NEW YORK—Chrysler Group LLC Chief Executive Sergio Marchionne reiterated that the auto maker "intends to break even" on an operating basis this year and will hit its target of selling 1.1 million new vehicles in the U.S. "We are confident that we can meet our ambitious but achievable goals," Mr. Marchionne said during a keynote address at the Automotive Forum 2010 in New York Tuesday. "The amount of work that had been done to bring down the break-even point—that number ended up being lower than most people thought."
He added that "to the extent that we are producing cash...I feel a lot more comfortable today than I did 12 months ago." As of Monday, he said, Chrysler had stockpiled "just north" of $5 billion in cash.
Chrysler's sales have fallen in the first two months of the year. Mr. Marchionne has said the company needs to sell 1.1 million vehicles in the U.S. to reach a break-even point. The plan is based on a forecast that U.S. sales will rise 18% this year. But in the year's first two months, sales fell 3.2%, and analysts expect another decline when March sales are reported Thursday.
Following his speech, Mr. Marchionne said Chrysler will sell 1.1 million new cars and trucks this year and will rely on new products rather than incentives. He said he wants to "pull ahead" introductions of new or restyled models but doubts it can be done.
Chrysler intends to introduce a new Jeep Grand Cherokee and Chrysler 300 as well as a freshened Chrysler Sebring, Dodge Avenger and Dodge Charger this year.
Mr. Marchionne also disclosed Tuesday that the auto maker will invest $500 million in Chrysler's U.S. dealership network over the next five years.
The announcement comes at a time when dealers are angered over the auto maker's move last year to shut 789 showrooms. Legislators mandated that Chrysler enter into an arbitration process with each dealer it wants to close. About 418 dealers are seeking arbitration, but the auto maker is seeking to reduce that number through "alternative measures."
Mr. Marchionne's remarks came on the one-year anniversary of the Obama administration's rejection of Chrysler and General Motors Corp.'s turnaround plan setting up a bankruptcy filing by both companies. Chrysler ended its bankruptcy in June when the company's assets were merged with the Italian auto maker Fiat SpA.
Mr. Marchionne said he plans to release details of Chrysler's financial picture on April 21.
