Chrysler is arguably in the worst shape of the Detroit Big Three and that precarious position is taking a toll on Daimler’s financial books. Although Daimler sold its majority stake of Chrysler to Cerberus, the German automaker retains a 19.9 percent share in the Michigan company, which ultimately led to a dismal fourth quarter performance.
According to Automotive News, Daimler posted a fourth quarter loss before interest and tax (EBIT) of 1.95 billion euros, which converts to roughly $2.47 billion. Additionally, Daimler reports that its majority stake in Chrysler reduced the company’s 2008 EBIT by a total of 1.39 billion euros.
Overall, Daimler’s 2008 profit before interest and tax fell to 2.4 billion euros, down from 8.7 billion euros a year earlier. Daimler further predicted that 2009 would be a “Darwinian year” for the auto industry, adding that “further substantial burdens are anticipated on the earnings of the group and its divisions.” Daimler predicts its sales could fall another 10 percent by the end of 2009.
