Positive Third Quarter Financial Results

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Chrysler Group LLC Reports Operating Profit of $239 Million for the Period Ended September 30, 2010; Company Revises Guidance Upward for Full Year 2010

* Net Revenues increased to $11.0 billion in Q3 2010, up 5.2 percent from Q2, and Net Loss reduced to $84 million from $172 million in Q2 2010

* Positive Cash Flow of $419 million in third quarter, further strengthening Cash Position to $8.3 billion as of September 30, 2010

* Based on continued operating performance improvement, full year guidance is revised upwards to an Operating Profit of ~$0.7 billion (from $0.0-0.2 billion), Positive Free Cash Flow of ~$0.5 billion (from negative $1 billion)

November 8, 2010 , Auburn Hills, Mich. -

Chrysler Group LLC today issued its financial results for the third quarter 2010 and revised upwards its full year 2010 guidance based on continued operating performance improvements.

Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, "A year ago, Chrysler Group laid out clear and concise five year financial goals and after three consecutive quarters of better than forecasted results, we are not only living up to our commitments but we are also exceeding our 2010 financial objectives.

“Chrysler’s financial success is dependent upon the vehicles we design, build and sell. In a mere 16 months, the Company is delivering 16 all-new or refreshed products led by the critically acclaimed all-new 2011 Jeep Grand Cherokee and including the Fiat 500, signaling the return of the Fiat brand to the U.S. and Canada. We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee. Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive auto maker,” Marchionne added.

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November 8, 2010

Chrysler Reports a Loss but Says It Is Making Progress

DETROIT — Chrysler, the Detroit automaker, said on Monday that it had an operating profit for a third consecutive quarter, but not enough to put the company into the black over all as it paid hundreds of millions of dollars in interest on government loans.

The company said it lost $84 million in the third quarter, less than half as much as it lost the previous period and the closest it has come to making money since its short trip through bankruptcy in early 2009.

Having shed much of its liabilities and slimmed down its operations in the reorganization, Chrysler’s biggest burden is interest payments to the American and Canadian governments, which it owes $7.4 billion. Chrysler has paid $899 million in interest this year, including $308 million in the third quarter, resulting in an overall loss of $453 million from January through September.

Before interest and taxes, the company said it earned $239 million in the quarter, bringing its operating profit for the year to $565 million. It also forecast an operating profit of about $135 million in the fourth quarter and $700 million for all of 2010, up from break-even to a $200 million gain.

The chief executive, Sergio Marchionne, said Chrysler had been running ahead of its financial targets.

“Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive automaker,” Mr. Marchionne said in a statement.

Even though Chrysler emerged from bankruptcy a month sooner than General Motors, its turnaround has progressed more slowly, largely because its vehicle lineup had less to offer. Chrysler also kept more of its government loans on its balance sheet as debt, whereas most of the money G.M. borrowed was converted into an equity stake held by the Treasury Department.

The Treasury owns 61 percent of G.M. but only 8 percent of Chrysler. G.M. already has repaid its outstanding loans to the government, whereas Chrysler has said only that it would do so by 2014.

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