Car sales picked up the pace in November but will it last? The annual rate of 13.8 million sales we might have turned the corner to better days ahead. Chrysler was up a staggering 45 percent and that isn’t a misprint.

From the Detroit News:

November shaped up to be a strong month for U.S. auto sales with all major automakers except Honda Motor Co. reporting better results than a year ago.

Honda’s sales of 83,925 were down 6 percent from a year ago, largely on inventory woes due to flooding in Thailand.

Chrysler Group LLC reported a whopping 45 percent sales increase in November in the first results of what is expected to be one of strongest months of the year for U.S. vehicle sales.

Conversely, General Motors Co. only saw sales grow 7 percent compared with a year ago.

Ford Motor Co. sits in the middle with total sales of 166,865, up 13 percent from 2010 results.

Toyota Motor Corp. said its sales were up 6.7 percent in November on volume of 137,960 units.

Chrysler, the biggest gainer for the month, sold 107,172 vehicles in November, the automaker’s sixth consecutive month of best year-over-year sales this year.

“With sales up 45 percent, November was another huge month for the Chrysler Group and our highest year-over-year sales gain of 2011,” said Reid Bigland, head of U.S. sales.

Strong sellers for the Auburn Hills automaker included the Chrysler 300 and 200 sedans, which contributed to the Chrysler brand’s 92 percent hike over last year and best November since 2008. Also boosting sales were the Dodge Charger, Avenger and Durango. The Fiat 500 notched 1,618 sales for the month.

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Although the economy continues to lurch toward recovery at a snail’s pace, some automakers are defying expectations, and posting big gains on the sale charts. For the month of October, the big winners were Chrysler and Volkswagen. Chrysler sold 21,244 cars last month, a 28% increase when compared to October of 2010. High demand for the recently revised 200 and 300 sedans and high incentives helped bring traffic to the showrooms.

Volkswagen was another winner. They sold 28,028 cars last month, a 40% increase from October of last year. Volkswagen points to strong sales of their recently redesigned Passat sedan as the reason for drawing more sales. The good news is not expected to stop as November starts either.

Many automakers and analysts expected strong October sales, and are claiming high sales to continue through November. Although the economy is still a blight on auto sales, analysts expect outside variables to drive sales forward. First, they claim there is a lot of pent up demand for new vehicles since the age of the average car in this country is 11 years old. Secondly, inventory levels are returning to pre-quake levels for the Japanese manufacturers. Finally, a combination of high used car prices and incentives on new car purchases may sway consumers to purchase new cars instead of used ones. The fourth quarter of this year for automakers is shaping up to be much better than expected.

Source: Automotive News

Behind the scenes look at how Chrysler broke away from government control.

From AutoNews.com:

NEW YORK – On the morning of May 24, an upbeat Sergio Marchionne was combing his music library to compile a playlist for an employee event that afternoon at Chrysler Group LLC’s headquarters.

As the chief executive settled on Bruce Springsteen’s version of “Eyes on the Prize,” he received a phone call with long-awaited news: Chrysler finally repaid $7.6 billion of bailout loans from the U.S. and Canadian governments.

That day marked a new chapter in the comeback of the smallest of Detroit’s three automakers, the one the Obama administration wasn’t sure was worth saving back in 2009.

It was the Italian businessman’s deep involvement in Chrysler, and Fiat SpA’s willingness to put in $1.27 billion, that helped the company pull off one of the largest debt deals since the financial crisis — winning the backing of some of the same banks that were wiped out in its bankruptcy.

Investors who looked at the deal were initially skeptical about the large size of the financing as Chrysler still had to address concerns over its vehicle lineup and financial outlook, people involved in the process said. There were also questions over whether the company had really transformed itself.

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Chrysler is rockin’ the sales charts with an increase of 10% in May, totally bucking the trend. Jeep sales are on fire and cars like the new 2011 Chrysler 200 are selling well.

AUBURN HILLS, Mich., June 1, 2011 /PRNewswire via COMTEX/ — Retail sales up 27 percent in May compared with same month a year ago

May marks the 14th-consecutive month of year-over-year sales gains

New 2011 Chrysler 200 sales up 154 percent compared with sales of its predecessor a year ago; retail sales of the Chrysler 200 increase more than five fold

Chrysler brand named “Top Popular Brand” in 2011 AutoPacific Vehicle Satisfaction Awards

Jeep® brand sales up 55 percent compared with sales in May 2010

All current Jeep brand models post May sales increases, led by the all-new 2011 Jeep Grand Cherokee, whose sales were up 192 percent versus a year ago

Jeep Grand Cherokee wins “Premium Mid-size SUV” category in AutoPacific Vehicle Satisfaction Awards

New 2011 Jeep Compass posts 92 percent year-over-year sales increase, second highest percentage increase for Jeep brand models

New 2011 Dodge Journey crossover voted “Family Car of Texas” at the Texas Auto Writers Association “Spring Roundup”

Ram Truck brand posts a 13 percent increase versus a year ago, the brand’s 13th consecutive month of year-over-year sales gains

2012 Fiat 500 voted “Best Value” and “Best New Design” at the Texas Auto Writers Association “Spring Roundup”

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Chrysler is back in the black with a Q1 profit of over $100 million!

From the Detroit Free Press:

Chrysler said today it earned $116 million during the first three months of the year, giving the company its first profit since emerging from bankruptcy in 2009, as well as details about its debt refinancing plans.

The profit compares to a $197-million loss for the same January-March period last year and represents a major milestone for a company that filed for Chapter 11 bankruptcy almost two years ago.

Chrysler and Fiat CEO Sergio Marchionne said the results boosted the morale of the company’s management team when he announced them at an 8:30 a.m. internal meeting.

“I think it’s fair to say that the mood is one of pride and I guess comfort in knowing that we are executing according to the plan,” Marchionne said during a conference call with analysts and journalists. “I can’t even put a price on that kind of stuff … but success is incredibly temporary. The first quarter is done, but we have a lot of quarters to do.”

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Chrysler Corporation has been beat up the last decade in so many ways it’s almost wrong. The merger with Daimler did not go as planned for either company and then right before the economic tsunami hit, Chrysler is purchased by equity firm Cerberus. Most people outside of the auto industry had no idea who Cerberus was and they still don’t have any idea who they are today. Cerberus knew very little about running an automaker and it showed, so when they bailed on Chrysler and her employees it turned out to be a blessing in disguise. Almost everyone knows that Chrysler went through bankruptcy in 2009 and were on the brink of extinction when an agreement to take over the company was reached with Fiat. Heck, they basically shut down all production in December 2008, which had many in the industry pondering whether Chrysler could ever recover! Fast forward to December 2010 and now things have turned around for the Pentastar.

Chrysler is now run by Sergio Marchionne, who orchestrated a turnaround at Italian car maker Fiat and is now in the midst of doing the same with Chrysler but on a larger scale. We say “larger” because this turnaround will also include Fiat, as Mr. Marchionne is not finished his work in Turin either. There is new and consistent process and leadership with the Fiat World Class Manufacturing System working it’s way into all aspects of Chrysler’s facilities with a real focus on quality, which translates into “a new day has arrived.” On the design side, hopefully there are no more redesigns like the weak Sebring and no more allowing well-built and designed vehicles wither on the vine with shabby updates using cheap materials. Enter Fiat’s multi-air engines, which are reliable and fuel efficient. There’s reason for optimism in the halls of Chrysler. The culture is surely going through some changes at breakneck speed, but when you hear about what Italian export Mauro Pino is accomplishing at Chryslers Toledo, OH plants you can understand that real progress is taking place at all levels of the “New Chrysler”.

Chrysler sales in 2010 are up almost 20 percent from 2009 and with eleven all-new or seriously refreshed Chrysler, Jeep, Dodge, Ram Truck and Fiat vehicles to be launched during the fourth quarter of 2010 and first quarter of 2011, the march is on for a larger slice of the market. Also in the mix is the venerable Fiat 500, which will add some flair to the Chrysler/Fiat stable and don’t be surprised if that little 500 becomes a cult hit. Many thought the days were numbered for Chrysler and it wasn’t easy to change perceptions but in the auto world, many are taking notice of what Chrysler and all of her brands are building and selling.

The Dodge brand has seen sales steadily climb and has new product that could seriously put them on a roll with the gorgeous 2011 Dodge Durango, the stylish and tough-looking 2011 Dodge Charger, the sharp crossover 2011 Dodge Journey, the new 2011 Dodge Avenger, the upgraded 2011 Dodge Grand Caravan, and the badass Dodge Challenger SRT8 392. We had a chance to drive some of these cars and were very impressed. The 2011 Dodge Charger is the flagship of the Dodge brand and appears to be ready to rock and roll in the sales department, with a re-design that looks awesome.

The big daddy of them all at Chrysler is the 300 and we’re going to have a bird’s eye view of the new machine at the North American International Auto Show in Detroit on January 10th, 2011. Some of the photos that have been released show a very sleek 2011 Chrysler 300, with a grille that features seven horizontal liquid chrome blades and a new Chrysler wing badge and a stunning totally new interior that is garnering plenty of praise early on in the 300′s unveiling. Look for plenty of coverage of the Chrysler 300 on Bullz-Eye.com during the Detroit Auto Show in January 2011.

There is no longer just a bunch of folks crossing their fingers hoping that the U.S. Auto Industry can recover, but rather we are witnessing a real strengthening in sales with Chrysler/Fiat positioning themselves for a renaissance that is truly American and amazing! The competition is fierce and we know this firsthand, as we continue to drive, test and review many makes and models from top flight auto producers. But that doesn’t take away from the fact that Chrysler/Fiat is building something for the long term and they have an edge right now that they can’t lose if they want to be stronger than they’ve been in decades.

From the Detroit Free Press:

Chrysler’s chances of ending its sales decline and returning to profitability should become clearer Wednesday, when Fiat is to lay out a five-year business plan.

The strategy for the Fiat, Alfa Romeo and Lancia brands is expected to reveal new details about the vehicles Chrysler’s North American factories will build. Also expected are details of Alfa’s return to the U.S. market, plus future product lines for Chrysler, Dodge, Jeep and the new Ram commercial-vehicle brand.

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We feel the barometer will be how well the Fiat 500 performs when hitting the showroom floors later this year!

We all know Chrysler won’t reap the benefits of its alliance with Fiat until 2012, but that doesn’t mean the cupboard is bare. To the contrary.

This year, Chrysler plans to introduce three new vehicles that are acknowledged leaders in their segments and one new model that gets it into a growing and potentially lucrative new market.

The first Fiat model, the 500, will also arrive, giving Chrysler dealers a sophisticated and chic little car that’s smaller and considerably less expensive than the Mini Cooper.

Read the full article here.