Chrysler Group Reports Loss of $690 Million in First Quarter
The Chrysler Group reports it lost $690 million so far this year.
Despite making a big showing with Fiat Chrysler Automobiles' new five-year plan, the Chrysler Group reported a big new loss in income during the first quarter of 2014. Chrysler reported today that it lost $690 million during the first quarter of the year, due to costs of merging with Fiat and a one-time healthcare payout to the UAW.
Chrysler's biggest loss during the first quarter was $504 million, which the automaker paid the UAW Retiree Medical Benefits Trust Note (VEBA Trust Note) so it could get itself out of debt. Other causes of the $690 million net loss were related to the Fiat Chrysler Automobiles merger, which should officially go into effect later this year.
Though Chrysler reported an overall loss for the first quarter, it wasn't all bad news. Chrysler shipped 668,000 vehicles worldwide so far this year, which is 16-percent more than the same period last year. Of those, Chrysler sold 621,000 vehicles, up 10-percent versus last year’s figure. Chrysler notes that the rapidly increasing market share in the United States is the primary driver for its sales success, with U.S. sales up 19-percent. The Jeep Grand Cherokee and Ram pickup line were a huge part in Chrysler's increased market share.
Overall, Chrysler had net revenue of $19 billion for the quarter.