Chrysler records a net loss of $652 million in 2010

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Chrysler records a net loss of $652 million in 2010

2011-02-01 06:22:01 GMT+7 (ICT)

AUBURN HILLS, MICHIGAN (BNO NEWS) -- Chrysler Group on Monday announced that it recorded a net loss of $652 million in 2010; $199 million in the fourth quarter (Q4).

The $199 million net loss during the Q4 is $115 million worse than in the third quarter. The company said that the setback was due to more spending on advertising and long-overdue product launches.

"The Company has lived up to its promise to launch 16 all-new or significantly refreshed vehicles in the past 12 months. All of these vehicles bear testimony to Chrysler’s rebirth," said Sergio Marchionne, Chrysler CEO.

However, these figures are not as bad as the company emerged from bankruptcy in 2009. Chrysler announced that produced an operating profit in the first quarter of 2010 for the first time since the economic crisis began.

"It can safely be said that what Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations. Our job is not yet done. We have a lot of work ahead to fulfill our five-year business plan objectives," added Marchionne.

Last year, U.S. President Obama made the difficult decision to provide Chrysler with financial support if they proved to be able to restructure their businesses into a long-term viability without ongoing government assistance.

In addition, the automaker company posted a Modified Operating Profit of $198 million in Q4 2010 and $763 million for the whole year. Chrysler also achieved $1.4 Billion in Free Cash Flow in 2010.

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