Chrysler Group LLC announced today that its profits in Q3 shot up 80% to $381 million from $212 million a year ago. Conversely, the big jump in net income came on a more modest rise in revenue, up 18% to $15.5 billion, from $13.1 billion a year ago. What all these numbers mean is that Chrysler is not only increasing sales, but it is achieving better profit margins on what it sells. Chrysler noted that the good reviews for its Jeep Grand Cherokee, the updated 2013 Ram pickup and the 2013 Dodge Dart have boosted sales and should help continue momentum.
Among all these excellent numbers is something that is a lot less appealing. In Consumer Reports "predicted reliability" ranking, that was announced Monday, showed all four Chrysler brands in the bottom half of the 28 brands rated. Jeep was the top Chrysler nameplate, at 19th. Chrysler, Dodge and Ram circled the drain at 23rd-25th. With these types of rankings it's hard to shake the stereotypes that auto's out of Detroit are "less than" than the over seas makes.
Chrysler CEO Sergio Marchionne said, "We've changed the conversation at Chrysler Group. We have revamped our product lineup with such segment-defining models as the Jeep Grand Cherokee and the Chrysler 300. Critics and consumers already are responding positively to the Dodge Dart and to the 2013 Ram 1500, with its best-in-class fuel economy." To echo Marchionne's words and refresh everyone's memory, the 2013 Dodge Dart and Ram both are on the short list for the North American Car and Truck of the Year, selected by a jury of 50 auto journalists and announced at the Detroit auto show in January.
Chrysler Group LLC said it expects to sell 2.3 million to 2.4 million vehicles globally this year, generating $65 billion in revenue and providing a full-year net income of $1.5 billion. Those look like some pretty good numbers.
Source: USA Today