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Chrysler Group reports $1.48 billion loss

10/25/2006, 9:48 AM

By admin

The Chrysler Group today reported a $1.48 billion operating loss for the third quarter of 2006 — down significantly from a $393 million operating profit reported during the same time period last year. Chrysler attributes the poor results to a decrease in overall sales and an “unfavorable shift in product and market mix.”

Meanwhile, parent company DaimlerChrysler reported an overall operating profit of $1.13 billion, down 51 percent from Q3 2005’s $2.32 billion. Overall profit was also down 37 percent to $686 million. The lowered profit was due entirely to the weak showing by the Chrysler Group, which was the only DaimlerChrysler division to report a loss.

The Merecdes group reported an operating profit of $1.26 billion — up 127 percent from the $553 million earned last year during Q3. DaimlerChrysler truck group, financial services, and commercial vehicle division profits all increased.

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10/25, 9:57 AM

posted by:

MyGodBeatsYourGod

A LOSS of $1.48 Billion…

They also worked for Operation Iraq Liberation(OIL)…

10/25, 10:04 AM

posted by:

lanapat7

Unfavorable product mix…Decrease in sales…
The only new product was the Caliber and derivatives at Jeep. Hardly any reason to go visit the dealership.
Plus the advertising during the summer sucked.

10/25, 10:14 AM

posted by:

Fatstrat

Funny, business news reports this morning have DCX stock up $2 a share and states losses not as bad as predicted.
Typically as with all large companies there is some accounting voodoo going on and the loss is never really as dramatic as it sounds. There are also tax implications with business losses.

10/25, 10:22 AM

posted by:

James

That’s because Chrysler sucks **** through a tube and usually only has automatic in their ****ty cars. If they would grow some balls and use manual they might have better results.

10/25, 10:23 AM

posted by:

90Z

@lanapat7: Apparently, “Ask Dr. Z” didn’t work so well, eh? One product that appears to be selling well is the Big Horn Edition of the Ram. My friends & I have seen so many of them lately that we joke about all our “Big Horn” sightings.

@Fatstrat: “accounting voodoo” (lol)

10/25, 11:14 AM

posted by:

DaveO

What’s the Big Horn Edition?

10/25, 11:14 AM

posted by:

Richard

The chickens have come home to roost. Rather than finding a unique and Chrysler statement of automotive attractiveness, DCX turned the Chrysler Group into a collection of parodies of American automotive design. The cars look big and bruising. They are also ugly. This strategy got buzz. It also brought in a few new buyers. However, it lost more than it brought in.

But as bad as this strategy has been for Chrysler and Dodge, what they are doing to Jeep is a crime. Jeep means off-road. The notion that you can slap the Jeep badge on two POS’s like the Compass and Patriot just boggles my mind. Amazingly, you can now drive certain models of Cadillac and Lincoln places where certain vehicles sporting the Jeep badge can’t go.

Who would have thought it?

10/25, 11:29 AM

posted by:

lanapat7

I went to dodge.com and searched Big Horn with no results. I’m glad they are selling a lot of these.

10/25, 11:39 AM

posted by:

90Z

@DaveO & lanapat7: I couldn’t find anything on the Dodge site, either. I found this description, though:

Big Horn Value Group AFZ,
SLT Quad Cab $1,245 $1,096
Limited-slip differential, special axle ratio, sliding rear window, fog lights, P275/60R20 tires, chrome alloy wheels. NA w/Laramie Pkg., Sport Appearance Group, Off-Road Group, long bed.

See http://auto.consumerguide.com/Auto/New/reviews/full/index.cfm/id/38108/Act/Showall/
Basically, they all have the same high-polish rims & the “Big Horn” emblem on the side.

10/25, 11:47 AM

posted by:

lanapat7

Thanks 90Z. Weird that you cannot find this special package in their search engine.

10/25, 11:54 AM

posted by:

Brendino

@James: Only about 15% of new car buyers buy stick, according to NPR. That’s down from 17% in 2003. There just isn’t the market that there used to be, and since it’s cheaper to make just auto then auto and manual, car companies, especially struggling companies like Chrysler and especially for a marque that doesn’t stress sport or economy (what most stick shifters buy), aren’t gonna put it in for the sake of a vast minority. They’ll put it in Dodge and Jeep cars, but not Chrysler. It’s not smart.

10/25, 12:51 PM

posted by:

BrokenCadillac...

Nice to see such a lack of concern with Chrysler (and Ford for that matter) when it comes to difficult times. But when GM falls under hard times, and criticism flies, people ask for heads to roll and the mudslinging ensues.

I hope both Ford and Daimler come back with vengence. The f**king US Auto Industry doesn’t revolve around GM.

10/25, 1:01 PM

posted by:

GL1

As far as the stick shift Mopar cars go, If they actually do come out with the Dodge Challenger next year it is supposed to have a six speed manual ONLY I think ?

10/25, 1:17 PM

posted by:

Impulsive

“BrokenCadillac”, I think some of that GM-focused bashing is due to its size and rank … one always guns for the big fish.

10/25, 1:47 PM

posted by:

A non E Moose

Honestly, isn’t the only “desirable” car the 300 series? And that is now long-in-the-tooth, so the sales impact is gone. I mean, how may Chrysler products are really drawing attention these days?

10/25, 2:29 PM

posted by:

mujician

The caliber is selling off the charts according to CHryler. BUT, I haven’t even see one on the road yet? Were are all the Calibers? Maybe their trannys are already out???

10/25, 2:57 PM

posted by:

Freshshoebox

Mujician, I used to wonder the same thing, but now I see them everywhere. I see as many of those things as I see tCs, and I see a LOT of tCs.

10/25, 3:05 PM

posted by:

bepsf

Well, considering Chrysler doesn’t really have any fresh or appealing cars on the lots right now other than the 300/Magnum/Charger and the Caliber, I’m not surprised…
…I doubt that many folks are going to be able to make it past the new Sebring’s awful chop-job styling – more folks will likely move to Avenger styling in that size-class.

Hope they can pull themselves back into profitability (by introducing new, unique & more desirable products – not just reskinned old Mercedes Benzes (like Crossfire…)

10/25, 7:35 PM

posted by:

Richard

@BrokenCadillac,

There are only two US-owned and operated auto manufacturers, GM and Ford. If sales figures account for anything, then the US auto industry very much revolves around GM.

10/25, 9:49 PM

posted by:

James

@Brendiro, so I was right most drivers don’t have the skill to use manual. Probably too afraid to try it. I’m part of the special group that can drive one lol.

10/26, 6:59 AM

posted by:

Brendino

or, people want to talk on their cell phones and eat food instead of doing something that can be done automatically.

 
 
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