Chrysler records $637 million loss for 2003

[PontiacJ8]

Chrysler made money in the final three months of 2003 but not enough to lift the Auburn Hills-based automaker to a full-year profit.

Chrysler, a unit of DaimlerChrysler AG, blamed expensive incentives, costs related to its ongoing turnaround and lower sales for a $637 million operating loss in 2003, swinging from $640 million in profits in 2002.

For the fourth quarter, Chrysler reported a $180 million operating profit, up from $81 million in 2002, but could not overcome a $1.1 billion loss during the second quarter that was mainly related to costly rebates and low-rate loan offers.

Chrysler was also weighed down by $591 million in restructuring charges related to its turnaround plan announced in 2001. Chrysler has laid off more than 30,000 workers and has closed or sold several plants. Without the charges, Chrysler lost $47 million.

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[mgescuro]

OUCH... that's a lotta money.
Hope that new 300C does well for them. They are in dire need of a hit car.

[paul8488]

does chrylser failing do more bad or good for GM? i mean sure, any sales GM can grab from ANY competitors are good, but does a weak chrysler weaken the N.A. automotive market overall, or can a strong GM (and maybe ford?) carry the market?

i guess what i'm asking is whether or not chryslers poor image carries over to the other N.A. manufacturers, or if there is enough disticntion between the big 3 to allow GM to take advantage of the current sorry state of chrysler and forge ahead. i know there arew ties between the big three, if only in public perception, and i'm wondering how deep they go. do they all sink or swim?

(and don't say unequivocally that consumers see the difference... because we all know the average consumer is subject to preconceived notions and some undeserved bashing of domestic carmakers!).

[ibechip]

I don't understand why the Big 3 feel that they have to put huge incentives on cars in order to sell them. If the cars aren't good enough to sell themselves, then they need new cars. I just saw a 300C yesterday and, WOW, I absolutely love it!

[awalbert88]

The problem is, those big incentives aren't really necessary anymore. After 9/11, they were needed desperately, because everybody was scared ****less about the economy and a lot of people feared spending any money. Well, the 0% financing turned that around pretty quick, but it continued on because GM or Ford would extend their offer a month, and so the other would extend theirs by two months, and it eventually grew into a pissing contest that's still going on today.

[jro4566]

I'm betting the 300C will be a great hit for DC. MB technlogy, American style (believe me..it looks better in person), HEMI power, gorgeous interior - what's not to like? Oh yea, the RWD. They need an AWD version for our friends up North too!!

[StevenJ]

I have a feeling the incentives will end. I think they are being used because both GM and Ford are trying to push out the old models. I doubt you'll see big price cuts on the new Malibu or the upcomming 500 anytime soon. Also, the Taurus and old Malibu were a tad behind the Japanese market and needed some incentives to get buyer interest, more so GM, no offense to anyone here. GM has had larger quality problems than Ford as of recent, especially in terms of build quality. Not to insult any loyasit here again. My grandma got an 03' Malibu and she loves it and I love it too. It has a great V6 engine but it still was lagging behind the Taurus and Honda/ Toyota, interms of quality. Chrysler will always be bottom quality. They screwed themselves with bad management in the 80's and couldn't keep up. Even today they have even more quality problems than GM or Ford. I do hope the new 300 sells well but I'm not sure how much it will affect our ecconomy since they are merged with Mercedes.

[paul8488]

Originally posted by ibechip@Feb 21 2004, 12:17 AM
I don't understand why the Big 3 feel that they have to put huge incentives on cars in order to sell them. If the cars aren't good enough to sell themselves, then they need new cars. I just saw a 300C yesterday and, WOW, I absolutely love it!

well the domestics all lost market share last year, even with all these incentives... so it's no mystery why they have them. they want to move vehicles! and they can't quite wipe the slate clean every time a models sales dips. they have to recoup their redesign costs. it's nice to see (for GM's sake) that incentives are diminishing on the newer models... but i think people have come to expect them, and it'll be a while before they'll accept incentive-less cars.