Chrysler Posts Strong 2011 Profits, Profit Sharing Remains A Mystery

LINK: Email sent by Chrysler CEO Sergio Marchionne to the company's workers.

AUBURN HILLS (WWJ) - Chrysler posts a $183 million dollar profit for 2011, and promises "performance bonuses" for workers, but is not yet ready to say how much those bonuses will be.

"We're pleased with the results," said CEO Sergio Marchionne.  "I think it's been an exceptional year for Chrysler, in terms of achievement.  We've delivered on everything we've told you we were going to be doing."

Chrysler would have earned $734 million dollars in 2011, if it hadn't spent money paying off its government loans.

Analysts are generally pleased with the pace of Chrysler's turnaround. "Chrysler is the surprising comeback kid – again," said Michelle Krebs of Edmunds.com. "When Chrysler emerged from bankruptcy, there were plenty of skeptics, but the automaker has proven them wrong."

The company expects to earn $1.5 billion in 2012.  Marchionne says that's a good profit, but still not up to what its competitors are making.

"It's not going to be a walk in the park in 2012, but I think we've got all the elements in place."

Chrysler's first Fiat based product will debut in the coming year, the new Dodge Dart.  In fact, Chrysler on Thursday will celebrate renovations to the Illinois plant that will build the Dart.

Other Fiat based products are coming in larger numbers the following year. "The real story will unfold in 2013, and it's going to start with the Detroit Auto Show a year from now," said Marchionne.

At this point, Chrysler is supporting the profit structure of parent firm Fiat. Analyst Michelle Krebs says there is once again optimism about Chrysler's future.

"Since detailing its plan for the future in November 2009, Chrysler has done everything it said it would, creating an impressive recent track record and providing confidence that it will meet its 2012 goals."