agent Entrepreneur logo
MenuMENU
SearchSEARCH

Chrysler to Post a Profit for Q2

July 22, 2010
2 min to read


Chrysler Group LLC next month will report a second-quarter operating profit, Sergio Marchionne, chief executive of Chrysler and partner Fiat SpA, said Wednesday.


It marks the second consecutive uptick for Auburn Hills, Mich.-based Chrysler, which lost $197 million in the first quarter but showed signs of a turnaround with an operating profit of $143 million. The results show continued growth for a company that suffered a net loss of $3.785 billion in 2009, the year it used bankruptcy to shed debt, The Detroit News reported.

Ad Loading...


Analyst Erich Merkle, president of Autoconomy in Grand Rapids, said "Chrysler is doing remarkably well in sales."


Even though many of its vehicles are sold as part of fleet orders, with lower margins, they likely are profitable for the downsized automaker, he said.


"They are likely making money from fleet sales now, while it was impossible to do before bankruptcy," Merkle said.


Fleet sales also buy time until Chrysler gets its new and updated vehicles to market. Many are arriving in the fourth quarter.


Chrysler will report its second-quarter earnings Aug. 9, Marchionne said Wednesday in a call to release Fiat's earnings.

Ad Loading...


Fiat surprised analysts with its strong quarterly profits, largely on the strength of the agricultural and industrial divisions that will be spun off from the automotive group by Dec. 31. Net profit was $115.6 million, compared with a loss of $215 million in second-quarter 2009. Net revenues were up 12.5 percent, to $19 billion.


The company may raise its 2010 forecasts in the third quarter, Marchionne said.


He has also said he expects to raise Chrysler forecasts, if the new 2011 Jeep Grand Cherokee sells well.


Marchionne gave the Fiat update from Auburn Hills, where he hosted the Fiat board this week. Board members visited Chrysler's headquarters and toured the Jefferson North Jeep plant in Detroit, which has implemented Fiat's World Class Manufacturing system, focusing on eliminating waste and bottlenecks.


"The board was here and had an opportunity to visit the Jefferson North plant to see the first visible signs of World Class Manufacturing in the American context," Marchionne said.

Ad Loading...


Tuesday night, the board approved a plan, announced in April, to separate its industrial holdings into a new company. The split is intended to better realize the value of the different types of business within the Fiat Group.

More Industry

Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...
Photo of multiple new SUVs on a car dealership lot
Industryby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Ad Loading...
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Ad Loading...