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February 1, 2012

Chrysler Posts First Profit Since 2005

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Written by: Pete
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Chrysler announced today that it has posted its first annual profit since the company fell on hard times back in 2005.  Since then it has been a downward spiral for the company that ended with a filing for bankruptcy protection back in 2009.  Consequently they received billions of dollars in the form of loans and bailouts to create a pre-packaged bankruptcy plan.

Much of this success can be attributed to parent company Fiat and company CEO Sergio Marchionne.  He has taken drastic measures to revamp the companies’ products and evidently it has been paying off leading to a net income of $183 million in 2011.  That is a stark contrast to the companies’ earnings in 2010 which were a $652 million loss.

Revenue was up 31% to $55 billion as sales of continuously revised products have been ever increasing.  Globally, Chryslers sales were up 22% and in the United States their market share increased from 9.2% to 10.5%%.

Sales of the new Jeep Grand Cherokee, Chrysler 300, Chrysler 200, Dodge Avenger, and Dodge Journey have really allowed Chrysler to take back some market share recently dominated by Ford, GM, Honda, and Toyota, among others.  The Jeep Grand Cherokee, in fact, saw some of the highest increases in sales in the United States among all vehicles sold.

Sergio Marchionne remains optimistic about their progress and success in 2012.  He said that things are starting to fall in to place and the hard work that they have put in over the last 12 to 24 months is paying off with increasing sales and more importantly increasing revenue and income.

With even more models with upcoming release dates Chrysler has a lot to look forward to.  The new Dodge Dart, seen at the 2012 Detroit Auto Show, should position Dodge in the compact segment quite well.  Something I believe the Neon was never able to do.  Then, with the growing lineup of Alfa Romeo products and Chrysler counterparts making their way ashore, it should drive business into other Chrysler brands’ dealerships.

Only time will tell if Chrysler can once again consider itself part of ‘The Big 3’ and based on what we have seen so far, they are on their way back from the dead, again, to offer class competitive products unseen from Chrysler in more than a decade.  I say, good for them.

Related posts:

  1. 2011 New Car Sales Through Q3
  2. Dodge Avenger Has Fought and Lost
  3. October Car Sales: Europe & Korea Up, Japan & Domestics Down


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