DETROIT -- The Detroit News reported that the Chrysler Group will post a $637 million operating loss for 2003, down from a $640 million profit in 2002. The Chrysler Group is the only arm of DaimlerChrysler AG not to end 2003 in the black.

While Chrysler said it expects a better year in 2004, and a surge in profits for 2005 and 2006, 2003 saw a restructuring that cut 26,000 jobs and cost the company $591 million. The company had predicted a $2 billion profit, but saw that disappear with an unexpected $1.1 billion loss in the second quarter.

A strong showing in the fourth quarter by the 2004 Dodge Durango gave the group a $180 million bump, but it was not enough to bring Chrysler out of the red. Net market share also dropped from 13.1% to 12.8%.

Overall, DaimlerChrysler saw its profits drop from $2.9 billion in 2002 to $564 million in 2003. That was due in part to losses at Mitsubishi, which the company has a 37% stake in. An investment in the aerospace company EADS cost DaimlerChrysler $2.5 billion.

According to The Detroit News, DaimlerChrysler CEO Juergen Schrempp expects 50 vehicles to be introduced by 2006 to produce a "significant" increase in profit margins. The Chrysler Group should also be feeling the effects of its restructuring, and the introduction of nine new models by that time, said CEO Dieter Zetsche.