Chrysler losing $1 billion this year
Despite the cost-cutting moves by Chrysler president Robert Nardelli, the company expects it will spend $1 billion more than it takes in during 2007, up from a 680 million loss last year. The statement came in a speech by Chrysler vice-president of North American sales, Steven Landry, in a speech to a business class at a school in Nova Scotia. As a private company, not publicly held, Chrysler no longer reports financial results publicly.
The expected cash outflow is identical to the amount of money Chrysler was previously reported as attempting to raise through sales of surplus real estate.
Landry also stated that the company’s turn around plan calls for it to break even in 2008, and be profitable in 2009. That is the same schedule announced under former president Tom LaSorda, back when Chrysler was still owned by Daimler. The LaSorda plan, however, called for much fewer job cuts than have been implemented by Chrysler’s current management. Additionally, Chrysler president Robert Nardelli has indicated that further personnel cuts are likely.
Landry also indicated that Chrysler may be trimming four more models from its line-up, though a company spokesman later clarified the remarks to indicate that no immediate moves were contemplated. Rather, Landry was reflecting the total number of models – twenty – which company management believes is ultimately appropriate for the markets in which the company competes.