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The Chrysler Group after a review of their third quarter finances found out that they turned some earnings. The good news allowed the auto manufacturer based in Detroit to raise their profit forecast for the coming months. Chrysler which is at present majority owned by Italian company Fiat, had a 3Q income of $212 million which is a big leap to the $84 million loss for the same period back in 2010.

The profits that came in during the third quarter is consistent with the projection of the analysts. The carmaker raised its earnings forecast to $600 million for 2011 instead of the max of $500 million projected earlier. This year will be the first full year earnings since their bankruptcy declaration bacik in 2009.

The positive results in the finances and the increased sales are both in line with the plan drawn back in 2009. Recently, the company and the United Autoworkers, signed a four year pact to ensure the growth of the company, and make sure to reward the workers who helped revive the brand.

Throughout this year, Chrysler has been outpacing the automotive industry in the United States when you look at the sales primarily attributed to their revamped range of vehicles. Vehicles like the Grand Cherokee by Jeep and the Chrysler 300 and Chrysler 200 spearheaded the good comeback of Chrysler. The sales of the brand were up by as much as 23.1% compared to the 3rd quarter sales of 2010, and an improvement of 26.1% for the first nine months of the year. Overall, the auto industry in the U.S. improved its sales by 6% for the third quarter.

The excellent sales performance of Chrysler translates to their increase market share of the U.S. market to 11.6% or 1.9% points.

The car manufacturer also scaled back their incentives which in turn raised their transaction prices. For the quarter, Chrysler’s incentive per transaction is $2,859 which is a big decline from last year’s.

The net revenue of Chrysler for the quarter is $13.1 billion reflecting a 19% improvement looking at their 2010 numbers.

Record plunge in sales and tight cash flow situation, big car manufacturers like GM, Ford, and Chrysler are pleading for help from the US federal government. They need billions more in addition to the $25 billion loan to build more fuel efficient cars.

Democrats in Congress are pushing for a bill that will release a $25 billion loan for the big car companies in exchange that they will give the government ownership stakes. They are hoping for the fast passage of the auto bail out bill.

The plan is to get a chunk from the $700 billion allocated for the Wall Street life line to help the big car manufacturers. The White House has declared that it is open to the idea. President-elect Obama calls for more help to be given to the soul of US manufacturing.

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