Tight Jeep Supplies to Dent Chrysler, Fiat Results

Model changeovers for most of Jeep's SUV lineup will cut Chrysler Group LLC's revenue and profit in the current quarter thus hurting finances at parent Fiat SpA, according to Fiat-Chrysler CEO Sergio Marchionne.

He offered no details about expected results at the two companies. But Marchionne tells reporters in Geneva that the problem won't alter Fiat's full-year forecast.

The company predicts its trading profit (earnings before interest, taxes and one-time items) will jump 18% year over year to as much as €4.5 billion ($5.8 billion) in 2013.

Fiat relies heavily on its U.S. alliance partner to offset losses from Europe's slumping car market. Without Chrysler's contribution, the Italian carmaker would have posted a €1 billion net ($1.3 billion) loss in 2012.

Chrysler is introducing a new generation of Jeep Grand Cherokee and Cherokee midsize and Compass and Patriot compact SUVs this year. The company has said that retooling its assembly plants in Belvidere, Ill., Detroit and Toledo, Ohio, for the new models is curtailing supplies of those models.

Jeep's U.S. sales fell 17% to 31,200 vehicles in February despite a 4% gain in the overall market. Jeep's decline included a 26% plunge to 9,400 units for the Grand Cherokee, which analysts say generates hefty profit margins.