Chrysler's Revival Plan

The long-awaited Chrysler five-years business plan was detailed today by the American manufacturer together with its Italian partner Fiat. Still, long as it was, the plan failed to surprise anyone, as many of its details came only as confirmation of what was already known through rumors.

Financially, Chrysler plans to break even next year, with a projected profit in 2011. Why?

"Most of you underestimated the substantial reduction in fixed costs that was carried out by the old Chrysler. The new Chrysler is being incredibly parsimonious," Fiat CEO Sergio Marchionne was quoted as saying by Autonews.

As for the vehicles and their future, Chrysler and Fiat decided they will bring to the US three Italian built vehicles: a subcompact hatchback, compact sedan and midsize sedan (read Fiat 500 and the replacements for the Dodge Caliber and Avenger.

Chrysler will scrap the aforementioned Dodges, kill the Viper in 2010 (but only after a very special, 500 units limited edition of the Viper will be released) and scrap the Patriot and Compass in 2012.

Viper's replacement, to be built together with Fiat, will come in 2012. The Jeep brand will receive a new version of the liberty in 2013, together with another two Fiat-based models.

As for the new badge presented today, it will be used, but not as a company logo, but as Chrysler vehicles emblem.

"It's an ambitious plan," Erich Merkle, auto industry analyst with Autoconomy.com told Autonews."On the other hand, they don't have an alternative."