Chrysler Group LLC CEO Sergio Marchionne delivered good news to investors at a Deutsche Bank conference in Detroit; “Due to better-than-expected performance, we estimate the operating profit break-even point has been lowered to about 1.5 million vehicles,” the CEO of both Chrysler and Fiat said.
Given the fact that Chrysler sold almost 1.6 million units in 2010, it stands to reason that Chrysler has turned a profit. In fact, when the company reports its numbers for Q4 2010 on January 31, it is expected to show a net profit for the quarter, and operating profit for the year. 2010 will end on a loss however, due to the high interest rates on the government loans.
Marchionne has it on his agenda however, to address the loan issue, as he is seeking to refinance the billions owed to the US and Canandian governments before taking the company public. Goldman Sachs is advising on this issue.
“From the bottom line, we expect to break even in 2011, increasing progressively to net profit of $3 billion by 2014,” Marchionne said.
– By: Stephen Calogera
Source: Detroit News