Chrysler LLC Clarifies Daimler AG's Third Quarter 2008 Earnings Announcement
Related to its 19.9 Percent Interest in Chrysler Holding LLC
AUBURN HILLS, Mich., Oct. 23 /PRNewswire-AsiaNet/ --
-- Announces production changes due to ongoing global economic downturn
Today, Daimler AG reported a net loss of euro 351 million for its 19.9
percent share of Chrysler Holding LLC's second quarter 2008 results under
International Financial Reporting Standards (IFRS). On a U.S. GAAP basis, Daimler
AG's net loss for Chrysler Holding LLC was euro 88 million, of which a euro 76
million net loss is attributable to the automotive business of Chrysler LLC.
The difference between the loss of euro 351 million reported by Daimler AG
related to its 19.9 percent interest in Chrysler Holding LLC and the euro 88
million of net losses is attributable to the following:
-- Adjustments for differences between U.S. GAAP and IFRS accounting
standards which equate to approximately a euro 171 million loss;
-- Other Daimler AG adjustments not related to Chrysler Holding LLC
results totaling approximately a euro 92 million loss.
Chrysler Holding LLC is comprised of Chrysler LLC, the automotive company
which manufactures and sells Chrysler, Dodge and Jeep(R) vehicles worldwide,
and Chrysler Financial which provides financial services for these vehicles in
the North American region.
Additionally, in response to the continuing global economic slowdown and
auto industry contraction, as well as the market's continuing movement toward
smaller vehicles, Chrysler LLC is announcing the elimination of one shift of
production at its Toledo (Ohio) North Assembly Plant and the pull-ahead of the
closure of the Newark (Delaware) Assembly Plant. The schedule change will adjust
inventory to better match consumer demand.
"The markets are facing unprecedented turmoil and we are in a time of
historic change in the auto industry," said Frank Ewasyshyn, Executive Vice
President - Manufacturing, Chrysler LLC. "These tough, but necessary steps are
vital to our long-term viability. However, these headwinds will not prevent
Chrysler from aggressively pursuing its mission to respond to consumers with
products they demand, like the all-new Dodge Ram, which was recently named 'Full-
Size Pickup Truck of Texas'."
The shift reduction at Toledo North will be effective December 31, 2008,
and will affect approximately 825 jobs. The closure of the Newark plant will
also be effective December 31, 2008, and will affect approximately 1,000 jobs.
Chrysler is committed to working with the UAW to address the represented
manpower reductions in a socially responsible manner. As the Company has done
in the past, the UAW and management leadership will hold employee meetings to
review special programs that will be offered at the affected locations.
Currently, the Toledo North Assembly Plant has approximately 2,100
employees and operates on two shifts, producing Dodge Nitro and Jeep Liberty.
Employees are represented by UAW Local 12.
The Newark Assembly Plant builds Dodge Durango and Chrysler Aspen and has
been operating on one shift since July 2006. Its idling was first announced in
February 2007. Newark Assembly Plant currently has approximately 1,000
employees who are represented by UAW Locals 1183 and 1212.
About Chrysler LLC
Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler,
Jeep(R), Dodge and Mopar(R) brand vehicles and products. Total sales worldwide
in 2007 were 2.7 million vehicles. Sales outside of North America were the
highest ever with an increase of 15 percent over 2006. Its product lineup
features some of the world's most recognizable vehicles, including the
Chrysler 300 and Town & Country, Jeep Wrangler and Grand Cherokee and Dodge
Challenger and Ram. The Chrysler Foundation, the company's philanthropic arm,
annually supports hundreds of charitable organizations in the United States and
throughout the world. In 2007, the Foundation gave approximately $21 million in
charitable donations.
SOURCE Chrysler LLC
/NOTE TO EDITORS: For more information, please visit the Chrysler media site
/CONTACT: Shawn Morgan, +1-248-512-2692 (office), +1-248-760-2621 (cell),
sm718@chrysler.com, or Ed Saenz, +1-248-512-2678 (office), +1-248-760-8267
(cell), ejs37@chrysler.com, or Mary Beth Halprin, +1-248-512-2658 (office),
+1-248-766-1551 (cell), mh166@chrysler.com, all of Chrysler LLC/
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