Chrysler Keeps Revving Higher
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Chrysler reported today that its first quarter net income was $473 million, 300 percent higher than it was a year ago. These are impressive numbers considering it was practically bankrupt four years ago, prior to receiving a total of $12.5 billion dollars from the US and Canadian governments.
Since then, Chrysler has had to reboot, so to speak. In 2011, Chrysler unveiled a gritty new ad campaign, featured rapper Eminem with the tag line "Imported From Detroit". Fittingly, the company announced an 80 percent increase in international sales, which totaled 67,000. 19,000 of these sales came from Chrysler Group rather than Fiat, so it is likely some cars were actually imported from Detroit.
Worldwide vehicle sales for the quarter totaled 523,000, up 33 percent. The bulk of these sales came from the US market, which grew 9 percent, giving Chrysler a total market share of 11.2 percent.
Chrysler attributes the gains to increased consumer confidence in their vehicles, particularly the Chrysler 300, which was recently named one of Kelley Blue Book’s "10 Best Family Cars of 2012".
Chrysler is upbeat about the rest of 2012. Company guidance predicts 1.5B in net income on 65b in total revenue, and worldwide vehicle shipments are expected to total up to 2.4 million.
With volumes falling in line, Chrysler is also focused on margins. According to Truecar.com, Chrysler is making 5 percent more per vehicle sold in the US than it did a year ago.
Chrysler's next big challenge is launching the Dodge Dart, a car CEO Sergio Marchionne claims melds Fiat and Chryslers engineering and styling strengths. We'll see how it goes.
For now Chrysler seems to be on track, but a company with such a long history government bailouts should take nothing for granted.
Since then, Chrysler has had to reboot, so to speak. In 2011, Chrysler unveiled a gritty new ad campaign, featured rapper Eminem with the tag line "Imported From Detroit". Fittingly, the company announced an 80 percent increase in international sales, which totaled 67,000. 19,000 of these sales came from Chrysler Group rather than Fiat, so it is likely some cars were actually imported from Detroit.
Worldwide vehicle sales for the quarter totaled 523,000, up 33 percent. The bulk of these sales came from the US market, which grew 9 percent, giving Chrysler a total market share of 11.2 percent.
Chrysler attributes the gains to increased consumer confidence in their vehicles, particularly the Chrysler 300, which was recently named one of Kelley Blue Book’s "10 Best Family Cars of 2012".
Chrysler is upbeat about the rest of 2012. Company guidance predicts 1.5B in net income on 65b in total revenue, and worldwide vehicle shipments are expected to total up to 2.4 million.
With volumes falling in line, Chrysler is also focused on margins. According to Truecar.com, Chrysler is making 5 percent more per vehicle sold in the US than it did a year ago.
Chrysler's next big challenge is launching the Dodge Dart, a car CEO Sergio Marchionne claims melds Fiat and Chryslers engineering and styling strengths. We'll see how it goes.
For now Chrysler seems to be on track, but a company with such a long history government bailouts should take nothing for granted.
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