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Chrysler's new Jeep Grand Cherokee is a hit with drivers, bringing the automaker within sight of profitability and lifting its share of the US market, writes Dee-Ann Durbin.
The new Jeep is the first of nearly a dozen new cars and trucks, including a small Italian-designed car, which Chrysler plans to introduce by December.
Chrysler's survival is riding on the new arrivals, and it hopes they're as successful as the Grand Cherokee, whose sales have jumped more than 40 per cent so far this year. Chrysler said it cut its losses in half between the second and third quarters. The automaker upgraded its full-year profit forecast, saying it will end the year with more than triple the operating profit it previously forecast.
Chrysler Group LLC lost $84 million (around BD32 million) in the July-September period compared with a loss of $172 million (BD65m) in the previous quarter. Chrysler's revenues rose 5.2 per cent to $11 billion. The company compared results with the second quarter rather than the prior year because this was the first time since 2006 it has reported third-quarter results. The 2011 Grand Cherokee debuted in June to strong reviews, and buyers responded to the upgraded interior as well as advancements like a hydraulic system that lifts the vehicle up if the driver wants to go off-roading.
Sales were up 41 per cent through October; by comparison, industry-wide sales of SUVs and crossovers were up 18 percent, according to Autodata Corp.
"We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee," Chrysler CEO Sergio Marchionne said in a statement. "Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive automaker."
Chrysler's sales dropped slightly from the second quarter, but that is typical for this time of year. More importantly, the company said it gained US market share for the fifth consecutive quarter. Chrysler now holds 9.6 percent of the US market. That figure is up from a seven per cent share it held last summer after it exited bankruptcy.
Auburn Hills, Michigan-based Chrysler, which has been managed by Italian automaker Fiat SpA since it left bankruptcy protection last year, said it expects to make a pre-tax profit of $700 million this year, up from a previous forecast of $200 million. It also expects to end the year with $500 million in positive cash flow, up from an initial prediction that it would run through $1 billion in cash.
The Jeep brand has always had a strong following in Bahrain for its off-road capabilities and strong physical presence on the kingdom's often menacing highways.
In June, the all-new Grand Cherokee was presented with a 'Top Safety Pick' award by the Insurance Institute for Highway Safety - the highest rating the organisation bestows. Vehicles that earn this rating meet the highest standards for crash test performance, encompassing state-of-the-art safety for the best protection in the most common types of crashes.
Sales executives at Behbehani Brothers' Jeep, Chrysler and Dodge showroom in Sitra told MotoringWeekly that the car has been receiving a lot of attention from customers in recent weeks.
A Grand Cherokee 2011 limited edition, boasting an electronic infotainment system and navigation media centre, is priced at BD16,499.
"Nobody has a deeper well of SUV experience than we do, and it shows in the 2011 Jeep Grand Cherokee with its legendary HEMI V8 power, fuel efficiency and off-road capability," said Jack Rodencal, managing director - Chrysler Group Middle East, at the regional launch of this new SUV.
"With the all-new Grand Cherokee, Jeep has created the benchmark, premium SUV. Unique innovations such as our new Quadra-Lift suspension and Selec-Terrain traction control systems separate Jeep from the crowd and take the new Grand Cherokee to the next level of 4x4 capability.
"The new generation of the iconic Jeep Grand Cherokee delivers the ideal blend of on-road refinement, craftsmanship, world-class design, improved fuel consumption, innovative features and legendary, real-world capability."
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