DETROIT (AP):

Chrysler has been reborn under a new Italian parent, but it can't shake the shadows of its past: It's not selling enough cars, its fleet is tilted to trucks and sport utility vehicles, and help is more than a year away.

A 42-day stay in bankruptcy court cleansed the company of much of its debt and labour costs, but many analysts say Chrysler's immediate future is bleak. It lost $8 billion in 2008, and sales are down by almost half for the first five months of this year.

problem with new designs

Cars designed by its new owner, Italy's Fiat Group SpA, won't make it to the US until late 2010. And even then there are no guarantees American drivers will want the tiny cars Fiat specialises in.

In the meantime, Chrysler is left with few new vehicles headed to its drastically reduced network of dealers. Its ageing model line-up is still heavy with bigger vehicles. And its offerings in the growing small and midsize markets haven't caught on.

"The showroom is not going to look terribly different over the next 18 months," said Aaron Bragman, an analyst for the consulting firm IHS Global Insight. "They're going to try and maintain market share in a down market with products, many of which haven't been redesigned in several years."

Bragman said Chrysler faces tremendous competition, especially from new cars in the works at General Motors Corp. and Ford Motor Co.