The CEO of Chrysler, Sergio Marchionne, admitted on Monday it will be “difficult” for the automaker to end this year in profit.
The USA’s number three automaker narrowed its net loss to $172 million in the second quarter, from a $197 million net loss in the first quarter after emerging from a government-supported bankruptcy in June 2009.
Marchionne said he is “satisfied” with the company’s general performance and that the automaker is “well ahead of plan” for its turnaround following bankruptcy.
After Vice President Joe Biden addressed autoworkers at a Chrysler plant that makes Jeep Wranglers in Toledo, Marchionne informed reporters: “We’re ahead of plan”.
“We are delivering on everything we said. We are doing it quietly, keeping our head down,” he said.
When Chrysler issued its second-quarter financial results earlier this month, Marchionne said he would likely raise its outlook for 2010 after the third quarter.
General Motors Co GM.UL has filed papers for an initial public offering of its stock, in a sale that could happen in approximately three months. The company also underwent a government-sponsored bankruptcy.
Marchionne did not make any comments about a Chrysler IPO, but in the past has said he will wait to see how the GM IPO fares.
Just as he did in July, Marchionne claimed Chrysler would already be showing net profits if it had not borrowed from the U.S. Treasury so it could have operating cash.
“All the money given to us was debt,” said Marchionne. “The cost of carrying that cash is very large”.
