Chrysler, which went into bankruptcy in the US less than a year ago, will be profitable again by the end of 2011.
The company, which also received bail out loans from the US government, was rescued from bankruptcy by Italian car giant Fiat whose boss Sergio Marchionne said he expected to pay those loans back soon.
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Speaking at the Detroit show, he said: “I expect that if all goes to plan we will be able to repay the US government loans during 2011.”
Marchionne has said many times that he expects more consolidation in the car industry as companies merge and form alliances. This is still the case, he added, but he expects this year to be quiet on this front.
“A lot has happened over the past year and I think 2011 should be a lot quieter to give the industry time to settle again.”
He admitted, however, that Fiat is still in the market for acquisitions if the right opportunities present themselves. “We have the money,” he said.
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By GlobalDataMarchionne also predicted that sales markets will be a lot more stable this year. “We should see some return to economic normality although there are still some problems to sort out in Ireland, Spain and Portugal. We need these issues to go away because we don’t want them nagging in the background.
“I think the gradual recovery in the market this year will be a benchmark for Europe in 2012.”
