When President Obama took office, the U.S. auto industry was on the brink of collapse. In the process of bailing out Chrysler, the Italians took it over.
Chrysler Group LLC today said that in Q2 2011, net revenues increased 30% to $13.7 billion compared to Q2 2010. The increase was primarily due to higher volumes, +30% and positive pricing compared to 2010. First half (H1) 2011 net revenues totaled $26.8 billion, up 33% from H1 2010.
However, Chrysler posted a loss because it paid back various government loans six years ahead of schedule that came from its controversial 2009 taxpayer financed bailout. U.S. taxpayers took a $1.3 billion loss from the transactions which saw Italian firm Fiat become the owner of 53.5 % of Chrysler stock. The only other shareholder remaining is the UAW health care trust fund or VEBA.
Chrysler intends to increase its stake by another 5% by the end of the year by diluting the stock by issuing new shares.
By Chrysler’s accounting, Chrysler said it would have reported a $181 million profit in the second quarter, but took a $551 million one-time charge to repay loans from the U.S. Treasury Department and the Canadian government.
“There is no doubt that Chrysler Group has taken a huge step forward this quarter,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “Refinancing our debt and repaying our government loans six years early, reinforces our conviction that we are on the right path to rebuilding this Company and restoring it to its rightful place on the global automotive landscape.
Chrysler Group posted global vehicle sales of 486,000 in Q2 2011, an increase of 19% compared to 407,000 vehicles in Q2 2010. This increased Chrysler Group’s U.S. market share to 10.6% in Q2 2011, compared to 9.4% in the same period of 2010. Canadian market share increased to 14.9% for Q2 2011 compared to 12.9% for Q2 2010.
During the first half of 2011, worldwide sales totaled 880,000 vehicles, an increase of 19% compared to H1 2010. Vehicle sales in the U.S. and Canada increased 21% and 15%, respectively, for H1 2011, which outpaced the growth of the U.S. and Canadian markets. Market share in the U.S. was 9.9% in H1 2011 compared to 9.2% in H1 2010.
Worldwide vehicle shipments in Q2 2011 were 514,000 – exceeding 500,000 vehicles in a quarter for the first time since the Company began operations in June 2009 – an increase of 19% versus 433,000 vehicles shipped in Q2 2010. H1 2011 worldwide shipments totaled 999,000 vehicles, a 23% increase over H1 2010.
