Category Archives: Sales

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Fiat Europe October/12: good and bad

The results for Fiat Group plus Jeep in Europe last month are good and bad. Good because Fiat brand decreased its fall and did well in the UK and Spain. But bad because Alfa Romeo and Lancia shrink and German and French registrations continue to fall. European car market fell 4.6% in October 2012 and the whole group did it too but even more: 5.8%. Its market share falls from 6.6 one year ago to 6.5. Total fall could had been worse if Lancia and Alfa Romeo counted for more share inside the group. Their sales in EU + EFTA countries, declined 15% in the case of Lancia and 17.6% for Alfa Romeo. Jeep, which sold only 2.322 units, is up 6%. Once again the group loses market share but this time the fall slows down as Fiat brand managed to increase it. The brand sold 2.7% less than previous period allowing it to increase its share from 4.7% to 4.8%. In October 2012 the group sold 64.736 units (4.016 units less), and Italy counted for 52.6% of them vs. 55.3% of October 2011. It means the group sells fewer cars in Italy (but keeps stable its share over there) and the fall outside Italy is not that deep. The main problems come from the native Italy and France, which is Alfa Romeo’s second market. Compared to its rivals, Fiat Group did much better than Renault, GM and Ford, but is a step behind PSA. VW Group continues to impress increasing its sales volume and therefore its share to a massive 25.5%, almost 4 times Fiat Group’s. Fiat brand occupies place number 8 even after Audi and BMW that now sell more cars. If market conditions continue to aggravate next year Fiat brand could be surpassed by Skoda, which sold 8.557 less cars and is really close to Toyota brand (120 units behind).

It is amazing the way VW manages to rise its market share. Audi and Mercedes stole market share from Renault, Ford and Opel, mainly. Fiat Group did not fall that much as Renault, GM and Ford. Hyundai keeps growing and in October the whole group (Hyundai + Kia) sold 61.810 cars, just 2.926 cars behind the whole Fiat Group. Source: ACEA

The reason for the tiny fall of Fiat brand is explained by the good results in the UK and Spain. Thanks to optimal registrations of the 500 model (in the top 10 best-selling cars in October), the brand is up a massive 39% in a market up 12%. Contrary to those good results, Alfa Romeo does not stop falling, this time 33%, which is too much compared to the good results of Chrysler, up 288%. Alfa Romeo sold 786 units in Oct/11. Last month Alfa Romeo and Chrysler combined sold 686 units. UK has become a kind of substitution market for French bad numbers but the group is still really small in terms of market share (3.4% for Oct/12 vs. 2.9% for Oct/11). Jeep did also good, up 178%, with 339 units delivered. Something similar occurs in Spain: the whole group’s share is up to 3.36% from 2.91% last year. It gained market share due to a lower fall compared to total’s market. Fiat Group plus Jeep fell 9.5% while Spanish car market declined 22%. Fiat brand is up 7.6%, Jeep is up 15%, but Alfa Romeo shrinks a massive 47% and Lancia sells 2 fewer cars. Once again, interesting results but not enough to help the troubled Italian and French figures.

Fiat Group is not really suffering outside Italy. Germany is the largest market in terms of units sold but is the lowest in terms of market share. Good for the UK, Spain and Austria. France is some how stable while the Netherlands and Switzerland did very bad. Source: Autoblog Español, Automotive Austria, ACEA, Rai Netherlands, Auto-Suisse, Carsitaly.net

In France things are going bad but during October 2012 the fall slows down. The market is down 7.8%, much better than previous months results, and Fiat Group declined its registrations by 7.7% thanks to a lower fall of Fiat brand mainly. The brand fell 5.3%, while Lancia increased its registration 1.8% (or 8 more cars), but Alfa Romeo is down 23% (or 259 fewer cars). As it happened in the UK, the 500 model was the protagonist of the month. A record of 2.204 units were sold in October, counting for 54% of the brand’s sales. In Germany, which is Fiat Group’s second most important market after Italy, the group had mix results: Fiat brand is up 8.9% in a market that grew up only 0.5%. But Alfa Romeo declined 20% and Lancia sold only 153 cars, down 0.6%. All brands together (plus Jeep, Ferrari and Maserati) sold 7.244 units against 6.784 in October 2011 (+6.8%). Market share is extremely low at 2.79% against 2.62% for Oct/11. Once again the Fiat 500 is the star with a record sales of 2.310 units. Germany was the largest market for Jeep brand in that month. Too bad in the Netherlands (-38%) where the group sold 1.199 units, down 48%. In Austria (-9%) they all sold 1.497 cars, down 0.4%. In Switzerland all brands sold 1.354 cars compared to 1.637 of last year. In Poland, where Fiat’s share is historically higher than in any other European country, the Group sold 2.169 units (8.5% of the market), down 9%. Generally speaking, Fiat is still strongly dependent on Italian market, which affects its performance as Italy is doing really bad while the good results in other markets is not enough.

This Figure shows the percentage of homeland sales. Almost 53% of Fiat Group’s sales in Europe corresponded to Italy during October 2012. Ford and GM depend on two main markets, while Fiat Group is highly dependent on just one market, which is not good at all. Surprisingly VW Group’s big sales are not exclusively in Germany, which counts for 41% of them. Source: ACEA, Autoblog Español

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Chrysler at its lowest market share in Canada

October 2012 wasn’t the best month for Chrysler in Canada. Though they got positive results and total sales are up 3%, it was not enough to compensate the rise of total market. Chrysler plus Fiat brand sold 17.504 units, just 455 units more than previous October, while total market was up 8%. That’s why Chrysler got its lowest market share so far this year: 12.9%. The reason for this result is pretty similar to what happened in USA in the same period. The two best-selling brands of the group increased their sales registration but those were negatively affected by the fall of the other two. Dodge (that counted for 39% of the total) is up 11%, while Ram delivered 5.751 of its cars, up 5% (the Ram is the best-selling car of the group in Canada and occupies place number 2 in Canadian ranking). It means that only Dodge gained market share, thanks partly to the good performance of Grand Caravan (by far the best-selling MPV in the country), up 13%, the Journey (+11%) and more units of the new Dart, which is now Dodge’s third best-selling car over there. The other two brands, didn’t do like that. Jeep was down 10% (or 344 units), and Chrysler fell a worrying 14% (or 205 units). The Wrangler did again quite well (+22%) but the Grand Cherokee slowed down (+3%), the couple Compass-Patriot fell (-10% and -32%), while the Liberty disappeared from sales figures with only 10 units registered. Chrysler’s result is a direct consequence of the extreme fall of 300 model, down 59%, and Town & Country (yes, is the same model of the popular Grand Caravan). Fiat sold 474 units of its 500 model, which is not good at all, well it is the worst second result so far this year and the fourth consecutive month of fall.

Chrysler Group does not include Maserati and Ferrari figures. Source: Good Car Bad Car.

Compared to rivals, Chrysler Group occupied place number 3, but Hyundai and Toyota are really close (369 and 403 units behind). From the 3 of Detroit, they all increased their sales below total market’s, but Ford was the leader in units delivered and growth, while GM fell 5%. VW Group was the best performer of the month. By brands, Toyota, Honda, Kia and VW did better than Dodge (talking about sales growth). In SUV, Jeep fell 10% but its rival from GM, GMC, fell 22%. By models, the Ram’s growth was overcome by F-150’s. Once again Chrysler is the absolute leader of MPV segment. ‘C’ segments models (Chrysler 200 and Dodge Dart) are still far away from the leaders. And the 500 keeps delivering more units but not as in the first half of this year, and seems to resist the arrival of the Chevrolet Spark. As a conclusion, Chrysler needs to upgrade its mid-sized SUV offer, keep its leadership in MPV segment, and boost the sales of the ‘C’ segment sedans, which are really popular in Canada. The arrival of Chrysler 100 should help.

Canada 2012, Chrysler Group sales by model. Source: Good Car Bad Car

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1 million Fiat 500 so far!

Not even Fiat expected these results. 5 years after its official presentation in Turin the small Fiat 500 has become one of the best hits of Fiat Group in the last 10 years. The resurrection of the 1957 Fiat 500 became a success that continues to grow and is now a referent for the future of Fiat brand. It appeared just when Fiat was struggling to survive proposing a new concept for a citycar, with a stylish approach, making use of its glorious past and promising future. Thanks to the great work of Centro Stile Fiat in Turin, which was in charged of exterior and interior design, the new 500 had everything to be successful: personality, style, and originality. Soon the car exceeded all its goals everywhere it was introduced. As soon as the car was available in dealerships, Italy was full of them in all of its roads. Then came the UK, France, Germany, Austria, Switzerland. After some months, the car began to be exported to Japan (an instant hit) and Australia. Produced in Tychy, Poland, the small car came to complete Fiat’s offer in A-Segment with the Panda, successful aswell. However the 500 was positioned one step ahead in the segment with a bit higher price to emphasize its idea of a exclusive-popular car. Unlike the Panda, the 500 was not only popular in Italy but in almost every market it was introduced. 2 years after its presentation, Fiat bought Chrysler and this was another reason to keep expanding the 500 success. Chrysler plant in Toluca, Mexico, was chosen to produce the American Fiat 500. With some tiny differences compared to the European version, the 500 made in Mexico meant the come back of Fiat brand to USA and Canada markets.

The largest markets for Fiat 500 are located in Europe. From next year US market will be 500 world’s largest one. Interesting to see that the car is not really popular in the countries it is produced, Poland and Mexico. Source: bestsellingcarsblog.net

It is one of Fiat’s most successful models in the last 20 years with so many prizes (2008 Europe’s Car of the Year) and so many special editions for targets that go from the Barbie-girl to the bad boys of Formula 1. Thanks to its success a historical name was born as a brand: Abarth. Fiat decided to overload the small car under Abarth brand with highly sporty specifications that worked extremely well. The car has been part of Fiat collaboration with other brands of the group such as Ferrari and Maserati, and also with fashion (Diesel and Gucci). The reason for this success is mainly explained by the combination of two things: a great product and awesome marketing. The way Fiat has sold the car should be a referent for doing the same for its other models and brands. It is not the cheapest car of the segment but is the second best-selling mini car in Europe. It is not the most comfortable car but has become a referent for single young people or couples. But Fiat has made a big advertising campaign, merchandising, sponsorships and big interaction with people that allow them to know the car and the most important, to desire it. All of that allowed the 500 to become the small city chic car that everybody wanted to have. The good thing is that more sales of 500 model did not affect its brothers Fiat Panda or Punto, as all of them are focused on different targets.

The Renault Twingo is the toughest rival so far, but the new Up! is becoming popular aswell. The Ka, not popular at all is based on the Fiat 500 and produced in the same factory. The Adam is the latest rival to arrive.

Some of Fiat/Abarth 500’s versions and Special Editions

The future for this model? Fiat wants to make use of current generation for at least 3 more years as the car enjoys of strong demand in USA, Canada, Brazil and Argentina, while in Europe is not suffering as much as a 5-year-old car is supposed to. The strategy is to enlarge the concept launching new 500 for other segments, such as the new 500L. Italy is well-known for its small and sporty cars. Fiat wants to extend the 500 success offering the concept of retro chic style in larger cars or even SUV. Some days ago Sergio Marchionne said it was possible that next Punto could make use of these values. It is more or less what Mini has done with its cars. But one thing they must remember is that doing more products like the 500 would not mean an immediate success. The formula implies an excellent marketing campaign, such as the one the 500 has always  had. 1 million units produced so far is a good number for an excellent product, and the best example of what Italians can do when they add passion to their work.

Fiat 500 Zagato presented in Geneva 2011 as a Show car

Fiat 500e makes its “green carpet” debut at the 2012 American Music Awards in Los Angeles, USA

Mopar developed its special 500 for USA

Even Gadafi fell in love with the car. He asked for a special edition only for him

Part of the success of this car is the good way it has been promoted

Nice ideas that generate or increase the model’s awareness

The car has been part of several Ad campaigns with important personalities. Here with Fernando Alonso

Jennifer Lopez was in charged of promoting the car in USA. It worked

Other personalities have chosen the 500. In the picture, Pep Guardiola with its Abarth 500

Even the interior can be personalized.

I also make part of 500 lovers. This is an illustration I made for my studies of Car design.

 

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October/12: Fiat Brazil at its highest market share

Brazilian car market continues to be the place of good news for Fiat. Last month the brand got its best market share so far this year with 26.17%. It is also the highest share since April 2009. This great result was possible thanks to a big growth in Fiat’s registrations much more than industrywide gain. Fiat was up a massive 45% (the second best performance of this year) while Brazilian car market was up 23%. Compared to October 2011 Fiat sold 20.313 more passenger cars, most of them because of more registrations of the couple Palio-Siena. After the historical record in August for both, Brazilian market and Fiat itself, partly inflated by the fact that IPI reductions could be cut, a big fall was evident in September. Since then, with two extensions of IPI and political measures looking to facilitate credit to buyers, the market is back in October with almost 327.000 units. IPI, for Imposto sobre Produtos Industrializados, is a Brazilian basic tax applied to industrial products produced in or outside Brazil. In the case of Brazilian products, the IPI is calculated based on the sales price, while in the case of imports, it is on sales price plus shipping costs and import duty. Dilma Roussef government places auto industry as one of the most important for future economic development. It is why they decided to reduce this tax as an incentive for the industry and when it all seemed the reduction was going to be cut at the end of August, the government decided to keep the reduction until December 31st. It allows Brazilians to buy cheaper cars, most of them locally produced as there is one ‘Super IPI’ with a higher tax that applies to imported cars. For example, a locally produced Gol with 1.0 liter will pay 0% of IPI until the end of this year, while an imported Picanto with the same engine has to pay 30% of IPI.

Sales figures for passenger cars. In October Fiat sales grew up two times more than industrywide. Thanks to the reduction of IPI tax, which is applied to final price of the car, most of Fiat models increased their registrations. Source: carsitaly.net, Auto Esporte

Fiat is making use of this tax reduction. The Palio had its best month in terms of share and the second best result in terms of units delivered. Compared to October/11 the ‘B-Segment’ car is up 113% which is an awesome result for mass product such as the Palio. More than 10.000 more Palios were sold last month, accounting for 49% of total rise. The introduction of the sunroof feature may had an impact on this result. The same happened to the ‘B-Sedan’ Siena, up 135%! during that month the Siena got the first place among small sedans. The rise of Palio and Siena counted for 17.195 more cars, 85% of the total. They were both the main stars of Fiat performance in October as the small Uno is up just 3%. The result of Palio and Uno should warn Fiat people as there may be a sort cannibalism between them, specially with the basic versions of the Palio. Down in the list the Strada continues to be Fiat’s most stable model as it keeps being the leader of the ‘C-Pickup’ segment and it is pretty old now. Other good performances: the Punto, boosted by the strong facelift and the small 500 which sold again more than 1 thousand units. Compared to competition, the Palio continues to be behind the Gol but it seems to resist, at least for now, the arrival of all-new Hyundai HB20 and Chevrolet Onix, both models to difficult Palio and Gol’s domination. In other segments, the Idea loses share against the new Spin from Chevrolet, which though it is not considered a small MPV (it is closer to a ‘C-MPV’) its features and prices affects directly the Fiat model. The 500 should be preparing for the arrival of Brazilian-made VW Up!. Anyway, Fiat continues to be Brazil’s leader but coming months will complicate its leadership as more competition will arrive and no new Fiats are expected to arrive shortly. All of that takes place in a market strongly healthy and not dependent on government incentives, well the IPI tax is just that, and when the government reduces it, the market reacts positively as it can buy cheaper cars. The opposite situation of toxic government helps that took place in Europe for years, which allowed many people to buy a car without taking into account the fact that they did not even need one.

Brazil, October 2012. The Uno keeps being Brazil’s best-selling city car but it seems a facelift is needed. The new Palio and Siena are doing great. Just the most expensive cars (500, Bravo and Linea) are doing bad. Source: bestsellincarsblog.net

 

Click here to see Brazil November 2012 Results

Click here to see Brazil September 2012 Results

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A possible solution to troubled Italian sales

Photo by: ilgiornale.it

It is my belief that during difficult times such as current European car industry crisis, any idea looking for solving it is welcome, no matter the impact it may have. The situation is that bad that European authorities are finally considering Sergio Marchionne’s idea of assisting the industry and control over capacity problem. But even the most optimistic previsions indicate that next year will be at least as bad as current one. The reasons for this scenario are well-known by everybody but not the possible solutions. Not all car makers are struggling to sell their products. In one side there are French, Italian and American brands trying to resist. In the other side there are VW, BMW and Mercedes, relatively comfortable as they keep earning money in China. That’s why getting to a common solution is difficult, well interests are different and VW, the European leader, is some how benefiting from the mess in which Fiat, PSA, Renault, Ford and Opel are nowadays. In the case of Fiat, the Italian car maker has two big problems: its Italian factories working at 50% of capacity (and therefore the problems with union labors) and the sharp drop of Italian car registrations (along with Spain, Italian fall is the worst of big European markets). Italy represents 54% of Fiat’s sales in Europe. YTD figures show that Italian market has dropped 20% and of course Fiat, as the leader of that market, experiences a big fall too.

Looking for solutions implies understanding the problem. Italians stop buying cars because of economic situation and the bad perspective for coming years. The country is part of a deep recession in most of Europe which is the result of high public expenditure, low revenue and high government inefficiencies. After years of this terrible combination, European governments finally decided to execute a severe austerity plan, firing public employes, and increasing taxes. Italy is part of that austerity plan and Italians are suffering the consequences: less money to save as they have to pay more taxes, and the worst, less job offer. Those looking for a job are coming thru a difficult time, while those having one struggle to keep it in an economy that will shrink 2.4% this year, with unemployment rate around 11%, according to predictions of Confindustria, Italy’s employers’ lobby group. The uncertainty that reigns among Italians is big enough to diminish their spending of everything that is not strictly necessary. Cars is part of that decision and Fiat knows that. If people are not sure of their economic future they cut expenses and they begin with the things that are not vital. Cars are not a basic need so when someone is not sure of keeping his job in coming months, one of the last things this person will think about is buying a car. It explains why Italian market sinks and will continue to do it as far as the economic situation and job offer don’t get better.

The problem is that Fiat can’t wait till things get better. They need to sell cars and increase production levels of its Italian factories and must do it as soon as possible. Understanding the client’s needs and behavior is always a good way to have the appropriate approach in order to sell. And that’s exactly what Fiat should do at least in Italy, its homeland. If the problem for a big part of the population is keeping its job in coming months, then Fiat could use its strategic position as the major private company in Italy to offer some buyers the possibility of buying their new cars with a sort of unemployment insurance. I mean, Fiat as a big player of Italian economy, is able to neutralize the risk of possible future unemployment of potential buyers. They can offer clients to buy their cars (through a credit) and give them the possibility of suspending monthly payments if they ever become unemployed. Of course, it would not apply to everybody, and only in those cases in which Fiat, using its strategic position, makes a close analysis of several companies that could be considered candidates as they might not have problems in the future. That is, Fiat would assume part of the risk the client has of becoming unemployed and so in case that happens (Fiat should only work with those companies with less than 10% of probability of collapse), that client could suspend payments for the time he does not get a new job. The client that could be benefited from this should pay certain quantity of money down and of course a higher interest rate for the credit. For this, Fiat should make a deep analysis of all industries and companies and then make a classification according to their economic situation and future perspectives. Only those buyers working on those companies with low risk exposure could applied for this particular purchase. And in case they become unemployed, they would keep their debt and will be able to use the car. In other words, Fiat would be offering the opposite of normal credits without any money down: instead of not receving the money now, Fiat would get it now but might not receive it in the future, if things get bad for the client. Anyone could say that this could be a good idea of buying a car and then stop paying for it. But when anyone becomes unemployed the very first thing this person looks for is to find a job immediately.

This approach could be a good way of telling clients that Fiat understands their situation and it can support them in case they need help. Fiat would not be risking too much as they would only give this possibility to ‘safe’ companies’ employees and might increase its car registrations, currently affected by this uncertainty about job among potential buyers. The bad side of the equation is that it would not be a good message for the employed people who can’t apply for the credit. Fiat would be telling them their job is not secure and making business with them would not be a good deal. One last thing: this credit should only apply for Fiat Punto, Lancia Ypsilon or Alfa Romeo MiTo. ‘B-Segment’ is Fiat’s major problem nowadays, with the Punto that shrinks 34% so far this year, and the Ypsilon that, no matter its youth, fell 32% in October and 40% in September. And there is the MiTo, which never took off in terms of sales. Most of Fiat’s fall in sales is due to Punto’s drop as the Panda is stable, up 3% YTD. Those thinking more of their job whose income really depend of it, are considered middle-class Italians who normally buy ‘B-Segment’ cars. One person in this situation would not buy a 500, the chic and expensive citycar. They would not buy either the Bravo/Giulietta/Delta models, which are more expensive. If they wanted to change their car they would choose a Punto or Ypsilon, which are affordable and some how comfortable. So the target fits perfectly the products, and in the case of the MiTo, it needs more promotion to get a proper level of sales figures, and this could be a good idea to do it. Or what do you think of this idea?

Last year the Punto counted for one third of Fiat brand sales in Italy while the Ypsilon is almost doubles that number. YTD change for the period January-October 2012 vs. January-October 2011. Source: carsitaly.net and FGW Data basis

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USA market and Chrysler slow down in October/12

Once again Chrysler along with all American car market slow down their growth after months of spectacular results. It does not mean that the market is now in a decline phase. The market seems to be stabilizing though it is still far from pre-crisis records. The same happens to Chrysler, still the best performer of the 3 from Detroit. The Group increased its sales registration 10% while the market was up only 7%. Its market share grew from 11.2% last year to 11.6%, which is pretty good but still far away from Chrysler’s target of reaching 13% by the year 2014. One important fact to considered is that hurricane Sandy had an impact on car sales at the end of the month as the area affected contributes to 25% of total sales of the country. The good result of Chrysler Group could had been better if it wasn’t because of the hurricane and Jeep brand, which had a fall for the first time since April 2010. However the group’s results are well-distributed among its 5 brands so Jeep’s tiny fall was compensated by the good performance of the major of them, Dodge, up 20%, and Ram, up 17%. Chrysler brand lost market share as it had lower increase than total markets’ (+5%) while Fiat 500 continues to grow. Compared to competition, Dodge did much better than Ford and Chevrolet, and only VW, among big ones, had a better growth. Jeep lost market share in SUV segment, which was gained by GMC, just 453 units behind. Due to the great sales performance of the group during March-September, October results are under total year’s average: 126.185 units vs. 137.686.

USA car sales registrations October 2012. Chrysler Group continues to be Detroit’s best performer thanks to good results of Dodge and Ram. Its market share is still distant from 2014 target. Maserati and Ferrari sales figures not included. Source: www.carsitaly.net, bestsellingcarsblog.net, Good Car Bad Car

The Ram Pickup did quite well, up 20% or more than 4 thousand units. It is still the best performer of the 3 pickups from Detroit (Ram, F-150 and Silverado) and it allowed it to increase its market share among them from 19.09% last year to 20.94%, almost 2 points. Far behind, more than half of Ram sales, there is the Jeep Grand Cherokee, with lower positive increase but now behind the Explorer more than 1.600 units. Wrangler’s sales registrations were as many as Grand Cherokee’s, both counting 67% of Jeep’s total sales. The reason for Jeep’s fall is that the small Compass was down 52%, its worst result so far this year. It seems the facelift it received has not been successful at all. In the other side there is Dodge  with its Caravan, up a massive 49%, when one year ago its sales dropped 13%. The reason for this resurrection is unknown but this minivan is quite old to have this good results. Coming generation should arrive in late 2013, early 2014. The arrival of the Dart is also helping boost sales registrations as other models slow down their growth. Even though the new ‘C-Segment’ sedan is expected to finally take off in January 2013 when it is expected the highest production levels in Belvidere plant (12.000 units/month). Fiat sold 3.720 units, making US market the world’s largest one for this model, and 36 units above Italian figures. The 500 was up 89% compared to October 2011 when the small Fiat began to have troubles in terms of sales in USA (until February 2012). Abarth version continues to boost its sales but also the arrival of the 500 Turbo, on sale since October.

Good for the Ram, with more market share among the 3 large pickups. Bad for the G. Cherokee that loses its battle against Ford Explorer. Very good for MPV, the absolute leaders of the segment. Source: bestsellingcarsblog.net

The Dart has not taken off yet but gained market share among ‘C-Segment’ models. It just sold 220 units more than September but it is expected to reach around 12.000 from next year. Source: bestsellincarsblog.net

 

Click here to see USA November 2012 Results

Click here to see USA September 2012 Results

 

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Brazil and Argentina September results. Any problems?

Fiat Uno is Brazil’s second best-selling car. Photo by netcarshow.com

September 2012 was a good and bad month for car registrations in Brazil and Argentina. Fiat Automoveis in Brazil was up 15.5% in a market down 5.2%. Meanwhile in Argentina things are not that good, as Fiat was down a massive 44.3%, much more than total market’s, down 24%. With a big market share in both markets, Fiat Auto depends a lot on them as European sales plunge and there is no solution yet. It is why it was so shocking not to see any all-new model in Sao Paulo last week, which is the most important car show in the region. Brazil and Argentina make part of MERCOSUR, one of world’s largest union trades, and their industry is more or less the same, sharing a lot of models and production lines.

September 2012 Brazil, Fiat’s top 3 best-selling models against its main rivals from VW. Source: bestsellingcarsblog.com, carsitaly.net

Fiat sold 54.800 passenger cars in Brazil last month, less than previous month (in which Fiat plus all its LCV brands sold a record of 100.000 cars). However, due to a tiny fall of the whole market, Fiat increased its market share and had its best so far, 25.57%. The reason for this is the great performance of new Palio, up 91%, which after one year of its official launch, seems to finally take off, no matter the difficult times it will face in the next months with the arrival of the updated VW Gol and new Hyundai HB20 and Chevrolet Onix, all presented in Sao Paulo. The new Siena did also great, up 64%, and it was the best-selling small sedan during that month, beating Chevrolet Corsa Sedan and VW Voyage. The popular Uno stays back, down 9%, as its main competitor, the VW Fox, grows 42%. It all seems that the Uno reached its top of its commercial life, while the Palio and Siena still have a bit way to grow. What’s missing is the arrival of new generation Strada, still strong but soon will get old.

Argentina’s car sales September 2012. Notice that new Fiat Palio is the only model from ‘B-Segment’ to increase its sales figures. Very bad for the Uno, Punto and Fiorino. The coming facelifted Punto and new Doblo will help to boost Fiat registrations. Source: bestsellingcarsblog.com, Autoblog Español

In Argentina Fiat brand sold a bit more than 5 thousand cars and contrary to what happened in Brazil, it got its worst market share so far this year, 7.97%. September was the fourth consecutive month of sales decrease for the company, in a market that shows signals of depletion. The boom the car industry had last year seems to finish this year as some economic problems affect buyers decision. Only the new Palio has good performance, up 16%. The Siena is down an alarming 56%, waiting for the new generation to come in the next weeks. The bad performance of the Siena (historically Argentina’s best-seller Fiat) plus the Uno down 57%, can explain the reason of the fall of the brand. These falls are explained by lower general demand but also because of some problems of stock as customs in the border with Brazil had some bureaucratic problems. Nevertheless Fiat has just presented the new Siena (starting at $17.300) and from some weeks ago it offers the Bravo, imported directly from Italy, starting at $29.900 US dollars. It is also working on more launches, with the new Punto, coming from Brazil, or the Idea. Even the Doblo, the passenger LCV made in Turkey, is part of the new cars Fiat will present soon, as this kind of vehicles is some how popular and Fiat has an important market share.

The Grand Siena was already presented in Argentina. It will be positioned between the regular Siena, locally produced, and the Linea. Photo by Carsale

 

Click here to see Brazil October 2012 Results