That was precisely the agenda of the No. 3 U.S. automaker's coming-out party on Wednesday.
Sergio Marchionne, Chrysler’s new chief executive, along with the other big wigs elaborated on the state of affairs at the Auburn Hills, Michigan based automaker.
The roadmap for the next five years was divulged at length to an audience of close to 300 industry analysts and reporters.
Out of the red
Contrary to the public perception, Chrysler has jumped out of the red and is has reported operating profits. The automaker has also consolidated on its cash reserves, disclosed Marchionne.
"Some of you have been (presuming) that we are losing money ... this is not true. 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," Marchionne said during a day-long presentation.
The automaker reported $200 million of operating earnings in the third quarter. It had a cash reserve of $5.7 billion. The results are really healthy given the fact that the company has emerged from bankruptcy this summer with the help of $12.5 billion from TARP funds and a new alliance with the Italian auto behemoth, Fiat.
The target
The Chrysler Group, as the new company is known, intends to save close to $2.9 billion from 2010 through 2014 by having better co-ordination and sharing purchasing between Chrysler and Fiat.
The group will also rationalize its vehicle lineup by focusing its Dodge brand on cars and minivans and converting the Ram into a trucks-only line.
“I am humbled to be a part of this today,” said Ralph Gilles, the head of the Dodge brand. “It is huge. It is a responsibility I take very seriously.”
By 2014, Chrysler plans to build its own Jeep brand and sell 800,000 units globally up from 487,000 last year.
An investment of over $120 million would be made in its retail network in the year 2010 so as to make dealerships more attractive to customers.
“I think people recognize that the management is trying to make Chrysler a successful American car company again,” Mr. Palmer, the chief financial officer, said of the plans.
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