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Chrysler caps spending on product development Last Updated(Beijing Time):2005-01-19 10:04
DaimlerChrysler AG's Chrysler, which last year gained US market share for the first time in five years, will cap product development at US$6 billion this year as it adds at least seven new models, the unit's top executive said.
The No 3 US automaker cut capital expenditures to less than US$6 billion a year from about US$8.4 billion in 2000 as it trimmed costs and shared parts and ideas with DaimlerChrysler's luxury Mercedes car unit, Chrysler Chief Executive Dieter Zetsche said on Monday in Dearborn, Michigan. The spending will not rise as the automaker adds new 16 new products this year and next, he said.
"I set this cap myself so this is the kind of self-discipline which this organization gave itself to make sure we are not doing what we did in the past," said Zetsche, who cut costs by more than US$8 billion from 2001 to 2003 as the unit lost US$4.7 billion.
Zetsche said he plans to increase US market share, helped by the new models, and to keep the unit profitable in 2005. Chrysler is expected to earn the highest profit since 1999 when it reports earnings on February 10, Zetsche reiterated last week.
Chrysler's US sales rose 3.7 per cent last year to 2.21 million as it introduced nine new models including the 300 sedan and Magnum wagon, according to Woodcliff Lake, New Jersey-based Autodata Corp, which collects auto sales data for analysts.
New models this year include the Dodge Charger sedan, Jeep Commander sport-utility vehicle, versions of the Magnum and 300 large cars with more-powerful engines and other added features and also a Viper coupe, Zetsche said. He showed a sketch to analysts on January 12 of unidentified car and truck models to be introduced this year.
Chrysler's fortunes contrast those of Mercedes Car Group, where third-quarter profit fell by more than 50 per cent and the unit is forecasting a drop for the full year.
Chrysler caps spending on product development Last Updated(Beijing Time):2005-01-19 10:04
DaimlerChrysler AG's Chrysler, which last year gained US market share for the first time in five years, will cap product development at US$6 billion this year as it adds at least seven new models, the unit's top executive said.
The No 3 US automaker cut capital expenditures to less than US$6 billion a year from about US$8.4 billion in 2000 as it trimmed costs and shared parts and ideas with DaimlerChrysler's luxury Mercedes car unit, Chrysler Chief Executive Dieter Zetsche said on Monday in Dearborn, Michigan. The spending will not rise as the automaker adds new 16 new products this year and next, he said.
"I set this cap myself so this is the kind of self-discipline which this organization gave itself to make sure we are not doing what we did in the past," said Zetsche, who cut costs by more than US$8 billion from 2001 to 2003 as the unit lost US$4.7 billion.
Zetsche said he plans to increase US market share, helped by the new models, and to keep the unit profitable in 2005. Chrysler is expected to earn the highest profit since 1999 when it reports earnings on February 10, Zetsche reiterated last week.
Chrysler's US sales rose 3.7 per cent last year to 2.21 million as it introduced nine new models including the 300 sedan and Magnum wagon, according to Woodcliff Lake, New Jersey-based Autodata Corp, which collects auto sales data for analysts.
New models this year include the Dodge Charger sedan, Jeep Commander sport-utility vehicle, versions of the Magnum and 300 large cars with more-powerful engines and other added features and also a Viper coupe, Zetsche said. He showed a sketch to analysts on January 12 of unidentified car and truck models to be introduced this year.
Chrysler's fortunes contrast those of Mercedes Car Group, where third-quarter profit fell by more than 50 per cent and the unit is forecasting a drop for the full year.
