Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Chrysler Loss Deepened After Daimler Split

Filing shows a $2.9B loss in Aug.-Sept. '07, big bonus to CEO

By Jim O'Neill,  Newser User

Posted Feb 28, 2008 12:56 PM CST

(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.

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.
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.
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 of dealerships.
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)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Chrysler Roars to $225M Profit

Chrysler Suspends Workers Accused of Drinking

Obama Should Campaign on Auto Bailout

Chrysler Turns 1st Profit Since Bankruptcy

GM to Restore About 600 Dealerships


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne