Chrysler reports USD 690 million first quarter loss

Chrysler Group saw big sales gains in the first quarter thanks to the new Jeep Cherokee and Ram pickup, but its results were overshadowed by charges related to its merger with Italian automaker Fiat SpA.
Chrysler lost USD 690 million in the January-March period. Without one-time charges related to the merger, the company's net income more than doubled to USD 486 million.
In January, Fiat paid USD 3.65 billion to a union-run health care trust to acquire Chrysler's remaining shares. As part of the deal, Chrysler agreed to pay USD 700 million to upgrade its factories.
Aurburn Hills, Michigan-based Chrysler took a USD 672 million charge in the first quarter to meet those commitments. It also booked a USD 540 million non-cash loss on extinguishment of debt related to the merger.

Revenue rose 23 per cent to USD 19 billion.
Worldwide vehicle sales jumped 10 per cent to 621,000. In the US, Chrysler's biggest market, the company's sales rose 11 percent, far outpacing the 1 per cent average gain for the industry.