Chrysler unveiled its viability plan late yesterday--one that seeks to radically reshape the company (again) while bringing new products to market (hopefully).
Highlights of Chrysler's Viability Plan
-$2 billion more in loans from the Feds, on top of the $7 billion already received , for a total of $9 billion.
-$700 million more in fixed-cost reductions this year.
-Kissing goodbye to 100,000 units of production capacity (via plant closings and shift eliminations), 3,000 more jobs and $300 million worth of company assets.
-Chrysler’s final reorganization/viability plan will be done by March 31.
-If all goes well, Chrysler will begin paying back loans in 2012.
-Strategic alliance with FIAT for small-car technology-sharing (+ new small cars for sale in North America and elsewhere), plus new distribution networks in emerging markets.
-New domestic products due out for 2010: A redesigned Dodge Charger, Chrysler 300 & Jeep Grand Cherokee...a new Unibody (instead of body-on-frame) Dodge Durango…plus the Dodge Ram dual-mode hybrid and Chrysler’s EV are also in the works, with production coming in 2010 or shortly after.
-Just one thing…if the California carbon-dioxide reduction standards are adopted by other states, Chrysler may have to restrict vehicle availability in order to meet them (i.e. say goodbye to all Ram trucks bigger than the Ram 1500 pickup in those states).
Not specifically mentioned in the Plan:
-Expansion of the “flexible” manufacturing processes currently in use at Sterling Heights Assembly to other Chrysler assembly plants--which provide much more flexibility than those other plants have now in producing multiple types of vehicles, while cutting the changeover time needed to bring new vehicle production online.
-Saying goodbye to the PT Cruiser, and any other slow-sellers after '09.
-Whether or not Mopar Performance is one of those :"assets" up for sale.
-Or if "intellectual property" like out-of-production vehicle brand and .model names, vehicle designs, component blueprints (i.e. all the stuff the aftermarket needs to reproduce parts) is among those "assets" at all.
Not mentioned anywhere in the Plan:
-Effect of white-collar buyouts on post-2010 product plans. (A LOT of engineers & other platform-team development folks have taken the buyouts and gone away).
It's keep-the-fingers-crossed time for Ma Mopar.