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Chrysler Back in the Black After Five Years.

Maker also outlines details of government loan payoff.

by on May.02, 2011

New products like the Jeep Grand Cherokee helped Chrysler reverse course during the first quarter.

For the first time in nearly five years, Chrysler Group posted a quarterly profit as the company’s improbable comeback continued to pick up momentum.

Chrysler earned $116 million for the first quarter, reversing the $197 million loss posted during the first quarter of 2010, as the company’s revenue grew by 35% to $13.1 billion in the first three months of 2011.

The latest number mark a potentially significant reversal of fortune for a company that hasn’t made money since former partner Daimler AG effectively dumped the U.S. arm on financial equity giant Cerberus Capital Management.  Failing to reverse course, Cerberus agreed to put Chrysler into bankruptcy protection in 2009, the automaker emerging under the control of Italy’s Fiat SpA.

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The first-quarter turnaround “shows we’re on the right path,”  Sergio Marchionne, the CEO of both automakers, said during a media conference call. “We’re now in an exceptionally solid financial position. It’s been a good quarter and a good operating performance.”

Marchionne separately noted, “We remain focused on delivering great products to our customers and continuing to achieve the sales and financial targets outlined in our 2010-2014 business plan.”


Chrysler Posts First Profit Since Bankruptcy

“Gaining momentum,” proclaims Marchionne of $116 mil net.

by on May.02, 2011

Chrysler/Fiat CEO Sergio Marchionne during a visit to the minivan plant in Windsor, Ontario.

Chrysler Group LLC reported $116 million in net income for the first quarter of 2011, marking the first time the long-troubled Detroit maker has been in the black since it emerged from Chapter 11 protection in June 2009.

By comparison, Chrysler reported a $197 million loss during the first three months of 2010.  The maker has been struggling to reverse its fortunes even as it has come under the increasing control of Fiat SpA.  The Italian maker was given a 20% stake following Chrysler’s emergence from bankruptcy.  That stake is now 30%, and is expected to reach 46% as soon as executes a plan to pay off its government loans.

“Chrysler Group’s improved sales and financial performance in the first quarter show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers,” said Sergio Marchionne, Chief Executive Officer of both Chrysler and Fiat, in a prepared statement.

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“These results,” the executive added, “are a testament to the hard work and dedication of our employees, suppliers and dealers, all of whom are helping Chrysler create a new corporate culture built on the quality of our products and processes, and simple, sound management principles.”