AutoBeta(AutoBeta.net)02/13 Report--

Fiat Chrysler Group (FCA) reported adjusted profit before interest and tax of 7.3 billion euros (55.8 billion yuan) in 2018, up 3% from a year earlier, but profits of its luxury brand Maserati fell sharply, related to weak sales in China.

Net income of the Maserati brand fell to 2.663 billion euros in 2018, down 34 percent from 4.058 billion euros in 2017, while adjusted EBIT was 151 million euros (1.155 billion yuan), down 73 percent from a year earlier, according to the results.

Officials said Maserati's lower shipments were mainly related to falling sales in China and other major markets, while the decline in adjusted earnings before interest and tax was mainly due to reduced trading volume and adverse foreign exchange.

Statistics show that Maserati shipped 34900 vehicles worldwide in 2018, down 32% from 51500 in 2017. According to past data, the Chinese market accounts for nearly 1x3 sales of the Maserati brand, where Maserati sold only 10696 new cars in 2018, down 32 per cent from a year earlier. Among them, the sales of the president of the main model and the Ghibli both declined by more than 40% for the whole year, and the Levante did not grow, with full-year sales of 6939 vehicles, down 25% from the same period last year. Maserati's brand power in China is declining, and many models need to be greatly reduced in price promotion, which is also an important reason for the decline in profits.

FCA earlier believed that Maserati's poor performance in the Chinese market was the main reason for the sharp decline in sales and revenue. Mr McMingkai, FCA's new CEO, said in his second-quarter results that Maserati's shipments fell in several regions in the second quarter, but 70 per cent of the reasons were concentrated in the Chinese market.

The retrogression of a number of foreign luxury car brands in China has confirmed some problems to some extent. Maserati's sales decline in China, more often in the brand reputation and quality reputation and other issues.

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