Sharing the sentiment of his company that rival auto boss Ed Whitacre holds of his own, Chrysler CEO Sergio Marchionne said that the government should expect its investment in the company back. And quite possibly, along with a profit. This comes a day after Whitacre said the same about GM to a show-attending Speaker of the House, Nancy Pelosi.
Also, like GM, Chrysler would have to become a publicly traded company in order for the government to turn a profit, and Marchionne has indicated that such is a possibility for 2011. Motown rival General Motors said that it will be ready for an IPO in the second half of ’10.
Marchionne was not as adamant in his claim as Whitacre was, and warned that the opportunity for profit available at Chrysler is a lot less than at GM, but he did put particular emphasis on Chrysler’s pledge to pay back its $7 billion Treasury loan; interest included. In order of the government to turn a profit on the Chrysler investment, the company’s value would have to rise to about $60 billion.
– By: Stephen Calogera