Chrysler may be looking to the future with its trio of electric vehicles, but the Michigan automaker has to face the reality of its current financial situation before it can get any future vehicle plans off the ground. Unfortunately for Chrysler, the company is still hemorrhaging money and reportedly lost $400 million through the first eight months of 2008.
According to the Wall Street Journal, Chrysler CEO Robert Nardelli told Chrysler’s network of dealers that the automaker lost $400 million through August despite a host of cost cutting measures. Moreover, Nardelli revealed that Chrysler’s sales were down 24 percent through August.
Although losing $400 million can’t exactly be filed under the good news category, Chrysler lost $1.6 billion in 2007, so things are at least improving.
However, Nardelli warned that further job cuts could be in Chrysler future, especially if Congress doesn’t approve a $25 billion loan package. If that loan package is no passed, Chrysler would likely be forced to make further cuts in order to free up capital to fund its costly – but highly necessary – electric vehicle plans.
