Chrysler group to post $1.5 billion loss in third quarter (Breaking)

Autonews ^ | 9/15/06 | Mikey_1962

[Mikey_1962]

Chrysler group to post $1.5 billion loss in third quarter

FRANKFURT (Reuters) -- DaimlerChrysler cut its 2006 operating profit forecast by around $1.27 billion (1 billion euros) today and predicted the Chrysler group could lose $1.5 billion (1.2 billion euros) in the third quarter, much worse than first thought.

DaimlerChrysler now expects 2006 operating profit of only around $6.34 billion (5 billion euros).

[Mikey_1962]

This was not expected......

[Post-Neolithic]

"DaimlerChrysler now expects 2006 operating profit of only around $6.34 billion"

Since when was 6 Billion dollars profit considered a loss? I wouldn't mind that kind of loss.

[Mikey_1962]

The Chrysler group had a loss, DMX had a profit.

[Mikey_1962]

Sorry DCX had a profit.

[Pamlico]

I bought my wife a 2006 Mercedes Benz E350 this spring. It is the best and most beautiful car I have ever owned. But we still use my GMC Yukon XL for trips. The kids love the room.

[alice_in_bubbaland]

That's a shame, their product quality has been improving since the merger.

[stevio]

It's all due to the Dr. Z commercials.

[stevio]

How many kids do you take on your trips? I have 4 and I'm trying to talk my wife into a SUV and out of the minivan.

[Hoodlum91]

I'm not shocked that it's the Chrysler group is the one bringing everything down. I've heard Chrysler has improved since the merger, but they were such POS's to begin with, they have a lot of negatives to overcome.

[Tinman93]

I'm not a big fan but sure some of that will change when the "Smart Car" comes to America. I know I'll be getting one.

[Rummenigge]

That's not a product that would influence the numbers at the end of the fiscal year (although I wish it was, the production of smartforfour has been canceled - the enginners of that production plant are customer of mine now facing the decomission of their plant)

[AngryJawa]

"Dr. Z, please pick up the pink courtesy phone..."

[roscommon]

I just returned from a few weeks in Italy and was greatly impressed with the Smart Car. It is perhaps the perfect car to have in an urban driving environment. I was even lucky to encounter the roadster model while walking back to my hotel in Rome late one evening -- very cool. My wife thought I was crazy to like such a small "get around the town" car. She felt that in now way could those cars be safe in an accident. Well, a few days later as we were walking near the Vatican all of those fears were set aside when we happened upon a three car car wreck. The Smart Car was hit from the front and back -- twisted metal was easily seen. The Smart Car was sandwiched. The car that hit it head-on was a modern FIAT and a Mercedes hit from behind.

Let me paint a picture.

The Fiat was completely totaled -- the poor old man driving was dejected. If the Smart Car had any damage in the front, I couldn't see it. The only damage I could see was from the Mercedes hitting the bumper where it produced a crack around three to four feet long. Other than that the Smart Car came through with flying colors. Mercedes has really done an exceptional job engineering this little car. I would totally recommend someone buying it if they live in a densely populated area where parking is a premium and they don't need much storage.

On a side note, by the looks of it, the Smart Car is even smaller than the original Mini Cooper!

Roscommon

[JackDanielsOldNo7]

You would not happen to be from Pamlico County in NC would you? I am from New Bern. Always loved going down to the County.

[BW2221]

"It's all due to the Dr. Z commercials."

In large part, you are right. Chrysler and BBDO (it's ad agency) were hoping that "Dr. Z" would be the second coming of Lee Iococca. Unfortunately, studies show that the majority of consumers think "Dr. Z" is a fictitious character.

One of the reasons Toyota has been so successful is that experiential events are such an important part of its marketing. They have cars where people can see and touch them. The "Big Three," particularly Chrysler Group, still relies on mass media.

[BW2221]

Unfortunately, in the mid 1990s, when the company was making huge profits, Chrysler invested a large share of its profits on executive bonuses (many three times annual salary) rather than improving quality.

[Inspectorette]

Aww - I thought Dr. Z was totally cool!

[Psycho_Bunny]

Really?  I was looking at the E and C series a few months ago and was stunned by how badly Mercedes has completely lost it.

When I opened the doors on one, there was a plastic on plastic grinding sound.  Another, the glove compartment wouldn't close without slamming it into the dash, full force.

I walked out of the dealership deciding that I'm just going to keep driving my 83, 240 D until it falls apart and won't roll anymore.

Actually, at the rate it's going, I'll be dead long before that.

[BW2221]

He is. When he lived in the Detroit area, his wife was arrested for serving beer to high school boys (isn't that what they do in Germany?). He just can't sell cars.

One of the problems with the commercials was that Chrysler was offering "employee pricing for everyone" and special financing and that part of the message was lost.

Promoting German engineering may not be such a good thing to promote any more. If you follow J.D. Power surveys, most German vehicles are below industry average in quality. VW totally sucks.

[rightwingextremist1776]

I'm not shocked that it's the Chrysler group is the one bringing everything down. I've heard Chrysler has improved since the merger, but they were such POS's to begin with, they have a lot of negatives to overcome.

Oh, I think Ford and GM have been building many more POS autos then Chrysler, with their quality and engineering severely lacking. I don't recall any SUV rollover problems or massive recalls plaguing Chrysler. I've had nothing but good luck with Chrysler since the early 90s. My wife's 95 Neon went to 190K miles before we sold it with no major problems. I think your opinion is colored at best.