Chrysler ups profit forecast as market share recovers

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image captionChrysler is pinning its hopes on a range of new cars such as the Jeep Grand Cherokee

US carmaker Chrysler has raised its annual profit forecast to $700m (£435m), after third-quarter results showed market share recovering.

The US carmaker previously expected to make only $200m in the current year.

Chrysler made a loss of $84m during the past three months, down by half from a $172m loss in the previous quarter.

Total revenues rose 5% to $11bn, helped by a 40% jump in sales for its new Jeep Grand Cherokee, pushing its US market share up to 9.6%.

At the time of its bankruptcy its market shares had been 7%.

"We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee," said the company's chief executive, Sergio Marchionne, commenting on the financial results.

Management of Chrysler was taken over by Fiat of Italy last year after the US company entered government-sponsored bankruptcy.

Fiat is helping the US company to bring a range of new cars to the US market over the coming months.

"Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive automaker," added Mr Marchionne.

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