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Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.

Australian Jeep marketing stunt goes awry [w/video]

Jeep fans in Australia are none too happy with the off-road brand following a contest that saw ten new Cherokees sold for just $10,000 Australian (about $9,400), roughly a quarter of the vehicle's price Down Under.
The contest, called the "World's Most Remote Dealership," gave Aussies the chance to snag an ultra-affordable Cherokee Longitude (analogous to the US-spec Latitude trim), provided they could get to a secret dealership in the remote wilderness of western New South Wales, near the border with the state of South Australia.
In order to get the exact location of the dealership, though, potential customers needed to download an app, which would release a phone number 9:00 AM AEST on Thursday (7:00 PM EDT, Wednesday night). The first ten people who could call in and prove they could afford to finance $10,000 and get to the remote dealership, were given the location of the remote dealership.

Jeep Cherokee sales rival Wrangler after two months

In our First Drive article on the 2014 Jeep Cherokee we said, "our informal and thoroughly unscientific opinion is they're going to sell tons of them. Why? Because it is very good." So far, it appears the public concurs. Of course, it's very early - the new compact utility has logged just one month of confirmed sales, but Larry Vellequette at Automotive News says dealers have told him that the second month of sales will be even better, a message that mirrors what we've heard from company execs.
In its first, severely truncated month on sale, the Cherokee sold 579 units. With all of November to play with, though, dealers moved 10,169 of them - compared to 11,753 Wranglers and 14,798 Grand Cherokees. That helped propel Jeep to a 30-percent year-on-year improvement for the month, Chrysler Group to a 16-percent improvement and the group's 44th consecutive month of sales growth, exceeding analyst expectations in posting its best November numbers since 2007.
If it can just keep replicating the its first month of sales, the finalist in North American Truck of the Year voting will smoke the trade done by the outgoing Liberty, which didn't break 7,900 units in a month in the last four years of its life (and normally didn't get close to even that). In March this year, Chrysler said it wants to build 250,000 Cherokees in its Toledo assembly plant for global sales. It's early yet, but with second-month sales quoted as being as "strong as death," the bookies might be resetting the odds.