Chrysler's sales motor but losses continue

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The Independent Online

chrysler trimmed trimmed its losses from $197m (£124m) to $172m in the second quarter of the year, boosted by rising sales and steady cost-cutting efforts, the US car giant said yesterday.

Chrysler left Chapter 11 bankruptcy protection in June and is 20 per cent-owned by Italy's Fiat. The company's operating income rose to $183m – 28 per cent more than in the previous three months. Revenues were up by 8.2 per cent to $11bn.

Sales have improved since the launch of the new Jeep Grand Cherokee, which was Chrysler's first new model since the Fiat deal. Global vehicle sales rose by 22 per cent to more than 400,000.

The company still has "an extraordinary amount of work" to do despite being on track to meet its aim of breaking even over 2010, the chief executive, Sergio Marchionne, said yesterday.

Chrysler still owes $5.8bn to the US government, which owns 10 per cent of the business. It is set for a public share issuance in 2011, Mr Marchionne added.