During the second quarter, DaimlerChrysler earned $2.37 billion, an 11 percent increase from the same period a year ago, when the company earned $942 million. Second quarter revenues were $49.3 billion, about equal with last year’s levels. The earnings improvement was primarily due to the significant increase in operating profit achieved by the Mercedes Car Group. The Mercedes Car Group reported an operating profit of $1.06 billion — a substantial improvement compared with the second quarter of last year’s $15.8 million. The Chrysler Group earned $65 million, down from $695 million during the second quarter of 2005. Revenues dipped to $15.9 billion from $16.7 billion last year. While the division expects a third quarter loss of up to $600 million due to costs of reducing inventories and new vehicle launches, the Chrysler Group expects to be back in the black for the fourth quarter and for the year as a whole. Overall, DaimlerChrysler expects an operating profit of $7.9 billion for the year as a whole.
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07/27, 9:49 AM
posted by:
GM number1-4ever
Chrysler group is headed for the toilet. And Mercedes are just overpriced Chryslers. So this is good news
07/27, 12:05 PM
posted by:
GM number1-4ever
I actually LOVE Mercedes but I can’t afford one. I’m an imbecile.
07/27, 12:42 PM
posted by:
Ryan H
Actually, if you pay attention to any sort of financial history, one would see that Chrysler group and Mercedes alternate in terms of proft. Mercedes was down at the same time last year, while Chrysler was setting record profits since the merger. Thsi is one of those see-saw effects that at minimum keep an automaker neutral as opposed to all profit followed by all loss, etc.
07/27, 1:09 PM
posted by:
2006300C
Chrysler is rolling out all new models. Every auto maker suffers when they so this, it’s an industry norm. Who would buy an older generation when a new one is just 2 or three months away?
07/27, 1:54 PM
posted by:
stuart
2006300C is spot on. Its because chrysler is bring out or revising most model at the same time that this is happening. This time next year they will both make a profit
07/27, 4:13 PM
posted by:
al
#1
Mercedes are definately not Chryslers at all. Mercedes is actually the one who is keeping Chrysler alive.
07/27, 6:03 PM
posted by:
1c3d0g
While that may be true, the Mercedes quality we used to know ain’t there either. Looks like the company still has a lot of work to do…
07/27, 6:53 PM
posted by:
SJG
Mercedes quality and reliability has been just as good as always here. I have an 02′ C230K coupe and an 05 E500 4-matic. Both have been dead nuts reliable, the 02 has over 120k miles at the moment and that was supposedly the worst things got for MB.
The E has about 42k and needs tires I’d buy a new Mercedes without batting an eye based on my experiences.
07/27, 7:03 PM
posted by:
chew the root
I agree with #7. We’ve seen a lot of talk about improving Mercedes quality and 5 year reliability, mostly from DaimlerChrysler. Mercedes look great with superb design and dynamics but have too many stupid problems which for any so-called premium brand should be ashamed.
07/27, 11:37 PM
posted by:
rod
mercedes is not keeping chrysler alive,and chrysler is not going down the toilet…..sure chrysler used their suspension architecture,steering column…..and some interior switchgear in their lx cars and used the slk platform for the crossfire but these cars were still designed and tuned by chrysler .it seems to me that the use of mercedes parts is being greatly exagerated.mercedes is using the durango platform for the ml sport utility and will be using a new v6 family of engines that chrysler had been working on until mercedes decided they wanted in on it.chrysler has always lead the pack in power and design when compared to gm and ford and would have without mercedes.{hemi is all chrysler}i think both will benifit from the merger….and they are both being helped by the other(manufacturing processes etc.)mercede is actually using the next ly platform for some of their cars.has gm or ford ever used other companies platforms….you hardly ever hear about that.anyways i think crysler has a really bright future…..one that includes a three pointed star.
07/29, 12:31 AM
posted by:
steve
It really dosn’t matter if Chrysler products sell or not. As long as Mercedes stays alive, there will allways be Chrysler. As for GM and Ford, well, they dont have a company like Mercedes to point them in the right direction like Chrysler has. I predict GM and Ford will eventually die off, but Chrysler will be here for ever and ever.
07/29, 10:06 PM
posted by:
03accentgt
i agree with #11, its allways the humble, quite car companys that turn out on top at the end.
08/14, 10:16 AM
posted by:
Sunny
I don’t think this been a serious problem.I am damn sure they will fight back.