AllAboutPrius.com
GreenCarReports.com
AllCarsElectric.com
AllSmallCars.com
HondaInsightReviews.com
ChevyTruckReviews.com
PickupConnection.com
GMCReports.com
FordF150Reviews.com
MotorAuthority.com
LuxuryCarReport.com
AudiReports.com
BenzConnection.com
LexusReports.com
MINICooperReviews.com
BMWMonitor.com
PorscheReports.com
RangeRoverReviews.com
LotusConnection.com
FerrariReports.com
AllMinivans.com
FamilyCarGuide.com
VolvoReports.com
FordReports.com
ToyotaMonitor.com
HondaReports.com
ChevroletReports.com
VolkswagenReviews.com
AcuraRatings.com
NissanReports.com
KiaReports.com
CadillacReports.com
MustangBlog.com
CamaroBlog.com
ChallengerBlog.com
Forums
RSS
Dealers
Viknesh Vijayenthiran
The recently announced alliance with Fiat notwithstanding, Chrysler's current position in the market is regarded as precarious by buyers and analysts alike. New CEO Sergio Marchionne is more optimistic, however, stating that Chrysler will be profitable within the next two years.
Early next month Marchionne will divulge Chrysler’s five-year business plan, which he has revealed will include plans for a new initial public offering of stock as early as 2011. The plan will also lay out the schedule for Chrysler’s quarterly financial statements announcements, which the company now has to make because of its public ownership. Under the control of former parent Cerberus Capital Management Chrysler was listed as a private company so had no obligation to release financial results.
Marchionne isn’t the only one predicting profits for Chrysler. The financial sector seems to agree, with analyst Adam Jonas of Morgan Stanley predicting an operating profit of $841 million in 2010 and a net loss for the year of $169 million. For 2011 Jonas is predicting an operating profit of $2.48 billion and net income of $952 million--unimaginable numbers just a few months ago.
The tie-up with Fiat is expected to yield a bevy of efficient and attractive new products for Chrysler, but that will take at least two years to get up to full speed. In the mean time, Chrysler will have to forge ahead with its own restructuring and product plan.
Chrysler headquartersEnlarge Photo The recently announced alliance with Fiat notwithstanding, Chrysler's current position in the market is regarded as precarious by buyers and analysts alike. New CEO Sergio Marchionne is more optimistic, however, stating that Chrysler will be profitable within the next two years. Early next month Marchionne will divulge Chrysler’s five-year business plan, which he has revealed will include plans for a new initial public offering of stock as early as 2011. The plan will also lay out the schedule for Chrysler’s quarterly financial statements announcements, which the company now has to make because of its public ownership. Under the control of former parent Cerberus Capital Management Chrysler was listed as a private company so had no obligation to release financial results. Marchionne isn’t the only one predicting profits for Chrysler. The financial sector seems to agree, with analyst Adam Jonas of Morgan Stanley predicting an operating profit of $841 million in 2010 and a net loss for the year of $169 million. For 2011 Jonas is predicting an operating profit of $2.48 billion and net income of $952 million--unimaginable numbers just a few months ago. The tie-up with Fiat is expected to yield a bevy of efficient and attractive new products for Chrysler, but that will take at least two years to get up to full speed. In the mean time, Chrysler will have to forge ahead with its own restructuring and product plan. [The Detroit News]
Responses (2 total)
By GILBERT YSAIS #1, Posted: 10/12/2009
MR. MARCHIONE.....
WHILE YOU ARE WAITING FOR TWO-YEAR FOR NEW PRODUCTS TO TURN A PRODUCT.......WHAT DO YOU DO WITH THOUSANDS OF PEOPLE WORKING AT THE CHRYSLER HEADQUARTERS AT ASHBURN HILLS????????
By Bill Burke #2, Posted: 10/12/2009
Gilbert, There will not be a two year wait for new products with the new Jeep Cherokee, Chrysler 300 and Dodge Charger only months away. Many other offerings will be refreshed in less than 18 months and an electric vehicle is also on the way. Chrysler has already begun hiring back personel or holding on to others. Profitabiliy is predicted and I will be one of the first buying Chrysler stock when the offering is made.
Post a comment