Chrysler exec backs plan, hopes to avoid new cuts

WASHINGTON (Reuters) - Chrysler LLC has a realistic business plan in place and hopes to avoid future buyouts or other downsizing because of U.S. economic woes, the company's president said on Tuesday.

Jim Press, who is also vice chairman, said at the Washington Auto Show that industry investment in alternative fuels technology must come first, even if it means automakers delay expansion or other strategic decisions.

Press said privately held Chrysler has positioned itself to deal with a turbulent economy and would welcome an overall economic stimulus from Washington to improve availability of credit.

Chrysler, Press said, made some tough calls and very difficult decisions last year on downsizing to make the company stronger. "We hope they are sufficient," he said.

He said he was hopeful Chrysler would not have to offer large-scale new buyouts -- like General Motors Corp <GM.N> is doing now -- to further reduce costs.

"I can't speculate. We sure hope to avoid anything like that," Press said. "The answer will be where the economy goes."

All three Detroit automakers -- GM, Chrysler and Ford Motor Co <F.N> -- have closed plants and eliminated thousands of jobs in recent years because of a sharp loss of market share to overseas competitors.

Putting new pressure on them is the widening credit crisis and the weakening U.S. economy as well as a new mandate from Congress and the Bush administration to achieve markedly better fuel economy.

Press said the industry would have to concentrate on alternative fuel technologies, like gasoline electric hybrids, to succeed -- even in a weakened economy.

"Alternative technologies have to come first. It may squeeze our ability to invest in other things that may be important but we can't afford," Press said.

(Reporting by John Crawley; Editing by Jeffrey Benkoe and Steve Orlofsky)