Chrysler Says It Will Weather 2009

By Tom Krisher
AP Auto Writer

DETROIT (AP) -- Chrysler LLC's chief executive acknowledges that the company's plan for new vehicles has a hole in it for 2009, but he and other executives say the company will make it through the year and to 2010, when it will roll out important new models.

Speaking the reporters at the North American International Auto Show on Sunday, CEO Robert Nardelli said 2009 is a concern for the automaker, which saw its sales decline 30% in 2008 and 53% in December.

The hole in the plan, he said, was left by the company's prior owner, Daimler AG(DAI Quote). Cerberus Capital Management LP, a New York private equity firm, bought an 80.1% stake in the Auburn Hills, Mich. automaker in 2007.

Daimler AG Chief Executive Dieter Zetsche told reporters Sunday that when future product decisions were made about five years ago, "we tried to do everything to go for a very broad and rich product pipeline."

"We always were investing heavily into the future of Chrysler," Zetsche said.

Chrysler Vice Chairman Jim Press said dealers are reporting they are losing 25% of sales in showrooms due to a lack of available credit. He also said the December sales drop was due to an intentional cut in low-profit sales to rental car companies and other fleet buyers.

Nardelli said the company came out with the new Dodge Ram pickup, Journey crossover and Challenger sports car in 2008, all excellent products that should sell in a better economic environment.

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