Lancia was once again the star performer for Fiat's Auto Division in Europe last month, bucking a trend that saw sales from most carmakers across the continent plummeting.

As had been widely predicted a Europe-wide sales slowdown gathered pace with the many big losers in February including Toyota (down 7.3 pct, year-on-year), DaimlerChrysler (-9.5 pct), Renault (-12.1 pct), Nissan (-16.6 pct) and MG-Rover (-26.6 pct). Only BMW Group were winners last month (up 26.6 pct year-on-year), while the European giant's all shed sales with the VW/Audi Group down 2.2 pct, Peugeot-Citroen (-3.3 pct) and Ford Europe (-4.7 pct).

FIAT FOCUS ON INCREASING MARGINS

Fiat Auto were not immune to the widespread plunge in demand, the division as a whole shifting 81,549 units, down 11.6 percent year-on-year. However, with Fiat's management embarking on a new policy of raising individual car margins, and focusing on retail sales rather than unprofitable fleet and bulk orders, the figures were widely welcomed by analysts, and in early market trading after the announcement yesterday their shares climbed on the major European bourses.

On top of this Fiat is now in a period of restructuring, and awaiting a stream of key new models which will arrive later this year, including the new Fiat Punto and Croma, as well as the more specialist Alfa Romeo 159 and Brera. Thus the first six months of the year are expected to be very tough for the historic Italian carmaker, and continuing to keep sales steady has delighted senior management.

LANCIA'S REVIVAL KEEPS UP ITS PACE

Dividing up Fiat Auto's brands, Fiat fared worst last month, down 14.6 pct (57,789 vehicles registered) and Alfa Romeo were down 9.1 pct (12,184), partly a result of Alfa 156 sales drying up ahead of its replacement's arrival.

However, Lancia once again recorded a stunning month for sales, with 11,175 cars being registered, equating to a 0.8 pct rise year on year.
 

Its been a truly remarkable recovery for Lancia over the last year. The Ypsilon continues to sell strongly, the Musa is just now coming on stream across Europe, and has been well received, while the new potent Ypsilon Sport, which was previewed in Geneva earlier this month, is even more stunning and exciting in the flesh than Lancia had led people to believe.

Only a year ago the picture had looked bleak for Lancia. The then Fiat Auto boss Herbert Demel didn't see a future for the famous brand and was seeking to kill it off. However, the arrival of new Fiat Group CEO Sergio Marchionne, saw a realisation of the underlying value of the 'luxury' car arm, and it was last month given the green light for its longer term future when an exciting new C-segment 'Delta' model, expected to arrive as early as 2007, was announced.

YPSION SPORT: A NEW WINNER IN THE MAKING

Lancia will get a huge boost when the powerful 150bhp M-Jet Ypsilon Sport arrives at the end of this year. An unashamed MINI competitor, on just looks alone, if the Geneva appearance last week is anything to go by, it will run rings right round its BMW-owned, English-built rival.

The Ypsilon Sport was undoubtedly one of the show's highlights, its Zagato-inspired aggressive stance, drawing on all Lancia's car making famous heritage in the finest sense. Coupled up to a punchy turbodiesel engine, a tasteful and sporty interior, excellent driveability, and high equipment levels, including the now obligatory large glass roof, the Ypsilon Sport can only enhance Lancia's snowballing revival.

Last month Fiat Auto's European market share came in a 8.2 pct (down 0.5 pct year-on-year), which equated to 5.8 pct for Fiat (-0.7 pct), while Lancia remained unchanged on 1.1 pct, and Alfa Romeo shed 0.1 pct to finish the month on 1.2 pct.