Chrysler and UAW make deal, automaker announces quarterly profit
It’s been a good week for Chrysler. The United Auto Workers ratified the new collective bargaining agreement with nearly 55 percent of the vote and the company also announced a third quarter profit of more than $200 million.
Chrysler today posted a $212 million profit in the third-quarter, for its second quarterly profit since its 2009 bankruptcy, and increased its forecast for its full-year profit to $600 million.
The net income compares with a loss of $84 million a year ago and comes the day after the UAW passed its new contract with Chrysler, despite opposition from skilled trades workers.
Chrysler’s worldwide vehicle sales in the third quarter increased 24% to 496,000, for total revenues of $13.1 billion, up 19%. The automaker’s market share in the U.S., its biggest and most lucrative market, increased nearly two points to 11.4% in the quarter, as Japanese automakers’ sales plummeted due to production disruptions after their country’s March earthquake and tsunami.
The new contract and the improved financial outlook should allow the company to invest $4.5 billion and create more than 2,000 new jobs. All of the Big Three American automakers now have completed contracts with the UAW for the next several years.