Keeping Track of the Facts, April 2009
Alliances:
* Chrysler currently is engaged in more than two-dozen alliances and partnerships, including our joint-venture with GM, Daimler and BMW to develop two-mode hybrid powertrain technology, and our GEMA alliance with Hyundai and Mitsubishi that produces the advanced technology, four-cylinder World Engine in Dundee, Mich.
* Chrysler manufacturers minivans for Volkswagen at its Windsor Assembly Plant
* Chrysler has a partnership with Nissan to bring a new fuel-efficient subcompact vehicle to the U.S. market by 2010 and to produce a pickup truck for Nissan.
* Our discussions with Fiat are consistent with the long-term viability plan required under the U.S. Treasury loan. An alliance would help us provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace and expand the availability of fuel-efficient vehicles.
* No U.S. taxpayer funds would go to Fiat. The alliance would be based on an exchange of equity for assets. Fiat would acquire an equity stake in Chrysler by giving us access to substantially all of its vehicle platforms and technologies. This access is of great value to Chrysler, saving us significant costs and years of development time.
* Daimler AG signed a binding agreement on April 27, 2009, to give up its 19.9 percent remaining stake in Chrysler LLC and pay as much as $600 million into the auto maker's pension fund.
Restructuring since 2007:
* Chrysler has taken out 1.2 million units of our production capacity, stopped building four models to simplify our product line and reduced the total work force by more than 32,000 employees. We have reduced annual fixed costs by more than $3 billion.
* Chrysler has identified over $1 billion in assets to sell (includes the Viper vehicle business) to sell and has so far sold assets valued at more than $700 million.
Cost savings:
* Internal restructuring efforts with respect to salaried employees and executives have included aggressive cost actions, as well as compliance with the terms of the U.S. Treasury loan agreement.
* Key executives have signed waivers prohibiting incentive compensation, bonuses, “golden parachutes” and severance payments.
* Suspension of salary merit program for 2008 and 2009, 401(k) company savings match and tuition reimbursement.
* Elimination of retiree life insurance.
* Each salaried employee is being asked for increased productivity as a result of reducing approximately 12,000 white-collar employees over the past two years and the subsequent de-layering and restructuring of our organization.
Employment and manufacturing summary:
* Chrysler worldwide employment at the start of 2007: 86,994
* Announced reductions since February 2007:
o Total hourly: 22,700
o Total salary: 4,000
o Added mix of salary and supplemental: 5,000
o Total employment: 31,700
o Total assembly shift reductions: 12
Chrysler LLC employment—Dec. 31, 2006
Location Hour. Salary Supp. Total
U.S. 45,186 18,602 4,301 68,089
Canada.. 9,921 1,082 127 11,130
Mexico 5,040 1,351 60 6,451
R.O.W. 0 802 472 1,274
Total 60,949 21,507 4,488 86,944
Chrysler LLC employment—Dec. 31, 2008
Location Hour. Salary Supp. Total
U.S. 26,801 10,691 765 38,257
Canada 8,652 692 54 9,398
Mexico 3,862 1,038 26 4,926
R.O.W, 0 896 530 1,426
Total 40,211 12,951 845 54,007
Employment reductions since 2007:
* Announced in February 2007: Reduce employment by 13,000
o Hourly employees: 11,000 by end of 2009 (moved ahead to end of 2008 with October 2008 Newark Assembly announcement).
o Salaried employees: 2,000 by end of 2008 (1,000 in 2007, 1,000 in 2008)
* Announced in November 2007: Reduce employment by 9,500
o Hourly employees: 8,500 by end of 2008
o Salaried employees: 1,000 by end of 2008
* Announced June 30, 2008: Reduce employment by 2,400 hourly employees by November 2008
* Announced July 23, 2008: Reduce employment by 1,000 salaried employees by October 2008
* Announced Oct. 23, 2008: Reduce employment by 800 hourly employees by end of 2008
* Announced Oct. 24, 2008: Reduce salaried and supplemental work force by up to 5,000 employees (25 percent) by the end of 2008
Background on manufacturing reductions:
* Announced February 2007:
o Drop second-shift operations at Newark (Del.) Truck Assembly Plant in February 2007
o Drop third-shift operations at Warren (Mich.) Truck Assembly Plant in June2007
o Drop second-shift operations at St. Louis Assembly Plant South (Fenton, Mo.) in January 2008
o Idle Newark Assembly Plant in fourth quarter of 2009
* Announced in November 2007:
o Drop third-shift operations at Belvidere (Ill.) Assembly Plant February in 2008
o Drop third-shift operations at the Toledo (Ohio) North Assembly Plant Feb. 2008
o Drop second-shift operations at its Jefferson North Assembly Plant (Detroit) in February 2008
o Drop third-shift operations at Brampton (Ontario) Assembly Plant in March 2008
o Drop second-shift operations at Sterling Heights (Mich.) Assembly Plant in March 2008
o Drop third-shift operations at Mack Avenue (Detroit) Engine Plant II in March 2008
* Announced in June 2008:
o Drop second-shift operations at St. Louis Assembly Plant North (Fenton, Mo.) in September 2008
o Idle St. Louis Assembly Plant South in October 2008
* Announced in October 2008:
o Drop second-shift operations at Toledo North Assembly Plant in December 2008
o Pull ahead idling of Newark Assembly Plant to December 2008
Suppliers:
* Chrysler LLC announced in April the launch of the Company’s Supplier Support Program, as a result of the Obama Administration’s announcement of a $5 billion program to provide suppliers with the confidence they need to continue shipping parts; and the support they need to help access loans to pay their employees and continue their operations.
* As part of the Administration’s Supplier Support Program, U.S. Treasury agreed to contribute a $1.5 billion line of credit, with the requirement that Chrysler make a 5% capital infusion. Chrysler’s loan agreement requires authorization of the first lien bank group prior to the Company contributing capital into a new company.
Global sales and dealers:
* March U.S. total sales were 101,001 units, the first time since Sept. 2008 that the Company has surpassed 100,000 units, representing a 39 percent decrease versus 2008. Chrysler’s retail market share increased to an estimated 10.0 percent versus 9.9 percent in March 2008. Total March sales included a fleet reduction of 44 percent year-over-year for the same period, as the Company continues to emphasize retail over fleet. For Q1 of 2009, Chrysler’s total sales were down 46 percent as compared to the same period in 2008.
* Sales of the Dodge Ram were up 34 percent (19,328 units) in March compared to February
* Jeep Wrangler sales were up 16 percent (10,000 units) year-over-year compared to March 2008 (8,589 units)
* Posting a year-over-year increase, Dodge Journey sales in March (5,987 units) were up 127 percent compared to March 2008 (2,640 units), and up 30 percent compared to February 2009
* Chrysler Canada sales for March were 15,937 units, an increase of 33 per cent compared to the February 2009 total of 12,015
* Chrysler LLC sold 14,148 units outside of North America in March 2009, a decrease of 41 percent compared to March 2008 sales (24,032). The decline in sales was the result of challenging economic conditions worldwide.
* In the United States, Chrysler continues to offer the Employee Pricing Plus Plus program through April, which offers the employee price to all customers purchasing or leasing a new 2008 or 2009 Chrysler, Jeep or Dodge vehicle. Chrysler Financial also is offering zero-percent financing on select products to qualified customers for up to 48 months. In addition, customers are eligible for cash discounts of up to $3,500 for 2009 model year vehicles and can find great deals on 2008 models in stock. Additionally, to celebrate the 25th anniversary of the Company’s minivans, customers can add at no change a DVD player on Chrysler Town & Country or Dodge Grand Caravan.
* Project Genesis has slowed slightly due to the economy, but the company is still making progress in transforming its U.S. dealer network. Through March 2009, 61 percent (1,992) of Chrysler LLC dealers are tri-branded (Chrysler, Jeep and Dodge), compared to 55 percent one year ago. Additionally, metro markets have increased tri-branded dealers by 24 percent. In the United States we now have 3,215 dealers, down from 3,528 dealers one year ago in March 2008.
* As of March, the Chrysler dealer network outside of the U.S. includes roughly 450 dealers in Canada, 117 dealers in Mexico plus 57 branches and 9 showrooms; and 1550 dealers outside of North America.
Product:
* For the 2009 model year (MY), more than 88 percent of Chrysler’s vehicles achieved five stars for frontal-crash tests; 86 percent achieved the highest rating for side-impact protection.
* For the 2009 MY, 73 percent of our product lineup offers improved fuel economy compared with last year’s models.
o Chrysler has six vehicles that achieve 28 mpg on the highway: Dodge Caliber, Dodge Avenger, Chrysler Sebring, Chrysler Sebring Convertible, Jeep Patriot and Jeep Compass.
o The all-new 2009 Dodge Ram pickup is an outstanding example of our focus on greater fuel economy. Chrysler designers and engineers spent more than 200 hours in our wind tunnel optimizing the design of the vehicle for lower wind resistance and better fuel mileage. These efforts improved the vehicle’s coefficient of drag (COD) to .419 (most pickups have a COD of .50 or higher).
* Celebrating its 25th anniversary, the new 2009 Chrysler Town & Country and Dodge Grand Caravan models are equipped with a newly optimized 4.0-liter six-cylinder engine, a minivan-first six-speed automatic transmission and best-in-class aerodynamics (COD of 0.33), that now deliver EPA fuel efficiency of 17 mpg city and 25 mpg highway … no other minivan offers better fuel economy.
* We continue to invest in new products, with 24 vehicle launches planned for the next 48 months. More than 60 percent of our total sales volume will be renewed, including the next-generation Jeep Grand Cherokee, Dodge Charger, Dodge Durango, Chrysler 300 and several exciting new small cars. We will continue to improve overall fuel economy with these new small-car entries and our all-new Pentastar V-6 engine.
* Chrysler’s internal warranty data show that the company is building vehicles with the highest quality in the company’s 84-year history. Chrysler has the lowest warranty claim rate in its history, with a 30 percent improvement in the last 12 months and a cost savings of $240 million.
* Through our internal ENVI organization, we are focused on electric as our primary clean-vehicle technology. Our product plan includes the introduction of a full-function electric-drive model in 2010. Approximately 100 electric-drive vehicles will be placed on the road in government, business, utility and Chrysler development fleets in 2009.
Product Awards:
* The all-new Ram already has earned 15 industry awards, including the 2009 International Truck of the Year, Truckin’ magazine’s Truck of the Year, Texas Auto Writer's Association (TAWA) 2009 Full-Size Pickup Truck of Texas, Edmunds.com Inside Line Editors Most Wanted for 2009 and the “Best New Pickup Truck” by the Automobile Journalists Association of Canada.
* The all-new Ram earned a place on Ward’s distinguished list of winners, taking home the “2009 Interior of the Year” award in the popular-priced truck category.
* Chrysler earned two Polk Automotive Loyalty Awards. The 2009 Chrysler Town & Country earned the “Automotive Loyalty Award – Minivan” for the eighth year in a row, and Jeep Grand Cherokee took “Automotive Loyalty Award – Mid-size SUV.”
* The all-new Dodge Ram 1500 was named “Best Pickup Truck” and the 2009 Chrysler Town & Country and Dodge Grand Caravan were named “Best Minivans” in “MotorWeek” television’s annual Drivers’ Choice Awards.
* The new Ram also was chosen by Car and Driver magazine as the best full-size pickup truck in head-to-head competition with its competitors, including the new Ford F-150.
* The Detroit Free Press gave the 2009 Dodge Ram 1500 its highest rating — four stars or best in its class — in a product review by auto writer Mark Phelan.
* The 2009 Dodge Ram 1500 received “Truck of the Year” and the Dodge Challenger was awarded “Car of the Year by the Rocky Mountain Automotive Press (RMAP).
* Chrysler products received four of Four Wheeler magazine’s top 10 picks. For the second year, the Jeep Wrangler Unlimited Rubicon took “Editor’s Pick” honors for “Best Overall” four-wheel-drive vehicle.
* The Dodge Power Wagon took home honors from Four Wheeler for the best full-size pickup and was called “pure pickup perfection.” The Power Wagon also was honored with the Best 4×4 System.
* Popular Mechanics named the Dodge Challenger to its list of Automotive Excellence Awards for 2009.
* Kelley Blue Book (kbb.com) honored the 2009 Jeep Wrangler in its Best Resale Value Awards as the leader in the sport-utility vehicle segment.
Investments:
* Chrysler will invest approximately $1.8 billion in vehicle programs, including a significant expansion and upgrade at the Jefferson North (Detroit) Assembly Plant to ready it for future production, starting in 2010.
* Jefferson North is undergoing a 285,000 square-foot building expansion to replace the existing body shop, which will give the facility an all-new level of manufacturing flexibility for multiple products. In addition, changes throughout paint and assembly operations will accommodate vehicles of various sizes and dimensions. Material handling and other plant functions also will be improved.
Productivity:
* Since 2001 Chrysler has reduced the man hours needed to assemble a vehicle 31.4 percent from 44.28 hours to 30.37 hours.
* Last year, Chrysler tied Toyota for No. 1 in manufacturing productivity, and has the No. 1 assembly plant (Toledo Supplier Park) and No. 1 engine plant (GEMA joint venture with Hyundai and Mitsubishi).
Summary of Chrysler LLC manufacturing operations:
* 12 Assembly plants (8 U.S.)
* 5 Engine plants (4 U.S.)
* 6 Stamping plants (4 U.S.)
* 7 Transmission/casting/machining/axle plants (6 U.S.)
U.S. assembly plants:
* Belvidere (Ill.) Assembly Plant (Dodge Caliber, Jeep Patriot, Jeep Compass)
* Conner Avenue Assembly Plant (Detroit)
* Jefferson North Assembly Plant (Detroit) (Jeep Grand Cherokee, Jeep Commander)
* St. Louis Assembly Plant North (Fenton, Mo.) (Dodge Ram)
* Sterling Heights (Mich.) Assembly Plant (Dodge Avenger, Chrysler Sebring, Chrysler Sebring Convertible)
* Toledo (Ohio) North Assembly Plant (Jeep Liberty, Dodge Nitro)
* Toledo (Ohio) Supplier Park (Jeep Wrangler, Jeep Wrangler Unlimited)
* Warren (Mich.) Truck Assembly Plant (Dodge Ram, Dodge Dakota)
U.S. engine plants:
* Global Engine Manufacturing Alliance (GEMA) (Dundee, Mich.)
* Kenosha (Wis.) Engine Plant
* Mack Avenue Engine Plant I and II (Detroit)
* Trenton (Mich.) Engine Plant
U.S. stamping plants:
* Mt. Elliott Tool and Die (Detroit)
* Sterling (Sterling Heights, Mich.) Stamping Plant
* Twinsburg (Ohio) Stamping Plant
* Warren (Mich.) Stamping Plant
U.S. transmission/casting/machining/axle plants:
* Detroit Axle Plant
* Indiana Transmission I Plant (Kokomo)
* Indiana Transmission II Plant (Kokomo)
* Kokomo (Ind.) Casting Plant
* Kokomo (Ind.) Transmission Plant
* Toledo (Perrysburg, Ohio) Machining Plant
Canada assembly plants:
* Windsor (Ontario) Assembly Plant (Chrysler Town & Country, Dodge Grand Caravan)
* Brampton (Ontario) Assembly Plant (Chrysler 300, Dodge Charger, Dodge Challenger)
Canada casting:
* Etobicoke Casting (Toronto, Ontario)
Mexico assembly plants:
* Saltillo Assembly Plant (Dodge Ram heavy duty)
* Toluca Assembly Plant (Chrysler PT Cruiser, Dodge Journey)
Mexico engine plant:
* Saltillo Engine Plant
Mexico stamping plants:
* Saltillo Stamping Plant
* Toluca Stamping Plant
