Chrysler, the domestic automaker that has come closer to extinction than any of its rivals, fully intends to become a "great public company" again.A five-year, $23 billion plan to save the ailing company calls for overhauling or replacing all Chrysler, Dodge and Jeep models by 2014. Chrysler will also save money by combining purchasing and engineering with Fiat and using the Italian automaker's smaller, more fuel-efficient designs to replace aging Chrysler vehicles.

Photos by MARK ROGERS/Special Contributor

Chrysler leaders vow that the company nameplate will once again stand for quality. They plan a new seven-passenger crossover vehicle, mini-car, compact and other models with crisp handling, quiet rides, better fuel efficiency and more luxurious interiors.

The plan was unveiled this week.

Now managed and partly owned by Fiat, Chrysler desperately needs new cars to strengthen its sagging sales, analysts say. Its sales are down 40 percent this year in an overall market that has dropped about 27 percent.

"The top priority is to invest to create a compelling brand and product offering," said C. Robert Kidder, Chrysler board chairman.

Sergio Marchionne, Chrysler's charismatic new CEO, says the plan is realistic as demand improves over the next five years.

Marchionne, who turned around Fiat, made his remarks after a daylong presentation Wednesday in Auburn Hills, Mich. Fiat Group SpA, which has acquired 20 percent of Chrysler and has an opportunity to gain more, was put in charge of reorganizing Chrysler by the U.S. government.

The Detroit automaker emerged from bankruptcy protection in June.

The plan depends on the U.S. market's recovering from this year's sales of 10.5 million vehicles to 14.5 million in 2014. Chrysler also will have to regain some market share to reach its goal of 13 percent, Marchionne said. Analysts consider that a tough task for any automaker.

Chrysler has received roughly $15 billion from the U.S. government and still has $9 billion of that available.

It will not return for more, Marchionne said. "If we screw this up, it's over."

Ron Kutz, general manager of Grapevine Chrysler-Jeep-Dodge, said he is guardedly optimistic about the five-year plan but still concerned about the next two years. With the exception of the Dodge Ram and a couple of niche vehicles, Chrysler has virtually no all-new vehicles in showrooms.

"There's not much to look at in the next 24 months," said Kutz, a 35-year veteran of the auto business. "The bottom line is we have to have a faster freshening of the product we've got now. We have to figure out a way to get people to buy cars, because this franchise is on the cusp of greatness."

Some industry analysts say the automaker's goal of selling 2.8 million vehicles globally in 2014 is overly ambitious because of increasing competition. Chrysler also fights a public perception that its vehicles – particularly its midsize sedans – are unrefined and perform poorly. .

The Dodge Avenger, Chrysler Sebring and many other models have flopped. Chrysler said it will update and improve those cars in the short term and replace them in 2012 with Fiat designs.

Rebecca Lindland, an auto industry analyst for the consultant IHS Global Insight, said the sales figures may be rosy assumptions.

"Everything needs to go perfectly" for the plan to work, she said. Her company's expectation for Chrysler's U.S. market share is nowhere near the automaker's forecast of 13 percent by 2014, up from the current 9 percent.

The company has lowered sticker prices to boost sales and generate more cash as it fixes its struggling lineup, but it must tackle quality problems to survive. Consumer Reports recently panned most Chrysler products.

"We get it," said Doug Betts, senior vice president of quality. "We're not in denial related to the public record for quality for Chrysler."

It will be tough to win back skeptical buyers. Chrysler lost more than $8 billion last year and would have run out of cash without government help.

A federal report earlier this week said Chrysler and General Motors Co. are unlikely to pay back their loans in full. But chief financial officer Richard Palmer said Chrysler intends to pay back U.S. government loans by the end of 2014. He also expects the company to break even in 2010 and report an operating profit of $5 billion in 2014.

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

Ralph Gilles, Chrysler's chief designer, said vehicles will have crisp handling, be quieter and more fuel-efficient, and have more luxurious interiors.

The Chrysler brand will get six new vehicles, including a Fiat small car and a new midsize crossover in 2013. The automaker is also considering adding a midsize pickup.

Chrysler had $5.7 billion in cash at the end of September, up $1.7 billion since it exited bankruptcy protection this June. As recently as December, though, the automaker was practically out of cash. It plans to sell shares publicly by the end of 2014.

The company's operations broke even in September because of savings from job cuts and factory closings.

Joe Veltri, Chrysler's product development chief, said he has a lot more funding to revamp products and create new ones. Chrysler can go to a cupboard of Fiat technology to develop new products, an advantage it lacked when it was owned by Cerberus Capital Management LP, a private equity firm.

"We have far more tools to work with," he said.

The Associated Press, The Washington Post and automotive writer Terry Box contributed to this report.