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

Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Ad Loading...
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
A fan of $100 bills sitting on a white envelope
Industryby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
Ad Loading...
newspaper advertisement circled in pink, Turn Listings into Leads, F&I and Showroom
Industryby Lauren LawrenceAugust 5, 2026

Structure Leads to Optimized Auto Listings

As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.

Read More →
Photo of woman counting cash with a calculator sitting on a desk in front of her
Industryby Hannah MitchellJuly 30, 2026

Consumers Mixed on Economy, Finances

A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.

Read More →
blue map of Europe with outline of an electric vehicle powertrain on top, Closing the Powertrain Gap, Agent Entrepreneur
Industryby Lauren LawrenceJuly 30, 2026

EVs Closing the European Gap

Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.

Read More →
Ad Loading...
a line of people sitting down with paperwork in their hands
Industryby Lauren LawrenceJuly 27, 2026

Early Intervention Saves Retention

Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.

Read More →
Ad Loading...