Chrysler Group LLC, owned by Fiat SpA, reported on Wednesday that sales in the United States rose by 19% in September from a year earlier, its third consecutive month of double-digit growth in the region. An equal jump in sales registered by Nissan Motor Co. showed the industry kept on pushing forward amid high customer demand despite the summer season fading. A probe into Fiats tax practices in Luxembourg, however, pushed the companys stock more than 2.5% lower.
Reid Bigland, head of U.S. sales, said in a statement: “Chrysler Group sales continue to demonstrate strength as we recorded our seventh month of double-digit growth this year.”
Chrysler, which in mid-October is expected to merge with its owner to be listed as Fiat Chrysler Automobiles on the New York Stock Exchange, said that it sold 169 890 vehicles last month compared to 143 017 a year earlier, touting this was its best September in nine years. A Reuters survey of analysts had shown projections of a 10%-jump to about 1.25 million vehicles sold for the month industrywide.
Chrysler said truck sales accounted for 77% of total sales, having posted a 30%-jump, while car sales declined by 7.1%. The Ram brand marked its 53rd consecutive month of year-over-year sales gains and posted its best September on record with a 30% jump.
The Jeep brand registered an even better performance, with sales in the unit surging 47%, its 12th straight month of annual gains and best September ever as well. It was aided by the Cherokee, the brands top-seller, which sold 14 639 vehicles.
Dodge, however, fell 9%, which was offset by a 14%-jump in the companys namesake brand. The Fiat brand rose 6%.
At the same time, Nissan reported that its sales during the same period rose by 18.5% to 102 955 vehicles in the US, also beating analysts projections. The companys upbeat performance was largely based on high demand for its midsize Rogue sport utility vehicle and its Sentra sedan.
Nissan said that sales at its namesake brand rose by 22% to 95 118 vehicles, with car purchases marking an annualized 13% jump, while trucks rose by 27%. However, the companys luxury brand, Infiniti, registered an overall sales contraction of 13% to 7 837 units.
However, the upbeat results of Fiats Chrysler unit couldnt help lift the companys shares after the European Commission sounded the alarm on problems with Luxembourg’s treatment of Fiat Finance and Trade Ltd.
In a decision underscoring their initial assessments from the first stage of its state aid probe, EU regulators argued that Fiats finance subsidiary received favorable treatment in calculating its taxable income. This violated the European Unions rules prohibiting countries from providing anti-competitive advantages to companies.
The European Commission said the favorable tax treatment reduced the charges the entity should normally bear, adding that it currently has no indication that the measure in question could be considered compatible with the internal market. Fiat was warned that any illegal subsidies received may need to be clawed back, stretching for up to 10 years.
Fiat SpA fell by 2.42% to €7.46 by 13:47 GMT in Milan, marking a one-year change of +21.22%. The car maker is valued at €9.56 billion. According to the Financial Times, the 25 analysts offering 12 month price targets for Fiat SpA have a median target of €7.10, with a high estimate of €10.50 and a low estimate of €4.00. The median estimate represents a -7.07% decrease from the last price of €7.64.
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