Chrysler Loses $341 Million in 1st Quarter : Autos: The figures for the nation’s No. 3 car maker cap the worst three-month period ever for the U.S. industry.

Chrysler Corp., the smallest and most vulnerable of the Big Three U.S. auto makers, reported a $341-million loss for the first quarter Wednesday, affirming the period as the domestic auto industry’s worst three months ever.

“The quarter was abysmal,” Chrysler Chairman Lee Iacocca said. “Industry volume simply collapsed.”

Together, the Big Three lost $2.3 billion in the first three months of the year, surpassing the previous record of $2.1 billion in the fourth quarter last year.

Chrysler’s loss came to $1.52 a share, compared to earnings of 32 cents a share, or $71 million, in the first quarter of last year. Sales fell 23.7% to $5.8 billion from $7.6 billion last year.

About the only people who had anything hopeful to say concerning the company Wednesday were its ever-optimistic dealers, who insisted that Chrysler’s problems are nothing compared to those of the early 1980s, when the car maker was on the brink of bankruptcy.

“Why would I be worried now?” asked Richard Martin, who owns two Dodge dealerships in Los Angeles. “I’ve been a Chrysler dealer for 21 years, and I have great faith in Chrysler. I’m spending $2 million renovating my facility. Iacocca turned things around back then, and it’ll happen again.”

Indeed, analysts said Chrysler’s performance in the first quarter was helped by the cost-trimming program the company has followed for the past two years.

“Their cost-cutting activities seem to have reduced their break-even point,” independent auto analyst David Healy said. “Their losses would have been about half-a-billion more without it. But the financials showed their weakness. They bled off a billion in cash during the first quarter.”

Healy was referring to a decline of nearly $1 billion, to $2.5 billion, in the amount of cash Chrysler had on hand compared to Dec. 31.

Chrysler’s loss included $199 million in expenses related to the company’s white-collar work force reductions and a $242-million credit for lower-than-expected plant-closing costs linked to the 1987 purchase of American Motors Corp.

A one-time change in the way incentive programs--such as rebates--are accounted for added $257 million to the company’s loss. With that charge included, the No. 3 auto maker lost $598 million, or $2.66 a share, during the first quarter.

On Tuesday Ford Motor Co. reported a record loss of $884 million for the first quarter, while General Motors Corp. said it lost $1.1 billion during the period.

Saddled with the recession and low consumer confidence, the pace of U.S. car and truck sales has been sluggish since last fall. April sales have showed no sign that the industry is preparing to climb out of its slump.

Chrysler said its sales to dealers were down 27% from last year’s first quarter. The company’s production slowed to 50% of capacity in the quarter but, like Ford and GM, it did not save on labor costs because the car makers’ contracts with the United Auto Workers require them to compensate laid-off workers.

Some auto analysts say Chrysler’s financial shakiness casts doubt on the company’s ability to survive in the long run without a buyout or merger with another auto maker; last month, the company was rumored to be arranging a cash infusion from Mitsubishi, the Japanese car maker.

Yet Chrysler dealers, undaunted by the company’s dismal first-quarter financial report, insist that the auto maker’s fortunes are bound to turn around soon.

“The loss was frankly not surprising to me,” said Gary Sherman, owner of Pomona Chrysler-Plymouth. “Our earnings were the worst I’ve had in 26 years in the business. But it’ll turn around. It has to.”

Martin, whos owns Alhambra Dodge and Burbank Dodge, said the American consumer is to blame for Chrysler’s troubles.

“The American public should understand that you better buy American, because you’re digging your own grave,” Martin said. “I got a Honda dealer across the street selling 500 cars to my 100. Why?”

Chrysler Corp. Earnings Figures exclude one-time gains or changes Net Income or loss In millions of dollars 1990 Q1: 71 Q2: 180 Q3: -214 Q4: 31 1991 Q1: $-341 million Revenue In billons of dollars 1990 Q1: 7.6 Q2: 8.8 Q3: 6.5 Q4: 7.65 1991 Q1: $5.8 billon Source: Company reports