DC is going in the right direction
DaimlerChrysler AG executives said Wednesday that the company's Mercedes Car Group has rebounded and Chrysler Group is headed in the right direction.
Following reports of huge third-quarter losses by General Motors Corp. and Ford Motor Co., DaimlerChrysler this week posted improved profits for both Chrysler and Mercedes divisions.
Bodo Uebber, a member of the DaimlerChrysler management board in charge of finance and controlling, said during a conference call Wednesday that the results confirm Mercedes had reached a "turning point." In the first quarter, Mercedes posted losses as it dealt with quality problems.
Chrysler Group's results show it is building innovative products, Uebber said. Chrysler's 300 sedan has been a hit with consumers and critics. The company also posted strong gains in the third quarter on sales of the Dodge Ram pickup, Jeep Wrangler and Jeep Grand Cherokee.
Chrysler Group will launch 10 new products next year, including the Dodge Caliber compact car, Dodge Nitro midsize SUV and two Jeep compact SUVs, likely based on the Jeep Compass and Jeep Patriot concept vehicles.
"With Chrysler, I am confident we are doing ... everything to keep us competitive in that difficult market," Uebber said.
The third-quarter results, released Tuesday, show positive results for the company's auto-making operations.
Quarterly earnings slipped to $910 million, a 21% decline from $1.15 billion in profit in the same period last year. Last year's income was boosted by the sale of DaimlerChrysler's interest in Hyundai Motor Co.
DaimlerChrysler made more money in this year's third quarter on cars and trucks. Chrysler Group earned in the third quarter $374 million, a 43% increase from the same period last year, and Mercedes Car Group earned $526 million, also a 43% increase.
Despite tough market conditions, DaimlerChrysler expects slight automotive sales growth in the fourth quarter, the company said Wednesday. Chrysler Group should beat last year's sales figures.
-Matt-
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