A Wrong Turn at Chrysler

Chrysler Group's near break-even second quarter and a projected $600 million loss in the third quarter shows that the paint isn't dry on this rebound job

For the past three years, when parent DaimlerChrysler (DCX) has reported earnings, it has been the Mercedes-Benz unit that has dragged down the company's results. Chrysler Group has been the bright spot, cranking out profits on successful models like the Chrysler 300 and Town & Country minivan. But the second-quarter numbers, reported on July 27, painted a markedly different picture: Mercedes posted earnings of $1 billion, while Chrysler rang up just $65 million in profits, vs. $695 million a year earlier. Overall, DaimlerChrysler earned $2.37 billion for the quarter ended June 30, compared with $942 million in the year-ago period.

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