Chrysler plans to refresh its range with Fiat technologies. Photo / AP

Chrysler plans to refresh its range with Fiat technologies. Photo / AP

AUBURN HILLS, Michigan - Chrysler plans to overhaul its vehicles with technology from its new Italian partner, Fiat, and says it has the cash to pay for it, helped by the US government and lower costs.

CEO Sergio Marchionne, who also runs Fiat, began unveiling Chrysler's new five-year business plan yesterday.

The plan calls for 75 per cent of its vehicle line-up to be new or changed by this time next year, and 100 per cent by 2012.

Marchionne said the company plans to spend $23 billion on the product turnaround through 2014.

It expects to break even in 2010 and report an operating profit of $5 billion in 2014.

But future growth hinges on better cars and sales. The company's mid-sized sedans, the Dodge Avenger and Chrysler Sebring, along with many other models, have flopped.

Chrysler said it will update these cars to make them more comfortable and quieter, then replace them in 2012 with Fiat designs. That could make Chrysler competitive in the largest part of the US car market.

Besides the mid-size car, Chrysler will introduce four new Dodges by 2013. They include a seven-passenger crossover vehicle, a mini-car and a compact. By the end of next year, most current Dodge models will receive new exteriors, interiors and engines.

Ralph Gilles, the company's chief designer, said the Dodge brand will have crisp handling, be quieter, more fuel-efficient and have more luxurious interiors, reflecting consumer complaints about all those issues.

The Chrysler brand also will get six new vehicles, including a Fiat small car and a new mid-size crossover in 2013. The automaker is also considering adding a mid-size pickup to its Ram truck lineup.

Chrysler is depending on a recovery in US sales and a jump in market share. It expects auto industry sales of 10.5 million vehicles in 2010 to rise to 14.5 million in 2014, and that its share can jump from 9 per cent this year to 13 per cent in 2014.

It also expects its global sales to more than double to 2.8 million in 2014 from 1.3 million this year.

Marchionne said that is a realistic goal, especially now that consumers can be more confident that Chrysler has a plan for its future.

"We've been incredibly quiet for the last five months," he said. "The lack of information outside of Chrysler has not helped."

The company plans to lower sticker prices to boost sales and generate more cash as it fixes its struggling lineup.