White House confirms Chrysler will file for bankruptcy

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http://www.autoblog.com/2010/08/31/r...through-165-d/

Report: Fiat wants to sell 50,000 500s in the U.S. through 165 dealers

by Steven J. Ewing (RSS feed) on Aug 31st 2010 at 12:44PM

Chrysler is set to debut its American-spec Fiat 500 at this year's Los Angeles Auto Show with the first examples being sold near the end of 2010. During the 2011 calendar year, Chrysler hopes to sell 50,000 of the Mini Cooper fighters, including the 500 Cabrio, which goes on sale sometime in 2011.

Built in Toluca, Mexico, the 500 will be sold through a network of 165 dealers across the United States, mostly in cities that have the largest small car markets. Will Chrysler be able to move 50,000 of the new Fiats? That's mildly ambitious, since the Mini brand only moves about 50,000 Coopers annually. Still, consider our fingers crossed.

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http://www.autoblog.com/2010/09/10/r...-to-u-s-for-1/

Report: Nardelli almost sold Chrysler to U.S. for $1

by Zach Bowman (RSS feed) on Sep 10th 2010 at 2:31PM

Even more terrifying tales of the automotive bailout are emerging from Steven Rattner's new book. CNN Money reports that, according to the text, Chrysler had an even rougher go of things than General Motors. Rattner, who served as the head of the automotive task force, writes that after congress failed to give Chrysler the $7 billion in funding that the company originally asked for, executives began to scramble to find other ways to keep the operation afloat. That includes Pentastar boss Bob Nardelli asking the United States Treasury to force General Motors to buy Chrysler. After it was determined that the vast amounts of overlap between the two companies would make a merger impossible, things got even more bizarre.

According to Rattner's book, Steve Feinberg of Chrysler parent company Cerberus Capital offered the carmaker to the treasury department for $1. The treasury thought the offer was a joke, partially because Feinberg made the suggestion to Treasury Secretary Henry Paulson during a 2:00 AM phone call. Less than a month later, President Bush signed off on $17.4 billion in TARP money for GM and Chrysler. Thanks for the tip, Ollie!

[Source: CNN Money | Image: Chip Somodevilla/Getty]

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http://www.autoblog.com/2010/09/12/f...lost-pensions/

Former Chrysler execs file class-action suit over pension losses

by Jonathon Ramsey (RSS feed) on Sep 12th 2010 at 11:07AM

More than 450 executives from Chrysler's white collar force, going all the way back to Lee Iacocca, have sued Daimler and Cerberus for gutting the value of their collective supplemental pensions to the tune of $100 million. They class action suit took the noted step of not suing Fiat-owned Chrysler, with the lead attorney saying that "Everybody involved in this suit loves that company and like everybody else wants to see it succeed."

Plaintiffs accuse Daimler and Cerberus of not adequately protecting the supplemental pensions from creditors as Chrysler's health slid from trouble to terminal. Those pensions weren't moved to the new Chrysler, and now the former execs are paying the price. Follow the jump for a press release from the lead firm handling the case.

[Source: AFP]

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http://www.caradvice.com.au/83506/fi...ive-year-plan/

Fiat/Chrysler announce five-year plan for the US
By Anthony Crawford | September 16th, 2010

Chrysler is set to bounce back from their near death experience last year, with a raft of new car launches and redesigned models over the next two years, under the control of Fiat boss, Sergio Marchionne.

During an unprecedented six-hour press conference and a closed dealer meeting, Marchionne revealed plans that he hopes will once again, bring profits back to all those in the Chrysler family.

Those plans include a revamp of the Chrysler Sebring, which is to be renamed the Chrysler 200 and said to have a improved handling, softer ride, reduced noise and an interior upgrade.

The substantial improvements should enable the car to successfully compete with the likes of the Honda Accord and Toyota Camry, which have been the buyer’s choice for some time now, due to their superior quality proposition.

Apparently, Chrysler has admitted to unacceptable quality standards over the last few years and as a result, is overhauling its manufacturing systems.

Dodge has been given a new logo and will be billed as a youthful brand, as well as more refined with a substantial quality upgrade.

2010 will see plenty of changes to the Avenger and Journey, while a new Charger is on the way too.

There’s a new version of the popular Nitro planned for 2011 and in 2012, expect a Golf-size sedan based on a Fiat chassis.

For the hard-core enthusiasts, the news is equally exciting with a green light given for a new Viper based on Fiat technology, which could mean some Ferrari parts.

As far as Jeep is concerned, there are big changes afoot over there too with more focus on two-wheel-drive soft readers and the introduction of the “trail rated’ off road segment.

Hard Core trails will remain the sole demain of the no compromise Wrangler, which will also receive a fresh look.

The Chrysler brand will go back to the future, along with its sister brand from Italy, Lancia, which will both epitomise “timeless elegance” and “style and cachet”.

The new 330C and Voyager MPV will wear Lancer livery from 2011, when the Chrysler badge will effectively cease to exist in Europe.

When it comes to the Fiat brand itself, Chrysler needs to tread carefully given the unreliable memories of the marque before pulling out of the US in 1983, despite cars such as the Fiat 124 Sport and Spider being popular in states like California.

For now at least, Fiat plans to introduce various 500 variants of the next two years, rounding off with the Abarth 500 in 2012.

Oddly though, there was no mention by either Fiat or Chrysler of Alfa Romeo, as there is no doubt that many folks in the US would like to see a return of the sports car marque.

[Ben73]

The new 2011 Jeep Grand Cherokee looks like a Nice package. I would go out and buy one in 5.7L Hemi V8 Guise if I could afford it.

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http://www.autoblog.com/2010/09/16/r...-half-of-2011/

Report: Marchionne predicts Chrysler IPO in second half of 2011

by Jonathon Ramsey (RSS feed) on Sep 16th 2010 at 3:58PM

The timeline for Chrysler's IPO is gradually coming into focus. Four months ago Fiat CEO Sergio Marchionne said he expected to Chrysler's offering to happen "probably" in 2011. Now he's narrowed that down to becoming "a second-part-of-the-year event."

The timing makes all kinds of sense: not only does Marchionne not expect a profit this year, the results of Fiat's integration with Chrysler won't begin to bear fruit until the middle of next year, after the 500 has gone on sale and had a few months to find its feet. By then, the company might also have some better news to report about 2011's finances. Frankly, we wouldn't be surprised if it didn't happen until early 2012. And speaking of the 500, when it starts rolling in, Fiat will be able to claim another five percent of Chrysler, taking its stake to 35 percent.

[Source: Automotive News – Sub. Req. | Image: Massimo Pinca/Getty]

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http://www.autoblog.com/2010/10/06/r...recast-to-17b/

Report: Fed reduces auto bailout loss forecast to $17B

by Chris Shunk (RSS feed) on Oct 6th 2010 at 2:01PM

The federal government spent roughly $86 billion in taxpayer money to bail out the auto industry. That's a lot of Monopoly money, folks, and when the industry we know and love was at its weakest point, early projections suggested that that the U.S. government and American taxpayers would never see $30 billion of that money. But as the economy slowly crawls back to life and cars and trucks are beginning to move with greater regularity, those forecasts are being adjusted downward.

A few months ago the Treasury Department proclaimed that the industry could, if everything fell just so, lose only $8 billion by the time the dust settles. We're now in October, and according to The Detroit News, the DoT is settling on a loss that looks a lot like $17 billion. That figure was revised downward from $24.3 billion due to increased optimism that the bailout of Ally Bank, the Cerberus-owned finance arm for both General Motors and Chrysler, wasn't going to be as big of a cash drain as was originally expected.

The revised auto industry loss comes out of a 200-page report that details the overall plight of the $700 billion ($475 billion has been spent to date) Troubled Asset Relief Program. The report states that the U.S. government stands to lose a grand total of $29 billion of the $475 billion spent. That $29 billion number is definitely tentative, though, because a lot of the numbers are heavily dependent on the price of stocks at the time the federal government decides to sell.

For example, at the current price of AIG shares, the government would actually book a profit of $21.9 billion. The bank bailouts are said to have produced another $16 billion in profits, while the mortgage securities buys are currently underwater to the tune of $46 billion. The $29 billion figure could go further up or down based upon the price of the initial public offerings at General Motors and Chrysler. The government put $43 billion into The General in exchange for 60.8 percent of the company's stock, and another $12 billion for a 10 percent stake in Chrysler. GM's IPO is expected to open next month, though the feds aren't expected to sell off all of its shares in the first offering. Industry watchers suggest that Chrysler's IPO could happen in 2011.

[Source: The Detroit News | Image: Mario Tama/Getty]

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http://www.autoblog.com/2010/10/22/f...e-in-chrysler/

Fiat reportedly set to raise stake in Chrysler

by Jeff Glucker (RSS feed) on Oct 22nd 2010 at 4:41PM

Sergio Marchionne, CEO of Fiat and Chrysler, has reportedly indicated that the Italian automaker is interested in raising its stake in the Auburn Hills automaker. Currently, Fiat owns 20 percent of Chrysler and it wants to raise that figure to 35 percent by the end of 2011. Fiat has had a strong third quarter, earning around $236 million.

According to the Detroit Free Press, in order to increase its ownership stake by 15 percent, Fiat has to hit three specific targets that are worth five percent apiece. The first goal is to launch the 1.4-liter MultiAir engine being built at Chrysler's plant in Dundee, Michigan. That engine is slated to go into the upcoming Fiat 500.

Second on the task list is for Chrysler to produce a car that achieves 40 miles per gallon. Marchionne believes this vehicle will enter production towards the end of 2011. It will be a compact hatchback branded as a Dodge.

The final five percent will be earned when Chrysler increases its sales outside of the US. Specifically, it will focus sales efforts to increase volume in South America. Per Marchionne, this last objective will prove the most difficult because of the way Brazil regulates its dealer networks. In fact, Fiat is looking for alternative ways to earn the final five percent stake it seeks from Chrysler.

Thirty-five percent is a hefty piece of the Chrysler pie, but much more can be made available in the not-too-distant future. Once Chrysler is able to repay both the Canadian and U.S. governments for the $8 billion in loans it received, the Italian automaker will be able to raise its stake to 51 percent.

[Source: Detroit Free Press | Image: Massimo Pinca/AP]

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http://www.autoblog.com/2010/10/25/r...shing-profits/

Rattner: GM and Chrysler will be "gushing profits"

by David Kiley (RSS feed) on Oct 25th 2010 at 4:31PM

General Motors and Chrysler LLC will lead automakers to "gushing profits" when annual U.S. sales reach 15 million vehicles, said Steven Rattner, the former head of the federal government's auto task force, on Bloomberg TV last Friday.

"This industry has been restructured to make money," Rattner said to Bloomberg. At 15 million vehicles a year, "they will be gushing profits." That 15 million level is expected to be reached at mid-decade, according to predictions by companies like Toyota and GM.

A pace of 15 million vehicles is needed "simply to accommodate new drivers and the aging of the fleet," Rattner said. "It will happen, it's only a question of when."

Rattner recently published a book about his experience titled: Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry.

Rattner also this month had to agreed to a ban from the securities industry as a result of a Federal investigation into charges he directed over $1 million in illegal kickbacks to New York State pension fund officials while he was a partner in Quadrangle Group, the post he had before being recruited by the White House.

Rattner, 58, led President Barack Obama's auto task force from February 2009 until July last year, after GM emerged from a bankruptcy backed by $50 billion in government aid.

General Motors is expected to launch its initial-public offering of stock as early as next month, while Chrysler is expected to to take itself public some time next year.

[Image: aresauburn™ | CC 2.0]

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http://www.autoblog.com/2010/10/27/c...hnology-loans/

Chrysler next to get billions in federal technology loans?

by Autoblog Staff (RSS feed) on Oct 27th 2010 at 11:32AM

Chrysler, the recently bankrupt automaker that accepted billions in government aid last year, is reportedly next in line to receive new technology loans from the U.S. Department of Energy. Ford, Tesla, and Nissan have all applied and been approved for these technology loans that come out of a $25 billion program approved by Congress back in 2007. The federal funds are meant to be used for retooling factories, making the way for production of more fuel efficient vehicles.

Chrysler's loan request totals $10 billion, nearly twice as much as the $5.7 billion it still owes the U.S. Treasury for last year's bailout. Approval of the loan is reportedly fluid, which means that the DoE has not yet established a timeline for granting the funds, but Automotive News cites sources with financial and auto industry expertise who suggest that Chrysler's bid for aid will receive a sign-off before similar loan requests made by General Motors. That's because GM's in the middle of prepping for its initial public stock offering next month, and approving its loan requests would only make matters more complicated.

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http://www.autoblog.com/2010/10/27/m...-its-home-cou/

Marchionne admits Fiat would perform better without its home country?

by Chris Shunk (RSS feed) on Oct 27th 2010 at 9:29AM

Fiat claims that it is on pace to earn two billion euros ($2.8 billion in U.S. funds) in 2010. Good news to be sure, but Reuters reports that CEO Sergio Marchionne says that the company's five factories in Italy contribute exactly zero percent of that profit due to the country's rigid unions. In fact, the CEO claims that Fiat loses money in it's Italian factories, saying "Fiat would do more if it took Italy out from its results. We cannot continue to manage operations at a loss forever."

Marchionne claims that the problem with the Italian unions is so bad that all five factories can't match the productivity of the company's one Polish plant. But the outspoken CEO isn't banking on guilt to gain concessions from organized labor; instead he's offering up $28 billion worth of investment within the country if the union becomes more flexible. For example, if the unions agree to cut back on breaks, Marchionne claims that he's willing to (eventually) pay them more for their sacrifice.

Fiat even gave a name to it's push to make the country more cost-competitive. It's called Fabbrica Italia (Factory Italy), and the aim is to bring the boot-shaped country's manufacturing competitiveness in-line with that of the country's neighbors. So far, Fiat has seen mixed success from unions, with some plants voting in the changes and others still standing in opposition.

[Source: Reuters | Image: Massimo Pinca/AP]

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http://www.autoblog.com/2010/11/08/b...auto-bailouts/

Bush defends auto bailouts

by Zach Bowman (RSS feed) on Nov 8th 2010 at 7:24PM

Former U.S. President George W. Bush is set to release his memoirs under the title Decision Points on Tuesday, November 9. The book is slated to delve into the eight years of the Bush Administration, touching on everything from the war in Iraq to the reasoning behind various economic policies. The Detroit News was able to get its hands on a pre-release copy of the text and found Bush had committed to bailing out the auto industry as early as November of 2008, despite having misgivings about government intervention in private industry and the management of both Chrysler and General Motors.

Still, the memoirs say that the move was designed to "safeguard American workers from widespread collapse."

Additionally, The Detroit News reveals that Bush finally decided to pull the trigger on the bailouts to keep Barack Obama from having to make a decision on the situation right off the bat. Bush writes that "I had to keep my successor in mind. I decided to treat him the way I would have liked to have been treated if I were in his position."

Decision Points will be released simultaneously in the U.S. and Canada in hardcopy, e-reader and audio formats.

[Source: The Detroit News | Image: Getty]

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http://www.autoblog.com/2010/11/08/c...profit-for-q3/

Chrysler reports $239 million operating profit for Q3

by Zach Bowman (RSS feed) on Nov 8th 2010 at 9:58AM

Chrysler has announced a third-quarter operating profit of $239 million thanks to a 5.2-percent increase in revenue between July and September. That put the smallest of the Big Three's revenue at $11 billion. That put the company's net loss at $82 million, an improvement from the $172 million net loss recorded in Q2. As a result, Chrysler has adjusted its 2010 financial outlook, saying that it should be able to post an annual operating profit of $700 million for 2010, besting previous estimates by around $500 million. But most importantly, Chrysler says it will generate around $500 million in positive cash flow by the end of 2010. Forecasters originally had the company suffering a negative cash flow of $1 billion.

The turnaround is largely due to a rash of new products from Chrysler. The automaker is knee-deep in a campaign to launch 16 new or significantly rehashed models in as many months, and after a long period of model stagnation, fans of the brand are beginning to respond. The company has seen sales jump by 20 percent in the third quarter in the U.S., according to Automotive News. Hit the jump for Chrysler's official press release.

[Sources: Chrysler, Automotive News | Image: AP Photo / Wilfredo Lee]

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http://www.autoblog.com/2010/11/16/r...-ahead-of-mer/

Report: Marchionne admits Fiat may sell off Ferrari ahead of merger

by Jeff Glucker (RSS feed) on Nov 16th 2010 at 9:00AM

Sergio Marchonne, CEO of Fiat and the Chrysler Group, has stated that he is looking to raise some cash ahead of the upcoming Fiat/Chrysler merger. One possible way to do this? Reduce its 90 percent ownership stake in Ferrari through an IPO. Fiat estimates that Ferrari is currently worth $3.3 billion, and offering stock in the Italian sports car manufacturer could generate some serious coin.

Earlier in 2010, Marchionne had stated a Ferrari IPO was possible but that he also wanted the automaker to revert to its traditional 90 percent ownership stake. After a five percent stake purchase from Mubadala Development company, it got the 90 percent ownership stake it was looking for yet talk of the initial public offering seems to contradict Marchionne's plans.

If the IPO does happen, we have a good idea who will be first in line with a briefcase full of hundreds.

[Source: Automotive News – sub. req. | Image: Massimo Pinca/AP]

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http://www.autoblog.com/2010/12/07/r...ncial-from-ce/

Report: Toronto-Dominion Bank may buy Chrysler Financial from Cerberus by week's end

by Zach Bowman (RSS feed) on Dec 7th 2010 at 11:01AM

According to Bloomberg, Chrysler Financial may have a new owner in the near future. Canada's Toronto-Dominion Bank may be set to make a deal with Cerberus Capital Management, which still owns the Pentastar's loan arm despite stepping away from its role as owners of Chrysler's carmaking operations. If the sale goes through, Chrysler Financial is expected to go for between $6 billion and $7 billion, which is what the entity is worth not considering liabilities. If Toronto-Dominion lays down that kind of cash, Cerberus will have effectively recouped its money on the venture, allowing the company to return some dividends to investors in the process.

The news comes courtesy of a handful of unnamed sources who say that the deal could still fall through between the Canadian investment group and Cerberus, though they also note that there are other parties interested in Chrysler Financial. Toronto-Dominion is Canada's second largest bank, and the company has been snapping up properties on U.S. soil for awhile now. In fact, the bank now has more branches in the 'Land of the Free' than it does in its home market, and Toronto-Dominion says that it expects to make around $1.6 billion from the U.S. market alone within three years.

[Source: Bloomberg]

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http://www.autoblog.com/2010/12/22/r...bank-for-6-3b/

Report: Chrysler Financial purchased by TD Bank for $6.3B

by Zach Bowman (RSS feed) on Dec 22nd 2010 at 1:59PM

Toronto Dominion Bank has officially agreed to acquire Chrysler Financial. Cerberus Capital Management, the current owner of the Pentastar's lending arm, will receive $6.3 billion from TD Bank in the deal. That figure marks a $900 million loss compared to the $7.4 billion that Cerberus paid for Chrysler financial in 2007 as part of the automaker's takeover. Since then, Cerberus has been forced to hand the reins to the federal government as part of the bailout of 2008, and analysts from The Washington Post and Reuters feel that the capital firm is simply looking to be able to return some of the money that it lost on the Chrysler adventure to investors.

Meanwhile, Toronto-Dominion Bank continues to push its way into the American market. The bank already has 1,300 branches on our shores, and the new acquisition of Chrysler Financial will make the company one of America's largest auto lenders overnight. TD Bank says that it anticipates auto lending to grow from a $700 billion business right now to over $900 billion in just three short years. With Chrysler's ever-improving stable of products, if true, that likely means that the bank will see cash start rolling through its doors in a big way. Thanks to everyone for the tips!

[Sources: The Washington Post, Reuters]

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http://www.caradvice.com.au/96701/fi...0-of-chrysler/

Fiat to buy more than 50% of Chrysler?
By Alborz Fallah | January 4th, 2011

The recent bankruptcy of the American automakers allowed interesting alliances between unlikely brands. One such example was Fiat’s 20 percent purchase of Chrysler back in 2009. Since then the Italian company has made significant contributions to restructuring the American icon and is now considering extending its holding to over 50 percent some time this year.

Fiat & Chrysler CEO, Sergio Marchionne, told journalist in Milan that a majority holding is possible but wasn’t willing to extrapolate on the likelyhood. If it is to happen, it will taken place before Chrysler’s planned initial public offering (IPO) this year.

As part of the original purchase agreement, Fiat can purchase an additional 15 percent share holding when Chrysler begins selling a American made car that is capable of returning 5.9L/100km fuel economy figures. The American company will also need to make small engines in the U.S. and ramp up its operations outside of North America for the agreement to be honoured.

Fiat, which owns Ferrari and Maserati, is also considering the idea of paying back U.S. and Canadian government loans before the 2013 deadline which will give it the option of buying an additional 16 percent ownership.

As for a complete and total merger between Fiat and Chrysler? “A legal merger is not going to change our life,” Marchionne said. Chrysler’s IPO could take place in the second half of this year.

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http://www.autoblog.com/2011/01/03/f...-ahead-of-ipo/

Fiat to increase Chrysler stake to 51% ahead of IPO?

by Zach Bowman (RSS feed) on Jan 3rd 2011 at 4:29PM

According to Automotive News, Fiat may be looking to increase its stake in Chrysler from 20 percent to 51 percent before the Pentastar goes public. If true, that would mean that Fiat intends to repay Chrysler's federal loans before their 2013 due date. Doing so would allow the Italian automaker to sink its teeth into its American property by an additional 16 percent.

Sergio Marchionne, who serves as the CEO of both Fiat and Chrysler, said that while he doesn't know for certain whether he would move to have Fiat take over a larger portion of Chrysler, it is a possibility. The executive said that such a move would provide plenty of benefits for both automakers.

Fiat itself has been undergoing fairly substantial changes outside of its tie-up with Chrysler. The company just split into two different operations, with its automotive efforts flying under one banner and its industrial work sailing under another.

[Source: Automotive News - sub. req.]

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http://www.autoblog.com/2011/01/10/f...hrysler-to-25/

Fiat increases stake in Chrysler to 25%

by Noah Joseph (RSS feed) on Jan 10th 2011 at 4:23PM

Fiat is seriously commited to rebuilding Chrysler, and to that end it's increased its stake in the Michigan-based automaker by an additional five percent.

The reshuffled ownership breakdown still leaves the United Auto Workers as the largest shareholder at 63.5%, with Fiat's stake now up to 25%, the U.S. Treasury Department retaining 9.2% and the Canadian government 2.3%.

The increased stake came with government approval as Chrysler meets certain performance parameters, in this case the production of the Fully Integrated Robotized Engine (FIRE) at its plant in Dundee, Michigan.

Fiat will have the opportunity to increase its stake by another five percent when it demonstrates growth in overseas markets, and again with the production of a 40 mpg vehicle in the United States. At that point Fiat will have had the opportunity to increase its stake to a maximum of 35%. Details in the press release after the jump.

[Source: Chrysler]

Press Release

Chrysler Group LLC Meets First of Three Performance Events; Fiat Increases Ownership to 25 Percent

January 10, 2011 , Auburn Hills, Mich. - Chrysler Group today announced that Fiat's ownership interest in the Company has increased from 20 percent to 25 percent upon the Company's achievement of the first of three performance-related milestones.

As outlined in its June 10, 2009 Operating Agreement, Chrysler Group issued an irrevocable commitment letter to the U.S. Treasury stating that the Company has received the appropriate governmental approvals and will begin commercial production of the Fully Integrated Robotized Engine (FIRE) in its Dundee, Mich., facility. As a result, Fiat's ownership interest increased automatically under the terms of the Operating Agreement.

The ownership interests of Chrysler Group's members are now:
UAW VEBA: 63.5 percent
Fiat: 25.0 percent
U.S. Treasury: 9.2 percent
Canadian Governments: 2.3 percent

The first North American application of the 1.4-liter FIRE engine with MultiAir Technology will be in the new Fiat 500, which Chrysler Group will begin to distribute soon through newly appointed dealers.

Fiat has the opportunity to further increase its ownership in Chrysler to 35 percent, in 5 percent increments, through two additional performance-related milestones. The first milestone relates to revenue and sales growth outside of the NAFTA region. The second milestone relates to commercial production in the United States of a 40-mile-per-gallon vehicle based on Fiat platform technology.

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http://www.autoblog.com/2011/01/31/c...-2010-net-los/

Chrysler posts fourth-quarter operating profit amid 2010 net loss

by Zach Bowman (RSS feed) on Jan 31st 2011 at 10:31AM

Things are looking up at Chrysler. The smallest of the American Big Three has announced that it managed to turn out a modified operating profit of $198 million for the fourth quarter of 2010. That number gave the Pentastar a modified operating profit of $763 million for the full year, even while fielding a net loss of $652 million in 2010. Modified operating profit excludes taxes, interest and pension costs.

During the fourth quarter, Chrysler saw a net loss of $199 million – the largest of the year. Even so, Chrysler says that it expects good things from 2011. The automaker has made it clear that it plans to see significantly improved figures in coming months. With an arsenal of new and refreshed models in showrooms right now and an improved buying forecast here in the states, Chrysler expects to see net profits of $200-500 million for 2011 and total revenues in the area of $55 billion.

According to Chrysler CEO Sergio Marchionne, the automaker has been unable to post a net profit thus far due to high interest payments on federal loans. Throughout last year, the company paid a total of $1.3 billion in interest, according to Automotive News. Click past the jump for the full press release.

[Sources: Chrysler, Automotive News – sub. req. | Image: Drew Phillips/AOL]

Press Release

Chrysler Group LLC Achieved $0.8 Billion in Modified Operating Profit and $1.4 Billion in Free Cash Flow in 2010, Above Recently Revised Guidance

• Net Revenues in Q4 2010 of $10.8 billion; total year 2010 Net Revenues of $41.9 billion
• Modified Operating Profit of $198 million in Q4 2010; total year 2010 Modified Operating Profit of $763 million exceeded recently revised guidance
• Net Loss of $199 million in Q4 2010; total year Net Loss was $652 million
• Cash at December 31, 2010 was $7.3 billion, bringing total available liquidity to more than $9.6 billion; Free Cash Flow for 2010 was $1.4 billion, significantly above recently revised guidance
• Company provides full-year 2011 guidance
January 31, 2011 , Auburn Hills, Mich. -
Chrysler Group LLC today issued its preliminary financial results for the fourth quarter (Q4) and total year 2010.

The Company posted a Modified Operating Profit of $198 million in Q4 2010 and $763 million for total year 2010. The Q4 2010 operating performance, in comparison to Q3 2010, was driven primarily by improved mix and pricing, industrial efficiencies and improved quality, more than offset by lower volumes, increased advertising investment and higher launch costs.

Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, "As Chrysler Group's brand displays at the Detroit auto show confirmed, the Company has lived up to its promise to launch 16 all-new or significantly refreshed vehicles in the past 12 months. All of these vehicles bear testimony to Chrysler's rebirth. Given the positive comments we have received to date, it can safely be said that what Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations.

"However, our job is not yet done. We have a lot of work ahead to fulfill our five-year business plan objectives," said Marchionne.

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http://www.autoblog.com/2011/02/18/r...inst-u-s-trea/

Report: 64 axed Chrysler franchisees file suit against U.S. Treasury

by Jeff Glucker (RSS feed) on Feb 18th 2011 at 9:57AM

Back in June of 2009, Chrysler terminated relationships with 789 dealerships in an effort to cut its dealer network down by 25 percent. A few of those dealerships didn't think too highly of the move, which was orchestrated in part by the federal government. As a result, 64 former Chrysler franchisees have reportedly filed a suit against the United States Treasury and are seeking at least $130 million in damages.

Was the move to terminate these dealerships a violation of the U.S. Constitution? According to the lawsuit, the automotive task force violated the Fifth Amendment, which essentially states that property cannot be taken away and used for public purposes without adequate compensation.

[Source: Automotive News – sub. req. | Image: Drew Phillips/AOL]

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http://www.autoblog.com/2011/04/04/r...ks-to-bankrup/

Report: Chrysler to have short 2011 model year thanks to bankruptcy

by Chris Shunk (RSS feed) on Apr 4th 2011 at 6:41PM

When Chrysler entered bankruptcy protection, its product lineup was decidedly barren. Team Pentastar has addressed that issue in the months since it sought government protection, and the fruits of all that labor have begun to pay off with the launch of 16 new and dramatically refreshed vehicles for 2011.

New products like the 2011 Chrysler 300 and the Jeep Grand Cherokee have no doubt helped improve Chrysler's portfolio, but AutoWeek reports that the sheer scope of the overhaul may have truncated the 2011 model year. Many of the 2011 models in dealerships now didn't arrive until the first quarter of 2011, while others, like the 300 and Dodge Durango are just now trickling into showroom floors across America.

The late roll-out of 2011 models won't be repeated for 2012, as Chrysler spokesperson Ralph Kisiel reportedly told AW "most of our 2012s go into production during the month of July." Dealers will begin ordering 2012 models as early as May.

Chrysler's shortened run of 2011 models isn't exactly normal, but we're guessing that it won't matter much to dealers. After all, if 2012 models are arriving this summer, then the 2011s will just be getting in the way.

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http://www.autoblog.com/2011/04/06/r...to-30-percent/

Report: Fiat to up stake in Chrysler to 30 percent

by Chris Shunk (RSS feed) on Apr 6th 2011 at 11:32AM

Fiat currently owns 25 percent of Chrysler, but that stake will reportedly jump to 30 percent in the next couple weeks. Automotive News reports that the Italian automaker is weeks away from satisfying additional requirements needed to bump the ownership stake by another five percent.

Unnamed sources claim that Fiat has already met a requirement that states that Chrysler receives $1.5 billion of its revenue outside of North America. The next step is to offer Chrysler vehicles to 90 percent of Fiat's Latin American dealers. Fiat will reportedly meet that goal by rebadging Chrysler vehicles as Fiats at Latin American dealerships. One vehicle that will reportedly receive the rebadge treatment is the Dodge Journey, which will be built in Mexico and renamed the Fiat Freemont. Fiat currently holds the largest share of the emerging Brazil market, with a substantial 22.3 percent share.

Fiat will receive another five percent of Chrysler by building a Fiat-based product in the U.S. that hits 40 miles per gallon or better. If Fiat wants to increase its share to an absolute majority of 51 percent, the automaker will need to fork over $1.14 billion by the end of the year. If the automaker waits until 2012, that number will jump to $1.37 billion.

[Source: Automotive News – sub. req.]

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http://www.autoblog.com/2011/04/12/r...nership-to-30/

Report: Fiat raises Chrysler ownership to 30%

by Chris Shunk (RSS feed) on Apr 12th 2011 at 10:00AM

Last week ,we told you that Fiat had plans to increase its stake in Chrysler within the next couple of weeks, and the automaker is apparently running ahead of schedule. The Detroit News reports that the Italian concern has officially purchased an additional five percent of the Auburn Hills, MI-based automaker, bringing the total to 30 percent. It's the second ownership increase for Fiat in 2011, as the automaker only announced that it was increasing its stake to 25 percent in January.

The second five percent comes after met a condition stipulating that Fiat sell a Chrysler product in 90 percent of dealerships in Brazil while also achieving $1.5 billion in revenue outside of North America. The automaker reportedly struggled to reach an agreement with dealers in Brazil to sell Chrysler-badged vehicles, so a second stipulation was rewritten to account for Chrysler vehicles re-badged as a Fiat. That vehicle is the Fiat Freemont shown above, which is essentially a Dodge Journey with a Fiat badge.

The Detroit News says Fiat likely won't hit its final bogey of achieving 35 percent ownership until the fourth quarter, when a Fiat-based Dodge hits the market. That vehicle will need to hit 40 miles per gallon in highway driving, which suggests the vehicle may be based on the Fiat 500.

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http://www.autoblog.com/2011/04/28/c...ernment-loans/

Chrysler announces plan to repay government loans

by Noah Joseph (RSS feed) on Apr 28th 2011 at 9:01AM

Remember a few months back when Chrysler/Fiat CEO Sergio Marchionne complained about the terms of the loans received from the government? "Shyster loans" is what he deemed them, a term for which he later had to apologize. But the answer was clear: if Marchionne and his compatriots don't like the terms of the loans offered from the public coffers, they were free to pay them back and refinance. And according to a statement released today from Chrysler headquarters in Auburn Hills, Michigan, that's precisely what they plan to do. And do soon, apparently.

The statement declares that Chrysler will pay back 100-percent of the loans taken out from the U.S. federal government, the Canadian federal government and the Ontario provincial government, sometime in the second quarter of 2011. That's the quarter we're currently in, by the way, meaning that if Chrysler sticks to the plan, the governments will be fully repaid by the end of June.

Of course, Chrysler hasn't recuperated all those funds from their revenues. Not just yet, anyway. Part of the money is coming from the increased shares which Fiat has bought in Chrysler, while the rest is coming from new (presumably privately secured) loans and debt securities that do not require registration under the Securities Act, which should help Chrysler refinance its debts more easily. Details in the press release after the jump.

[Source: Chrysler]

Press Release
Chrysler Group LLC Announces Refinancing Transaction

April 28, 2011 , Auburn Hills, Mich. - Chrysler Group LLC ("Chrysler Group") announced today that it intends, subject to market and other conditions, to repay in full the outstanding obligations under the loans provided to Chrysler Group by the U.S. Department of the Treasury and the Canadian federal and Ontario governments. Chrysler Group intends to complete the repayment during the second quarter of 2011 from proceeds of a new term loan facility and newly issued debt securities to be offered and sold to institutional investors in a private offering exempt from registration under the U.S. Securities Act of 1933.

Chrysler Group intends to use the net proceeds of the term loan and the offering, together with the proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The completion of the offering, the credit facilities and the equity investment by Fiat under its call option are expected to occur concurrently.

The debt securities will be offered and sold in reliance on an exemption from registration under the Securities Act. The debt securities have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Forward-Looking Statements

This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project" and "should" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties including market conditions and the price and market for securities to be offered and other risks relating Chrysler Group's business and industry, including, but not limited to: the effective implementation of the Chrysler Group LLC 2010 – 2014 Business Plan outlined on November 4, 2009, including successful vehicle launches; industry SAAR levels; continued economic weakness, especially in North America, including continued high unemployment levels and limited available financing for our dealers and consumers; introduction of competing products and competitive pressures with may limit our ability to reduce sales incentives; and our ability to realize benefits from our industrial alliance with Fiat. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as the date on which it is made.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat, produces Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group's culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat's complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

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http://www.autoblog.com/2011/05/02/c...ce-bankruptcy/

Chrysler posts $115 million profit, first since bankruptcy

by Chris Shunk (RSS feed) on May 2nd 2011 at 9:28AM

Chrysler has announced a profit of $116 million for the first quarter of 2011, the company's first profit since exiting bankruptcy. This came from $13.1 billion in revenue, which represents a 35 percent increase compared to Q1 2010. Profit from operations was up, as well, as Chrysler managed to earn $477 million, more than tripling the positive cash flow of Q1 2010. Sales were up 18 percent on the quarter to 394,000 vehicles, and the automaker cites its 16 new or refreshed vehicles as reasons for the increase in revenue.

Equally exciting news comes in the form of extra security. Chrysler announced that cash reserves now total $9.9 billion, while available United States Treasury and Canadian government loans bring total cash available to $12.1 billion. Team Pentastar did pony up $348 million in interest payments for its government loans in the quarter. The Auburn Hills, Michigan-based automaker is hoping to cut that number down in future quarters by paying off government loans with bank loans with smaller interest rates.

The quarterly profit has led to many smiles at Chrysler headquarters, and CEO Sergio Marchionne is one of them. "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." Hit the jump to read over the Chrysler press release.

[Source: Chrysler | Image: Bill Pugliano/Getty]

PRESS RELEASE

Chrysler Group LLC Achieved Net Income of $116 Million in First Quarter 2011; First Quarterly Net Income Since Company Began Operations in June 2009

Net Income totaled $116 million in Q1 2011 compared to a net loss of $197 million in Q1 2010
Modified Operating Profit totaled $477 million in Q1 2011, up from $143 million in Q1 2010
Net Revenues in Q1 2011 were $13.1 billion, up 35 percent from $9.7 billion in Q1 2010
Cash at March 31, 2011, was $9.9 billion, up $2.5 billion from December 31, 2010

May 2, 2011 , Auburn Hills, Mich. - Chrysler Group LLC today announced its preliminary financial results for the first quarter (Q1) 2011, reporting that it achieved its first quarterly net income since the Company began operations in June 2009.

Net Income in Q1 2011 was $116 million compared to a net loss of $197 million in Q1 2010.

"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," said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. "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.

"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," added Marchionne.

Please see the attached files on the right for the full news release and presentation.

[Gobes32]

Would I be right in assuming Chrysler is in better shape than GM?

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http://www.autoblog.com/2011/05/19/c...-by-next-week/

Report: Chrysler repaying all $7.5B in government loans by next week

by Jeff Glucker (RSS feed) on May 19th 2011 at 10:58AM

Paying off debt is a dream shared by most Americans, however, most of them aren't staring down $7.5 billion that's owed to the United States and Canadian governments. Chrysler accountants currently see that on the balance sheet, and we imagine that figure looks rather daunting. Lucky for them, Chrysler is set to pay it back. All of it.

Chrysler is preparing to announce details of a $3.5 billion bond offering. Those funds, along with $1.3 billion in cash from Fiat and a $2.5 billion term loan, will be used to pay back the two government loans.

Fiat has previously expressed a desire to own a larger stake in Chrysler, and paying down this debt is the bridge it needs to cross to make that happen. Right now, Fiat owns 46 percent of the American automaker, but rumor has it that the Italians want 51 percent by year's end, and possibly as much as 70 percent at some point in the near future. For now, however, Fiat is showing that it's dedicated to returning Chrysler to a position of success.
[Source: The Detroit Bureau, Automotive News ? sub. req.]

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http://www.caradvice.com.au/120135/c...nt-debt-today/

Chrysler to repay US government debt today
By Brett Davis | May 24th, 2011

Fiat and Chrysler boss, Sergio Marchionne, has announced plans to pay off Chrysler’s remaining US government debt, allowing Fiat to increase its stake in the American brand from 30 to 46 percent.

According to a US Securities and Exchange Commission filing, Chrysler owes the US Government $7.53 billion. Chrysler recently raised $7.5 billion in various loans, a revolving credit line and junk bonds, which will allow the company to pay off the remaining debt.

Mr Marchionne confirmed the plans at a recent Fiat dealership opening, saying,

“Tomorrow is payoff day. Chrysler will again regain its independence.”

Paying off the debt will allow Fiat to purchase a further 16 percent stake in Chrysler, giving Fiat more control over the company. It will also allow Chrysler to profit up to $300 million a year extra as it won’t have to pay interest on the government loan.

Mr Marchionne said he hoped to acquire a further five percent stake in Chrysler by the end of the year, tipping ownership over the 50 percent mark. As a part of the US contract, Fiat could potentially own up to 76 percent of Chrysler by passing more criteria and buying shares from United Auto Workers union.

The payoff will take place sometime today, US time.

[Gobes32]

What a remarkable turnaround. Obviously Fiat see value in their acquisition. Interesting times ahead.