Sergio Marchionne, the man credited with reviving Italian manufacturer Fiat, looks to have worked his magic again by dragging loss-making US manufacturer Chrysler into profitability.
Chrysler, which has struggled with losses in recent years, recorded an operating profit of $239 million in the third quarter of 2010 and net loss has been reduced from $172 million to just $84 million in Q3 compared to Q2.
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"A year ago, Chrysler Group laid out clear and concise five year financial goals and after three consecutive quarters of better than forecasted results, we are not only living up to our commitments but we are also exceeding our 2010 financial objectives," said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC.
After overseeing the sale of Chrysler to the Fiat Group 16 months ago, Marchionne introduced a product offensive of 16 models, including the new 2011 Jeep Grand Cherokee and the introduction of the Fiat 500 city car into the US market.
As a result, Chrysler’s market share has grown from eight per cent to 9.6 per cent in Q3 2010 compared to the same period in 2009.
Marchionne hopes Fiat and Chrysler will be able to produce six million models annually by 2014, giving them a platform to compete in the global automotive market, while also improving the quality and technology in its cars.
"We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee. Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive auto maker," he concluded.
Since becoming CEO of Fiat Group in 2004, Marchionne turned around the company after it had recorded losses of $12bn over five years and was heading towards insolvency.
New models such as the Fiat 500 helped to improve profitability and to compete on a global scale, Marchionne pursued an aggressive policy of alliances and buyouts, resulting in the sale of Chrysler.
It now looks like the US firm is heading back into profitability with five consecutive quarters of increased market share and ever-decreasing net losses.