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.
