Chrysler: Profits Tied To Better Fuel Economy

Fiat 500 production image

Chrysler Group LLC is hoping that improving fuel economy figures will be the key to driving growth and boosting profits. By investing in fuel-efficient vehicles, the automaker believes it will easily hit financial and sales targets.

Although Chrysler just reported its first profit — $116 million — since emerging from bankruptcy in 2009, the automaker is still struggling with falling fleet sales and a low supply of new models, including the Fiat 500 and the Chrysler 300. The March 11 earthquake in Japan also stalled output, forcing to chief executive officer of Fiat SpA, Sergio Marchionne to admit: “Officially, we are behind schedule.”

“We’ve got less than two Chrysler 200s per dealer as of the end of the first quarter,” added Marchionne. “That’s inadequate to try and get traction.”

Chrysler has long relied on trucks and minivans to drive growth. However, according to Fiat Bothell, the automaker is now turning to smaller vehicles and engines to drive growth with the help of Italian partner Fiat. New engines, and new 8- and 9-speed automatic transmissions, are expected to help improve fuel economy by 25 percent by 2014. Additionally, a new compact sedan that’s due to hit showrooms next year will yield 40 miles per gallon.

Until production shortages are sorted out, Chrysler’s growth may soon hit a speed bump. According to Marchionne, the Japanese crisis is expected to cost Chrysler 50,000 to 100,000 vehicles in lost production. Although high mileage vehicles are expected to boost demand, production isn’t expected to meet the needs of car buyers until later this year.

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One Response to Chrysler: Profits Tied To Better Fuel Economy

  1. Uncle B says:

    Bull Shiite! Chrysler will never compete where even GM went broke! Honda, Hyundai, Toyota, Subaru, Nissan, and yet to be seen Chinese imports, all Asian engineered to fine computer specs Italians, Americans, hardly understand, will absolutely dominate the automotive world throughout the 21st century. Asian cars will use parts manufactured in Chinese factories powered by new Thorium fueled Chinese reactors, cheaper Chinese labor, for fractions of what manufacturing, even assembling cars costs in foreign oil dependent America.
    Luddites, great hulking American Neanderthals,largest human bodies on the planet, ever, swaying from foot to foot, great pot-bellies out front, huge arms dangling uselessly at their sides, willing to work only at union dictated, goon enforced, half-speed, for short work-weeks, astounding benefits packages, huge overtime concessions, for astronomical wages, posing ridiculous safety procedures, even more limiting health standards, loaded with the huge expense of the ‘American dream’ lifestyle as Hollywood dictates, straddled with under-educated, demanding, surgically altered, sex-toy, totally propagandized, shopping-machine mates, living in the long-commute ‘burbs, in McMansions with unpayable mortgages, driving American styled gasoline guzzler cars, dressing like movie stars, every one of them, and paying huge American property taxes to boot: These ass-holes are going to do better a better job of building cars than Asians? kiss my ass. no way. Better they build Tanks for the government and hope for a WWII style battle field to pop up out of nowhere, soon! Last good car America ever built: 1958 Buick Road Master! None prettier, none more dependable none more suitable for the times, since. What ever happened to Nash, Desoto, Oldsmobile , Packard, Studebaker, Pontiac, Willy’s, Fargo, Dodge, trucks, Hudson, Meteor. America, you had your fair chance! None of these grew into modern day Asian designs. Why not? Did you not handle your businesses well? Tough, dammit! Tough.

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