On February 14, Chrysler will launch its "Project X" plan, a new strategy for Chrsyler according to whom Chrysler will be transformed on a smaller, more efficient automaker with closer ties than ever to its German parent company and the Mercedes-Benz luxury division.

The plan calls for unprecedented sharing of vehicle architectures and parts between Chrysler and Mercedes, including developing small cars and SUVs together.

The plan also outlines deep cost cuts similar to those at General Motors Corp. and Ford Motor Co.: plant closings, a reduction of factory shifts and employee buyouts aimed at slashing more than 10,000 blue-collar jobs. Sources said the likely closures will include an assembly plant in Newark, Del., and an engine plant in Detroit.

The success of Project X is critical to the future of Chrysler, which lost a projected $1.2 billion in 2006 and saw its U.S. market share slide to 13 percent at year’s end.

Source: DetNews

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