Chrysler Plan Points to New Models, Fiat for Rescue

These are the products Chrysler says are coming for 2010: “a new Jeep Grand Cherokee, a new Dodge Charger, a new Dodge Durango and a new Chrysler 300.”

While these vehicles were once significant sellers for Chrysler, the midsize SUV (Grand Cherokee, Durango) and large sedan (300C and Charger) segments have taken a nosedive in terms of sales over the past year. The completely redesigned and well-reviewed Nissan Murano saw sales drop this past year, which is almost unheard of when such a popular model is revamped.

The other news, which hinges on the automaker getting more federal funds, is a partnership with Italy’s Fiat. Fiat says it will only team up with Chrysler if the U.S. government supplies more loans. By some estimates, a Chrysler version of Fiat’s popular 500 compact car could be stateside by early 2010, although we think it would take longer than that. That vehicle would be just right in today’s marketplace.

Chrysler does say it will discontinue three new models; we guess that would include the Jeep Compass and Dodge Nitro, but we’re unsure what the other model would be — perhaps the revamped Jeep Liberty? Chrysler’s Jim Press was quoted as saying the three models include the already announced Chrysler Aspen, PT Cruiser and Dodge Durango. It will also lay off 3,000 more employees and lower capacity by another 100,000 units.