Chrysler posts first profit since bankruptcy

Posted on May 2, 2011 by Theresa Milano

The U.S.automaker Chrysler has registered a net profit of $ 116 million(78 million euros)in the first quarter,representing the first positive result of the company since bankruptcy and in contrast with the loss of $ 197 million for the same period of 2010,the company said.

The turnover of the auto giant stood at 13.124 million dollars,representing an improvement of 35% over the same period last year,thanks mainly to the successful introduction of 16 new models.

“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 company CEO, Sergio Marchionne.

During the quarter, Chrysler’s sales totaled 394,000 units,which means 18% more than a year ago,thanks to the new set of products and the improvement in the sector in the U.S. market, where the brand reached a share market of 9.2%.

In order to rescue the company,the administration of Obama  pushed Chrysler to file for bankruptcy protection and then form a partnership with Fiat because officials thought it could not survive on its own.The United States owns 8.6 percent of the company and Fiat owns about 30 percent of it.If this revival continues,this would mean a major achievement for Obama’s administration.