Chrysler Is Back & Debts Off

[Rogue]

Chrysler’s house in in good order: exec
American Metal Market, 02.01.2012

Chrysler Group LLC posted fourth-quarter net income of $225 million, the highest quarterly profit since it reorganized under bankruptcy protection in 2009, rebounding from a net loss of $199 million in the final quarter of 2010 on sales that jumped 40.6 percent to $15.13 billion.

For the full year, the Auburn Hills, Mich.-based automaker posted net income of $183 million, in contrast to a $652-million net loss in 2010, on sales that soared 31.1 percent to $54.98 billion.

“The house is in good order.  We are proud of the work we’ve done,” Chrysler chairman and chief executive officer Sergio Marchionne said in a statement Wednesday.  “Now we greet a new year of high expectations with our heads down, forging ahead and focused on executing the goals we’ve set for ourselves as a company.”

Chrysler sold 1,855,000 light vehicles worldwide in 2011, up 22 percent from the previous year.  Fourth-quarter sales of 479,000 vehicles were up 28 percent compared with a year earlier.

In the United States,  the automaker’s market share increased to 10.5 percent last year from 9.2 percent in 2010, driven primarily by a 43-percent increase in U.S. retail sales.

The company last year paid off the remaining $551 million in loans it owed to the governments of the United States and Canada-six years before the payments were due-and also met its final commitment under the loan agreement by producing a new fuel-efficient vehicle, the 2013 Dodge Dart.  As a results of paying back the bailout funding, Italy’s Fiat SpA now owns 58.5 percent of Chrysler’s shares.

Chrysler expects to generate revenue of around $65 billion this year, producing net income of about $1.5 billion.  Some of the anticipated gain are tied to $1.9 billion in investments in North American capacity and new product launches, as well as the ratification of a new four-year labor contract.

[scottzilla]

See that!  Gov't bailouts and Cash for Clunkers work!

[bedlamite]

See that!  Gov't bailouts, screwing the bondholders, and Cash for Clunkers work!

FTFY

[BradleyRas]

If the MultiAir intake valve system is capable of longevity and reliability Chrysler could thrive in the American market.

[phoenix]

2011 was a much much stronger year than 2010, regardless of who was steering the ship. Not sure that it is a sign of anything to do with Chrysler.

[Rogue]

Honda, Mazda, Toyota, all lost market share and their sales dropped in 2011.  Meanwhile, Hyundai, Ford, Chrysler, and the Germans gained big time.  Yes I know.  There was a Tsunami and floods that slowed down and even shut down the supply chain for the Japanese at the best time during buying spree.

The gains by the other makers is not all due to the disasters in Asia.  All of the brands that gained market share did one thing during the economic downturn:  They invested in new models and updated their hardware.  In the meantime, Japan, Inc., contracted and did not release any significant new models in 2010-2011 and just maintained what they had.  Does that sound familiar?  Yes it does.  Same thing happened in the motorcycle industry and we all know the Europeans gained big time market share there.

Chrysler’s bankruptcy proceedings allowed it to shed a lot of its legacy pension funds.  However, Chrysler was also the first to get an agreement with the UAW on reasonable salaries and benefits for the next few years.  Their cost per vehicle is among the lowest in the industry, giving them bigger margins.  Add to that, their new models (Charger, 300C, 200C, Jeeps, trucks), updated powertrains, all of which attracted new buyers and brought back loyal customers, which helped Chrysler become profitable once again.  Fiat’s plan is to closely consolidate vehicle platforms within its brands.  This will only lower the costs of building Chrysler vehicles.  I’m not saying this will keep Chrysler alive and kicking in the next five years, but after the mismanagement of Daimler Benz for 10+ years, which BTW played a big part in Chrysler’s bankruptcy, Fiat’s handling of Chrysler is brilliant.  Instead of siphoning billions of $$ from Chrysler to Daimler, Fiat invested money into Chrysler.  Instead of making Chrysler more Germanic, Fiat wants to capitalize on making it a modern American brand.  Thumbs up to Mr. Sergio Marchionne.   Rumor is hot that Marchionne wants to show the Germans how badly they fooked up by succeeding where D-B failed.  So far so good.

Having said all that, Mercedez Benz had one of its best years last year, even though they came in second to BMW.  Guess who paid for much of Daimler’s new models?  Yup.  Chrysler money did.

[Rogue]

Chrysler to add 1,800 workers at Illinois plant for Dart, Compass and Patriot
Automotive News, 02.02.12

Chrysler Group said today it will ramp up production of the 2013 Dodge Dart quickly at a plant in Belvidere, Ill., adding more than 1,800 workers even before the first model has been built.

During a ceremony with state and local officials at the plant, Chrysler-Fiat CEO Sergio Marchionne also said the automaker will invest an additional $100 million in the plant's body shop, bringing total recent investments there to $700 million.

"It was not by chance that we chose Belvidere to make this investment and build the new Dodge Dart," Marchionne told employees. "Our decision is evidence of the faith we have in your level of commitment and your passion to deliver great products for our customers. You have been essential in our ability to author a remarkable story of recovery."

Chrysler currently employs 2,500 production workers at the Illinois factory and a nearby stamping plant. About 500 of the new employees are needed for Dart production, and the rest are required so the plant can also meet increased demand for two other vehicles, the automaker said.

The plant -- outside Chicago -- also assembles the Jeep Compass and Patriot. Production of the Dart will begin this spring. The Belvidere site produced the Dodge Caliber until December.

The plant will convert to the automaker's controversial 3/2/120 production schedule.

Under the 3/2/120 schedule, production employees work four 10-hour shifts a week with three days on and two days off as part of a six-day workweek. The rotating schedule allows Chrysler to reduce overtime costs significantly by providing an added 49 days of production a year at straight-time rates.

The hiring plans suggest Chrysler is confident about sales prospects for the Dart, a replacement for the Caliber hatchback.

U.S. sales of the Compass climbed 200 percent last year to 47,709, and demand for the Patriot rose 42 percent to 54,647 units.

A year ago, the plant was building fewer than 500 vehicles a day.

[Flyer]

You go MOPAR!  

Chrysler expects to generate revenue of around $65 billion this year, producing net income of about $1.5 billion.  Some of the anticipated gain are tied to $1.9 billion in investments in North American capacity and new product launches, as well as the ratification of a new four-year labor contract.

THIS is how "we greet a new year of high expectations with our heads down, forging ahead and focused on executing the goals we’ve set for ourselves as a company.”
Not like mean old Mr. Caterpillar, skulking out of an off-shore bank to cold cock CAW workers with a 50% pay cut and lock-out in London Ontario.
If there's anyone left who cares:
http://www.thestar.com/article/1123881--high-stakes-in-caterpillar-lockout
 ___________>P/O  

[Mr.Black]

They still sell crap though.

[Flyer]

They still sell crap though.

 
Shhhhh...
Crap sells.
Have you seen what we eat?

[MadMax96]

They still sell crap though.

+1.  Don't care how well they might be doing... I'll never own one.