CALGARY, Alberta -

Never bashful when making public appearances, Sergio Marchionne recently told a Canadian gathering that Chrysler has been restructured so efficiently that the automaker won’t lose money even if the new-vehicle seasonally adjusted annual sales rate drops below 10 million.

While also sharing his 2011 sales projection, the chairman and chief executive officer of Chrysler Group and CEO of Fiat spoke about the companies’ progress and the global automotive industry at the 2011 Spruce Meadows Changing Fortunes Round Table in Calgary, Alberta.

“The problem of overcapacity is no longer a NAFTA problem for Chrysler,” Marchionne declared.

“We have taken out every ounce of unnecessary capacity out of the system/ Chrysler has been retooled not to lose money at 10 million SAAR,” he continued.

“The important thing is to maintain the discipline that the restructuring forced in 2009 and that effectively is still part of our DNA today,” Marchionne went on to say. “I think the fact that the three heads of the automakers in Detroit today are non-Detroit people has brought a level of realism to the running of a car operation.”

Always one to back up his claims with reasoning and analogies, Marchionne shared four grounds as to why it was “almost a slam-dunk decision” to allow Fiat to come in and effectively be given an equity interest in Chrysler. They included:

—A “phenomenal” arsenal of powertrain technology.
—Access to non-NAFTA markets.
—Number of architectures required to make Chrysler competitive
—A proven track record of being able to “turn around a car company.”

To leverage those attributes, Marchionne said the company recently announced a new combined management structure aimed at leading the Fiat-Chrysler organization going forward.

“There are people from both sides of the house, and the objective is relatively clear,” Marchionne insisted. “We’re going to have one global car company that will be managed in a very multi-national, multi-ethnic manner but it will have no stripe in terms of nationality. It can’t have one.”

Marchionne projected that the automaker would be selling 4.2 million units this year globally, a level he believes would make Fiat and Chrysler the fifth-largest OEM in the world.

The companies’ top boss emphasized Chrysler can sell 1.5 million vehicles a year and “not lose money.” Marchionne expects Chrysler to move 2 million this year.

“The difference between the 1.5 and 2 million is $2 billion in profits,” Marchionne calculated. “And next year we’re going up to 2.4 million cars, and we’re going to make over $3 billion in operating profit.

“The future of this industry is bound to lead to an elimination of marginal players,” he acknowledged.

“The car business forgot how to make cars, and it forgot what industrial discipline looks like,” Marchionne went on to say. “It’s up to us to avoid decay. Decay is a result of an intentional act of neglect. It’s not random; it’s because bad leaders make those calls. And in my view, I think we’ve come a long, long way in rectifying the anomaly by putting people in this business now that know what they’re doing.”

“No Charge HEMI” Among September Incentives

To keep up with Marchionne sales expectations to move metal, Chrysler outlined what incentive packages it is rolling out this month.

Officials highlighted qualified consumers purchasing a 2011 or 2012 model year Ram pickup truck can choose a 5.7-liter HEMI V-8 engine at no extra charge during Ram Power Days or opt for $1,000 in Engine Bonus Cash on models equipped with 3.7-liter V-6, 4.7-liter V-8 or Cummins diesel engines.

The company said the Engine Bonus Cash can be used in addition to Customer Cash and attractive financing rates.

“Only on occasion does Chrysler Group offer this exceptional opportunity to purchase a new Ram pickup truck equipped with the legendary HEMI V-8 engine at no extra cost,” noted Reid Bigland, head of U.S. Sales.

“The 5.7-liter HEMI V-8 engine offers an amazing combination of power and fuel economy with 390 horsepower, 407 lb.-ft. of torque, and 20 mpg highway,” Bigland added.

In addition to the Ram Power Days promotion, Chrysler announced it is offering qualified consumers 0 percent financing for up to 72 months on all 2011 models, except for the 2011 Jeep Grand Cherokee, in September.

New U.S. incentives for September include:

Chrysler

—2012 Model Year: Qualified consumers who purchase a 2012 Chrysler 200 may be eligible for 1.9 percent financing for 60 months or $1,000 in Customer Cash.

—2011 Model Year: Qualified consumers who purchase a 2011 Chrysler 200 may be eligible for financing as low as zero percent for 72 months or $2,000 in Customer Cash, excluding the LX model.

Qualified consumers who purchase a 2011 Chrysler 200 Convertible may be eligible for financing as low as zero percent for 60 months or $1,500 in Customer Cash.

Jeep

—2012 Model Year: Qualified consumers who purchase a 2012 Jeep Liberty may be eligible for 1.9 percent financing for 60 months or $2,000 in Customer Cash.

Dodge

—2012 Model Year:  Qualified consumers who purchase a 2012 Dodge Avenger may be eligible for 1.9 percent financing for 60 months or $1,500 in Customer Cash.

Qualified consumers who purchase a 2012 Dodge Journey may be eligible for 2.9 percent financing for 60 months or $1,000 in Customer Cash.

—2011 Model Year: Qualified consumers who purchase a 2011 Dodge Challenger may be eligible for 1.9 percent financing for 60 months or $2,000 in Customer Cash.

Qualified consumers who purchase a 2011 Dodge Journey may be eligible for financing as low as zero percent for 60 months or $2,500 in Customer Cash.

Ram Truck

—2012 Model Year: Qualified consumers purchasing a 2011 or 2012 model year Ram pickup truck can choose a 5.7-liter HEMI V-8 engine at no extra charge or opt for $1,000 in Engine Bonus Cash on models equipped with 3.7-liter V-6, 4.7-liter V-8 or Cummins diesel engines.

Qualified consumers who purchase a 2012 Ram pickup truck may be eligible for 3.9 percent financing for 60 months or $500 in Customer Cash.

—2011 Model Year: Qualified consumers who purchase a 2011 Ram 1500 pickup truck may be eligible for financing as low as zero percent for 60 months or up to $3,250 in Customer Cash

Qualified consumers who purchase a 2011 Ram Heavy-Duty pickup truck may be eligible for financing as low as zero percent for 60 months or up to $2,500 in Customer Cash for trucks equipped with a diesel engine.