Chrysler breaking even, CEO says
$5.7B in cash at end of September
Last Updated: Wednesday, November 4, 2009 | 2:33 PM ET
CBC News
Chrysler Group LLC has unveiled plans for new models and revealed that the company is now breaking even as it presented its vision of the future.
The company outlined a five-year business plan at its Auburn Hills, Mich., headquarters on Wednesday, offering a vision it hopes will set it on a new path toward recovery.
A 2009 Chrysler 300 sits in front of a Benton, Ark., new-car dealership in April. Chrysler management is unveiling the firm's ambitious five-year plan to save the company on Wednesday. (Associated Press) Chrysler CEO Sergio Marchionne said Chrysler had $5.7 billion US in cash at the end of September, up more than $1 billion since the company emerged from bankruptcy protection in June. He also said Chrysler broke even in September.
The company has provided few details on specific models so far, but executives did cite plans for four new Dodge cars by 2013, and for updated exteriors, interiors and engines on most of its current lineup.
A key component of the plan is a midsize sedan based on a bulked-up Fiat design. Chrysler hopes the car will make it more competitive in midsize sedans, the largest segment of the U.S. car market. Meanwhile, the tiny Fiat 500 will debut in North America by the end of 2010, the company says.
In addition, Chrysler models will use a common electrical architecture with Fiat platforms, executive Scott Kunselman said at the launch. And to improve quality in future vehicles, the company will begin doing digital simulations ahead of physical models, another executive revealed.
There is also word of changes to various Chrysler engines, due to new collaborations with Fiat.
The presentation was expected to last until 5 p.m. ET, closely watched for indications of the company's future.
Retooling brands
The automaker has given few indications of its plan since emerging from bankruptcy in June and joining forces with Italian carmaker Fiat, led by Marchionne, who spent his youth in Ontario.
Hundreds of politicians, workers, executives, auto analysts and union representatives were on hand to learn details of the closely held plan.
Since Chrysler Group LLC was formed on June 10, management has set about refocusing the company's brands. It is expected to replace some slow-selling models with more fuel-efficient and appealing vehicles from the Fiat group, including a rumoured plan to bring the fashionable Alfa Romeo brand back to the North American market.
"I'm excited to see how he's going to deal with the question of dealing with Fiat cars and Chrysler cars, and where they're going to be manufactured, and how he's going to be able to put both companies together," Canadian Auto Workers union president Ken Lewenza said. "But the real thing for us is to have that sense of confidence out there."
The plans could result in an investment for Chrysler's Windsor, Ont., assembly plant. Chrysler manufactures about 20 per cent of its North American-made vehicles in Windsor and Brampton, Ont.
With files from The Associated Press
