Jump to content

Analyst says Chrysler made money in March, but great challenges


NINETY EIGHT REGENCY

Recommended Posts

Analyst says Chrysler made money in March, but great challenges remain

BY GREG GARDNER

FREE PRESS BUSINESS WRITER

A European auto analyst forecasts that Chrysler came close to breaking even in the first quarter of 2010, but faces major changes if it is to survive in the longer term as a smaller player in the U.S. market.

Max Warburton praised CEO Sergio Marchionne’s cost-cutting ways, but warned that Chrysler will continue to shrink because it can’t bring new products to market fast enough to take sales away from competitors.

“We remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears,” Warburton said.

Marchionne is expected to provide the first audited report of Chrysler’s financial condition since 2007 next Wednesday. The report, which is expected to cover the period from June 10, 2009, when Chrysler emerged from Chapter 11 bankruptcy to the end of last year. It will be part of a broader five-year plan presentation for Fiat’s automotive business, which owns 20% of Chrysler.

Marchionne has repeatedly said Chrysler will break even for 2010 if it sells 1.1 million vehicles in the U.S. and 1.65 million worldwide.

But it has been the only major U.S. automaker to not increase sales in the first quarter from a year earlier. Chrysler’s U.S. sales fell 5% in the first quarter and its market share slipped from 11.2% a year earlier to 9.2%.

Unless that decline is stabilized and reversed, Warburton said, it may not be feasible to sustain the Chrysler and Dodge car brands.

“A slimming-down of Chrysler to be just Ram, Jeep and a U.S. production base for Fiat looks a realistic exit strategy to us,” he wrote in the report.

A Chrysler spokesman did not respond to a reporter’s request for a comment.

link:

http://www.freep.com/article/20100416/BUSINESS0103/100416031/1210/BUSINESS01/Analyst-Chrysler-made-money-in-March-but-obstacles-remain

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...