Chrysler CEO Sergio Marchionne said on Monday it will be “difficult” for the automaker to turn a net profit for the full year 2010.
He did not address the critical issue of how much a loss could be attributed to debt service on money loaned to it by the US government, and how much may be due to the weakening domestic car market in the second half.
“The cost of carrying that cash is very large,” said Marchionne, who accompanied Vice President Joe Biden on a tour of the Toledo Jeep plant.
“But I’m satisfied. We’re ahead of plan.”
Marchionne reiterated that the Auburn Hills automaker, which received a $12 billion federal bailout, will repay government loans by 2014.
Chrysler’s core problem is that the US economy has slowed. GDP growth in the second quarter may have been no better than 2%.