Strong truck and SUV sales allow GM and Chrysler to have solid 3Q

Article by Anita Panait, on November 6, 2013

Thanks to strong sales of pickup trucks and sports utility vehicles, General Motors and Chrysler Group were both able to post solid financial performance in the third quarter of 2013. GM posted a 15-percent surge in pretax profit in the quarter to $2.64 billion, excluding several non-recurring items that trimmed about $900 million from the bottom line.

One-time expenses linked to the repurchase of 120 million preferred shares from the UAW's health-care trust during the period have resulted to a 53-percent drop in net income to $698 million. Chrysler, on the other hand, logged a 22-percent jump in net income in the July to September period, to $464 million.

The carmaker was able to achieve this despite having to delay the rollout of the 2014 Jeep Cherokees into the fourth quarter to fix quality problems. Chrysler had to depend on the re-engineered Jeep Grand Cherokee and Ram pickup line to boost its results.

The strong results came despite logging a decline in market share in the United States and losses in several Asian markets, excluding China. GM and Chrysler’s third-quarter results highlight the carmakers’ heavy reliance on pickup trucks, even as small cars and crossovers continue to rise in importance in their offerings.

Chrysler sold 17,456 more Ram pickups and 10,943 more Grand Cherokees in the US in the third quarter of 2013 than the same period in 2012.

Both models are among Chrysler’s most profitable units. Chrysler chief executive Sergio Marchionne has acknowledged problems with the rollout of the Cherokee, including the carmaker’s decision to close part of its Toledo Assembly facility for 10 months while it got ready to build the new SUV.

It resulted to the absence of a mid-sized SUV in Chrysler’s lineup for almost all of 2013.  Chrysler started production of the Cherokee on June 24, 2013, but deliveries to dealers only commenced last week.

Topics: gm, chrysler, truck, suv, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries