Essay: A Bold Plan for Chrysler

According to the article "A Bold Plan for Chrysler", found at Businessweek.com, Chrysler will once again operate at a profit in the year 2012. In order for this to happen, Chrysler must have the U.S. market grow from today's current level of about 10 million cars sold. The company also needs to revamp the design of some it's existing models. Also, Chrysler needs a fast start from its Fiat-engineered cars.
For Chrysler's recovery plan to effectively work, the company needs the U.S. market to grow from todays level of 10 million cars sold to 14.5 million cars sold. According to the article, this is a very reasonable goal to have, evidence being the 17 million cars and trucks sold in in 2000. However, I believe this goal could be a bit lofty seeing as the economy is still very weak and the job market being in an endless depression. Chrysler CEO Sergio Marchionne is also counting on stealing a part of the market share from rival companies. One may ask how the company ever plans on doing that? The solution lies in the advertising budget, where Chrysler plans to spend double what they have in the past on marketing. According to Marchionne, the company will spend $4.1 billion in advertising next year and $5.7 billion the year after that.
Another major cog to the recovery plan is retuning Chrysler's existing models and creating many new designs. By 2014, the company plans on rolling out 16 new or heavily freshened models for Dodge, Jeep, and Chrysler. New Chrysler models will be made more upscale and styled to give owners "comfort and glamour". Along with the advertising, it should give the company a fresh, new look that it desperately needs.
The final piece that would greatly enhance Chrysler's chance of success is the fast start(sales wise) from Fiat-engineered cars. The company needs to generate enough cash flow to support it's $23 billion budget. However, even if sales fall 20% below expected 2011 targets, Chrysler would still have a cash balance of $3 billion, which is the bare minimum the company would need to survive and pay its bills.
The plan is in place for Chrysler to dig it's way out of an extremely large hole, but the plan is dependent on many things going right and is very risky. However, the company needs to take chances in order for it to ever become as successful as it once was. I believe the company will be able to meet it's goals and overcome it's huge deficit. Chrysler has many powerful business minds who have been through situations like this before, which can only be beneficial in the long run.