Chrysler Group LLC will present a five-year business plan by the end of November that outlines numbers and the path out of two years of difficulties, its chief executive said on Wednesday.
Sergio Marchionne, who is also head of Italian car maker Fiat (FIA.MI), told reporters at the Frankfurt Motor Show the restructuring of Chrysler had been more difficult than he initially thought and would be a slow progress.
We have to be absolutely clear about what we want to do with Chrysler and, as a management team, where the organization is going to be in five years, Marchionne said.
We will share significant milestones, numbers, and we will show how we're going to come out of this. This is a big issue and we're working really hard, he said.
Chrysler emerged from bankruptcy on June 10 by selling most of its assets to a group led by Fiat. The Italian automaker took a 20 percent stake in the struggling U.S. automaker in return for its technology to build smaller, greener cars. No cash changed hands.
Marchionne said Fiat still has no plans to invest in Chrysler and hopes the company will not need to seek outside capital for its attempted turnaround.
We were surprised by how little had been done in the past 24 months, Marchionne said. It will be a slow progress in the beginning, but we will see significant improvement in 2010.
The No. 3 U.S. automaker aims to start reporting quarterly results by the end of this year, he added.
Chrysler was given a clean balance sheet after a quick makeover in Chapter 11 and some $14 billion in U.S. government funding, but its sales have continued to falter. It froze product development to conserve cash under former owner Cerberus Capital Management CBS.UL.
Chrysler's U.S. sales fell 15 percent in August, when overall industry sales rose 5 percent. Its market share fell to 7.4 percent from 11 percent in 2008.
You cannot judge somebody out of bankruptcy on June 10, whether their sales are decent or not, Marchionne said. It's a company that had a very rough period. The industry, it's not a prime condition to make a huge progress.
He said U.S. industrywide auto sales should top 11 million vehicles in 2010, up from about 10 million forecast for this year. But he warned of a risk of additional capacity being cut in North America if demand remains stagnant.
If the numbers end up being as we see today, there is a good chance we will have to put additional stress on the manufacturing system. But it's too early to tell, Marchionne said.
(Reporting by Soyoung Kim; editing by John Wallace)