 Chrysler is cutting car prices to boost sales |
DaimlerChrysler has seen sales at its US Chrysler business fall, as net profits slumped 37%. The German-American company earned 541m euros ($678.5m; �362m) in the three months to September, against 855m euros a year earlier.
Total DaimlerChrysler sales fell 8% to 35.2bn euros.
Chrysler earlier said it was cutting the price of every car sold in the US by $1,000, as it aimed to boost sales and turn itself around.
Bullish forecast
The group, the world's fifth-biggest carmaker, saw an operating profit of 892m euros for the quarter - ahead of expectations - and did not revise its 2006 operating profit forecast of some 5bn euros.
The bullish prediction came despite the expectation of slimmer earnings from aerospace group EADS, Airbus' parent company, in which DaimlerChrysler is a major shareholder.
The outlook sent shares 4% higher on Germany's benchmark Dax-30 index.
DaimlerChrysler said it was keeping its earnings target because of "very positive business developments" in its Mercedes car group, truck group and financial services arm.
Like other US operators, Chrysler was caught out as consumers turned away from thirsty sports utility vehicles (SUVs), at a time when fuel prices have soared.
Along with rivals GM and Ford, it has struggled with falling profits and sales in the face of competition from Japanese rivals.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
