DaimlerChrysler has today reported record first quarter losses totalling £2.3 billion.
The first quarter results were in “consistent” with the figures announced at the annual press conference in February, with the losses put down to substantial one-time non-recurring expenditure at the Chrysler Group and Mitsubishi Motors. Earnings fell by £1.9 billion.
Looking at the individual divisions within the group, Chrysler registered a 28% drop in unit sales to 660,990, primarily because of the weaker US market. Revenues were below last year. Operating losses amounted to £833.7 million.
The 'showcase' brand the group, Mercedes-Benz, however, showed an increase in car sales of 10% to 266,400 units, setting a new record of the eighth year in a row.
Mercedes-Benz and Smart increased revenues by 13% to £6.8 billion. Operating profit was up 13% to £600m.
Mitsubishi Motors is expected to break even this financial year, through “considerable reductions in fixed and material costs” and the introduction of two new models in June and the autumn.
“Now that DaimlerChrysler has acquired 3.3% of Mitsubishi Motor's shares from Volvo, new, global perspectives will be opened up for Mitsubishi as a result of co-operation with DaimlerChrysler in the field of commercial vehicles,” a DaimlerChrysler spokesman said.