Chrysler CEO Bob Nardelli says an additional $3 billion is needed to close its alliance deal with FiatEnlarge Photo
In a letter sent to Chrysler employees late Friday, Nardelli revealed that the company will build a new Durango at its Jefferson Avenue North plant in Detroit alongside the next-generation Jeep Grand Cherokee, which is also due next year. Other new models confirmed to be in development include a redesigned Dodge Charger sedan and a range of all-electric vehicles.
This new Charger, as well as the next 300 sedan, are expected to arrive late next year as 2011 models and should feature only ‘evolutionary’ styling. However, Chrysler's new design chief Ralph Gilles has previously stated that the vehicles would have a "quantum leap in quality."
Nardelli also used the letter to clarify arrangements in Chrysler's proposed alliance with Fiat, reports Automotive News.
"It is important to note that no U.S. taxpayer funds would go to Fiat," the letter said. "The alliance is based on an exchange of equity for assets. Fiat would acquire an equity stake in Chrysler by giving us access to substantially all its vehicle platforms and technologies. This access is of high value to Chrysler, saving us significant costs and years of development time.
Throughout this process we will work with the U.S. government to ensure Chrysler meets all terms of the U.S. Treasury loan agreement, including the submission of a restructuring plan that assures Chrysler's long-term viability, timely loan repayment and energy efficiency."