• 29
From Monday's 'More Good News' edition, this nugget from Chrysler CEO Sergio Marchionne: "It is clear that if we continue to perform at this rate we're going to be in excess of the guidance that was provided in 2009." What does that mean? It means that Chrysler is making more money and using that money more efficiently than expected. If such performance keeps up, the Pentastar will put up better than expected numbers this year, and could be ripe for an IPO ahead of anyone's schedule.

Chrysler showed an operating profit in the first quarter of this year, but even so, it doesn't want to change its estimates for the entire year, at least not yet. The only brand-new vehicle it will be rolling out is the 2011 Jeep Grand Cherokee, and that leaves a lot of not-exactly-new product trying to keep the momentum going all the way to the end of the year.

Still, for a company that was left for dead last summer, to be here in May of 2010 talking about it at operational break-even this year and net break-even next year is not a bad year of work. With negative cash flow of $1 billion expected this year, true profit is still a couple of years away, but we can at least see the way with the Fiat 500 arriving in December, a Chrysler small car in Q4 of 2011, updates on its current offerings and an IPO. Come on, Jeep Grand Cherokee...

[Source: Reuters]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 4 Years Ago
      Now that's what I'm talkin' about! Keep up the good work Chrysler!
      • 4 Years Ago
      I'm so confident in Chryslers future that I intend to invest in it as soon as they are listed.
      Chrysler makes good, competivtive cars now and the future is unlimited with some very innovative products just around the corner. If you own a Chrysler, you know how good they really are,so please people don't believe the negative spin from people who haven't a clue. My Son-in Law bought a Jeep last night and he's no rental company.
      In two years I'm going to say "I told you so!"
      • 4 Years Ago
      IPO!!! You mean americans can finally own a chunk of Chrysler!!!!!!
      • 4 Years Ago
      Hopefully a new refresh of the 300 will come out sometime next year.

      from those early renders, it looks very promising.
        • 4 Years Ago
        The new (they're more than a "refresh" like the media is reporting) 300 and Charger are both coming out this year, ditto the refreshed Sebring/Nassau and Avenger.

        The article didn't mention both of these for some reason.
        • 4 Years Ago
        The new 300 will be 'out' by December 24th of this year.

        As for the difference between 'all-new' and 'refresh' - I think it's important to realize that the VW rabbit/golf [For example] has never been 'all-new'. Since 1977 [When it first came to North America] it's only been 'refreshed'. But that can be said of many European cars. Point being - an extensively refreshed car isn't a bad thing. And given the fact that a lot of people [Myself included] WANT the next 300 to remain an 'in-your-face' car - it would be silly to change it TOO much. [At least insofar as the 'look' is concerned]
      • 4 Years Ago
      IPO!!! You mean americans can finally own a chunk of Chrysler!!!!!!
      • 4 Years Ago
      I bought into Ford when it was less than $1.50 and again when it was less than $2.00. If anyone wants in, you'd better buy now cause after the crash last week, it hit $11.50 and now its on its way back up. Expect it to hit $30 within 2 years.


      I'm hopging GM will release its IPO soon cause I'm itching to pick some up.

      Chrysler however, I'm not sold on. Chrysler has like nothing in its portfolio besides cars that have been selling relatively steadily for a long time now. With Hyundai, ford and Nissan putting out better products Chrysler is a huge risk.
      • 4 Years Ago
      The Grand Cherokee is pretty nice, but I've seen plenty about it. I also have no doubt that Chrysler will be able to start thinking about IPO very soon, as it's about to get a ton of new models lined up and customers are getting interested. I think Sergio and Fiat have a good chance of kicking some pretty serious butt, and I think Chrysler is doing better than GM right now at generating excitement over its upcoming model lineup.

      With all due respect to the GC, I want Chrysler to release more info about the upcoming Wrangler update. Based on Internet hearsay, either 2011 or 2012 will see a more aerodynamic Wrangler, as well as the Pentastar V6 and some pretty substantial styling changes. It's not a total redesign, but it sounds awesome and Wrangler doesn't need one anyway.
      • 4 Years Ago
      Until their NEW product starts hitting the streets, see Chrysler's turn-around plans being more talk than action.

      I really hope that IPO is not planned for any time this year. Without new cars and trucks to offer consumers I just don't see an IPO having much substance behind it.... even with Fiat running the show.
        • 4 Years Ago
        Yep, just like GM should do. Have quarterly profits, and IPO after new models are released (for GM the Volt, Cruze, and maybe even the Caddy A-series). Besides the Jeep and 300/Charger refreshes, they need to have the small Dodge and medium Chrysler models in place (or least within months of sale).
      • 4 Years Ago
      Why do I get the feeling they are still circling the bathtub drain?
      My guess is Fiat is going to spin off Chrysler and keep Jeep and Ram
      Trucks, and then sell Fiats at Jeep and Ram dealers.
        • 4 Years Ago
        FIAT has published five year product plans for Chrysler and FIAT that both involve integrating models like the 300C and Journey into Alpha and FIAT for sale in Europe, and smaller FIAT platforms like the Panda and other small car platforms being used at Dodge and Jeep.

        It's doubtful that FIAT intends to spin off Chrysler and Dodge.

        As for circling the drain, all Italian companies look that way. For example, Italians like to joke that Moto Guzzi has been going out of business since 1922.
        • 4 Years Ago
        Thanks, Angelo. I hope they make it. I would like to see Fiats offered in the U. S. and I always liked Alphas. The Jeep and Ram lines seem strong, but the car lines seem weak. They have sold a million mini vans. To remain competitive is going to take some new technologies, and Fiat may have what they need.
      • 4 Years Ago
      Chrysler is hugely owned by UAW. http://en.wikipedia.org/wiki/Chrysler If Chrysler becomes profitable, will UAW really want to sell off their profitable Chrysler shares? I don't think so.
        • 4 Years Ago

        Thanks for that detail Captain Obvious. The governments of Canada and the USA also own a stake in them. Bah, bah, bah. Copy and paste. Someone will always make the same comments every time someone mentions GM or Chrysler. A year later it is getting tedious.

        I am so glad to see that Chrysler is making headway when it comes to getting their cost structure under control. Unfortunately the jury is still out on the long term effects of this belt tightening and if they can truly be a Phoenix.

        The news does sound more and more promising though. With their sales levels stabilizing and incremental improvements to their lineup expected this fall they just might be able to hang on. I have to admit to actually getting excited about the future products going over from Fiat now that it looks like Chrysler will survive long enough to make them.
        • 4 Years Ago
        Do you post the same thing with different user names? UAW are not the devil, and their health care fund is linked to the performance of the IPO, so they will definitely sell it to be able to get health care.
      • 4 Years Ago
      The Grand Cherokee looks sweet. The 500 should be a seller too. And I'm personally very interested in what the next 300 is going to look like.

      Excuse me for sounding ignorant, but whats an IPO?
      • 4 Years Ago
      Chrysler is hugely owned by the UAW. http://en.wikipedia.org/wiki/Chrysler Will the UAW really sell off their Chrysler shares if Chrysler becomes profitable?
    • Load More Comments

    From Our Partners

    2014 Jeep Cherokee
    MSRP: $22,995 - $30,095
    2015 Mercedes-Benz E-Class
    MSRP: $51,800 - $103,200
    2014 Chevrolet Cruze
    MSRP: $17,520 - $24,985