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Chrysler Profits Up Thanks to New Models
By Mike Cervantes
Jul 31, 2004, 19:19

Courtesy: Chrysler

Earlier, we reported the rising profits of General Motors and Ford; now it’s Chrysler’s turn. DaimlerChrysler’s American division (excluding Mercedes Benz) reported a second quarter operating profit of $614 million, up from over a billion dollars lost last year, according to the Associated Press.

A large part of the turnaround is thanks to a product revival that includes America’s current “it” cars, the Chrysler 300 and Dodge Magnum. The Bentley-esque 300 is bringing in import customers with its expensive looks and the 300C’s HEMI V8 power. The Dodge Magnum is successfully transferring the Dodge Ram’s testosterone-charged image to its wagon shape, converting many former truck and SUV buyers in the process. The AP reports that 34,571 Chrysler 300s were sold during its first three months on sale. That’s five times what the 300M, the 300’s predecessor, sold during that period the previous year. The Magnum pulled in 7,726 units sold during its first two months on sale. It replaces the Intrepid sedan.

Chrysler will launch 25 new models by 2006, 9 this year alone. Thanks partly to the 300 and the Magnum, Chrysler sales are up 2.1% for the first six months of the year. The Chrysler Group’s market share rose slightly to 13.5% in that time while GM and Ford lost share. Chrysler is now earning more despite having a smaller volume than GM and Ford’s North American automotive units. Because of the aggressive model launch, Chrysler only expects results to improve further as the year continues.

On a related note, Mercedes Benz reported an 18% dip in second-quarter operating profit, to $856 million thanks to lower sales, unfavorable exchange rates, and high launch costs of the new A-class and C-class. Both new models were delayed four weeks to prevent quality issues from cropping up on the first batch coming out of the factory.