Ford and GM claimed losses of over $20 billion in the second quarter of 2008, which is more than the GDP of some developing countries. Chrysler has seen larger sales decreases than its fellow Detroit automakers, but in terms of cash losses, team Pentastar is way ahead of the domestic pack. Chrysler CEO Bob Nardelli gave dealers
the financial lowdown Tuesday, but declined to provide details to reporters. Even though Chrysler's losses of $400 million are far less daunting than its U.S. counterparts, the Auburn Hills, MI automaker is far from overjoyed. Nardelli told dealers that the losses came in spite of large-scale cost cutting, and he mentioned that 2008 sales were down 24% year over year.
The privately owned automaker still has $11 billion on hand, but Nardelli warned that if Congress doesn't approve a $25 billion loan, more job cuts and other cost cutting measures would be necessary. Chrysler also needs the federal loan to reach its goal of bringing just one of its three recently introduced EVs to market by the end of 2010.
[Source: Automotive News
, sub. req'd]