China and the US take the lead in Q1 sales worldwide, the UK takes the 4th biggest market title.

• Overall, 20.44 million units were sold across all segments in Q1 2016, largely driven by growth in the Chinese and European markets
• The SUV boom continued, with seven of the eight regions analysed posting double digit growth
• Ford, Honda and Mercedes posted the strongest growth, largely driven by their SUVs
• Volkswagen posted a 1% decline on the same period in 2015

In Q1 2016, 558,700 more units (LCVs and passenger cars) were sold compared with the same period in 2015 according to a report released today by JATO Dynamics. Global car sales totalled 20.44 million units, a 2.8% increase on the same period in 2015. 

Significantly, the market’s biggest brands posted declines, with Volkswagen declining by 1%, Hyundai by 3% and Chevrolet by 9%. Ford, Honda and Mercedes posted the biggest increases amongst the top 10 at 7%, 5% and 14% respectively.

In terms of models, the Toyota Corolla reported a 4.8% gain in Q1 2016 which saw it move up the ranking to become the best-selling vehicle for this period, knocking the Wuling Hongguang from the top spot.

The popularity of SUVs in China has been an ongoing source of growth, and the trend continued last quarter, with the country accounting for 36% of total sales in Q1 2016. Sales of SUVs in Europe (including Russia and Turkey) gave the overall market a boost with 20% growth and 1.11 million units sold.

SUVs continued to dominate across much of the rest of the world in Q1 2016, with the category increasing sales by 23% compared with the same period last year and five vehicles from the category entering the top 10 best-selling car ranking

These were the Nissan X-Trail, Honda HR-V, Toyota RAV4, Honda CR-V and Ford Escape. All regions included in the report posted positive growth for SUVs, with all except for Japan-Korea posting double digit growth. As a result of the growth, the market share of the SUV segment jumped to 27.4% compared to 23.0% in the same period of 2015. The growth in the SUV segment was offset by slower rises amongst the traditional segment leaders; Renault-Nissan kept the lead in the SUV category but its growth was half the average for the segment. The SUV category has room for improvement in India and South America as the segment only accounted for 15% and 14% of the country’s respective total volumes.

SUV growth also drove premium car volumes, with 2.15 million units sold, 833,300 of which were SUVs. Overall the premium category saw a dramatic 9% gain on the same period last year. The growth saw the category go from a 10.8% market share in Q1 2015 to 11.4% in Q1 2016. Europe was the strongest market for premiums, accounting for 43% of the global total. North America was second, losing ground at a 24% share, and closely followed by China-Taiwan with a 23% share of global sales.

Felipe Munoz, Global Automotive Analyst at JATO, concluded: “Q1 2016 saw dramatic changes as the SUV category increased its market dominance. The whole world wants a SUV, and this shift is evident in the brand ranking, as those that focused on this segment, were the brands that posted the largest gains.”

Grateful thanks to JATO Dynamics for the info and detailed figures.

Jaguar Land Rover UK’s fleet sales grew 84% in Q1 2016 compared to Q1 2015.

• Jaguar Land Rover UK’s fleet sales grew 84% in Q1 2016 compared to Q1 2015, as its key fleet-friendly models increased their share of the fleet market quicker than rivals
• Jaguar fleet sales alone grew exponentially by 194% in Q1 2016 compared to Q1 2015, as Land Rover’s increased by 53%
• One-in-three fleet cars sold in all the segments that Land Rover competes in during Q1 2016 was a Land Rover vehicle
• The Range Rover Evoque took a greater share of the UK fleet sector in Q1 2016 than premium rivals
• More growth to come as early figures suggest the new F-PACE – the best-selling Jaguar ever – will see one in six sales go to the fleet sector

Jaguar Land Rover UK’s fleet sales grew by 84% in Q1 2016 compared to Q1 2015, as XE, XF, Evoque and Discovery Sport models all posted rapid fleet sales growth - evidence of Jaguar Land Rover’s commitment to ensure 25% of its global sales will be to fleet and business customers by 2020.

With the introduction of business-friendly models, including the XE and XF with CO₂ from as low as 99g/km, Jaguar UK saw fleet sales grow by 194% from Q1 2015 to Q1 2016. 

Land Rover UK’s performance in Q1 2016 was so strong that one-in-three fleet cars sold in sectors the brand competes in was a Land Rover. The figures only include fleet sales classified as B, F or K by the SMMT*.

Jeremy Hicks, Jaguar Land Rover UK MD, said: “Our Fleet & Business 2015 results are fantastic and prove we have an effective formula in place; we have desirable and sector appropriate cars, efficient Ingenium engines and class leading total cost of ownership – together, these factors deliver a compelling proposition for Fleet Managers to add Jaguar Land Rover to their fleet lists. With this formula in mind, and with an ever expanding range of stunning Jaguar and Land Rover vehicles on the horizon, I’m confident that there’s plenty more fleet growth to come.”

All of Jaguar Land Rover’s key fleet models – the XE, XF Evqoue and Discovery Sport – grew their share of the fleet sector more than any of their rivals when comparing the whole of calendar year 2015. Both the Jaguar XE and XF increased the shares of their fleet sectors more than competitor models. Likewise, where the Range Rover Evoque and Discovery Sport grew their share of the fleet sector, rival models saw their share shrink. The Range Rover Evoque was a star performer in Q1 2016, outselling all of its premium rivals with 18.3% of fleet sales.

Fleet sales for 2016 are already on track to be the best yet, with a full-year of Ingenium-powered XE and XF sales, and the arrival of Evoque Convertible and F-PACE. Already the best-selling Jaguar ever, one-in-six F-PACE sales is predicted to go to the fleet sector. Jaguar Land Rover predicts that its fleet sales in 2016 will grow by 50% compared with 2015, with further double-digit growth through to 2020.

Jon Wackett, Jaguar Land Rover General Manager for Fleet and Business, said:

“Our Q1 2016 sales are a great example of the fleet-suitability that many of our new vehicles have. We’ve really disrupted a market that has been traditionally dominated by three or four brands by introducing extremely desirable cars that represent real-world value for money. We are strategically aiming to balance volume of sales against maintaining strong residual values which is a core buying decision for our existing and future customers.”

At the heart of Jaguar Land Rover UK’s fleet and business sales successes this year are the technologies that underpin the range. The aluminium-intensive construction, ultra-efficient Ingenium engines and low ownership costs have ensured there’s both a financial and an emotional reason to opt for a Jaguar or a Land Rover.

As well as a £3bn investment in facilities and new models in 2015, Jaguar Land Rover UK has also significantly invested in the corporate sales structure. A dedicated field-based sales team has been introduced across 50 Jaguar and Land Rover retailers supported by a further 22 people and led by five senior-level managers responsible for fleet and business sales.

Audi announces Income, sales and profits for the first quarter of 2016, and despite issues, it's doing rather well.

• First-quarter results influenced by currency effects, high advance expenditure and special reporting items
• CFO Axel Strotbek: “We achieved an operating return on sales within
  our strategic target corridor in a challenging quarter”
• Audi to maintain its high level of advance expenditure for products, technologies and manufacturing structures

The Audi Group has reported a successful first quarter of 2016 despite challenging conditions. In the first three months of this year, it generated revenue of €14,511 million. Operating profit for the period amounts to €1,202 million and includes negative special items totaling €100 million. 

The operating return on sales of 8.3 percent is within the strategic target corridor of eight to ten percent despite the special items.

From January through March, the premium manufacturer delivered 455,754 automobiles of the Audi brand to its customers, which is four percent more than in the first quarter of last year (Q1 2015: 438,171). Revenue of €14,511 million was one percent lower than in the prior-year period (Q1 2015: €14,651 million), primarily due to disadvantageous exchange-rate effects and intense competition in some markets.

Operating profit of €1,202 million (Q1 2015: €1,422 million) includes negative special items in connection with potentially defective Takata airbags. Audi is cooperating with the US National Highway Traffic Safety Administration (NHTSA) in order to clarify the extent to which additional Audi automobiles might have to be recalled in the United States. Audi recognized a provision of €100 million for that eventuality in the first quarter. Excluding special items, the Audi Group achieved operating profit of €1,302 million (Q1 2015: €1,422 million) and an operating return on sales of 9.0 percent (Q1 2015: 9.7 percent).

“Besides exchange-rate movements and special items, operating profit also reflects our high advance expenditure,” stated Axel Strotbek, Board of Management Member for Finance and IT at AUDI AG. “Nonetheless, our operating return on sales is within our strategic target corridor of eight to ten percent.” This year, Audi is setting the course for its future in many important fields: With the Q2, the brand is launching a completely new model, it is putting its plant in Mexico into operation and is launching its successful Q7 and A4 models in important foreign markets. The Audi Group plans capital expenditure of more than €3 billion this year.

The Audi Group’s profit before tax for the first quarter of 2016 amounts to €959 million (Q1 2015: €1,497 million) and its return on sales before tax is 6.6 percent (Q1 2015: 10.2 percent). The change compared with the prior-year period is primarily due to market-related valuation effects from currency-hedging transactions.

The Audi Group’s targets for the full year continue to apply. For 2016, a moderate increase in deliveries of Audi vehicles is anticipated. Depending on economic conditions and exchange-rate developments, the premium manufacturer also expects moderate revenue growth.

Audi anticipates a continuation of intense competition in some key markets. Another factor is the technological shift in the automotive industry towards alternative drive concepts and increased digitization. Nonetheless, Audi once again aims for an operating return on sales within its strategic target corridor of eight to ten percent.

“We make sure we achieve our profitability targets by means of consistent cost management. This gives us the financial scope for our path of investment and innovation,” stated Strotbek. With the coming generation of the A8, Audi is putting piloted driving on the market for the first time. And in 2018, the brand will launch its first fully electric car in a large series.

Volvo Cars, the premium car maker, has announced it is seeking to raise €500m from a bond issue.

Volvo Cars, the premium car maker, has announced it is seeking to raise €500m from a bond issue, its first foray into the global corporate bond markets in its 89 year history. The Swedish company will begin a roadshow for potential investors on Monday next week.

The proceeds from the bond issue are being raised for general corporate purposes and are aimed at increasing the company’s financial flexibility and diversifying its funding sources.

Earlier this week Volvo Cars announced a robust start to 2016 with revenues for the quarter up 24 per cent year-on-year to SEK41.7bn, generating an operating profit of SEK3.1bn and an operating profit margin of 7.5 per cent.

Håkan Samuelsson, president and chief executive of Volvo Cars, said: “Volvo’s global transformation is gathering pace. After a strong first three months of the year, both sales and profitability are expected to increase in FY2016 compared to last year.

Volvo not only has increased sales around the world, they have just announced significant Q1 profits and income.

Volvo Cars, the premium car maker, has announced a robust start to 2016 with operating profit for the first three months of the year increasing strongly to SEK 3.1bn and the operating profit margin reaching 7.5 per cent, as sales improved in Europe, Asia and the US.

The Swedish company reported that global retail sales between January and March rose 11.9 per cent to 120,591 units, compared to 107,721 in 2015, while net revenue increased to SEK41.7bn, up 24 per cent compared to 2015’s SEK33.6bn.

The revenue and profit increase was driven primarily by volume and sales mix, specifically the margin enhancing effects of the all-new XC90 SUV, sales of which hit 20,800 in the first three months of the year.

“The new XC90 proves that customers like what they see from the transformed Volvo Cars - one in five new Volvo cars sold in the first quarter was an XC90,” said Håkan Samuelsson, president and chief executive. “We also unveiled the new S90 sedan and V90 estate in the first quarter and we expect these cars to have a similar positive impact on sales.”

Key figures	Q1 2016	Q1 2015
Net revenue, MSEK	41,757	33,651
Operating income, EBIT, MSEK	3,145	-11
Net income, MSEK	2,069	-241
EBITDA, MSEK	5,588	2,237
Cash flow from operating and investing activities, MSEK	-323	-988
EBIT margin, %	7.5	0.0
EBITDA margin, %	13.4	6.6

In Western Europe the company continued its strong performance and reported retail sales of 49,305 units (2015: 43,522), an increase of 13.3 per cent, during the first quarter. Germany, UK, Spain and France were the main drivers behind the positive development.

In China retail sales in the first quarter brought China back to a positive development trajectory with an increase of 13.4 per cent, reaching 19,636 (2015: 17,311) units. The XC60 was the best-selling model with retail sales of 8,794 (2015: 8,029).

In Sweden, previous strong sales trends continued, selling 16,047 (14,093) units and recording an increase of 13.9 per cent.

In the US, Volvo Car’s turnaround continued to gather pace. Sales rose 19.2 per cent compared to the same period last year to 16,361 (2015: 13,723).

“We anticipate the full-year retail sales to increase. The XC90 will, with a whole year of production, be a main driver. During the latter part of the year the start of production of the S90 and the V90 will also contribute to the increased sales. Based on the volume increase, albeit influenced by launch costs for the new models reaching markets during the year, we anticipate our full year net revenue and operating income to increase year over year,” said Håkan Samuelsson.

Ferrari Q1 sees growth in Turnover, sales and profits, now we see how they fair as an independent company.

• Total shipments reached 1,882 units, up 15%
• Net revenues grew 8.8% (+8.4% at constant currencies) to Euro 675 million
• EBIT of Euro 121 million, 250bps margin increase
• Net profit up 19% to Euro 78 million
• Net industrial debt^[1] slightly down from year end 2015 at Euro 782 million

(In Euro million unless otherwise stated)	For the three months ended March 31,
	2016		2015	Change	%
Shipments (in units)	1,882		1,635	247	+15%
Net revenues	675		621	54	+8.8%
EBIT	121		96	25	+26%
Adjusted EBIT1	121		100	21	+21%
EBITDA1	178		156	22	+14%
Adjusted EBITDA1	178		160	18	+11%
Net profit	78		65	13	+19%
Earnings per share (in Euro )	0.41		0.34	0.07	+19%
Adjusted earnings per share1 (in Euro )	0.41		0.36	0.05	+13%
(Euro million)	Mar. 31, 2016		Dec. 31, 2015	Change
Net industrial debt1	(782)		(797)	15

Adjusted EBIT

• Increased volume of approx. 260 cars (excluding LaFerrari), all regions up thanks to strong start of the new models 488 GTB, 488 Spider and F12tdf; higher margin contribution from personalization
• Negative mix effect due to higher sales of V8 vs. V12 and lower sales of LaFerrari, finishing its limited series run, partially offset by FXX K and first deliveries of F60 America

Adjusted Net Profit

• Net profit for Q1 2016 was Euro 78 million, up Euro 13 million (+19%) due to combined effect of strong adjusted EBIT partially offset by higher financial expenses and benefitting from a lower tax rate

Net Industrial Debt

• Net industrial debt¹ reduced to Euro 782 million, primarily due to strong adjusted EBITDA partially offset by capex and negative change in working capital

2016 Revised Outlook^[2]

The Group is revising its guidance upwards as follows:

• Shipments: >7,900 including supercars
• Net revenues: _˜€3 billion
• Adjusted EBITDA: ≥ €800 million
• Net Industrial debt^[3]: ≤ €730 million    

Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) today announces its consolidated preliminary results^[4] for the first quarter ended March 31, 2016. 

Shipments

Shipments5 (units)		For the three months ended March 31,
		2016	2015	Change		%
EMEA		950	765	185		+24%
Americas		523	515	8		+2%
Greater China		156	134	22		+16%
Rest of APAC		253	221	32		+14%
Total shipments		1,882	1,635	247		+15%

Shipments totaled 1,882 units in Q1 2016, up 15% from previous year. This performance was driven by a 21% increase in sales of our 8 cylinder models (V8), led by the success of the two newly launched models: the 488 GTB and the 488 Spider. Shipments of the 12 cylinder models (V12) were down 6% due to the phase out of the FF, the completion of the lifecycle of the F12berlinetta (now in its 5^th year of commercialization) and LaFerrari finishing its limited series run, partially offset by the introduction of the new F12tdf.

All regions experienced sound year-on-year growth: EMEA^[5], Americas⁵, Greater China⁵ and Rest of APAC⁵were up 24%, 2%, 16% and 14% respectively.

Total net revenues

(Euro million)		For the three months ended March 31,
		2016	2015	Change		%
Cars and spare parts[6]		481	429	52		+12%
Engines[7]		57	64	(7)		(11%)
Sponsorship, commercial and brand[8]		118	109	9		+8%
Other[9]		19	19	-		-
Total net revenues		675	621	54		+8.8%

Net revenues for Q1 2016 were Euro 675 million, an increase of Euro 54 million or 8.8% (+8.4% at constant currencies) from Q1 2015. Higher net revenues in Cars and spare parts6 (Euro 52 million, +12%), due to increased volumes led by new models 488 GTB, 488 Spider and F12tdf, along with a higher contribution from personalization, and Sponsorship, commercial and brand8 (Euro 9 million, +8%), mostly due to better championship ranking, were partially offset by a decrease in Engines7 (Euro 7 million, -11%), mainly attributable to lower shipments to Maserati despite higher rental revenues from other Formula 1 Teams.

(Euro million)		For the three months ended March 31,
		2016	2015	Change		%
Adjusted EBIT		121	100	21		+21%
Adjusted EBIT margin		18.0%	16.1%	+190bps
Adjusted EBITDA		178	160	18		+11%
Adjusted EBITDA margin		26.3%	25.7%	+60bps

Adjusted EBIT1 was Euro 121 million, up Euro 21 million (+21%) from Q1 2015 as a result of higher volumes from the newly launched 488 GTB, 488 Spider and the F12tdf as well as a positive margin contribution from our personalization programs. The increase was also supported by lower Selling, general and administrative costs^[10] of Euro 2 million, mainly due to timing of the 2016 F1 racing season. Mix was negatively impacted (Euro 8 million) by higher V8 versus V12 range models, lower sales of LaFerrari partially offset by the increase of FXX K, the first deliveries of the F60 America, a strictly limited edition car (only ten units), which was produced to commemorate the 60^th Anniversary of Ferrari in America. Research and development costs and industrial costs increased by Euro 1 million attributable to the 2016 development of the power unit for F1 racing activity which was partially offset by lower D&A for 458 family and efficiencies on production costs.

Tax rate dropped to 30.9% in Q1 2016 vs. 33.5% in Q1 2015, as a result of the Italian Government’s decision to reduce the Italian nominal tax rate from 27.5% to 24% by 2017.

As a result of the items described above, net profit for Q1 2016 was Euro 78 million, up Euro 13 million (+19%).  

Industrial free cash flow¹ for the three months ended March 31, 2016 was Euro 28 million, primarily driven by a strong increase in cash from operating activities but partially offset by capex and negative change in working capital (less down-payments received for the LaFerrari). Q1 2015 industrial free cash flow¹included a Euro 44 million one-time cash in-flow related to a partial reimbursement by Maserati of its inventory in China.

Net industrial debt¹ at March 31, 2016 was Euro 782 million, down from the Euro 797 million at the end of 2015, due to industrial free cash flow generation.

The Company accessed the public debt markets for the first time with a Euro 500 million Bond issuance due 2023 with a fixed annual coupon of 1.50%.

Formula 1

Scuderia Ferrari has worked diligently throughout the 2015 calendar year to ready itself for the 2016 season, and the results are becoming visible: 4 podiums in the first 4 races, with missed opportunities in each one of the 4 events to place both drivers on the podium and even bring home the winner’s trophy. The team is totally focused on regaining its rightful place as the standard setter in F1 racing and we look to the rest of the season with confidence. Scuderia Ferrari totaled 700 podiums throughout its racing history.

GTC4Lusso

The new Ferrari GTC4Lusso, unveiled at the recent Geneva Motor Show, is Maranello’s latest interpretation of the four-seater concept, which combines extraordinary technology and performance in all driving conditions with sporty elegance and luxurious comfort for driver and passengers alike.

Brand

As previously announced we signed a non-binding memorandum of understanding for the licensing of the design, construction and operation of a new Ferrari theme park to be located in one of the primary cities in Mainland China.

As indicated during the IPO process, Ferrari is aggressively exploring the luxury goods space that extends beyond luxury performance sport cars, while nurturing and expanding the Scuderia Ferrari merchandising concept, which is inextricably linked to its racing activities in F1.

It is expected that the first evidence of this development (Ferrari branded goods akin to its luxury performance sport car offering) would be accessible to potential customers in 2017, when the Company celebrates its 70^thanniversary.

Subsequent Events

Ferrari Financial Services S.p.A. (FFS S.p.A.), an Italian indirect subsidiary of Ferrari N.V., and FCA Bank S.p.A. (FCAB) today announced that they have signed a memorandum of understanding for FCAB to acquire a majority stake in Ferrari Financial Services AG, a wholly owned subsidiary of FFS S.p.A. which provides retail and leasing financial services in certain European countries. The consummation of the transaction is subject to approvals of competition and banking regulatory authorities.