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Associated Press
DaimlerChrysler's chief financial officer says U.S. incentive use outstripped its expectations
Wednesday August 6, 12:09 pm ET


FRANKFURT, Germany (AP) -- Automaker DaimlerChrysler's chief financial officer said in remarks published Wednesday that the use of costly incentives to draw buyers in the competitive U.S. market accelerated faster than the company expected this year.
"The discounts by the American sellers in just the past three months grew by 30 percent," Manfred Gentz was quoted as saying by the Focus-Money magazine."This development was not foreseeable even in April of this year at that extent and speed."

Gentz repeated the company's forecast that U.S. division Chrysler would make a slight operating profit for the year.

Chrysler, hard hit by the use of costly incentives to keep up with competitors General Motors and Ford, suffered a euro948 million (IS$1.08 billion) operating loss in the second quarter.

That was a serious setback after the company had returned to profitability through a restructuring program launched in 2001.