Chrysler loses $370 million in 2Q

Chrysler said today it lost $370 million from April to June even though its sales and market share increased in the U.S. and Canada.

But excluding the costs to refinance its debt and repay its loans to the U.S. and Canadian governments, Chrysler said it would have earned a profit of $181 million in the second quarter.

The company lost $172 million during the same period last year.

Sergio Marchionne, CEO of Chrysler and Fiat, said the repayment of the company’s government loans was a major step forward for the company that will save its interest expenses by about $350 million annually.

“We’ve paid back everybody," Marchionne said. “We are in the process of rebuilding the financial viability of Chrysler. I think we made good progress in the second quarter."

Marchionne said today that Chrysler remains on track to earn a profit of $200 million to $500 million this year.

Chrysler’s revenue during the second quarter increased 30% to $13.7 billion. The company said its revenue increased because its sales and market share increased.

Leave a Reply