Chrysler sees "New Day" in $150 mln in car upgrades

By Kevin Krolicki and David Bailey

DETROIT (Reuters) - Chrysler LLC is readying a sweeping, $150 million package of vehicle upgrades as new owner Cerberus Capital Management puts its first stamp on the line-up of Chrysler cars already in showrooms, executives said.

The initiative, which will be marketed under the tagline that Chrysler's new owners are ushering in a "New Day" for the struggling No. 3 U.S.-based automaker, will be introduced to Chrysler dealers next month, Chrysler executives said on the sidelines of the Detroit auto show.

The plan includes intended fixes and upgrades to over 260 vehicle features, and price changes covering 12 models.

The effort is intended to get consumers to take a new look at some of the last models rolled out under the ownership of German parent Daimler AG (DAIGn.DE: Quote, Profile, Research, Stock Buzz) and demonstrate how quickly the "new" Chrysler can move to address problems, executives said.

Among the models that will be revamped are the Dodge Caliber, the Jeep Patriot and the Jeep Compass, they said.

Chrysler executives said the rapid move to revamp its existing vehicle lineup underscored the stripped-down management philosophy of Cerberus and a new sense of urgency at the struggling car maker under Chief Executive Bob Nardelli.

Executives said Nardelli drove Chrysler senior executives through a rapid-fire decision process on the planned upgrades, accomplishing in one meeting what might have taken 10 before.

"We have generally been pretty nimble anyway, but we have taken weeks out of our decision process," Chrysler product development chief Frank Klegon said in an interview.