Monday, January 31, 2011

Chrysler accelerates towards profitability

The automaker Chrysler has reduced its losses in 2010 and anticipates a return to profitability next year.
In the fourth quarter, Chrysler reported a net loss of 199 million U.S. dollars. In the same period a year earlier, the manufacturer recorded a loss of $ 2.7 billion.
For all of fiscal 2010, losses at Chrysler totaled $ 652 million, against $ 8 billion in 2009.
Chrysler put on a dozen new models and redesigned vehicles to enhance its sales. The manufacturer's recovery has slowed from last quarter. Revenues fell 2% while sales worldwide were down 7%.
Chrysler, which is controlled by Italy's Fiat, still expects a net profit of 200 million to 500 million U.S. dollars in 2011.
The chief executive of Chrysler, Sergio Marchionne, said that Chrysler will go public when the company has recorded profits for two consecutive quarters. An IPO could be envisaged at the end of 2011.
The U.S. government has made $ 12.5 billion for Chrysler to enable it to face bankruptcy in 2009. Washington now owns 10% stake in the company.
Chrysler must pay $ 5.8 billion at the White House, which hopes to recover the rest of her set at a possible IPO of the manufacturer.

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