Although Chrysler is now a privately held company and is not required to report its quarterly results, the Michigan-based automaker has announced that it lost $515 million in the first quarter of 2008. Chrysler was prompted to publish its first quarter results after Daimler – which still has a 19.9 percent stake in Chrysler – reported its stake in the U.S. automaker has lost over 80 percent of its value in the last six months.
Based on European accounting standards, Daimler says that its stake in Chrysler cost the company $585 million last quarter. However, Chrysler claims that Daimler’s losses only amounted to $103 million, using American accounting standards, according to The Detroit News.
Experts say that Daimler is using extremely conservative estimates to value Chrysler’s assets in order to speed up the write down process, so Chrysler’s figure is probably closest to the actual number.
Using Chrysler’s first quarter results as a measuring stick, the U.S.’ third largest automaker is on pace to lose more than the $1.6 billion Chrysler execs say the company lost last year. But with no fuel-efficient vehicles in the Chrysler pipeline – save for a Chrysler-badged Nissan car – Chrysler’s financial results could get much worse before (or if) they get any better.















07/25, 10:24 AM
posted by:
RaineMan
Na na na na… na na na na… hey hey hey… goodbye.
07/25, 10:28 AM
posted by:
shaver
Totally awesome! Anymore great news today, like 220,000 foreclosures in the 1/4 or a piece of plane fuselage falling out? Im just going to avoid the news before people start jumping out of buildings.
07/25, 10:30 AM
posted by:
vincentvegas74
it’s going to take a lot more than that to kill a compay this size…..so don’t be counting them out yet.
07/25, 10:37 AM
posted by:
vincentvegas74
didn’t ford just announce an 8.7 billion dollar loss in there second quarter??? You’d think that they would just shut the doors.
07/25, 10:47 AM
posted by:
RaineMan
Ford may have posted a larger loss… but they have a lot more to lose.
07/25, 11:11 AM
posted by:
xkr
haha haaaha
07/25, 11:11 AM
posted by:
xyunya
Well guys, we simply don’t know the depth of Cerberus deal with M-B. I imagine, that when 80% of stock went to Cerberus, there were strings attached. Cerberus was aware of what is getting into and had an eye on economy. Now it is a private company, not bound by any federal reporting regulations like a public company, so I would imagine all parties are aware of future costs and pitfalls. Half a bill, is tough to swallow, but almost 8 bills is tougher. And Ford does not really have much better line-up: Focus is 10-12 y.o. and Caliber is relatively fresh platform. Also, Chrysler may not have car, but they do have 3 small engines, which are tunable for economy and Chrysler can lower ratio on trannies to improve economy. Ford will not access to European models overnight as well, but they already exhausted all lines of credit and simply can’t get any more credit or bonds. They only can dip into private financing (Tracinda) and they already played the card.
07/25, 12:35 PM
posted by:
VictorRaikkonen
There is not day of updates that goes by that we do not see a post about their woes. Seriously, will they just die already so that LLN can stop posting these stories and we can stop saying the same thing over and over again.
07/25, 1:07 PM
posted by:
brassmonkey
oooh. “Only” $103 mm. Must have a good team of accountants.
07/25, 1:18 PM
posted by:
ktulu
one company sells itsel,f on a four scylender and a mid-size w/ a gr8 reputation. Another sells itself withn minvans jeeps and big trux. whoi makes the profit?
Y do theu keep reporting losses when they don’t have 2/
Whose accounting standards do U trust?
people start jumping out of buildings soon.
07/25, 1:49 PM
posted by:
lamboz get a life
Lets hope for the sake of the “automotive genius’s” on the site like Triple Five Fag that Chrysler completely goes under and thousands upon thousands of people lose there jobs. Not only those whom work under the Chrsler name, but the transport drivers, dealership employees, and all the umbrella companies that supply Chrysler. That would be great for the U.S.A. Screw them anyhoo because as long as it does not personally effect me, who cares. But then it will personally effect you or someone you know, maybe donn the road your own kids. (for those on here whom are actually capable of doing that.)
If we are lucky those grateful Japanese or Germans will buy the factories, re-do them in all white and hire us Americans to work for them. They really do care. Maybe some day we won’t even have to mess around with running our own companies , we will let the foriegners invest and buy all of them out. No stress there by-God.
Oh I’m ranting, I must be some stupid patriotic racist hillbilly Republican whom wraps himself around the flag. What a loser I must be.
07/25, 4:46 PM
posted by:
xyunya
lamboz get a life, in the beginning of the century it was over 100 car companies making cars in US. Much less now, but US is here and economy and country is moving forward. Republicans, like me, believe in free enterprise and open markets. I have a feeling free enterprise will prevail if Chrysler will survive or not. BTW, I think Chrysler will survive, Ford and GM is a different story.
07/25, 4:56 PM
posted by:
lamboz get a life
You don’t get it and never will. It’s not free enterprise when the table is lopsided. So if America has zero large corporations of it’s own and we all work for foreign owned companies, that to you is still good for America?
07/25, 5:29 PM
posted by:
jayjc08
Xyunya- Do you even understand what most of those 8.8 billion dollars was spent/lost on?
LLN was very bland on what products and what loses Ford had. Not trying to suck up for Ford here, but let’s get some facts right. Total revenue fell only from 44.2 billion dollars, to 41.5 billion.
Out of that existing drop, $2.1-billion was to write down the value of it’s leases written by it’s finance unit. Another $5.3-billion charge went to write down the value of its North American operations. In total, it’s losses due to vehicles is somewhere in the billion dollar mark, although I don’t have those figures.
Also, Mercury is getting into the market with a compact based on the Ford Focus platform in the near future, 2009 or 10.
And get over it, the European Focus is ALSO 10 years old using that logic. It still rides on the same frame as the original one, and both our American and European versions are improved over the last generations frame. Engine choices have been improved and some very serious engine options are on the way, I can guarantee. If your upset about looks, that’s your opinion. MY opinion is the Euro Focus is **** compared to ours. The only thing that the European Focus gets right is more engine options, and better looking from the outside. The Euro interior is grotesque compared to the one we have, and 40% of people own one as a second car, not some sporty, cool and hip hatchback. The only thing I would have asked for is the exterior styling of the Euro Focus, they can keep their interior and the majority of their engines too.
And saying that “Republicans, like me, believe in free enterprise and open markets” is all crap. Get some sense and knowledge and you’ll see it doesn’t matter Republican or Democrat, 90% of them are crap anyways.
Our current market is probably the least open and free it’s ever been, end of argument. You can still argue all you want, but from an unbiased point of view I still have less rights than I did 20 years ago, and my business and life are more constricted than ever through regulations; ****, most people can’t even wash their own cars in their own driveways. Seeing how you know quite a bit about stocks and what not, how about you look into all of the internet programs that have been shut down as of recently because a few uneducated members referred to their programs as ones that created “interest” or “loans” (not literal interest, like what you would gain or loose at the bank over a period of time, etc..)? After everything goes through court, your lucky to earn a penny on the dollar since Uncle Sam and his lawyers dipped their fees into the process. And you think all of this, added to millions of jobs lost and foreclosures, increasingly sensitive enviromental weenies who will NOT allow us to drill for our own ****ing oil of which we have plenty, limiting many resources and powerplant structures, a President who is considering more bombing, and “pre-chosen” Presidential runners who still make us choose between dumb and dumber makes us move forward, right? What exactly are we moving forward in then, obesity and malnutrition?