Chrysler: 2010 the year of rebirth

2010 was a very positive year for Chrysler. Although it is still the first of the five-year plan for the company turn-around, the American group seems to be heading in the right direction.

In an email sent to Chrysler Group employees and contractors in the last month of 2010, CEO Sergio Marchionne said “This has been a foundational year for the company….Every day, pride is being restored and confidence in the future is being rekindled.”

During 2010 one of the highlights was the launch of the all-new 2011 Jeep® Grand Cherokee, a model that since then has received several awards, including the Texas Auto Writers Association “SUV of Texas,” “Four Wheeler of the Year” Award from Four Wheeler magazine, “Best Buy” in the Full-size/Luxury SUV Category by Consumers Digest magazine, and The Detroit News’ “Truck of the Year.”

But not only the Grand Cherokee was to receive new looks. In fact almost every model in all Chrysler Group’s brands portfolios was renewed. In the fourth quarter of 2010 the company unveiled 11 new of refreshed models, with 75 percent of the whole lineup receiving some renovation.

2010 was also the year of launch of the new Pentastar V-6 engine and the beginning of production of the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE), which will be fitted in the 2012 Fiat 500.

Sales have also been a positive aspect in 2010. Until November the Chrysler Group registered in the U.S. sale gains of 17 percent, when compared to the same period of 2009.

In Canada have been continuously rising over the last 12 months and, until November 2010, increased by 28%.

Mexico has been another market where sales have been increasing monthly. The international sales have increased 3.6 percent until November 2010.

In terms of finances, the Chrysler Group has exceeded its forecasts through the first three quarters of 2010. The company has posted an operating profit of $565 million, net revenues of $31.2 billion and a reduction in net loss to $453 million. The cash on hand also increased until September 2010, going from §5.9 billion at the end of 2009 to $8.2 billion. Including the $2.3 billion that remains available from the loan agreements with U.S. Treasury and Canadian and Ontario governments, the total liquidity of Chrysler Group has grown to more than $10.5 billion.

Part of this money has already got destination as Chrysler Groups has already announced that it would be investing nearly $3 billion during 2010, by adding more than 2,000 new jobs to support two additional shifts at assembly plants and additional production at the Global Engine Manufacturing Alliance (GEMA) facility in Dundee, Mich. The objective is to increase the implementation of World Class Manufacturing (WCM), which contributes to improve safety, efficiency, quality and flexibility in Chrysler plants.