Monday, December 10, 2007

Chrysler CEO sees $1.6 billion loss this year

Chrysler CEO Bob Nardelli

December 6, 2007 - 7:00 am ET

NEW YORK (Reuters) - Chrysler LLC CEO Bob Nardelli expects the automaker to lose $1.6 billion this year, the Wall Street Journal reported in its online edition, citing sources familiar with the matter.

Nardelli said the automaker's costs will exceed $64 billion, while revenue will fall shy of $63 billion, the Journal said, citing people who heard the CEO speak at a gathering of Chrysler engineers outside Detroit.

"Therefore, we will lose about $1.6 billion this year," the CEO said, according to the Journal.

Representatives of Chrysler could not immediately be reached for comment.

On Monday, Chrysler's Vice President of U.S. Sales Darryl Jackson said the company will adjust its North American production schedule weekly in 2008 as the year "looks very tough."

Detroit's Big Three automakers -- Chrysler, General Motors and Ford Motor Co. -- are bracing for industry-wide sales of roughly 16 million units this year. Analysts expect 2008 sales of around 15.6 million units.

GM earlier this week said it would cut first quarter production by 11 percent in North America. Ford plans a 7.4 percent cut in the quarter.

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