Chrysler Pares Losses but Remains in Red

The company trimmed its quarterly losses by $25 million from the first three months of 2010 and said it was seeing more customers in its dealerships, helping it post an operating profit.

Chrysler reported on August 9 a net loss of $172 million in the second quarter, a smaller loss than in the first quarter of the year.

One year after it left bankruptcy, Chrysler trimmed its quarterly losses by $25 million from the first three months of 2010 and said it was seeing more customers in its dealerships, helping it post an operating profit.

"The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead," said CEO Sergio Marchionne.

Operating profit -- which excludes taxes, interest and other charges -- was up $40 million to $183 million between April and June.

Marchionne said he now expected the roll-out of new models to drive growth for the rest of the year. "Customer traffic in our dealerships and confidence in the company's future continued to grow with the launch of the all-new 2011 Jeep Grand Cherokee, one of the signature vehicles for Chrysler Group," he said.

"2010 is seen as a year of transition and stabilization. With most of our 16 all-new or refreshed products launching later this year... Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand."

Worldwide sales rose around 22% in the second quarter, to 407,000 units, as U.S. market share climbed slightly to 9.4%, from 9.1%.

Copyright Agence France-Presse, 2010

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