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Chrysler LLC's five-year plan to reduce the company's size may be what's best for a struggling automaker in a tumultuous economy.

Although Chrysler may be doing the right thing, analysts say it will face a pair of simultaneous significant challenges — consolidating a fragmented dealership chain and replacing venerable product lines with fresh, exciting vehicles.

Some analysts say that they would be surprised if, in five years, Chrysler still is owned by Cerberus Capital Management LP and that the plan's real goal may be to get the automaker ready for sale.


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Wolkonowicz said that poor reception of vehicles such as the Chrysler Sebring and Dodge Nitro caused the company to pull back and question other products in the pipeline.

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