According to World Car Fans & Edmunds:

First up will be the release of a brand new 2010 Dodge Charger. This does not come as much of a surprise, since the Charger and Chrysler 300 share the same platform. Chrysler CEO Bob Nardelli had previously announced those new vehicles back in October. A new Dodge Durango is also coming down the pipeline. This is a huge surprise from the company, since the Durango was believed to be dead-in-the-water when Chrysler announced it was closing the Newark Assembly facility in Delaware where the SUV is built.

We started thinking about what Chrysler should build to impress the US Government. Think about today’s needs – fuel economy, sleek design, hybrid technology, easy iPhone syncing. But you need to hit your niche audience as well – muscle cars and horse power.

So tell us – will you be satisfied with a lousy Chrysler 300C or Jeep Grand Cherokee? We say no! Their partnership with Fiat and Chrysler’s new Phoenix V6 engine can help do for the brand what Minivans and the K Car did in the 80’s. So write to us and vent – what kind of car do you want to see from a reborn Chrysler? And what will help them survive? Maybe we’ll put a few good ideas together and send them over to CDJ HQ.

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
* UAW, dealers, suppliers and 2nd lien lenders’ concessions have been implemented or fundamentally agreed upon
* 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.”

To help meet customer needs and increased federal fuel economy standards, Chrysler plans 24 vehicle launches in 48 months, and announced electric technology as a primary strategy for developing fuel-efficient, low emission vehicles, including an electric-drive vehicle in 2010. The viability plan shows compliance with current federal fuel economy requirements as set forth in the Energy Independence and Security Act of 2007. Going forward, Chrysler supports the development of a uniform national standard that reflects the input of all constituents.

To reduce costs, UAW, dealers, suppliers and 2nd lien lenders’ concessions have been implemented or fundamentally agreed upon. The signed term sheets for the Labor Modifications and VEBA modifications fundamentally comply with the requirements set forth in the U.S. Treasury Loan and once realized would provide Chrysler with a work force cost structure that is competitive with the transplant automotive manufacturers.

Since Chrysler LLC’s original $7 billion submission, there has been an unprecedented decline in the automotive sector. The continued lack of available credit affects consumers and dealers, leading to reduced wholesale orders for Chrysler. Due to this continued lack of consumer credit, we are revising our Seasonally Adjusted Annual Rate (SAAR) forecast in the plan submitted today, which is conservatively based and reflects the reality of a declining automotive industry. We are now projecting a SAAR level of 10.1 million units for this year, (which is a 40-year low for our industry) and an average SAAR level of 10.8 million units for 2009-2012. This is a reduction from our original December submission of 7.2 million units, or an average 1.8 million units annually during the four years. For Chrysler, this represents a sales decline of approximately 720,000 units, (or an average 180,000 units per year) assuming a 10 percent market share. For Chrysler, this results in approximately $18 billion in lost revenue and a $3.6 billion decline in cash inflows during the four years.

Based on this, we will require incremental financial support to continue our orderly and effective restructuring and are therefore now seeking an incremental $2 billion in addition to the remaining $3 billion that was within the scope of our original December 2 plan submission.

Chrysler LLC Viability Plan Highlights

Strategic Alliance
Chrysler has signed a non-binding agreement to pursue a strategic alliance with Fiat that represents significant strategic and financial benefits to stakeholders. The written and oral testimony Chrysler submitted to the U.S. House and Senate in 2008 stated the Company’s intent to seek the benefits of global partnerships and alliances. The proposed Fiat Alliance would enhance Chrysler’s viability plan and would provide the Company with access to competitive fuel-efficient vehicle platforms, distribution capabilities in key growth markets and substantial cost-saving opportunities.

Products
Chrysler’s product line is a key component of its Viability Plan. In 2010, the Company will launch four highly successful platforms: a new Jeep Grand Cherokee, a new Dodge Charger, a new Dodge Durango and a new Chrysler 300 (the most awarded car in automotive history since its launch in 2005). The Chrysler 300 launch will be followed by a new, bolder Dodge Charger and an all-new unibody Dodge Durango.

In 2008, Chrysler offered six vehicles with highway fuel economy of 28 miles per gallon or better. For 2009, 73 percent of Chrysler LLC’s vehicles show improved fuel economy compared with the prior year’s model. Fuel economy will continue to improve in 2010 with the introduction of the all-new Phoenix V-6 engine, which will provide fuel efficiency improvements of between 6 to 8 percent 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.

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. The alliance would enable Chrysler to reduce its capital expenditures while supporting the company’s commitment to develop a portfolio of vehicles that support the country’s energy security and environmental objectives.

Restructuring Actions
Chrysler LLC has aggressively restructured operations to significantly improve cost competitiveness while improving quality and productivity. Through year end 2008, Chrysler has:

* Reduced fixed costs by $3.1 billion
* Reduced its work force by 32,000 (a 37 percent reduction since January 2007)
* Eliminated 12 production shifts
* Eliminated 1.2 million units (more than 30 percent) of production capacity
* Discontinued four vehicle models
* Disposed of $700 million in non-earning assets
* Improved manufacturing productivity to equal Toyota as the best in the industry as measured by assembly hours per vehicle according to the Harbour Report
* Achieved lowest warranty claim rate in Chrysler’s history
* Recorded the fewest product recalls among leading automakers in 2008

The following additional restructuring actions are planned in 2009:

* Reduce fixed costs by $700 million
* Reduce one shift of manufacturing
* Reduce total manpower by 3,000 people
* Discontinue three vehicle models
* Take out 100,000 units of capacity
* Sell $300 million additional non-earning assets

Management Concessions
Chrysler will fully comply with the restrictions established under section 111 of EESA relative to executive privileges and compensation. In addition, the Company has suspended the 401k match, incentive bonuses, merit increases and has eliminated retiree life insurance benefits.

Dealer Concessions
Chrysler will achieve cost savings/improved cash flow through a number of initiatives including: reduced dealer margins, elimination of fuel fill, reduction of service contract margins.

Union Concessions
The signed term sheets for the UAW Labor Modifications and VEBA modifications fundamentally comply with the requirements set forth in the U.S. Treasury Loan and once realized would provide Chrysler with a work force cost structure that is competitive with the transplant automotive manufacturers.

Supplier Concessions
The Company has initiated the dialogue with its suppliers and believes that it will be able to obtain substantial cost reductions from suppliers that will result in achieving targeted savings. Chrysler supports the supplier associations’ proposals, which would provide a government guarantee of OEM accounts payables.

2nd Lien Debt Holders Concessions
Chrysler anticipates that the holders of the 2nd Lien Debt will agree to convert 100 percent of their debt to equity. Chrysler’s Viability Plan includes expectations to further reduce its outstanding debt by $5 billion. In addition to strengthening the Company’s balance sheet for the long term, this reduction will also provide immediate cash flow via interest savings of between $350 million and $400 million annually.

But is Chrysler getting the short end of the automotive bailout? Granted, GM has more makes than the CDJ – even if some of them get cut or sold off to other interested (foreign) parties. However, Chrysler has promised upwards of 24 new models bay 2012. Chrysler also wants to become known as a top electric car producer. That will all take cash – and as we get closer to 2009 Chrysler will have to bide their time, and loans, to make it out of this financial sinkhole alive.

Official Chrysler Bailout Press Release:

An Open Letter From Bob Nardelli

To Chrysler employees and other stakeholders:

We have received news that U.S. Treasury Secretary Henry Paulson will provide $4 billion of initial funding to Chrysler LLC from the TARP (Troubled Assets Relief Program) as a loan to help bridge the current financial crisis. We appreciate the Administration’s confidence in Chrysler.

As outlined in our submission to Congress, we intend to be accountable for this loan, including meeting the specific requirements set forth by the government, and will continue to implement our plan for long-term viability. The receipt of this loan means Chrysler can continue to pursue its vision to build the fuel-efficient, high-quality cars and trucks people want to buy, will enjoy driving and will want to buy again.

For Chrysler to succeed in its mission to return to profitability, we need the continued support of our many business partners. Terms associated with the bridge loan include Chrysler’s commitment to work with key constituents – including our owners, lenders, suppliers, dealers, management and employees – to identify and achieve the cost-savings concessions we need to build a long-term viable enterprise. These concessions discussions will happen quickly, as a full governmental review and approval of our plan is expected by March 31, 2009.

We are meeting with our suppliers, mindful that they are going through a difficult period as well. But we must cooperatively find ways to further reduce our costs while maintaining normal operations. We will ask our suppliers to maintain their commitment to reasonable trade terms and normal fulfillment of orders for as long as the federal loan is outstanding. This will assure that neither Chrysler, nor our suppliers would suffer the substantial losses caused by the plant/production shutdowns that result from stop shipments or other disruptions.

We will seek continued dealer cooperation to improve our cash position and consolidate our U.S. network. Project Genesis is on the path to aligning our product portfolio with a smaller, healthier tri-branded dealer network based on the realities of our business environment. Because strong, healthy dealers are essential to our success, we are also working with our dealers to keep dealer inventories in line with the marketplace, focusing on how they can support their business despite the falloff in sales through sales of used vehicles, service and parts.

As a condition of the bridge loan, we have committed to work with our lenders to seek their participation in concessions as well.

Cerberus has already agreed to forgo any benefit from the upside that would, in part, be created from the bridge loan and any other government assistance that the Company may obtain.

All employees have and will continue to help support Chrysler’s recovery. We have also partnered with the UAW to find new opportunities to increase our competitiveness. The Company has already undertaken and will continue to undertake significant cost reduction actions related to salaried workers also.

The bridge loan allows us to meet cash needs, pay our suppliers, continue developing great products and move forward with the restructuring and streamlining of our organization that we began in 2007. This restructuring will reduce the number of personnel layers while increasing managers’ span of control, enabling us to reduce costs, make faster decisions and do our jobs effectively with fewer resources.

In our drive to profitability, we will not slow down on plans to provide the cars and trucks that people in markets around the world want to buy. We have 24 major launches in our plan from 2009 through 2012, with a key feature of this future product strategy being our capability as an electric vehicle company. Building on our status as the largest producer of electric-drive vehicles in the United States today with our GEM unit, we are focusing on electric as our primary clean-vehicle technology. Combined with our new products from our ENVI group, we expect that 500,000 Chrysler electric-drive vehicles will be on the road by 2013.

It is essential that we continue to promote our lineup of current and future products so that our customers understand the profound changes taking place at Chrysler. With that in mind, we will be revealing several important new products at the upcoming North American International Auto Show. We also sought the support of our local Detroit area dealers for the auto show, and I want to express my appreciation to all those that have provided assistance to help fund our exhibit.

While promoting our products, we will also appropriately scale back some of our presence at the auto show because of current business conditions. We have conserved costs in our press event with vehicle reveals that are product-focused and straightforward, and a simplified product display.

As we draw to the end of this very eventful and difficult year, I want to extend my thanks to all who contributed to Chrysler this year, including our many colleagues who have moved on. Against the difficult conditions of a global recession, you have once again shown the resilience that is the hallmark of Chrysler people. In recent weeks, I have received hundreds of letters of support from those in the extended Chrysler family, confirming that there is great enthusiasm to restore our company to success.

With the holidays upon us, I hope you can take time to enjoy the warmth and companionship of good friends and family. Please have a safe and joyous holiday season, and let’s all return in 2009 with a renewed commitment to making Chrysler the great company we all want it to be.

Bob Nardelli