Private Chrysler Forced to Go Public with Financial Loss
July 24, 2008
Chrysler reported Thursday it lost $431 million in the first quarter of this year. It was the first time the automaker has revealed how much it is making or losing since it went private last summer.
Chrysler was forced to go public with its financials when Daimler AG reported a first-quarter profit decline Thursday morning. Daimler retains a 19.9 percent stake in Chrysler, while privately held Cerberus Capital Management owns the other 80.1 percent. Daimler's financial report indicated huge losses from Chrysler.
However, the Detroit automaker issued a clarification, including its loss for the first-quarter, to reconcile differences in U.S. and international accounting practices that made its loss appear higher.
In total, Daimler lost $509 million in Chrysler Holding, which includes its stake in the automaker as well as Chrysler Financial.
Still, Daimler significantly lowered the book value of of its stake in Chrysler to 171 million Euro as of June 30, down 376 million Euro since March 31.
Posted by Michelle Krebs at 12:10 PM under Business , Chrysler | Comments (1) | digg this | Seed Newsvine
The boys at Daimler deserve a Sales Team of the Decade award for pawning off Chrysler to Cerberus. Did they really think they could turn that company around?
Posted by: estreka | July 24, 2008 at 2:24 PM