Thread: Despite Strong Results at Finance Unit, Chrysler Posts $1.5B Loss
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Old Feb 14, 2007 | 05:14 PM
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Sharonaln67
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From: Ozona, FL
Default Despite Strong Results at Finance Unit, Chrysler Posts $1.5B Loss
Youch... please tell me the jobs that they cut won't impact the (lack of) support we already have on our cars... I know they don't go hand-in-hand however there has got to be an impact at some point.

Record earnings for a fifth consecutive year at DaimlerChrysler Financial Services helped offset a “significant decline” in Chrysler Group earnings, according to a statement released by automaker DaimlerChrysler AG. The German-American automaker posted net income of $4.3 billion, an increase of 13% compared with profits of $3.8 billion in 2005.

Worldwide sales for Chrysler Group dropped 5%, and it posted an annual operating loss of $1.5 billion, compared with an operating profit of $2 billion in 2005. In the fourth quarter alone, Chrysler Group had operating losses of $164 million, compared with operating profits of $565 million for the same period in 2005. DaimlerChrysler did not state net income figures for any of its divisions.

In response to the losses, Chrysler Group said Wednesday said it will cut 13,000 jobs, or 16% of its workforce, in order to return to profitability by 2008, according to a Reuters story.

Financial Services achieved record earnings for the fifth consecutive year, with an operating profit of $2.3 billion in 2006 compared with $1.9 billion in 2005. DaimlerChrysler attributed the positive gains to increased new business and improved efficiency, which offset higher interest rates and increased risk costs.

At the end of 2006, the portfolio of Financial Services had 6.5 million leased and financed vehicles, according to DaimlerChrysler. The North and South America region had a total contract volume of $106.1 billion at the end of 2006, compared with $113.4 billion at the end of 2005.
 
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