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Arbitration Update: Chrysler Group LLC Looking Forward to Moving Beyond the Arbitration Process

* Company continues to prevail in great majority of dealer arbitration decisions
* Meeting statutory requirement to provide prevailing dealers with Letter of Intent within seven business days, looking forward to further discussions with prevailing dealers
* Arbitrator decisions reflect understanding that Genesis Project and dealer network decisions essential to Company's future success

Auburn Hills, Mich. , Jul 9, 2010 -

Chrysler Group is looking forward to moving beyond the arbitration process and completing its dealer network plans. The Company is complying with the federal statute by issuing a customary and usual Letter of Intent to dealers that prevail in arbitration and is looking forward to discussions with prevailing dealers. These discussions are - and will remain - private business matters. The decisions to select dealers for the Company's right-sized dealer network were carefully considered as part of Chrysler's Genesis Project. Placing all four brands under one roof in modern facilities has already resulted in enhanced profitability for the Genesis dealerships. The decisions of a great majority of the arbitrators reflect the belief that the Company's dealer network decisions were not only appropriate, but essential to its future success.

About the process: While difficult, the actions to reduce Chrysler’s dealer network were a necessary part of its viability and central to the interim financing and proposed sale to Fiat. Among the requirements placed on Chrysler was to reduce its dealer network by 25 percent. As such, on June 9, 2009, Bankruptcy Court Judge Arthur Gonzalez approved Chrysler’s motion to “reject” the contracts of 789 dealers. In its approval, the Court concluded the Company used sound business judgment, and affirmed the rationale used by the Company to determine which dealers were affected. On December 16, 2009, the U.S. Congress passed H.R. 3288 enabling the 789 affected dealers to pursue binding arbitration in order to secure an opportunity to join Chrysler's dealer network. The bill stipulates that dealers who prevail in binding arbitration would receive a customary and usual Letter of Intent to enter into a sales and service agreement with Chrysler Group LLC provided they meet financial and operational prerequisites. In May, 2010 arbitration hearings began for 418 of the 789 affected dealers who opted into the binding arbitration process. It is expected the process will conclude in late July.

Results as of July 2, 2010: More than 125 of the 418 filed arbitration cases have been dismissed, withdrawn or abandoned, 73 decisions have been rendered by arbitrators to date wiith Chrysler prevailing in 54 cases. An undisclosed number of cases have been settled and fewer than 10 cases still remain to be arbitrated. Of the Letters of Intent issued so far to arbitrating dealers, 29 have been accepted.