Fiat SpA Chief Executive Sergio Marchionne on Wednesday delivered a long-awaited plan intended to turn around Chrysler over the next five years.
The plan, which was presented by Marchionne and other Chrysler executives at the automaker's headquarters, includes changes to Chrysler's design, manufacturing, parts supply operations and brands.
It also included the first set of financial projections for the No. 3 U.S. automaker since it exited bankruptcy in June.
Highlights from the plan follow:
* Chrysler's total global sales to rise from 1.3 mln vehicles in 2009 to 2.8 mln in 2014. That includes a projected increase in U.S. sales from 950,000 to 2 million. International sales are projected to grow from 150,000 in 2009 to 500,000 in 2014.
* Overall, U.S. auto sales recover from 10.5 million in 2009 to 14.5 million in 2014.
* Chrysler's U.S. market share recovers from under 9 percent in 2009 to just over 13 percent in 2014.
* Revenue projected to rise from $42.5 billion in 2010 to $67.5 billion by 2014.
* Operating profit break-even in 2010. Total operating profit of about $14 billion over the five-year plan.
* Net income break even in 2011.
* Operating cash flow positive in 2011.
* U.S. and Canadian government loans paid back by 2014.
* Total debt to fall from $13 billion at end 2009 to $8 billion by the end of 2014.
* IPO before 2014 but highly unlikely to occur before 2011. Chrysler board will set timing.
* Report on 2009 and fourth-quarter results to be released by the end of April 2010.
* Jeep brand to get all-new Grand Cherokee in 2010. Next all-new vehicles in 2013 on Fiat platforms to include a new small SUV, a replacement for the Compass and Patriot models and a new version of the Jeep Liberty.
* Chrysler to get a new 300/300C sedan in 2010. The next four new vehicles for Chrysler come will all be engineered on Fiat platforms. These include a compact sedan (2012) and a new small car (2013). A replacement for the Sebring sedan and a new mid-size crossover will also be released in 2013.
* Dodge to get a new Charger (2010) and a new full-size crossover vehicle in 2010. The next all-new vehicles arrive in 2012 and 2013 and will be built on Fiat platforms. These include a new compact sedan to replace the Caliber hatchback in 2011. A replacement for the Avenger (2013) and an all-new small car.
* Newly created Ram truck brand to add two new commercial van models built on Fiat platforms in 2012. The Dakota pickup truck will be phased out in 2011. Chrysler is considering a new car-based truck to take its place.
JOINT PARTS PURCHASES
* Chrysler to save $2.9 billion by 2014 by sharing parts including gearshifts, doors, mirrors and engines with Fiat.
(Editing by Lincoln Feast)