The Chrysler Group LLC today posted a $212-million profit in the third quarter which marks a significant improvement from a net loss of 84 million dollars a year earlier and the second profitable quarter this year.
In Q3 of 2010, the privately held company lost $84 million, but Chrysler, now run by Fiat SpA, the largest Italian automaker, said its fortunes have improved because of increased demand for its new or revamped Chrysler, Dodge, Jeep and Ram cars and trucks.
Group worldwide vehicle sales hit 496,000 in the quarter, up 24 percent from the same period of last year, bringing its U.S. market share to 11.4 percent. In Canada, market share rose 14.5 per cent from 12.8 per cent.
Automotive sales in the United States, Chrysler’s largest market, have sputtered all year at an annual rate of around 12.5-million vehicles as debt-weary Americans hold onto their vehicles longer.
The Company reported a Modified Operating Profit of $483 million for the quarter, or 3.7 percent of net revenue, up from $239 million, or 2.2 percent of net revenue, in 2010.
The announcement comes shortly after The United Auto Workers yesterday ratified a new four-year labor contract with Chrysler. Under the new contract, Chrysler’s skilled-trades workers will be assigned to one of three work groups and one of five classifications. The automaker will eliminate 27 classifications such cement finisher, furnace repairer, brickmason and carpenter will be eliminated.
Chrysler LLC sales in USA – September increased 27.2% to 127,334 from 100,077 vehicles a year ago. Sales of cars increased 12.4% to 33,217 and light truck sales soared 33.4% to 94,117.
For the year so far, sales increased 23.1% to 1,009,411 from 820,220.