Chrysler Reports First Post-Bankrputcy Profits

VOA Breaking News (Voice of America)
May 2, 2011 at 11:45 pm UTC

Chrysler has become the last of the major U.S. car companies to announce a return to profitability after emerging from bankruptcy and a government bailout.

Chrysler said Monday it earned $116 million in profits in the first three months of the year after losing almost $200 million during the same period last year.

Chrysler Chief Executive Officer Sergio Marchionne says the first quarter earnings show that the company is on the right track.

Chrysler credits improved sales as the economy gets better, along with wage cuts and lower overhead. Chrysler is best known for its Jeep brand and its line of pickup trucks and sport utility vehicles.

The company operates under the management of the Italian car maker Fiat, which has a 30 percent stake in Chrysler. The U.S. government also still has a small stake in Chrysler as part of its bailout.

The largest U.S. car maker, General Motors, has also emerged from bankruptcy to profitability and and is paying back its government loans.

Ford Motors, which did not accept a government bailout, is also reporting its highest profits in years.