DETROIT (AP) — Chrysler Group’s net income rose 22percent in the third quarter as strong sales
of the Ram pickup and JeepGrand Cherokee masked weaknesses elsewhere in its lineup.Chryslersaid
Wednesday that it earned $464 million in the July-Septemberperiod. It was the Auburn Hills, Mich.-based
company’s ninth consecutiveprofitable quarter.Worldwide vehicle sales for the third quarterwere 603,000,
up 8 percent from a year ago. The company’s sales outsideNorth America jumped 20 percent to 82,000,
including 15,000 sales ofChrysler-made vehicles like the 200 convertible and 300 sedan, which aresold
under the Lancia brand in Europe.Chrysler reaffirmed itsprofit guidance, which it lowered in July. The
company expects afull-year profit of between $1.7 billion and $2.2 billion on revenue ofbetween $72
billion and $75 billionOverall, it was a lacklusterquarter in the U.S., where Chrysler does
three-quarters of its business.Chrysler’s sales rose 7.7 percent, lagging the total industry increaseof
12 percent. The Chrysler, Dodge, Jeep and Ram brands saw salesincreases, but Fiat’s U.S. sales fell 7.5
percent. Chrysler didn’t gainany U.S. market share during the quarter.The company also delayedshipments
of its new small SUV, the Cherokee, to fix issues with a newnine-speed transmission. Scheduled to go on
sale in September, theCherokee began arriving at dealers just last week.But booming sales of the Ram and
Jeep Grand Cherokee, both recently updated, helped boost Chrysler’s results.U.S.sales of the Ram rose 23
percent in the third quarter compared to lastyear. And buyers paid more — an average of $36,724 per
truck, up 5.3percent from the year-ago quarter, according to Kelley Blue Bookestimates.Jeep Grand
Cherokee sales rose 30 percent, and buyers paid 9 percent more, or $40,175 per vehicle.KarlBrauer, a
senior analyst at Kelley Blue Book, said Chrysler’s growth ishindered by aging vehicles like the
Chrysler 200 and Dodge Avengersedans. Chrysler’s parent company, Italy’s Fiat SpA, has been hurt bythe
recession in Europe, which is impacting the development of newproducts, Brauer said.Fiat is scheduled to
report its third-quarter earnings later Wednesday.Fiatand Chrysler CEO Sergio Marchionne hopes to
combine the two companies,but he first must convince the union-run trust that owns a 41.5-percentstake
in Chrysler to sell its share to Fiat. The trust says that stakeis worth $4.27 billion, while Fiat says
it’s worth $1.75 billion.Atthe trust’s request, Chrysler filed paperwork for a public offering ofthe
trust’s shares in September. Marchionne has made it clear that heprefers to settle the dispute without
an IPO.Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.
