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Chrysler reports a profit for the first time since 1997
Last year, about this time, Chrysler caused quite the stir by airing a bold commercial during the Superbowl. I'm sure you remember it, it featured Emienem driving a Chrysler through downtown Detroit.The ad paid homage to Detroit, the city whose labor made their cars great. In the ad, the talked about how they hadn't given up on Detroit and hoped that the American people hadn't given up on them. The Superbowl commercial was a wise business decision and it was the first part of a plan to pull the struggling automaker out of bankruptcy. They promised to make better cars and to bring back good jobs to the Detroit area.
Like everyone else, I really hoped that they would be able to achieve their goal. If they pulled it off, not only would the auto company stay in business but it would also help Detroit, a once booming city that built the automotive industry and who felt the pain when the auto manufacturing jobs left.
The good news is that Chrysler recently posted an annual net profit for 2011, which hasn't happened since 1997.
It's amazing. Just three years ago, Chrysler was on the verge of collapse. They were running out of cash and had filed for bankruptcy. The U.S. Bankruptcy courts helped the company restructure some of their debt and picked a new CEO, Marchionne, to run the company. Added to that assistance, President Obama authorized a $12.5 billion bailout out the company. Since then, the company has created new vehicles and has been able to make their new products more competitive. Out of the original bailout amount, Chrysler has repaid all but $1.3 billion.
As the company has become more profitable, they have added more jobs. Currently, Chrysler employs 57,200 people, which is 9,400 more jobs compared to 2009. Additionally, their CEO, Marchionne confirmed that the auto plants will be adding a third shift at their plant in Belvidere, IL. The plant is busy making the new Dart, Chrysler's first economy, compact car in more that 15 years. The plant is hoping to hire on an additional 1,600 employees.
Much of the company's turnaround is due to the success of the Jeep brand. Last year, there was a 44 percent increase in Jeep sales. One of the most popular being the redesigned Jeep Grand Cherokee, which saw a 51 percent sales increase. However, the top selling Chrysler product last year was the Ram pickup.
Marchionne also noted that Chrysler employees, both hourly and salaried, would be receiving bonuses this year based on the last year's profit.
The company has big plans for 2012 and is currently working on redesigning their current product line up. The will introduce a revamped Ram later this year, a new version of the Viper and also an all-electric Fiat 500.
Let's all keep our fingers crossed that this growth for Chrysler is just the beginning of a turn around for American auto manufacturing.
What do you think about this news from Chrysler? Please share your thoughts in the comments.
By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for ManufacturingWorkersBlog and Nexxt. Along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.
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