Chrysler Reports Upbeat Third Quarter

Following its recent takeover by Fiat, Chrysler seems to be doing a lot better financially. The automaker's third-quarter results it released today show fewer losses for the bottom line and an increase in operating profits. As a result, the company has upped its forecast for the full fiscal year.

Chrysler’s net losses only amounted to $84 million (EUR61 million) in the third quarter, less than half of the $172 million (EUR123 million) lost in the previous one. Thus, the company now hopes to end the year with a $700 million (EUR502 million) operating profit. Net revenues also increased by 5 percent to $11 billion (EUR 7.6 billion). This comes as a result of a rise in operational profits of $56 million (EUR40.1 million).

"A year ago, Chrysler Group laid out clear and concise five-year financial goals, and after three consecutive quarters of better than forecast results, we are not only living up to our commitments but we are also exceeding our 2010 financial objectives," said Sergio Marchionne, Chrysler CEO, at the conference announcing the company’s results.

The company’s future economic fortunes will be based on the success of the new model line-up. The launch of the all-new 2011 Jeep Grand Cherokee and the inauguration of new Fiat dealerships all over the US should ensure the company’s image can only improve in the coming years.

Chrysler saw a 1 percent decline in global sales in the third quarter (to just 401,000 units) but Jeep and Ram sales were up slightly. The company now has a 9.6 percent share of the total U.S. auto market, up 0.2 percent from the last quarter.