Chrysler group mulls how to make most of Fiat's technology

Alisa Priddle / The Detroit News

The Chrysler Group LLC board met in Auburn Hills on Friday to figure out how best to use Fiat engineering and technology to make future products such as midsize sedans -- and where.

The nine-member board is to provide a report to the U.S. auto task force next week.

A person familiar with the board's agenda said it included addressing the struggling sales of Chrysler's midsize sedans -- a key segment because of its volume -- and the development of replacement vehicles that will be built from Fiat engineering and components. The midsize Chrysler Sebring and Dodge Avenger, combined, have been outsold by almost 200,000 Toyota Camrys so far this year.

Fiat engineering also is being considered to underpin future versions of the Dodge Journey cross utility vehicle.

A small sedan, likely replacing the Dodge Neon that went away when the Caliber hatchback was introduced, and which could be based on the Fiat Grand Punta, is also in the mix for the 2012-13 time frame, a person familiar with the plans said.

Additionally, the Dodge Nitro is expected to be discontinued as early as next year, and the company is looking at options for the Jeep Liberty, which it wants to keep as a global vehicle.

Chrysler spokesman Gualberto Ranieri said the company had no comment on the board meeting.

While the board was grappling with the fate of the company, hundreds of Chrysler workers who currently make sedans in Sterling Heights rallied to protest plans to close their assembly plant at the end of next year.

The workers have not given up hope the board will keep the plant open under Fiat's new management.

"We think Chrysler made a mistake closing our plant," said Bill Parker, president of United Auto Workers Local 1700, which represents the 1,200 workers in Sterling Heights.

Chrysler CEO Sergio Marchionne's management team has reversed some decisions, opting to keep the Dodge Viper and Chrysler PT Cruiser when they were to end production, and to reinstate the third shift of minivan production in Windsor.

Parker is encouraged the plant could be spared -- or at least gain a few more years before closing. One reason for optimism: Fiat head of manufacturing Stefan Ketter toured the facility last week as part of an inspection of all 11 North American plants. Sterling Heights is the only one of those slated to close. Ketter evaluated how well the plant is implementing the Fiat manufacturing system.

Ken Lewenza, president of the Canadian Auto Workers union, said Chrysler's two Canadian plants also were inspected but they have not yet received their evaluations. Lewenza said he is hoping the report card will be among information disseminated at an expected meeting in October with Marchionne about aspects of the five-year product and business plan that will be made public in mid-November.

The U.S. and Canadian governments are shareholders of Chrysler after lending more than $15 billion to the once-bankrupt automaker. A new company was formed June 10 in partnership with Fiat SpA and Fiat Chief Executive Sergio Marchionne is also CEO of Chrysler.

apriddle@detnews.com (313) 222-2504