Chrysler 2011 Annual Report Download - page 10

9
Letter from the Chief Executive Officer
Dear Shareholders,
2011 marked the beginning of a new life for our Group.
The alliance established between Fiat and Chrysler in 2009 was further strengthened during the
year, as we continued rigorous implementation of our goals.
Acquisition of a majority interest in Chrysler Group in May – with our interest growing to 58.5% in
January 2012 following achievement of the Ecological Event – means that we are now also able to
view the financial results of this newly constructed alliance.
In fact this year, the Group’s financial results include Chrysler’s for the first time and, although
Chrysler was only consolidated for seven months, those results already reflect the measure of what
has been accomplished through the integration so far.
The pages of this Annual Report tell the story of a unified global automaker equipped with a full
product range and an extensive geographic presence, as well as the greatest level of cultural
openness that either of the two organizations has ever experienced.
But we are still in the beginning stages of our plan to develop and strengthen Fiat-Chrysler: a plan
that is being implemented with decisiveness and conviction.
What was achieved during 2011 is a clear demonstration of the benefits of this strategic tie-up.
Today we are far from being a marginal player.
We have become one of the strongest and most competitive automakers globally with some of the
most innovative and advanced technologies in the world.
Fiat-Chrysler sold a combined total of more than 4 million vehicles for the year – making it the 7th
largest automaker globally – and we are poised to grow even further.
Despite uneven trading conditions across our principal markets, with particular weakness in
Europe, we achieved or exceeded all targets.
Revenues and trading profit were significantly ahead of guidance at €59.6 billion and €2.4 billion,
respectively.
Total available liquidity remained strong at €20.7 billion, also well above target.
Net industrial debt totaled €5.5 billion at year end, with the increase over €0.5 billion at year-end
2010 being primarily attributable to the effect of initial consolidation of Chrysler’s debt, acquisition
of the U.S. Treasury and Canada’s ownership interests in Chrysler and a healthy level of capital
investment. The net debt position was reduced in the fourth quarter, however, on the back of
positive operating performance and continued discipline in working capital management.
“Acquisition
of a majority
interest in
Chrysler Group
means that we
are now also
able to view the
financial results
of this newly
constructed
alliance”