Chrysler 2014 Annual Report Download - page 51

2014 | ANNUAL REPORT 49
LATAM Dealer and Customer Financing
In the LATAM segment, we provide access to dealer and retail customer financing through both wholly-owned captive
finance companies and through strategic relationships with financial institutions.
We have two wholly-owned captive finance companies in the LATAM segment: Banco Fidis S.A. in Brazil and Fiat
Credito Compañia Financiera S.A. in Argentina. These captive finance companies offer dealer and retail customer
financing. In addition, in Brazil we have a significant commercial partnership with Banco Itaù, a leading vehicle retail
financing company in Brazil, to provide financing to retail customers purchasing Fiat brand vehicles. This partnership
was renewed in August 2013 for a ten-year term ending in 2023. Under this agreement, Banco Itaù has exclusivity
on our promotional campaigns and preferential rights on non-promotional financing. We receive commissions in
connection with each vehicle financing above a certain threshold. This agreement applies only to our retail customers
purchasing Fiat branded vehicles and excludes Chrysler, Jeep, Dodge and Ram brand vehicles, which are directly
financed by Banco Fidis S.A.
APAC Vehicle Sales, Competition and Distribution
APAC Sales and Competition
The following table presents our vehicle sales in the APAC segment for the periods presented:
For the Years Ended December 31,
2014(1)(2) 2013(1)(2) 2012(1)(2)
APAC Group Sales Market Share Group Sales Market Share Group Sales Market Share
Thousands of units (except percentages)
China 182 1.0% 129 0.8% 57 0.4%
India(3) 12 0.5% 10 0.4% 11 0.4%
Australia 44 4.0% 34 3.1% 23 2.1%
Japan 18 0.4% 16 0.4% 15 0.3%
South Korea 6 0.5% 5 0.4% 4 0.3%
APAC 5 major Markets 262 0.9% 194 0.7% 109 0.5%
Other APAC 5 — 6 — 6 —
Total 267 — 199 — 115 —
(1) Our estimated market share data presented are based on management’s estimates of industry sales data, which use certain data provided by
third-party sources, including R.L. Polk Data, and National Automobile Manufacturing Associations.
(2) Sales data include vehicles sold by certain of our joint ventures within the Chinese and, until 2012, the Indian market. Beginning in 2013, we
took over the distribution from the joint venture partner and we started distributing vehicles in India through wholly-owned subsidiaries.
(3) India market share is based on wholesale volumes.
The automotive industry in the APAC segment has shown strong year-over-year growth. Industry sales in the five
key markets (China, India, Japan, Australia and South Korea) where we compete increased from 16.3 million in 2009
to 28.2 million in 2014, a compound annual growth rate, or CAGR, of approximately 12 percent. Industry sales in
the five key markets for 2013, 2012, 2011 and 2010 were 26.1 million, 23.8 million, 21.3 million and 20.3 million,
respectively. China was the driving force behind the significant growth in the region. China’s industry volume increased
from 8.5 million passenger cars in 2009 to 18.4 million passenger cars in 2014, representing a CAGR of 17 percent.
Industry volumes in China for 2013, 2012, 2011 and 2010 were 16.7 million, 14.2 million, 13.1 million and 11.5 million
passenger cars, respectively. In 2014, the five key markets grew by 8 percent over 2013, primarily driven by a 10
percent increase in China.