Chrysler has joined its fellow Big Three US carmakers - General Motors and Ford - in reporting poor second-quarter financial results, with profits down by 91% to $65m.
The news is also likely to get worse before it gets better, the company forecasting losses of up to $600m in the third quarter of the year.
The Daimler-Benz division, including Mercedes, contributed to an overall second-quarter profit of only $2.37bn for DaimlerChrysler as a whole, with earnings up to $1bn and a 6% sales increase.
Chrysler - which had been on a roll after the launch of the highly successful 300/300C and Dodge Magnum - is currently suffering the effects of faltering sales of large SUVs and trucks in the US, especially for its Jeep and Dodge brands. Production of pick-ups and related models will be cut by 10% this year and production-line workers have been given longer summer lay-offs than usual.
With the launch of new models such as the compact Jeep Compass, the Dodge Nitro and Jeep Wrangler, Chrysler expects sales to pick up, and the recently-launched Dodge Caliber hatchback is also selling well so far. But is it enough to safe this situation from getting worse?
Next year will also see the launches of the all-new Voyager and Dodge Caravan MPVs - important new models for the company that are also expected to help reverse the downwards trend.
"I wonder what this will do to Mercedes Benz? More cost cutting? or more sharing of parts?"
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