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Chrysler's Plan for the Future: More Government Loans

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Chrysler EV, Jeep EV and Dodge EV

Chrysler EV, Jeep EV and Dodge EV

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Chrysler's Congressionally mandated plan for its turnaround has hit the Web--and new vehicles are a part of the plan, so long as Chrysler gets another $2 billion in federal cash.

In the plan -- pasted in below here for you to digest, since you're now a stakeholder -- Chrysler is asking for another $2 billion in loans to add to the $7 billion it's already been loaned by you, me and Uncle Sam. That $9 billion package, the company says, will be repaid with interest--but not starting until 2012.

The vehicles that will flesh out the turnaround plan are largely a mystery. That's in part because Chrysler is leaning on newly announced partner Fiat to fill out the small-car end of its lineup. Those vehicles are yet to be decided, while the alliance itself has yet to be nailed down in legalese. Next in the Chrysler plan: a raft of extended-range electric vehicles similar in concept to the 2011 Chevrolet Volt, and based on Chrysler's ENVI green-car powertrain that's been shown in various Dodge and Jeep and Chrysler vehicles. Other improved powertrains, like a new V-6, will round out the innovations yet to be named.

The actual named vehicles yet to come in the Chrysler/Jeep/Dodge lineup include a new 2011 Jeep Grand Cherokee, set for a debut at the 2009 New York auto show; a new unibody Dodge Durango, likely built off the Grand Cherokee in Jeep plants; a new Chrysler 300 and a new Dodge Charger, both revamped from the current underpinnings and both due next year.

There's more to come from Chrysler and from GM as the duo tries to convince Washington of their viability plans. Stay tuned.

2010 Jeep Grand Cherokee

2010 Jeep Grand Cherokee

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2010 Jeep Grand Cherokee

2010 Jeep Grand Cherokee

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2011 Chrysler 300

2011 Chrysler 300

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2011 Chrysler 300

2011 Chrysler 300

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Chrysler LLC Viability Plan Submitted Today to The U.S. Treasury Department

Chrysler LLC viability plan to be finalized by March 31 deadline
Chrysler to complete its aggressive restructuring started in 2007 and 2008
Chrysler viability plan is conservatively based and newly reflects an average annual 1.8 million-unit reduction in the Company’s expected annual U.S. SAAR through 2012
Chrysler’s viability plan is built around a robust product plan, including 24 launches in 48 months and the introduction of electric vehicles to help meet current federal fuel economy standards
The Company’s submission demonstrates standalone viability which could be enhanced through a strategic alliance
Dealers, suppliers and 2nd lien lenders’ concessions have been implemented or fundamentally agreed upon
A tentative agreement has been reached with the UAW that complies with the terms and conditions of The U.S. Treasury Department's loan agreement
Due to unprecedented economic decline and a drop in current and forecasted U.S. SAAR, the Company adds $2 billion to its original $7 billion loan request
Payback of Chrysler LLC’s working capital loans with a premium would begin in 2012

Auburn Hills, Mich., Feb 17, 2009  -  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 aggressive restructuring; and achieve cost reducing concessions from stakeholders. The Company’s plan is required to be finalized by March 31. The submission outlines significant progress towards meeting the terms of the U.S. Treasury Department’s loan agreement related to achieving competitive costs and increasing fuel economy.
“On behalf of the men and women of our extended family, we thank the Administration and the Congress for the opportunity to continue the process of requesting federal loans to assist Chrysler LLC in the restructuring necessary to achieve long-term viability,” Chrysler LLC Chairman and CEO Robert L. Nardelli said. “We fully understand the need to adapt to significantly reduced annual U.S. sales and to national concerns over energy security and climate change.

“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. Today, our people are eager to re-establish Chrysler as an iconic American company and, in the process, repay the U.S. government and taxpayers for their faith in our future. We believe the requested working capital loan is the least-costly alternative and will help provide an important stimulus to the U.S. economy and deliver positive results for American taxpayers. This plan will ensure the continued provision of health care and pension benefits to our active employees and retirees, while continuing to protect hundreds of thousands of middle class, quality American jobs at Chrysler, our dealer network and our suppliers.”


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Comments (2)
  1. "Dealers?"

    "Dealer concessions: Half of our dealers have to go, so we're waiting for a bunch of them to go bankrupt first so we don't have to pay them." Doesn't some of that bailout cash go to right-size the dealer network?
     
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  2. "Wishful thinking"

    "in 2010, the Company will launch four highly successful platforms" um being a little presumptive aren't we? Going on their recent past carp vehicles is a lot to say these will be successful untill they are out and actually successful. OK Cherokee is likely to be successful (though latest Jeeps have been terible) Durango will have to wait and see. Just because current 300C is a success does not mean next will be as apart from the current one rest of Chrysler's sedans have been POS.
    Agree withR2Dad re squeezing dealers until half die.
    reality is Chrysler needs to do a lot of work and needs to drop a whole lot of product and get the rest right. Nothing baove sends the right message. Hopefully deal with Fiat will save their bacon but not sure it will be enough.
     
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