US: Chrysler costs running over revenue
Chrysler's new bosses are already running into problems, and according to latest reports, costs this year are expect to come in a billion dollars higher than sales.
In 2007, Chrysler is expected to generate a turnover of around US$64bn, but costs are around US$65bn, according to Chrysler sales director, Steve Laundry, speaking to US media.
The loss is attributed to massive costs for separating the company from the DaimlerChrysler group and for job cuts.
Chrysler does not have to publish its figures now that it is a private company.
Private equity firm, Cerberus, acquired Chrysler at the end of this summer. Daimler retained a 20% stake in the company.
Chrysler has since cut tens of thousands of jobs, but Cerberus is now struggling with the US credit crisis and is seeking to refinance some of Chrysler's debts.
One of Chrysler's major challenges is to reduce its dependence on the North American car market. Only eight percent of group sales are outside North America.