Sergio Marchionne, CEO of Chrysler and Fiat, announced on Wednesday his company intends to repay the $12.5 billion it borrowed from the U.S. federal government and the $3.8-billion lent to it by Canada by 2014.
The claim directly contradicts a U.S. Government Accountability Office report issued this week suggesting America is unlikely to recover its loans to GM and Chrysler.
Marchionne’s timeframe hinges on returning to profitability and boosting sales dramatically. To achieve this, Chrysler is updating three quarters of its lineup by the end of 2010 and the rest by 2012.
The company expects to reach profitability in 2011, Marchionne said. By 2014, the annual profit will grow to $5 billion, if all goes according to plan. Chrysler says it expects U.S. sales to jump from 950,000 to 2 million in that time period.
“Fundamentally, this thing needs to earn its right to survive as a competitive American carmaker,” Marchionne said. “That’s the real target.”



11/05, 3:20 AM
posted by:
BuyUSA
I’d rather see the train robbers on Wall Street give back their bonuses and golden parachutes. Let Chrysler keep the money for future product development, so they don’t have to come back and do this all over again.
11/05, 3:26 AM
posted by:
sprockkets
By 2014 the Chrysler we know will be dead and will exists solely as a nameplate for Fiat.
Burn in hell for selling stuff like Neons and Intrepids.
11/05, 4:43 AM
posted by:
h82w8
Hey Sergio, call me when the shuttle lands. I know you’re the captain of the ship and all, but not in your wildest wettest dreams will Chrysler be around in 2014 without another huge infusion of cash. And we all know that’s why you ‘acquired’ Chrysler in the first place.
Now go play in traffic.
11/05, 6:38 AM
posted by:
carstuff
Very good news for everyone except Fiat’s/Chrysler’s competition. I find it very hard to believe BUT if they truly “update” 3/4 of Chrylser’s vehicles by the end of next year they could greatly improve market share but to more than double? Now what the heck is update?
Hopefully all new competitive interiors in most everything. That would really make a difference. Also importing a bunch of wonder cars from Fiat would help (are they really that wonderful?).
Much as I would like to see this happen the more than doubling of vehicles sold is tough to believe. Then again VW said the same thing a couple years ago and they are doing pretty well.
11/05, 7:03 AM
posted by:
alsvw
will this shut up the anit-american republican people on this blog? i would hope so. but, then they would have little to bitch about. well besides having a black man a president.
I think its great that we have a government that can help out americans in need. and the money is going to be paid back in few years.
11/05, 7:23 AM
posted by:
iluvamcars
To everyone who says Chrylser won’t be aound in 2014, think again. First off, they won’t need another infusion of cash because FIAT is the one paying for everything. Chrysler is now a subsidary of Fiat, heck more like a dvision, well not like a division but you get where im going with this.
-iluvamcars
11/05, 7:57 AM
posted by:
Need more oil for GM
Of course they will, it’ll be payed back in liquidation. Maybe the Jeep brand can be bought by GM by then as it’s the only thing Chryco has that should live on.
GM. An American Revolution
11/05, 8:44 AM
posted by:
carstuff
alsvw, bit confused. Where have you seen anyone complain about an african-american being the president in this forum? I guess I missed it. Have seen a lot of complaining about his actions, but not his color. Love the way some use off color subjects to push their point.
Really doubt many republicans here are anti American.
But back to cars. Reading a whole bunch on Fiat and Chrysler this am. Chrysler has ~$5 billion in the bank and have cut the cash burn. So maybe Fiat will be able to pull this off. Lets hope they can last long enough to get to the profits in 2011. I think there is a lot of opinion that car sales are going to start a good upward trend and that means profitability will come faster. Ford and Toyota have both shown profits in the 3rd quarter which was unexpected.
11/05, 9:27 AM
posted by:
teahead
Republicans love America…as long as you’re white, straight, and Christian.
The rest of you…you can leave the country. That’s their mantra.
Republicans would rather just sit back and do nothing and maybe offer more tax cuts. They would have let GM and Chrysler go under, the banks fail, and sit back and watch the whole financial system go down the tubes.
And all they care about is gay marriage. What losers.
11/05, 9:36 AM
posted by:
DenverGuy217
I always love companies that predict all these good things 3-5 years out, yet in reality they cannot even predict what will occur 2-3 mos out. We”ll just have to wait and see
11/05, 9:43 AM
posted by:
carstuff
teahead, wow. How wrong you are. Very sad.
11/05, 9:45 AM
posted by:
2WheeledSpeed
Wow, way to stereotype teahead… Losers like you on BOTH sides are screwing up this country.
11/05, 10:21 AM
posted by:
johnnycanuck
“Burn in hell for selling stuff like Neons and Intrepids.”
You know sprockkets, I like yours the best because it tosses aside all the other superficial ignorance being spewed out here and aims right for holy grail of idiotic remarks. Uh… so please clarify for our viewing audience just who hasn’t thrown out a few less than perfectly polished apples in the past. Thinking… thinking… thinking… sorry, I’m stumped. Enjoy your life while you spend all your time worrying about the past buddy… just don’t be too surprised when the future is so far ahead of you that you can’t catch up.
11/05, 10:22 AM
posted by:
darkwingduck
Teahead – you need to go to a christian camp and learn the Christianity teaches you to love everyone regardless of who they are and their life choices. If you dare tell me that it says in the Bible gays are looked down upon, then I guess you get to cast the first stone you sin free man/woman(whichever you are) Tragic Wars, and events, are created by people like you. Now why don’t you talk about the article at hand here and not political views and life choices.
To the subject now.
I don’t think Chrysler can make that prediction come true. It would take a LARGE TURN AROUND by them to deliver on such a promise. They do make Great Trucks, but that isn’t enough. I need to see a car from them that proves they can make good on their promise. The Challenger is a great car, I like it, but not enough from them. This is just what I think.
11/05, 10:33 AM
posted by:
85ZingoGTR
Its the selling of all those Ferraris and Maseratis that’s paying the bills. lol
11/05, 11:12 AM
posted by:
leftwingagenda
i love to fight republicans, but even i know that the repayment of 10+ billion in 4 years for a company currently in the dumper is unrealistic…when the loans are paid, i will say something…until the loans are paid (or at least look likely to be paid by a profitable chrysler) i’m not going to believe wildly unrealistic claims like this…
if the recession takes another dip, for example, this 2014 claim goes right out the window…it’s essentially a worthless statement…
11/05, 11:25 AM
posted by:
Szabla
Very ambitious goals indeed.
But the practical side of me does not think this goal is realistic.
BTW, stick to car talk and keep the politicalimity for another site…ok?
11/05, 11:27 AM
posted by:
Ic3m4n
Leftwing,
its funny how Chrysler just threw out that worthless statement, because aside from your comment and maybe a couple others on this post, the rest are worthless statements too.
And I’d have to agree with your, if Chrysler runs into any hiccups, it doesn’t have to be another dip in the recession, it could be a parts problem causing a recall on a new model in the next couple years, hell even a delayed/failed launch of a vehicle could cause the 204 date to go right out the window
11/05, 11:31 AM
posted by:
carstuff
just a tidbit for the peanut gallery: per nielson
Fox news viewership is 2.1 million viewers
MSNBC is 700k
CNN is 664k
HLN is 513k
And their 25-54 age viewership is 3 times the other 3.
Why is Fox so high? Obamas attack on Fox is scaring people to watch Fox. Very scary.
11/05, 11:33 AM
posted by:
beatusmongous
LWA, the difference between you and people like Teahead us that you have reasonable, well thought out arguments that are presented in a thought provoking manner, rather than a bunch of CNN and MSNBC rhetoric that hinders instead of helps. Even though you and I disagree on a lot of political points, I find your arguments to be rather interesting to read, and I do agree with a lot of your ideas about cars. Teahead, on the other hand, drives people on both sides to anger, and contention is not helpful when things need to be done.
The one statement I noticed in the article is this: “If things go according to plan”. That right there turns the statement into hot air. It’s very rare when things do actually go according to plan, which is why good planners always have backups.
11/05, 11:34 AM
posted by:
aesir
2WheeledSpeed + like a 1000. Seriously, ignorance is what is ruining this country.
I’m not a huge Obama fan by any means, but the one thing he’s doing that I do like is his push for education because we have idiots like teahead in both major parties. You know only half of all Americans complete college in less than 6 years. For the “richest” country on the planet, that’s just sad.
11/05, 11:35 AM
posted by:
Stix
@teahead
Stick to car talk, and not to a bunch of idiotic, politically-motivated speeches. Ok?
Because, as far as I’m concerned, neither Republicans or Democrats are even worth mentioning in today’s political climate. They’re just as bad as the corporations that they have been bought out from. You think Obama is any better than Bush, other than the fact that’ he’s not like the last guy? Get a clue.
It’s amazing how Chrysler can make bold claims, when they’re the ones getting screwed over more than GM within this recession. I’ll sit and wait until 2014 to see if they’re liars or not.
11/05, 11:37 AM
posted by:
A4
didn’t they say cars would fly by then too?
11/05, 11:40 AM
posted by:
superman
carstuff id like to believe you are not so naive or arrogant as to believe that the only reason people (mostly repubs) hate the current potus is because of his actions and not color. whether explicitly stated or not, fact is they can’t get over a black man being the potus because in all honesty, if he was white and helping get the country back on track like bama is, he’d be hailed as the second coming of jesus. and darkwingduck, that’s pretty judgemental for a camp going christian like you to call someone a war creator. why is it that the people who claim to be religious and close to god are the most hateful, close minded people on earth? …ah so much for car talk.
11/05, 11:44 AM
posted by:
Stix
@carstuff
Fox News only has a lot of viewers because they constantly try to advertise their crap all over the country to the general public 24/7. It doesn’t matter anyway, they will never be a respectable news channel as long as they solely exist for the sake of favoring ratings above truthful journalism.
They’re just a biased mouthpiece for the (party that should have went extinct like the dinosaurs have) GOP.
11/05, 11:49 AM
posted by:
johnnycanuck
Thank you superman for that last statement… hypocrisy is to the religious what rhetoric is to the unions.
11/05, 11:53 AM
posted by:
eal2009
Most of the news outlets are biased one way or the other.
11/05, 12:01 PM
posted by:
alsvw
carstuff-
did you ever think the viewship of fox has to do with the republicans out of work, spending their days building up hate from fox news. its the democrats that actually work in this country that can’t spend all day foaming at the mouth, watching faux news. i am sure you have a different outlook on reality. this was just food for your thought.
11/05, 12:03 PM
posted by:
alsvw
aesir– word !
11/05, 12:38 PM
posted by:
Borat
First and foremost let me set my record straight: I am 100% agree with carstuff. I vote 90% of the time republican and to dismiss completely teahead’s argument I am not explicitly white, definitely not a Christian and have deep concern about what is happening on Democratic watch in the country. I was the only one explicitly writing “n-word” joke (joke for your christ sake) on this blog. which of course evoked the best in every humorless ahole. Since I admit to a joke, it could not apply to potus: he never owned Pontiac, he isn’t old and far from being poor. As a matter of fact when he’ll be retired in 3 years, he’ll be tremendously wealthy man making at least in teens of mils on lecture circuit alone. Not to leave without a joke: he watch college football last Saturday and by tomorrow he’ll be nominated for Heisman trophy.
Back to the article: the reason Marchionne WANTS to repay those loans because he intends to run a car company, not to be status quo leach and collect miserly salary. Our bureaucrats at Treasury can’t comprehend why an executive would want to be divorced from government’s tit. There is no one on GM board who has those aspirations or ambitions nor in Treasury.
11/05, 12:42 PM
posted by:
carstuff
wow,a little data and the kooks come out!
And yes I guess I am so naive to think that most of America today can get past the color of our president. The issue is his policies, not his color.
But in looking at the comments above the hate is from what is generally called the left. Just read and see what has been written.
You will also see that I have not tried to espouse by views in this column, just facts.
11/05, 12:57 PM
posted by:
0-60
I’m 50/50 on them paying the money back.
50% -wants them to pay it back because they are no longer American owned but now Italian.
50%-Doesn”t really care, even though most prople complain about the money I can’t think of a time where as a tax payer we ever got are money back after it was spent for whatever cause.
Just my 2 cents.
11/05, 1:21 PM
posted by:
Need more oil for GM
I disagree on that second part ^ ^ ^ Chryco owes it to the American public to pay back all it’s loans since they are no longer American. Nobody buys their vehicles except the occasional bum who doesn’t have the cash to afford a vehicle from the General. Why should the American taxpayer pick up the tab for their incompetence?
At least the money we gave to GM was earned. They needed a boost to get through the hard economic times and since they are an Automotive idol, we must do everything i our power to make sure they continue to have a bright, successful and profitable future. In the minds of most Americans, there is no need for GM to repay something that was just good business practice.
An American Revolution
11/05, 1:22 PM
posted by:
JakeK66
And Extenze works as advertised. Yeah Right.
11/05, 1:54 PM
posted by:
fuzz40
” In the minds of most Americans, there is no need for GM to repay something that was just good business practice.”
Guess I am not like most Americans. I fully expect GM to pay back all of its loans.
11/05, 2:14 PM
posted by:
Need more oil for GM
You must not be American since you obviously are voting for its fall. Without GM America will become a third world Country and you might as well start buying stock in ricecakes.
Be American. Buy American. Buy GM. An American Revolution!
11/05, 2:17 PM
posted by:
Szabla
alsvw-
You sir are full of Sheeeit.
Wow, can we kill this thread and start over?
11/05, 2:20 PM
posted by:
sprockkets
Need more oil for GM, stop making sense. If this is the sort of stuff you are going to post then get a new handle.
11/05, 2:21 PM
posted by:
worst 3
I feel like Chrysler will eventually pay back the loans but by 2014, even start paying the loans back by 2014 is a bit of a stretch to me, and to finish some time after 2025.
11/05, 2:23 PM
posted by:
sprockkets
@ johny”Uh… so please clarify for our viewing audience just who hasn’t thrown out a few less than perfectly polished apples in the past. Thinking… thinking… thinking… sorry, I’m stumped. Enjoy your life while you spend all your time worrying about the past buddy… just don’t be too surprised when the future is so far ahead of you that you can’t catch up.”
It’s one thing to make a mistake, its totally different to on purpose engineer sh it for the sole purpose of screwing over your customer base, and it is clearly obvious at all the cost cutting measures Chrysler did to save $2 bucks so the customer could spend $100s on repairs.
11/05, 2:32 PM
posted by:
maritime40
I’ve been reading LLN threads for a while and wondering how idiots can side track the subject and offer little more wasting peoples time. This isn’t the place for airing your political views, I’m sure there is somewhere else you can go for that. Need more oil for GM Shut up!!! why are you even here? You offer absolutely nothing. 5 Years GM will be back for bailout money. Any decent vechile they had they cancelled. G8, Vibe, and kept Impala, Colbalt, GMC, Aveo??? Chrysler is reorganizing under Fiat and making changes for good or bad we will have to watch and see what will happen.
Szabla- Good idea start a new thread
11/05, 2:38 PM
posted by:
johnnycanuck
sprockkets, I never said you were wrong… but rather who isn’t guilty of exactly that?
I didn’t mean to come off so harsh. I still own a Neon so I guess that’s what got my back up.
11/05, 3:27 PM
posted by:
Need more oil for GM
General Motors paying back the money we gave them is a non issue. As far as Americans are concerned we were only helping them through the financial turmoil of 2009 and now that things are better and GM is once again at the top of their game, we will be rewarded with more and more class leading products as payback.
it is ignorant and unAmerican to grab pitchforks and torches to go after GM when they are not the enemy here. Imports buyers, ignorant media outlets, and biased, paid off organizations like Consumer Reports are the ones we should be going after.
GM has every right to government support because even the government, as corrupt as it is needs to recognize GM’s importance to this Country. They are our number 1 priority.
GM. AN Americna Revolution
11/05, 3:40 PM
posted by:
Blakkarr
Okay, I’ll ask…
Does Sergio Marchionne have a 50-foot wide meteor made of Gold? I swear he was on a spending spree buying up companies and factories and now he says he’ll repay everything CHRYSLER borrowed in five years?
I can buy that FIAT plaid it super-smart, smarter than even TOYOTA. But the huge promises, the massive turnaround and targets set for CHRYSLER, and now this is just blowing my mind.
11/05, 3:55 PM
posted by:
leftwingagenda
thanks for the kind words, guys…i like to think i’m more of a smart bomber than a carpet bomber…
btw, i’m not sure what the profit margin is on a f458, but in terms of revenue they just have to sell 80,000 of them at 200k a pop to get 16B and pay back the US and Canada! piece of cake!
11/05, 4:42 PM
posted by:
chryslercurse
How about paying the terminated dealers back for the franchise you and the autotask force stole from
long time dealers or living up to scumbag jim press”s statements that teminated dealers parts, vehicles and special toolls inventories would be bought by going forward dealers by june 9th 2009 . Chrysler and gm have stolen the franchise from main st dealers and given them to their million dollar buddies .
either party could give a **** !
11/05, 6:17 PM
posted by:
jayjc08
Wait, republicans? I thought this was about Chrysler.
Lots of hate surrounding this subject it seems…
The Neon and Intrepid were great cars.
And I don’t know about the rest of you, but this is good news. But I think too many people have this mindset that if they get quality interiors, then they’ll be selling double than what they’re currently selling. Not the case, because it’s also the design of their interiors, the fuel economy of their vehicles, their poor reliability and the overall look of their cars.
11/05, 6:19 PM
posted by:
carstuff
Did not know that Chrysler and GM had opened that many new franchises. Does anyone have a list of new dealerships since bankruptcy?
11/05, 9:20 PM
posted by:
sprockkets
ok Johny
, let’s me specify a bit better, the FIRST gen Neon. The 2nd Gen wasn’t nowhere near as bad.
11/06, 8:05 AM
posted by:
Need more oil for GM
What’s good for General motors is good for America
11/06, 9:28 AM
posted by:
beatusmongous
i.e. Getting rid of NMOFGM is good for America, because he is bad for GM.
Which is what I think his purpose actually is: to make us dislike GM.
11/07, 12:39 AM
posted by:
Need more oil for GM
I’m a Communist !!!