Chrysler has posted its first quarterly profit since go... Chrysler has posted its first quarterly profit since going through bankruptcy (Chrysler).
Two years after it was escorted through bankruptcy reorganization by the White House and with the help of loans from U.S. and Canadian taxpayers, Chrysler has posted its first quarterly profit.

The Auburn Hills, MI automaker -- maker of Jeep, Dodge and Chrysler vehicles -- earned $116 million in the quarter, an improvement after losing $197 million in the same period last year. Revenue was up substantially by 35% to $13.1 billion, while sales of vehicles were up 18%.

Cash on hand is a key measure of an automaker's health because of the substantial capital needs of industrial companies. Chrysler said it had $9.9 billion in cash on hand as of March 31, an increase of $2.6 billion in three months, and $13.3 billion in debt.

Chrysler CEO Sergio Marchionne, who also serves as CEO of Italian automaker Fiat, which is allied with Chrysler, has announced the company will shortly refinance its $7.5 billion in outstanding loans with the U.S. and Canadian government with bank debt, paying back taxpayers who bailed out the company years ahead of schedule. Chrysler said it would repay the loans by the end of June by selling $2.5 billion in bonds and borrowing $5 billion at better terms than those dictated with the 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," Marchionne said in a statement. "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."

Chrysler has been crawling back to profitability, but was kept in the red last year by the interest payments on the loans that were critical to its survival in 2009. The company had reported operating profits in each quarter of 2010, but those interest payments, which totaled $1.23 billion for the year, resulted in losses over all. Chrysler lost $652 million last year.
Will Chrysler continue to turn a profit throughout 2011?
Yes 7626 (82.5%)
No 1613 (17.5%)


Looking ahead, the company, which is expected to do an initial public offering of stock by mid 2012, said it expects to earn $200 to $500 million for all of this year, meaning it could post additional money-losing quarters this year as well as profitable ones.

G.M., which went through government-led bankruptcy at the same time as Chrysler, earned $4.7 billion in 2010, and will report first quarter earnings later this week. Chrysler, though, was in worse shape than GM, and its new-product pipeline was impacted more adversely by the ownership of private equity firm Cerberus, and then the bankruptcy.

The company's passenger cars, though much improved under Fiat, are still under-performing its rivals, while pickup trucks and SUVs still account for most of Chrysler's sales--78 percent in the first quarter, compared with about 60 percent for GM and Ford. The all-new Jeep Grand Cherokee has been especially well received.

Chrysler is gearing up for a significant 2012 and 2013, a period in which it planned to introduce several new vehicles developed from scratch by Chrysler and Fiat design and engineering staffs working together. Those new vehicles are being built from Fiat engineering platforms that are being adapted for Chrysler vehicles. The automaker in the last few months has been rolling out numerous updated and improved cars and SUVs, but those have been mostly improved carry-over vehicles from when Chrysler was owned by Cerberus Capital Management and German automaker Daimler before that.

Cerberus was stripped of ownership of Chrysler in 2009 when the company hit the financial wall, and needed government help. To protect jobs in the already hard-hit Midwest, the White House Auto Industry Task Force directed funds from the Troubled Asset Relief Program (TARP) funds. Fiat was the only automaker that stepped up with interest in running Chrysler.

The auto industry bailout kept Chrysler, as well as General Motors, from going out of business or being broken up, as well as hundreds of auto suppliers and thousands of auto dealers that would have gone out of business as a result.

By the end of the year, Fiat expects to exercise an option that will give it 51% of Chrysler. Until the government loans are formally paid back, the U.S and Canada own a combined 10.8 percent of Chrysler. Chrysler is now 30-percent owned by Fiat. Fiat will increase that by 16% after the loans are repaid. Chrysler's majority owner is currently a trust fund set up to cover the cost of health care for hourly retirees.


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    • 1 Second Ago
  • 341 Comments
      • 4 Years Ago
      And people argue that Obama has done nothing for America. One of the pillars of American automaking was on the brink of ruin and was saved by a bailout and the 'cash for clunkers' program and are now contributing back to the American economy. Had it been left up to Republicans Chrysler would have been left to fail... Lets keep the man in office that is pushing to get America back to the fore front
        harleydavid105
        • 4 Years Ago
        Cash for clunkers should not have given any money to people buying a foreign vehicle. That didn't help Ford or Chrysler or GM. When Japan ran the same program they would not allow anyone to buy an import, they had to buy a Japanese vehicle. That is not a level playing field, people.
        • 4 Years Ago
        cash for clunkers made the auto industry even worst
        teleqsal
        • 4 Years Ago
        Thats his claim to fame? Gave taxpayers money to automakers that didn't know how to manage their own companies? LOl Sure--lets keep that loser in office! (I'm an Independent)
        veasystreet
        • 4 Years Ago
        Bush initiated the bail out of GM & Chrysler in the mid Decmember of 2008. By December 31, 2008, the U.S. Treasury under President Bush had ALREADY loaned GM $14 billion and by Januaary 2, 2009 they the U.S. Treasury had doled out $4 billion to Chrysler. You are wrong, the savings of GM & CHrysler was an AMERICAN effort, not a Democratice or Republican one. When O'Bama took office the situation worsened and more money was needed to save the auto industry. Do not try to make a political football out of every event.
          • 4 Years Ago
          @veasystreet
          Well stated. Not only was it an American effort but it was also due to sound business principles, something that is repeatedly maligned as "evil". There is something other than government dollars and pushy Unions that made these companies succeed.
      Hey dear
      • 4 Years Ago
      I love my Jeep Wrangler 2007 but I would not buy any another vehicle from Jeep until they finally figure it out how to sell them with better ' Gas Miles ' than 15 to 19 ! Who want to spend so much money in Gas these days !!!
        hony53
        • 4 Years Ago
        @Hey dear
        Hey dear, I also LOVE my Wrangler...see my post. Harleydavid105 has a problem. From the name, I guess he rides a 2 wheeled coffin.
          harleydavid105
          • 4 Years Ago
          @hony53
          I also own 4 GM cars and a Dodge Caravan.
          harleydavid105
          • 4 Years Ago
          @hony53
          My reply was to Hey dear, not tradespeople and the like who actually need a truck or 4X4.
        harleydavid105
        • 4 Years Ago
        @Hey dear
        Don't buy a four wheel drive. Do you really need an SUV? Do you tow a trailer or go off-road? Or did you buy 1 because they were in style?
          hony53
          • 4 Years Ago
          @harleydavid105
          If you really need to knopw, I have a job that requires me to report for work NO MATTER what the weather. I HAD to report even on the evening of 9-11. Is there a problem with that?
      lela & terry
      • 4 Years Ago
      Chrysler, The leader in the... Or should I say the oil companys love them. #1 worst in MPG cars and trucks
      Cris
      • 4 Years Ago
      GOOD NOW PAY THE TAX PAYERS BACK WITH INTEREST AND STOP THESE HUGE BONUSES. LETS ALL FLOOD THE WHITE HOUSE. IT'S OUR MONEY AND WE WANT IT BACK ASAP, NOW NOT YESTERDAY.
      Steven Ruza
      • 4 Years Ago
      steven ruza good
      David
      • 4 Years Ago
      I hate to say it but it will have to be many years of proving themselves before I would even consider buying another Chrysler Product. The 2008 Jeep Wrangler i had was a joke at best...a real American Icon..NOT. I couldn't get rid of it fast enough. At 50 years old and having an interest in cars, I've had them all...American, Japanese, European. I've had 2 bad ones in my whole life, one Dodge and that crumby Jeep. I wish them luck but "No thanks"
        Cris
        • 4 Years Ago
        @David
        bAILOUT, AND IT IS OUR MONEY AND WE WANT IT BACK, NOW.
      • 4 Years Ago
      And some clowns would have preferred to have the American auto industry wiped out, so they could get rid of more jobs, not only the UAW, but myriad parts manufacturers, or the idiot representatives that wanted to see them go belly up because they are paid by the foreign manufacturers who builf factories in their states. All the politicians are for sale. What a country we have become.
      • 4 Years Ago
      I am happy that Chrysler is going to make it. I am glad Obama bailed out the venture capital firm that bought them with extremely favorable terms but let Lehman Brothers fail. I guess if Chrysler was competing against Goldman Sachs they would not have been helped. The impact of Chrysler going away would not have had more impact than that of Lehman which was high but we absorbed it. Good to see in any case that more and more TARP funds are being repaid.
      usmc32yr
      • 4 Years Ago
      Chrysler has been hanging by a thread for decades ......I want buy a Chrysler but I know a lot of people who have and they seem satisfied .....When people go to buy something they all ways praise it as being the best, otherwise they would look like an idiot ...When I buy a new car it has to have styling, good music, be comfortable , have a good climate control system .....none of the Japanese cars make it , they are just to dull and boring .....The Camry is for old women and rental car companies ....BUY AMERICAN , you will be glad you did......if the VIN starts with a one then it was built in America ,a two means Canada and three Mexico.....Go America land of the free and home of the brave .....
        tomozzy123
        • 4 Years Ago
        @usmc32yr
        Buy American from an American company.
          • 4 Years Ago
          @tomozzy123
          so many american cars are built in mexico what about that?
      • 4 Years Ago
      Our 2008 Chrysler Town&Country Van will be droped off at the dealer today. The brakes and roters are going to be replaced for the fourth time. We have twenty-five thousand miles on the van. This is the most expensive car we have ever purchased and the most disappointing. Chrysler company might be in the black (although I don't know how!). That has to be a falsehood. There has to be another set of books.
        SCHUTTE
        • 4 Years Ago
        Chrysler's not the problem - the drivers or the guys fixing are. My 2008 T&C has 74,000 miles and have yet to need brakes and the tires were good to 64,567!!!
        tomozzy123
        • 4 Years Ago
        I know many people who own Chysler minivans and never had brake problems. Do you ride the break or drive up and down hills? You may also look at getting good breaks and rotors. Chinese-made ones suck.
        usmc32yr
        • 4 Years Ago
        Please four brake jobs, new rotors no less, in 25,000 miles ? do you expect anyone to believe that ? I've never heard such nonsense ..
          tomozzy123
          • 4 Years Ago
          @usmc32yr
          No I don't buy it. I had a car that the breaks went bad after 22,000 miles, but I was going down big hills in heavy traffic. The replacement breaks and rotors I bought were Chinese-made, and I had to put new ones on again in 1 year. I stick with American-made replacement parts.
          harleydavid105
          • 4 Years Ago
          @usmc32yr
          Chrysler does have a problem with premature break wear. My sister-in-law's brakes front and rear wore out at 20,000 miles. Chrysler covers this problem. As a mechanic with 40 years exp. I guarantee there is no way anyone can use up 4 sets of brakes in 25,000 miles unless they drive like an idiot.
          harleydavid105
          • 4 Years Ago
          @usmc32yr
          Oops. That should be brake, not break. I need more coffee.
      screenwriter
      • 4 Years Ago
      we own a 2010 camry. toyota's customer service is non-existent. cd palyer sticks, they do not fix. car emits strong sulfur odor while in motion and newly parked. they refuse to acknowledge this, altho other customers complain of same odor. buy American, especially after today's victory!
        mrklew582
        • 4 Years Ago
        @screenwriter
        To get rid of the sulfur smell, change where you buy your gas. The gas you're buying has a high sulfur content, the smell will go away after a couple tanks full.
        harleydavid105
        • 4 Years Ago
        @screenwriter
        Cut your losses and trade it for a GM, Ford or Chrysler.
      • 4 Years Ago
      I'd buy a Ford anyday. they didnt take our tax dollars.
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