• The Detroit News, Monday, February 5, 2007 12 PM

A secret restructuring plan dubbed "Project X" that will be unveiled on Feb. 14. It calls for unprecedented sharing of vehicle architectures and parts between Chrysler and Mercedes, including developing small cars and SUVs together. The plan will transform Chrysler into a smaller, more efficient automaker, with closer ties to its German parent company and the Mercedes-Benz luxury division.

The plan also outlines deep cost cuts, similar to those at General Motors and Ford, including plant closings, a reduction of factory shifts and employee buyouts aimed at slashing more than 10,000 blue-collar jobs.

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%. Anxious investors in Germany are putting pressure on DaimlerChrysler Chairman Dieter Zetsche to sell all or part of Chrysler, but he has steadfastly refused to consider a sale.

Read the whole story at The Detroit News »