The Chrysler Group has revealed its three-year Recovery and Transformation Plan that it will use to return to profitability and to create new business models. Importantly, Chrysler expects to be profitable again as early as next year despite the company losing $1.4 billion dollars for the third quarter alone. To achieve this target, Chrysler will be reducing its workforce and closing its Newark Assembly Plant. The measures will effect up to 13,000 personnel over the next three years.

Total production for the Chrysler Group will be reduced by 400,000 units per year, due to the closing of the aforementioned plant but also from canceling shifts at its St. Louis South Assembly Plant next year. Other restructuring moves include reducing the number of dealers and fleet sales.

To improve its products, Chrysler will be investing $3 billion on new engines, transmissions and axles in effort to create more fuel efficient drivetrains. The first big-ticket items will be a new dual-clutch transmission and the Phoenix V6 engine. Vehicles equipped with ultra-clean BLUETEC diesel engines are in the pipeline as are several hybrid vehicles.