DETROIT — Higher sales of Jeeps and other new vehicles propelled Chrysler to its first annual net income since 1997, capping a pivotal turnaround that many thought would never happen.
The U.S. automaker, now privately held and majority owned by Italy’s Fiat SpA, earned $183 million last year, reversing a $652 million loss in 2010, its first full year out of bankruptcy protection.
Just three years ago, Chrysler was close to running out of cash and heading for the auction house. But a government-funded bankruptcy cut debt and expenses, and Chrysler spent last year rolling out 16 new or revamped models to boost sales. Now, the company is expanding into small cars and adding jobs.
Chrysler expects an even better 2012, despite a sluggish and uncertain economy. The company, which sells most of its vehicles in the U.S., predicts it will make about $1.5 billion this year and increase revenue 18 percent.
“We’re looking at 2012 with some degree of optimism,” chief executive Sergio Marchi onne said Wednesday. “It’s not going to be a walk in the park, … but I think we’ve got all the elements in place.”
He said that employees, both hourly and salaried, would get bonuses based on the last year’s profit, but he wouldn’t reveal the amounts.
Marchionne cautioned that costs will rise in 2012. It will spend billions to promote the new Dodge Dart compact car and to develop a slew of new cars and trucks that will hit the market next year.
Chrysler spent much of 2010 designing new vehicles and trying to spruce up an archaic lineup that wasn’t selling well.
