May 3, 2011
Chrysler Group reported its first quarterly profit since the second quarter of 2006 on Monday, posting earnings of $116 million in the first quarter of 2011, compared to a loss of $197 million in the year ago period.
Revenue surged 35% year-over-year to $13.1 billion, as both sales volume and pricing improved. The company sold 18% more vehicles globally in the quarter.
Chrysler is still a privately held company; the U.S. government owns 9%, Italian car company Fiat owns 30%, and the United Auto Workers trust fund ownsthe majority.
The company plans to offer shares to the public late in 2011 or early in 2012, with Fiat expecting to own a 51% share by then, as part of a structured plan for Chrysler to pay back government loans and get back on its feet.
Chrysler announced plans last week to repay $5.8 billion in loans to the U.S. Treasury Department and another $1.7 billion to the Canadian government, which also pitched in to help the company as part of the 2009 bailout.
Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC said, "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. These results 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."
Marchionne added that the company is on pace to hit its worldwide sales target of 2 million vehicles for 2011, including 1.4 million in the U.S., despite
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