07.08.2009 FIAT AND ALFA ROMEO BOTH POSTED STRONG SALES GAINS IN UK LAST MONTH

ELLE MACPHERSON - FIAT 500C
ELLE MACPHERSON - FIAT 500C
ELLE MACPHERSON - FIAT 500C
ELLE MACPHERSON - FIAT 500C

Australian Supermodel Elle Macpherson has recently been given a Fiat 500C as Fiat UK follows the general path of trying to link new cars with well known celebrities. The 500C has just gone on sale in the UK.

Fiat and Alfa Romeo were both big sales winners in the UK in July as the new car market finally turned positive after 15 consecutive months of falling registrations, and although the total market gained just 2.4 percent, Fiat was up by 24.16 percent while Alfa Romeo climbed by an impressive 45.79 percent.

New car registrations in the UK rose 2.4 percent in July to 157,149 units. This was the first growth in 15 months, reflecting the positive impact of the scrappage incentive scheme. Registrations from private buyers and of small cars were up in July although the overall market is still down by almost 550,000 units over the past 12 months.

The Fiat brand sold 5,216 cars in the UK during July compared to 4,186 units during the same month last year and these totals added up to a 24.61 percent year-on-year rise. Fiat was able to successfully tap into the positive effects of the scrappage scheme which evident in growth seen in the small car sectors last month. A-segment registrations more than trebled in July, from 2008, while B-segment "supermini" volumes rose 15.7 percent to account for 37.5 percent of all registrations in the UK. The new 500C has also just gone on sale in the UK tapping into the fact that this market sustains Europe's biggest demand for new cabriolet cars. This all meant that Fiat was able to raise it's share of all sales in the UK for July year-on-year from 2.73 percent to 3.2 percent.

Alfa Romeo weighed in with 901 sales last month, compared to 618 in July 2008, which adds up to a hefty 45.79 percent year-on-year hike and increases its market share from 0.40 to 0.57 percent year-on-year during the seventh month of the year.

FGA's sports division, Abarth, sold 90 cars in the UK last month (a 0.06 percent share of July sales) versus 20 units during the same period a year ago when it was just starting to establish itself after its relaunch in the country and this meant its sales were up 350 percent year-on-year, the best performance year-on-year of any brand selling cars in the UK. Other big winners last month as the UK market finally gained ground included Hyundai which was up a massive 203.45 percent on sales of 6,011 cars while Kia (3,719 units; +65.07 pct), Suzuki (2,135 units; +57.91 percent) and Mitsubishi (1,157 units; +53.65 percent) all stood out. Chrysler Group had a very mixed month and while the Chrysler brand (213 units; -49.29 percent) and Jeep (96 units; -54.29 percent) both saw their sales continue to collapse, Dodge weighed in with 276 sales that was in fact more than double it managed during July last year, equating to a 105.97 percent year-on-year rise. UK consumers gave a big thumbs down to offerings from Jaguar, Toyota, Land Rover, BMW, Vauxhall, Saab, Lexus, Mazda and Renault during July.

After the first seven months of the year more than 1.4 million cars have been sold in the UK which is down 22.76 on the first seven months of 2008. For the year-to date Fiat has sold 27,556 cars in the UK, compared to 35,234 a year ago, to leave it down 21.79 percent year-on-year although this fractionally outperforms the overall market's severe decline and means that its market share for the first seven months stands at 2.55 percent versus 2.53 percent a year ago. Alfa Romeo is positive on last year for the year-to-date and its 4,813 cars in the first seven months of 2009 compared to 4,070 during the same period a year ago puts it up 18.26 percent and increases its share of all sales so for this year in the UK from 0.39 to 0.44 percent year-on-year. Abarth has now sold 702 cars this year and as July 2008 was its first month back in the UK registrations tables there is no accurate data to compare; however for the record its year-on-year increase stands at a huge 3,410 percent after the first seven months of the year and it has 0.06 percent of all sales so far this year.

Chrysler Group has little good news to report in the UK this year as its sales continue to crash around Europe and after the first seven months of 2009 the Chrysler brand has 1,274 sales, down almost three quarters (-72.58 percent) on the same period last year while the other two brands in the Group's portfolio have seen their sales more than half this year: Jeep has 1,206 sales for the year-to-date and is down 58.31 percent, while Dodge, despite more than doubling its UK sales in July, has managed to shift just 1,233 cars so far this year, leaving it down 53.35 percent.

"The impact of the scrappage scheme is clear and we are encouraged by the positive impact it has had, increasing new car registrations for the first time since April 2008," said Paul Everitt, SMMT chief executive. "Industry still faces a long road to recovery and we urge government to take action to sustain economic recovery through easing access to finance and credit and delivering the loan guarantees set out by the Automotive Assistance Programme."

The scrappage scheme came into effect on 18 May and orders are now being translated into registrations, which is boosting the new car market with volumes up for the first time since April 2008. July’s modest 2.4 percent growth took the market to 157,149 units, 10.4 percent above SMMT's forecast for the month (of 142,300 units), but was still 10.1 percent below the average for July evident between 1999 and 2008, of 174,879 units. Registrations to UK private buyers were up for a second successive month, with a 33.4 percent gain recorded in July. Although the private market was weak last year, the 2009 total was the best for the month since 2004. The Ford Fiesta has been the best selling model eight times in the last nine months. Hyundai, with the i10, was in the top ten for the first time ever during July.

Volumes over the past 12 months have dropped by 548,330 units, reflective of how much the recession has knocked demand. The market is expected to fall 14.4 percent to 1.825 million units this year and decline a further 5 percent in 2010 to 1.73 million units.
 

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