Q2 - 2012 PDF

Passenger Car OEM Quarterly Data Book
Q2 - 2012

(Q2 - 2012)
Published: August 2012
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ABOUT THE EDITOR

Jonathan Storey
Jonathan Storey has worked in the motor industry for more than fifteen years. Beginning as a financial analyst for Ford Motor
Company, he later moved into the consultancy sector providing research, analysis and forecasting services for vehicle
manufacturers, suppliers and regulatory authorities. He is the author of AutomotiveWorld.com reports: Worlds Car Manufacturers - a
financial and operating review and Worlds Truck Manufacturers - a financial and operating review. He is also co-author of Electric Vehiclesprospects for battery, fuel cell and hybrid powered vehicles.
Polk-Marketing Systems
The production and registration data for this quarterly report is supplied by Polk-Marketing Systems GmbH, one of the worlds
leading suppliers of data to the automotive industry. Polk-Marketing Systems has provided planning and forecasting services to the
automotive industry for over twenty-five years. It provides a full range of forecasting and consultancy services. Polk-Marketing
Systems has its headquarters in Essen, Germany and offices in all the worlds major vehicle markets. Their comprehensive and
ever-expanding databases are maintained and developed by more than 1,400 professionals worldwide and are regularly used by all
the industrys principal companies.
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Contents
iii
List of contentsList of contents .......................................................................................................................................... iii

List of figures ......................................................................................................................................................................... iv
Preface ...................................................................................................................................................................................... v
Summary .................................................................................................................................................................................. 6
BMW Group ........................................................................................................................................................................... 8
Daimler .................................................................................................................................................................................. 11
Fiat Auto ................................................................................................................................................................................ 15
Ford Motor Company.......................................................................................................................................................... 21
Fuji Heavy Industries (Subaru) ........................................................................................................................................... 26
General Motors..................................................................................................................................................................... 29
Honda Motor Company ...................................................................................................................................................... 34
Hyundai Motor Company ................................................................................................................................................... 38
Mazda Motor Corporation .................................................................................................................................................. 41
Mitsubishi Motors Corporation ......................................................................................................................................... 44
Nissan Motor Company ...................................................................................................................................................... 47
PSA Peugeot Citron ........................................................................................................................................................... 51
Renault Automobile ............................................................................................................................................................. 55
Suzuki Motor Corporation .................................................................................................................................................. 58
Suzuki Motor Corporation .................................................................................................................................................. 58
Toyota Group ....................................................................................................................................................................... 61
VW Group ............................................................................................................................................................................. 66
Q2-2012
Contents
iv
List of figures
Figure 1:
Figure 2:
Figure 3:
Figure 4:
Figure 5:
Figure 6:
Figure 7:
Figure 8:
Figure 9:
Figure 10:
Figure 11:
Figure 12:
Figure 13:
Figure 14:
Figure 15:
Figure 16:
Figure 17:
Figure 18:
Figure 19:
Figure 20:
Figure 21:
Figure 22:
Figure 23:
Figure 24:
Figure 25:
Figure 26:
Figure 27:
Figure 28:
Figure 29:
Figure 30:
Figure 31:
Figure 32:
Figure 33:
Global car demand by month ............................................................................................................................... 6

BMW results ............................................................................................................................................................ 8
BMW model plans .................................................................................................................................................. 9
Daimler results ...................................................................................................................................................... 11
Daimler model plans ............................................................................................................................................ 12
Fiat SpA results ..................................................................................................................................................... 15
Fiat SpA model plans ........................................................................................................................................... 17
Ford results ............................................................................................................................................................ 21
Ford model plans .................................................................................................................................................. 23
FHI results ............................................................................................................................................................. 26
FHI model plans ................................................................................................................................................... 27
GM results ............................................................................................................................................................. 29
GM model plans ................................................................................................................................................... 31
Honda results ........................................................................................................................................................ 34
Honda model plans .............................................................................................................................................. 35
Hyundai Motor results ......................................................................................................................................... 38
Hyundai-Kia model plans .................................................................................................................................... 39
Mazda results ......................................................................................................................................................... 41
Mazda model plans ............................................................................................................................................... 42
Mitsubishi Motor results ...................................................................................................................................... 44
Mitsubishi Motor model plans ............................................................................................................................ 45
Nissan results......................................................................................................................................................... 47
Nissan model plans............................................................................................................................................... 48
PSA results ............................................................................................................................................................. 51
PSA model plans ................................................................................................................................................... 52
Renault results ....................................................................................................................................................... 55
Renault model plans ............................................................................................................................................. 56
Suzuki results ......................................................................................................................................................... 58
Suzuki model plans ............................................................................................................................................... 59
Toyota results ........................................................................................................................................................ 61
Toyota model plans .............................................................................................................................................. 62
VW results.............................................................................................................................................................. 66
VW model plans.................................................................................................................................................... 67
Q2-2012
Preface
Preface
Welcome to the Q2-2012 issue of the Passenger Car OEM Quarterly Data Service. The principal aim of this
publication is to provide a regular bulletin, rich in data, to give users a detailed summary on the state of the major
car markets, car producing regions and carmakers worldwide. I believe the Passenger Car OEM Quarterly Data
Service offers an unrivalled package of: consistency; scope; detail and value for money.
With effect from Q4-2011 the PDF copy of the data handbook includes only the Company Updates.
This provides the latest financial results of the leading carmakers and their consolidated subsidiaries. Also presented
in this section are summaries and analyses of significant corporate activity, sales and production news and new
product plans.
Please note all the figures giving percentage changes reflect comparisons with the year-ago data unless stated
otherwise.
With effect from Q4-2011 we are pleased to announce a significant expansion of the new registration and
production data, previously offered in PDF copy of the Quarterly Data Handbook:
Annual new registration data is now available at Region / Market / Group / Brand level for all 55 markets
Annual new registration data is also available at Region / Market / Segment level for all 55 markets
New registration data is shown for all groups and brands - previously minor OEMs were all included in "Other"
Data on the top-25 best-selling models is available for all 55 markets
Annual production data by brand is shown for 40 producing countries
Quarterly production data by model is shown for 40 producing countries
In total these changes represent an increase of more than 50% in the data offered. This enhanced level of detail
means it is no longer practical to publish the range of tables and charts that were previously offered in PDF format.
Therefore the data is available in Excel format only and users will be able to filter and sort the data to suit their own
needs. If any user encounters a problem in manipulating the data please don't hesitate to contact us.
I hope you find this Quarterly service meets my aims and your expectations. All feedback will be welcomed.
Jonathan Storey
(Editor)
Q2-2012
Section 1: Company updates
Summary
The continuing weakness of demand in western Europe, where passenger car demand fell by 7% in H1-2012 is
emerging as one of the dominant themes of 2012.
Several of the European mass-market producers are having to intensify their cost reduction plans and try to gear
their operations to lower breakeven points. Most recently PSA has been making headlines with its plan to close a
French plant and cut jobs across all its domestic operations. There have also been reports of plans to share
production with GM in Europe - which is similarly suffering substantial losses. However, such moves are unlikely in
the near-term and it is the near-term problems that the companies have to deal with.
Other OEMs are facing similarly tough choices; for example Fiat has faced a 20% drop in its domestic market
during H1-2012. Fiat is responding by reducing planned investments in Europe in 2012 by 500m and postponing
the introduction of new models. It is also redoubling its efforts to form alliances and joint ventures and the past
quarter has seen the announcement of a venture with Mazda, making use of the new MX-5 platform.
The growth in VW's earnings slowed in Q2-2012 but it remains in strong position in absolute and relative terms.
During the past quarter it has tightened its hold on MAN Truck & Bus and made an organisational change to reflect
the importance of commercial vehicles within the group and to exploit the potential synergies between MAN and
Scania. The problems at Navistar have led to speculation that VW might be interested in extending its presence in
the CV sector further, by acquiring the US firm. Where VW and acquisitions are concerned we have learned never
to say never to such speculation.
The importance of China was also recognised in VW's organisational shake-up. The group delivered some 2.3
million vehicles in China in 2011 and reported a pro rata operating profit there of 2.6bn. A new Board of
Management function for China is being set up to reflect the scale of this contribution.
Figure 1:
Global car demand by month
New reg's (000s)
6,000
5,500
5,000
4,500
4,000
2010
2011
2012
3,500
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
New car regs (000s). Nafta, W.Europe, Japan & 34 other markets. Forecast status varies by market
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
2010
4,204.4 3,854.2 5,552.1 4,517.5 4,570.4 4,873.4 4,512.9 4,236.4 4,940.3
2011
4,722.0 4,329.4 5,732.9 4,648.0 4,838.1 4,930.2 4,592.1 4,450.6 5,234.0
2012
4,549.9 4,745.7 6,018.3 4,397.7 4,797.6 4,832.0 4,582.9 4,319.1 4,589.8
Oct
Oct
4,506.8
4,713.3
4,570.8
Nov
Nov
4,696.3
4,860.4
4,445.1
Dec
Dec
4,769.3
4,890.2
4,327.8
Q2-2012
Company updates
Q2-2012
BMW Group
FINANCIAL NEWS
Jan-Mar 2012
BMW Group reported its best first-quarter figures ever for sales, revenue and earnings. The performance reflected
strong sales outside Europe, particularly in China but also in North America and Japan.
Group revenue rose 14.1% to 18.3bn. Earnings before interest and tax (Ebit) rose 18.8% to 2.1bn and net profit
was 18.1% higher at 1.35bn. Revenue in the Automotive division increased by 12.4% to 16.2bn and pre-tax profit
was 13.4% higher at 1.8bn.
Outlook
For the full year the company expects unit sales to increase by under 10%, taking it to a record level of 1.7-1.8m
vehicles. The full-year performance will be boosted by the new 3 Series sedan which has been available in all
markets since February 2012. The company has reaffirmed the profitability targets already announced for 2012: a
return on capital employed in excess of 26% and an Ebit margin of between 8% and 10% for the Automobiles
segment.
Figure 2:
BMW results
BMW
Unit
Group data
Q1-12
Yr to Dec 11
Data
18,293
2,132
2,076
1,349
101.3
% ch.
mils
mils
mils
mils
000's
000's
000's
000's
000's
425.5
356.5
68.2
0.8
11.2
42,989
5,010
4,879
3,170
2.6
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
units
180,654
21,055
20,502
13,322
4.2
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
Revenue by division
Automobile
Motorcycle
Financial Services
Intra-group
PBT by division
Automobile
Motorcycle
Financial Services
Intra-group
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Unit sales
BMW
Mini
Rolls-Royce
14.1
18.8
21.8
18.1
5.4
11.0
12.1
6.5
9Mo-11
Data
68,821
8,018
7,383
4,907
100.3
% ch.
1,669.0
1,380.4
285.1
3.5
14.2
41,235
4,804
4,424
2,940
(0.4)
13.8
56.9
52.1
51.7
5.1
12.8
21.7
30.5
H1-11
Data
50,472
6,367
6,053
4,013
100.4
% ch.
1,232.6
1,021.9
208.2
2.4
16.0
40,948
5,166
4,911
3,256
(0.5)
502,764
63,423
60,295
39,974
12.3
10.8
12.6
12.0
8.0
4.9
46,391
1,181
12,640
(9,740)
20.3
5,647
60
1,527
(1,181)
131.2
15.4
89.6
91
97
4.1
14.5
24.1
41.3
Q1-11
Data
33,925
4,651
4,409
2,951
96.9
% ch.
833.4
689.9
141.9
1.6
19.7
22.1
114.7
1.5
17.8
29.8
64.1
Yr to Dec 10
Data
16,037
1,795
1,705
1,142
96.0
% ch.
382.8
321.2
60.9
0.7
21.3
28.9
299.8
235.6
252.5
0.3
20.8
22.9
159.1
Per unit
Revenue
Operating profit
Pre-tax profit
Net profit
6.8
9.5
6.3
8.2
12.7
15.5
12.0
5.4
11.7
11.3
7.4
0.5
mils
mils
mils
mils
16,159
448
4,800
(3,114)
12.4
mils
mils
mils
mils
1,820
37
434
(215)
0.7
0.3
12.8
14.8
13
23.3
1.2
686,111
79,935
73,605
48,920
16.6
37.3
33.2
32.8
8.3
49.3
44.8
44.4
8.7
11.7
10.7
7.1
3.2
63,229
1,436
17,510
(13,354)
16.8
6,823
41
1,790
(1,271)
2.7
1.8
10.1
5.4
76
(36.9)
47.4
40,708
5,581
5,291
3,541
63.4
65
70.2
82.1
84
89.6
11.4
349,948
47,977
45,480
30,441
8.6
4.8
3.3
9.3
1.3
(27.7)
66.2
2.0
79.3
20.3
111.5
18.0
13.7
13.0
8.7
5.9
31,047
847
8,364
(6,333)
27.6
3,902
77
1,173
(743)
237.0
6.5
4.5
7.2
2.0
(7.2)
95.2
41,899
4,690
4,455
2,984
6.3
229.6
176.8
190.6
166,974
18,689
17,752
11,890
4.0
28.5
298.7
234.7
251.5
20.9
11.2
10.6
7.1
7.6
14,373
397
4,183
(2,916)
34.7
1,605
30
429
(359)
630
6.5
4.5
13.1
4.5
0.0
93.2
Notes: (1) Q1 is Jan-Mar, Q2 is Apr-Jun, Q3 is Jul-Sep, Q4 is Oct-Dec (2) % ch is change vs corresponding year-ago data
(3) Full-year data taken from annual report may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's
Q2-2012
Corporate news
In June 2012, BMW and Toyota two signed a Memorandum of Understanding aimed at long-term strategic
collaboration in four fields: joint development of a fuel cell system, joint development of architecture and
components for a future sports vehicle, collaboration on powertrain electrification and joint research and
development on lightweight technologies.
This followed agreements between the two companies in November 2011 for BMW to supply Toyota with
diesel engines in Europe from 2014; and in March 2012 for collaborative research in the field of next-generation
lithium-ion battery cells.
The MoU is consistent with the original agreement in 2011 which included the commitment to identify and
discuss other possible collaborative projects.
The announcement of BMW's collaboration with Toyota was soon followed by confirmation of the planned
break-up of BMW Peugeot Citron Electrification, the joint venture with PSA for the development, production
and purchasing of hybrid and electric powertrain components, which was officially launched only in October
2011. Both events are a consequence of the alliance between PSA and GM.
SALES & MODEL PLANS

Figure 3:
BMW model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
BMW
1 Series City
Small
2014
2021
BMW
1 Series
Lower Medium
2011
2018
BMW
1 Series Touring
Lower Medium
2014
2021
BMW
1 Series Gran Turismo (GT)
Lower Medium
2013
2020
BMW
Lower Medium
2007
2013
Lower Medium
2012
2019
BMW
1 Series Coup
2 Series (1 Series coupe
replacement)
3 Series
Upper Medium
2011
2018
BMW
3 Series Touring
Upper Medium
2005
2012
BMW
4 Series (3 Series coupe)
Coupe/Convertible
2013
2021
BMW
4 Series (3 Series convertible)
Coupe/Convertible
2014
2022
BMW
4 Series (3 Series coupe 4-dr)
Coupe/Convertible
2015
2022
BMW
5 Series
Executive
2010
2017
BMW
5 Series Touring
Executive
2011
2018
BMW
5 Series Gran Turismo (GT)
Executive
2009
2016
BMW
6 Series coupe
Coupe/Convertible
2011
2018
BMW
6 Series convertible
Coupe/Convertible
2012
2019
BMW
6 Series Gran Coupe (4-dr)
Executive
2011
2018
BMW
7 Series
Executive
2008
2015
BMW
i3
City
2013
2020
BMW
i8
Coupe/Convertible
2014
2016
BMW
Family Activity Sports Tourer
2014
2022
BMW
Compact Activity Tourer
2015
2023
BMW
JOY (Compact Sports Commuter)
2016
2024
BMW
X1
SUV
2009
2015
BMW
X2 (3-dr)
SUV
2016
2023
BMW
X3
SUV
2011
2018
BMW
X4
Crossover
2014
2021
BMW
X5
SUV
2007
2014
BMW
X6
Crossover
2008
2015
BMW
X7 (not confirmed)
SUV
2013
2021
BMW
Z2
Coupe/Convertible
2015
2022
BMW
Z4
Coupe/Convertible
2009
2016
BMW
Q2-2012
10
Mini
Countryman
Crossover
2010
2016
Mini
Coup & Roadster
Coupe/Convertible
2011
2018
Mini
sub-Mini
City
2016
2023
Mini
Mini
Small
2007
2013
Mini
MiniVan
Compact MPV
2016
2023
Mini
Paceman
Crossover
2013
2017
Rolls-Royce
Ghost
Executive
2009
2017
Rolls-Royce
Ghost Coupe
Executive
2012
2020
Rolls-Royce
Ghost long wheelbase
Executive
2011
2017
Rolls-Royce
Phantom Coupe
Executive
2007
2017
Rolls-Royce
Phantom Drophead Convertible
Executive
2007
2017
Rolls-Royce
Phantom replacement
Executive
2012
2021
Group sales in H1-2012 were a company record at 900,539 units, an 8.1% increase. Sales of the BMW brand
were up by 8.3% at 747,064 units and Mini sales rose by 7.0% to 151,875 units.
Demand for the 1 Series Hatch 5-door rose by 51% to nearly 90,000 units, the new 3 Series sedan rose by 15.4%
to 136,000 units and sales of the X3 were 38.4% higher at 74,098 units. Sales of the Mini Countryman rose 23.4%
to nearly 50,000 units and the Mini brand made useful gains in a number of overseas markets including China,
Japan and the US.
The new 3 Series sedan will be joined by a new 3 Series touring later this year. Also in 2012 the company is
expected to show the replacement for the 1 Series coupe, prior to its market launch in 2013. The new model is
to be badged as the 2 Series, as will the cabriolet version due in 2014. The new approach to badging will be
extended in 2013 when the new 3 Series coupe will debut, badged as the 4 Series.
The Mini range is to expand from its current six models to up to ten by 2020, including a 5-door wagon, a van
and possibly a sedan.
PRODUCTION
In July, BMW announced plans to invest an additional 250m in Mini production across the UK by the end of
2015. This is in addition to the 500m it allocated in June 2011. UK capacity is expected to be insufficient to
meet Minis expansion plans and the company is in talks to build vehicles at the NedCar plant in the
Netherlands. In July 2012 Mitsubishi announced the sale of the Nedcar plant to VDL for 1, on condition that
the 1,500 employees there do not lose their jobs. VDL is reported to be in discussion with BMW about
producing Mini models at the plant.
In early July BMW produced the 25,000th car at its Chennai plant in India, less than six years after operations
began. Chennai builds the 3 Series, 5 Series and X1 models. In the first six months of 2012 BMW delivered
4,457 cars to customers in India.
BMW has outlined plans to invest 125m across its Dingolfing and Landshut plants in Germany next year to
produce key components for its i range of electric vehicles. Dingolfing will provide the batteries, the E-gear and
aluminium structure of the chassis for the i3 along with the front axle, frond end and rear chassis modules for
the i8. Landshut will provide the electric motors and a range extender and high-voltage battery and motor gear
units for the two models, along with carbon fibre reinforced plastic body parts. The investment will create a
total of 500 new jobs.
Q2-2012
11
Daimler
FINANCIAL NEWS
Jan-Jun 2012
Daimler's second-quarter earnings were lower than a year earlier but ahead of subdued expectations as all divisions
except trucks reported lower earnings.
Group revenue rose by 9.7% to 29bn with increases in all divisions except buses. Group Ebit fell by 13% to
2.24bn.
Mercedes-Benz cars reported a 5% rise in revenue to 15.4bn as sales rose by 4% to a record 370,400 units, helped
by rises of 21% in the US and 14% in China. However, the division's Ebit fell by 16% to 2.2bn and the margin fell
by 2.1pts to 8.6%.
Figure 4:
Daimler results
Daimler
Unit
Group data
H1-12
Q2-12
mils
mils
mils
mils
000's
Data
55,895
4,373
3,996
2,931
273.7
% ch.
Revenue
Ebit / Op. profit
Pre-tax profit
Net profit
Employees
Unit sales (5)
M-Benz car
Daimler truck
Van, bus
000's
000's
000's
000's
1,072.4
708.7
229.9
133.9
8.4
52,120
4,078
3,726
2,733
1.0
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
units
204,183
15,974
14,597
10,707
3.9
6.4
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
7.8
7.1
5.2
(1.2)
Revenue by division
M-Benz car
M-Benz truck
Van, bus & Other
Services
Other & intra-group
mils
mils
mils
mils
mils
30,301
15,512
6,254
6,400
(2,572)
Ebit/Op. profit by div'n

M-Benz car
M-Benz truck
Van, bus & Other
Services
Other & intra-group
mils
mils
mils
mils
mils
2,566
907
205
682
13
9.5
(5.2)
(9.3)
1.6
2.9
6.0
27.2
(4.6)
Yr to Dec 11
Data % ch.
Data
28,884
9.7 106,540
2,243
(13.1)
8,755
2,017
(20.0)
8,449
1,515
(11.1)
6,029
273.7
2.9
271.4
570.3
370.4
122.2
77.7
8.1
3.6
33.6
(1.0)
H1-11
% ch.
9.0
20.4
27.5
29.0
4.3
2,111.1
1,381.4
425.8
303.9
11.4
50,466
4,147
6,116
2,856
(2.2)
8.2
19.8
15.4
Q2-11
Data
51,067
4,612
4,404
2,884
266.1
% ch.
989.4
668.4
180.7
140.3
10.0
51,615
4,661
4,451
2,915
0.3
191,899
17,331
16,549
10,837
3.7
6.8
9.0
8.6
5.6
1.9
28,507
12,890
6,217
5,941
(2,488)
11.3
10.3
40.0
53.1
49.9
3.3
7.9
17.1
12.0
Yr to Dec 10
Data % ch.
26,338
4.9
2,581
22.7
2,521
33.8
1,704
29.9
266.1
3.3
527.6
357.6
91.5
78.6
6.3
4.4
9.1
11.9
Per unit
Revenue
Operating profit
Pre-tax profit
Net profit
5.4
(1.5)
(0.4)
6.3
20.3
0.6
7.7
-
(10.1)
2.3
(49.6)
3.2
-
50,643
3,933
3,536
2,656
105,513
8,194
7,368
5,534
2.1
7.8
7.0
5.2
15,364
8,129
3,436
3,260
(1,305)
1,314
524
140
338
(73)
1.5
(19.6)
(26.0)
(17.7)
6.6
(15.5)
(22.2)
(13.6)
5.1
392,601
32,262
31,135
22,217
7.8
8.2
7.9
5.7
(2.0)
(2.6)
(1.2)
4.9
22.3
0.8
12.1
-
(16.1)
10.5
(47.6)
(0.6)
-
57,410
28,751
13,597
12,080
(5,298)
5,192
1,876
997
1,312
(622)
8.1
17.8
15.8
4.5
15.4
22.2
23.6
6.8
0.8
1.2
0.9
7.5
19.7
9.9
(5.5)
-
11.5
41.8
49.7
57.9
-
2,854
887
407
661
(197)
6.5
2.4
1.5
20.2
5.6
(6.9)
-
30.8
106.3
30.9
127.9
-
49,916
4,892
4,778
3,229
98,973
9,699
9,473
6,403
2.0
(1.3)
15.4
25.9
22.2
1.6
18.8
29.6
25.8
2.9
9.8
9.6
6.5
14,647
6,648
3,409
2,907
(1,273)
1,566
474
267
340
(66)
1.4
2.1
1.2
4.5
13.6
7.1
(12.5)
-
13.8
58.0
29.6
98.8
-
Notes: (1) Q1 is Jan-Mar, Q2 is Apr-Jun, Q3 is Jul-Sep, Q4 is Oct-Dec (2) % ch is change versus corresponding year-ago data
(3) Full-year data is taken from annual report. It may not reconcile to quarterly data due to restatements.
(4) Per Unit & Per Employee data include non-automotive op's. (5) Divisional unit sales may not add to Group total due to intra-company transactions re Sprinter in Nafta
(6) Chrysler no longer reported as continuing operation from Q2-07. Q1-06 onwards has been restated
Q2-2012
12
The decline mainly reflected:

a less favourable model mix;
a less favourable geographic mix;
higher R&D expense.
The company also points to changes in non-current provisions and the effects of changes in interest rates which led
to higher charges on earnings. Favourable exchange rate movements provided a partial offset to these adverse
factors.
The truck division reported an 8% rise in its Ebit to 524m, though the margin declined by 0.9pts to 5.2%. On a
recurring basis the profit increase was 10.3% as the year-ago figure was raised by 11m non-recurring gain in
connection with an insurance pay out for the Japanese earthquake and tsunami. The company attributes the increase
mainly to higher sales and favourable exchange rates but the margin decline was attributable to weaker demand in
Brazil and higher R&D spending.
Outlook
Over the full year Daimler expects global car demand to grow by around 4%, led by the US and Japanese markets.
The Mercedes-Benz Car division is expected to outperform the global market and to report higher sales (year-onyear) in the next three quarters.
The company has kept its earnings forecasts fairly vague, saying it expects divisional Ebit in:
Mercedes-Benz Cars to be "in the magnitude of the prior year" - which presumably means close to, but
lower than the prior year level;
Daimler Trucks to be at least at the prior-year level;
Mercedes-Benz Vans to be "in the magnitude of the prior year";
Daimler Buses to be below the prior-year level;
Daimler Financial Services to be slightly below the prior-year level.
Corporate news
In June Daimler reduced its stake in Tesla Motors. Blackstar InvestCo, the Daimler-affiliated investment vehicle,
transferred 3.25 million Tesla shares (40% of its stake) to Aabar Investments, the Abu Dhabi sovereign-wealth fund
which is a major shareholder in Daimler. Blackstar remains Teslas third- largest shareholder, with a 7.5% stake. The
continuing importance of Tesla to Daimler was confirmed by an announcement soon after that it is to supply
components for an electric version of the B-Class (see below).
SALES & MODEL PLANS
Figure 5:
Daimler model plans
Brand
BYD-Daimler new
brand
Maybach
Model
Segment
Platform
Lifecycle
Start
Lifecycle
End
electric passenger car
TBA
TBA
2013
TBA
57 & 62
Executive
W240/V240
2002
2013
Mercedes-Benz
A-Class
Lower Medium
W169
2004
2012
Mercedes-Benz
A-Class
Lower Medium
MFA
2012
2018
Mercedes-Benz
GLC / BLK
Compact SUV
MFA
2013
2019
Mercedes-Benz
B-Class
Lower Medium
W169
2005
2011
Mercedes-Benz
New B-Class
Lower Medium
MFA
2011
2018
Mercedes-Benz
CLC (poss. 'BLS')
Coupe
MFA
2013
2019
Mercedes-Benz
CLC (poss. 'BLS') estate
Coupe
MFA
2013
2019
Mercedes-Benz
C-Class Coupe
Coupe
W204
2011
2015
Mercedes-Benz
C-Class sedan / estate
Upper Medium
TBA
2007
2014
Mercedes-Benz
C-Class cabrio
Upper Medium
MRA
2015
2023
Mercedes-Benz
CL
Coupe
W221
2006
2013
Mercedes-Benz
CLS coupe
4-dr Coupe
W212
2010
2016
Q2-2012
13
Mercedes-Benz
CLS estate
Executive
MRA
2012
2019
Mercedes-Benz
E-Class
Executive
W212
2009
2016
Mercedes-Benz
GL-Class
SUV
W165
2012
2019
Mercedes-Benz
GLK-Class
SUV
2008
2015
Mercedes-Benz
M-Class
SUV
W165
2011
2018
Mercedes-Benz
MLC
Crossover
MRA
2014
2021
Mercedes-Benz
R-Class
Crossover
W164
2005
2015
Mercedes-Benz
Coupe
W222
2013
2020
Executive
W222
2012
2019
Executive
W222
2013
2020
Coupe/Convertible
W222
2014
2021
Mercedes-Benz
S-Class Coupe
S-Class standard
wheelbase
S-Class LWB
S-Class 4-seat
convertible
SLK-Class
Coupe/Convertible
W204
2011
2017
Mercedes-Benz
SLS AMG
Coupe
W212
2010
2014
Mercedes-Benz
SLC AMG roadster
Convertible
W212
2014
2022
Smart
Forfour
Small
Edison
2013
2019
Smart
Fortwo
City
MCC Smart
2007
2014
Mercedes-Benz
Mercedes-Benz
Mercedes-Benz
Like BMW, Mercedes-Benz car sales in the first six months of 2012 were at a record level, rising 6.9% to
652,924 units and it reported record first-half sales in several markets including the US, Canada, China, UK and
Russia.
The increase reflected higher sales of most models including the C-Class (+14.9%), new B-Class (+9.7%), CLS
(+38.9%), M-Class (+32.7%), G-Class (+18.5%), and GL-Class (+7.2%). Smart sales were 1.4% higher at
55,593 units.
As well as its routine replacement cycles, Mercedes-Benz is introducing at least ten all-new models by 2015. The
compact class is probably the most important of these. Although the new A-Class and B-Class are, strictly
speaking, replacement models, they are new from the ground up and represent a new approach by MercedesBenz to this sector. As such they should offer much more effective competition against the 1 Series, the X1
(another example of a competitor being more innovative) the A3, Volvo V40 etc. Mercedes is aiming to double
its volumes in this sector to around 400,000upa.
The market reception for the B-Class has been positive and Mercedes is optimistic about the forthcoming (midSeptember) launch of the new A-Class, with 40,000 orders already booked by late July. Indeed, such if the level
of optimism that the company has announced a contract with Valmet to supply an additional 100,000 units of
the A-Class over the four years through 2016 (see 'Production' for more details).
An electric version of the B-class will be launched in the US in 2014. It will be based on a new front-wheeldrive platform and will use battery packs, electric motor and other components supplied by Tesla Motors - in
which Daimler holds a 4.7% stake. An electric version of the Smart ForTwo went on sale in the US in June and
127 units were sold.
PRODUCTION
Production of cars by Mercedes-Benz rose year-on-year by 4% to 719,587 units in H1-2012. The company is
aiming to produce 1.52m cars in 2012.
As mentioned above, Daimler has announced an expansion of its planned production of the A-Class. Rather
than increasing its own facilities it has opted to outsource production to the Finnish contract manufacturer
Valmet Automotive. The agreement provides for Valmet to produce more than 100,000 units of the A-Class
from 2013 through 2016. Following the launch of the B-Class at Rastatt, Germany in September 2011 and
Kecskemt, Hungary in March 2012, production of the A-Class at Rastatt, started in July 2012. Valmet
Automotive, originally started as a joint venture with Saab-Scania, has produced models for a variety of
manufacturers including Saab, Renault, Opel, Porsche and Fisker.
Q2-2012
14
Total investment at Rastatt for the production of the new compact models is around 1.2bn. In the first phase
600m was used for the construction of a new bodyshell building and for tools, and a further 600m is being
invested in 2012 and 2013 for a second wave of expansion. These new investments are slated for modifications
of the assembly and corresponding equipment installations in the bodyshell production. Another 400m will be
invested in the powertrain plants in 2012 and 2013 for production of components solely used in the new
compact models.
Production of the new GL-Class started at the Mercedes-Benz Tuscaloosa plant in Alabama in June. In
October 2011, Daimler confirmed that, as of 2014, the Tuscaloosa facility will be one of the four global
production locations of the successor generation of the current Mercedes-Benz C-Class, and will build these
vehicles for the North American market. In 2015, an entirely new Mercedes-Benz model will also be added as
the plant's fifth product. The company said at the time that it will invest US$350m in this project, which will
bring an additional 400 jobs to the plant.
Q2-2012
15
Fiat Auto
FINANCIAL NEWS
Jan-Mar 2012
The takeover of Chrysler has looked even more astute over recent months as several of Fiat's traditional markets
have turned down, leaving the former Fiat Auto operations in the red but the group result has been kept
comfortably in the black by Chrysler's strong performance in the recovering US market.
Over the first quarter consolidated revenue was 20.2bn and Ebit was 895m, a margin of 4.4%. Comparisons with
the reported year-ago figures are not worthwhile as Chrysler was not a consolidated subsidiary at that time.
Figure 6:
Fiat SpA results
Fiat SpA
Unit
Group data
Revenue
Trading profit
Operating profit
Pre-tax profit
Net profit
Employees
Unit sales
Fiat Auto
Chrysler
Ferrari/Maserati
Q1-12
Yr to Dec 11
mils
mils
mils
mils
mils
000's
Data % ch.
20,221
119.6
866
245.0
895
256.6
520
239.9
379
200.6
44.2
Data
59,559
2,392
3,336
2,185
1,651
197.0
000's
000's
000's
000's
1,062.3
452.0
607.0
3.3
4,057.1
2,032.9
2,011.0
13.2
19,035
843
490
357
units
100,812
4,462
2,592
1,890
5.3
103.6
(12.8)
4.3
9Mo-11
% ch.
66.0
115.1
236.3
209.5
643.7
43.0
93.7
(2.3)
7.4
Data
39,915
1,627
2,628
1,796
1,386
195.7
2,205.2
1,547.4
648.0
9.8
H1-11
% ch.
51.0
105.2
242.2
254.9
740.0
40.6
39.9
(1.3)
10.9
Q1-11
Data
22,363
776
1,834
1,514
1,274
196.4
% ch.
1,272.8
1,087.0
179.0
6.8
16.5
24.3
44.5
256.8
471.3
41.1
Data
9,210
251
251
153
37
139.1
Yr to Dec 10
% ch.
7.1
9.1
8.2
10.1
5.3
521.8
518.6
(2.5)
0.0
11.3
3.2
13.2
6.8
17,652
481
293
71
(2.6)
Per unit
Revenue
Operating profit
Pre-tax profit
Net profit
7.8
75.1
66.9
403.1
14,680
822
539
407
(14.3)
73.6
59.7
283.9
18,100
1,192
814
629
8.0
144.7
153.8
500.6
17,570
1,441
1,190
1,001
206.4
390.5
1,089.0
9.8
11.0
12.9
(280.7)
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
Revenue by division
Fiat Gp Automob's
Chrysler
Mass market brands
Ferrari
Maserati
Luxury / Performance
Fiat Powertrain
Magneti Marelli
Other & intra-group
mils
mils
mils
mils
mils
mils
mils
mils
mils
Trading profit by division

Fiat Gp Automob's mils
Chrysler mils
Mass market brands mils
Ferrari mils
Maserati mils
Luxury / Performance mils
Fiat Powertrain mils
Magneti Marelli mils
Other & intra-group mils
4.4
2.6
1.9
52.3
147.4
135.8
610.6
41.2
1.7
0.9
1.5
302,298
16,932
11,090
8,380
20.6
16.1
135.2
116.5
420.2
35.5
5.6
3.7
2.8
2.8
27,980
23,609
203,982
13,430
9,178
7,083
11.3
7.4
143.3
152.4
497.3
(0.5)
6.6
4.5
3.5
3.7
0.4
21,085
12,609
1.7
2,251
588
17.3
1,605
445
19.0
4,450
5,860
(5,179)
5.7
3,438
4,400
(3,667)
10.2
(29.2)
445
706
3.0
1.7
2.2
113,891
9,340
7,711
6,488
6.5
(11.9)
8.2
6.8
5.7
5.3
152.8
304.9
881.3
(17.5)
66,191
1,804
1,100
266
3.7
1.7
2.8
4.5
(267.3)
(7.4)
0.0
5.2
2.7
1.7
0.4
14,565
3,325
2.6
7,015
2.6
1,080
303
19.6
491
135
18.6
2,436
3,026
(2,372)
15.7
35.0
8.4
1,196
1,486
(1,113)
(4.9)
317
150
(6.2)
130
(15.0)
212
26
10.4
135
18
16.4
53
9
125.0
98
127
13
(1.0)
69
84
3
27.8
2.6
2.8
5.3
0.0
0.6
18,184
0.3
2.3
0.7
6.3
660
2,015
(638)
430
1,345
8.5
26.4
11.2
15.6
13.2
16.7
18.8
831
312
40
66.7
62.5
50.0
35.9
71
36
(43)
131
181
(47)
(6.4)
84.7
(21.7)
84.1
(125.5)
86.7
(110.7)
23
34
2
0.0
78.9
(125.0)
(3) Full-year data taken from annual reportt may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's
Q2-2012
16
Excluding Chrysler, Fiat's first-quarter revenue fell by 5.7% to 8,685m mainly reflecting volume declines in Europe,
where trading conditions were generally weak, particularly in Italy where not only did demand fall by 21% but
production and shipments for Fiat were also affected by strikes in the car transport sector.
For Ferrari and Maserati, which Fiat now reports under the heading Luxury and Performance Brands, revenues
increased 11.5% to 0.7bn. For the Components division revenue was stable at 2.0bn.
Chrysler and the former Fiat Auto operations are now reported under the heading Mass-market Brands, with the
headline results being split between four regions: NAFTA, LATAM, APAC and EMEA.
The consolidated trading profit was 866m. Excluding Chrysler, Fiat made a trading loss of (6)m compared with a
year-ago profit of 251m. Consolidated Ebit was 895m, falling to 12m excluding Chrysler. The decline in like for
like profit was attributable to two regions:
EMEA (Europe, Middle East, Africa) - where the mass-market brands incurred a loss of (170)m;
Latin America - where Ebit dropped to 235m from a reported 285m in Q1-2011.
Outlook
The renewed downturn in Europe has caused Fiat to doubt the volume assumptions underpinning its financial
forecasts and the Groups plans for Europe up to the end of 2014. As the outlook is uncertain the company has
offered its full-year forecasts in a range determined by two broad scenarios ranging from continuing depressed
trading conditions in Europe to a gradual stabilisation and recovery at the of 2012. Accordingly its forecasts are as
follows:
Revenue: > 77bn;

trading profit: 3.8-4.5bn;
net profit: 1.2-1.5bn;
net industrial debt: 5.5-6.0bn.
The company also said it will continue its strategy of targeted alliances to optimise capital commitments and reduce
risks.
Corporate news
Towards the end of July Fiat and PSA reached agreement for Fiat's shareholding in the Sevelnord joint venture
to be transferred to PSA on or before December 31, 2012 at a nominal value. Sevelnord will continue to
produce LCVs for the two groups until Euro6 emissions standards come into effect at the end of 2016.
In early July Fiat notified VEBA (Voluntary Employee Beneficiary Association, a trust established to pay health
care benefits for retirees from Chrysler) of Fiats exercise of its option to purchase a portion of the interest held
in Chrysler by VEBA. The option covers about 3.3% of Chryslers outstanding equity and following the
purchase Fiat will hold a 61.8% stake in Chrysler.
In May Fiat and Mazda signed a non-binding Memorandum of Understanding for the development and
manufacturing of a new roadster for the Mazda and Alfa Romeo marques based on Mazdas next-generation
MX-5 rear-wheel-drive architecture. Although Fiat has denied it is looking to take a stake in Mazda, a deepening
of this new relationship is not impossible - Fiat's CEO, Sergio Marchionne, has acknowledged that Fiat is
looking for an Asian partner following the announcement of the alliance between PSA and GM. At the Geneva
Show in March, Marchionne commented: We talk continuously with Suzuki; we talk with Mazda; we talk with
everyone.
Sergio Marchionne has indicated that the company will reduce planned investments in Europe in 2012 by
500m in response to the continuing market weakness. Fiat has stopped additional investments and postponed
the introduction of new models in Europe. Marchionne said that the new Grande Punto model, which was
originally scheduled to be built beginning in 2013, "is one of the projects we are reconsidering in line with the
changes" of the market in Europe. He also acknowledged that Fiat is discussing partnerships "with several
people, and in some cases our architectures, including the one for the Punto, are involved in the talks."
Q2-2012
17
SALES & MODEL PLANS

Figure 7:
Fiat SpA model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Abarth
500 & 500C
City
2008
2015
Abarth
Punto Evo Supersport
Small
2009
2013
Abarth
Roadster
Sports
2013
2020
Alfa Romeo
147
Lower Medium
2000
2010
Alfa Romeo
159
Upper Medium
2005
2012
Alfa Romeo
4C
Sports
2013
TBA
Alfa Romeo
8C
Sports
2007
2011
Alfa Romeo
C-SUV 'Kamal'? (X3, Q5 rival)
Crossover
2013
2020
Alfa Romeo
SUV
2015
2022
Upper Medium
2014
2021
Alfa Romeo
D SUV
Giulia sedan followed by st.
wagon
Giulietta
Lower Medium
2010
2017
Alfa Romeo
Large Sedan
Executive
2014
2021
Alfa Romeo
MiTo
Lower Medium
2008
2013
Alfa Romeo
MiTo five-door
Lower Medium
2013
2020
Alfa Romeo
Spider replacement
Convertible
2014
2022
Chrysler
200 Sedan / Convertible
Upper Medium
2011
2013
Chrysler
200 Sedan / Convertible
Upper Medium
2013
2019
Chrysler
300
Upper Medium
2010
2016
Chrysler
300 Hybrid
Upper Medium
2013
2016
Chrysler
CUV (250X)
Crossover
2013
2020
Chrysler
New compact (100C?)
Lower Medium
2013
2020
Chrysler
Sebring
Upper Medium
2007
2010
Chrysler
Small Car (Java)
Small
2013
2020
Chrysler
MPV
2007
2014
MPV
2014
2021
Dodge
Town & Country/Grand Voyager

Town & Country/Grand Voyager
replacement
Atos by Dodge
City
2002
2012
Dodge
Attitude
Small
2005
2011
Dodge
Attitude replacement
Small
2011
2017
Dodge
Upper Medium
2006
2012
Upper Medium
2012
2019
Dodge
Avenger
Avenger replacement (reportedly
dropped)
Caliber
Lower Medium
2006
2011
Dodge
Challenger
Coupe
2008
2015
Dodge
Challenger replacement
Coupe
2015
2022
Dodge
Charger
Upper Medium
2010
2016
Dodge
Charger replacement
Upper Medium
2016
2022
Dodge
Dart
Lower Medium
2012
2018
Dodge
Durango
SUV
2010
2017
Dodge
Durango replacement
SUV
2017
2024
Dodge
Grand Caravan
MPV
2007
2014
Dodge
Grand Caravan replacement
MPV
2014
2021
Dodge
Journey
Crossover
2008
2014
Dodge
Journey replacement
Crossover
2014
2020
Dodge
Magnum?
Upper Medium
2014
2021
Dodge
Nitro
Nitro replacement under
consideration
Stinger
Crossover
2006
2011
Crossover
TBA
TBA
Small
2013
2020
Alfa Romeo
Chrysler
Dodge
Dodge
Dodge
Q2-2012
18
Dodge
Viper (Branded 'SRT Viper'?)
Coupe
2012
2020
Ferrari
458 Italia
Sports
2009
2016
Ferrari
599 GTB Fiorano, GTO & GTS
Sports
2006
2012
Ferrari
612 Scaglietti
Sports
2004
2011
Ferrari
California
Sports
2008
2015
Ferrari
FF
Sports
2011
2017
Fiat
500 & 500C
City
2007
2015
Fiat
500 EV
City
2012
2015
Fiat
600
City
1995
2010
Fiat
600
City
2013
2020
Fiat
Lower Medium
2006
2013
Lower Medium
2012
2019
Fiat
Bravo/Ritmo
C-Sedan (Bravo/Ritmo
replacement)
Croma
Upper Medium
2005
2011
Fiat
Dobl / Panorama
Compact MPV
2009
2017
Fiat
500L
Compact MPV
2012
2019
Fiat
Freemont
Crossover
2011
2014
Fiat
Grande Punto/Punto Evo
Small
2005
2013
Fiat
Idea
Compact MPV
2003
2011
Fiat
Linea
Lower Medium
2006
2014
Fiat
Linea replacement
Lower Medium
2014
2021
Fiat
Mille/Uno
City
1984
2013
Fiat
Multipla
MPV
2012
2019
Fiat
Novo Uno & Uno Way
City & Crossover
2010
2021
Fiat
Small
1997
2011
Small
2011
2018
Fiat
Palio, Siena & Albea

Palio, Siena & Albea
replacements
Panda
City
2003
2015
Fiat
Panda 3
City
2011
2018
Fiat
Qubo & Trekking
Compact MPV & Crossover
2008
2017
Fiat
Sedici
Lower Medium
2005
2013
Fiat
Sedici replacement B-SUV
Lower Medium
2013
2016
Fiat
Stilo (Bravo replaced)
Lower Medium
2001
2010
Fiat
Ulysse
MPV
2002
2010
Jeep
SUV
2013
2018
SUV
2013
2020
Jeep
B-SUV (Trailduster?)
C SUV (replaces Compass &
Patriot)
Compass
SUV
2006
2012
Jeep
Grand Cherokee
SUV
2010
2016
Jeep
Grand Wagoneer
SUV
2013
2019
Jeep
Liberty/Cherokee
Liberty/Cherokee repl.
(Renegade?)
Patriot
SUV
2007
2013
SUV
2013
2020
SUV
2006
2012
SUV
2006
2016
SUV
2016
2025
Lancia
Wrangler & Wrangler Unlimited

Wrangler & Wrangler Unlimited
replacements
CUV (Agrippa?)
Crossover
2013
2020
Lancia
Delta (4dr Beta in 2012?)
Lower Medium
2008
2013
Lancia
Flavia convertible
Convertible
2012
2013
Lancia
Flavia sedan / convertible
Upper Medium
2013
2019
Lancia
Grand Voyager
MPV
2011
2014
Lancia
Musa (not directly replaced)
Compact MPV
2004
2012
Lancia
Phedra
MPV
2002
2010
Lancia
Thema
Executive
2011
2016
Fiat
Fiat
Jeep
Jeep
Jeep
Jeep
Jeep
Q2-2012
19
Lancia
Ypsilon
City
2003
2011
Lancia
City
2011
2018
Sports
2009
2015
Maserati
Ypsilon replacement
GranCabrio/GranTurismo
convertible
GranTurismo
Sports
2007
2014
Maserati
Kubang
SUV
2013
2021
Maserati
Quattroporte
Sports
2004
2012
Maserati
sub-Quattroporte sedan(s)
Executive
2013
2020
Ram
100 (Dakota replacement)
Pick-up
2013
2019
Ram
1500
Pick-up
2008
2014
Ram
2500 HD & 3500 HD
Pick-up
2009
2015
Ram
Dakota
2004
2011
Ram
Doblo
Pick-up
Compact MPV (van confirmed,
passenger version possible)
2012
2018
Maserati
In H1-2012 new registrations of Fiat cars in the 30 EU plus EFTA states fell by 16.5% to 456,200 units, mainly
due to the weak Italian market which fell by 19.7%. The only bright spots for Fiat were a 41.4% rise in Jeep
sales to 15,200 units and a 1% increase in Lancia sales to 56,100 units. Alfa Romeo sales dropped by 31.1% to
54,100 units and Fiat-brand sales were 17.5% lower at 327,600 units.
The company has confirmed plans to introduce a crossover variant of the 500, to be called the 500X. It will be
based on the same platform as the 500L, derived from the Punto and reportedly be built at the Mirafiori plant
in Turin, alongside a new crossover model from Jeep. Sales of the model will begin in the US, Europe and
other markets in late 2013 or early 2014.
In May Indian vehicle manufacturer Premier (formerly Premier Automobiles) signed a three-year agreement
with Fiat India Automobiles for the supply of Fiat's 1.3-litre multi-jet diesel engine for installation in Premier's
compact SUV, the Rio. Initially, Fiat will supply 28,000 engines to Premier during the three-year contract.
Depending on demand for the Rio, this volume may increase further. This engine will be produced by Fiat at its
manufacturing facility in Ranjangaon, in Maharashtra. Premier's plant at Chinchwad, Pune in the same state is
around 60km away. This proximity is expected to enable daily just-in-time deliveries.
In May Fiat and Fiat Industries announced the suspension of activities in Iran in response to the trade sanctions
imposed on the country by Europe and the US due to Irans nuclear programme. The company said that sales
by Fiats subsidiaries in Iran during the past few years were totally immaterial in a quantitative and qualitative
sense and any concerned products were sold for commercial and civilian use only.
Fiat has confirmed that it is taking over responsibility for distribution of its vehicles in India. Currently Tata
handles distribution of Fiat models through joint Tata-Fiat dealerships. The change is part of a revision of the
joint venture Fiat operates with Tata. Fiat has expressed its disappointment at slower than expected sales in the
country since the launch of the venture in 2006 and will now set up a special company to manage its
commercial and distribution activities in India, basing the new network on the 178 existing Fiat-franchised Tata
dealers across the country.
PRODUCTION
In June GAC Fiat Automobiles, the 50:50 joint venture between Fiat and GAC in China, held a ceremony at its
new plant in Changsha, to celebrate completion of the new facility and the rollout of the Fiat Viaggio, the first
Fiat model produced in China. The new 4-door, 5-passenger Viaggio is based on the CUSW (Compact US
Wide) architecture - the most advanced within the Fiat Group - which is also the basis of the new Dodge Dart.
The new plant will have an initial annual capacity of 140,000 vehicles and 220,000 engines in phase I and an
annual capacity of 250-300,000 vehicles in phase 2. It incorporates Fiat's World Class Manufacturing (WCM)
methodology, which Fiat began developing, implementing and refining in 2005 with the purpose of reducing
waste, increasing productivity and restoring dignity to employees. The methodology has been adopted at all Fiat
and Chrysler plants worldwide. The joint venture between Fiat and Guangzhou Automobile Company was
founded in March 2010 with investment totalling Yuan 5bn (US$791m).
Q2-2012
20
The continuing weakness of the European market may lead Fiat to close a second Italian plant, following the
closure of Termini Imerese in Sicily in 2011. The company has already had to suspend production of some
models temporarily to avoid excess inventory. Closure may be avoided if excess European capacity can be
viably utilised to supply the North American market but such viability will only be achievable if the workforce
agrees to more flexibility. This probably brings us to the reason that a possible closure has been publicly
discussed - the workforce at Cassino has not yet agreed to the flexible working conditions which workers at
other Fiat plants have agreed to.
Q2-2012
21
Ford Motor Company

FINANCIAL NEWS
Jan-Jun 2012
Q2-2012 pre-tax operating profit was US$1.8bn, a decrease of US$1bn from Q2-2011. Ford has now posted a pretax operating profit for 12 consecutive quarters. Net profit was US$1bn, a decrease of US$1.4bn from Q2-2011,
reflecting lower operating results except for Ford North America and higher tax expense.
Figure 8:
Ford results
Ford
Unit
Group data
Revenue
Pre-tax profit
Net profit
Employees
$ mils
$ mils
$ mils
000's
Unit wholesales
Ford N. America
Ford S. America
Ford Europe
Ford Asia Pacific
PAG
000's
000's
000's
000's
000's
000's
H1-12
Q2-12
Data % ch.
65,745
(4.2)
3,633
(32.5)
2,436
(50.8)
166
0.0
2,805
1,370
237
731
467
0
(4.0)
1.4
(4.8)
(14.4)
(0.2)
Yr to Dec 11
9Mo-11
H1-11
Data % ch.
Data % ch.
Data % ch.
33,300
(6.3) 136,300
5.7 101,688
5.3
1,595
(38.8)
8,681
21.4
7,228
5
1,040
(56.6)
20,213
208.1
6,598
4
166
0.0
166
1.2
166
1.8
1,447
719
119
359
250
0
(4.7)
(2.3)
(11.9)
(14.9)
10.6
5,695
2,686
506
1,602
901
0
3.1
11.3
3.5
1.8
7.5
4,268
1,993
382
1,211
682
0
3.2
10.8
10.1
3.0
13.1
Q1-11
Data % ch.
68,641
3.0
5,382
8.0
4,949
5.7
166
(6.7)
2,922
1,351
249
854
468
0
2.1
12.0
7.8
2.2
17.6
Per unit
Revenue
Pre-tax profit
Net profit
$
$
$
23,439
1,295
868
Per employee
Revenue
Pre-tax profit
Net profit
Sales
$
$
$
units
396,054
21,886
14,675
16.9
Return on revenue
Pre-tax profit
Net profit
%
%
Revenue by division
Ford N. America
Ford S. America
Ford Europe
Ford Asia Pacific
PAG
Automotive total
Financial services
Other
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
38,299
4,682
14,369
4,575
0
61,925
3,820
0
PBT by division
Ford N. America
Ford S. America
Ford Europe
Ford Asia Pacific
PAG/Other
Automotive total
Financial services
Other
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
4,143
59
(553)
(161)
(524)
2,964
903
0
5.5
3.7
(0.2)
(29.7)
(48.7)
(4.2)
(32.5)
(50.8)
(4.0)
(2.3)
(3.5)
2.4
(10.8)
(18.8)
10.1
(4.0)
(7.4)
10.4
(87.6)
(217.9)
(573.5)
(20.4)
(27.2)
(31.0)
#DIV/0!
23,013
1,102
719
200,602
9,608
6,265
8.7
4.8
3.1
19,700
2,300
7,100
2,300
0
31,400
1,900
2,010
5
(404)
(66)
(163)
1,382
447
0
(1.6)
(36)
(54)
(6.3)
(38.8)
(56.6)
(4.7)
(2.5)
(3.6)
1.3
(21.5)
(21.1)
9.6
(6.2)
(7.4)
5.3
(98.1)
(329.5)
(6,700.0)
(31.0)
(25.7)
#DIV/0!
23,933
1,524
3,549
821,084
52,295
121,765
34.3
2.5
17.8
198.8
4.4
20.0
204.4
1.9
6.4
14.8
0.8
75,000
11,000
33,800
8,400
0
128,200
8,100
0
16.5
6,191
861
(27)
(92)
(683)
6,250
2,431
0
9.7
11.1
14.6
13.5
7.5
(16.5)
14.5
(14.8)
(114.8)
(148.7)
50.7
(19.0)
-
23,826
1,694
1,546
2.1
612,578
43,542
39,747
25.7
3.4
7.1
6.5
(0.0)
55,330
8,229
25,492
6,506
0
95,557
6,131
0
17.1
5,302
753
163
(9)
(894)
5,315
1,913
0
1.9
0.3
3.3
1.7
1.4
(0.1)
16.3
19.0
24.4
7.3
(18.0)
12.6
3.3
(18.9)
(105.5)
(2.6)
(22.0)
(100.0)
23,491
1,842
1,694
0.9
413,500
32,422
29,813
17.6
10.5
7.8
7.2
0.4
37,403
5,250
17,705
4,156
0
64,514
4,127
0
20.5
3,752
477
469
34
(658)
4,074
1,308
0
5.8
3.5
15.8
13.3
9.5
0.2
13.3
16.5
23.0
5.0
(20.3)
20.2
(2.3)
18.1
(74.8)
(450.0)
(5.9)
(22.6)
(100.0)
(3) Full-year data from annual report may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's
Q2-2012
22
The automotive division reported a drop in pre-tax profit to US$1.38bn from US$2.28bn in Q2-2011. The operating
margin fell by 2.1pts to 4.9%. The decline reflected lower results at Ford Europe, Ford South America, and Ford
Asia Pacific Africa as detailed below.
For the second consecutive quarter, North American pre-tax profit exceeded US$2bn, and the operating margin
exceeded 10%. The increase reflected higher net pricing, improved contribution costs, and other factors, offset
partly by higher structural costs for growth, and unfavourable volume and mix including an adverse change in US
dealer stocks.
In Europe Ford reported a pre-tax loss of US$(404)m compared with a year-ago profit of US$176m. This brought
the first-half loss to US$(553)m. The adverse factors were principally the weak market, a lower share and high
spending on incentives.
The result for South America came in at little better than breakeven, at US$5m compared with US$267m in Q22011. The decline reflected lower volume, higher costs, and adverse exchange rate movements.
In the Asia Pacific Africa region the markets were strong compared with a year ago, but higher costs associated with
new products and investments resulted in a loss of US$(66)m compared with a Q2-2011 profit of US$1m.
Other Automotive reported a loss of US$(163)m for Q2-2011, compared with a year-earlier loss of US$(76)m. The
loss mainly reflects net interest expense and an unfavourable fair market value adjustment, primarily from the
companys investment in Mazda.
Ford Credit reported pre-tax profit of US$438m, down by US$166m from the Q2-2011 figure, mainly due to fewer
lease terminations and a lower financing margin.
Outlook
Ford began the year saying it expected Automotive pre-tax operating profit to improve. It has now recognised it is
likely to be about equal or lower, mostly due to the further weakening of the European market but also to the
weaker outlook for South America. The expected loss in Europe has been increased to US$(1)bn from a previous
range of US$(500-600)m.
Automotive structural costs are expected to increase by less than US$2bn to support higher volumes, new product
launches and global growth plans. Although the company expects an increase in commodity costs, the increase is
not expected to be material.
Corporate news
In July Ford went public with its criticism of the European commission's proposed negotiations with Japan
over a free trade agreement. The company issued the following statement:
"It is troubling that the European Commission in the midst of a serious economic crisis would propose
launching negotiations with Japan over a free trade agreement before the Japanese remove important non-tariff
barriers against the European auto industry, especially given that the EU automotive sector has a significant
trade deficit with Japan which a free trade agreement is not expected to reverse.
Ford fully believes in free and fair trade, but it needs to be truly fair. This requires the removal of established
tariff and non-tariff barriers, the prevention of new non-tariff barriers, an absence of currency manipulation,
and reciprocal import-export liberalisation by trading nations.
At a time when vehicle sales in Europe are their lowest point in nearly two decades, a one-sided trade
agreement that brings a wave of imports into the market without a corresponding outflow of exports could
further damage the European economy and imperil the close to 12 million jobs supported by the automotive
sector in Europe."
At the end of May Ford and Automotive Components Holdings announced definitive agreements with Ventra
Sandusky for the sale of ACHs business in automotive headlamps and taillights and the ACH plant in
Sandusky, Ohio. Ventra Sandusky also will run the ACH automotive lighting service parts operation in Bellevue,
Ohio.
Q2-2012
23
According to a report in Automotive News Ford is entering contract talks with the Canadian Auto Workers union
with the intention of closing a US$15 an hour labour cost gap compared with what the company pays its US
workers. Ford employs 7,400 employees at five plants in Canada and pays US$79 an hour for wages and
benefits to its hourly workers compared with US$64 an hour in the US.
SALES & MODEL PLANS

Figure 9:
Ford model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Ford
B-CUV
Crossover
2013
2020
Ford
B-MAX
Compact MPV
2011
2017
Ford
C-MAX
Compact MPV
2003
2010
Ford
C-MAX & Grand C-MAX
Compact MPV
2010
2017
Ford
Crown Victoria (fleet order only)
Upper Medium
1991
2011
Ford
EcoSport
Crossover
2012
2019
Ford
Edge
Crossover
2006
2013/14
Ford
Escape & Escape Hybrid
Crossover
2000
2012
Ford
Escape replacement (Kuga-based)
Crossover
2012
2018
Ford
Everest/Endeavour
SUV
2003
2012
Ford
Expedition & Expedition EL
SUV
2006
2012
Ford
Explorer
SUV
2002
2010
Ford
Explorer
SUV
2010
2018
Ford
Explorer Sport Trac
Pick-up
2006
2010
Ford
F-150
Pick-up
2003
2013
Ford
F-250, F-350, F-450 & F-550 Super Duty
Pick-up
2007
2014
Ford
Falcon
Upper Medium
2008
2014
Ford
Falcon Ute
Pick-up
2008
2015
Ford
Fiesta hatchbacks
Small
2001
2010
Ford
Fiesta sedan
Small
2004
2010
Ford
Fiesta sedan & hatchbacks
Small
2008
2015
Ford
Fiesta Trail
Crossover
2005
2010
Ford
Figo
Small
2010
2017
Ford
Flex
Crossover
2008
2015
Ford
Lower Medium
2010
2017
Lower Medium
2004
2010
Ford
Focus
Focus/Focus Europa (Europe, Mexico, Africa, AsiaPacific)
Focus (North America)
Lower Medium
2007
2010
Ford
Focus BEV (electric)
Lower Medium
2011
2017
Ford
Focus Coup-Cabriolet
Coup-Cabriolet
2006
2011
Ford
Fusion & Fusion Hybrid (sedan for North America)
Upper Medium
2005
2012
Ford
Fusion / Mondeo
Upper Medium
2012
2019
Ford
Fusion (small hatchback for Europe & India)
Small
2002
2010
Ford
Galaxy
MPV
2006
2013
Ford
i-Max
Compact MPV
2007
2010
Ford
Ikon
Small
1999
2011
Ford
Ka (Americas)
City
2007
2016
Ford
Ka (Europe)
City
2008
2015
Ford
Kuga
Crossover
2008
2015
Ford
Mondeo/Mondeo-Zhisheng
Upper Medium
2007
2014
Ford
Mustang
Coup-Cabriolet
2004
2014
Ford
new Mustang
Coup-Cabriolet
2013
2020
Ford
Ranger (Americas)
Pick-up
1992
2011
Ford
Ranger (Europe & Asia-Pacific)
Pick-up
2006
2011
Ford
Q2-2012
24
Ford
S-MAX/Mai Ke Si
MPV
2006
2013
Ford
Taurus
Upper Medium
2009
2013
Ford
Territory
SUV
2011
2016
Ford
Yihu (Escape for China)
Crossover
2003
2011
Lincoln
Mark LT (Mexico only)
Pick-up
2009
2012
Lincoln
MKC
Crossover
2012
2019
Lincoln
MKR
Crossover
2011
2017
Lincoln
MKS
Executive
2008
2015
Lincoln
MKT
Crossover
2009
2015
Lincoln
MKX
Crossover
2006
2013
Lincoln
MKZ
Executive
2005
2012
Lincoln
MKZ replacement
Executive
2013
2020
Lincoln
Town Car (fleet order only)
Executive
1997
2010
Mercury
Grand Marquis (fleet order only)
Upper Medium
1994
2010
Mercury
Mariner & Mariner Hybrid
Crossover
2004
2010
Mercury
Milan & Milan Hybrid
Upper Medium
2005
2010
Mercury
Mountaineer
SUV
2000
2010
Ford's first half wholesales fell by 4% to 2.805m units. In NAFTA there was a 1.4% rise to 1.37 million units; in
S. America there was a 4.8% decline to 237,000 units; in Europe there was a 14.4% drop to 731,000 units and in
Asia Pacific, Africa wholesales were virtually unchanged at 467,000 units.
Over the first half Ford's US market share dropped to 15.4% from 16.7% in H1-2011. In South America its
share dipped by 0.1pts to 9.4% and in Europe it fell by 0.3pts to 8.1%. In Asia Pacifica, Africa there was also a
0.3pts fall to 2.4%.
Gunnar Herrmann, the new head of quality for Ford in Europe takes over at the beginning of September. He
says he wants the company to become the industry's quality leader.
Ford has Toyota's Prius in its sights with the new C-Max Hybrid which will offer projected class-leading fuel
economy of 47mpg city (US), beating the Prius v by 3mpg, with a US$1,300-lower base price and 50hp more
power. Ford offers C-Max Hybrid buyers an expected payback period of two years for the hybrid technology
premium compared with other small crossovers - about half of the four-year period Ford research shows could
trigger more mainstream hybrid sales. The C-Max Hybrid will have a launch base price of US$25,995, including
destination and delivery, which is US$1,300 lower than Toyota Prius v.
The C-Max Hybrid is being produced at Ford's Wayne, Michigan Assembly Plant alongside the Focus, Focus
Electric and Focus ST. The C-Max Hybrid is one of five electrified vehicles Ford plans to produce in North
America in 2012. The others include the Focus Electric, of which production began late 2011; the C-Max
Energi plug-in hybrid due this autumn, offering better overall range than any plug-in hybrid; a 47mpg Fusion
Hybrid this autumn and a Fusion Energi plug-in hybrid which will begin production by the end of 2012,
aiming to be the most fuel-efficient midsize car in the world.
PRODUCTION
Ford built 1,450,000 cars and trucks in Q2-2012, down 49,000 vehicles from Q2-2011 as rises in North
America and Asia Pacific, Africa were more than offset by declines in Europe and South America.
In Q3-2012 the company plans to build 690,000 cars and trucks in NAFTA, an increase of 34,000 from a year
earlier. European output is forecast to be down by 31,000 units at 320,000 units, South American output is
expected to be 1,000 units higher at 120,000 units and production in Asia Pacific Africa is expected to be up by
65,000 units at 275,000 units.
The continuing downturn in most European markets and the consequently escalating losses for Ford are
causing it to consider closing a European assembly plant. Like several other European manufacturers Ford has
had to cut production back during 2012.
Q2-2012
25
In June Ford opened the revamped plant at Louisville, Kentucky, and launched production of its all-new
Escape at the plant. Investment of US$600m was required to convert Louisville from producing body-on-frame
SUVs to produce small utility vehicles. It has already added 1,800 jobs at the plant, and is adding 1,300
additional workers to a third shift, which is scheduled to start in autumn. With this, the total number of hourly
workers at the facility will reach 4,200 people.
The upgraded plant is capable of producing up to six different vehicles at the same time, making it Ford's most
flexible in the US. The upgrade included the installation of new tooling and improved equipment in the final
assembly area and body shop. This includes more than 1,000 robots and 20 miles of conveyors. The new
Escape produced at this plant is the first of a new line of compact SUVs to be built off of Ford's global C-car
platform. The same vehicle will be produced and sold in Europe and China as the Kuga.
Ford's manufacturing operations in Australia have announced plans to cut up to 440 jobs, or about 15% of the
current workforce of around 3,000, and to reduce production by almost 30%, reflecting falling sales of the
company's Falcon model. Production is to be cut from 209 vehicles per day to 148 vehicles per day from
November 2012 in response to a change in customer preferences, which has resulted in an overall decline in
sales of large vehicles in the Australian market.
In India Ford has announced the completion of expansion work at its engine plant near Chennai, 14 months
after the project began. The expansion boosts the facilitys capacity by 36% to 340,000upa and brought 200
new jobs to the plant.
In June Fords new flexible Rayong plant in Thailand officially began operations with the launch of the new
Ford Focus. Ford invested US$450m in the new Thai plant, its second in the country. Rayong is Fords fifth
plant globally to build the new Focus, joining plants in Chongqing, China; Saarlouis, Germany; St Petersburg,
Russia, and Wayne, Michigan. The Thai-built focus will be sold cross the ASEAN region, Australia, New
Zealand and South Africa. Sales of the model begin in Thailand in August.
Also in June the company announced the planned closure of its Santa Anna plant in the Philippines in
December. The plant builds the Ford Escape. After the closure Ford will continue to supply vehicles for the
Philippine market from its facilities elsewhere in the region, particularly Thailand.
Despite this closure the company is considering opening a plant in Indonesia, a market where car demand is
slightly lower than in Thailand but is expected to grow larger soon.
Q2-2012
26
Fuji Heavy Industries (Subaru)

FINANCIAL NEWS
Year to March 2012
The effects of the Great East Japan earthquake and tsunami, as well as the floods in Thailand have distorted all the
Japanese OEM results for 2011/12 to some extent though the strength of the yen is a longer term concern.
In FHIs case revenue for the year was just 4% lower as sales fell by 2.6% to 640,000 units. The full-year
performance was helped by a strong fourth-quarter which saw revenue grow by 20% as sales rose by 23%.
Figure 10:
FHI results
Fuji Heavy
Unit
Group data
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Data
1,517.1
44.0
52.9
38.5
27.66
% ch.
bn
bn
bn
bn
000's
640.0
172.0
468.0
(2.6)
Domestic
Overseas
000's
000's
000's
Revenue
Operating profit
Pre-tax profit
Net profit
mils
mils
mils
mils
2.37
0.07
0.08
0.06
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
mils
mils
mils
mils
units
54.84
1.59
1.91
1.39
23.1
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
Revenue by division
Automobile
Aerospace
Industrial
Other
Intra-company
Op. profit by division
Automobile
Aerospace
Industrial
Other
Intra-company
Unit sales
Yr to Mar 12
Q4-11/12
(4.0)
(47.8)
(16.3)
(23.6)
0.0
8.9
(6.2)
9Mo-11/12
Data
487.7
16.1
5.8
1.7
27.66
% ch.
208.0
58.0
150.0
23.1
2.34
0.08
0.03
0.01
(2.4)
20.1
51.2
0.0
45.0
16.3
H1-11/12
Data
1,029.4
27.9
47.0
36.8
27.74
% ch.
432.0
114.0
318.0
(11.5)
2.38
0.06
0.11
0.09
(1.0)
37.11
1.00
1.70
1.33
15.6
(12.4)
2.7
4.6
3.6
(3.5)
942.3
55.1
25.2
18.1
(11.3)
(13.4)
(12.4)
(62.1)
(34.9)
(37.1)
0.0
(3.4)
(14.1)
Yr to Mar 11
Data
655.0
18.8
40.2
32.8
27.74
% ch.
265.9
72.6
193.3
(19.7)
(18.5)
(67.3)
(27.8)
(27)
0.0
(18.0)
(20.4)
Data
1,580.6
84.1
63.2
50.3
27.66
657.0
158.0
499.0
% ch.
10.6
207.6
(0.3)
16.7
(7.6)
27.3
Per unit
(1.5)
(46.4)
(14.1)
(21.6)
(4.0)
(47.8)
(16.3)
(23.6)
(2.6)
2.9
3.5
2.5
(2.4)
bn
bn
bn
bn
bn
1,392.0
80.3
33.7
27.4
(16.3)
(4.3)
bn
bn
bn
bn
bn
39.4
2.9
0.5
1.0
0.2
(51.0)
(0.5)
(0.6)
(3.1)
12.1
(4.6)
3.2
27.7
(29.7)
92.6
17.63
0.58
0.21
0.06
7.5
3.3
1.2
0.3
449.7
25.1
8.5
9.3
(5.0)
14.2
1.3
0.0
0.3
0.2
23
(152)
(117)
20.1
51
(164)
(121)
23.1
0.7
3.4
2.3
22.7
(12.0)
18.4
19.8
20.0
66.7
(47.8)
(128.8)
(192.6)
241.0
25.2
1.5
0.5
0.7
(0.1)
(57)
(26)
(29)
(62)
(35)
(37)
(11.5)
(1.6)
(1.4)
1.6
10.0
(13.6)
(2.8)
(64.9)
310.8
(60.3)
-
2.46
0.07
0.15
0.12
1.5
(59)
(10)
(8)
23.61
0.68
1.45
1.18
9.6
(18.5)
2.9
6.1
5.0
(4.3)
595.6
37.4
17.4
12.0
(7.4)
(19.9)
17.1
1.0
0.3
0.4
0.1
(69.3)
(67)
(28)
(27)
(19.7)
(0.8)
(0.5)
0.0
5.8
(16.9)
(2.8)
92.0
171.7
(70.2)
(1,383.3)
2.41
0.13
0.10
0.08
57.13
3.04
2.29
1.82
23.7
(5.2)
163.6
10.9
208.4
17.0
5.3
4.0
3.2
1,454.7
82.8
30.1
28.7
(15.8)
80.4
2.3
(0.1)
1.5
0.1
3.4
4.0
4.3
12.2
(11.2)
25.5
(3.7)
4.8
270.2
(53.1)
(97.9)
(42.9)
(88.4)
Notes: (1) Q1 is Apr-Jun, Q2 is Jul-Sep, Q3 is Oct-Dec, Q4 is Jan-Mar (2) % ch is change versus year-ago data
Q2-2012
Q4-10/11
27
Full year operating profit dropped by 47.8% to 44bn. The net decline of 40.1bn reflects:
(42)bn adverse exchange rates;

(5.2)bn - higher R&D expense;
8.0bn lower selling expenses;
1.2bn - improved sales mix;
(2.2)bn other.
Net profit of 38.5bn was 23.6% lower, a smaller decline than at the operating level due to a non-recurring gain of
26.1bn from the sale of a building.
Outlook
Although the company anticipates tough trading conditions in 2012/13 it expects sales of its Subaru vehicles to rise
12.7% to an all-time high of 721,000 units due to healthy sales of the new Impreza as well as sales growth in
passenger vehicles (i.e. not minicars) in Japan and overseas markets with new product launches.
This increase is expected to underpin a 22.6% rise in consolidated revenue to 1,860bn which in combination with
cost-reductions is expected to boost operating income by 52.4% to 67.0bn. Although a significant rise in
percentage terms 67bn will only represent a margin of 3.6% which is not only weak by the standards of FHI's
peers but also in comparison with the company's own margins in many previous years.
The projections for 2012/13 are based on assumed foreign exchange rates of 80 per US dollar and 105 per Euro.
At the time of writing these assumptions were close to market rates.
Corporate news
In May FHI announced the progress of its five-year management plan, Motion-V, for the five years ending March
31, 2016. The company noted that since the plan was first developed, there have been business environment
changes such as a better-than-expected sales growth in major markets, centred on North America, a delay in
establishing local production in China and the stronger yen exchange rate in world markets. Therefore it has
included additional measures in response to those changes, as follows:
1. Revision of sales & marketing strategies
sales plan in the US market was revised upward to 380,000 units in FY2016.
in the revised plan for sales expansion in China market, FHI will make a shift from local production
scheme to car export scheme.
2. Revised scheme of global production system
it seems difficult to establish local production in China during the period of this mid-term plan.
FHI will enhance production capacity of its existing manufacturing bases in Japan and the US.
FHI will start consideration of its production expansion in North America towards the future.
3. Further steps in an overhaul of cost structures

The global sales target for FY2016 has been lowered by 50,000 units to 850,000 units but the operating profit target
of 120bn and margin of 6% has not been altered.
SALES & MODEL PLANS
Figure 11:
FHI model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Subaru
Alcyone
Coupe/Convertible
2012
2019
Subaru
BRZ
Sports
2012
2019
Subaru
Dex replacement
Small
2010
2015
Q2-2012
28
Subaru
Exiga replacement
Compact MPV
2015
2022
Subaru
Forester replacement
Crossover
2016
2024
Subaru
Lower Medium
2014
2021
Upper Medium
2015
2021
Subaru
Impreza replacement
Legacy/Liberty & Outback
replacement
Legacy/Liberty Hybrid
Upper Medium
2011
2015
Subaru
Lucra replacement
Kei
2016
2021
Subaru
Pleo replacement
Kei
2011
2016
Subaru
During the first six months of calendar 2012 domestic sales of Subaru passenger cars increased by 27.6% to
94,700 units. Although a healthy-sounding increase Subaru substantially under-performed the overall market
which rose by 56.6%, the year-ago figures of course being depressed due to the earthquake/tsunami. The
company's exports over the first six months were 52% higher at 190,449 units.
In the US Subaru is outperforming the market with a 24% rise in sales to 164,300 units over the first six
months of 2012, increasing its share from 2.08% to 2.26%. The increase is mainly attributable to the new
Impreza, sales of which rose by 121% to 46,700 units, but the Legacy also outperformed with a 14% rise to
24,300 units.
PRODUCTION
Production in the first half of calendar 2012 rose by 52% to 377,745 units. Domestic output was 63% higher at
279,481 units and overseas output was 27% higher at 98,264 units. The plan for the year to March 2013 is for a
20% boost to 768,000 units.
FHI plans to increase domestic production to 78% of global output in 2012/13 compared with 73% in
2011/12. This contrasts with other Japanese OEMs which are increasing production outside Japan in response
to the strong yen. However, FHI's overseas volumes in most regions are so small that it would be difficult to
make the investment case for a new assembly plant. Even in the US where Subaru operates a plant in Indiana
(formerly a joint venture with Isuzu) it is producing Toyotas as well, to help make the plant viable.
The one country where Subaru volumes could support local production is China, but FHI's plans for a joint
venture with Chery, using Chery's plant at Dalian, have been blocked by the Chinese government. The
proposed venture fell foul of Chinese regulations limiting the number of ventures by foreign companies.
Toyota already has two ventures in China and has a 16% stake in FHI, therefore the Chinese consider FHI to
be part of Toyota and did not approve the new project.
Q2-2012
29
General Motors
FINANCIAL NEWS
Jan-Mar 2012
GMs reported first-quarter profits came in ahead of consensus expectations but, like Ford, declined from year-ago
levels with much of the decline attributable to Europe. However, the reported results included non-recurring gains
of US$1.5bn in Q1-2011 and non-recurring charges of US$0.6bn in Q1-2012 so on a recurring basis the company
claims a 10% increase in Ebit to US$2.2bn.
Figure 12:
GM results
New GM
Unit
Group data
Revenue
Pre-tax profit
Net profit
Employees
Unit sales
GMNA
GME
GMLAAM
GMAP
GMSA
GMIO
$ mils
$ mils
$ mils
000's
000's
000's
000's
000's
000's
000's
000's
New GM
New GM
New GM
New GM
New GM
New GM
Q1-12
Yr to Dec 2011
9Mo-11
H1-11
Q1-11
Yr to Dec 2010
Data % ch.
37,759
4.3
1,143 (18.6)
1,350 (60.4)
207
1.0
2,278
703
398
249
928
2.7
2.8
(8.3)
8.9
Data % ch.
150,276
10.8
5,985
4.3
9,287
42.8
207
2.5
9,026
2,924
1,735
1,065
3,302
7.6
11.4
4.3
3.9
7.5
Data % ch.
112,286
13.8
5,820
23.5
8,540
69.7
210
0.5
6,790
2,213
1,324
799
2,454
9.2
14.0
7.2
(19.3)
Data % ch.
75,567
16.9
3,998
39.6
6,448 129.6
208
0.0
4,545
1,468
917
522
1,638
9.4
14.6
8.4
(19.3)
Data % ch.
36,194
15.0
1,404
7.8
3,411 185.2
205
0.0
2,218
684
434
248
852
11.0
21.3
7.4
(17.4)
Per unit
Revenue
Pre-tax profit
Net profit
$
$
$
16,576
502
593
Per employee
Revenue
Pre-tax profit
Net profit
Sales
$
$
$
units
182,411
5,522
6,522
11.0
Return on revenue
Pre-tax profit
Net profit
%
%
Revenue by division
GMNA
GME
GMLAAM
GMAP
GMIO
GMSA
Automotive Intra-Co
Automotive total
Financial services
Other
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
PBT by division
GMNA
GME
GMLAAM
GMAP
GMIO
GMSA
Automotive Intra-Co
Automotive total
Financial services
Other
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
$ mils
3.0
3.6
24,176
5,513
6,060
3,939
(2,360)
37,328
431
0
1.6
(20.7)
(61.5)
3.3
(19.4)
(60.8)
1.7
(0.9)
(5.8)
9.3
(19.8)
11.7
1.1
16,649
663
1,029
725,971
28,913
44,865
43.6
4.0
6.2
90,233
26,757
24,761
16,877
(9,759)
148,869
1,410
(3)
3.0
(3.1)
32.7
8.2
1.8
39.4
5.0
(0.2)
1.4
8.7
11.1
15.3
9.7
12.8
10.0
401.8
-
16,537
857
1,258
4.2
13.1
55.4
534,695
27,714
40,667
32.3
13.2
5.2
7.6
0.4
67,122
20,480
18,337
12,677
(7,346)
111,270
1,016
0
10.0
23.0
68.9
8.7
16,626
880
1,419
363,303
19,221
31,000
21.9
(27.7)
110.0
16.9
39.6
129.6
9.4
5.3
8.5
0.9
45,238
14,329
12,043
8,259
(4,927)
74,942
625
0
14.4
2.5
19.3
6.9
27.6
4.2
24.5
(27.7)
16,318
633
1,538
176,556
6,849
16,639
10.8
3.6
(2.8)
157.0
15.0
7.8
185.2
11.0
3.9
9.4
(0.3)
22,110
6,870
5,427
3,896
(2,404)
35,899
295
0
14.6
5.6
25.8
(32.6)
Ebit by division
Ebit by division
Ebit by division
Ebit by division
Ebit by division
1,691 (41.6)
7,194
26.5
7,342
48.8
5,147
83.2
2,898 137.9
(846)
(747)
(580)
(288)
(390)
507
5.6
1,897 (16.1)
1,418 (42.9)
1,053 (42.7)
480
(58.8)
83
(7.8)
(122) (114.9)
103
147
90
(85)
(540) (727.9)
(163)
(163)
0
1,350 (56.1)
7,682
11.3
8,120
30.5
5,896
47.0
3,078
61.4
181
622
382.2
452
274
130
(388)
861
92.6
118
317
317
-
(3) Full-year data is taken from annual report. It may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's.
Q2-2012
30
Group revenue grew by 4.3% to US$37.7bn as sales rose by 2.7% to 2.28m units. Revenue was 9.3% higher in
NAFTA, 11.7% higher in international operations, 1.1% higher in South America and 19.8% lower in Europe.
On a recurring basis Ebit was US$2.2bn, up from US$2.0bn in Q1-2011. By region the recurring results were as
follows:
GM North America reported Ebit of US$1.7bn, an improvement of US$0.4bn compared with Q1-2011;
GM Europe reported a loss of US$(0.3)bn compared with break-even;
GM International Operations reported Ebit of US$0.5bn, down US$0.1bn;
GM South America reported and unchanged Ebit of US$0.1bn.
Outlook
The company expects its North American results in Q2- and Q3-2012 to be comparable to the first quarter due to
the planned downtime at factories that produce full-size trucks.
Corporate news
GM Europe is in continuing discussions as to how to get the operation onto a sustainably profitable footing.
During June the company announced it was negotiating with the union, IG Metall, and its works councils over:
the future of Bochum assembly plant, which is targeted for closure at the end of the current Zafira's
lifecycle in 2015;
no compulsory redundancies before 2016;
delaying the introduction of the 2012 wage increase;
a plan to fully utilise all remaining European plants on a three-shift basis.
In addition to these negotiations, at the end of June the Opel supervisory board voted in favour of a mid-term
business plan which included substantial product investments. The key elements of the plan are:
Significant investments in the Opel/Vauxhall product portfolio between 2012 and 2016, including 23 new
models, 13 new powertrains (including three all-new engine families) and more vehicles with green
propulsion, like the Ampera. New products will include models in segments where Opel is currently not
present, such as the small Mokka SUV, the lifestyle mini Adam and a premium cabrio.
A new product offensive, combined with new sales strategies, which is expected to lead to market share
growth. Any growth in market share is intended to complement Opels plan to return to profitability
through greater operational efficiency and cost reduction.
Developing a new, clear brand strategy that is geared toward both traditional and attainable potential
customers and that leads to a more defined brand perception.
Clearly defined plans aimed at reducing material, development and production costs. Opel will more
effectively leverage the global GM organization. Opel also sees great synergies stemming from the recently
formed alliance between GM and PSA Peugeot Citron.
A co-ordinated and clearly defined export strategy in the GM family focusing on important growth
markets. This includes plans for rapid market share growth in markets such as Russia and Turkey, a
strategy to go from 5,000 to 20,000 annual Opel sales in China in the coming years, and entering further
markets such as Australia in the fourth quarter of this year.
Although PSA is mentioned in the plan it does not appear to be a central part of it. There has been
speculation about the possibility of GM and PSA sharing production in Europe but any such co-operation
looks some way off.
The mention of A co-ordinated and clearly defined export strategy in the GM family" is interesting
because as this publication has discussed previously, this is an area of conflict within GM which does not
seem to have a clear strategy in respect of the roles it expects Chevrolet and Opel to play in emerging
markets.
In July GM announced that Karl-Friedrich Stracke, GM Europe President, was stepping down from his
position. His temporary replacement is Steve Girsky, previously Chairman of the Opel Supervisory Board, who
will serve as acting head of GMs European operations as the company searches for a replacement.
Q2-2012
31
The first tangible result of the GM-PSA alliance is a long-term, exclusive agreement to transfer the majority of
GMs logistics business in Europe to Gefco, the wholly-owned subsidiary of PSA. The agreement will affect the
majority of the Opel/Vauxhall, Chevrolet and Cadillac logistics activities in Europe (including Russia) and
includes services such as material and component deliveries to manufacturing plants, delivery of finished
vehicles to dealerships and the transport of aftersales spare parts to distribution centres. The new agreement
will take effect in 2013.
The European Bank for Reconstruction and Development (EBRD) has indicated it is ready to sell its 16.78%
stake in the GM-AvtoVAZ joint venture in Russia. Reuters quotes Richard Wallis, EBRD's spokesman in
Moscow as saying: "We have been in the joint venture since 2001, it's an extremely long time for the EBRD to
stay. Other projects could benefit from the money that had been invested." The joint venture, in which
AvtoVAZ and GM each hold a 41.61% stake, was established in 2001 at AvtoVAZ's main production plant in
Togliatti to produce the Chevrolet Niva model. According to the EBRD, it provided 153m (US$191.8m) in
financing at the start of the project.
SALES & MODEL PLANS

Figure 13:
GM model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
2011
2018
Baojun
Baojun 630
Lower Medium
Baojun
TBA
TBA
TBA
TBA
Buick
Enclave
Crossover
2007
2012
Buick
Encore
Crossover
2013
2020
Buick
Excelle sedan & wagon
Lower Medium
2003
2010
Buick
Excelle XT/GT
Lower Medium
2009
2015
Buick
GL8
MPV
2010
2016
Buick
LaCrosse
Upper Medium
2009
2016
Buick
Lucerne
Upper Medium
2005
2011
Buick
Park Avenue
Upper Medium
2008
2014
Buick
Regal
Upper Medium
2008
2016
Buick
Verano
Lower Medium
2011
2017
Cadillac
ATS
Lower Medium
2012
2018
Cadillac
CTS
Executive
2007
2013
Cadillac
DTS
Executive
2005
2011
Cadillac
Escalade
SUV
2005
2012
Cadillac
SRX
Crossover
2009
2016
Cadillac
SLS
Executive
2006
2013
Cadillac
STS
Executive
2004
2012
Cadillac
XLS (SLS replacement)
Executive
2013
2018
Cadillac
XTS (DTS & STS replacement)
Executive
2012
2018
Chevrolet
Agile
Small
2009
2018
Chevrolet
Astra
Lower Medium
2007
2010
Chevrolet
Avalanche
SUV
2006
2012
Chevrolet
Aveo / Lova / Sonic
Small
2003
2011
Chevrolet
(new generation) Aveo
Small
2011
2018
Chevrolet
Camaro
Coupe/Convertible
2008
2017
Chevrolet
Caprice (Holden built)
Executive
2006
2013
Chevrolet
Captiva
Crossover
2006
2012
Chevrolet
Chevy C2
Small
2000
2010
Chevrolet
Classic/Celta/Prisma
Small
2000
2013
Chevrolet
Cobalt
Lower Medium
2004
2010
Chevrolet
Colorado
Pick-up
2003
2011
Q2-2012
32
Chevrolet
Corsa (S America)
Small
2000
2010
Chevrolet
Corvette
Sports
2004
2012
Chevrolet
Cruze / Lacetti
Lower Medium
2008
2016
Chevrolet
Epica / Tosca (repl. by Malibu)
Upper Medium
2006
2011
Chevrolet
Equinox
SUV
2009
2014
Chevrolet
Express/Savana
Full size van
2003
2012
Chevrolet
GPiX
Crossover
2010
2017
Chevrolet
HHR
Lower Medium
2005
2011
Chevrolet
Impala
Upper Medium
2005
2013
Chevrolet
Lacetti / Optra
Lower Medium
2004
2010
Chevrolet
Malibu
Upper Medium
2003
2011
Chevrolet
Meriva
Compact MPV
2004
2011
Chevrolet
New Sail
Small
2010
2017
Chevrolet
Niva
SUV
2003
2011
Chevrolet
Omega
Upper Medium
2007
2014
Chevrolet
Optra
Lower Medium
2003
2010
Chevrolet
Orlando
Compact MPV
2010
2017
Chevrolet
Silverado 1500
Pick-up
2006
2014
Chevrolet
Silverado 2500 & 3500
Pick-up
2007
2015
Chevrolet
Spark (1st gen)
City
2003
2013
Chevrolet
Spark/Beat (2nd gen)
City
2009
2017
Chevrolet
SRV
Lower Medium
2006
2010
Chevrolet
Suburban
SUV
2006
2012
Chevrolet
Tahoe
SUV
2005
2012
Chevrolet
Traverse
Crossover
2008
2015
Chevrolet
Vectra
Lower Medium
2005
2011
Chevrolet
Viva
Lower Medium
2004
2010
Chevrolet
Volt
Lower Medium
2010
2017
Chevrolet
Zafira
Compact MPV
2005
2011
GMC
Acadia
Crossover
2006
2014
GMC
Canyon
Pick-up
2003
2011
GMC
Granite
Crossover
2012
2019
GMC
Savana
Full size van
2003
2012
GMC
Sierra 1500
Pick-up
2006
2014
GMC
Sierra 2500 & 3500
Pick-up
2007
2015
GMC
Terrain
Crossover
2007
2012
GMC
Yukon
SUV
2005
2012
Holden
Barina
Small
2005
2012
Holden
Barina Spark
City
2010
2015
Holden
Captiva
Crossover
2006
2012
Holden
Commodore & SportWagon
Upper Medium
2006
2013
Holden
Cruze
Lower Medium
2009
2015
Holden
Epica
Upper Medium
2007
2011
Holden
Statesman & Caprice
Executive
2006
2013
Holden
Volt
Lower Medium
2011
2017
Opel/Vauxhall
Agila
Small
2007
2014
Opel/Vauxhall
Allegra
City
2013
2020
Opel/Vauxhall
Ampera
Lower Medium
2011
2018
Opel/Vauxhall
Antara
Crossover
2006
2013
Q2-2012
33
Opel/Vauxhall
Astra
Lower Medium
2009
2016
Opel/Vauxhall
Corsa
Small
2006
2012
Opel/Vauxhall
Mokka
Compact SUV
2012
2018
Opel/Vauxhall
Insignia
Upper Medium
2008
2015
Insignia
Insignia coupe
Upper Medium
2013
2020
Opel/Vauxhall
Meriva
Compact MPV
2010
2017
Opel/Vauxhall
Zafira
Compact MPV
2005
2011
Vauxhall
VXR8
Executive
2007
2014
Wuling
TBC (rebodied Buick Excelle)
Lower Medium
2010
2017
Wuling
Sunshine, Hongtu & Rongguang
Compact MPV
2002
2012
GM's US sales rose by 4.3% to 1,315,713 units in H1-2012. In China GMs sales rose 11.3% to a record
1,417,047 units. In the 30 EU and EFTA markets new registrations of GM brands fell by 10.7% in the first half
reflecting a 14.9% drop for Opel/Vauxhall and a 14.2% rise for Chevrolet (see above comment regarding the
confused strategy for Opel and Chevrolet).
In July Opel released pictures of its new city car, the Opel Adam, prior to its debut at the Paris show in
September. The Adam will be offered alongside the Suzuki-built Agila city car, at least initially, when it goes on
sale in 2013. GM would like to develop variants of the base model, similar to the range extension achieved by
Mini, if demand looks sufficient.
By the end of 2012, GM will have all-new or freshened cars and crossovers in segments that represent 60% of
the US light vehicle market. By the end of 2013, 70% of GMs North American portfolio will be new or
freshened vehicles compared with 2011. Chevrolet will have launched new vehicles like the Sonic, Spark and
Impala. Buick and Cadillac will enter new segments with the launches of the Verano and Encore (Buick) and
XTS and ATS (Cadillac).
PRODUCTION
In July GM announced "a realignment of its manufacturing organization to optimize the companys global
manufacturing footprint and to drive greater efficiencies and cost savings." Tim Lee has become vice president,
Global Manufacturing. He retains his position as president, GM International Operations, overseeing regional
markets which account for 40% of GMs global sales volume and include China, Russia and South Korea. The
move is said to underscore the reality of GMs manufacturing footprint. GM and its partners currently build
vehicles in 30 countries for more than 100 global markets. 70% of GM products are built outside the US.
The new Adam will be built at the Eisenach in Germany. The plant may cease production of the Corsa at the
end of its current lifecycle.
In June the company announced plans to add a third shift at its Arlington Assembly plant, generating an
estimated 800 jobs for the plant that makes the Chevrolet Tahoe and Suburban, GMC Yukon and Cadillac
Escalade. The shift is expected to start in Q1-2013. Arlington Assembly currently employs 2,500 hourly and
salaried employees and operates two production shifts. In 2011, the plant produced nearly 270,000 vehicles.
Also in June the company held a ground-breaking ceremony for the expansion of its St Petersburg plant in
Russia. The facility, known as GM Auto, opened in 2008. The project will more than double capacity at the
facility from 98,000upa to 230,000upa by 2015. When expansion work is complete, the plant's workforce will
have increased from 2,500 to 4,000 people. The plant will focus on production of Chevrolet and Opel models
for the Russian market. The St Petersburg expansion is part of a wide-ranging US$1bn investment that GM will
make in the country over the next five years. Part of this investment will also be used to boost output at the
GM-AvtoVAZ joint venture in Togliatti.
Shanghai GM has started construction of its latest vehicle production plant. The joint ventures newest plant is
being built in the Jiangxia district of Wuhan. Once up and running it will build small and medium-sized
passenger cars, SUVs and new energy vehicles. The partners are investing Yuan 7bn (US$1.1bn) in this new
plant, which will include facilities for stamping, body-building, painting and general assembly. Operations are
scheduled to begin in 2014 with a capacity of 300,000upa.
Q2-2012
34
Honda Motor Company

FINANCIAL NEWS
Year to March 2012
Honda was one of the worst affected of the Japanese OEMs by the natural disasters in 2011. Consequently it
reported one of the sharpest falls in operating profit for 2011/12 with a 59% drop compared with a fall of 24% at
Toyota and a small increase at Nissan. However, it should be remembered that as the most profitable of these three
players in 2010/11, Honda had further to fall.
Group revenue fell by 11% to 7,948bn as automobile revenue dropped by 703bn (minus 10.3%) due to a 10.7%
fall in sales to 3.14m units and adverse exchange rates. At constant exchange rates the decline would have been
6.2%. An increase of 159bn (+12.3%) in the motorcycle division's contribution provided a partial offset.
Figure 14:
Honda results
Q2-2012
35
Operating profit fell by 59.4% to 231.4bn and the margin dropped by 3.5pts to 2.9%. The decline was mainly
attributable to the revenue decline and higher fixed costs due to lower capacity utilisation, but unfavourable
currency effects comprised about 30% of the adverse cost factors.
The automobile division reported a loss of (77.2)bn but at a group level this was more than offset by continuing
profits in the financial services business (170bn) and the motorcycle division (143bn).
In Japan there was a group operating loss of (109.8)bn compared with a 66.1bn profit a year earlier. In NAFTA
profit fell by 25.8% to 223.2bn. In Europe Honda reported an operating loss of (12.1)bn compared with a yearearlier loss of (14)bn. In non-Japan Asia there was a 49% fall in profit to 76.8bn and in other regions there was
an 18.1% decrease to 56.9bn.
By the fourth quarter of the year the company was recovering strongly. Fourth quarter sales were 14.9% higher,
revenue was up by 8.7% and operating profit was 142% higher as the margin improved to 4.7%.
Outlook
Honda spent much of 2011/12 being unable to issue a forecast as it struggled to cope with the disruption caused by
the Japanese and Thai natural disasters. The contrast with its current optimism is stark: the company is expecting a
substantial recovery in 2012/13 with a 38.4% rise in automobile sales to a record 4.3 million units (see 'Sales &
Model Plans' below).
Revenue is expected to rise by 30% to 10,300bn, operating income by 168% to 620bn (6% margin) and net
profit by 122% to 470bn.
SALES & MODEL PLANS
Figure 15:
Honda model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
2011
2017
2012
2018
Acura
CSX replacement
Acura
MDX replacement
Lower
Medium
Crossover
Acura
RDX replacement
SUV
2012
2018
Acura
RL replacement
2011
2017
Acura
TL replacement
2013
2019
Acura
TSX sedan & wagon replacements
2013
2019
Acura
ZDX replacement
2017
2024
Honda
Accord replacement
2012
2017
Honda
Accord Crosstour replacement
2016
2022
Honda
Airwave replacement
2010
2015
Honda
City/Fengfan replacement
2015
2022
Honda
Civic coupe replacement
2011
2016
Honda
Civic hatchback replacement
2011
2016
Honda
Civic hybrid replacement
2011
2016
Honda
Civic sedan replacement
2011
2016
Honda
CR-V replacement
2011
2017
Honda
CR-Z replacement
2016
2021
Honda
Crossroad replacement
Executive
Upper
Medium
Upper
Medium
Crossover
Upper
Medium
Crossover
Compact
MPV
Small
Lower
Medium
Lower
Medium
Lower
Medium
Lower
Medium
Crossover
Lower
Medium
Crossover
2012
2019
Honda
Element replacement
Crossover
2010
2016
Honda
Elysion replacement
2010
2016
Honda
FCX Clarity replacement (fuel cell)
2015
2021
Honda
Fit/Jazz replacement
MPV
Upper
Medium
Small
2013
2019
Q2-2012
36
Honda
Fit Hybrid replacement/Jazz Hybrid

replacement
Honda
Freed replacement
Honda
Hobio replacement
Honda
Insight replacement
Honda
Inspire replacement
Honda
Legend replacement
Compact
MPV
Compact
MPV
Lower
Medium
Upper
Medium
Executive
Honda
Life replacement
Honda
Odyssey replacement (Asia)
Honda
Small
2013
2019
2014
2020
2010
2021
2014
2019
2012
2017
2011
2017
Kei
2013
2018
MPV
2013
2018
Odyssey (North America)
MPV
2010
2016
Honda
Pilot replacement
SUV
2014
2020
Honda
Ridgeline replacement
2011
2017
Honda
Spirior replacement
2013
2018
Honda
Step WGN & Spada replacements
2014
2019
Honda
Stream replacement
2011
2017
Honda
Tif/Logo (Hyundai i10 rival)
2011
2018
Honda
Vamos replacement
2010
2021
Honda
Zest & Zest Spark replacements
Pick-up
Upper
Medium
MPV
Compact
MPV
Small
Compact
MPV
Kei
2011
2016
Honda's domestic sales rose by 79.4% in the first half of calendar 2012 to 430,914 units, with conventional
passenger cars rising by 53.2%, broadly in line with the market, and mini-vehicle sales up by 151% to 161,680
units, about 12% of which were vans.
In the US Honda marginally outperformed in the first half with a rise in sales of 15.4% compared with 14.8%
in the overall market. In the 30 EU and EFTA states the company under-performed with a drop in new car
registrations of 10.8% compared with a fall of 6.3% in the overall market.
On July 6th Honda launched sales of the N Box+ in Japan. This is the second model of the new mini-vehicle N
Series.
The 38% increase in unit sales projected for 2012/13 reflects increases in all regions as follows:
Japan: +20.7% to 710,000 units;

North America: +31.5% to 1.74 million units;
Europe: +45.5% to 230,000 units;
Asia: +56.5% to 1.31 million units;
RoW: +53.4% to 310,000 units.
Some of these targets are looking more of a stretch after the fiscal first quarter.
According to a report in Japan's Nikkei, Honda's third-generation Fit which launches in 2013 will include a
crossover in its range. The small SUV would be targeted at a growing sector.
PRODUCTION
Honda's worldwide production rose by 66% to 2.16 million units in the first half of calendar 2012. Domestic
output was 120% higher at 587,217 units and overseas output was 52% higher at 1.57 million units.
In July Honda Malaysia, a Honda automobile production and sales joint venture in Malaysia, held a groundbreaking ceremony to mark the start of construction of its second automobile production line at the existing
auto plant in Malacca. The new line is scheduled to begin operation before the end of 2013. It will produce
mostly small-sized vehicles such as Jazz/Fit and hybrid vehicles. Capacity of the new line is planned at
50,000upa, doubling Honda Malaysia's overall capacity.
Q2-2012
37
On July 10, Dongfeng Honda Automobile commemorated the start of production at its new second plant in
Wuhan, Hubei Province. Initial capacity of the second plant is 100,000upa, but plans already exist to expand to
120,000upa in 2013 and 240,000upa in future.
Following the mid-March announcement by P.T. Honda Prospect Motor (in which Honda has a 51% stake) of
plans to build a new 120,000upa plant, work began in June. It will be located on the site of the existing HPM
plant in the Karawang Industrial Park in a suburb of Jakarta. Combined with the current capacity of 60,000upa,
HPMs total capacity will be 180,000upa. The new plant is scheduled to become operational in 2014. HPM is
planning to produce small-sized vehicles such as the Brio developed for Asian markets. HPM will begin
importing Brio from Thailand before the end of 2012, and then begin local production of an Indonesian
version of the model at the existing plant before the end of 2013. HPM is planning to transfer production of
Brio to the new plant when it becomes operational in 2014.
In the US Honda is to boost capacity at its Greensburg, Indiana plant by 50,000upa, a 25% increase.
Production of the Civic Hybrid will start there in early 2013. Investment of US$40m will be required and 300
extra jobs will be created. The Civic Hybrid is currently made in Japan, but Greensburg will become the sole
world source. The move is another example of the Japanese producers switching production out of their
domestic market in response to the strong yen. Greensburg opened in October 2008 to produce Civic sedans.
It also produces natural gas-powered Civic models and began assembling the Acura ILX and ILX Hybrid earlier
in 2012.
In autumn 2012 the company will also increase capacity at its Lincoln, Alabama plant, from 300,000upa to
340,000upa. Together these two developments will increase Honda's North American auto production capacity
to 1.72 million upa. The 200,000upa plant in Mexico, due to open in 2014 (see AQR Q1-2012) will boost that
figure still further.
Not all the capacity is to support the NAFTA market. The company plans to export about 100,000 vehicles
from NAFTA in 2012 and this figure will grow in subsequent years.
Q2-2012
38
Hyundai Motor Company

FINANCIAL NEWS
Jan-Jun 2012
HMC reported a 19.5% increase in first-half net profit, boosted by increased overseas sales and a weaker currency
versus the dollar.
Group revenue rose by 9.9% and operating profit rose by 21% to Won 4,7853bn and the margin rose by 1.0ptsto
11.4%. As well as a richer sales mix HMC is benefiting from higher prices for its models as perceptions of brand
quality improve.
Figure 16:
Hyundai Motor results
Hyundai Motor
Unit
H1-2012
Group data
Q2-12
% ch.
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
W bn
W bn
W bn
W bn
000's
42,105
4,785
6,293
4,998
56.0
Domestic
Nafta
China
Europe
Other
000's
000's
000's
000's
000's
000's
2,134
328
357
365
233
851
Revenue
Operating profit
Pre-tax profit
Net profit
W mils
W mils
W mils
W mils
19.73
2.24
2.95
2.34
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
W mils
W mils
W mils
W mils
units
752.1
85.5
112.4
89.3
38.1
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
11.4
14.9
11.9
1.0
Revenue by division
Automotive
Finance
Other
W bn
W bn
W bn
36,323
4,041
1,741
10.4
Operating profit by division

Automotive W bn
Finance W bn
Other W bn
4,323
637
(174)
Unit sales
9.9
21.0
15.5
19.5
0.0
8.1
(4.7)
10.5
4.3
15.3
12.7
Yr to Dec 11
% ch.
21,940
2,502
3,145
2,547
56.0
1,115
173
193
184
123
442
9.2
17.7
5.4
10.4
0.0
5.2
(2.3)
7.2
1.7
18.3
5.7
H1-2011
% ch.
77,798
8,075
10,447
8,105
56.0
16.1
4,099
682
646
757
403
1,611
10.8
36.4
39.4
35.1
0.0
3.6
20.1
6.5
11.3
12.5
Q2-11
% ch.
38,325
3,954
5,449
4,184
56.0
1,974
344
323
350
202
755
20.2
31.6
45.0
41.3
(0.0)
12.5
7.5
26.2
17.8
5.2
9.6
Q1-11
% ch.
20,092
2,126
2,984
2,307
56.0
19.1
21.6
37.6
37.2
(0.0)
1,060
177
180
181
104
418
14.7
18.95
2.01
2.82
2.18
3.8
16.4
25.0
9.0
9.5
13.9
Per unit
1.6
11.9
6.8
10.5
9.9
21.0
15.5
19.5
8.1
0.7
1.0
5.2
9.8
34.4
(19.8)
19.68
2.24
2.82
2.28
391.9
44.7
56.2
45.5
19.9
3.8
11.9
0.2
4.9
9.2
17.7
5.4
10.4
5.2
11.4
14.3
11.6
(0.5)
19,074
1,959
907
(0.5)
2,187
267
49
(43.1)
0.8
0.1
9.9
18.3
27.8
18.98
1.97
2.55
1.98
4.9
23.2
25.9
21.9
1,389.3
144.2
186.6
144.7
73.2
16.1
10.4
13.4
10.4
1.5
67,128
7,288
3,382
17.2
6,814
1,208
53
46.4
36.4
39.4
35.1
10.8
2.2
1.5
11.8
6.6
9.3
(66.9)
19.41
2.00
2.76
2.12
6.8
17.0
28.8
25.5
684.6
70.6
97.3
74.7
35.3
20.2
10.3
14.2
10.9
0.9
32,897
3,842
1,586
22.2
3,217
794
(57)
31.7
45.0
41.3
12.6
2.4
1.6
18.3
(8.1)
34.7
43.8
(189.1)
6.0
20.0
19.6
358.9
38.0
53.3
41.2
18.9
19.1
10.6
14.9
11.5
0.2
21.7
37.7
37.3
14.8
2.0
1.5
17,356
1,969
767
1,711
469
(53)
(3) Full-yr data taken from ann. report. It may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's
Q2-2012
39
Outlook
For 2012 the company is planning a 5.7% rise in unit sales to 4.29 million units.
Corporate news
In mid-July HMC workers in South Korea staged a partial strike as wage negotiations failed to reach a
successful conclusion. The eight-hour stoppage cost Hyundai an estimated 4,300 vehicles in lost production.
Although a relatively minor disruption this was a significant event in that it was the first strike in four years and
more action is threatened. The more settled labour relations situation has been one of the notable features of
HMC's growth in recent years so the renewed disruption is disappointing.
SALES & MODEL PLANS
Figure 17:
Hyundai-Kia model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Dianyue
TBA (Cerato-based)
Lower Medium
2013
TBA
Hyundai
Accent (4th gen) Solaris/Verna/Grand

Avega/i25
Lower Medium
2010
2015
Hyundai
Azera / Grandeur / i55
Upper Medium
2011
2017
Hyundai
Elantra/Avante
Lower Medium
2010
2016
Hyundai
Elantra/Avante coupe
Coupe
2012
2018
Hyundai
Eon
City
2011
2019
Hyundai
Equus / Centennial
Executive
2009
2015
Hyundai
Genesis Coupe / Rohens Coupe
Executive
2008
2014
Hyundai
Genesis sedan / Rohens
Executive
2007
2013
Hyundai
Getz/New Click
Small
2002
2011
Hyundai
i10
City
2007
2013
Hyundai
i15
Small
2012
2018
Hyundai
i20
Small
2008
2014
Hyundai
i30
Lower Medium
2011
2016
Hyundai
i40
Upper Medium
2011
2017
Hyundai
ix20
Small MPV
2010
2016
Hyundai
ix25
Small SUV
2013
2019
Hyundai
ix35/Tucson/Tucson iX
SUV
2009
Hyundai
LaVita/Matrix
Compact MPV
2001
Hyundai
Santa Fe / ix45
SUV
2007
2015
2010
Term.
2012
Hyundai
Sonata / i45
Upper Medium
2009
2014
Hyundai
TQ/H-1/Grand Starex/Satellite/iMax/i800
MPV
2007
2015
Hyundai
Veloster
Coupe
2011
Hyundai
Veracruz / ix55
SUV
2006
Kia
Carens/Rondo
Compact MPV
2006
Kia
Carnival / Sedona
MPV
2005
Kia
Cee'd, Pro-cee'd, eco-cee'd, excee'd
Lower Medium
2012
2018
2012
Term.
2012
2012
Term.
2019
Kia
Lower Medium
2008
2013
MPV
2012
2018
Kia
Forte/Cerato/Fu-Rui-Di / Koup/Shuma/K3
Grand VQ-R (LWB Carnival for China
only)
K5/Optima
Upper Medium
2010
2015
Kia
K7/Cadenza
Upper Medium
2009
2014
Kia
K9
Executive
2012
2018
Kia
K9 coupe?
Coupe
2014
Kia
Mohave/Borrego
SUV
2007
Kia
Morning/Picanto
City
2011
TBA
2011
Term.
2017
Kia
Q2-2012
40
Kia
Pride/Rio/K2
Small
2011
Kia
Ray
Mini MPV
2011
2018
TBA
Kia
Sorento
SUV
2009
2015
Kia
Soul/Xiu Er
Crossover
2008
2014
Kia
Sportage (3rd gen)
SUV
2010
2017
Kia
Venga
Compact MPV
2009
2015
Shouwang
BHCD-1 (Concept name)
Lower Medium
2014
TBA
In H1-2012 HMC's worldwide sales increased by 11.6% to 2.18 million units as a 15.1% rise in overseas sales
to 1.85 million units was partly offset by a 4.7% fall in domestic sales to 328,000 units.
In July HMC cut its forecast for global industry volumes in 2012 due to the worse-than-expected economic
situation in Europe and China. It now expects 77.1 million units to be sold globally, down by about 0.5 million
units from its April forecast.
The number of models offered by Hyundai-Kia is to reach 40 in 2013, from just 28 in 2002 and 32 in 2009. The
number of platforms will be reduced to 6 by 2013 compared with 22 in 2002 and 18 in 2009.
One of the newest models, the all-new Hyundai Eon launched in India in autumn 2011, has been providing real
competition for the Maruti Alto. It has become HMC's best-seller in the country, selling more than 52,000 units
in H1-2012 and taking sixth position in the market, followed by the Hyundai i10 in seventh.
PRODUCTION
Hyundai and Kia have established several greenfield assembly plants over the past decade, in Europe, India,
China and USA. That phase of expansion is coming to an end, once the plants currently being constructed are
completed:
Hyundais new plant in Brazil and its third plant in China are due to start production this year (see below);
Construction of Kias third plant in China has started in 2012 and production is scheduled to get underway
in 2014.
Over the next few years the companies are not expected to build more new plants but to expand the existing
production network to meet additional demand. For example during 2012 Hyundai is moving to three-shift
production at its Alabama plant. The new shift will start in September and is expected to produce 20,000 units
by the end of the year.
HMC's third manufacturing plant in Beijing commenced pilot production in July. The plant has started with
facelifted versions of Hyundai's Avante sedan. The plant will initially produce the Avante HD, dubbed the Yue
Dong in China, and the Avante MD, or Lang Dong. Both these versions will be longer than the original Avante
model.
Q2-2012
41
Mazda Motor Corporation

FINANCIAL NEWS
Year to March 2012
Mazda returned to profit in its fiscal fourth quarter, but that was about the only good news the company could point
to as it reported a net loss of (107.7)bn, its fourth successive annual net loss and its worst result since 2001. The
results were of course affected by the earthquake and tsunami but Mazda's problems are more structural and it is
not bouncing back from the natural disasters at the same rate as its peers.
Full-year operating income fell by 62.5bn. The net decline reflected:
(36.3)bn volume and mix;
(37.6)bn exchange rate changes;
(2.7)bn increased marketing expense;
5.6bn cost reductions;
8.5bn other.
Figure 18:
Mazda results
Mazda
Unit
Group data
Yr to Mar 12
Q4-11/12
Data
2,033.1
(38.7)
(55.3)
(107.7)
38.12
% ch.
bn
bn
bn
bn
000's
1,016.4
226.2
361.9
170.8
257.5
(7.6)
Japan
Nafta
Europe
Other
000's
000's
000's
000's
000's
Revenue
Operating profit
Pre-tax profit
Net profit
mils
mils
mils
mils
2.00
(0.04)
(0.05)
(0.11)
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
mils
mils
mils
mils
units
53.34
(1.02)
(1.45)
(2.83)
26.7
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
(1.9)
(2.7)
(5.3)
(2.9)
Revenue by region
Japan
Nafta
Europe
Other
Intra-company
bn
bn
bn
bn
bn
1,745.0
571.6
360.4
294.2
(938.2)
(12.7)
Op. profit by region

Japan
Nafta
Europe
Other
Intra-company
bn
bn
bn
bn
bn
(18.4)
(40.3)
5.6
10.1
4.3
(156.6)
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Unit sales
(12.6)
(262.4)
(443.6)
0.0
9.7
(1.4)
(17.7)
(19.3)
9Mo-11/12
Data
614.8
15.6
11.3
5.1
38.12
% ch.
315.3
71.4
117.5
60.1
66.2
8.5
1.2
46.8
0.0
38.3
31.5
(1.7)
(25.1)
H1-11/12
Data
1,418.3
(54.3)
(66.5)
(112.8)
38.12
% ch.
701.2
154.8
244.4
110.6
191.3
(13.4)
(17.4)
(510.2)
(454.9)
(2.7)
0.2
(12.0)
(24.4)
(17.1)
Yr to Mar 11
Data
959.2
(21.6)
(45.0)
(39.9)
38.12
% ch.
469.7
108.6
152.5
74.0
134.5
(14.6)
(17.1)
(277.7)
(365.5)
(823.0)
(2.7)
(13.2)
(15.9)
(17.8)
(12.4)
Data
2,325.7
23.8
16.1
(60.0)
38.12
Q4-10/11
% ch.
7.5
152.0
(4.4)
1,100.1
206.2
367.2
207.6
319.2
14.2
(5.8)
20.9
(8.7)
49.6
Per unit
(5.4)
(275.8)
(471.9)
-
(12.6)
(262.4)
(7.6)
(3.4)
(2.7)
(9.4)
(17.7)
(5.2)
(10.9)
26.9
(28.8)
(21.4)
86.8
1.95
0.05
0.04
0.02
16.13
0.41
0.30
0.13
8.3
2.5
1.8
0.8
476.2
186.6
123.8
86.3
(258.2)
23.7
(7.2)
(1.2)
2.7
(2.5)
(6.8)
35.3
-
1.2
46.8
8.5
0.8
2.3
11.2
0.8
24.6
(3.5)
(13.2)
6.7
45.5
(40.3)
(137.9)
(22.0)
538.5
2.02
(0.08)
(0.09)
(0.16)
(4.7)
(573.6)
(509.8)
-
37.21
(1.42)
(1.75)
(2.96)
18.4
(15.1)
(521.7)
(464.9)
(11.0)
(3.8)
(4.7)
(8.0)
(4.6)
1,268.8
385.1
236.6
207.9
(680.0)
(16.9)
(42.1)
(33.1)
6.9
7.3
6.7
(5.8)
(8.1)
(20.0)
(23.7)
(1.4)
(16.2)
(359.3)
47.2
(21.2)
-
2.04
(0.05)
(0.10)
(0.08)
25.16
(0.57)
(1.18)
(1.05)
12.3
(3.0)
(308.1)
(410.9)
(946.7)
(14.8)
(282.7)
(372.9)
(843.3)
(12.2)
(2.3)
(4.7)
(4.2)
(3.3)
835.1
241.9
163.1
144.5
(425.5)
(17.0)
(17.5)
(22.3)
6.4
5.8
6.0
(273.1)
(6.2)
(4.6)
(24.1)
(16.0)
0.6
(15.8)
120.7
(12.5)
14.5
2.11
0.02
0.01
(0.05)
(5.9)
120.7
61.01
0.63
0.42
(1.58)
28.9
12.4
163.5
19.4
1.0
0.7
(2.6)
0.6
1.0
(2.3)
1,999.5
631.0
438.2
310.4
(1053.4)
32.6
(31.7)
7.9
12.8
2.3
7.1
10.3
(10.3)
37.8
6.5
5.7
64.4
125.4
138.4
(121.0)
Notes: (1) Q1 is Apr-Jun, Q2 is Jul-Sep, Q3 is Oct-Dec, Q4 is Jan-Mar (2) % ch is change versus corresponding year-ago data
Q2-2012
42
By geographic area the results were as follows:
Japan - external revenue of 824.4bn, and operating loss of (18.4)bn;

NAFTA - external revenue of 568.3bn, operating loss of (40.3)bn;
Europe - external revenue of 347.3bn, operating profit of 5.6bn;
Other - external revenue of 293.0bn, operating profit of 10.1bn.
Outlook
For the year to March 2013 the company is expecting revenue to increase by 8.2% to 2,200bn, reflecting a 7.5%
rise in unit sales. An operating profit of 30bn is forecast, a margin of just 1.4% and Mazda expects to do little
better than break even at the net level.
Corporate news
In July the company announced the sale of some of its shares in its consolidated subsidiary Toyo Advanced
Technologies Co. (Japan's leading manufacturer of internal grinding machines) Mazda plans to post
extraordinary profit of approximately 18.9bn in its consolidated results for the year ending March 2013.
In May Fiat and Mazda signed a non-binding Memorandum of Understanding for the development and
manufacturing of a new roadster for the Mazda and Alfa Romeo marques based on Mazdas next-generation
MX-5 rear-wheel-drive architecture. Although Fiat has denied it is looking to take a stake in Mazda, a deepening
of this new relationship is not impossible - Fiat's CEO, Sergio Marchionne, has acknowledged that Fiat is
looking for an Asian partner following the announcement of the alliance between PSA and GM. At the Geneva
Show in March, Mr. Marchionne commented: We talk continuously with Suzuki; we talk with Mazda; we talk
with everyone.
Mazda and Bermaz Motor have agreed to begin talks regarding the establishment this year of a joint venture
production and sales company in Malaysia. Mazda began local assembly of the Mazda3 last year and with the
new joint venture project, plans to begin local assembly of the Mazda CX-5 early in 2013. Mazda plans to
produce 3,000 CX-5s per year in Malaysia.
SALES & MODEL PLANS

Figure 19:
Brand
Mazda model plans

Model
Segment
Lifecycle
Start
Lifecycle
End
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
Mazda
AZ Wagon
Carol
Spiano
Mazda 1
Demio / Mazda2
Axela / Mazda3
Mazda4 / MPV
Atenza / Mazda6
MX-5
RX-8
CX-5
CX-7
Tribute
K
K
K
A
B
C
Compact MPV
D
Sports
Sports
Sport Wagon
Sport Wagon
SUV
2005
2004
2007
2009
2007
2009
2005
2007
2005
2003
2011
2006
2006
2013
2010
2012
2015
2011
2013
2011
2012
2011
2010
2010
2012
Mazda
Premacy / Mazda5
Compact MPV
2005
2011
Mazda
Mazda
Mazda
Biante
CX-9
B-Series
MPV
MPV
Pickup
2008
2006
1999
2013
2013
-
Mazdas domestic sales in the first half of calendar 2012 rose by 35% to 119,521 units. Although a significant
increase Mazda substantially under-performed the overall market which rose by 53.6%.
Q2-2012
43
In the 30 EU and EFTA states Mazda also under-performed, its new car registrations falling by 12.3%
compared to a 6.3% drop in the overall market. In the US Mazda saw an 18% rise, outperforming the 15% rise
in the overall market.
Mazda will hold the world premiere of the all-new Mazda6/Atenza at the 2012 Moscow Motor Show in
September 2012, a sign of the importance it attaches to the Russian market.
In June Mazda launched the Flairwagon in Japan. Though the micro-mini tall wagon is all-new to Mazda, it is a
rebadged Suzuki Palette.
At the end of July the Nikkei reported that Mazda had dropped plans to exports cars from its new Mexican
plant (start-up in 2013) to Brazil. The report follows the recent accord reached between Mexico and Brazil
under which Mexico has agreed to limit its automotive exports to Brazil to an average of about US$1.55 billion
over the next three years. The report concerning Mazda has not been confirmed and sounds at best an
incomplete rendering of a complex situation. Given that Mazda's new plant is not due to start production until
2013 the company would be faced with about two years of restricted or zero exports to Brazil. If Brazil tries to
restrict imports beyond the three year accord then it would surely face tit-for-tat restrictions on its own exports
by Mexico and its NAFTA partners and/or action by the WTO.
PRODUCTION
Mazda's global production rose by 10.2% in H1-2012 to 603,760 units. Domestic output was 17.6% higher at
419,746 units and overseas output was 3.8% lower at 184,014 units.
The company is to increase production capacity for its new crossover, the CX-5, from 200,000upa to
240,000upa. The increase will be achieved by expanding production from Ujina Plant No.2 to also include
Ujina Plant No.1. Since sales began in February, Mazda reports it has received orders surpassing its initial
estimations and upgraded its annual global sales target from 160,000 to 190,000 units for the year to March
2013.
In July Mazda announced it will double production capacity at its engine plant in Hiroshima from 400,000upa
to 800,000upa in October 2012. The plant produces Skyactiv-D diesel engines and Skyactiv-G gasoline engines.
Q2-2012
44
Mitsubishi Motors Corporation

FINANCIAL NEWS
Year to March 2012
Fiscal year 2011 was the first year of MMCs 'Jump 2013' mid-term business plan (see AQR Q1-2011), and it is to
the company's credit that despite the natural disasters of 2011 and slower pace of growth in many markets, it has
made no changes to the financial targets.
In the year to March 2012 revenue dipped by 1.2%, due to a drop in wholesale volumes and the strong yen.
Operating profit rose more by 58.1% to 63.7bn. The net increase of 23.4bn reflected:
16.8bn volume & mix;
0.5bn lower selling expense;
(10.5)bn exchange rates;
(10.6)bn other.
Figure 20:
Mitsubishi Motor results
Mitsubishi Motors
Unit
Group data
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Data
1,807.3
63.7
41.6
23.9
30.71
% ch.
bn
bn
bn
bn
000's
1,001
152
106
218
525
1.4
Japan
Nafta
Europe
Other
000's
000's
000's
000's
000's
Revenue
Operating profit
Pre-tax profit
Net profit
mils
mils
mils
mils
1.81
0.06
0.04
0.02
(2.5)
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
mils
mils
mils
mils
units
58.85
2.07
1.36
0.78
32.6
(1.2)
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
3.5
2.3
1.3
1.3
Revenue by division
Automotive
Financial services
Intra-company
bn
bn
bn
1,797.0
10.4
(0.1)
(1.2)

Automotive
bn
Financial services
bn
Intra-company
bn
60.3
3.5
(0.1)
Unit sales
Yr to Mar 12
Q4-11/12
(1.2)
58.1
36.8
53.2
33.8
(7.3)
12.8
0.0
2.7
9Mo-11/12
Data
514.2
25.2
14.8
10.3
30.71
% ch.
246
49
24
44
129
14.4
(0.7)
(10.1)
(30.8)
(42.3)
0.0
8.9
(14.3)
(26.7)
57.3
H1-11/12
Data
1,293.1
38.5
26.9
13.6
31.37
% ch.
755
103
82
174
396
(2.2)
(1.4)
213.9
0.0
(13.4)
24.2
10.1
(7.7)
Yr to Mar 11
Data
907.5
34.2
22.3
10.6
31.37
% ch.
519
72
61
117
269
(1.5)
4.9
453.4
522.5
0.0
(19.1)
41.9
19.4
(9.4)
Data
1,828.5
40.3
30.4
15.6
30.71
Q4-10/11
% ch.
26.5
189.3
162.5
228.3
33.8
987
164
94
218
511
2.8
(4.1)
6.8
29.0
(3.9)
Per unit
55.9
34.9
51.0
58.1
36.8
53.2
1.4
0.6
0.5
(3.3)
-
59.6
30.5
2.09
0.10
0.06
0.04
16.74
0.82
0.48
0.34
8.0
(13.2)
(21.5)
(39.5)
(49.6)
(0.7)
(10.1)
(30.8)
(42.3)
14.4
4.9
2.9
2.0
(0.5)
511.7
2.6
(0.1)
(0.6)
24.6
0.7
(0.1)
(10.0)
(1.2)
(1.4)
(1.8)
(3.3)
405.6
1.71
0.05
0.04
0.02
41.22
1.23
0.86
0.43
24.1
0.9
221.0
-
(1.4)
213.9
(2.2)
3.0
2.1
1.1
2.0
1,285.4
7.8
(0.1)
(1.3)
35.8
2.8
(0.1)
1.4
1.2
(3.8)
-
42.5
-
1.75
0.07
0.04
0.02
28.93
1.09
0.71
0.34
16.5
6.6
462.0
532.1
4.9
453.4
522.5
(1.5)
3.8
2.5
1.2
902.2
5.3
0.0
32.0
2.2
0.0
3.1
2.0
1.7
5.0
(3.9)
-
542.4
60.3
-
1.85
0.04
0.03
0.02
59.54
1.31
0.99
0.51
32.1
23.0
181.4
155.3
219.3
29.2
195.5
168.1
235.3
5.0
2.2
1.7
0.9
1,817.9
10.8
(0.2)
37.8
2.7
(0.2)
1.2
0.9
0.5
26.7
(1.1)
-
229.1
9.6
(3) Full-yr data from ann.report may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's
Q2-2012
45
Although the substantial increase in profit was from a low base, the operating margin of 3.5% was reasonably
healthy in comparison with most of MMC's peers. In the fourth quarter alone the margin was 4.9%.
Outlook
For the year to March 2012 MMC is anticipating a 9% increase in sales to 1.088 million units and a similar increase
in revenue to 1,980bn. Operating profit is forecast to rise by 10% to 70bn.
Corporate news
In July 2012 Mitsubishi announced the sale of the NedCar plant to VDL for 1, on condition that the 1,500
employees there do not lose their jobs. VDL is reported to be in discussion with BMW about producing Mini
models at the plant.
SALES & MODEL PLANS
Figure 21:
Mitsubishi Motor model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Mitsubishi
Colt
Small
2002
2012
Mitsubishi
Mirage (Colt replacement)
Small
2012
2019
Mitsubishi
Colt Plus (no replacement expected)
Mini-MPV
2004
2011
Mitsubishi
Delica D:2
Mini-MPV
2011
2017
Mitsubishi
Delica D:3
Mini-MPV
2011
2017
Mitsubishi
Delica D:5
MPV
2007
2012
Mitsubishi
Eclipse (Term. Aug' 11)
Coupe/Convertible
2006
2011
Mitsubishi
eK Wagon & eK Sport
City
2006
2012
Mitsubishi
Endeavor (Term. Aug' 11)
SUV
2004
2011
Mitsubishi
Galant/Grunder (no relacement expected)
Upper Medium
2003
2012
Mitsubishi
i/iCar (no replacement expected)
City
2008
2012
Mitsubishi
i-MIEV
City
2009
2014
Mitsubishi
Lancer/Galant Fortis (7th gen)
Lower Medium
2007
2013
Mitsubishi
Maven
MPV
2005
2012
Mitsubishi
Outlander
SUV
2005
2012
Mitsubishi
SUV
1998
2012
SUV
2008
2016
Mitsubishi
Pajero Mini (no replacement expected)

Pajero Sport/ Challenger /Nativa/Montero Sport/Pajero
Dakar
Pajero/Montero/Shogun
SUV
2006
2013
Mitsubishi
RVR/Outlander Sport/ASX
Crossover
2010
2017
Mitsubishi
Savrin (no replacement expected)
Mini-MPV
2001
2012
Mitsubishi
Signo (no replacement expected)
Lower Medium
2004
2012
Mitsubishi
Triton/Strada/L200
Pick-up
2005
2013
Mitsubishi
Toppo
City
2008
2015
Mitsubishi
Town Box
Mini-MPV
1999
2012
Mitsubishi
Zinger
MPV
2005
2013
Mitsubishi
In 2011/12 MMC sold just over one million units worldwide. Sales in Japan dipped by 7.3% to 152,000 units
but overseas sales rose by 3.1% to 849,000 units.
In October MMC will launch the Delica D:3, a new compact minivan, and the Delica Van, a new light
commercial vehicle in the Japanese market. Both models are supplied to MMC by Nissan.
PRODUCTION
Global production was 1.6% lower in H1-2012 at 538,454 units. Output in Japan at 277,647 units was 8.9%
down, overseas production was 7.6% higher at 260,807 units.
Q2-2012
46
In mid-July MMC started production of the Outlander Sport (ASX or RVR in some markets) compact
crossover at its US plant in Normal, Illinois. A commemorative line-off ceremony was held at the plant. Until
recently, the Illinois plant produced models designed specifically for the North American market, such as the
Galant, Eclipse, Eclipse Spyder, and the Endeavor. However, the Outlander Sport will also be exported to
Russia, Central and South America, and the Middle East. Planned capacity at Normal is about 50,000upa and
MMC is considering expanding it to 70,000upa in future.
At the start of July PCMA Rus, the PSA/MMC joint venture assembly plant at Kaluga in Russia held an
opening ceremony marking the start of full-scale production. Production of the first model, the Peugeot 408,
started in July. This will be followed by MMC's Outlander to be produced from November 2012. Later the
range of models to be assembled at the plant will be extended with Citroen cars.
Q2-2012
47
Nissan Motor Company

FINANCIAL NEWS
Apr-Jun 2012
Nissan's first-quarter results were weaker than expected as operating profit fell by 19.7% due to the strong yen and a
high level of marketing spend.
Group revenue was 2.6% higher at 2,136bn as sales rose by 11.4% to 1.04 million units but the operating margin
dropped by 1.6pts to 5.6%.
Figure 22:
Nissan results
Nissan
Unit
Group data
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Data
2,136.4
120.7
111.2
72.3
155.1
% ch.
bn
bn
bn
bn
000's
000's
000's
000's
000's
000's
000's
000's
1,039.9
136.8
324.4
168.4
196.5
213.7
11.4
Japan
US
Nafta
Europe
China
Other
Revenue
Operating profit
Pre-tax profit
Net profit
mils
mils
mils
mils
2.05
0.12
0.11
0.07
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
mils
mils
mils
mils
units
13.77
0.78
0.72
0.47
6.7
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
Unit sales
Q1-12/13
Yr to Mar 12
2.6
(19.7)
(15.1)
(15.0)
0.0
18.6
14.8
(8.6)
5.3
29.8
H1-11/12
Data
9,409.0
545.8
529.3
341.4
155.1
% ch.
4,455.8
639.1
1,435.7
762.2
760.2
858.6
14.6
7.2
1.6
10.2
7.0
0.0
11.4
12.3
13.5
20.6
Data
4,367.4
309.7
276.7
183.4
155.1
2,012.0
277.4
634.4
361.2
372.5
366.4
Q1-11/12
% ch.
1.1
(7.5)
(12.3)
(12.0)
0.6
8.2
(13.6)
8.2
23.2
13.0
11.7
Data
2,082.0
150.4
131.0
85.0
155.1
933.8
115.4
282.7
184.3
186.7
164.7
Yr to Mar 11
% ch.
1.6
(10.4)
0.3
6.9
(11.0)
0.2
24.4
19.0
4.9
Data
8,773.1
537.5
480.1
319.2
155.1
Q4-10/11
% ch.
3,888.1
573.5
1,278.3
671.5
652.8
711.9
16.7
72.5
239.0
653.1
2.4
23.1
(4.3)
20.6
30.4
(27.7)
Per unit
(7.9)
(27.9)
-
2.6
(19.7)
11.4
5.6
5.2
3.4
(1.6)
Revenue by division
Automotive bn
Financial services
bn
Intra-company bn
2,027.1
128.1
(18.9)
2.9

Automotive bn
Financial services
bn
Intra-company bn
82.4
34.8
3.5
(1.1)
(0.7)
4.1
59.3
(2.5)
(19.9)
2.11
0.12
0.12
0.08
60.66
3.52
3.41
2.20
28.7
5.8
5.6
3.6
8,988.8
490.6
(70.3)
391.7
140.1
14.0
(6.4)
(11.4)
(3.8)
(6.7)
7.2
1.6
10.2
7.0
14.6
(0.3)
0.2
(0.0)
8.0
(2.5)
38.8
(7.9)
39.6
20.9
2.17
0.15
0.14
0.09
28.16
2.00
1.78
1.18
13.0
7.1
6.3
4.2
4,153.5
241.8
(27.9)
226.1
76.0
7.6
(6.6)
(14.6)
(19.0)
(18.7)
0.5
(8.1)
(12.8)
(12.5)
7.6
(0.7)
(1.0)
(0.6)
1.9
(6.2)
89.1
(19.2)
46.4
150.0
2.23
0.16
0.14
0.09
13.42
0.97
0.84
0.55
6.0
7.2
6.3
4.1
(5.0)
(16.2)
-
1.3
(10.7)
6.6
(1.0)
(1.4)
(1.1)
1,970.7
123.1
(11.9)
(7.4)
110.3
35.7
4.4
36.3
2.4
65.7
280.3
2.26
0.14
0.12
0.08
56.56
3.47
3.10
2.06
25.1
6.1
5.5
3.6
8,320.4
503.3
(50.6)
425.5
100.4
11.6
(5.2)
40.1
175.5
511.9
14.0
68.4
231.0
635.3
20.2
2.0
3.6
3.1
18.9
(9.9)
40.5
88.2
29.5
44.2
Q2-2012
48
The net fall in operating profit of 29.7bn reflects:

54bn - purchase cost reductions;
53.4bn - volume & mix;
(76.4)bn - higher selling expense;
(25.7)bn - exchange rates;
(18.8)bn - R&D costs;
(18.6)bn - raw material & energy costs;
2.4bn - other.
The company was profitable in all its major regions, as follows:
Japan: 35.8bn (year-ago 14.2bn);

NAFTA: 31.2bn (72bn);
Europe: 5bn (9.2bn);
Asia: 47.2bn (47.6bn);
Other markets: 2.4bn (4.9bn).
Outlook
Despite the first-quarter setback Nissan has stuck to its full-year forecasts. For the year to March 2013 it expects a
9.5% revenue increase to 10,300bn on the back of a 10.4% rise in unit sales, outperforming the anticipated growth
of 5.3% in global demand. Operating profit is projected to rise by 28.2% to 700bn, a margin of 6.8%. Net profit is
projected to rise by 17.2% to 400bn.
Corporate news
At the end of June Daimler and Nissan signed a Memorandum of Understanding involving the Fuso Canter
and the Nissan Atlas range. The arrangement provides for the Fuso Canter light-duty truck (5 tonnes GVW) to
be supplied to Nissan. In return, Nissan will make the Atlas F24 light-duty truck (below 5 tonnes GVW)
available to Fuso, which will consequently expand the Fuso product range in the future.
SALES & MODEL PLANS
Figure 23:
Nissan model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
2012
2018
2013
2018
Infiniti
Compact Sedan (sub-G Series)
Infiniti
EV (based on Leaf)
Infiniti
EX (Skyline Crossover)
Lower
Medium
Lower
Medium
Crossover
2007
2015
Infiniti
FX
Crossover
2008
2013
Infiniti
G Coupe (Nissan Skyline Coupe) & G Convertible
Executive
2007
2013
Infiniti
G Sedan (Nissan Skyline)
Executive
2006
2012
Infiniti
M Sedan (Nissan Fuga)
Executive
2010
2016
Infiniti
M Hybrid or M35 Hybrid
Executive
2011
2016
Infiniti
QX (Nissan Patrol/Safari)
Crossover
2010
2017
Infiniti
JX crossover (IFV Infiniti Family Vehicle)
2012
2018
Nissan
Almera Classic/Sunny
2006
2010
Nissan
Altima sedan & hybrid, Altima coupe
2006
2012
Nissan
Armada (prev. Pathfinder Armada)
2004
2013
Nissan
Bluebird Sylphy (Xuanyi in China)
2005
2012
Nissan
Cedric (taxi)
1999
2011
Nissan
Cima Repl. by Fuga
Crossover
Lower
Medium
Upper
Medium
SUV
Lower
Medium
Upper
Medium
Executive
2001
2010
Nissan
Clipper Rio (MMC Townbox)
Kei
2007
2011
Nissan
Cube
City
2008
2015
Q2-2012
49
Nissan
D22
Pick-up
1998
2010
Nissan
Elgrand
MPV
2010
2017
Nissan
Fairlady Z/370Z
Sports
2008
2015
Nissan
Frontier Navara/Navara
Pick-up
2004
2012
Nissan
Fuga (Infiniti M)
Executive
2009
2014
Nissan
Fuga hybrid (Infiniti M)
2010
2015
Nissan
Grand Livina/Livina Geniss
2006
2013
Nissan
GT-R (R35)
Executive
Compact
MPV
Sports
2007
2014
Nissan
Juke
Crossover
2010
2017
Nissan
Kix (MMC Pajero Mini)
Kei
2008
2012
Nissan
Lafesta
2011
2017
Nissan
Leaf
2010
2017
Nissan
Logan Aprio
2007
2014
Nissan
March/Micra/Versa
2010
2017
Nissan
Maxima
2008
2013
Nissan
Moco
MPV
Lower
Medium
Lower
Medium
Small
Upper
Medium
Kei
2011
2016
Nissan
Murano
2007
2012
Nissan
Note
2004
2012
Nissan
NV200/NV200 Vanette
Crossover
Compact
MPV
MPV
2009
2016
Nissan
Otti
Kei
2006
2012
Nissan
Paladin
SUV
2010
2017
Nissan
Pathfinder
SUV
2004
2012
Nissan
Patrol/Safari
SUV
2009
2015
Nissan
Pivo 3
City
2015
2023
Nissan
Pixo
City
2009
2016
Nissan
Platina
Small
2002
2012
Nissan
President (now discontinued but also sold as Infiniti Q)
Executive
2003
2010
Nissan
Qashqai/Dualis/Xiaoke
Crossover
2006
2012
Nissan
Quest
MPV
2010
2017
Nissan
Rogue
Crossover
2007
2013
Nissan
Roox
2009
2014
Nissan
Sentra (North America)
2006
2012
Nissan
Sentra (Taiwan)
2001
2010
Nissan
Serena / Yumsun
2010
2016
Nissan
Skyline (also Infiniti G Sedan)
2006
2012
Nissan
Skyline Coupe (also Infiniti G Coupe)
2007
2013
Nissan
Skyline Crossover (Infiniti EX)
2009
2015
Nissan
Sunny
2010
2017
Nissan
Teana (Maxima in Australia)
2008
2014
Nissan
Tiida/Versa/Latio
2011
2018
Nissan
Titan
2003
2013
Nissan
Tsuru
1991
2013
Nissan
Universal Design Taxi (and electric variant)
Kei
Lower
Medium
Lower
Medium
MPV
Upper
Medium
Upper
Medium
Crossover
Lower
Medium
Upper
Medium
Lower
Medium
Pick-up
Lower
Medium
MPV
2010
2017
Nissan
US$2,500 car for India
2013
2021
Nissan
Wingroad
2005
2012
Nissan
X-Trail
Small
Lower
Medium
SUV
2007
2014
Q2-2012
Nissan
Xterra
Venucia
D50
Venucia
EV
Venucia
Teana-based?
Venucia
Other
50
SUV
Lower
Medium
Lower
Medium
Upper
Medium
2004
Term.
2012/13
2011
2018
2014
2021
2012
2019
2013
2020
During the first six months of calendar 2012 Nissan's worldwide sales rose 16.7% to 2,625,410 units, a
company record. Including mini-vehicles, Nissan sold 366,569 units in Japan, up 31.1% year-on-year. Sales
outside Japan increased 14.6% to a record 2,258,841. Sales increased in the US, Europe, China and other
regions. In China, sales increased 14% to a record 678,007. Sales in other regions increased 25.4% to 470,967
units, mainly due to increased demand in Brazil, Thailand and India.
For the year to March 2013 a 10.4% rise in retail sales is forecast with rises of:
5.3% to 0.69 million units in Japan;
8.3% to 1.52 million units in NAFTA;
1.0% to 0.72 million units in Europe;
8.3% to 1.35 million units in China;
29.6% to 1.07 million units in RoW.
In September Venucia, the new brand from Dongfeng Nissan in China will launch its second vehicle, the R50.
The new sports hatchback was developed by Dongfeng Nissan especially for the Chinese market and will be
built at the new Zhengzhou plant. It follows the Venucia D50, which was launched towards the end of April.
The all-new NV350 Caravan was launched in Japan in mid-June and Nissan announced that orders in the first
month reached 6,106 units, more than three times greater than targeted. First launched in 1973, the Caravan has
been used both as a commercial vehicle but also for hobbies or leisure.
In mid-July the new Nissan Note was unveiled. It goes on sales in Japan this autumn. Since its launch in 2005,
Nissan has sold 940,000 units of the current Note. The Japanese-market Note will be produced at Nissan
Motor Kyushu, the European model will go on sale in 2013 and be produced at Nissan's Sunderland plant in
the UK.
PRODUCTION
Nissan's global production during January-June increased 19.0% to a record 2,553,224 units. Domestic
production increased 28.7% to 578,439 units. The year-on-year comparison is distorted by the impact of the
earthquake in Japan last year. Production outside Japan increased 16.5% to a record 1,974,785 units. Production
increased in the US, Mexico, UK, Spain and China. In China, production increased 16.3% to a record 673,055
units. Production in other regions, mainly India, Indonesia, South Africa and Thailand saw an overall increase
of 19.5% year-on-year to 283,269 units.
In June Nissan's joint venture in China announced it will build an all-new manufacturing facility in Dalian,
Liaoning Province, China with an investment of up to Yuan 5bn (USD US$800m). The Dalian plant, scheduled
to begin manufacturing Nissan-branded passenger vehicles, will have an initial capacity of 150,000upa by 2014,
and will expand up to 300,000upa.
The Renault-Nissan Alliance will invest US$160m in Korea to meet anticipated demand for the next-generation
Nissan Rogue and to accelerate growth of Renault Samsung Motors. Production of the Nissan Rogue crossover
in Busan, Korea, will begin in 2014, with capacity of about 80,000upa.
In July Nissan laid the first stone of its new manufacturing complex in Aguascalientes, Mexico, following the
January announcement a US$2bn investment to expand capacity. The new complex will be located to the south
of Aguascalientes, near the airport, and will be 2.5-times larger than the existing plant. During Phase 1, it will
produce 175,000 compact vehicles per year (B-platform). To achieve this goal, Nissan will create 3,000 direct
jobs and generate approximately 9,000 indirect jobs. Furthermore, the complex will include a supplier park and
a quality proving ground.
Q2-2012
51
PSA Peugeot Citron

FINANCIAL NEWS
Jan-Jun 2012
Following its losses in the second half of 2011 PSA's performance deteriorated in H1-2012 as group revenue
dropped by 5.1% and automotive revenue fell by 10.5% due to the weak European and South American markets.
The company reported a recurring operating profit of 4m but non recurring expenses caused a reported operating
loss of (416)m. The biggest non-recurring expense item of 612m was mainly connected with losses in respect of
inventory in Iran (see below).
Figure 24:
PSA results
PSA
Unit
Group data
Revenue
Operating profit (5)
Pre-tax profit
Net profit
Employees
mils
mils
mils
mils
000's
Data % ch.
29,553
(5.1)
4
(680)
(745)
201.7
0.0
Data % ch.
15,264
(2.9)
201.7
Data % ch.
59,912
6.9
1,315 (26.8)
564 (56.8)
784 (37.6)
209.0
5.5
Data % ch.
31,135
9.7
1,157
995
904
201.7
0.0
Data % ch.
15,721
9.1
201.7
000's
000's
000's
1,619.0
955.0
664.0
828.9
482.10
346.80
(11.7)
3,549.4
2,113.7
1,435.7
1,859.9
1,090.8
769.1
938.5
551.59
386.87
(0.3)
18,254
2
(420)
(460)
18,415
-
9.9
16,752
-
9.5
Per employee
Revenue
Pre-tax profit
Net profit
Sales
units
146,520
20
(3,371)
(3,694)
8
Return on revenue
Pre-tax profit
Net profit
%
%
%
Revenue by division
Automobile
Faurecia
Gefco
Finance
Other & intra-group
mils
mils
mils
mils
mils
20,203
8,765
1,881
979
(2,275)

Automobile
Faurecia
Gefco
Finance
Other & intra-group
mils
mils
mils
mils
mils
(662)
303
63
271
29
Unit sales
Peugeot
Citroen
H1-12
Q2-12
(13.0)
(12.4)
(13.7)
Yr to Dec 11
(12.6)
(10.4)
H1-11
(1.5)
(1.3)
(1.7)
Q2-11
0.2
(0.2)
0.8
Q1-11
(2.4)
2.7
Per unit
Revenue
Pre-tax profit
Net profit
0.0
(2.3)
(2.5)
9.0
(99.6)
(178.5)
(194.7)
(5)
(100)
(168)
(182)
(13.0)
(4)
(5.5)
(5.4)
(10.5)
7.5
(6.7)
3.9
(11.1)
(263)
(10.9)
(55.9)
(1.1)
-
16,879
370
159
221
75,677
-
286,634
6,291
2,698
3,751
17
2.2
0.9
1.3
42,710
16,190
3,782
1,902
(4,672)
(92)
651
223
532
1
8.5
(25.7)
(56.2)
(36.7)
1
(31)
(59)
(41)
(6.6)
(1)
(1.4)
(0.9)
3.2
17.4
12.9
2.7
7.6
42.8
12.6
4.9
-
16,741
622
535
486
9.4
1.5
20.0
22.4
154,363
5,736
4,933
4,482
9
2
20
23
0.2
3.7
3.2
2.9
22,585
8,150
2,017
942
(2,559)
405
340
143
274
(5)
77,942
-
10
(0)
0.3
0.3
6.7
19.4
17.5
2.5
14.2
(23)
56.7
17.2
1.9
-
Notes: (1) Q1 Jan-Mar, Q2 Apr-Jun, Q3 Jul-Sep, Q4 Oct-Dec (2) % ch vs yr-ago data.

(3) Full-yr data from annual report may not reconcile to quarterly data due to restatements.
(4) Per Unit & Per Employee data include non-automotive op's (5) Operating profit excludes restructuring costs.
Q2-2012
52
The automotive division made a recurring operating loss of (662)m and a reported loss of (1,278)m.
Outlook
PSA now expects the European market to fall by 8% in 2012, having earlier anticipated a 5% fall. It forecasts
growth of 7% in China, 2% in Latin America and 9% in Russia. The company is focusing on keeping costs and debt
under control and is planning asset disposals of about 1.5bn.
Corporate news
In response to its deteriorating performance PSA has announced the planned closure of a French plant and job
cuts in France (see under 'Production'). The closure is part of a plan called 'Rebound 2015' which aims to save
1.5bn by 2015 and lead to breakeven in operational free cash flow by end 2014. The plan is additional to cost
reduction and cash management measures announced at the beginning of 2012 which will continue. It includes:
600m from "reorganising the French production base and dimensioning the structural costs of the
Group" i.e. principally the Aulnay closure and job cuts;
550m reduction in capital expenditure;
350m from the alliance with GM, half the savings are to come from purchasing synergies and the other
half from action plans to reduce design and production unit costs.
The company stated that: "These measures will contribute to restore the Automotive Divisions performance, by
increasing capacity utilisation in Europe and reducing the cost base in Europe, ahead of the full effects of the
Alliance with General Motors. They will be supported by the continuing upscaling of the brands and by the drive
towards increased globalization, with newly installed production capacities."
In July Toyota and PSA announced an agreement for PSA to supply Toyota with LCVs for sale in Europe
under the Toyota brand. Initially, starting in Q2-2013, PSA Citron will supply medium vans derived from the
Expert/Jumpy. A second phase will see the two firms collaborating on next generation vehicles which are to be
produced by PSA. The collaboration is expected to last beyond 2020.
Towards the end of July Fiat and PSA reached agreement for Fiat's shareholding in the SevelNord joint venture
to be transferred to PSA on or before December 31, 2012 at a nominal value. SevelNord will continue to
produce LCVs for the two groups until Euro6 emissions standards come into effect at the end of 2016.
In July PSA and BMW confirmed the planned break-up of BMW Peugeot Citron Electrification, the joint
venture with PSA for the development, production and purchasing of hybrid and electric powertrain
components, which was officially launched only in October 2011. Both events are a consequence of the alliance
between PSA and GM.
SALES & MODEL PLANS

Figure 25:
PSA model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Citron
AirCross
Crossover
2010
2017
Citron
Berlingo Multispace replacement
MPV
2016
2025
Citron
C1 replacement
City
2011
2017
Citron
C2 replacement
Small
2013
2021
Citron
C3 Picasso replacement
Compact MPV
2016
2023
Citron
C3 replacement
Small
2016
2023
Citron
Lower Medium
2010
2016
Compact MPV/MPV
2012
2018
Citron
C4 hatchback
C4 Picasso/Grand Picasso
replacement
C4 sedan replacement
Lower Medium
2011
2017
Citron
C5 replacement
Upper Medium
2015
2022
Citron
C8 replacement
MPV
2011
2020
Citron
C-Cactus (Dacia/Renault Logan rival)
Small
2011
2019
Citron
C-Crosser replacement
SUV
2013
2020
Citron
C-Zero (EV)
City
2010
2015
Citron
DS3 & DS3 hybrid
Small
2015
2021
Citron
Q2-2012
53
Citron
DS3 hybrid
Small
2013
2015
Citron
DS4
Lower Medium
2011
2018
Citron
DS5
Crossover
2011
2018
Citron
DS9 HYbrid4 (C6 replacement)
Executive
2015
2022
Citron
Nemo Combi replacement
Compact MPV
2015
2023
Citron
restyled Mitsubishi ASX
Crossover
2012
2017
Citron
Revolte (EV)
Small
2013
2020
Peugeot
108
City
2011
2017
Peugeot
207 Brasil replacement
Small
2013
2018
Peugeot
208 & 208 HYbrid2
Small
2012
2018
Peugeot
3008 HYbrid4
Crossover
2011
2016
Peugeot
3008 HYbrid4 Plug-In
Crossover
2012
2016
Peugeot
3008 replacement
Crossover
2016
2023
Peugeot
308 replacement
Lower Medium
2014
2021
Peugeot
4008
SUV
2013
2020
Peugeot
408
Lower Medium
2010
2016
Peugeot
5008 replacement
Compact MPV
2015
2021
Peugeot
508
Upper Medium
2010
2016
Peugeot
808
MPV
2011
2020
Peugeot
BB1
City
2013
2020
Peugeot
Bipper Tepee replacement
Compact MPV
2015
2023
Peugeot
Dacia/Renault Logan rival
Small
2011
2019
Peugeot
Hoggar
Pick-up
2010
2017
Peugeot
iOn (EV)
City
2010
2015
Peugeot
Partner Tepee replacement
Compact MPV
2016
2024
Peugeot
RCZ (and RCZ HYbrid4)
Coupe
2010
2017
Peugeot
restyled Mitsubishi ASX
Crossover
2012
2017
First-half sales were 13% lower at 1,619,000 units. The decline in sales of CBU (completely built-up-units) was
10.6% to 1,476,000 units, as sales fell by:
15.2% in Europe to 980,000 units;
20.8% in Latin America to 122,000 units.
These declines were partly offset by gains in Russia, China and RoW. However, the total sales figure was brought
lower by the drop in sales of CKD units.
CKD sales (nearly all Peugeot brand) have more than doubled since 2007 reaching 458,000 in 2011 (2010: 477,000).
In 2011 these sales represented 13% of all sales. In recent times most of the CKD shipments have been to Iran, but
sanctions have led to their suspension during 2012 and this resulted in a 31% drop in CKD sales over the first-half
of the year to 143,000 units.
As well as a desire to reduce its dependence on the European market, PSA has long held the ambition to
develop a presence in the premium sector, securing the higher unit profits associated with premium models. In
the past this has involved PSA (and the same comment applies to Renault) trying to take on the German
premium producers at their own game and produce competitors to the 5-Series, E-Class etc. These attempts
repeatedly failed, models such as Peugeot's 607 and Renault's Vel Satis sold in low volumes and made no
headway against the German premium producers. PSA now sums up its approach in the following way:
The Groups strategy aims to increase the value of the Peugeot and Citroen brands by accentuating the move
upmarket. In 2011, this led to a further increase in the proportion of premium vehicle sales, to 18% of the total
versus 13% in 2010.
Q2-2012
54
The company has somewhat redefined premium and is not trying to take on the Germans head-on but is simply
moving a proportion of sales on to higher price models with the Citroen DS range and Peugeot models such as the
207CC, 308CC, RCZ and 3008. The proportion of its sales defined as premium increased to 18% in 2011. Whether
or not this new strategy should truly be termed 'premium' can be debated. Other mass-market OEMs also have
models and derivatives on which unit profits are higher. However, the key point is that these premium models are
achieving higher average prices (see below), high levels of conquest sales and improved residual values.
The company has attracted some criticism for pursuing a premium strategy at a time when demand is subdued in
many markets and many consumers are thought to be more interested in economy than luxury. In our view such
criticisms are misguided for two reasons:
There is demonstrably still an appetite for luxury and premium models in all the major markets, as sales of
the traditional premium brands attest.
PSA is not neglecting the budget sector. Later this year it will launch the Peugeot 301 and Citroen C-Elysee
models.
The 301/C-Elysee have been developed to adapt to all conditions of use, and extremes (hot countries, cold
countries, poor roads). There is great emphasis on space and value for money. The new models are expected to
become one of the companys best-sellers. The new models are very much a response to the success of the
Renault/Dacia Logan which was launched in 2004 and has sold over two million units.
The 301 first goes on sale in November 2012 in Turkey then progressively: Central and Eastern Europe, Russia,
Ukraine, Greece, Maghreb, Middle East, Gulf and African States, plus Latin America.
PRODUCTION
PSA's global output of cars and LCVs fell by 18.5% in H1-2012, to 1,605,000 units.
During the first half, capacity utilisation in PSA's European plants averaged 76% and for its small-car plants the
figure was even lower. This was the background to the announcement in mid-July of the planned closure of the
Aulnay assembly plant and the down-sizing of Rennes as well as job cuts at other plants throughout France and
at PSA's headquarters. Further cuts cannot be ruled out and the Mangualde plant in Portugal (where the
Berlingo/Partner reach the end of their current lifecycle in 2015) looks vulnerable.
Outside western Europe, the company is continuing with its expansion plans in China, Brazil and Russia, but
the planned new assembly plant in India (where the ground-breaking ceremony was held at the end of
November 2011) has been put on hold. It seems the possibility of PSA models being produced at one of GM's
two Indian assembly plants is at least being considered but there have been some contradictory comments by
PSA and GM officials in India on the subject.
At the start of July PCMA Rus, the PSA/MMC joint venture assembly plant at Kaluga in Russia held an
opening ceremony marking the start of full-scale production. Production of the first model, the Peugeot 408,
started in July. This will be followed by MMC's Outlander to be produced from November 2012. Later the
range of models to be assembled at the plant will be extended with Citroen cars.
Q2-2012
55
Renault Automobile
FINANCIAL NEWS
Jan-Jun 2012
Like PSA, Renault suffered a decline in its first-half results but unlike PSA it remained profitable at the operating
and net levels.
Group revenue dropped by 0.8% as a 1.4% drop in automotive revenue was partly offset by an increase in the
finance division's contribution. The automotive division's recurring operating profit dropped to 87m from 221m
in H1-2011.
Figure 26:
Renault results
Renault
Unit
Group data
H1-12
Q2-12
Data
20,935
482
1,022
786
124.3
% ch.
mils
mils
mils
mils
000's
000's
000's
000's
000's
1,328.4
1,113.9
33.2
181.3
(3.3)
15,759
363
769
592
Per employee
Revenue
Pre-tax profit
Net profit
Sales
units
168,414
3,877
8,222
6,323
10.7
Return on revenue
Pre-tax profit
Net profit
%
%
%
Revenue by division
Automobile
Finance/Other
Automobile
Finance/Other
Revenue
Pre-tax profit
Net profit
Employees
Unit sales
Renault
Samsung
Dacia
(0.8)
(23.5)
(18.1)
(37.3)
0.0
(2.4)
(41.2)
2.5
Yr to Dec 11
Data
11,400
124.3
% ch.
689.9
576.1
15.1
98.7
1.2
6.8
0.0
1.9
(42.3)
9.4
H1-11
Data
42,628
1,091
2,647
2,139
128.3
% ch.
2,722.1
2,260.7
118.1
343.2
3.6
9.4
(0.7)
(25.4)
(38.7)
3.2
6.8
(27.0)
(1.8)
Q2-11
Data
21,101
630
1,248
1,253
124.3
% ch.
1,374.4
1,141.0
56.5
176.9
1.9
7.3
(19.2)
24.4
52.2
0.0
5.8
(35.6)
(2.9)
Q1-11
Data
10,670
124.3
% ch.
681.8
565.3
26.2
90.2
(1.8)
0.7
0.0
2.4
(42.0)
(6.6)
Per unit
Revenue
Pre-tax profit
Net profit
2.6
(20.8)
(15.3)
(35.1)
(0.8)
(23.5)
(18.1)
(37.3)
(3.3)
2.3
4.9
3.8
(0.7)
mils
mils
19,863
1,072
(1.4)
mils
mils
87
395
(61)
(1.0)
(2.2)
11.9
(3)
16,523
-
5.6
91,708
5.6
6.8
1.2
10,850
550
-
6.6
11.8
15,660
401
972
786
332,170
8,501
20,626
16,668
21.2
5.6
(4.2)
(28.0)
(40.8)
5.9
(3.8)
(27.7)
(40.6)
0.3
2.6
6.2
5.0
(0.3)
40,679
1,949
9.4
328
763
(17)
(2.9)
(3.9)
8.3
15,353
458
908
912
169,749
5,068
10,040
10,080
11.1
5.3
(20.7)
22.1
49.4
7.3
(19.2)
24.4
52.2
1.9
3.0
5.9
5.9
(1.0)
20,143
958
7.3
221
409
(46)
0.8
1.8
7.6
11
15,651
-
2.5
85,836
5.5
0.7
(1.8)
10,178
492
0.4
7.0
Notes: (1) Q1 is Jan-Mar, Q2 is Apr-Jun, Q3 is Jul-Sep, Q4 is Oct-Dec (2) % ch is change versus year-ago data
(3) Full-year data is taken from annual report. It may not reconcile to quarterly data due to restatements.
(4) Per Unit & Per Employee data include non-automotive op's (5) Operating profit excludes restructuring costs.
Q2-2012
56
The decline reflected:
(211)m - product mix, price and product enhancements;

(176)m - volume decline;
197m - cost reductions including a 72m increase in raw materials);
59m - reduction in general expenses.
Group pre-tax profit dropped by 18.4% to 1,022m, helped by a 564m contribution from Nissan (H1-2011:
441m). Due to a higher tax charge, net profit fell more sharply, down 37.2% to 786m.
Outlook
The company has understandably given cautious view of its prospects for the rest of 2012, saying that so long as
European demand doesn't deteriorate further, it remains in line to achieve its target of positive free cash flow in its
automotive operations.
Corporate news
Renault, LG Chem and the CEA (French Alternative Energies and Atomic Energy Commission) are preparing to
sign a three-way agreement in September concerning next-generation battery production. In 2010, Renault and the
CEA initiated a strategic partnership in the areas of clean vehicles and mobility for all. As part of this partnership,
they signed several research agreements including a strategic co-operation contract for new battery technologies.
The joint Renault/CEA laboratory advanced batteries, set up as part of this agreement, has been tasked with
developing new technology for lithium-ion batteries in the medium term. The studies conducted by the laboratory
since 2010, have now reached a sufficient stage of maturity to plan life-sized tests with a manufacturer.
Consequently a three-way agreement between Renault, CEA and LG Chem is currently being finalised and should
be signed in September. This agreement complements the studies currently under way between Renault and the
CEA, which have a broader reach, and will concern only the development of next-generation batteries. These
batteries will deliver higher performance in terms of durability, and fast-charging capacity. LG Chem, which is
recognised as a leading global player in electric batteries, will provide its technological expertise in this field, acquired
over a period of over 15 years. To date, LG Chem has filed more than 6,000 patents.
SALES & MODEL PLANS
Figure 27:
Renault model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Renault
Clio
Small
2006
2012
Renault
Fluence
Lower Medium
2009
2014
Renault
Fluence Z.E.
Lower Medium
2011
2016
Renault
Kangoo be bop
Compact MPV
2015
2022
Renault
Koleos
Crossover
2015
2022
Renault
L90 (Logan)
Small
2009
2015
Renault
Laguna
Upper Medium
2012
2018
Renault
Latitude (Samsung SM5)
Upper Medium
2010
2015
Renault
Mgane
Lower Medium
2013
2021
Renault
Modus & Grand Modus
Compact MPV
2011
2018
Renault
Crossover
2012
2019
Crossover
2015
2021
Renault
Nissan Juke rival

Ondelios (Espace & Grand Espace
replacement)
Scala
Lower Medium
2010
2013
Renault
Scnic & Grand Scnic
Compact MPV
2015
2021
Renault
Symbol/Thalia
Small
2008
2015
Renault
Tondar90 (Dacia Logan)
Small
2007
2015
Renault
Trafic Gnration/Passenger
MPV
2013
2021
Renault
Twingo
City
2007
2013
Renault
Q2-2012
57
Renault
Twingo Z.E.
City
2013
2019
Renault
Twizy Z.E.
City
2011
2018
Renault
US$2,500 car for India
2012
2020
Renault
Wind
2016
2022
Renault
Zo Z.E. (EV)
City
CoupConvertible
Small
2012
2019
Samsung
New SM3
Lower Medium
2009
2016
Samsung
New SM3 Z.E.
Lower Medium
2011
2016
Samsung
QM5
Crossover
2015
2023
Samsung
SM1 (Hyundai Veloster rival)
Coup
2011
2017
Samsung
SM3 CE (Classic Edition)
Lower Medium
2002
2013
Samsung
SM5 (Renault Latitude)
Upper Medium
2009
2014
Samsung
SM7
Upper Medium
2010
2016
Renault's worldwide sales dropped by 3.3% in H1-2012 to 1,328,000 units. The decline was wholly attributable
to the European market where sales fell by 14.8% to 708,095 units. Sales were higher in the Americas, AsiaPacific, Euromed-Africa and Eurasia.
Renault is forecasting 5% growth in the global market in 2012. Offsetting the 6-7% decline in Europe are
anticipated rises of 13% in Eurasia, 10% in Asia-Pacific, 5% in the Americas and 4% in Euromed-Africa.
Renault's 2012 launches include the Twizy and Zoe EVs, a facelifted Twingo and Clio IV, the Pulse and a Bsegment sedan in India, the Dacia Lodgy, Dokker and a new Sandero. The fourth-generation Clio was unveiled
in July, some 11.5 million sales after the launch of the original model in 1990. The fourth-generation Clio will
be manufactured in Flins (France) and Bursa (Turkey) on a new version of the Renault-Nissan Alliances
common B platform.
Renault China is ready to start phase two of its current development strategy for the local market, a phase that
will last three years, Beijing News has reported. The first phase of the plan ran from 2009 to 2011. In the
second phase, the company plans to improve the quality of its customer service and expand the scope of its
sales network. The report claims that in this phase Renault will introduce new promotional offers aimed at
attracting new customers. These offers will include zero interest financing and discounts for returning buyers.
In this phase, the company also intends to cut sales costs, thereby boosting its overall profitability. By the end
of the year, the company plans to have 115 dealerships operating in China, with its sales networks reaching
third- and fourth-tier cities.
PRODUCTION
First-half production dropped by 11% to 1,293,484 units.
The Renault-Nissan Alliance will invest US$160m in Korea to meet anticipated demand for the next-generation
Nissan Rogue and to accelerate growth of Renault Samsung Motors. Production of the Nissan Rogue crossover
in Busan, Korea, will begin in 2014, with capacity of about 80,000upa.
Despite the Flins plants starting production of the fourth-generation Clio soon (see above), Renault has
confirmed that it plans to cut 300 jobs at the plant over the next two years. It intends the job reductions to be
achieved through early retirement and voluntary departures without any compulsory redundancies. As well the
soon-to-be-replaced current generation Clio, Flins is preparing for production of the model's successor as well
as the Zoe electric car, due to be launched later this year.
Renault's Chief Operating Officer, Carlos Tavares, has indicated that the company is targeting a lower
breakeven point at 2.4 million upa, down from 2.6 million upa currently. Speaking at the Automotive News
Europe Congress event in Monte Carlo, Tavares was quoted as saying: "Reducing the breakeven point of the
company is a must ... we want to protect ourselves from volatility. That means in our mind being able to absorb
a (vehicle sales drop) of 20%."
Q2-2012
58
Suzuki Motor Corporation

FINANCIAL NEWS
Year to March 2012
Suzuki reported a 19.3% rise in net profit for 2011/12 fiscal year, as growth in its operating margin helped offset
higher non-recurring losses.
Operating profit was 11.6% higher at 119.3bn but revenue dropped by 3.7% so the operating margin grew by
0.6pts to 4.7%. The net increase of 12.4bn reflects:
43.3bn lower expenses;

35.3bn lower depreciation;
(54.2)bn change in sales & model mix;
(28.9)bn exchange rates;
(5.7)bn increased R&D.
Figure 28:
Suzuki results
Suzuki
Unit
Yr to Mar 12
Q4-11/12
9Mo-11/12
Group data
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
bn
bn
bn
bn
000's
Data
2,512.2
119.3
116.8
53.9
52.7
Data % ch.
714.2
5.0
31.6
118.3
28.0
117.1
13.3 417.3
52.7
0.0
Data % ch.
1,798.0
(6.7)
87.7
(5.1)
88.7 (15.7)
40.6
(4.7)
52.7
0.5
Data % ch.
1,226.2
(7.0)
64.7
(5.9)
58.7 (20.4)
32.0
5.3
52.4
0.0
Data
2,608.2
106.9
118.2
45.2
52.7
2,560.0
596.0
1,964.0
(3.1)
763.0
195.0
568.0
1,797.0
401.0
1,396.0
(7.2)
Japan
Other
000's
000's
000's
1,205.0
261.0
944.0
2,643.0
588.0
2,055.0
Revenue
Operating profit
Pre-tax profit
Net profit
mils
mils
mils
mils
0.98
0.05
0.05
0.02
(0.6)
1.00
0.05
0.05
0.02
0.5
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
mils
mils
mils
mils
units
47.64
2.26
2.21
1.02
48.5
(3.7)
4.7
4.6
2.1
0.6
Revenue by division
Automobile bn
Motorcycle bn
Other bn
2,209.0
254.8
48.5
(4.9)

Automobile bn
Motorcycle bn
Other bn
114.6
(2.4)
7.2
Unit sales
(3.7)
11.6
(1.2)
19.3
0.0
1.4
(4.4)
8.1
28.3
2.5
H1-10/11
(8.0)
(7.0)
Yr to Mar 11
(4.0)
(15.0)
(0.4)
Q4-10/11
5.6
34.7
27.8
56.2
2.9
12.4
(5.5)
18.9
Per unit
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
15.2
2.0
23.2
11.6
(1.2)
19.3
(3.1)
0.1
0.4
(1.1)
76.2
5.6
(77.5)
(22.3)
0.94
0.04
0.04
0.02
13.54
0.60
0.53
0.25
4.4
3.9
1.9
634.8
66.0
13.5
28.8
0.4
2.5
(2.9)
102.0
100.9
378.7
5.0
118.3
117.1
417.3
2.3
2.0
1.5
3.2
(7.6)
(325.6)
103.5
(110.0)
(39.9)
2.3
(9.1)
2.8
34.10
1.66
1.68
0.77
34.1
(16.2)
4.9
4.9
2.3
(0.5)
1,574.2
188.8
35.0
85.8
(2.8)
4.7
(7.2)
(5.6)
(5.2)
(7.7)
0.1
0.0
(7.8)
1.4
4.6
(9.1)
(60.2)
(8.1)
1.02
0.05
0.05
0.03
(3.2)
(2.0)
(17.1)
9.6
23.40
1.24
1.12
0.61
23.0
(20.4)
5.3
4.8
2.6
(0.8)
1,062.0
137.7
26.5
60.3
0.7
3.7
(7.0)
(5.9)
5.3
(4.0)
0.1
0.3
(9.1)
4.9
38.7
(11.9)
(117.9)
(18.7)
0.99
0.04
0.04
0.02
(6.0)
19.8
13.7
39.0
49.46
2.03
2.24
0.86
50.1
2.7
31.0
24.2
51.9
9.3
4.1
4.5
1.7
0.9
0.8
0.6
2,323.0
257.7
27.5
(2.0)
108.5
(10.8)
9.2
(48.6)
6.4
24.0
19.8
(6.1)
(3) Full-yr data taken from ann. report may not reconcile to quarterly data due to restatements. (4) Per Unit & Per Employee data include non-automotive op's
Q2-2012
59
In the automobile division the operating margin was higher than the group figure, at 5.2%, 0.4pts above the
2010/11 result.
Outlook
Suzuki is less upbeat on the prospects for 2012/13 than several of its peers. It anticipates a 3.5% rise in revenue and
an increase of just 0.6% in operating profit to 120bn, a margin of 4.7%.
The company anticipates the margin decline will occur due to adverse exchange rates and other expense increases
including higher R&D spending.
Corporate news
In June Mazda launched the Flairwagon in Japan. The micro-mini tall wagon is a rebadged Suzuki Palette,
supplied by Suzuki which also supplies the model to Nissan which badges it as the Roox.
Suzuki has expressed confidence that it will be successful in terminating its relationship with VW as legal
arbitration gets under way.
SALES & MODEL PLANS

Figure 29:
Suzuki model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Maruti Suzuki
(5th gen) Alto/Alto K-10
Small
2000
2013
Maruti Suzuki
(seventh generation) A-star
Small
2008
2015
Maruti Suzuki
Eeco
Mini-MPV
2010
2022
Maruti Suzuki
Estilo
City
2007
2020
Maruti Suzuki
Gypsy
SUV
1985
2013
Maruti Suzuki
Gypsy replacement
SUV
2013
2024
Maruti Suzuki
Kizashi
Upper Medium
2011
2017
Maruti Suzuki
Kizashi replacement
Upper Medium
2017
2024
Maruti Suzuki
M800 (no direct replacement expected)
City
1984
2016
Maruti Suzuki
Omni (no direct replacement expected)
Micro-MPV
1994
2016
Maruti Suzuki
R111
Mini-MPV
2011
2020
Maruti Suzuki
Ritz
City
2009
2015
Maruti Suzuki
Ritz replacement (twin of the Suzuki Splash)
City
2015
2022
Maruti Suzuki
Swift & Dzire
Small
2005
2011
Maruti Suzuki
Swift replacement/Dzire replacement
Small
2011
2016
Maruti Suzuki
SX4 Sedan
Small
2007
2014
Maruti Suzuki
SX4 Sedan replacement
Small
2014
2021
Maruti Suzuki
Wagon R
City
2010
2020
Suzuki
(seventh gen) Swift
Small
2015
2020
Suzuki
(sixth gen) Swift
Small
2010
2015
Suzuki
Alto Lapin
Kei
2008
2014
Suzuki
Alto Lapin replacement
Kei
2014
2020
Suzuki
APV Arena
Mini-MPV
2004
2012
Suzuki
APV Arena replacement
Mini-MPV
2012
2020
Suzuki
Equator (no replacement expected)
Pick-up
2008
2011
Suzuki
Escudo replacement
SUV
2014
2021
Suzuki
Escudo/Grand Vitara/Vitara
SUV
2005
2014
Suzuki
Friend & Landy (China)
Mini-MPV
2006
2013
Suzuki
Friend & Landy replacements (China)
Mini-MPV
2013
2020
Suzuki
Jimny & Jimny Sierra

Jimny replacement & Jimny Sierra
replacement
Kei & SUV
1998
2011
Kei & SUV
2011
2024
Suzuki
Q2-2012
60
Suzuki
Kizashi
Upper Medium
2009
2016
Suzuki
Kizashi Hybrid
Upper Medium
2012
2016
Suzuki
Kizashi replacement
Upper Medium
2016
2023
Suzuki
Landy
Mini-MPV
2010
2016
Suzuki
Landy replacement
Mini-MPV
2016
2022
Suzuki
MR-Wagon
Kei
2010
2014
Suzuki
MR-Wagon replacement
Kei
2014
2018
Suzuki
Northstar e+
City
2001
2013
Suzuki
Northstar e+ replacement (China)
City
2013
2020
Suzuki
Palette & Palette SW
Kei
2008
2013
Suzuki
Palette replacement
Kei
2013
2018
Suzuki
Solio
City
2011
2016
Suzuki
Solio replacement
City
2016
2021
Suzuki
Splash
City
2007
2014
Suzuki
Splash replacement
City
2014
2021
Suzuki
Swift plug-in hybrid
Small
2011
2012
Suzuki
Swift+ (Canada only, no direct replacement)
Small
2003
2011
Suzuki
SX4 replacement/Tianyu SX4 replacement
Small
2012
2017
Suzuki
SX4/Tianyu SX4
Small
2005
2012
Suzuki
Wagon R & Stingray replacements
Kei
2013
2018
Suzuki
Wagon R & Wagon R Stingray
Kei
2008
2013
During the first six months of 2012 Suzuki's domestic sales (cars and CVs) rose by 38.4% to 367,052 units,
under-performing the 53.6% rise in the overall market.
As discussed in the previous edition of this report, Suzuki's sales in the US remain weak and the rumours about
the company's possible withdrawal from the market are flourishing. In H1-2012 Suzuki's sales in the US
dropped by 3% to just 13,000 units, under-performing the 15% increase in the overall market. It seems clear
that doing nothing is not an option - Suzuki needs either to quit the market or make a major investment in
renewing its position.
PRODUCTION
In India Maruti Suzuki India has signed an agreement to purchase about 700 acres of land for its new plant in
Gujarat state, western India. The new plant in Gujarat will join the two existing plants in Gurgaon and Manesar,
both located in Haryana. The Manesar plant is also strengthening its production capacity. The third assembly
line (Manesar C line) is scheduled to start its operation in mid 2013 with capacity of 250,000upa. With this line
in operation, the total capacity of Maruti Suzuki would be 900,000upa in Gurgaon and 850,000upa in Manesar,
a total of 1.75m upa.
Maruti Suzuki plans to start the construction of the new plant in Gujarat after the Manesar C line officially
starts its operation. The plant in Gujarat is planned to start its operation from between 2015 and 2016. The
initial capacity of the plant is planned at 250,000upa with the total investment amount of approximately 60bn
(40bn rupees). With this plant in operation, total capacity of Maruti Suzuki would be 2 million upa.
The Indian operations have been in the headlines for different reasons during July. Production at Manesar was
stopped after a riot by workers that killed a senior manager and seriously injured scores of others. Maruti
Suzuki has said it will not restart production at the plant until completion of an investigation into the incident.
The Indian authorities have already arrested around 100 people for murder and arson but say they want to
investigate the entire 3,000-strong labour force. Around two dozen senior managers are still hospitalised, mostly
with broken arms and legs. Apart from the immediate shock at the death and injuries, the incident has raised
fears about the future of the plant and concern about the wider message it sends to potential investors in India.
In 2011, the Manesar plant lost about 64 work days in three separate rounds of strikes and lockouts. The unrest
led to lost production of around 65,000 cars.
Q2-2012
61
Toyota Group
FINANCIAL NEWS
Year to March 2012
Toyota finished the 2011/12 fiscal year with a strong increase in profits but its full-year figures were dragged down
by the adverse combination of natural disasters, strong yen, and, in the US particularly, tougher competition.
The company reported a 24% drop in full-year consolidated operating profit of 355.6bn on revenue which was 2.2%
lower at 18,584bn. The operating margin dropped by 0.6pts to 1.9% - a substantial fall for a company which
achieved margins in the 7.7-9.6% range over the seven years to March 2008.
The net decrease in operating profit of 112.7bn reflects:
(250)bn - exchange rates;

150bn - marketing activities;
150bn - cost reductions;
(162.6)bn - other.
Figure 30:
Toyota results
Toyota
Unit
Group data
Yr to Mar 12
Q4-11/12
Data
18,583.7
355.6
432.9
283.6
317.7
% ch.
bn
bn
bn
bn
000's
000's
000's
000's
000's
000's
000's
7,352
2,071
1,872
798
1,327
1,284
0.6
Japan
Nafta
Europe
Asia
Other
Revenue
Operating profit
Pre-tax profit
Net profit
mils
mils
mils
mils
2.53
0.05
0.06
0.04
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
mils
mils
mils
mils
units
58.49
1.12
1.36
0.89
23.1
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
Revenue by division
Automotive
Finance
Other & intra-co.
Automotive
Finance
Other & intra-co.
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Unit sales
(2.2)
(24.1)
(23.2)
(30.5)
0.0
8.2
(7.8)
0.3
5.8
(2.2)
9Mo-11/12
Data
5,702.5
238.5
235.7
121.0
317.7
% ch.
2,357
713.4
603.9
218.9
433.7
387.3
31.6
22.8
417.5
467.2
376.4
0.0
67.9
25.0
(0.5)
25.7
21.8
H1-11/12
Data
12,881.1
117.1
197.2
162.4
317.7
% ch.
4,995
1,357
1,269
579
893
897
(9.5)
(10.2)
(72.3)
(62.2)
(57.6)
0.0
(8.8)
(18.1)
0.6
(1.8)
(9.9)
Yr to Mar 11
Data
8,015.9
(32.6)
(1.4)
81.5
322.8
% ch.
3,026
797
689
361
614
565
(18.5)
(17.2)
(110.1)
(100.4)
(71.8)
1.5
(26.6)
(33.8)
(1.9)
6.8
(12.5)
Data
18,993.7
468.3
563.3
408.2
317.7
7,308
1,913
2,032
796
1,254
1,313
Q4-10/11
% ch.
0.2
217.4
93.3
67.1
(0.9)
1.0
(11.5)
(3.1)
(7.3)
28.1
15.2
Per unit
(2.7)
(24.5)
(23.6)
(30.9)
(2.2)
(24.1)
(23.2)
(30.5)
0.6
1.9
2.3
1.5
(0.6)
bn
bn
bn
16,994.5
1,100.3
488.8
(2.0)
bn
bn
bn
21.7
306.4
27.5
(0.6)
(0.6)
(7.7)
5.3
(14.5)
-
2.42
0.10
0.10
0.05
17.95
0.75
0.74
0.38
7.4
(6.7)
293.2
331.0
262.0
22.8
417.5
467.2
376.4
31.6
4.2
4.1
2.1
3.2
3.2
1.6
5,279.1
272.0
151.5
(6.5)
174.5
51.9
12.1
(10.6)
25.1
14.1
2.58
0.02
0.04
0.03
(0.9)
(69.4)
(58.3)
(53.1)
40.54
0.37
0.62
0.51
15.7
(10.2)
0.9
1.5
1.3
(2.0)
11,715.4
828.3
337.3
(10.7)
(152.8)
254.5
15.4
(249.5)
(72.3)
(62.2)
(57.6)
(9.5)
(2.1)
(1.4)
(8.1)
1.8
2.65
(0.01)
(0.00)
0.03
24.83
(0.10)
(0.00)
0.25
9.4
1.7
(112.4)
(100.4)
(65.4)
(18.4)
(109.9)
(100.4)
(72.2)
(19.8)
(0.4)
(0.0)
1.0
(3.7)
7,244.0
556.8
215.1
(18.3)
(210.0)
171.0
6.4
(261.9)
(4.1)
(2.0)
(7.8)
1.9
(6.9)
-
2.60
0.06
0.08
0.06
59.78
1.47
1.77
1.28
23.0
(0.7)
214.4
91.4
65.5
1.1
220.3
95.0
68.7
1.9
2.5
3.0
2.1
17,337.2
1,192.3
464.2
86.0
358.2
24.1
1.7
1.4
0.9
0.8
(4.3)
(8.6)
45.1
-
Figure 31:
Q2-2012
62
The profit contribution from the finance division exceeded that of the automotive division for seven successive
quarters, only in the final quarter of the fiscal year did automotive earnings move ahead. In more typical times
automotive earnings are 10-20 times higher than finance. Over the full year the finance division contributed
306.4bn to group operating profit compared with 21.6bn automotive earnings. The automotive division's
operating margin was just 0.12%.
On a regional basis there was an operating loss in Japan of (207)bn (year-ago loss: (362.4)bn). In NAFTA profit
was 45% lower at 186.4bn; in Asia (excluding Japan) the profit was 18% lower at 256.7bn, in Europe there was a
35% rise to 17.7bn and in the rest of the world profit was 32% lower at 108.8bn.
Outlook
Coming from such a low base it is not surprising that Toyota is forecasting one of the strongest rebounds among
the Japanese OEMs. The company' anticipates net profit in the year to March 2013 will more than double to
760bn.
Revenue is expected to grow by 18.4% as vehicle sales rise a similar amount to 8.7 million units. The operating
margin is forecast at a relatively modest 4.5%, leading to a 2.8-times increase to 1,000bn. As indicated, this
impressive sounding increase does need to be put in context with a reminder that Toyota was earning over
2,200bn in operating profit five years ago. However, it should also be remembered that five years ago the
yen/US$ rate was around 122 compared with an average rate of around 83 in 2011.
Corporate news
In June 2012, BMW and Toyota two signed a Memorandum of Understanding aimed at long-term strategic
collaboration in four fields: joint development of a fuel cell system, joint development of architecture and
components for a future sports vehicle, collaboration on powertrain electrification and joint research and
development on lightweight technologies.
This followed agreements between the two companies in November 2011 for BMW to supply Toyota with
diesel engines in Europe from 2014; and in March 2012 for collaborative research in the field of next-generation
lithium-ion battery cells.
The MoU is consistent with the original agreement in 2011 which included the commitment to identify and
discuss other possible collaborative projects.
In July Toyota and PSA announced an agreement for PSA to supply Toyota with LCVs for sale in Europe
under the Toyota brand. Initially, starting in Q2-2013, PSA Citron will supply medium vans derived from the
Expert/Jumpy. A second phase will see the two firms collaborating on next generation vehicles which are to be
produced by PSA. The collaboration is expected to last beyond 2020. SALES & model plans
Figure 32:
Toyota model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
Daihatsu
Altis (Camry based)
Upper Medium
2011
2016
Daihatsu
Atrai Wagon
Be Go (near-identical to Toyota Rush) / Terios /
Terios Kid
Boon / Sirion (near-identical to Toyota Passo)
Boon Luminas (near-identical to Toyota Passo
Sette)
Coo / Materia (Toyota bB)
Kei
2005
2012
Kei / SUV
2006
2015
Small
2010
2014
Compact MPV
2010
2011
Small
2006
2013
Coupe/Convertible
2002
2013
City
2007
2011
Daihatsu
Copen
Cuore (European markets version of Japan's
Mira)
Esse
Kei
2005
2012
Daihatsu
Luxio
Compact MPV
2009
2015
Daihatsu
Mira
Kei
2006
2011?
Daihatsu
Mira Cocoa
Kei
2009
2014
Daihatsu
Move & Move Custom
Kei
2006
2010
Daihatsu
Move Conte
Kei
2008
2013
Daihatsu
Daihatsu
Daihatsu
Daihatsu
Daihatsu
Daihatsu
Q2-2012
63
Daihatsu
Tanto Exe & Tanto Exe Custom
Kei
2009
2016
Daihatsu
SUV
1997
2010
Compact MPV
2004
2013
Lexus
Terios (1st generation)

Xenia / D-01 / Sen Ya (Chinese build ended in
2010)
CT 200h
Lower Medium
2010
2017
Lexus
ES
Upper Medium
2006
2012
Lexus
ES replacement & ES Hybrid
Upper Medium
2012
2017
Lexus
GS & GS Hybrid
Executive
2005
2012
Lexus
GX
SUV
2009
2016
Lexus
HS 250h
Upper Medium
2009
2015
Lexus
IS (sedan)
Upper Medium
2005
2012
Lexus
IS-C
Coupe/Convertible
2009
2013
Lexus
LFA
Coupe/Convertible
2010
2012
Lexus
LS & LS Hybrid
Executive
2006
2012
Lexus
LX
SUV
2007
2014
Lexus
RX (RX 350 only)
Crossover
2009
2015
Lexus
RX Hybrid (RX 450h)
Crossover
2009
2015
Lexus
SC
Coupe/Convertible
2001
2010
Scion
FR-S (FT-86)
Coupe/Convertible
2013
2020
Scion
iQ
City
2010
2016
Scion
FR-S
Sports
2012
2019
Scion
Coupe/Convertible
2010
2016
Small
2007
2013
Small
2007
2012
Upper Medium
2007
2013
Toyota
tC Sports Coupe
xB (virtually identical to Toyota Corolla Rumion
& Rukus)
xD (virtually identical to Toyota ist / Urban
Cruiser)
Allion (also Premio: rebadged and sold by
different dealer networks in Japan)
Alphard
MPV
2008
2014
Toyota
Aurion
Upper Medium
2006
2012
Toyota
Auris/Corolla/Corolla Altis/Ka Luo La
Lower Medium
2006
2012
Toyota
Auris HSD (Hybrid)
Lower Medium
2010
2012
Toyota
Avalon
Upper Medium
2004
2012
Toyota
Avanza (Daihatsu Xenia)
Compact MPV
2004
2012
Toyota
Avensis
Upper Medium
2008
2012
Toyota
City
2005
2012
Small
2005
2013
Toyota
Aygo
bB (virtually identical to Daihatsu Coo /
Materia)
Blade
Lower Medium
2006
2012
Toyota
Camry
Upper Medium
2011
2016
Toyota
Camry Hybrid
Upper Medium
2011
2016
Toyota
Century
Executive
1997
2011
Toyota
Corolla (see Toyota Auris)

Corolla sedan and Fielder wagon (eighth
generation)
Corolla Rumion / Rukus (identical to Scion xB)
Lower Medium
2004
2011
Small
2007
2012
Upper Medium
1995
2011?
Executive
2008
2013
Toyota
Crown & Crown Comfort

(13th gen) Crown: Crown Royal / Crown
Athlete / Crown Hybrid
Crown Majesta (Japan) / Crown (China)
Executive
2005
2014
Toyota
Estima / Previa / Tarago
MPV
2005
2011
Toyota
Estima Hybrid
MPV
2005
2011
Toyota
Etios
Small
2010
2018
Toyota
FJ Cruiser
SUV
2006
2013
Toyota
Fortuner / Hilux SW4
SUV
2004
2013
Toyota
86 (GT 86)
Coupe/Convertible
2012
2019
Daihatsu
Scion
Scion
Toyota
Toyota
Toyota
Toyota
Toyota
Toyota
Q2-2012
64
Toyota
Harrier
Crossover
2003
2010
Toyota
Crossover
2003
2010
MPV
2005
2013
Toyota
Harrier Hybrid
Hiace / Hiace Grand Cabin / Ventury /
Quantum / Sesfikile
Highlander / Kluger
Crossover
2007
2012
Toyota
Highlander Hybrid / Kruger Hybrid
Crossover
2007
2012
Toyota
Hilux
Pick-up
2004
2013
Toyota
Hilux Surf / 4-Runner
SUV
2009
2016
Toyota
Hilux Vigo
SUV
2004
2012
Toyota
Hydrogen fuel cell vehicle
TBA
2014 / 2015
TBA
Toyota
Innova / Kijang Innova
MPV
2004
2013
Toyota
iQ
City
2008
2016
Toyota
electric iQ
City
2012
2016
Toyota
Isis
Compact MPV
2011
Toyota
ist / Urban Cruiser( Scion xD)
Small
Toyota
Land Cruiser / Land Cruiser 200
SUV
2004
07 (ist) / 09
(Urb Cruiser)
2007
Toyota
Land Cruiser 70 Series
Pick-up
2007
2015
Toyota
Land Cruiser Prado/ LC5
SUV
2009
2016
Toyota
Mark X (see also Toyota Reiz)
Upper Medium
2009
2015
Toyota
Mark X ZiO / Venza
Crossover
2008
2016
Toyota
Lower Medium
2008
2013
2011/12
n/a
Toyota
Matrix / Corolla Matrix)

Mini-vehicles (2 more Daihatsu models to
follow Pixis)
Noah (Voxy)
MPV
2007
2013
Toyota
Passo (Daihatsu Boon)
Small
2010
2014
Toyota
Passo Sette (Daihatsu Boon Luminas)
Compact MPV
2009
2011
Toyota
Pixis (Daihatsu Move Conte)
Kei
2011
2013
Toyota
Porte
City
2004
2011
Toyota
Prado Sumo / Mer
SUV
2000
2010
Toyota
Premio (Allion)
Upper Medium
2007
2013
Toyota
Prius EX 2nd gen Prius, renamed in Japan
Lower Medium
2003
2012
Toyota
Prius (third gen) & Prius Plug-in Hybrid
Lower Medium
2009
2015
Toyota
Prius- C concept
Compact
2012
2018
Toyota
Priius V / Alpha / +
Crossover
2011
2017
Toyota
Probox (Succeed)
Compact MPV
2002
2010
Toyota
Ractis
Compact MPV
2010
2015
Toyota
Raum
Compact MPV
2003
2011
Toyota
SUV
2005
2012
Upper Medium
2010
2015
Toyota
RAV4
Reiz (replacement model for China, already
built in Japan as Toyota Mark X)
Rush (Daihatsu Be Go)
SUV
2006
2015
Toyota
Sai
Lower Medium
2009
2015
Toyota
Sequoia
SUV
2007
2014
Toyota
Sienna
MPV
2010
2017
Toyota
Sienta
Compact MPV
2003
2010
Toyota
Sienta (re-introduced)
Compact MPV
2011
2017
Toyota
Succeed (Probox)
Compact MPV
2002
2010
Toyota
Tacoma
Pick-up
2004
2013
Toyota
Tundra
Pick-up
2006
2013
Toyota
Vanguard
SUV
2007
2015
Toyota
Vellfire
MPV
2008
2014
Toyota
Verso
Compact MPV
2009
2014
Toyota
Vios / Belta / Yaris Belta / Yaris sedan
Small
2010
2015
Toyota
Toyota
Toyota
Kei
2013
2015
Q2-2012
65
Toyota
Vitz / Yaris
Small
2010
2015
Toyota
Voxy (also Noah)
MPV
2007
2013
Toyota
Vitz/Yaris-based hybrid
Small
2012
2016
Toyota
Wish
Compact MPV
2009
2016
New registrations of Toyota-brand vehicles in Japan rose by 85% to 0.893 million units in H1-2012,
substantially outperforming the 53.6% rise in the overall market.
For 2012/13 the company is aiming to sell 8.7 million units, a rise of 18%. Sales in Japan are targeted at 2.2
million units, a 6.2% rise and overseas sales are planned to rise by 23% to 6.5 million units.
In July the company launched the completely redesigned Porte compact minivan, and its new counterpart, the
Spade. The pair will be sold across Japan, the Porte through Toyota and Toyopet dealers, and the Spade
through Toyota Corolla and Netz dealers. The monthly sales target for each model in Japan is 4,000 units.
At the end of April Toyota's cumulative sales of its hybrid vehicles exceeded 4 million units since the first
models (Coaster Hybrid, followed by the Prius) were launched in 1997. The company currently sells 18 hybrid,
passenger vehicle models in approximately 80 countries and regions around the world. This year, hybrid
vehicles have accounted for 15% of its global vehicle sales. With the Yaris Hybrid scheduled for launch in
Europe soon and the Lexus ES 300h in the US, sales should increase at a faster rate.
PRODUCTION
During H1-2012 Toyota's global production rose by 55.5% to 5.248 million units. Domestic production was
74.3% higher and overseas output was up by 42.8%. The year-ago figures were distorted by the Japanese
earthquake.
Toyota Motor Manufacturing Canada will increase production capacity for the Lexus RX 350 SUV and start
production of the Lexus RX 450h gasoline-electric hybrid SUV in early 2014. Capacity for the RX 350,
produced at TMMC's Cambridge Plant, will rise by 15,000upa to 89,000upa. RX 450h production is to begin
with an initial capacity of 15,000upa, bringing total RX annual production capacity at Cambridge to 104,000upa.
Combined with the Toyota RAV4 capacity increase at TMMC's Woodstock plant of 50,000upa planned for
early 2013, the RX production capacity increase will raise TMMC's total production capacity from 420,000upa
currently to 500,000upa by early 2014. Investment associated with the RX capacity increase will be more than
US$100m, including investments toward related suppliers, and will create approximately 400 new jobs.
In China Toyota Motor (Changshu) Auto Parts Co. was established on July 23, in the Changshu Southeast
Economic Development Zone, Jiangsu Province, China. The transmission-production company is scheduled to
start production in September 2014 with a planned, initial capacity of 240,000upa. About US$285m is being
invested, with the new company expected to create 850 jobs. TMCAP will primarily produce continuously
variable transmissions in preparation for the expected demand increase there for small-engine vehicles.
In May Sichuan FAW Toyota Motor, the vehicle manufacturing joint-venture established by Toyota and China
FAW Group, started production of the Corolla sedan at the new West Plant in Changchun. Initial planned
Corolla production at West Plant is approximately 100,000upa.
Q2-2012
66
VW Group
FINANCIAL NEWS
Jan-Jun 2012
By the standards of its mass-market European competitors VW reported a very strong set of first-half results,
though its rate of earnings slowed in the second quarter.
First-half group revenue was 23% higher as consolidated sales rose by 8.9% and the year-on-year comparison was
flattered by the inclusion of Porsche Holding Salzburg and MAN SE (respectively consolidated on March 1, 2011
and November 9, 2011). Revenue was higher in all main divisions with the exception of an 8.5% decline at Scania.
Group operating profit increased by 6.7% to 6.49bn and the margin fell 1.0pts to 6.8%. Audi remained the
dominant division, earning 13.2% more at 2.876bn compared with the VW passenger car division which reported a
3.8% increase to 2.21bn. The financial services division was the next largest contributor with a 20% rise to 665m,
followed by Scania with a 36% drop to 477m. MAN earned 354m and Skoda's earnings grew by 8.9% to 449m.
The CV division reported a 3% rise in profit to 242m. Bentley recovered to a 57m profit from a year-ago (17)m
loss and Seat reduced its loss to (42)m from (48)m.
Figure 33:
VW results
VW
Unit
Group data
H1-12
Q2-12
mils
mils
mils
mils
000's
Data
95,378
6,492
10,057
8,827
518.7
% ch.
Revenue
Operating profit
Pre-tax profit
Net profit
Employees
Unit sales
Europe / Other
Asia-Pacific
Nafta
S America/S Africa
000's
000's
000's
000's
000's
4,451.7
2,062.5
1,477.3
389.8
522.1
8.9
21,425
1,458
2,259
1,983
Per employee
Revenue
Operating profit
Pre-tax profit
Net profit
Sales
units
183,879
12,516
19,389
17,018
8.6
Return on revenue
Operating profit
Pre-tax profit
Net profit
%
%
%
22.6
6.7
22.2
35.9
19.2
2.6
17.6
22.1
3.8
Yr to Dec 11
Data
48,052
3,283
5,757
5,641
518.7
% ch.
2,294.3
1,067.7
751.2
210.7
264.7
8.3
19.2
3.4
(4.2)
17.9
19.2
1.5
18.4
20.2
2.9
H1-11
Data
159,337
11,271
18,926
15,799
502.0
% ch.
8,160.2
3,990.3
2,569.8
666.8
933.3
14.3
25.6
57.8
110.4
118.6
25.7
12.0
20.0
21.4
5.1
Q2-11
Data
77,767
6,086
8,233
6,496
435.3
% ch.
4,088.2
2,009.5
1,256.5
319.1
503.0
13.1
19,023
1,489
2,014
1,589
11.2
25.8
114.2
213.6
256.1
15.4
7.1
19.3
21.1
19.8
Q1-11
Data
40,297
3,174
6,010
4,784
435.3
% ch.
2,119.0
1,051.8
634.7
175.2
257.3
13.4
21.5
59.3
212.7
254.1
15.4
5.4
16.1
23.9
40.3
Per unit
Revenue
Operating profit
Pre-tax profit
Net profit
12.6
(2.0)
12.2
24.8
2.9
(10.5)
2.5
14.0
(8.6)
6.8
10.5
9.3
(1.0)
23.7
Revenue by sector
Automotive
Financial Services
mils
mils
85,760
9,618

Automotive
Financial Services
Other
mils
mils
mils
5,761
731
0
(0.0)
0.9
14.1
5.0
21.8
-
20,944
1,431
2,509
2,459
92,639
6,329
11,099
10,875
4.4
10.1
(4.5)
(11.5)
8.9
0.1
(13.2)
(1.0)
(9.1)
6.8
12.0
11.7
(13.3)
43,129
4,923
20.5
2,895
388
(19.7)
(1.1)
9.1
0.6
31.1
-
19,526
1,381
2,319
1,936
9.9
38.1
84.1
91.3
317,432
22,454
37,704
31,475
16.3
(0.1)
7.1
11.9
9.9
1.4
142,093
17,244
26.0
9,973
1,298
0
61.1
25.6
67.4
74.0
(9.1)
4.8
4.2
22.6
36.3
-
178,652
13,981
18,913
14,923
9.4
89.3
177.2
214.8
9.0
85.6
171.7
208.5
(2.0)
7.8
10.6
8.4
3.2
69,335
8,432
26.0
5,486
600
0
121.7
6.3
5.4
24.0
63.5
19,017
1,498
2,836
2,258
92,573
7,292
13,807
10,990
4.9
7.2
40.4
175.8
212.3
5.3
38.0
-
7.9
14.9
11.9
206.8
(1.8)
31.1
157.3
191.4
35,783
4,514
21.1
2,878
296
60.6
25.1
47.3
-
Q2-2012
67
The net increase in group operating profit of 406m reflected:
0.9m - product cost savings;

0.8m - volume, mix and price;
0.5m - exchange rates;
(1.4)m - fixed costs and start-up costs;
(0.4)m - other.
The group's net profit was boosted by the contributions by its Chinese joint ventures.
Outlook
The company forecasts that 2012 revenue will exceed the prior-year figure. This will also be a result of the
consolidation of MAN SE as of November 9, 2011.
Its goal for operating profit is to match the 2011 level. According to the company: "Positive effects from our
attractive model range and strong market position will be offset in part by increasingly stiff competition in a
challenging market environment, especially in certain European countries. Disciplined cost and investment
management and the continuous optimization of our processes remain core components of our Strategy 2018."
Corporate news
VW and Porsche Automobil Holding SE (Porsche SE) are set to create an integrated automotive group
through the contribution in full of Porsches automotive business to the Volkswagen Group, with effect from
August 1, 2012. Porsche SE will receive around 4.46bn and one VW ordinary share as consideration for
contributing the 50.1% of Porsche AG not yet owned by Volkswagen.
In June VW increased its share of the voting rights in MAN SE from 73.76% to 75.03%
Also in June the company announced it "is giving extra momentum to its Strategy 2018 with an extensive
structural and management realignment". Under the reorganisation a new Board of Management function for
China will be set up at Group level. The group delivered some 2.3 million vehicles in the China region in 2011
and reported a pro rata operating profit there of 2.6bn.
The CV business has become the second strong pillar for the group in recent years and is now to be
represented separately at Board level. The Commercial Vehicles division will be led by Leif stling, currently
Scania's CEO.
At the end of May VW and IG Metall successfully concluded pay negotiations. There was to be a 4.3% increase
in base pay effective June 1, 2012. In addition it was agreed that VW would increase the number of
apprenticeships in Germany by 175 per year over three years. It was also decided to transfer up to 3,000
temporary personnel to permanent employment by mid-2013.
SALES & MODEL PLANS

Figure 34:
VW model plans
Brand
Model
Segment
Lifecycle
Start
Lifecycle
End
2016
Audi
A1 (3-dr 2010, 5-dr 2011)
City
2010
Audi
A2
Small
2015
Audi
A3, S3 Sportback
Lower Medium
2003
2012
Audi
A4 allroad
Crossover
2009
2015
Audi
A4, A4L, S4
Upper Medium
2007
2014
Audi
A5, S5
Coupe/Convertible
2007
2015
Audi
A6, A6L, S6
Upper Medium
2004
2011
Audi
A6, A6L, S6
Upper Medium
2011
2018
Audi
A7, S7
Executive
2010
2017
Audi
A8, S8
Executive
2010
2018
Audi
A9 (A8-based coupe)
Coupe
2014
Audi
Q3
Crossover
2011
2018
Q2-2012
68
Audi
Q5
Crossover
2008
2014
Audi
Q5 Hybrid
Crossover
2011
2014
Audi
Q7
Crossover
2005
2013
Audi
R8
Coupe/Convertible
2007
2014
Audi
R8 e-tron
Coupe/Convertible
2011
2012
Audi
TT
Coupe/Convertible
2006
2014
Bentley
Azure & Brooklands
Coupe/Convertible
2006
2012
Bentley
Continental Flying Spur
Executive
2005
2014
Bentley
Continental GT
Executive
2003
2011
Bentley
Continental GT & GTC
Executive
2011
2019
Bentley
Continental GTC
Executive
2006
2011
Bentley
Mulsanne
Executive
2009
2017
Bentley
SUV
SUV
2015
2023
Bugatti
16C Galibier
Executive
2013
2021
Bugatti
EB 16.4 Veyron
Executive
2005
2013
Lamborghini
Aventador (replaces Murcielago)
Coupe/Convertible
2011
2019
Lamborghini
Cabrera (replces Gallardo)
Coupe/Convertible
2013
2021
Lamborghini
Gallardo
Coupe/Convertible
2003
2011
Lamborghini
Murcilago
Coupe/Convertible
2001
2010
Seat
Alhambra
MPV
2010
2017
Seat
Altea, Altea XL, Freetrack
Compact MPV
2004
2013
Seat
Exeo
Upper Medium
2008
2013
Seat
Ibiza
Small
2008
2014
Seat
Len
Lower Medium
2005
2012
Seat
Mii
City
2011
2018
Seat
Toledo
Lower Medium
2004
2009
Seat
New 4-dr sedan - Toledo?
Lower Medium
2012
2018
Seat
Tribu (twinned with Audi Q3)
Crossover
2013
2020
koda
Citigo
City
2011
2018
koda
Citigo MPV
City
2014
koda
Fabia Jingrui (built by Shanghai Volkswagen)
Small
2007
2015
koda
Small, Crossover
2007
2014
Upper Medium
2009
2015
Upper Medium
2007
2012
koda
Fabia, Fabia Scout

Haorui (Superb sedan built by Shanghai
Volkswagen)
Octavia Migrui (built by Shanghai
Volkswagen)
Octavia Tour
1996
2012
koda
Octavia/Laura, Octavia Scout
2004
2012
koda
Rapid Saloon
Upper Medium
Upper Medium,
Crossover
Lower medium
2011
2018
koda
Lower medium
Compact MPV,
Crossover
Upper Medium
2012
2018
2006
2014/16
koda
Rapid Spaceback
Roomster (next generation offered as 2
models)
Superb
2008
2015
koda
Superb SUV (above Yeti)
SUV
2016
koda
Yeti (Next generation offered as 2 models)
Crossover
2009
2015/16
Volkswagen
Amarok
Pick-up
2009
2018
Volkswagen
Beetle
Lower Medium
2011
2019
Volkswagen
Caddy People, Caddy Life
Compact MPV
2004
2014
Volkswagen
California, Caravelle (next gen Microbus)
MPV
2004
2014
Volkswagen
CC/Passat CC
Upper Medium
2008
2014
Volkswagen
CrossFox
Crossover
2004
2012
Volkswagen
CrossPolo
Crossover
2010
Volkswagen
Eos
Coupe/Convertible
2006
2016
Term.
2014
koda
koda
koda
Q2-2012
69
Volkswagen
Fox
City
2009
2017
Volkswagen
Gol & Voyage
Small
2008
2015
Volkswagen
Golf
2008
2012
Volkswagen
Golf Plus & CrossGolf
2005
2012
Volkswagen
Jetta/Vento
Lower Medium
Compact MPV,
Crossover
Lower Medium
2010
2016
Volkswagen
Lavida
Lower Medium
2008
2015
Volkswagen
Magotan (Mk VI Passat)
Upper Medium
2007
2012
Volkswagen
New Bora
Lower Medium
2008
2015
Volkswagen
Passat (Europe)
Upper Medium
2005
2013
Volkswagen
Passat (North America)
Upper Medium
2011
2018
Volkswagen
Phaeton
Executive
2002
2015
Volkswagen
Polo 'Raum'
Compact MPV
2013
Volkswagen
Polo (Mk V)
Small
2009
2015
Volkswagen
Polo wagon
Small
2013
Volkswagen
Routan
MPV
2008
Volkswagen
Santana
Upper Medium
1991
Volkswagen
Santana Vista
Upper Medium
2008
2014
Term.
2012
2015
Volkswagen
Saveiro, Saveiro Cross
Pick-up
2009
2017
Volkswagen
Scirocco
Coupe
2008
2014
Volkswagen
Sharan
MPV
2010
2017
Volkswagen
Suran/SpaceFox/SportVan
Compact MPV
2006
2012
Volkswagen
SUV (N. America Passat-based)
SUV
2015
Volkswagen
Tiguan
SUV
2007
2013
Volkswagen
Tiguan long wheelbase
SUV
2009
2014
Volkswagen
Touareg
SUV
2010
2016
Volkswagen
Touran/Golf Touran, CrossTouran
Compact MPV
2003
2013
Volkswagen
Up!
City
2011
2019
Volkswagen
XL1 (Ultra low emission car)
City
2013
2022
In H1-2012 VW Group sold 4.45 million vehicles, an 8.9% increase, outperforming the 8.5% rise that the
company estimate for the overall global market.
Following a 12.3% rise in first-half sales Audi has now set a new 2012 sales target of 1.4 million units, 7.5% up
on the 2011 sales total. Peter Schwarzenbauer, Member of the Board of Management for Marketing and Sales
at Audi, commented: "The current order intake proves that the first half of the year will exceed our
expectations in all regions. We have therefore now set ourselves a new target of 1.4 million deliveries for the
year as a whole. Our growth in Europe continues to clearly buck the market trend, with especially stable
development in Germany and the United Kingdom. We plan to set new sales records in 2012 in both markets."
In June Skoda showed the new Skoda Rapid which makes its public debut at the Paris show in
September/October. The Rapid slots between the Fabia and the Octavia.
In April Shanghai VW presented the New Lavida at Auto China 2012 in Beijing. Launched in June 2008,
cumulative sales of the VW Lavida exceeded 700,000 units in January 2012. The New Lavida is similar to the
Passat. The sedan version will launch in China in mid-August followed by a hatchback version (not available on
the outgoing model) in 2013.
The new Audi A3 goes on sale this summer. It is the first model to be based on VW's MQB platform, which is
expected to deliver substantial cost savings in manufacturing while also improving product quality. The A3
hatch will (for the first time) be followed by a sedan version in 2013. The next generation Golf will be the next
model based on the MQB platform.
Q2-2012
70
Brazils state-controlled Economic and Social Development Bank, BNDES, approved on 9 July the provision
up to Real 342m (US$168m) to help finance Volkswagen do Brasils development of a new subcompact model
and facelifts of other locally-produced VW cars. The new small car is reported by the Deutsche Presse-Agentur
to be planned to achieve a price below that of the Brazil-specific Gol, which in size bridges the gap between the
Polo and Golf hatchbacks. The public sector finance is intended to build domestic supply chain capabilities
capable of competing with VWs suppliers elsewhere - the supplier sector is an area where the Brazilian
automotive industry is weak.
PRODUCTION
Production rose by 11.9% in H1-2012 to 4.68m units, including the non-consolidated Chinese joint ventures. In
Q2-2012 alone, production in Germany fell by 1.7% to 581,000 units.
Towards the end of July Shanghai Volkswagen's new plant in Yizheng, eastern China was inaugurated. The
300,000upa has started assembly of the Polo, the second Chinese plant to do so. It is also planned to produce
Skoda models at the facility at a later stage. The objective of Volkswagen Group China is to increase annual
production capacity to about four million units by 2018.
An unresolved VAT issue with the Maharashtra state government has resulted in VW putting on hold its
proposed Rs20bn (US$367m) investment plan in India. The government had earlier refunded VAT paid on all
vehicles sold by manufacturers which had plants in Maharashtra. However, this was modified in 2011, with the
government saying that it would refund VAT only on vehicles sold within the state. In January 2012, VW
announced plans to invest Rs20bn in India by 2013 to raise capacity, launch new models and bolster its
research activities. VW's plants are located in Chakan and Aurangabad, in Maharashtra.
Q2-2012

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Passenger Car OEM Quarterly Data Book

Passenger Car OEM Quarterly Data Book

An AutomotiveWorld.com report published by:

ABOUT THE EDITOR

+44 (0)29 20 709 302

List of contentsList of contents .......................................................................................................................................... iii

Passenger Car OEM Quarterly Data Book

Global car demand by month ............................................................................................................................... 6

Passenger Car OEM Quarterly Data Book

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Global car demand by month

New reg's (000s)

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

SALES & MODEL PLANS

BMW model plans

1 Series Gran Turismo (GT)

4 Series (3 Series coupe)

4 Series (3 Series convertible)

4 Series (3 Series coupe 4-dr)

5 Series Gran Turismo (GT)

6 Series Gran Coupe (4-dr)

Family Activity Sports Tourer

Compact Activity Tourer

JOY (Compact Sports Commuter)

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Coup & Roadster

Ghost long wheelbase

Phantom Drophead Convertible

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Ebit/Op. profit by div'n

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

The decline mainly reflected:

Daimler model plans

electric passenger car

CLC (poss. 'BLS')

CLC (poss. 'BLS') estate

C-Class sedan / estate

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

SLC AMG roadster

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Fiat SpA results

Trading profit by division

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

Revenue: > 77bn;

Passenger Car OEM Quarterly Data Book

Section 1: Company updates

SALES & MODEL PLANS

Fiat SpA model plans