Higher Costs Despite Growing Sales
While Chrysler sales increased 7.6 percent in the first quarter and outpaced the industry growth rate of 6.4 percent, the automaker faced higher costs that weighed on the bottom line. As the company ramps up for production of the redesigned Jeep Cherokee in the second quarter and Ram Heavy Duty Trucks later this year, it is dealing with higher costs.
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At the same time the company is seeing its mix of vehicles being sold shifting more towards cars, which are less profitable.
Still, Sergio Marchionne, Fiat Chrysler CEO, said the company remains on track to ship between 2.6 and 2.7 million vehicles worldwide this year.
Chrysler also reconfirmed the company is on track to earn $2.2 Billion this year.
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