Nov. 4, 2009, is a big day in Chrysler Group history. That’s the day CEO Sergio Marchionne (pictured below) and other group execs laid out a five-year plan for the company and the vehicle brands.
During the presidential visit to one of our Kokomo, Ind.,
facilities in November, Marchionne told a reporter, "We're a long way
from fully achieving our plan. We're at step one of a five-year
plan."
It is a long process – but Chrysler Group is headed in the
right direction.
As Marchionne said an email to Chrysler Group employees and
contractors this month, “This has been a foundational year
for the company….Every day, pride is being restored and
confidence in the future is being rekindled.”
That’s true not only within the company but outside as well.
Many people in the various online communities we’re in are
rooting for Chrysler Group to succeed. We hear you and very much
appreciate it.
So, with 2011 sprouting in a few days, let’s take a look back
at what came to fruition in 2010:
Products
In May, the 2011 Jeep® Grand Cherokee rolled off the line at
Jefferson North Assembly Plant (Detroit). Since then, the Grand
Cherokee has earned numerous
awards, including the Texas Auto Writers Association “SUV
of Texas,” “Four Wheeler of the Year” Award from
Four Wheeler magazine, “Best Buy” in the
Full-size/Luxury SUV Category by Consumers Digest magazine, and The
Detroit News’ “Truck of the Year.”
After the Grand Cherokee, our brands continued the momentum to
replace or refresh 75 percent of their product portfolio –
with 11 launches in the fourth quarter.
The new Pentastar V-6 engine also launched – and earned its
share of recognition.
And, Chrysler Group has begun production on the 1.4-liter, 16-valve
Fully Integrated Robotized Engine (FIRE), which is set to launch in
2012 Fiat 500.
Sales
In the U.S., through the end of November, Chrysler Group has eight
consecutive months of year-over-year sales
gains, and total 2010 sales (again, through the end of
November) increased by 17 percent compared with 2009.
Chrysler Canada has had 12 consecutive months of sales growth, and
grew total 2010 sales by 28 percent through the end of
November.
Since June, sales in Mexico have been up every single month, and
international sales increased 3.6 percent over the period on a
year-to-year basis.
Finances
Chrysler Group exceeded its forecasts through the first three
quarters of 2010. We posted an operating profit of $565
million, net revenues of $31.2 billion and a reduction in net loss
to $453 million. Cash on hand was increased to more than $8.2
billion at the end of September, up from $5.9 billion at the end of
2009, which brings total available liquidity to more than $10.5
billion, including $2.3 billion that remains available to draw
under our loan agreements with U.S. Treasury and Canadian and
Ontario governments.
Company management is still considering an initial public offering
in the second half of 2011 – if market conditions are
favorable.
Investments
Chrysler Group announced nearly $3 billion in total investments
during 2010. This included adding more than 2,000 new jobs to
support two additional shifts at assembly plants and additional
production at our Global Engine Manufacturing Alliance (GEMA) facility in Dundee, Mich. (For more
on Chrysler Group investments, see this earlier post.)
Manufacturing
The implementation of World Class Manufacturing (WCM) is playing a
key role in improving safety, efficiency, quality and flexibility
in Chrysler plants. (We’re working on a post with data on
the impact of WCM. Stay tuned.)
Dealers
The 2010
Dealer Announcement Show in September attracted more than 2,400
dealers from around the world. In November, we announced the
selection of 130 U.S. dealers and 58 Canadian dealers to represent
the Fiat brand in its return to North America.
While Year 1 looks good, there are four more to go to finish off
the plan – and continue beyond.
