Friday, December 28, 2007

In 2007, Chrysler Expects $1.6 Billion Loss

Chrysler Expects $1.6 Billion Loss in 2007
By Ward’s Staff From Wires

Chrysler LLC CEO Bob Nardelli tells a group of engineers and designers the auto maker is on track to post a $1.6 billion loss this year, according to a report in The Wall Street Journal.

The report, citing a person familiar with the situation, says Nardelli expects revenue of $63 billion, short of the $64 billion in costs the auto maker will incur for the year.

“Therefore we will lose about $1.6 billion this year,” Nardelli is quoted as saying.

Since assuming control of Chrysler in August, private-equity firm Cerberus Cerberus Capital Management LP has slashed thousands of jobs and eliminated four models from its lineup in an effort to get costs under control.

Last week, Steven Landry, executive vice president of North American sales, informed a group of business students from St. Mary’s University in Halifax, Nova Scotia, of the expected loss.

“You have to come to the realization that in some instances, you’ve got to stop spending,” Landry says in a published report. “You’ve got to rightsize what you do to the revenue that comes into the company.”

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