Hot on the heels of Ford's earnings announcement for the year that was, Chrysler today reported a 2012 net income of $1.7 billion, up substantially from the comparatively minuscule $183 million profit earned in 2011 when it repaid its US government loans.

Chrysler's good year ended with an excellent fourth quarter that saw net income rise 68 percent from $225 million in 2011 to $378 million. Where are all those extra earnings coming from? Market share, which Chrysler saw increase to 11.4% last year on sales of 1.65 million vehicles. In fact, the Auburn Hills, MI-based automaker out-paced the industry's market growth of 13 percent last year with sales up 21 percent for the year.

The company also revealed an updated product plan for its Chrysler Group and Fiat brands that looks all the way out to 2016. It's an updated version of the plan introduced in 2009 shortly after Fiat took control of the American automaker, and includes such new additions as an Alfa Romeo model, likely the 4C, to be introduced in the US this year, as well five more Alfa models by 2016. Likewise, Fiat will be growing by an additional seven models in the coming few years.

As for the Chrysler Group's brands, many new models and refreshes are being delayed a year or two, including a Ram-badged version of the Fiat's small commercial van, a small Fiat-built Jeep and the return of the seven-seat Grand Wagoneer. A number of vehicles from Dodge, however, are getting surprise refreshes this year and next, and the new Viper looks scheduled for an update in 2015.
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Chrysler Group Reports Full-year 2012 Net Income of $1.7 Billion
Full-year Modified Operating Profit Totaled $2.9 Billion, Up 47 Percent, and Free Cash Flow Was $2.2 Billion
  • Chrysler Group LLC's full-year 2012 net income improved more than eight-fold to $1.7 billion, from $183 million a year ago
  • Net revenue for the year was $65.8 billion, up 20 percent from $55.0 billion a year ago; fourth-quarter revenue was up 13 percent to $17.2 billion
  • Modified Operating Profit(b) improved to $2.9 billion for the year, up 47 percent from the prior year; fourth-quarter Modified Operating Profit was up 40 percent to $711 million
  • Cash(d) at year's end was $11.6 billion compared with $9.6 billion a year ago and $11.9 billion at Sept. 30, 2012; Free Cash Flow(e) for the year was $2.2 billion compared with $1.9 billion a year ago
  • Net Industrial Debt(f) was $1.0 billion at Dec. 31, 2012, an improvement of $1.9 billion from a year ago
  • Worldwide vehicle shipments were 2.4 million for the year, up 20 percent from 2.0 million a year ago; fourth-quarter shipments were 613,000
  • Worldwide vehicle sales for the full year 2012 totaled 2.2 million, up 18 percent from a year ago; fourth-quarter sales were 533,000

January 30, 2013 , Auburn Hills, Mich. - Chrysler Group LLC today reported preliminary net income of $1.7 billion for the full year 2012, up from net income of $183 million a year ago, exceeding the guidance provided earlier in the year. Full-year 2011 Adjusted Net Income(a) was $734 million, after adjusting for the $551 million loss on extinguishment of debt recognized in the second quarter of 2011.

"While we are pleased to have achieved strong financial results in 2012, the enterprise we are crafting is not complete," Chrysler Group LLC Chairman and CEO Sergio Marchionne said. "The goals we've set for the year ahead reflect a common desire by everyone from leadership to the shop floor to succeed and sustain the power of the house we are building. Our aim is meaningful, but it is not complicated, and only a preoccupation with quality can achieve it. We pause for a moment to enjoy our accomplishments, but we will not stop. Our continued achievement relies upon maintaining a humble spirit and an intense focus on the integrity of our work. And so we press on."

For the fourth quarter, net income was $378 million on revenue of $17.2 billion, up 68 percent from $225 million a year earlier. For the year, the Company reported revenue of $65.8 billion, an increase of 20 percent from a year ago, primarily due to higher vehicle shipments.

Modified Operating Profit was $2.9 billion for the year, or 4.4 percent of revenue, up 47 percent from $2.0 billion reported in the prior year. The increase resulted from continuing strong sales and pricing, partially offset by an increase in the proportion of sales from passenger cars, including the Dodge Dart and Fiat 500, versus trucks and SUVs; increased research-and-development costs for future models; and increased spending on advertising. Modified Operating Profit for the quarter was $711 million, a 40 percent increase from the same period last year.

Modified EBITDA(c) was $5.5 billion for the year, or 8.3 percent of net revenue, an increase of 15 percent from the prior year. For the fourth quarter, Modified EBITDA was $1.3 billion.


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  • 52 Comments
      Duilio
      • 1 Year Ago
      Fiat is not badly managed in Europe as someone said. Its main market in Europe is Italy, which has been severely hit by economic downturn due to the European crisis and its debt crisis. Sergio has put off all investment in Italy. All its cars in the continent are a bit outdated, but that´s not due to incompetence, this was done by design to save money that otherwise they would incur in bigger losses. Fiat has controlled its losses in Europe, with its main market one of the most severely hit better than Ford, Opel, PSA and Renault, all of which now enjoy bigger market shares than Fiat. On the other hand, the company has sold almost a million cars in Brazil, its best market right now.
      Steve
      • 1 Year Ago
      Good move for Chrysler. It needs the small commercial van to compete with Fords Transit, but. also the larger commercial van to compete with the Mercedes van. The Dodge division can do the design them that RAM products are known for. Dodge needs a replacement for the Avenger. This car competes with Toyotas, Hondas, Nissans,etc. The Chrysler 200 competes with Premium brands and Chrysler needs new marketing/advertising changing the competition for Chrsyler Premium products. Fiat needs more cars in its showrooms and Chrysler should allow Fiat products in it\'s showrooms, to make it easier for new buyers to have their Chrysler/Dodge/Jeep/Fiat products easily serviced.
      dude
      • 1 Year Ago
      congrats.....
      Howard
      • 1 Year Ago
      i heard the JEFFERSON NORTH ASSEMBLY PLANT is hiring for assembly line workers but there site only lists seven supervisor positions, how and where do i apply?
      Chris
      • 1 Year Ago
      Referencing the new Five Year plan (http://www.allpar.com/news/index.php/2013/01/an-chrysler-plan-changes): -A scary number of new vehicles are being launched from Fiat for 2015. I understand this might be to keep Italy's factories busy during Europe's tough times, but does it make sense to make a lot of Fiats when Fiat's "ideal" market (Europe) is in the trash? -I'm praying that the new car Chrysler launches in 2014 is the 200. That model has so much potential and they can't wait any longer to have a competitive midsize. -Dodge and SRT are getting a lot of refreshes but no new models for a long time. This should eliminate the hope of the Barracuda or SRT Dart any time soon (shocking and disappointing!). I can't help but wonder if Dodge can afford to keep the same lineup. The Challenger desperately needs a new generation, here's hoping that the refresh is substantial in terms of weight, shortened length, refinement, and handling. -The Dart is a spectacular car...just that the 9-speed transmission and more powerful engine choices weren't ready for its launch. With a powertrain refresh, it'll be a winner for sure. -If the Alfa Romeo 4C can successfully offer the chassis and RWD fun that the Toyobaru has, the Alfa Romeo's launch will be a spectacular success.
        Mike Pulsifer
        • 1 Year Ago
        @Chris
        If there's one car that could pull me away from my 500, it would be a Punto. I want more (non-500) models!
      Avinash Machado
      • 1 Year Ago
      Kudos Sergio.
      • 1 Year Ago
      [blocked]
        carguy1701
        • 1 Year Ago
        Get some counseling.
        MAX
        • 1 Year Ago
        BTW, Fiat 500 is best selling subcompact model almost outselling whole Scion lineup!
        MAX
        • 1 Year Ago
        Lets remember that Chrysler had 13 billion in the bank that Mercedes stole. BTW, Hyundai is the Korean government motor posterchild for government bailouts.
        jtav2002
        • 1 Year Ago
        They've barely had any "Fiat derived" vehicles. Not sure what vehicles you think are failing to the point of saying "every" one is failing. The Dart while maybe not flying off shelves has been out less than a year so I think it's entirely too soon to call that a failure and the Viper is only starting to roll off assembly lines. Other than that, as you mentioned Ram is doing better and the Grand Cherokee has been great. They'll always sell Wranglers as long as they produce them. The redesigned in 2010 Charger is leaps and bounds above the previous generation and the 300 is a great car as well. You're obviously just a Ford fanboy. Don't forget they got government money too, they just had the foresight to obtain is before they were near complete collapse so it wasn't labeled a "buyout." WHile I do like a lot of Ford's new products it would seem that a lot of their lineup looks really good on paper but doesn't always hold true to that on the road. They haven't had the most flawless rollouts of some of their recent cars.
          itguy08
          • 1 Year Ago
          @jtav2002
          Nor has Chrysler. The Pentastar V6 has been pagued with issues. The rest of their stuff is carryover and not much new. Even the Ram is underwhelming - nothing innovative there. Still the least capable of the trucks and only "looks pretty". Then there's the lingering qaulity issues.
          CEC
          • 1 Year Ago
          @jtav2002
          itguy Really, pagued with issues? Get real, the valve guide issue affected LESS then 1% of the Pentastar issues; not to mention it isn't a safety issue because it doesn't effect performance, it is just an NVH issue, plus Chrysler said if the issue appears it will get fixed under warranty. Only been named to the wards 10 best every year since it's inception. A never been done in a pickup 8 speed transmission and air suspension isn't innovative? That would even be news to Ford. I had no idea that least capable meant class leading 21 mpg COMBINED and class leading 37,000 GCVW. Get real dud, you are obviously a Chrysler hater, who can't stand seeing the company outpace the rest of the industry.
      AngeloD
      • 1 Year Ago
      Kudos to Chrysler. What percentage of Chrysler profits will be siphoned off to support another incompetently run European car maker? (FIAT this time instead of Daimler).
        lasertekk
        • 1 Year Ago
        @AngeloD
        Very short sighted and ill informed response. FIAT in Europe is not incompetently run. It's the local economy dragging down sales figures. As for leadership, Sergio is responsible for both endeavors.
          Jerry
          • 1 Year Ago
          @lasertekk
          Cannot be worse than Opel, they made profits a couple years in the last decade...
          AngeloD
          • 1 Year Ago
          @lasertekk
          You simply don't know what you're talking about. FIAT in Europe is the most bady managed major manufacturer next to PSA. They're even worse than Opel. Plant utilization is lower than almost any other major player next PSA. Can't-be-fired, communist-party-affiliated, thug unions. FIAT loses market share year after year. Lancia and Alfa run straight into the ground. Trashing Chrysler and rebadging them as Lancia. Making Dodge trucks an independent brand, and dragging out introducing a diesel Wrangler in N.A. for another decade or two is plain retarded, I don't care who you are.
        southpawxj
        • 1 Year Ago
        @AngeloD
        There's no profit sharing yet AFAIK.
      luigi.tony
      • 1 Year Ago
      Good Job Italy and FIAT
      xtabay1
      • 1 Year Ago
      1.7 Billion! and from a car company that the right wing haters said we should have left on the cutting room floor.
        carney373
        • 1 Year Ago
        @xtabay1
        The issue was that Chrysler should have gone through a standard bankruptcy process that let it shed its unsustainable debts and contracts. Instead Obama imposed a bailout of the unions, ensuring that this crisis will happen again down the road, and blatantly stiffed the bond-holders who had been legally entitled to be first in line, even publicly threatening and intimidating some who dared insist on their legal rights. Chavez / Mugabe style thuggery.
          MAX
          • 1 Year Ago
          @carney373
          The courts said it was fine, that's the rule of law last i heard.
          MAX
          • 1 Year Ago
          @carney373
          Instead Obama screwed over the credit default swap crooks and instead helped the Detroit automotive community and the workers. It's hard to argue with Chrysler's results unless you love Japanese government motors or Korean government motors.
        MAX
        • 1 Year Ago
        @xtabay1
        WE HAVEN'T SEEN ANYTHING YET! THE NEW 9 SPEEDS WILL GIVE MOPAR A TECHNOLOGICAL EDGE OVER EVERYONE IN THE CAR BUSINESS.
      itguy08
      • 1 Year Ago
      Perhaps they should focus on innovation and quality so their brands won't be dead last in all quality surveys. Oh yeah, that's right, quality was never in Chrysler's DNA.
        F1
        • 1 Year Ago
        @itguy08
        they may not have the best reputation but no car is perfect, when toyota went through the accelerating prius.. all of a sudden nissan gets busted for hiding recalls and out of no where honda starts announcing their recalls. before that japanese companies were hiding recalls. matter of fact toyota just announced a recall today. ...lets not get started with euro cars coz i know alot of folks who's beemers and mercs dont make it to 100K.
          itguy08
          • 1 Year Ago
          @F1
          It's one thing to "not be perfect" but another to be at the bottom for all your brands year after year.
      gop.hates.america
      • 1 Year Ago
      "Let Detroit Go Bankrupt"
        MAX
        • 1 Year Ago
        @gop.hates.america
        They sure do hate the actual America, they are love with Ayn Rand's imaginary America. Funny how so many of them are so against the bailouts but support state socialist JApanInc and KoreaInc car companies? Either greedy puppets or just not really very bright.
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