Chrysler Discloses $515 Million First-Quarter Loss

Illustration for article titled Chrysler Discloses $515 Million First-Quarter Loss

Chrysler LLC revealed a $515 million first-quarter 2008 loss, despite the fact that the privately held firm isn't required to discuss earnings. So what gives? Ex-lover Daimler spilled the beans Thursday, stating that its 20% stake in Chrysler lost about $105 million in value. The Detroit News did some quick math, multiplying Daimler's loss by five, and a Chrysler spokesperson eventually confirmed that the number was in the half-a-billon dollar neighborhood.

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Jalopnik Snap Judgment: A little more math, based on the fact that Chrysler really has nothing besides the Ram truck coming out this year, tells us Chrysler is on track for a $2-billion-plus loss for the year, breaking their previous record of $1.6 billion. As Rebecca Lindland, auto analyst at Global Insight, said, "From a product perspective, you can't point to a light at the end of the tunnel." Ouch. So Chrysler's survival will depend upon how deep owner Halliburton Cerberus Capital Management's pockets are. Or how quick they can sell it off. [Detroit News]

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DISCUSSION

thank god they never tried to spin a PT replacement off Caliber. one of the reasons PT worked as well as it did is that when the engineers realized that the Neon platform wouldn't provide a flat load floor, they ENGINEERED their way through by making a unique rear suspension with a Watts linkage.

under Daimler, this kind of thinking would have had them dragged out back and shot.

there's even a greater need right now for small, premium vehicles with flexible, livable interiors and strong mileage.

Chrysler LLC, are you listening? PT Mk2 is what you really need right now... and you have no idea how to deliver it.