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August 29, 2008 4:57:13 CDT

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Chrysler Loss Deepened After Daimler Split

Posted Feb 28, 08 12:56 CST in Business 

(Newser) – Chrysler lost nearly $2.9 billion in a 2-month period last fall, after its split from Daimler, a filing by the German company shows. The filing by Daimler, which retains 19.9% of the automaker, offers a rare look at how costly the company's reorganization effort has been since it was taken private by Cerberus Capital Management in May, the Wall Street Journal reports.

Daimler also gave then-Chrysler CEO Tom LaSorda a bonus of approximately $15.7 million—an amount that could irk leaders of the United Auto Workers, which agreed to significant cuts to revive the flagging Detroit icon. Current CEO Robert Nardelli told employees in December the now-private company was "operationally" bankrupt and would lose $1.6 billion in 2007.

Source Wall Street Journal

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Chrysler LLC Vice Chairman and President Jim Press stands next to the company's logo at the automaker's headquarters in Auburn Hills, Mich. The company lost $2.9 billion in an eight-week period last year.   (Associated Press)
Chrysler Vice Chairman and President Tom LaSorda earned a 10.4 million euro bonus last year.   (Getty Images)
Unsold 2007 300 sedans sit at a Chrysler dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Feb. 3, 2008. Chrysler LLC plans to significantly reduce its product lineup and number...   (Associated Press)
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Detroit  • earnings reports  • Chrysler  • United Auto Workers  • Robert Nardelli  • DaimlerChrysler  • Tom LaSorda


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