Chrysler struggles to shift unsold inventory

updated 9:12 a.m. ET Oct. 16, 2006

NEW YORK - DaimlerChrysler AG's Chrysler Group is meeting resistance in its efforts to shrink its inventory of unsold vehicles, the Wall Street Journal reported on Monday, a development that could make it harder for Chrysler to bounce back from an expected loss in the third quarter.

Chrysler warned in September it will report a loss of $1.5 billion for the quarter -- more than twice what it had previously forecast.

The dealers' reluctance to take more of Chrysler's new vehicles raises questions about how soon Chrysler will be able to recover from its third-quarter loss, the paper said.

Some of the big dealership chains and many smaller dealers around the United States say they already have too many Chrysler vehicles and won't take more, according to the Journal.

No-one at Chrysler could immediately be reached for comment.

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