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.