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Toyota keeps top global automaker crown, sells 10.15 mn in 2015
By Peter BRIEGER
Tokyo (AFP) Jan 27, 2016


Fiat Chrysler net profit down 40% due to Brazil, China
Milan (AFP) Jan 27, 2016 - Italian-American carmaker Fiat Chrysler Automobiles (FCA) said Wednesday it suffered a 40 percent drop in earnings last year due to a poor performance in Brazil, Argentina and China.

The giant said it made a net profit of 377 million euros ($410 million) last year, way below the 539 million euro profit expected by analysts.

Sales were down 33 percent in Latin America, reflecting "continued macroeconomic weakness in the region" which created poor trading conditions in Brazil and Argentina, the company said in a statement.

It also blamed "the devaluation of the Argentinian Peso" and a new currency system in Venezuela for its rocky performance.

Shipments were down nearly as much to the Asia Pacific regionb, largely because of a supply-chain interruption due to the Tianjin port explosion in China in August, as well as strong competition from local producers.

The carmaker saw a drop in shipments in Australia as well, resulting from price increases.

It was also hit by the costs involved in recalling millions of vehicles in 2015 and millions of euros (dollars) in fines for failing to report key safety data to regulators.

But thanks to the Jeep Renegade and Fiat 500X things looked rosier in Europe, with shipments up 13 percent, and in North America, where revenues increased by a third.

- 'Stealth-like' -

Overall sales, including those of luxury sports car unit Ferrari, raced ahead by 18 percent to 113.2 billion euros.

And the group, which spun off the glamorous formula one racing brand on January 4, expects sales to rise this year from the 110 billion euros it booked in 2015 excluding Ferrari.

It said it expects operating earnings (adjusted earnings before interest and tax) to rise above 5 billion euros in 2016 from the 4.79 registered in 2015.

Adjusted net profit is seen as rising to 1.9 billion euros from 1.7 billion in 2015.

It is banking on the success of new models, from the nippy Fiat Tipo and Fiat 124 Spider to the purple Jeep Wrangler Backcountry and "stealth-like" black Jeep Grand Cherokee SRT Night.

The company also said it expected "a return to modest profitability" in Latin America in 2016 and an improvement in the second half of the year in the Asia Pacific -- once again thanks to the Jeep.

Production of the Jeep Cherokee began at the Changsha plant in China in November, and other Jeep models will follow.

FCA shares fell 3.8 percent on the Milan stock exchange, which was down 1.14 percent in mid-afternoon trading.

The company's shares have already taking a beating this month. They tumbled in Milan and New York on January 15 after two US dealerships filed a lawsuit accusing the carmaker of inflating car sales.

Fiat Chrysler strongly rejected the accusations and vowed to defend itself "vigorously" in the case.

Toyota on Wednesday kept the title of world's biggest automaker for the fourth straight year after saying it sold 10.15 million vehicles globally in 2015, driving past Volkswagen and General Motors.

Dented by a pollution-cheating scandal, Volkswagen earlier logged sales of 9.93 million vehicles worldwide, while Chevrolet and Cadillac maker GM moved 9.8 million last year.

Toyota shares jumped 3.80 percent to end at 6,881 yen ($58) in Tokyo on Wednesday, boosted by reports it is in talks with Suzuki over a partnership to build compact cars for emerging markets, including India.

Strong North American demand drove Toyota's figures as total sales slipped 0.8 percent from 2014, largely owing to a slowdown in Japan where a weak economy hit demand.

Toyota is also facing sluggish sales in Thailand and Indonesia while a Japanese consumption tax hike planned for next year could spark a rush in buying -- and subsequent slowdown as prices go up.

The Japanese giant was likely to keep the top automaker crown for at least another year, but a slowdown in top vehicle market China could hurt its numbers, analysts said.

"Toyota is benefiting from the strength of the US auto market, and we expect it to continue to grow this year, so the company should keep its crown," said Yoshiaki Kawano, a Tokyo-based analyst at research firm IHS.

"But in China, Toyota lags behind VW or Nissan".

In the first half of the year, the German giant, whose other brands include Porsche and Audi, was set to become the world's biggest automaker as it rode momentum in emerging economies.

But then it posted its first drop in annual sales for more than a decade, as the company was hammered by a massive pollution cheating scandal.

Volkswagen was sideswiped by stunning revelations in September that it had fitted 11 million vehicles with devices designed to dodge pollution tests.

The US government has said it was suing VW for $20 billion in civil penalties over the scandal.

- Quality issues -

Toyota broke GM's decades-long reign as the world's top automaker in 2008 but lost it three years later to the US firm, as Japan's 2011 earthquake-tsunami disaster dented production and disrupted the supply chains.

However, in 2012 it once again overtook its Detroit rival and has remained on top since.

On Wednesday, rival Nissan said its global sales hit a calendar-year record 5.42 million units. Including Nissan's French partner Renault, the group's 8.22 million combined sales put it in fourth place globally.

South Korea's Hyundai sat in fifth spot with 8.01 million vehicles sold.

Toyota's upbeat announcement comes despite the firm struggling to recover its reputation for safety after the recall of millions of cars around the world for various problems in recent years, including an exploding air bag crisis at supplier Takata.

At least 10 deaths globally and scores of injuries have been linked to the faulty airbags fitted in cars made by some of the world's leading auto giants.

Toyota, maker of the Camry sedan and Prius hybrid, had stopped building new plants for several years, and turned its focus to quality rather than sales volume.

The company is also overhauling its production methods, vowing to slash development costs to try to offset any downturn in the market and squeeze more productivity out of existing plants.

Toyota is pushing further into the fast-growing market for environmentally friendly cars, especially in China where officials are struggling to contain an air pollution crisis.

It has also released its first mass-market hydrogen fuel-cell car, the Mirai, and redesigned the top-selling Prius.

Volkswagen's new chief executive, meanwhile, has said his firm was abandoning its ambition to become the world's biggest carmaker.

"For me, this obsession with unit sales and the ambition to constantly reach new records makes no sense," Matthias Mueller told the weekly WirtschaftsWoche in an interview published in December.

"I'm not going declare sheer size as an end in itself."

His predecessor Martin Winterkorn had focused on VW overtaking Toyota as the world's biggest carmaker by 2018.

pb-anb/ds

TOYOTA MOTOR

NISSAN MOTOR

HYUNDAI MOTOR

GENERAL MOTORS

IHS Global Insight

RENAULT

VOLKSWAGEN

TAKATA


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