Take It to the Bank, Part 2
Chrysler reports healthy cash flow, intentions for Dodge brand
As reported by USA Today, Chrysler's cash has grown by nearly $2 billion since the company exited bankruptcy protection in June. In a plan outlined today, Chrysler said it will look to revamp its struggling Dodge brand by offering four new models by 2013 and outfitting existing models with new engines, interiors and exteriors. Of the new models, one will certainly be a Fiat-produced sedan; Fiat owns 35 percent of Chrysler, which does not have a competitive entry in the sedan market.
Chrysler, now run by Fiat's Sergio Marchionne, has a tough road ahead of it; sales are down across the board, and the company faces customers who think poorly of the brand in terms of quality, innovation and reliability. Of its two midsize offerings -- the Chrysler Sebring and the Dodge Avenger -- for example, the former has seen sales drop 71 percent over the last 10 months, and the latter has fallen by 45 percent. Combined, the two vehicles have sold only 44,000 over that time span, compared with almost 295,000 Toyota Camrys -- the best-selling car in the country.
Marchionne has said that Chrysler broke even in September and has $5.7 billion cash on hand. Let's see what he can do with it.
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