Chrysler sets out new shrink-to-fit strategy

Chrysler sets out new shrink-to-fit strategy

By Bernard Simon in Toronto

Published: February 9 2008 20:51 | Last updated: February 9 2008 20:51

Chrysler has embarked on an ambitious, four-to-six year plan to bring its operations in line with its shrunken market share and with the changing tastes of American car buyers.

Comparing the troubled Detroit carmaker to a person who has lost weight but never bought new clothes to fit, Jim Press, Chrysler’s vice-chairman, said that “we’ve got to face reality. If we get our overheads and our capacity in line, we really have a strong future.”

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General Motors sales decelerating

By John Reed

Published: February 11 2008 02:00 | Last updated: February 11 2008 02:00

On Tuesday General Motors will report on fourth quarter earnings burdened by decelerating vehicle sales in the US and steep losses at its former financing arm GMAC , writes John Reed . GM's automotive results will paint a mixed picture: last year's sales figures, already out, show a 5 per cent fall in vehicles sold in North America last year. But GM is reporting record volumes in Asia, eastern Europe and Latin America, keeping it just ahead of Toyota as the world's largest carmaker.

GMAC, controlled by the buy-out group Cerberus but 49 per cent owned by GM, reported a quarterly net loss of $724m last week. France's two carmaking groups, PSA Peugeot Citroën and Renault, report their earnings on Wednesday and Thursday respectively, and also likely will be hit by slowing demand in western Europe. Daimler, also reporting on Thursday, is reporting robust sales volumes at its Mercedes-Benz cars division, but its truckmaking business may be hit from tough times in the US.