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.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →