Back in 2009, the automaker Chrysler introduced the bankruptcy filing to reorganize and continue on making cars. CEO Sergio Marchionne stated that Chrysler’s rise from the ashes after its 2009 bankruptcy has happened much faster than expected. This last year in 2011 sales for Chrysler increased 26% making it the strongest growth of any automaker. The company is expected to report profit of close to $600 million in its first year of making any profit since 2005.
CEO Sergio Marchionne, has been working on his goals of merging Fiat and Chrysler and complete an IPO before stepping down. He said that it will take until at least 2015 before his goals will be completed. Mr. Marchionne is a lawyer and accountant by trade when he took over Fiat back in 2004. At that time, Fiat was a dying company in bankruptcy until Marchionne turned it around. It’s amazing to see how this ailing company was turned around so quickly out of a bankruptcy filing.
Marchionne has discussed his management style with the press, showing Chrysler’s future products and how they came about in the company’s conference room which he calls the battlefield. After emerging from filing for bankruptcy Chrysler had hoped to sell 50,000 Fiat 500s in North America after the brand’s 28 year absence. The idea wasn’t well received and Fiat only sold 26,294. Fiat will continue to move forward opening stores and starting a national ad campaign.
It has been eight months since Chrysler paid back by $7.6 billion loan to US and Canadian governments. This is due to the strength of management of Chrysler after emerging from filing bankruptcy.