%) recorded declines.
For Eastern Europe (GVW ≥ 3.5 tons), market demand totaled 55,749 units for 2010, increasing 13.5%
year-over-year. The light and medium segments again registered a contraction for the full year, down 1.9% and
0.6% respectively, despite improved demand toward the end of the year. Only the heavy segment (GVW ≥ 16
tons) recorded a significant reversal in trend, improving 47.0% over the previous year as demand recovered in
several key markets: Poland (+45.7%), Romania (+37.3%) and the Czech Republic (+37.6%).
For buses, demand in Western Europe, totaling 32,288 units, was down 8.9% over 2009 on the back of
declines in all segments: Citybus (-13.5%), Intercity & Coach (-6.0%), Minibus & Truck Derived (-7.2%). Demand
for buses decreased in all Western European markets, with the exception of Italy, which was up 23.5% mainly
due to sustained demand for urban vehicles.