Chrysler Expects to Break Even in 2010
Chrysler, which began its path into bankruptcy a year ago, expects to break even this year, its chief executive, Sergio Marchionne, said on Tuesday, The New York Times reported.
Marchionne, speaking at an automotive forum on the eve of the New York International Auto Show, said the automaker had slightly more than $5 billion in cash on hand.
That is about half the amount Chrysler had in 2007, after Cerberus Capital Management acquired it from Daimler of Germany. A subsequent slump in car sales led to a financial crisis that prompted Chrysler, and General Motors, to seek federal bailouts.
One year ago Tuesday, Chrysler’s plan to restructure independently was rejected by the Obama administration, beginning the company’s journey into Chapter 11.
Chrysler entered bankruptcy on May 1, and emerged about six weeks later, with federal assistance. Fiat, which Marchionne also runs, took management control of the company, which received about $15 billion, in all, from the Bush and Obama administrations.
In a speech briefly interrupted by protesting members of the International Brotherhood of Teamsters, as well as the announcement of a hotel fire alarm test, Marchionne said Chrysler expected to break even this year, although he declined to predict whether it could earn a profit.
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