Chrysler to Hire For Detroit - Analyst Blog


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Chrysler Group LLC - controlled by Italy's Fiat SpA ( FIATY ) - plans to add 1,250 jobs at its two Detroit plants next year in order to manufacture new vehicle models. Among them, 1,100 will be added to the company's Jefferson North Assembly Plant and the rest to the Conner Avenue plant, which will be reopened later this year.

The new hires and a third shift at the Jefferson plant will help the company build a Jeep Grand Cherokee diesel model for North America. On the other hand, the company plans to manufacture a Street Racing Team version of the Dodge Viper muscle car at the Conner Avenue plant. 

Chrysler saw marked improvement in sales in 2011 driven by strong demand for its Jeep brand models and other revamped models. For the full year, the automaker's sales soared 26% to 1.37 million vehicles.

In contrast, the company's cross-town rivals, General Motors ( GM ) and Ford Motor ( F ) recorded increases of 5% and 15.6% in sal es, respectively during the year. Chrysler's sales are expected to improve further in 2012, driven by strong pent-up demand and low interest rates.

In the third quarter of 2011, Chrysler posted a net profit of $212 million compared with a net loss of $84 million in the year-ago quarter, driven by higher sales and benefits from its alliance with Fiat. Net revenues escalated 19% to $13.1 billion, driven by strong demand for the company's 16 all-new or significantly revamped car and truck models.

The company's operating profit more than doubled to $483 million (3.7% of net revenues) during the quarter from $239 million (2.2% of net revenues) a year ago. The increase in operating profit was attributable to increased sales volume and improved pricing and mix, offset partially by increased advertising and industrial costs.


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This article appears in: Investing , Business , Stocks
Referenced Stocks: F , FIATY , GM

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