Chrysler CEO: 2010 A "Foundational" Year

Chrysler CEO Sergio Marchionne has sent an email to employees thanking them for their "unrelenting support and committment to the values that guide the new Chrysler."

WWJ AutoBeat Reporter Jeff Gilbert recieved a copy of that email:

As this eventful year draws to a close, it is a good time to reflect on how much we have collectively accomplished during 2010. This has been a foundational year for the company. From the factory floor to the management ranks, we are seeing the men and women of Chrysler Group LLC come together as a team with a true sense of mission. Every day, pride is being restored and confidence in the future is being rekindled.

Here is an example that puts into perspective just how far we have journeyed in 12 months. At the 2010 North American International Auto Show (NAIAS) at Detroit in January, we held no formal press conferences to introduce new products. Some critics saw this as symbolic of a tired company with no prospect for success. In contrast, when the 2011 NAIAS opens in a few weeks, we will host two press conferences (Chrysler and Jeep®), which follow three meetings with the media at the LA auto show (Chrysler, Dodge and Fiat). Moreover, you will find every one of our 16 all-new or significantly refreshed vehicles at the Chrysler Group stand. The critical reception for our new vehicles has been overwhelmingly positive.

Here is a snapshot of 2010's highlights.

Products: When the Jeep® Grand Cherokee first rolled off the line at Jefferson North Assembly in May, we called it a signature vehicle as the world watched to see if we were true to our word in making a vehicle with world-class quality. Since then, the Grand Cherokee has earned strong market acceptance and a flood of awards, including the Texas Auto Writers Association "SUV of Texas," "Four Wheeler of the Year" Award from Four Wheeler magazine, "Best Buy" in the Full-size/Luxury SUV Category by Consumers Digest magazine, and The Detroit News' "Truck of the Year". Through the rest of 2010, we moved swiftly to replace or refresh 75 percent of our product portfolio, with 11 of the launches in the fourth quarter. We also began production of two technologically advanced new engines this year – the modern, fuel-efficient Pentastar V-6 and the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE), which will debut in the Fiat 500 early next year.

Sales: In the U.S., we have recorded eight consecutive months of year-over-year sales gains, and total sales through 11 months increased by 17 percent compared with 2009. Chrysler Canada has had 12 consecutive months of sales growth and grew total sales by 28 percent through the first 11 months of the year. Since June, our sales in Mexico have been up every single month and momentum is building, and our International sales increased 3.6 percent over the period on a year-to-year basis.

Finances: We have lived up to the clear and concise financial commitments we made a year ago, and, in fact, we upgraded our outlook for the full year based on the progress made. We exceeded our forecasts through the first three quarters with an operating profit of $565 million, net revenues of $31.2 billion and a reduction in net loss to $453 million. Cash on hand was increased to more than $8.2 billion at the end of September, up from $5.9 billion at the end of 2009, which brings our total available liquidity to more than $10.5 billion, including the $2.3 billion that remains available to draw under our loan agreements with U.S. Treasury and Canadian and Ontario governments. We remain on track to consider an Initial Public Offering in the second half of 2011 if market conditions are favorable.

Investments: We announced nearly $3 billion in total investments during 2010 to increase our competitiveness in the years ahead. This included adding more than 2,000 new jobs to support two additional shifts at assembly plants and additional production at our Global Engine Manufacturing Alliance (GEMA) facility.

Manufacturing: The implementation of World Class Manufacturing (WCM) is helping to improve safety, efficiency, quality and flexibility in our plants through a rigorous process designed to root out waste in all forms. On a fundamental level, WCM is a true agent of change because it is based on the values of self-respect, respect for others and respect for the environment. WCM is helping us tap into the intelligence, creativity and experience of all of our employees.

Dealers: Our 2010 Dealer Announcement Show in September attracted more than 2,400 dealers from around the world, who came away enthusiastic about the unprecedented makeover of our product lineup for the 2011 model year. In November, we announced the selection of 130 U.S. dealers and 58 Canadian dealers to represent the Fiat brand as it returns to North America. They will be the first to sell the 2012 Fiat 500, which was revealed at the LA Auto Show.

With the holiday season approaching fast, our thoughts naturally turn to families and friends. It is a time to reconnect with loved ones to share some warm and joyous times.

Even though there are many challenges ahead of us in 2011, we can take some deserved rest at this time knowing that we have put down the groundwork to create a secure future. This would not have been possible without your unrelenting support and commitment to the values that guide the new Chrysler: of renewal, of a willingness to engage in competition, to better oneself every day, of service to others and the communities we live in, of creating the conditions for a better future for our children.

You are the new Chrysler. Thank you for your tireless efforts and dedication. I hope that 2011 will be a healthy, happy and productive year for you.

In the meantime, my sincere wish is that you and your family enjoy peace and tranquility during this holiday season