Marchionne to meet Michigan congressional delegation, says Chrysler will consider IPO soon

Chrysler CEO Sergio Marchionne will meet with Michigan’s congressional delegation on Thursday in his second trip with the members since taking the leading roll at the company.

“Mr. Marchionne will meet with Michigan congressional leaders to provide them with an update on the progress of the company,” said Shawn Morgan, a Chrysler spokeswoman.

Marchionne will head to the delegation with good news as he said yesterday that the Auburn Hills automaker’s board will consider an initial public stock offering after reporting an operating profit of $143 million for the first quarter.

“This is an issue the board will look at very closely for the remainder of 2010,” Marchionne said on a conference call yesterday morning. “The fact we’ve gotten this far would suggest there’s a strengthening base for looking at an IPO in a much shorter time frame than most people would expect.”

Marchionne attributed the operating profit to many factors including: “price discipline, rigorous inventory management” and a strong schedule of new product launches.

“If we can make money at this level, it’s a good indication that the automaker should continue to be profitable for the rest of the year,” he said.

– By: Omar Rana

Source: Automotive News (Subscription Required), Detroit News