Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Chrysler continues to run loss

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Chrysler, the U.S.-based automaker partnered with Fiat following its bankruptcy filing, announced Monday that it continued to lose money in the most recent quarter, but added that it expects to raise guidance for 2010.

Chrysler Group LLC said its net loss was $172 million in the second quarter, a decrease from the loss of $197 million in the prior quarter.

But the company said it managed to increase its operating profit to $183 million in the second quarter, a $40 million improvement over the first. Chief Executive Sergio Marchionne said this was a sign of "stability" in what he called a "year of transition."

The company said it expects to "upgrade" its guidance for this year when it announces third-quarter earnings.

Hard-hit Chrysler was rescued by the U.S. government last year in a $12.7 billion bailout. A minority stake was sold to Fiat as part of the bailout.

"The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead," said Marchionne, who is also the CEO of Italian automaker Fiat.

Marchionne said Chrysler is launching 16 new or "refreshed" products this year, including the 2011 Jeep Grand Cherokee, launched in May and manufactured in Michigan.

The company also said that it will keep its Sterling Heights, Mich., plant open beyond its previously planned closing in 2012, as it works to "finalize" tax incentives with city and state officials. Chrysler said it will add 900 jobs at the assembly plant next year. To top of page

Search for Jobs

Index Last Change % Change
Dow 20,550.98 -45.74 -0.22%
Nasdaq 5,840.37 11.63 0.20%
S&P 500 2,341.59 -2.39 -0.10%
Treasuries 2.37 -0.03 -1.12%
Data as of 10:50pm ET
Company Price Change % Change
Bank of America Corp... 23.03 -0.09 -0.39%
Ford Motor Co 11.46 -0.16 -1.38%
Micron Technology In... 28.76 0.33 1.16%
Advanced Micro Devic... 13.70 0.00 0.00%
Freeport-McMoRan Inc... 12.21 -0.60 -4.68%
Data as of 4:15pm ET
Sponsors

Sections

Legendary investor Bill Gross has reached an $81 million truce with Pimco, ending a war with the firm he built into the world's biggest bond manager. More

Republicans and the White House have been talking about the next big thing they'll address: tax reform. But their biggest focus seems to be tax cuts. More

For 25 years Miguel Caballero has been outfitting the world's VIPs with his stylish, bulletproof clothing line that shares his name. More

The New York property, which was the first home of the 45th president of the United States, was purchased on March 23 for $2.14 million -- a nearly 54% profit for the previous owner who bought it just month's earlier. More