A sharp downturn in the company’s production of new vehicles tied to new product launches undercut Chrysler Group’s cut Chrysler’s profits by two-thirds during the first quarter of 2013.
Chrysler Group reported Q1 net income net income dropped 65% to $166 million, compared with $473 million for the same quarter last year. It was the seventh consecutive quarter of positive net income.
The results, which were expected, were a result of lower vehicle shipments as well as industrial costs related to several key product launches, and lower vehicle shipments to Europe and Latin America, even as retail sales in North America remain strong, the company said.
Nonetheless Chrysler Chief Executive Officer Sergio Marchionne insisted the company remains on a path to longer-term prosperity as it ramps up production of the new Jeep Cherokee and Grand Cherokee as well as the Dodge Ram.