A Marchionne Miracle! Chrysler Generates Cash

Bertel Schmitt
by Bertel Schmitt

Last Friday, Chrysler celebrated the first anniversary of its miraculous emergence from bankruptcy. What did the employees get in observance of this occasion? A watch? A bonus?

They received an email.

From Sergio Marchionne himself. In the email (a copy of which had been forwarded to Reuters), Sergio assures the worker bees that Chrysler is generating the cash needed to rebuild its product portfolio, that sales continue to gain momentum, and that the company’s alliance with Fiat is “taking root” by cutting costs and expanding revenue from outside of North America.

Cash is key to Marchionne’s ambitious five-year turnaround plan for Chrysler. Fiat could use some cash itself.

Chrysler caused bulging eyes amongst analysts when the company reported a $143m first-quarter, operating profit driven by cost-cutting and higher sales volume.

“There is still a very long road ahead in our drive to rebuild our business and to deliver on our promises to repay the American and Canadian taxpayers who gave us a second chance,” said Sergio. Thanks for reminding us.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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4 of 27 comments
  • Tced2 Tced2 on Jun 13, 2010

    If the "shotgun" bankruptcy was done correctly, Chrysler should have been able to make their operations right-sized for their current business. Making some money after that adjustment should not be surprising.

  • SherbornSean SherbornSean on Jun 13, 2010

    This was a good commercial, but I would have liked it more if the women had been British and the Charger had run them over. And maybe these Britchick could have had "BP" tramp stamp tattoos. And the guys driving the Chargers asked if that thang got a hemi, and then maybe the car could turn into a robot that ruled the world. That would be awesome.

  • Jim Sutherland Jim Sutherland on Jun 13, 2010

    I don't understand why the employees would deserve anything beyond an affirmation that Chrysler is headed in the right fiscal direction. These are days when an actual job is the real reward for UAW guys. The idea that an email was somehow insufficient baffles me. Over-compensation for employees is the root of Greece's problems and the possible basis for a larger economic crisis in Europe.

  • JK43123 JK43123 on Jun 14, 2010

    Actually it's the THIRD chance from the American taxpayer. See also 1979. John