Chrysler on Monday said it lost $172 million in the second quarter, mostly because of the interest it was paying on its government loans, but its automotive operations were profitable for a second consecutive quarter. Chrysler's sales, revenue and cash reserves increased, evidence that the carmaker was making progress in its long recovery from last year's bankruptcy. Still, Chrysler is the only Detroit automaker to report a net loss so far this year, and the earnings report did not definitively answer lingering questions about Chrysler's long-term prospects. Its chief executive, Sergio Marchionne, acknowledged that 'an extraordinary amount of work still lies ahead.' Marchionne described 2010 as 'a year of transition and stabilization' for Chrysler, which is introducing few new models this year because its previous owners invested little in product development. He highlighted surging sales of the Jeep Grand Cherokee, the only introduction for Chrysler in the 14 months since emerging from bankruptcy, as evidence that the company was regaining its ability to make desirable vehicles. The company hired 1,100 people last month to help build the Grand Cherokee in Detroit. But analysts said Chrysler would not be able to prove it had turned the corner until its dated lineup was almost wholly upgraded, a process that will take years. Marchionne said Chrysler was on track to surpass its goals for this year and could be 'significantly ahead' of its forecast for 2011. Its financial goals for 2010 include an operating profit of up to $200 million and revenue of $40 billion to $45 billion. In the first half of the year, it recorded an operating profit of $326 million and $20.2 billion in revenue. Chrysler's sales in the United States are up 10.8 percent this year from the first seven months of 2009, but only because it has increased deliveries to governments, rental car companies and other businesses. Such sales are generally less profitable than purchases by individual customers, which have declined this year for Chrysler while increasing for most other automakers. In the second quarter, Chrysler recorded $183 million in operating income, which excludes one-time charges, an improvement of $40 million over the first quarter. The overall loss was $25 million less than in the first quarter and far smaller than its fourth-quarter loss of $2.7 billion. Interest payments of $296 million in the second quarter accounted for nearly all of the swing between the operating profit and the net loss. Revenue rose 8.2 percent from the first quarter to $10.48 billion. Results from the year-earlier period are not public. Chrysler had $7.8 billion in cash as of June 30, an increase of $400 million over the end of the first quarter, and net debt of $3.4 billion. It owes $5.7 billion to the U.S. government and $1.2 billion to Canada. 