Chrysler Profits Plummet 65 Percent in First Quarter

Chrysler Profits Plummet 65 Percent in First Quarter
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Chrysler reported its first quarter profits today: $166 million, which represents a 65 percent drop over the same time last year.

Despite that, brand boss Sergio Marchionne reaffirmed that Chrysler will earn $2.2 billion on a full year revenue of $72 billion.

The brand said its profits were hurt by costs associated with launching the Jeep Grand Cherokee and Ram 1500 pickup truck.

“We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule,” CEO Sergio Marchionne said in the statement. “This quarter underscores the importance of an unwavering commitment to execute flawless vehicle introductions to reach our full potential.”

While Marchionne’s statement that Chrysler is still on track suggests the brand is a good sign, the poor profit performance signal that Chrysler is still in the throes of recovering from its government bailout and bankruptcy in 2009.