Huge changes are on the horizon for Chrysler, including a split from Daimler, a possible takeover and major restructuring plans.

The company’s sales have slipped alongside the decline in popularity of SUV’s and trucks and a move towards more fuel-efficient vehicles.

Chrysler is working with its investment bank, JP Morgan Chase, to develop a prospectus for potential suitors, which at the moment are believed to include four private-equity firms - Apollo Management LP, the Blackstone Group, the Carlyle Group and Cerberus Capital Management LP - plus General Motors Corp.

In a telephone conference call with dealers, Chrysler Chief Executive Tom LaSorda, said that parent company, DaimlerChrysler AG, has endorsed Chrysler’s restructuring strategy which is expected to return the company to profitability by 2008. Chrysler lost $1.475 billion in 2006.

Chrysler’s efforts to reduce costs are expected to include the loss of 13,000 jobs representing 16% of its global workforce, the closure of its plant in Newark, USA, and shift reductions at others.

Volkswagen AG, Renault-Nissan and Hyundai Motor Co. have all said that they would not be interested in acquiring Chrysler.