Chrysler pitches turnaround plan, GM keeps Opel

By Jo Winterbottom and Michael Shields

DETROIT/FRANKFURT (Reuters) - The mood in the global automotive industry has shifted to cautious optimism, marked by the unveiling on Wednesday of Chrysler's turnaround plan and General Motors' plan to keep its Opel unit.

However, automakers were in no mood to celebrate a potential recovery and continued to slash costs, with Toyota Motor Corp announcing on Wednesday it was quitting Formula One motor racing and Daimler AG moving to cut 1,000 jobs at its Mercedes-Benz division.

A year of turmoil has reshaped the auto industry and those relying on it.

Optimism abounded in the Detroit suburb where Chrysler is based, however, as Fiat SpA Chief Executive Sergio Marchionne detailed plans intended to revive the U.S. automaker and revamp nearly every element of its operations.

Kicking off a day-long presentation of Fiat's five-year strategy for Chrysler, he said analysts underestimated the financial resilience of the U.S. automaker after deep cost cutting by its former owner, Cerberus Capital Management.

"Most of you underestimated the substantial reduction in fixed costs that was carried out by the old Chrysler," Marchionne said. "The new Chrysler is being incredibly parsimonious."

Chrysler needs cars and trucks that consumers want, Mike Jackson, CEO of AutoNation Inc, the largest U.S. auto dealership group, said on Wednesday at the Reuters Auto Summit in Detroit.