DETROIT — A year and a half ago, Chrysler almost went under. Now, a new version of the Jeep Grand Cherokee is helping turn its fortunes around by narrowing its third-quarter loss and raising its confidence as it rolls out an unprecedented 10 new models before the end of this year.
Chrysler was weighed down by debt, billions in losses and a poor reputation for quality when it filed for government-funded bankruptcy in April 2009. The company almost didn’t get government help to see it through bankruptcy court. But it emerged from Chapter 11 with a tough new management and an aggressive plan to remake its cars and trucks.
Even though the company is still losing money and must improve its quality ratings, the push for good vehicles is paying off.
Chrysler said Monday it cut its loss in half between the second and third quarters, to $84 million. The automaker raised its 2010 profit forecast, saying it will end the year with more than triple the operating profit it previously forecast.
The new Jeep drove Chrysler’s results in the July-through-September quarter. The 2011 Grand Cherokee debuted in June to strong reviews, and buyers responded to the upgraded interior as well as advancements such as a hydraulic system that lifts the vehicle up if the driver wants to go off-roading. Sales more than doubled between the second and third quarters, to nearly 23,000 vehicles. Profits rose too. Buyers are paying around $600 more for the 2011 model than a 2010 one, according to auto-pricing site .
