Chrysler receives boost from new Jeep

• Source: Shanghai Daily
• [09:00 November 09 2010]
• Comments

Chrysler's new Jeep Grand Cherokee is a hit with drivers, bringing the auto maker within sight of profitability and lifting its share of the US market.

Chrysler yesterday said it cut its losses in half between the second and third quarters, helped by the strong-selling Jeep. The auto maker upgraded its full-year profit forecast, saying it will end the year with more than triple the operating profit it previously forecast.

The new Jeep is the first of nearly a dozen new cars and trucks, including a small Italian-designed car that Chrysler is introducing in the US by December. Chrysler's survival is riding on the new arrivals, and it hopes they're as successful as the Grand Cherokee, whose sales have jumped more than 40 percent so far this year.

The 2011 Grand Cherokee debuted in June to strong reviews, and buyers responded to the upgraded interior as well as advancements like a hydraulic system that lifts the vehicle up if the driver wants to go off-roading. Sales were up 41 percent through October; by comparison, industry-wide sales of SUVs and crossovers were up 18 percent, according to Autodata Corp.

"We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee," Chrysler CEO Sergio Marchionne said in a statement. "Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive auto maker."

Chrysler Group LLC lost $84 million in the July-September period compared with a loss of $172 million in the previous quarter. Chrysler's revenues rose 5.2 percent to $11 billion.