Chrysler has joined US rivals General Motors and Ford in suffering major losses and announcing it will make fewer vehicles. It now plans to cut production by 135,000 in the second half of the year. That is in response to falling sales of its larger and less fuel efficient vehicles in the face of higher petrol prices.
DaimlerChrysler’s chief executive Dieter Zetsche – in a briefing for motor industry analysts – said the company had fallen significantly short of its plans to increase sales. He also said Chrysler is examining its structural costs and will act on them if necessary.
The company now predicts that it will lose almost one billion euros this year and its share of the US car market will fall to 10.6%,putting it in fourth place behind General Motors, Ford and Toyota. GM and Ford have both announced major restructurings including production cuts through to the end of this year.