Fiat Chrysler Automobiles NV - Company Strategy & Performance Analysis
Fiat Chrysler Automobiles N.V. (FCA) is engaged in the design, engineering, manufacture, distribution and sale of vehicles, components and production systems. The group operates in the Americas, Europe, Asia-Pacific, Middle East, and Africa. FCA conducts its business through six segments: four regional mass-market vehicle segments (NAFTA, EMEA, LATAM, and APAC), one global luxury brand segment (Maserati), and a global components segment. The group has 162 manufacturing facilities across the globe and 87 R&D centers. FCA operates in approximately 40 countries and sells vehicles directly or through distributors and dealers in more than 140 countries. In FY2016, the group sold 4.5 million vehicles across geographies. The group is headquartered in London, the UK.
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Fiat Chrysler's LATAM segment contributed significantly to the company’s revenue
The company’s LATAM segment grew by 32.4%, from US$6,806.1m in 2016 to US$9,009.9m in 2017 owing to improving economic conditions and an increase in shipments of the Fiat Mobi, Fiat Argo and Jeep Compass. The NAFTA segment contributed accounted for 59.5% of revenue but decreased by 2.5%, from US$76,358.9m in 2016 to US$74,487.0m in 2017 owing to lower fleet volumes as a result of the planned discontinuation of the Jeep Patriot, Dodge Dart and Chrysler 200. The EMEA segment grew at a rate of 6.0%, from US$24,008.8m in 2016 to US$25,442.9m in 2017 attributable to a rise in the volume of the Alfa Romeo Stelvio, Jeep Compass and Fiat Tipo Family.
Fiat's NAFTA segment accounted for 59.5% of the group's total revenue
The NAFTA operations support the distribution and sales of mass market vehicles in the US, Canada, Mexico, and Caribbean islands under the Abarth, Chrysler, Dodge, Fiat, Jeep, Ram, and Alfa Romeo brands. In FY2017, it generated revenues of US$74,487.0m, after a decline of 2.5% from US$76,358.9m FY2016, accounting for 59.5% of the group's total revenue. This was due to lower shipments driven by planned reductions which were partly offset by an increase in shipments for the Ram and Alfa Romeo brands, Jeep Grand Cherokee and the all-new Jeep Compass.
The EMEA segment accounted for 20.3% of the group's total revenue
The EMEA segment supports the distribution and sale of mass-market vehicles in Europe, the Middle East and Africa primarily under the Abarth, Alfa Romeo, Dodge, Fiat, Fiat Professional, Jeep, Lancia an Ram brands. Revenues generated by the EMEA segment rose by 6.0%, from US$24,008.8m in FY2016 to US$25,442.9m in FY2017. The increase in revenue can be related to an increase in the volume of the new Alfa Romeo Stelvio, Jeep Compass and the Fiat Tipo Family.