UPDATE 2-Fiat CEO unveils Chrysler turnaround plan

* Fiat CEO Marchionne presents 5-yr Chrysler plan

* CEO says not Chrysler not losing money

* Plan central to U.S.-taxpayer recovery from Chrysler

* First glimpse of Chrysler finances since restructuring (Adds comments by Fiat CEO, other background)

DETROIT, Nov 4 - Fiat Chief Executive Sergio Marchionne detailed plans on Wednesday intended to revive Chrysler and revamp nearly every element of its operations, saying the U.S. automaker was strengthening its cash position.

Marchionne, kicking off a day-long presentation of Fiat's five-year strategy for the No. 3 U.S. automaker, said analysts underestimated Chrysler's financial resilience after deep cost cutting by its former owner, Cerberus Capital Management.

"Some of you have been (presuming) that we are losing money ... this is not true," Marchionne said. "Most of you underestimated the substantial reduction in fixed costs that was carried out by the old Chrysler. The new Chrysler is being incredibly parsimonious."

Even before its latest restructuring, Chrysler was generating cash from its operations, Marchionne said.

He said Chrysler had exited its U.S. government-sponsored bankruptcy in June with $4 billion in cash and closed September with $5.7 billion on its books.

It was the first time Chrysler had disclosed financial information since a restructuring funded by $12 billion from the U.S. government that put the automaker under the management control of Fiat SpA .

'NO BUSINESS AS USUAL'

Chrysler Group Chairman Bob Kidder, who was appointed to represent the taxpayer interest at Chrysler, said the automaker would pay off U.S. government loans "with all deliberate speed."

"There is no business as usual at Chrysler. There is incredible commitment to, and energy for, change," Kidder said. "We intend to make this a public company, a great public company, again."

Marchionne has taken the stage at Chrysler's sprawling headquarters in a bid to convince Chrysler dealers, suppliers, customers and American taxpayers that a carmaker almost given up for dead earlier this year can be revived.

In response to criticism that Chrysler's vehicle development platform had been starved of new investment, Kidder vowed Chrysler's top priority was to "invest to create a compelling brand and product offering."

Other Chrysler executives have begun detailing Fiat's plans for the Chrysler, Jeep and Dodge branded vehicles throughout the day at the automaker's headquarters in a presentation to industry executives, analysts and reporters.

In a bid to improve the fuel-efficiency of a truck-heavy lineup, Chrysler said it would roll out a Fiat engine and fuel-saving engine technology as soon as 2010.

The company is also focusing its Dodge and Ram brands, with the Dodge label going to cars and minivans, while the Ram brand will apply only to trucks.

Many top U.S. auto executives are watching closely to see Fiat's plans for Chrysler. Several executives interviewed at the Reuters Autos Summit in Detroit this week said they had been impressed by Marchionne's actions so far.

"Chrysler has the most difficult challenge on every count and it's going to take all of Sergio's wonderful talents to meet that challenge," said Mike Jackson, CEO of No. 1 U.S. auto dealer AutoNation Inc , ahead of the presentation.

Chrysler depends on North America for almost all of its sales. Its U.S. sales have dropped 39 percent this year and it has lead the industry in aggressive discounting.