Chrysler Profits: A Victory For Downsizing

Cars and Drivers

Published: May 2, 2011 7:31 am

Chrysler made money in the first quarter, a victory for the downsizing of the US car companies and modest vindication of the taxpayer bailouts of the auto industry. The Treasury will still lose money on GM and Chrysler, and no one will ever know what would have happened if they were auctioned off in pieces to the Japanese and European manufacturers. Net income totaled $116 million in Q1 2011 compared to a net loss of $197 million in Q1 2010 and net revenues in Q1 2011 were $13.1 billion, up 35 percent from $9.7 billion in Q1 2010.

Chrysler obviously has benefited from the return of car and light truck buyers. That will help the No.3 US car company for now. The fact that it has no real presence in Latin America or China will hurt it over time.

Chrysler still has a chance to take market share from other companies that sell cars in the US. It has just launched a retooled model line for its flagship brand, Dodge, and Jeep. So, headed toward an IPO, Chrysler has become like any other car company. It has to gamble people will like its products

Douglas A. McIntyre

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!