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Mon October 29, 2012
Chrysler's third-quarter profits up 80 percent
A third-quarter earnings report from Chrysler shows that profits are up 80 percent from last year.
The automaker earned $381 million over the past quarter, up from $212 million for the same period last year.
Brent Snavely from the Detroit Free Press has more:
The Auburn Hills automaker, which emerged from Chapter 11 bankruptcy in June 2009 with the assistance of federal loans, has rebounded faster than almost anyone expected.
The company has added more than 16,400 jobs as its U.S. sales have increased during the last 30 consecutive months.
“We’ve changed the conversation at Chrysler Group,” Fiat and Chrysler CEO Sergio Marchionne said in a statement. “We continue to work feverishly and are pleased to see that our all-consuming aspiration for excellence is translating into results.”
Chrysler has been buoyed by a 13 percent increase in U.S. sales. With the majority of its sales coming domestically, the company has avoided the European losses miring Ford and GM, the AP reports.
The Detroit News reports that the earnings report bodes well for Chrysler employees.
Monday's results mark the third consecutive quarter of solid profitability for the company, which means the 26,000 members of the United Auto Workers employed in Chrysler's factories are one step closer to receiving the rest of their signing bonus as stipulated by the unions 2011 agreement with the automaker.
"Based on third-quarter earnings, Chrysler Group LLC confirms that it has met three quarters of the financial threshold required to pay the second half of the UAW contract ratification bonus," said company spokeswoman Jodi Tinson in a statement.
On Friday, Chrysler announced it would be adding a third shift and 1,100 jobs to its Jefferson North Assembly Plant in Detroit.
- Jordan Wyant, Michigan Radio Newsroom