The bailed-out reincarnation of Chrysler has some good and bad news for the federal government. Quarterly profits released Monday show that the automaker is still losing money, but the financial bleeding has slowed.
Net loss for the company in the second quarter was $172 million, a decrease from a loss of $197 million reported in May. That means Uncle Sam may have a chance of recouping the $15 billion in emergency funds the federal government lent Chrysler to keep the ailing U.S. auto market alive.
Despite its losses, Chrysler increased its operating profit to $183 million in the second quarter, a $40 million improvement over the first, which has the automaker feeling optimistic. With the exception of its new Jeep Grand Cherokee model, Chrysler has yet to release any new products this year. According to USA Today, however, 16 new models, including a revised 300 Dodge Charger, a Jeep Grand Cherokee 2012 and the Fiat 500 are scheduled to be introduced by the end of 2010.
In light of these releases, the automaker projects it will be flat or slightly profitable in the third quarter ending Sept. 30.
"The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead," Chief Executive Sergio Marchionne said in a statement. Machionne is also the CEO of Italian automaker Fiat, who partnered with Chrysler after its 2008 bankruptcy.
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