Two years after filing for bankruptcy, the Chrysler Group posted a profit in the first quarter of 2011, its first since 2006.
The Detroit-based carmaker reported a net income of $116 million, compared to its net loss of $197 million in Q1 last year. Sales grew 18%, boosting revenue by 35% to over $13 billion.
In 2010, Chrysler introduced 16 new and revamped models. The Dodge Grand Caravan was the main mover in the first quarter, with sales for the model up 30% on last year. The Jeep Grand Cherokee, Dodge Durango and Compass were other major contributors. Market share in the US rose slightly from 9.1% to 9.2%, while in Canada it increased by 1% to 14.7%.
Sergio Marchionne, CEO of Chrysler and Italian partner Fiat, said everything was on track to surpass forecasts of between $200 million and $500 million in net profit for 2011.
Fiat Deal Keeps Chrysler Afloat
Forced to file for bankruptcy protection in 2009, analysts and indeed US President Barack Obama’s administration considered Chrysler as good as gone. In June 2009, it was sold to Fiat, who currently owns 30% of the company.
The rejuvenated American carmaker intends to borrow $6 billion in order to repay over $7 billion in debt that it owes to the US and Canadian governments. The remainder of the sum will come from Fiat, who plans to invest $1.27 billion in Chrysler to secure an additional 16% stake in the US carmaker.
Key Players –Top US Automotive Industry Manufacturers
- General Motors, Ford, Chrysler
Key Statistics – Top US Automotive Global Sales – April 2011
- Ford F – Series PU: 45,435 units
- Chevrolet Silverado PU: 29,342 units
- Chevrolet Cruze: 25,160 units
- Chevrolet Malibu: 24,701 units
- Ford Escape: 21,240