Chrysler CEO Bob Nardelli revealed earlier this month that the automaker will likely lose $1.6 billion this year, but that could just be the tip of the iceberg. Nardelli stated that Chrysler’s costs will total $64 billion, with revenue falling just short of $63 billion.
Nardelli also revealed that Chrysler was actually at the verve of bankruptcy. “Someone asked me, ‘Are we bankrupt?’” Nardelli told The Wall Street Journal. “Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with.”
Nardelli’s plan to turn around Chrysler ’s North American operations includes the sale of $1 billion worth of assets, improved interiors in Chrysler vehicles, achievable sales goals and an increase in overseas suppliers.
2008 could be another tough year for Chrysler and the auto industry in general. Chrysler’s Vice President of U.S. Sales Darryl Jackson has already said that the automaker will adjust its production schedule on a weekly basis in 2008.
