It is encouraging to see new life in the past year to the American auto industry . In many ways the most dramatic recovery has been Chrysler. Three years ago the company was headed for the junkyard but last year made a $180 Million dollar profit and would have made more if they didn’t decide to pay back the loan 6 years ahead of schedule. We all wish we did as well in our personal finance. Much of the credit for the success of the company can be given to the tax payers that gave them the money and to the workers who accepted wage and benefit cuts.
When he arrived in 2009 he remembers the fear in the eyes of the people that just wanted to keep their jobs and work and noticed that there is nothing worse than to be a victim of a process that is outside of your control. He is most proud of the smiles now. The controlled bankruptcy that he negotiated with the Federal government that allowed Fiat to take over the failing American auto maker was the key to his success. It was the last hope for Chrysler and its 54 thousand employees.
Being a tough negotiator, in the end Fiat got a 20% stake in a brand new slimed down debt free factory called the Jefferson North Assembly for Chrysler, used the $6 Billion dollar loan to refurbish the factory with state of the art new equipment and upgraded 16 car models in just 18 months. He has also integrated both car companies like as if they were the other half of a coin. Who would imagine Americans embracing an Italian auto maker? Will middle America drive a Fiat? I know corporate America will love to drive the Ferraris!
The Dart is reengineered and built in the USA. It’s base price will be under $16,000 with 40 mpg. The company needs the Dart to be as popular as it once was. Under Sergio’s watch according to Consumer Reports the quality of both Fiat and Jeeps have improved in recent years. He is so confident that he plans to be EXPORTING the American made Dart to more than 60 countries. Now when was the last time your heard of America exporting? It has been awhile!