Chrysler achieves first net profit since 2009 bankruptcy

Chrysler Group LLC has reported that it has turned a first quarter 2011 net income of $116 million; the first time the company has achieved a profit since its re-organization in June 2009.

The company has attributed is success to the positive reception of its 16 new or refreshed products, which resulted in increased volumes and positive pricing and mix.  The increase in cash has also allowed Chrysler to reduce its Net Industrial Debt to $3.4 billion, down $2.4 billion from December 31 2010. This debt should only continue to dissolve, as Chrysler plans on repaying the loans it has received from the US and Canadian governments over the coming months and years.      

Chief Executive Officer of Chrysler Group LLC, Sergio Marchionne, said: “Chrysler Group’s improved sales and financial performance in the first quarter show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers. These results are a testament to the hard work and dedication of our employees, suppliers and dealers, all of whom are helping Chrysler create a new corporate culture built on the quality of our products and processes, and simple, sound management principles.

He added: “We remain focused on delivering great products to our customers and continuing to achieve the sales and financial targets outlined in our 2010-2014 business plan.”

This now makes Chrysler the last of the “Big 3” to ‘get back in the black’ after the 2009 global financial crisis savaged the American auto industry.