Chrysler Group Chairman and CEO Sergio Marchionne (left) talks with Conner Avenue Assembly Plant employee Emidio Cardillo (center) during a visit to the plant to celebrate the start of production of the 2013 SRT Viper on Jan., 10, 2013. (Photo: Chrysler)
DETROIT — Chrysler Groups net income rose 22 per cent in the third quarter as strong sales of the Ram pickup and Jeep Grand Cherokee masked weaknesses elsewher in its lineup.
Chrysler said Wednesday that it earned $464 million in the July-September period. It was the Auburn Hills, Mich.-based companys ninth consecutive profitable quarter.
Worldwide vehicle sales for the third quarter were 603,000, up 8 per cent from a year ago. The companys sales outside North America jumped 20 per cent to 82,000.
Overall, however, it was a lacklustre quarter in the U.S., wher Chrysler does three-quarters of its business. Chryslers sales rose 7.7 per cent, lagging the total industry increase of 12 per cent. The Chrysler, Dodge, Jeep and Ram brands saw sales increases, but Fiats U.S. sales fell 7.5 per cent. Chrysler didnt gain any U.S. market share during the quarter.
The company delayed shipments of its new small SUV, the Cherokee, so it could fix issues with the vehicles new nine-speed transmission. The Cherokee was supposed to go on sale in September, but Chrysler finally began shipping Cherokees last week.
But booming sales of the Ram and Jeep Grand Cherokee, which were both recently updated, helped boost Chryslers results anyway.
U.S. sales of the Ram rose 23 per cent in the third quarter compared last year, and Chrysler also made more per truck, Kelley Blue Book said. Buyers paid an average of $36,724 per truck in the third quarter, up 5.3 per cent from a year ago.
Jeep Grand Cherokee sales also rose 30 per cent, and buyers paid 9 per cent more, or $40,175 per vehicle, for the revamped SUV.
Chrysler reaffirmed its full-year guidance. The company expects a full-year profit of between $1.7 billion and $2.2 billion on revenue of between $72 billion and $75 billion.
