The Auburn Hills, Mich., company Chrysler earned net profit of $473 million, which is highest quarter profit for 13 years, chiefly due to strong U.S. sales. From January to March, sales of Chrysler were higher by 39 percent because customers purchased more Chrysler 200 midsize sedans, Jeep Grand Cherokee SUVs and Ram pickups.
It was not bad for a company which was nearly dead three years back. The company’s first quarter profit was more than four times as compared to the first quarter of last year. Since the third quarter of 1998, it was Chrysler’s best performance when it earned $682 million during the SUV and pickup truck boom.
Chrysler earned more in the first quarter as compared to the whole of 2011. It was mainly due to the government loans and a huge accounting charge for refinancing during last year.
Another reason for excellent result is that Chrysler is earning more cash every time it succeeds to sell a truck or car. On average it is getting $29,234 per automobile in the United States. During the last two years Chrysler worked hard to refurbish its16 models and this has paid off company handsomely.Previous Post » Gold Moves Up on Inflation Expectations