Chrysler’s $1.1bn operating loss was the main drag on DaimlerChrysler’s fiscal 2006 earnings, which the carmaker reported on Wednesday.
Chrysler’s worldwide sales decreased by 5 per cent to 2.7m units, making for revenues of €47.1bn ($62bn) for the year, down from €50.1bn in 2005.
The parent group of the carmaker said it would take a restructuring charge of €1bn on its 2007 earnings, with a net cash impact for the year of €800m.
However, the loss at Chrysler was more than offset by improved earnings at the company’s Mercedes Car Group, truck group, and financial services division. Mercedes Car Group reported an operating profit of €2.4bn, and DaimlerChrysler’s group operating profit was €5.5bn in 2006, compared with €5.2bn in 2005.
Earnings from the group’s van, bus and “other” segment was lower than in 2005, at €913m, compared with €1.1bn the previous year. Last year, the company lost the number-three spot in the US market to Toyota.
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