Chrysler Groups announced its earnings for the first quarter were $166 million, which was down over 65%. Revenue was $15.4 billion, which was down 6%.
Chrysler announced that the first quarter was affected negatively by reduced shipments of vehicles that were a result of launches of the Ram trucks for 2013 and the Jeep Grand Cherokee for 2014, along with preparations for the launch in the second quarter of the Jeep Cherokee for 2014.
The changeover work for models caused the shipments to be cut into, affecting sales. However, the results for Chrysler were the seventh straight quarter the company earned a positive net income.
CEO of Chrysler Group Sergio Marchionne said the company remained on track to reach its business goals even thought the results from the first quarter had been affected by a launch schedule for products that was very aggressive.
Marchionne also said that this year’s task would be daunting but the company has the commitment to reach its targets including an increase in shipments of 8% and an operating profit that exceeds $3.8 billion.
Chrysler separated itself in 2012 by being the sole automaker domestically to increase its market share. The average price of each transaction for the company also increased by close to $1,000 per auto vs. the value of each transaction in 2011. Those results helped the company improve its profitability.
Chrysler, unlike Fiat its parent company, has nearly no exposure in the European market that is still very troubled economically.
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