Chrysler lost $84 million in the July-September period compared with a loss of $172 million in the previous quarter. Chrysler’s revenues rose 5.2 percent to $11 billion. The company compared results with the second quarter rather than the prior year because this was the first time since 2006 it has reported third-quarter earnings.
The Grand Cherokee debuted in June to strong reviews, and buyers responded to the upgraded interior as well as advancements like a hydraulic system that lifts the vehicle up if the driver wants to go off-roading. Sales were up 41 percent through October; by comparison, industry wide sales of SUVs and crossovers were up 18 percent, according to Autodata Corp. Ram truck sales also were strong.
“We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee,” Chrysler CEO Sergio Marchionne said in a statement. “Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive automaker.” Chrysler’s sales dropped slightly from the second quarter, but that is typical for this time of year. More important, the company said it gained US market share for the fifth consecutive quarter. Chrysler now holds 9.6 percent of the US market. That figure is up from the 7 percent share it held last summer after it exited bankruptcy but down from nearly 13 percent three years ago.
Auburn Hills, Michigan-based Chrysler, which has been managed by Italian automaker Fiat SpA since it left bankruptcy protection last year, said it expects to make a pre-tax profit of $700 million this year, up from a previous forecast of $200 million. It also expects to end the year with $500 million in positive cash flow, up from an initial prediction that it would run through $1 billion in cash.
