Chrysler CEO tells workers of wider loss
By Sharon Silke Carty
USA TODAY
The following story was also posted online at www.leasetrader.com.
DETROIT — Chrysler will lose about $1.6 billion this year, worse than the $1.4 billion operating loss it posted for 2006, a source says CEO Bob Nardelli told a group of designers and engineers recently.
The source, who spoke to USA TODAY on condition of anonymity because Chrysler is a private company that doesn't report earnings, said the automaker still plans to break even in 2008.
Detroit rivals General Motors and Ford Motor have said it will take them until 2009 to stop losing money.
A Chrysler spokesman declined comment.
Nardelli, former CEO of Home Depot, was hired in August just as Cerberus Capital Management took over the ailing automaker. Cerberus bought 80.1% of Chrysler from its former owner, German car company Daimler, which retained 19.9%.
Separately, Nardelli told employees during a webcast last week that although he believes the automaker has cut as many workers as it needs to, Chrysler will continue slashing jobs if it cannot meet its goals. The company said previously it would cut 25,000 jobs, including 1,000 buyouts. Chrysler announced 12,000 of those in November, just after employees represented by the UAW ratified a new four-year contract.
Chrysler already has said it will eliminate four products through 2008: Dodge Magnum wagon, convertible version of Chrysler PT Cruiser, Chrysler Pacifica crossover SUV and Chrysler Crossfire sports car. Chrysler plans to add two new products: Dodge Journey crossover SUV and Dodge Challenger sports car, along with gasoline-electric hybrid versions of its Chrysler Aspen and Dodge Durango SUVs.
Chrysler became a private company this year when Cerberus bought its stake, the first time an American automaker has been privately held since Ford Motor went public in the 1950s.
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com