Chrysler Profits Up Big On U.S. Car Sales

Chrysler posted record profits of $436 million in its latest quarter, up 141% compared with the same period last year. According to the New York Times, Chrysler was able to manage outstanding performance this year by focusing on their car sales in the U.S. “Excluding a $551 million charge in the 2011 quarter for repaying government loans, Chrysler said that income was up 141 percent.” Keep in mind Chrysler is now majority owned by Italy’s Fiat. Reuters discloses the latest on Fiat’s ownership stake in Chrysler, “Earlier this month, Fiat announced its intention to exercise its call option to purchase another 3.3 percentage points of Chrysler, raising its stake to 61.8 percent once that deal has been done.”

It wasn’t too long ago that Chrysler—one of the “big three” automakers—needed to be bailed out by the government. In a pledge to deliver on a promise Chrysler has made good, their success has even been a bright spot in Obama’s spotty first term.

Car sales have been good and prospects continue to be good for 2012. Helped by near zero percent financing, an up-tick in the economy has been thanks in large part to new car sales. Even under conservative forecasts, Chrysler predicts a banner year with $1.5 billion in profits for 2012, according to the Associated Press.

The New York Times article cites worldwide shipments were 630,000, up 22%; while their U.S. sales were up a punchy 32%, proving Chrysler’s growth is coming from the U.S. “The company, which is majority owned by the Italian carmaker Fiat, said that second-quarter market share in the United States increased to 11.2 percent, up from 10.6 percent a year ago.”

Although the company realizes it is undergoing a slowing trend, investors still have favored the stock with Ford and GM picking up steam as well. The company cites that second quarter profit was 8% lower than the first quarter, according to AP.