Chrysler earnings rise 16%, production falls behind

Chrysler earnings rise 16 percent production falls behindThe third largest automobile maker, Chrysler Group announced a profit rise of 16 percent yesterday due to large demand of Jeep S.U.Vs and Ram pickups.

Chrysler reported a net profit of $507 million, up from $436 million last year. Based in Auburn Hills, Michigan, the company’s quarterly revenue amounted to $18 billion which is an increase of seven percent from $16.8 billion, said New York Times. The company said the adjusted operating profit went from $755 million last year to $808 million this year.

“We’re relatively satisfied with the performance of Chrysler this quarter,” Sergio Marchionne, chief executive officer of Chrysler said, “It’s safe to say that the second quarter was in line with internal expectations.”

According to NY Times, Chrysler sold 643,000 vehicles in the second quarter. Sales increased 10 percent in the U.S. where the company sells 75 percent of its vehicles.

The same quarter buyers of Chrysler vehicles paid an average of $29,100. Marchionne said the company benefitted most from the sales of Jeep Grand Cherokee. According to SF Gate, the average buyers paid for Jeep Grand Cherokee was $40,294.

While Grand Cherokee sales rose 27 percent, Ram sales rose 30.4 percent.

The overall expected revenue for Chrysler for the full year is between $72 billion and $75 billion, SF Gate says.

While Chrysler says it expects to ship about 2.6 million vehicles, it expects to earn between $1.7 billion and $2.2 billion in the year 2013, a slight decrease from the original $2.2 billion, according to SF Gate.

“Chrysler Group is poised for a very strong performance in the second half of the year,” Marchionne said.

The 2014 Jeep Cherokee happens to be a month behind in production while the profit of the company rose.

According to Auto World News, Chrysler began production on June 24 and is expected to release the model in September.

They said the new Cherokee will be the first model with a nine-speed transmission, with a 2.4-liter inline four-cylinder engine or with the new 3.2-liter Pentastar V6.

Marchionne said that though the “media drive timing” has fallen behind, the company will continue production due September.

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Drew is a regular contributor covering trending topics.