Yesterday, Bloomberg News reported that Fiat "is considering building Chrysler models in Italy, including Jeeps, for export to North America." Today, that news became real when company CEO Sergio Marchnionne announced, in Bloomberg's words (in paragraph 6, subtitled "Italy's Jeep"), that it will "build a small Jeep in Italy for export beginning in 2014 ... a new model for Europe and the U.S. that isn’t currently in production."
Of course, today's Bloomberg report led with Marchionne's clever denial about the company's plans for manufacturing in China: "Jeep production will not be moved from the United States to China." No, he has instead set the stage for newer Jeep models exported to the U.S. to gradually supplant older models made in the U.S. over several years. This should be an embarrassment to those who engineered the Obama administration's bailout of Chrysler in 2009, ripping off secured creditors in the bankruptcy process and thereby giving Fiat a larger initial share of the company than it deserved. But don't worry, Colleen Barry at the Associated Press is there with vague language to ensure that this news doesn't become general knowledge (bold is mine):
Chrysler Reports $4 Billion Loss Since Exiting Bankruptcy
Chrysler Group LLC lost nearly $4 billion since exiting bankruptcy last year, but the company reported a first-quarter operating profit this year and increased its cash reserves, bolstering Chief Executive Sergio Marchionne's claim that the auto maker will break even by the end of the year.
That $4 billion consists of $3.78 billion in the last 205 days of 2009 and $197 million during the first quarter of 2010. The WSJ and Bennett basically did a nice job, though I have a problem with companies trumpeting "operating profit" when there is an "actual loss."
I wonder if the Associated Press's headline and the opening paragraph from AP reporters Tom Krisher and Colleen Barry presented the situation as well as the WSJ?