Chrysler, three years after its near death, managed to reach an amazing $436 million profit in the second quarter, heading towards a full-year operating profit of at least $3 billion.
“This is no time to cut corners, no time to become undisciplined in our execution, no time to forget how difficult it was to claw our way back to viability,” said Sergio Marchionne.
In 2011 Chrysler reported a profit loss of $370 million, plus $551 million paid to the government for the loans it offered back in 2009. In the second quarter the company managed to get back on the track and achieve a profit up 23% to $16.795 billion. On Tuesday, July 31st, Chrysler is expected to officially report second-quarter earnings.
In the second quarter Fiat’s global auto sales were up 20% to 582,000 units, with an increase of 24% in the US and 58% outside its core market in North America to 70,000 units. At the beginning of this month Fiat announced its intention to buy another 3.3 percentage points of Chrysler, taking its stake to 61.8%. The two companies haven’t officially announced the deal.
“They are not burning through cash anymore,” said Rebecca Lindland, analyst with IHS Global Insight. “It shows that from an operating and structural standpoint, they really have made some significant systemic improvements.