Chrysler 2014 Annual Report Download - page 10

82014 | ANNUAL REPORT
Letter from the
Chief Executive Officer
Letter from the Chief Executive Officer
Shareholders,
Our Group has just closed a truly momentous year that included: the acquisition of the remaining non-controlling
interest in Chrysler; the formation of Fiat Chrysler Automobiles – the world’s seventh-largest automaker; the debut
of our shares on the NYSE; our return to the U.S. equity markets; record sales for both Jeep and Maserati; and Alfa
Romeo’s return to North America after a 20-year absence.
We presented an ambitious five-year plan to grow our business and continue building an extraordinary enterprise with
even greater potential to deliver sustainable long-term value.
To further enhance shareholder value, we also announced our plan to spin Ferrari off from FCA, list it on the stock
exchange and distribute FCA’s remaining Ferrari shares to FCA shareholders. We believe this course will give Ferrari
the necessary independence, as well as ensuring it a solid platform for future growth opportunities.
Our strong operating results in 2014 are testimony to our commitment to our values, our ability to remain focused on
our key objectives and our determination to continue building a truly unique organization. In fact, the Group was able
to post a profit in all regions for the fourth quarter of the year.
Worldwide vehicle shipments were up 6% over the prior year to 4.6 million units, driving revenues 11% higher to
€96.1 billion.
Adjusted for unusual items, EBIT was €3.7 billion and net profit was €955 million.
Available liquidity at year end totaled €26.2 billion.
In order to further fund the capital requirements of the Group’s five-year business plan, the Board of Directors has
decided not to recommend a dividend on FCA common shares for 2014.
Looking at the performance of our mass-market operations by region, in NAFTA we continued to outperform the
market, with sales up 15% over the prior year.
In the U.S., we closed the year posting our 57th consecutive month of year-over-year sales gains and our best annual
sales since 2006. In addition, our market share was up 100 basis points which was the highest share growth of any
OEM. In Canada, we recorded 61 straight months of growth and the strongest annual sales performance in our
history.
In LATAM, results were positive, although below the prior year’s level primarily as a result of weaker demand in the
region’s main markets. Despite those conditions, FCA maintained its leadership in Brazil, a position we have held for
13 years, increasing the lead over our nearest competitor to 350 basis points. In Argentina, market share increased
140 basis points.
In APAC, we posted strong earnings on the back of significant volume growth. Retail sales in the region, including JVs,
were up 34% and we significantly outperformed the industry in each major market.
In EMEA, there were initial signs of a recovery in Europe with the industry registering a 5% increase – the first after six
straight years of decline.
On the back of a more favorable product mix, increased volumes and industrial efficiencies, EMEA reduced losses
significantly. EBIT adjusted for unusual items improved by €198 million for the full year, with a return to profitability in
the fourth quarter indicating that we are turning the corner in the region as our focus on producing premium vehicles
for export begins to pay off.