Cars

Chrysler’s net income falls 65% in quarter

An assembly line worker at a Chrysler plant in Kokomo, Ind. The carmaker’s CEO said it remains “on track.”
An assembly line worker at a Chrysler plant in Kokomo, Ind. The carmaker’s CEO said it remains “on track.”Credit: AJ Mast/Associated Press

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DETROIT — Chrysler Group said Monday that its net income fell 65 percent in the first quarter, to $166 million, as the automaker spent heavily to prepare for new product introductions.

Chrysler, the smallest of Detroit’s three auto companies, said revenue dropped 6 percent in the quarter, to $15.4 billion, despite an 8 percent increase in new vehicle sales. The weaker results indicated that Chrysler is still solidifying its comeback from a government bailout and bankruptcy in 2009.

But the company’s chief executive, Sergio Marchionne, reaffirmed earlier forecasts that Chrysler would earn $2.2 billion for the full year on revenue of $72 billion or higher.

Fiat, which owns 58.5 percent of Chrysler, also reported a decline in profit as weak sales in Europe persisted.

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