AUBURN HILLS, Mich. --- Chrysler plans to overhaul its cars with technology from its new Italian partner, Fiat SpA, and says it has the cash to pay for it, helped by the U.S. government and lower costs.
CEO Sergio Marchionne, who also runs Fiat, began unveiling Chrysler's new five-year business plan Wednesday. The plan includes new vehicles for the Chrysler, Jeep, Dodge and Ram brands, most based on Fiat's more efficient transmissions and small engines.
He said the troubled company's cash has grown by nearly $2 billion since it exited bankruptcy protection in June, and its operations broke even in September because of savings from job cuts and factory closings by the prior owner and through combining Chrysler and Fiat's operations.
Future growth hinges on offering better cars. The company's midsize sedans, the Dodge Avenger and Chrysler Sebring, along with many other models, have flopped. Chrysler said it will update these cars to make them more comfortable and quieter, then replace them in 2012 with Fiat designs. That could make Chrysler competitive in the largest part of the U.S. car market.
Besides the midsize car, Chrysler will introduce four new Dodges by 2013. They include a seven-passenger crossover vehicle, a mini-car and a compact.
Ralph Gilles, the company's chief designer, said the Dodge brand will have crisp handling, be quieter, more fuel-efficient and have more luxurious interiors.
The Chrysler brand also will get six new vehicles, including a Fiat small car and a new midsize crossover in 2013. The automaker is also considering adding a midsize pickup to its Ram truck lineup.
The company plans to lower sticker prices to boost sales and generate more cash as it fixes its struggling lineup.
Doug Betts, the senior vice president of quality, said work is under way to tackle quality problems, too. "We get it," he said. "We're not in denial related to the public record for quality for Chrysler."

