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"They will make it. This plan will work," said Mike Jackson, CEO of AutoNation Inc., during an interview on CNBC. "As I was walking out of that meeting I was calling back to my headquarters and saying 'It's a green light, we're in.' "
The executive, whose company owns 245 franchises, said he didn't make up his mind until the end of Wednesday's marathon seven-hour presentation by Chrysler CEO Sergio Marchionne and two dozen Chrysler managers.
"My main concern was if you stress-test it (the turnaround plan), can they get through disruptions over the next year or two?" Jackson said. "I now believe they can."
Jackson said his Ft. Lauderdale, Fla.-based company will invest more in the Chrysler, Jeep and Dodge stores it already owns, and will be "on the hunt for acquisitions" for more.
A Chrysler spokeswoman said the company is talking with AutoNation about potential opportunities, but could not say anything more.
Jackson recounted his first meeting with Marchionne this summer in Auburn Hills.
"He's got a little office, one step up from a cubicle," the AutoNation executive said. "He comes up to me wearing a tennis shirt with a backpack slung over his shoulder. I thought to myself 'This is going to be magic or tragic.' "
By Thursday morning, Jackson was calling the tiny Fiat 500 adorable and telling the investment world that Chrysler was on the rebound.
"People don't realize how much capacity and cost has come out of our industry," Jackson said. "It's an absolute revolution."
Others who sat through Wednesday's meeting had more temperate reactions.
"Before lunch I thought it was a lot of fluff, but as the day went on I felt better about the whole thing," said John Wolkonowicz of IHS Global Insight in Lexington, Mass. "I was totally impressed with Marchionne. But there was one major disconnect. Chrysler forecast its U.S. market share will grow from 9% this year to 13% in 2014. We see them continuing to fall to as low as 5 or 6% by 2011."
Chrysler and Fiat will share engines and use more common parts, which will save money and strengthen Chrysler's weakness in small cars by 2012 and 2013.
"The youthfulness of the management team is a plus," said David Cole, chairman of the Center for Automotive Research. "But all is lost if we don't have a pick-up in the market."
Marchionne acknowledged he may have to pull back on some product programs if sales fall short of expectations.
"Can it be done? Yes. I think Marchionne can will most of it to happen," said Erich Merkle of Autoconomy.com in Grand Rapids. "They just need time."
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