A turnaround plan at Chrysler would result in better-than-expected profits this year, Dow Jones reported, citing the company’s German-born chief executive Dieter Zetsche.

The report said that Zetsche warned that weak demand and hard competition meant the US market would remain "very tough" next year but he added that Chrysler would break even this year, even including restructuring costs.

According to Dow Jones, Zetsche said Chrysler had been aiming to move out of the red in 2002 only when those charges were excluded. Zetsche didn't give details of the restructuring costs or earnings, Dow Jones noted.