Chrysler is pointing to increased sales as the catalyst for its strong third quarter performance.
Chrysler Group LLC reported preliminary net income of $212 million for the third quarter, compared with a net loss of $84 million a year ago, as the company continues to increase sales and benefit from its alliance with Fiat S.p.A.
Net revenue in Q3 was $13.1 billion, a 19 per cent increase from the third quarter of 2010, driven by increased demand for Chrysler Group’s 16 all-new or significantly refreshed cars and trucks.
“In the third quarter, Chrysler Group achieved increased sales and positive financial results, totally in line with the plan we laid out in November 2009,” CEO Sergio Marchionne said in a statement.
“This house continues to be fully focused on financial performance and making outstanding cars and trucks by fully leveraging its alliance with Fiat.”
Chrysler’s modified operating profit grew to $483 million in the quarter, from $239 million a year ago.
The strong financial report follows a win for the company when, earlier this week, it announced the United Auto Workers had approved a new contract with the company. The four-year deal is said to reward workers through a bonus system and profit sharing instead of wage hikes.