Chrysler reports 2Q loss due to repayment
DETROIT — Chrysler retreated to a loss for the second quarter, but only because the expense of shedding its government debt erased what would have been a modest profit.
The company, just two years out of bankruptcy protection, maintained that there are healthy signs despite the loss. Its turnaround continues with a revamped lineup of cars and trucks that is drawing more customers to showrooms.
Chrysler this morning reported a $370 million net loss from April through June, but said it’s only because of a $551 million one-time accounting charge for refinancing bailout debts to the U.S. and Canadian governments. Without the expense, Chrysler said it would have earned $181 million.
“Refinancing our debt and repaying our government loans six years early reinforces our conviction that we are on the right path,” CEO Sergio Marchionne said in a statement.
Revenue for the quarter jumped 30 percent to $13.7 billion as U.S. sales rose more than 20 percent. Americans bought more Jeep Grand Cherokee SUVs and revamped cars such as the Chrysler Sebring and Dodge Avenger.
