TURIN, Italy -

Fiat announced it expects to hit its last performance event, or build a vehicle based on a Fiat platform with an EPA label of 40 miles per U.S. gallon, before the end of the year. This means the company expects to increase its Chrysler stake yet again by year-end.

In announcing first-quarter results, Fiat Group Automobiles saw revenues up slightly at 2.6 percent over the same period of 2010.

“A better mix, resulting from higher light commercial vehicle volumes and the success of the Alfa Romeo Giulietta compensated for the drop in other passenger car volumes,” management revealed.

FGA shipments of passenger cars and light commercial vehicles came in at 518,600 vehicles, which is a 2.6-percent drop over the same time frame of 2010.
For passenger cars, the company shipped 416,900 models, down 4.8 percent year-over-year, including about 7,100 Chrysler and Jeep brand vehicles that FGA distributed in European markets.

For light commercial vehicles, the automaker moved 101,700 units, a 7.5-percent increase year-over-year.

Interestingly, the automaker’s management explained that during the quarter, the European passenger car market saw a “slight year-over-year contraction,” down 2 percent, with 3.7 million units sold to end customers.

“However, performance was uneven across markets, reflecting differences in the phase-out of incentives programs, as well as variations in macroeconomic conditions. In Germany, (where the impact of incentives tailed off at the end of 2009), robust economic recovery drove a 13.9-percent increase in demand, particularly for the higher segments. In France, market demand was up 8.9 percent, as the order backlog existing at the end of 2010 following the termination of incentives was cleared,” management explained.

“In Italy, the market was down 23.1 percent over the first quarter of 2010, when volumes benefited favorably from the residual effects of eco-incentives, reaching the lowest level in the last 20 years. In Spain, demand dropped 27.3 percent, reflecting the termination of government incentives, compounded by an unfavorable economic climate. In the U.K., there was an 8.7-percent decline over the first quarter of 2010, when approximately 20 percent of newly registered vehicles benefited from government incentives. Elsewhere in Europe, double-digit growth was recorded in several key markets such as the Netherlands and Austria,” officials continued.

For Europe overall, FGA saw a 7.1 percent market share for the quarter. Officials said the 1.5 percent point year-over-year drop was due to an unfavorable market mix.

“In Italy, in particular, share was down 2.4 percentage points to 29 percent. The principal underlying factor was the significant decline in demand for alternative-fuel vehicles (linked to the termination of eco-incentives) — which accounted for 31 percent of total demand in the first quarter of 2010, but only 5 percent in the first quarter of this year,” officials pointed out. “Net of that effect, growth for the Italian market would have been 6 percent, with FGA making a 1.4-percentage point gain.”

FGA’s share was down slightly in other markets as well. However, the company noted it increased share in the Dutch market from 4.9 percent to 7.1 percent, almost doubling registrations for the quarter.

For light commercial vehicles, the company shipped 56,900 in Europe, up 5.4 percent over the same period of 2010.

“Volume gains were particularly significant in the major markets, with double-digit increase registered in Germany (up 43.8 percent), France (up 15.8 percent, the U.K. (up 18.5 percent) and Spain (up 22.9 percent). Italy was the only major market to run counter to the trend, with shipments down 11.2 percent as a result of particularly weak demand,” management said.

Furthermore, in March, the company presented several new products at the Geneva Motor Show, including the Fiat Freemont.

“Making its debut appearance, it is the first Fiat model to come out of the alliance with Chrysler Group and will be available from the second quarter,” officials highlighted.

Management went on to report, “One year after initiating integration of its product portfolio with Chrysler brand, Lancia returned to the Geneva Motor Show to introduce the new Ypsilon, Thema and Voyager. Also presented were the Flavia Concept and Flavia Cabrio Concept.”

The new Ypsilon will be available in most major European markets in June and is being offered in a five-door version, according to the company.

Meanwhile, the Lancia Thema, a luxury sedan, will be available at all European dealerships in the fourth quarter, officials said.

Jeep also made an appearance at the Geneva Motor Show, with the European debut of the new Jeep Compass.

Fiat went on to point out that it increased its stake in Chrysler from 25 percent to 30 percent and expects the last performance event, or a vehicle based on a Fiat platform with an EPA label of 40 miles per U.S. gallon, to be achieved before the end of the year.

Overall, revenues for the company were Euro 9.2 billion, up 7.1 percent over the previous year. While Fiat Group Automobiles saw revenues up 2.6 percent, luxury and performance brands and components saw double-digit increases.

Net profit for the company was Euro 37 million, compared to Euro 13 million in 2010.

Moreover, industrial debt dropped to Euro 489 million, compared to Euro 542 million. As for liquidity, it increased Euro 13.1 billion, compared to Euro 12.2 billion.