Chrysler's accounts looking up
The Pentastar brand lost US $3.8 billion last year, but the tide is turningChrysler has released details of its financial standing for the calendar year 2009 and the first quarter of 2010. In light of the economic downturn that plagued the US and global markets during the so-called Global Financial Crisis, the company's $3.8 billion net loss for 2009 came as no surprise, but in a positive sign for the company, the major part of that sum was described as a one-off "non-cash charge of $2051 million relating to the UAW Retiree Medical Benefits Trust (VEBA)".
"The steady progression of our financial results from June through December 2009 shows that Chrysler is on track to meet the ambitious, yet achievable goals announced in November," Chief Executive Officer of Chrysler Group LLC, Sergio Marchionne was quoted as saying in a press release.
"As a result of improving trading margins, operational efficiencies and rigorous cost discipline, we continued to strengthen our cash position through 2009."
For the quarter ended March 31 of this year, the net loss was US $197 million, but Marchionne responded to this news in a positive way, via a memo to Chrysler staff.
"The most encouraging news is that Chrysler ended the first quarter of 2010 with a positive operating profit of $143 million -- tangible evidence that we are achieving the targets that we set for ourselves and announced publicly last November -- and liquidity of $9.8 billion.
"The operating profit marked an improvement of $410 million compared to the fourth quarter of 2009."
Marchionne comes to the job through his role heading up Fiat. The financial results posted mark the first financial reporting for the iconic American brand since Fiat became involved with Chrysler in June of last year, when the company began operating as 'Chrysler Group'.
"While we still have a long way to go to rebuild our business, it is important to note that we are on track to achieve our 2010 targets. Today's announcements are important milestones and a credit to the efforts of the entire organisation," Marchionne concluded.
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