AUBURN HILLS & DEARBORN, Mich. -

As Chrysler officials reported gains in third-quarter operating profit, the domestic automaker joined Ford Wednesday in denouncing the passage of a free trade agreement between the U.S. and Korea as it was written back in 2007.

Both companies described Korea as one of the most closed automotive markets in the world. And both Chrysler and Ford stressed how the flow of Korean-made vehicles into the U.S. has increased in recent years.

The pronouncements came as President Obama continued his 10-day trip through Asia with a stop in Seoul, South Korea on Wednesday.

“We believe in free trade, and this isn’t it,” Ford officials began. “In fact Ford has supported every trade agreement approved by Congress since 1965 — until this one.

“If the U.S.-Korea Free Trade Agreement isn’t fixed, it would allow Korea to remain one of the most closed automotive markets in the world,” Ford executives continued. “Today, less than 5 percent of all cars sold in Korea are made outside of that country. The simple fact is that Korea shuts out most auto imports, including vehicles from the U.S. Japan and Germany.

“American-made cars can compete and win globally, but we can’t afford a future with more closed markets to American exports,” Ford went on to say. “That’s why Ford strongly supports efforts to fix the Korea Agreement. Americans should accept nothing less.”

Chrysler’s stance on the issue was quite similar.

“Chrysler Group supports the efforts of President Obama and his administration to negotiate an enforceable agreement that provides meaningful market access for imported autos in South Korea,” the automaker stated.

“While Chrysler Group has supported every free trade agreement negotiated by the U.S. government, we cannot support this agreement in its current form,” officials continued. “The United States is already open to Korean vehicles and that’s why the U.S.-Korea Free Trade Agreement must be used to fully and irreversibly open Korea to American-made vehicles.”

Background on Agreement

Ford offered numerous details about why it describes the U.S.-Korea auto trade relationship as “one way.”

Ford contends Korea is the most closed automotive market in the world. This year, officials think Korea is expected to export more than 500,000 vehicles to the United States. In contrast, Ford asserts the Korean market is largely closed to imports from the rest of the world.

Ford also suggested that no manufacturer such as Toyota, Volkswagen or Fiat can export vehicles in significant volumes into Korea. In fact, officials project that U.S. vehicle exports to Korea in 2010 are likely to total less than 7,500 units.

In a market of nearly 1.5 million new-vehicle sales, Ford officials calculated that imports currently make up about 6 percent of the Korean market.

“Or in other words, vehicles made in Korea account for 94 percent of the Korean market,” Ford officials declared.

“The result of an open U.S. market and a largely closed Korean import market is that about 75 percent of the U.S. trade deficit with Korea is in automotive trade.”

AIADA Chairman Reacts to Obama’s Asia Trip

The American International Automobile Dealers Association took a much different position about the trade agreement with Korea.

AIADA chairman Rick DeSilva, a Hyundai and Subaru dealer in Mahwah, N.J., has high hopes for President Obama’s visit to South Korea this week as part of a 10-day tour of Asia.

“As nations everywhere work to climb out of the worldwide recession, it is more important than ever that the United States be an engaged and enthusiastic participant in global trade,” DeSilva began.

“America’s international auto retail industry, just one sector of our economy that benefits greatly from trade, applauds President Obama’s trip to South Korea. Dealers are optimistic that this visit indicates a move away from insular, anti-trade policies, and a step toward a more positive relationship with countries like South Korea that have waited for more than three years for Congress to ratify a free trade agreement,” DeSilva continued.

“It is high time that the United States rejoins the global market and disavows the protectionist rhetoric and policies that have stalled our economic recovery,” he added.

AIADA recounted that the United States signed a free trade agreement with South Korea in 2007. However, the association contends that the agreement remains inactive because a majority in Congress refuses to debate or vote on it as currently drafted.

If ratified by Congress, association leadership believes the agreement would eliminate tariffs on nearly 95 percent of consumer and industrial product trade and add up to $30 billion in bilateral trade between the two countries.

AIADA added Panama and Colombia are also waiting for Congress to ratify trade agreements signed in 2007.

“The U.S. Chamber of Congress predicts that U.S. failure to act on trade while other countries enact their own trade pacts could cost Americans $40.2 billion in exports and 383,400 jobs,” AIADA officials offered.

Chrysler Financial Update

Chrysler shared this week that its operating profit totaled $239 million for the third quarter.

The automaker also reported net revenues increased to $11 billion in the third quarter, up 5.2 percent from the previous quarter. The company also reduced its net loss to $84 million, down from a second-quarter loss of $172 million.

Chrysler also noted its positive cash flow settled at $419 million in third quarter, leaving the company with a further strengthening cash position of $8.3 billion.

“A year ago, Chrysler Group laid out clear and concise five-year financial goals and after three consecutive quarters of better than forecasted results, we are not only living up to our commitments but we are also exceeding our 2010 financial objectives,” Chrysler chief executive officer Sergio Marchionne stated.

“Chrysler’s financial success is dependent upon the vehicles we design, build and sell,” Marchionne continued. “In a mere 16 months, the company is delivering 16 all-new or refreshed products led by the critically acclaimed all-new 2011 Jeep Grand Cherokee and including the Fiat 500, signaling the return of the Fiat brand to the U.S. and Canada.

“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,” he went on to say. “Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive automaker.”