Chrysler Stops Hemorrhaging Money
And they could break even this year. So while they won’t be paying back the government loans as soon as GM, they’re still on track to meet their obligations in the future.
Chrysler, which emerged from bankruptcy last June, reported Wednesday that it lost $3.8 billion through the end of the year but expects its operations to break even in 2010. […]
For the first quarter of 2009, the company reported a net loss of $197 million, suggesting that it has largely curtailed its losses from last year. The automaker highlighted figures showing that the core of its business, the selling of cars and trucks, is sound. It had an operating profit of $143 million in the first quarter — a significant improvement over the end of 2009, when it lost $267 million on its operations.
Chrysler also said its U.S. market share, which had plummeted to as little as 8 percent, rose to 9.1 percent in the first quarter. Chrysler attributed the first-quarter results to cost cutting and sales of the new Ram Heavy Duty pickup truck. Worldwide vehicle sales were 334,000 units for the first quarter of 2010, up from 318,000 in the last quarter of 2009.
So, a lot of encouraging news here and, as I’ve said many times, this was never an ideal situation…but it was a necessary one. We couldn’t allow an economic collapse to put our American-owned manufacturing base out of business.
More as it develops…