Bailed-Out Chrysler Thriving and Ready for IPO by Year End

Chrysler 2014 Jeep Cherokee Trailhawk.
AP
Chrysler Group, pumped up by the strong demand for its Jeep vehicles and Ram pickup truck, reported healthy second quarter earnings. Its CEO said the solid performance had the company poised for an initial public offering by the end of this year.

Chrysler reported net income of $507 million for the second quarter, up 16 percent from the same period a year earlier. The company said modifications it needs to make to the Jeep Cherokee and Liberty models to prevent fires will take a bite out of earnings for 2013.

CEO Sergio Marchionne, who also serves as CEO of Italian automaker Fiat, which has a controlling stake in Chrysler, said the company is preparing paperwork for its long-awaited IPO. "November or December would be the ideal time" for the Chrysler listing, said Marchionne.

Will there be demand for Chrysler stock? Auto stocks have underperformed the market the last two years except for Tesla Motors. And General Motors, which along with Chrysler was the beneficiary of taxpayer-assisted bankruptcy in 2009, has not enjoyed great demand for its shares until recently.

For more on Chrysler's fortunes, get the rest of the story at AOL Autos.

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Thomas Stieglitz

After they screwed the bondholders the last time, I would think that a person would have to be awfully desperate to lose money to invest in them. Once again, the public has already made this investment thru their tax money so now the charlatans want you to buy your own stock back. Nice scam.

July 31 2013 at 9:54 AM Report abuse rate up rate down Reply
lrf54

that is good to hear. the only bad news is it is still controlled by fiat. all the us money obama sent them we should have had controlled by us.

July 31 2013 at 9:53 AM Report abuse rate up rate down Reply
burkeantsv

Prior to investing in Chrysler, DD what they did to the SECURITIZED bondholders last time around.

July 31 2013 at 9:22 AM Report abuse +1 rate up rate down Reply
endlessdrip

I missed my chance to buy Chrysler stock at $2.50 a share back in 1973. I won't make that mistake again.

July 31 2013 at 9:02 AM Report abuse +1 rate up rate down Reply
Jim

PSSST.. Hey folks. If someone erased all of your debt and infused your accounts with cash, you would do great for a while too!

July 31 2013 at 8:02 AM Report abuse rate up rate down Reply
rkeeeballs

Chrysler....rocking the auto world....AGAIN ! .... :>)

July 31 2013 at 7:58 AM Report abuse +2 rate up rate down Reply
toosmart4u

Way to go Chrysler. An American company doing good. We must be proud of all Americn made goods.

July 31 2013 at 5:54 AM Report abuse +2 rate up rate down Reply