A Marchionne Miracle! Chrysler Generates Cash
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.
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.
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.
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.
Actually it's the THIRD chance from the American taxpayer. See also 1979. John