Chrysler said it cut its losses in half between the second and third quarters, thanks to the strong-selling Jeep. The car manufacturer released a new full-year profit forecast, saying it will end the year with more than triple the operating profit from its last forecast.
The new Jeep is the first in a series of nearly a dozen cars and trucks to be released, including an Italian designed car to be introduced on the US market by December. Chrysler relies on new releases to survive and hopes they are at least as successful as the Grand Cherokee, whose sales increased by more than 40 percent this year.
The 2011 Grand Cherokee was released in June, being highly appreciated by the media and consumers alike. Most of its positive criticism is due to the upgraded interior in addition to advancements like a hydraulic system that lifts the vehicle up if the driver wants to go off the road. October sales were up by 41 percent, while industry-wide sales of SUVs and crossovers were up 18 percent.
"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 Group LLC posted an $84 million loss in the July-September period, compared to a loss of $172 million in the previous quarter.
Chrysler increased its market share for the fifth consecutive quarter, holding 9.6 percent of the US market. The figure is up from a 7 percent share it held last summer, after it exited bankruptcy, but down from almost 13 percent three years ago.
The company has been managed by Italian automaker Fiat SpA since it left bankruptcy protection last year and expects a pre-tax profit of $700 million this year, up from a previous forecast of $200 million.
The fourth quarter of the financial year will be a testimony of Chrysler's staying in power, as the company will unveil 11 new or revised models. While the Jeep Grand Cherokee's sales were high, this does not come as a surprise, since Jeep had some of the most loyal customers industry-wide. Hopefully the rest of Chrysler's lineup will enjoy the same popularity as the Jeep.
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