Chrysler's 2007 loss could top $6.8 billion

Posted Wed Apr 30 2008 10:19 AM by Viknesh Vijayenthiran

Since Chrysler is under private control it has no obligation to release financial results but according to its former parent company, Daimler AG, its result for the 2007 financial year could be a loss of more than $6.8 billion. Daimler indicated that Chrysler lost roughly that amount in the last five months of 2007, however this is based on calculations using international accounting standards.

The German carmaker also reported that it lost $780 million in the first quarter of 2008 mainly because of the falling residual values of Chrysler vehicles and the poor performance of Chrysler's financing arm.

A spokesperson for Chrysler said the results are misleading because international accounting standards as opposed to U.S. procedures distort the carmaker’s performance. Speaking with the Detroit Free Press, spokesperson Katie Hepler said Chrysler had in fact made positive operating earnings since its sale to Cerberus Capital Management.

The only indication from Chrysler of its financial performance was a statement this month from its CEO Bob Nardelli claiming the carmaker would remain unprofitable this year and before that he stated Chrysler would only return to profitability in three years’ time.

Reader Comments

Wed Apr 30 2008 9:53 PM
HECTOR says

$6.8B loss? Oh, gee, then by all means, let's continue trying to revive faded glories like that thing in the picture that attract a small number of 40 years old instead of looking to the future and new buyers...

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