Chrysler expects to recover cash position in Q4, Marchionne says
DETROIT, Oct 30 (Reuters) - Chrysler Group LLC said on Wednesday that it expects to be cash-flow positive in the fourth quarter, as the No. 3 U.S. automaker recovers from what Chief Executive Sergio Marchionne called the "painful" launch of the Jeep Cherokee mid-size SUV.
Technical glitches in the Cherokee's new nine-speed automatic transmission forced Chrysler to delay shipment of more than 30,000 Cherokee SUVs. Marchionne said the Cherokee will be in "adequate" supply at U.S. dealers by mid-November.
"We expect the fourth quarter to be a phenomenally strong cash-generating quarter," Marchionne said on Wednesday during a conference call.
Chrysler's cash at the end of the quarter was $11.5 billion, compared with $11.9 billion at the end of the second quarter. Marchionne is also CEO of Italian automaker Fiat SpA, which owns the majority of Chrysler.