CEO: Chrysler to Break Even on Operating Basis in 2010

[Purveyor]

By JEFF BENNETT And NEAL E. BOUDETTE

NEW YORK—Chrysler Group LLC Chief Executive Sergio Marchionne reiterated that the auto maker "intends to break even" on an operating basis this year and will hit its target of selling 1.1 million new vehicles in the U.S.

"We are confident that we can meet our ambitious but achievable goals," Mr. Marchionne said during a keynote address at the Automotive Forum 2010 in New York Tuesday. "The amount of work that had been done to bring down the break-even point—that number ended up being lower than most people thought."

He added that "to the extent that we are producing cash...I feel a lot more comfortable today than I did 12 months ago." As of Monday, he said, Chrysler had stockpiled "just north" of $5 billion in cash.

Chrysler's sales have fallen in the first two months of the year. Mr. Marchionne has said the company needs to sell 1.1 million vehicles in the U.S. to reach a break-even point. The plan is based on a forecast that U.S. sales will rise 18% this year. But in the year's first two months, sales fell 3.2%, and analysts expect another decline when March sales are reported Thursday.

Following his speech, Mr. Marchionne said Chrysler will sell 1.1 million new cars and trucks this year and will rely on new products rather than incentives. He said he wants to "pull ahead" introductions of new or restyled models but doubts it can be done.

Chrysler intends to introduce a new Jeep Grand Cherokee and Chrysler 300 as well as a freshened Chrysler Sebring, Dodge Avenger and Dodge Charger this year.

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[LiberalFighter]

1. If a auto company wants to take advantage maybe they should...

use Teabagger for one of their lines?