DaimlerChrysler will not make any management changes over last week's profit warning at U.S. arm Chrysler, which is not up for sale, Chief Executive Dieter Zetsche told a German newspaper.
It is certain that there will be no sale of Chrysler or of a part of the brand. Changes in personnel are also not envisioned, he told Die Welt in an interview released ahead of publication on Saturday.
Chrysler said last week a glut of unsold inventory meant it could lose 1.2 billion euros ($1.54 billion) in the third quarter and 1 billion for the year, much worse than the 2006 profit it had forecast only in late July.
Mounting losses at Chrysler made the group scale back its 2006 operating profit forecast by around 1 billion euros so that the world's fifth-biggest carmaker now sees profit of around 5 billion euros.
The shock profit warning dented management's credibility and made analysts question how committed the group was to Chrysler in the long run given ferocious market conditions in North America that show scant signs of improving.
The factors that led to Chrysler's profit warning are unlikely to fade out before year end, Bank Sal. Oppenheim analysts wrote in a note to clients.
Against this background, we fear that many market participants are being left with the impression that another temporary earnings-dilutive trouble spot has emerged in the shape of Chrysler...