While it’s no secret that domestic automakers have been struggling as of late, a new study gives us an idea of just how bad things really are in Detroit. The report found that Chrysler lost $1,111 on every car sold in North America in 2006. This loss can be attributed to labor costs, inefficiencies in design and engineering as well as a dependence on fuel-thirsty SUV’s that just sat on dealers’ lots. In contrast, Chrysler made $144 per car in 2005.
According to the Detroit Free Press, Chrysler has already started a restructuring plan that includes cutting 13,000 jobs over the next 3 years, investing $3 billion in more fuel-efficient vehicles and better inventory controlling. Since June 2006, Chrysler has cut inventory by 28%.
Much like Chrysler , Ford is also moving in the wrong direction. Ford lost more in 2006 than in 2005, totaling a loss of $12.6 billion. GM is doing slightly better, only losing $146 per car in 2006 compared with a loss of $1,271 per vehicle in 2005. In comparison, Toyota , Honda and Nissan made $1,593 per vehicle in 2006.
