Chrysler to remain unprofitable in 2008

Chrysler CEO Robert Nardelli announced Thursday night that Chrysler will not see a profit at the end of the year. The head of Chrysler was not disappointed though, stating the company was on track to meet the goals it had promised new owner Cerberus Capital Management.

While Chrysler hasn't said when it expects to return to profitability, Nardelli was keen to demonstrate just how willing the carmaker was to turn around its fortunes through producing a quality product. Nardelli told the SAE World Congress in Detroit this week that Chrysler was not just looking to launch new technologies but was keen to see improvements throughout the entire production and design process, reports the Detroit Free Press.

One of its new initiatives was the formation of separate engineering teams for specific vehicle technologies. There are already teams working on new cabin designs, electric-drive systems and new global platform development.

Nardelli also discussed Chrysler's international reach, especially its deal with Nissan which will have the Japanese auto giant building small cars for Chrysler. He was also quick to point out that Chrysler had not been negotiating with Fiat, as we previously reported, but knowing how dubious and secretive manufacturers are with their future plans we wouldn't take it as gospel.

Another area where Chrysler is streamlining its processes is with its dealer network. Many standalone Jeep, Dodge and Chrysler dealers will be consolidated under one umbrella to form super-dealerships. However, a number of new service stores will be opened in metropolitan markets to ensure owners will be able to have their cars maintained without having to wait for busy dealerships to look after them.

Last month Chrysler revealed a new three-year ‘Recovery and Transformation Plan’ that could see the carmaker return to profitability sometime in 2011.