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Continued: Chrysler's 2Q net income up 16 pct, but full-year forecast drops due to production delays

  • Article by: DEE-ANN DURBIN , AP Auto Writer
  • Last update: July 30, 2013 - 11:10 AM

Marchionne said Chrysler doesn't expect to have to pay out any more for that recall, even though the government's investigation continues. Chrysler initially defied the order to recall the vehicles but reached a compromise with the government in mid-June.

"Chrysler Group is poised for a very strong performance in the second half of the year," he said.

Fiat, which owns 58.5 percent of Chrysler, said Tuesday its second- quarter profit more than quadrupled to $188 million because of Chrysler's performance. Without Chrysler, Fiat would have lost $327 million as its European sales dropped 5 percent.

Marchionne, who is also Fiat's CEO, wants to merge the two companies. But Chrysler's other owner, a trust that pays medical bills for retired United Auto Workers union members, is in a court dispute with Fiat over the cost of its stake.

Marchionne said Tuesday that the two sides have had "fruitful discussions" but aren't close to an agreement on the value of the trust's shares. A judge will likely decide the issue this summer.

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