Savings will account for most of Chrysler#;s $US5.4 billion cost-cutting target this year, the Financial Times said, citing company president Dieter Zetsche.

Zetsche told the newspaper that Chrysler had set higher targets for material cost reductions and even higher goals for manufacturing and fixed costs.

Of the 26,000 job cuts planned under Chrysler#;s restructuring, 20,500 employees had already gone, mostly in the US, with 3,500 more planned this year and the rest in 2003, the FT said.

The newspaper added that Chrysler beat its $3.1 billion cost-cut goal last year by $200,000 million with no help from sales growth.

The FT said that Chrysler sales were down 10.3 percent in the first two months of this year and that market share, though slightly improved from 13.2 to 13.4 percent, was still below last year#;s goal of 14-14.5 percent.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Zetsche told the FT that he blamed industry-wide weak sales on General Motors#; discounting which had raised incentives from $1,600 to $3,000 a vehicle over the last year.

“I don’t think this is a strategy that anyone can benefit from,” Zetsche told the newspaper. “We will stay at the back of the [discounting] pack but we’re not able to ignore what’s going on.”