Better times are still around the corner, Chrysler group executives say.
On Thursday, Feb. 19, the company announced that it failed to reach its breakeven target last year.
The Chrysler group reported an operating loss of $637 million in 2003, including $591 million relating to restructuring. Excluding the restructuring charges, the company lost $47 million.
The restructuring expenditures are associated with the sale of parts operations, the closing of a foundry and job reductions.
"We will push forward with efficiency improvement programs and strengthen our competitive position with a continued product and quality offensive," said DaimlerChrysler CEO Juergen Schrempp about Chrysler group operations.
"In 2006, two out of three vehicles will be from model ranges less than 3 years old."
Chrysler's U.S. marketing costs as a percent of revenues climbed to 22.2 percent in 2003, compared with 19.2 percent in 2002.
The Chrysler group's lackluster performance led parent DaimlerChrysler to caution that the corporation expects only "a slight increase in operating profit" in 2004.
"The company foresees significantly improved earnings in 2005 and 2006 when the new vehicles from the divisions' current product offensives will be available," DaimlerChrysler said in a statement.
As reported at the beginning of February, DaimlerChrysler's operating profit totaled $7.2 billion in 2003, compared to $8.6 billion in 2002.