FIAT TO PRESENT CHRYSLER PLAN

FIAT TO PRESENT CHRYSLER PLAN

(ANSA) - Rome, November 4 - Over 450 people are expected to be on hand Wednesday for the presentation of Fiat's five-year business plan for American automaker Chrysler.

The plan will be illustrated by Fiat Chief Executive Officer Sergio Marchionne at Chrysler's headquarters in Detroit in what is expected to be a marathon six-hour presentation for analysts and the press.

Fiat acquired control of Chrysler earlier this year in exchange for its green technology and managerial and creative input, which included making Marchionne CEO of the American carmaker as well.

Having proved his skill by turning Fiat around, the big question is whether Marchionne can apply the same draconian measures and can-do approach to change Chrysler's fortunes.

Few details have been leaked about the plan except that it will include dropping a number of Chrysler models and replacing them with Americanized versions of more fuel-efficient ones from the Fiat Group, which aside from Fiat includes Lancia and Alfa Romeo.

Fiat is also expected to use the Chrysler sales and service network to return Alfa Romeo to the American market and introduce top Fiat models like its peppy city car the 500.

Ample attention will be paid to which North American factories Chrysler and Fiat will use for production because of the impact this will have on employment and the economy in the local communities.

Since Fiat acquired Chrysler in a non-cash deal, observers are also anxious to know how Marchionne plans to finance the US carmaker's rebirth given that federal funds are no longer available and Fiat itself is not in the best of financial waters.

Perhaps the biggest question is whether Fiat understands the true nature of the American market and the tastes and demands of the American buyer.

Working in Fiat's favor on this last point is the fact that Marchionne grew up and spent the initial part of his career in neighboring Canada.