WRAPUP 6-Chrysler pitches turnaround plan, GM keeps Opel

* Chrysler unveils 5-year turnaround plan

* GM scraps Opel sale, cites improving business conditions

* Germany says "unacceptable"; Unions scrap savings deal

* Nissan raises FY outlook after forecast-beating Q2

* Toyota quits F1 racing, Mercedes to cut 1,000 jobs
(Adds GM comments on Opel in paragraph 14)

By Jo Winterbottom and Michael Shields

DETROIT/FRANKFURT, Nov 4 (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 (7203.T) announcing on Wednesday it was quitting
Formula One motor racing and Daimler AG (DAIGn.DE) 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 (FIA.MI) Chief Executive Sergio
Marchionne detailed plans intended to revive the U.S. automaker
and revamp nearly every element of its operations.
[ID:nN0421635]

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 (AN.N), the largest U.S. auto
dealership group, said on Wednesday at the Reuters Auto Summit
in Detroit. [ID:nN042114]

KEEPING OPEL

However, at least one major shakeup will not go ahead.

After months of negotiations, General Motors Co [GM.UL]
abandoned the sale of Opel to a group led by Canada's Magna
(MGa.TO) on Tuesday, saying improving business conditions and
the strategic importance of Opel had prompted the decision by
its board. [ID:nN03522653]

GM Europe said the plan for Opel included a 30 percent cut
in fixed costs but declined comment on possible job cuts and
plant closures.

German union and government officials reacted with anger
and frustration after agreeing to jobs concessions and billions
of euros in assistance to support the sale plan.

"General Motors' behavior towards Germany is completely
unacceptable," said German Economy Minister Rainer Bruederle.

GM's behavior showed the "ugly face of turbocapitalism,"
said Juergen Ruettgers, the premier of North Rhine Westphalia
where Opel's Bochum plant lies. Opel labor leader Klaus Franz
said the unions would not give in to GM's "blackmail" to help
finance its plans and scrapped a deal made on cost savings.

German Chancellor Angela Merkel agreed with Franz on
Wednesday that GM must present a plan for Opel that focuses on
job security, while Russian Prime Minister Vladimir Putin said
the German trust appointed to oversee Opel, and not GM's board,
should decide any further steps. [ID:nBAT004947]
[ID:nL4159263]

However, GM, which hopes to receive financial backing from
European governments and support from the labor unions, said up
to 10,000 job cuts are possible and the automaker was reviewing
its options on plant closings. [ID:nN0442527]

In the United States, the White House distanced itself from
GM's announcement, saying on Wednesday that it played no role
in the decision. [ID:nN044469]

ON THE MEND

Automakers globally have struggled to cope with plunging
demand brought on by the global financial crisis, which helped
push GM and Chrysler into bankruptcy earlier this year.

But a range of government measures to attract buyers has
helped revive sales and many automakers have raised forecasts.

Nissan Motor Co Ltd (7201.T), Japan's No. 3 behind Toyota
and Honda Motor Co Ltd (7267.T), beat expectations with
second-quarter results and raised its full-year forecast.
[ID:nSP536647]

Nissan, 44 percent-owned by Renault SA (RENA.PA), expects
an operating profit of 120 billion yen ($1.3 billion) in the
year to end-March, instead of the 100 billion yen loss it had
forecast.

"Both Nissan's outlook and last night's U.S. figures are
indications that things are getting better for automakers," a
Paris-based trader said.

U.S. auto sales hit an annualized rate of 10.46 million
units in October, a level not seen in a year excluding July and
August when the U.S. government's "cash for clunkers"
incentives program sparked a surge in sales. [ID:nN03411936]

Graphic on U.S. auto sales and relative performance of
global auto stocks:
here

Nissan earnings graphic:
here

Ford Motor Co (F.N) is also doing well. The only U.S.
automaker not to file for bankruptcy this year on Monday posted
a surprise third-quarter profit of nearly $1 billion, defying
Wall Street forecasts of a loss. [ID:nN02411585]

COST CUTS KEY

Still, automakers are relying on cost cutting rather than
any lasting surge in sales.

Toyota had an estimated annual budget of around $300
million for its Formula One team, which has never won a race
since entering the series in 2002. It finished fifth out of 10
teams in this year's F1 constructors' rankings. [ID:nT151120]

Daimler plans to cut 1,000 of the about 45,000 jobs at the
Mercedes-Benz Cars premium division by offering a variety of
buyout packages to staff. [ID:nL4411996]

Honda, which quit the F1 series last December, said on
Wednesday it was aiming to break even in Japan using just 70
percent of its capacity to build cars. Last week, it nearly
tripled its annual operating profit forecast for the year, far
above expectations. [ID:nT55879] [ID:nT324227]

Japan's Bridgestone Corp (5108.T) said on Monday it would
stop supplying tires to Formula One after the 2010 season.
[ID:nSP485574]

Germany's BMW said on Tuesday it still saw positive 2009
earnings thanks to cost cuts even as it repeated sales volume
was set to fall 10-15 percent. [ID:nL2426759]

In Russia, the government could allow Renault to buy
control of AvtoVAZ (AVAZ.MM) as part of a broader plan to save
the ailing company, a Russian government source told Reuters.
Renault already owns 25 percent of AvtoVAZ. [ID:nL4173960]

For Reuters Autos Summit coverage, click
here
(Additional reporting by Soyoung Kim in Detroit, Yoshifumi
Takemoto and Alastair Himmer in Tokyo, Noah Barkin in Berlin
and Blaise Robinson in Paris; Writing by Ben Klayman, Lincoln
Feast and Sitaraman Shankar; Editing by Ian Geoghegan, Andrew
Callus and Matthew Lewis)