Chrysler Q2 net loss widens after repaying debt
Chrysler Group LLC, controlled by Fiat SpA, reported a second-quarter net loss Tuesday after the U.S. automaker repaid $7.6 billion US in loans to the U.S. and Canadian governments.
In May, Chrysler repaid the government debt stemming from its 2009 federal bailout. Excluding a $551 million charge related to the debt repayment, Chrysler reported an adjusted profit of $181 million.
"We are changing both the image and substance of our company in order to regain the faith of consumers," Chief Executive Sergio Marchionne, who also leads Fiat, said in a statement.
Chrysler, whose brands include Jeep, reported a net loss for the second quarter of $370 million, compared with a net loss of $172 million a year earlier.
The company's revenue rose 30 percent from a year earlier to $13.7 billion. Average transaction prices jumped 7 percent in the quarter.
The Auburn Hills, Michigan-based company reported a 19-percent increase in worldwide vehicle sales, helped by sales of the Jeep Grand Cherokee, Chrysler 200 and the Dodge Durango in the company's biggest market, the United States.
Those vehicles were part of Chrysler's 16 new and revamped products that it unveiled in late 2010. The U.S. automaker is now in the midst of developing a smaller sedan that will compete with Honda Motor Co's Civic and Toyota Motor Co's Corolla.
Chrysler emerged from a federally funded bankruptcy more than two years ago under management of Fiat. The Italian automaker, which is also reporting quarterly results Tuesday, last week took majority control of Chrysler.
No. 2 U.S. automaker Ford Motor Co also reported second-quarter earnings Tuesday, beating Wall Street expectations by 5 cents a share. Ford's net income fell to $2.4 billion in the quarter, or 59 cents per share, from $2.6 billion or 61 cents per share a year ago.