Fiat CEO: Chrysler to post profit 07/23/2010
Fiat CEO Sergio Marchionne said that Chrysler is poised to post an operating profit in the second quarter, raising hopes that the automaker will soon be on the track to the recovery.
When Chrysler went bankrupt, Fiat stepped up to acquire a 20 percent stake in the company, and is currently in charge of its day-to-day operations. In exchange, Fiat received eco-friendly and small car technology from the automaker, and has entered into a distribution alliance. Despite this, the two are still technically separate companies, so even though Marchionne is CEO of both, Chrysler has yet to officially report its results.
Fiat, meanwhile, earned about $146 million dollars during the second quarter, up significantly from the previous year's $231 million dollar loss. Marchionne is currently in the process of spinning off separate businesses, such as trucks, construction and agricultural equipment, into a separate company in order to focus on Fiat's automotive efforts. The Italian automaker is looking to become a major global player through its Ferrari, Maserati, Lancia and Alfa Romeo lines, in addition to its partnership with Chrysler.
Two-thirds of Chrysler is owned by the United Auto Workers Retirement Fund, while the rest of the percentage is made up by the U.S. and Candian governments.