Chrysler Sales Down, DaimlerChrysler Profits Way Up
Date 2006/7/28 21:11:28 | Topic: Sales
DaimlerChrysler said its second-quarter operating profit -- a key gauge of underlying profitability -- rose 11 percent.
But its Chrysler Group, caught with too few car models as the market shifts away from trucks, reported a 91 percent drop in profit to $65 million from $695 million a year earlier.
In a conference call, DaimlerChrysler Chairman Dieter Zetsche said the lower earnings at Chrysler were a result of a 6 percent decline in sales as well as decreased per-vehicle margins.
Chrysler revenue fell 4 percent to $15.9 billion from $16.6 billion, and the company conceded that worse results are to come.
The company plans to turn its sales around later in the year by moving toward smaller, more fuel-efficient vehicles, Zetsche said. The Chrysler Group expects to introduce eight new models this year, most of them powered by a new, fuel-efficient four-cylinder engine or more efficient six-cylinder engines, Zetsche said. The models include two Jeep versions of the Caliber, the new midsized Chrysler Sebring and Dodge Avenger cars, and the Jeep Liberty and Dodge Nitro crossovers.
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