Chrysler Reveals 5-Year Business Plan
Auburn Hills, Mich. - Chrysler rolled out its new five-year business plan Wednesday, saying it intends to become "a great public company once again," reported the Los Angeles Times.
Now managed by and partly owned by Fiat, the Italian automaker, Chrysler desperately needs new cars to build its laggard sales, according to a number of analysts. So far this year, its sales are down nearly 40 percent.
The U.S. government has pumped $12.5 billion into Chrysler over the last year and now owns 10 percent of the company. A United Auto Workers health trust owns 55 percent of Chrysler, and Fiat owns a 20 percent stake, which could grow to 35 percent if management reaches performance objectives.
The United States has also won a promise that at least some of Chrysler's success, if it happens, would benefit U.S. workers.
Under the financing agreement, Chrysler must either manufacture 40 percent of its U.S. sales volume in the United States, or its domestic production must be at least 90 percent of its 2008 U.S. production volume.
The new Fiat management faces daunting challenges to its hopes of reviving Chrysler. Chrysler's business situation over the last year has been dire.
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