Chrysler Group LLC, owned by Fiat SpA, revealed in a statement that its U.S. sales rose by 20% in August, surpassing analysts initial forecasts, mainly bolstered by a surge in Jeep deliveries.
The head of the companys U.S. sales division Mr Reid Bigland said in a statement that was cited by Bloomberg: “Our Jeep brand continued its torrid sales pace recording its best August sales ever and our Ram Truck brand contributed with a massive 39 percent sales increase.”
According to Chryslers statement, its sales increased by 20% and reached 198 379 in August, from 165 552 vehicles sold in August 2013. This result beat analysts estimates of a 12% increase. The brand projected an annualized sales pace of 17.4 million for the market in August, in comparison to analysts projections of a pace of 16.6 million, up from 16.1 million a year earlier. The company also forecast almost flat U.S. light vehicle sales of about 1.5 million in August.
Chrysler reported that its Jeep deliveries increased by 49%, while its Ram brands sales rose by 39% on a 33% increase in Ram pickup volume. Ram pickup sales totaled 43 775 in August, which is the best performance in more than a decade.
In spite of recent recalls, sales in the auto industry have continued to increase. According to experts, this trend will continue for the rest of the year. One of the senior analysts, who work at Edmunds.com – Ms. Jessica Caldwell commented in a note, cited by the Wall Street Journal: “August is a huge month for dealers who need to clear out 2014 models to make room for 2015 inventory.”
Fiat SpA added 3.12% to trade at €7.61 per share at 14:09 GMT, marking a one year change of +30.09%. The company is valued at €9.23 billion. According to the Financial Times, the 25 analysts offering 12-month price targets for Fiat SpA have a median target of €7.10, with a high estimate of €10.50 and a low estimate of €4.00. The median estimate represents a -3.79% decrease from the previous close of €7.38.
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