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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

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