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.

If you liked the article, share on:

Topics: gm, chrysler, truck, suv, sales

Comments

Recommended

In June this year, rival carmakers Ford and Volkswagen inked a memorandum of agreement for a possible strategic alliance. Months after signing the MoU, automotive industry analysts are now floating...
by - October 23, 2018
The distance a vehicle can travel with a full tank of gas or a single full charge is important to any driver. This is why most carmakers reveal the range...
by - October 22, 2018
More than a year after introducing the widely acclaimed ATS GT prototype at the at the luxurious Salon Privé exhibit, Automobili Turismo e Sport (ATS) has finally presented the final...
by - October 19, 2018
The diesel exodus in Europe continues. Years ago, carmakers have been in a sweeping race to offer more diesel-powered vehicles in the continent, which hunger for such transports seems unending....
by - October 19, 2018
At the 2018 Paris Motor Show earlier this month, Czech carmaker Skoda unveiled the Vision RS Concept. According to Skoda, the new Vision RS doesn’t just show how its RS...
by - October 18, 2018