How Do You Say “Ha!” in Italian: Chrysler Posts Q1 Profit
Sergio Marchionne, CEO of Chrysler Group, must be feeling pretty good this morning, as the company announced that it ended the first quarter of 2010 with an operating profit of $143-million.
While the corporation hasn’t been doing as well sale-wise as its cross-town rivals, it certainly vindicates Marchionne’s approach.
He stated, “This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 target we have set for ourselves are achievable. We are also generating cash to finance the investments being made in our product portfolio and brand repositioning.”
This can be broken down into saying:
- To customers: Don’t worry about buying a Chrysler. We’re sticking around.
- To dealers: Hang on, there’s more new product coming.
- To suppliers: You’ll be paid. Really.
Marchionne went on to note, “There has already been an uptick in customer traffic in our dealer ships in Q1”—particularly in Canada, as they boosted market share there by 2.1%, to 13.7%--“and we are confident that Chrysler sales will continue to increase as we launch new products in the second quarter, beginning with the all-new 2011 Jeep Grand Cherokee. Moreover, later this year Chrysler will launch 16 all-new or refreshed product including the all-new Chrysler 300, Dodge Charger, E-CUV, the iconic Fiat 500, and the Sebring replacement.”
Going forward, the targets for 2010 that were announced last fall—
- Net revenues of $40-45 billion
- Operating profit of $0.0-0.2 billion
- Modified EBITDA of $2.5-2.7 billion
- Negative free cash flow of $1.0 billion
--are on track.
Bravo! (That’s the same in English and Italian.)
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