Chrysler's financial woes continued during the second quarter as the company posted another hefty operating loss.Chrysler, the Michigan-owned automaker now majority owned by the UAW's healthcare fund and controlled by Fiat, has reported its second quarter financial results. Although Chrysler's revenues actually increased during the quarter, the ailing automaker failed to post a profit.
Chrysler reported revenue of $10.5 billion during the second quarter of 2010 - an 8 percent increase over Q1 -- but failed to turn a profit during the quarter. Chrysler says it lost $172 million during the period, which is actually an improvement over its $197 million first quarter loss.
Chrysler's first-half U.S. sales increase 12 percent, although that lags behind the overall market's increase of 17 percent. Chrysler has sold 741,000 vehicles globally since the start of the year.
It is believed that Chrysler is relying heavily on fleet sales to keep its factories running, but company CEO Sergio Marchionne refused to comment on the subject. "Maybe I wasn't sufficiently rude when I opened my remarks about this fleet stuff," Marchionne responded to a question about fleet sales.
Marchionne believes Chrysler can cling to a 10 percent U.S. market share for 2010, but the company is still expected to burn through about $1 billion this year.
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