"We've rolled up our sleeves and have torn apart that architecture. You'll see a completely different animal. We're having a discussion about what name this animal should have. The jury is still out," Marchionne said, the Detroit Free Press reported Wednesday.
The project is one of several Chrysler is planning to convince the public it can keep up after years of underfunded research and development, the newspaper said.
Chrysler is also overhauling the Dodge Avenger and looking to combine the strengths of Chrysler and Fiat to launch a new Lancia Delta.
"In Europe, Lancia is an undersize, underdeveloped brand with nothing bigger than the Delta. Chrysler, which has true global reach, has nothing smaller. Put them together and you have a full line-up," Marchionne said.