Chrysler didn’t loose that much
Chrysler is now a private company. Unlike General Motors and Ford, whose stocks are publicly traded, Chrysler doesn’t have to show you the books unless it wants to. So while the other two big American carmakers had to disclose record losses in their quarterly reports this week, Chrysler got to keep its mouth shut. One problem: Daimler, who still owns almost 20 percent of Chrysler, is publicly traded, and Daimler must report the value of its stake in Chrysler. In its disclosure, Daimler said that it had lost €373 million ($584 million) from Chrysler in the first quarter of this year. Chrysler, who does not want to give the appearance of knocking on death’s door, was quick to point out that outside items, including the difference between the U.S. and international accounting standards, make the actual loss more like €65 million ($102 million).
The press release with full breakdown after the jump.
Auburn Hills, Mich., Jul 24, 2008 -
Today, Daimler AG reported on its 19.9 percent share of Chrysler Holding LLC’s first quarter 2008 results under IFRS. Daimler AG’s results for Chrysler Holding LLC include net losses of €65 million on a U.S. GAAP basis, of which a €55 million net loss is attributable to the automotive business of Chrysler LLC.
The difference between the loss of €373 million reported by Daimler AG related to its 19.9 percent interest in Chrysler Holding LLC and the €65 million of net losses is attributable to the following:
- Adjustments for differences between U.S. GAAP and International Financial Reporting Standards (IFRS) - (€130 million loss)
- Daimler AG adjustments related to Chrysler LLC’s 2007 restructuring actions - (€73 million loss)
- Other Daimler AG adjustments not related to Chrysler Holding LLC results - (€88 million loss)
- Daimler AG impairment of its rights related to Chrysler vehicle residual values - (€17 million loss)
Chrysler Holding LLC is comprised of Chrysler LLC, the automotive company which manufactures and sells Chrysler, Dodge and Jeep® vehicles worldwide and Chrysler Financial which provides financial services for these vehicles in the North American region.