Auburn Hills, Michigan – Chrysler LLC today submitted its viability plan to the U.S. Treasury Department, outlining the Company’s plans to enhance its product lineup, complete its ongoing restructuring, and achieve cost reducing concessions from stakeholders. However, citing an unprecedented decline in the automotive sector, Chrysler is asking for an additional US$2 billion dollars in loans on top of the US$7 billion it asked for last year. The company’s plan is required to be finalized by March 31st.
“We believe that Chrysler LLC will be viable based on the updated assumptions contained in this submission, and that an orderly restructuring outside of bankruptcy, together with the completion of our standalone viability plan, enhanced by a strategic alliance with Fiat, is the best option for Chrysler employees, our unions, dealers, suppliers and customers,” Chrysler LLC Chairman and CEO Robert L. Nardelli said.
Chrysler’s restructuring plan calls for reducing production capacity by 100,000 units, selling US$300 million of non-earning assets, reducing fix costs by US$700 million, discontinuing three vehicle models, laying off 3,000 workers and reducing one shift of manufacturing.
Chrysler plans 24 vehicle launches in 48 months, and announced electric technology as a primary strategy for developing fuel-efficient, low emission vehicles. In 2010, the Company will launch a new Jeep Grand Cherokee, a new Dodge Charger, a new Dodge Durango and a new Chrysler 300. Fuel economy will continue to improve in 2010 with the introduction of the all-new Phoenix V6 engine, which will provide fuel efficiency improvements of between six to eight per cent over the engines it replaces. A two-mode hybrid version of the Company’s best-selling vehicle, the Dodge Ram is scheduled for 2010. The first Chrysler electric-drive vehicle is also scheduled to reach the market in 2010. It will be followed by other electric-drive vehicles, including Range-extended Electric Vehicles, in the following years in order to further reduce fuel consumption.
Nardelli said the proposed Fiat alliance would further help the company achieve these standards as Chrysler gains access to Fiat’s smaller, fuel-efficient platforms and powertrain technologies.