By Leftlane Staff
Friday, Sep 15th, 2006 @ 8:48 am

The Chrysler Group expects to report a loss of $1.5 billion for the third quarter of fiscal 2006. The estimate is a significant increase over the previously anticipated $600 million loss. “The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles,” parent company DaimlerChrysler said in a statement. “In the third quarter, the Chrysler Group was unable to follow customer demand with its existing product portfolio, as customers shifted towards smaller vehicles.” Price wars were also seen as a factor. “At the same time, key competitors have further increased margin and volume pressures – particularly on light trucks – by making significant price concessions,” the company said.

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