Frankfurt Auto Show Update: Zetsche Says DCX on Track

CLICK4 Frankfurt Auto Show

FRANKFURT, Sept 8, 2003; Reuters reported that the U.S. Chrysler arm of German automaker DaimlerChrysler is on track with its plan to cut costs by $1 billion this year, the unit's chief told Reuters on Monday.

"We are making good progress and where exactly we end up we will see at the end of the year," Dieter Zetsche told Reuters on the sidelines of an event ahead of the Frankfurt auto show, adding that a large proportion of the savings had already been achieved.

Chrysler, struggling to return to long-term profits, said it would cut costs by $1 billion this year in addition to other savings programmes already in place after warning it would post a deep loss for the second quarter due to a price war on the U.S. car market.

Zetsche said the savings made so far had been reached largely by reducing material and production costs further, but he declined to give an exact figure.

The unit posted a 948 million euros ($1.05 billion) operating loss for the second quarter and aims to post a small profit for the full year although most analysts think that will be difficult.