In Q4 2010 however Net Revenues decreased 2.3 percent to $10,763 million, as compared to Q3 2010, with the Chrysler Group putting this down primarily to reduced shipment volumes as it launched production of 11 facelifted vehicles. Total year 2010 Net Revenues were $41,946 million, in line with full year 2010 guidance.

The company posted a Modified Operating Profit of $198 million in Q4 2010 and $763 million for total year 2010. The Q4 2010 operating performance, in comparison to Q3 2010, was driven primarily by improved mix and pricing, industrial efficiencies and improved quality, more than offset by lower volumes, increased advertising investment and higher launch costs.

"As Chrysler Group’s brand displays at the Detroit auto show confirmed, the Company has lived up to its promise to launch 16 all-new or significantly refreshed vehicles in the past 12 months,‖ said Sergio Marchionne, Chief Executive Officer, Chrysler Group. "All of these vehicles bear testimony to Chrysler’s rebirth. Given the positive comments we have received to date, it can safely be said that what Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations. However, our job is not yet done. We have a lot of work ahead to fulfill our five-year business plan objectives."

Modified Earnings Before Interest, Taxes, Depreciation and Amortization (Modified EBITDA) in Q4 2010 was $882 million, or 8.2 percent of Net Revenues, a $55 million decrease from Q3 2010; total year 2010 Modified EBITDA was $3,461 million, or 8.3 percent of Net Revenues. Net Interest Expense in Q4 2010 was $329 million, including non-cash interest accretion of $57 million. Net Interest Expense was $1,228 million for total year 2010, including non-cash interest accretion of $229 million.

Cash at December 31, 2010, was $7.3 billion compared to $8.3 billion at September 30, 2010. The decrease primarily reflected anticipated unfavorable working capital impacts at the end of the year due to reduced production volumes as new vehicles were launched. An additional $2.3 billion remains available to be drawn under Chrysler Group’s U.S. Treasury and Canadian and Ontario government loan agreements, bringing total available liquidity above $9.6 billion. Free Cash Flow for the year totaled $1.4 billion, over $2 billion ahead of original guidance.

Gross Industrial Debt at December 31, 2010, was $13.1 billion, an increase of $1.1 billion from September 30, 2010 primarily due to the issuance of promissory notes (totaling approximately $1 billion) to an independent Health Care Trust in connection with transferring the responsibility for certain CAW retiree health care benefits from the company to the trust, which was offset by a reduction in accrued expenses and other liabilities. Net Industrial Debt increased by $2.0 billion to $5.8 billion during Q4 2010.

Worldwide vehicle sales of 374,000 units for Q4 2010 represented a decrease of 7 percent (27,000 units) compared to 401,000 units in Q3 2010, due mainly to reduced fleet volume associated with the new model changeovers in Q4. Total year 2010 worldwide sales were 1,516,000 units. U.S. market share for full year 2010 was 9.2 percent, versus 8.8 percent in 2009. Canadian market share increased to 13 percent for full-year 2010 compared to 11 percent in 2009. Worldwide vehicle shipments in Q4 2010 were 382,000 units, a decrease of 6 percent versus Q3 2010. U.S. vehicle shipments totaled 270,000 units compared to 301,000 units in the prior quarter. Total year 2010 worldwide vehicle shipments were 1,602,000 units.

On October 29, Mexico’s President Felipe Calderon and other government officials joined Chrysler Group executives as Chrysler Mexico confirmed its commitment to the region and country with the inauguration of its sixth manufacturing plant, the new Saltillo Engine Plant in Coahuila, Mexico. The plant, along with the Trenton (Mich.) South Engine Plant, produces the new and advanced Pentastar 3.6-liter V6 engine.

Chrysler Group’s product offensive continued in the fourth quarter with the launch of 11 new or significantly-refreshed vehicles. For the full year 2010, Chrysler Group launched 16 all-new or refreshed vehicles. The new Jeep Grand Cherokee was named "2011 Urban Truck of the Year" by Decisive Media; Four Wheeler magazine editors selected the vehicle as "Four Wheeler of the Year" and The Detroit News named it "Truck of the Year". Additionally, AutoWeek magazine honored the Jeep Grand Cherokee with the "Best of the Best/Truck Award" and the vehicle was a finalist for "North America Truck of the Year" at the North American International Auto Show (NAIAS) in Detroit, along with the 2011 Dodge Durango. Four Wheeler magazine also chose the Jeep Wrangler Rubicon the "Best 4X4 of the Decade".

Seven Chrysler Group vehicles — the new Chrysler 300, Chrysler 200 [Sebring], Dodge Charger, Dodge Avenger, Dodge Journey, Jeep Grand Cherokee and Jeep Patriot — were named Top Safety Picks for 2011 by the Insurance Institute for Highway Safety (IIHS). The IIHS annually recognizes vehicles that do the best job of protecting people in front, side, rollover and rear crashes based on a "good" rating in a series of tests conducted by the Institute. The 2011 Dodge Avenger and Dodge Journey were selected as Top Safety Picks for the third straight year and the Jeep Patriot for the second year in a row.

Ram also received many honors in Q4 2010. In December, Ram’s heavy-duty trucks earned the 2010 Motorist Choice Award for the Active Lifestyle category from IntelliChoice and AutoPacific, and the Ram Heavy Duty earned a 2010 Vehicle Satisfaction Award in the Heavy Duty Pickup category. Off-Road Adventures magazine selected Ram as Manufacturer of the Year and Automobile magazine named the Ram 1500 to its annual list of All-Stars for the second consecutive year. The Ram 1500 remains the most awarded Ram ever. As the new year began, Chrysler Group announced that the Chrysler Town & Country minivan was the top-selling minivan in the U.S. for 2010, and, for the tenth straight year, Polk gave the Town & Country the "Automotive Loyalty Award" in the Minivan Category. Polk also selected the Dodge Challenger for a loyalty award in the Sports Car category.

Production of the Fiat 500 began at the Toluca, Mexico Assembly Plant, in Q4 2010, marking the brand’s return to U.S. and Canada after a 27 year absence. The company has appointed the first 130 of an eventual 165 Fiat dealers in the U.S. and appointed 64 dealers in Canada. Those appointed are in the process of preparing their new facilities for the arrival of the Fiat 500, and will open throughout the first three quarters of this year. The 2012 MY Fiat 500 was revealed at the Los Angeles and Montreal International Auto Shows.

On November 23, employees at Chrysler Group’s Indiana Transmission Plant II in Kokomo, Ind., welcomed President Obama and Vice President Biden to celebrate recent and planned investments in the Company’s Kokomo facilities, resulting in the retention of more than 3,500 jobs. The company confirmed it will invest $843 million in its Indiana Transmission Plants and Kokomo Casting Plant to accommodate production of a new advanced front-wheel drive automatic transmission for future Chrysler vehicles. Chrysler Group and ZF Friedrichshafen of Germany-based ZF Group are partnering on both the 9-speed front-wheel drive and 8-speed rear-wheel drive transmissions. ZF is making its designs and technology available to the company.

Chrysler Group welcomed 2011 with an extensive showcase of its full, reinvigorated product lineup from the Chrysler, Jeep, Dodge, Ram and Mopar brands at the North American International Auto Show in Detroit. The company also featured the new Fiat 500. The auto show marked the world premiere of the all-new 2011 Chrysler 300 sedan and introduction of the new, redesigned 2011 Jeep Compass. The company also kicked off the Jeep brand’s 70th anniversary in 2011, marking the occasion with the introduction of distinctive, unique 70th Anniversary Edition models for each vehicle in its lineup.

On January 10, Chrysler Group announced that Fiat's ownership interest in the Company increased from 20 percent to 25 percent upon the Company’s achievement of the first of three Class B Events outlined in its June 10, 2009 Operating Agreement. This Event related to the certification and start of commercial production of the Fully Integrated Robotized Engine (FIRE) at the Company’s Dundee, Mich., facility. The engine will be first used in the Fiat 500.

The targets for 2011 are as follows: