03/28/2008 02:45 am ET Updated May 25, 2011

Chrysler CEO Predicts $1.6 Billion Loss This Year

Chrysler LLC is on track to lose $1.6 billion this year, Chief Executive Robert Nardelli told a group of employees this week, people familiar with the matter said.

At a gathering of Chrysler engineers and designers outside Detroit, Mr. Nardelli said the auto maker's costs will exceed $64 billion, while its revenue will fall short of $63 billion, people who heard Mr. Nardelli speak said.

"Therefore, we will lose about $1.6 billion this year," the CEO said, according to these people.

A Chrysler spokesman declined to comment.

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