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September 5, 2008 9:54:28 PM CDT

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Chrysler CEO Predicts $1.6B Loss This Year

Posted Dec 5, 07 10:01 PM CST in Business 

(Newser) – Chrysler will be screeching toward a second consecutive year in the red, sources told the Wall Street Journal, as the automaker will lose $1.6 billion. CEO Robert Nardelli told designers and engineers this week that while the beleaguered automaker’s revenue was about $63 billion, costs exceeded $64 billion. The newly private company no longer must report earnings publicly.

In 2006, Chrysler also sped away in the red, reporting losses of $1.4 billion. Consumers have steered away from auto showrooms after home value declines and the credit market turmoil, and Chrysler, with its gas-guzzling fleet of vehicles, was hit particularly hard by higher gas prices. But Nardelli vows to cut jobs and production shifts to improve the company’s performance.

Source Wall Street Journal

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Chrysler LLC chairman and chief executive Robert Nardelli (AP Photo/Jerry S. Mendoza)   (Associated Press)
Chrysler pulled the plug on its 2006 Imperial concept, which would have been production of the company's largest and heaviest luxury car. Chrysler Officials said the decision to scrap the Imperial --...   (Associated Press)
A long row of unsold 2007 Compass sports-utility vehicles sits on the back lot of a Chrysler-Jeep dealership in Centennial, Colo., on Saturday, Oct. 20, 2007. (AP Photo/David Zalubowski)   (Associated Press)
Unsold 2007 PT Cruisers sit in a long row at a Chrysler/Jeep dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Sept. 16, 2007. (AP Photo/David Zalubowski)   (Associated Press)
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auto industry  • General Motors  • Ford  • Chrysler  • fuel efficiency  • Cerberus Capital Management  • Robert Nardelli



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