Chrysler to Make $2 Billion, Marchionne Would Like IPO by End of YearBy Bill Visnic January 11, 2011
Chrysler Group LLC chief executive Sergio Marchionne said in a media discussion at the Detroit auto show today that he would be "delighted" if the company could pull off an initial public offering by the end of 2011.
First, however, he said it is critical Chrysler is able to restructure the terms of the loans it owes the U.S. and Canadian governments. He said the company has been in discussions with the financial sector to explore options for restructuring its debt.
He said that after selling 1.6 million vehicles globally this year that Chrysler will make about $700 million in operating profit - but projects sales of two million vehicles globally in 2011 and a profit of $2 billion.
Marchionne said the company's profit margin will be "slightly north" of 4 percent and perhaps approach 5 percent. "It's a big number," he said, in comparison to many automakers' margins.
As for Chrysler and Fiat's effort to institute a new global world-class manufacturing standard, "We're neophytes," Marchionne said. "We just started." He said the company will be 90 percent complete with the initiative in 36 months.