April 23, 2024

The restructuring process at Chrysler is showing positive results

Sergio Marchionne

Well at least this is what Sergio Marchionne, Fiat SpA and Chrysler Group LLC CEO has to say about recent undergoing procedures to cut costs at Chrysler and to eventually turn it around.

Sergio Marchionne
Sergio Marchionne

Marchionne also said that in terms of the market share numbers coming out of the U.S., it’s a slow, gradual process, a re-making exercise and it will need some time.

Some other encouraging news for Chrysler came in the form of Marchionne stating that he is now more confident about the company’s future prospects than he was about twelve months ago.

Chrysler has recorded a 5% drop in sales in the first quarter of 2010; by comparison industry deliveries are up by 16 percent. Despite this, Sergio Marchionne is opposing incentives to raise sales at the cost of profits. He has cut discounts for every vehicle made by the Chrysler, Dodge and Jeep brands by $1.122 in the first three months of the year which is quite a different situation to what cuts were made by General Motors or Ford Motor Company where the cuts are less than a quarter what they are at Chrysler.

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