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Employee talking points for Chrysler restructuring

Posted Monday, May 4, 2009, 4:59 pm

As the events shaping Chrysler’s future are unfolding quickly, many of your family members, friends and neighbors may be asking you questions. You can be an important ambassador for the new company we are building by providing accurate information to help others understand what is happening. Here are some points to help you communicate our positive story.

• Chrysler will continue to produce and support quality vehicles under the Jeep®, Dodge and Chrysler brands as well as parts under the Mopar® brand

• Chrysler dealerships remain open for business serving our customers. Vehicle warranties will be honored without interruption, and consumers can continue to purchase our vehicles with complete confidence

• As a result of the comprehensive restructuring plan, Chrysler LLC has signed a definitive agreement to establish a global strategic alliance with Fiat SpA to form a vibrant new company

• This restructuring agreement, coupled with the Fiat alliance, is the best solution to enable us to move forward as a formidable competitor

• This alliance will give Chrysler access to Fiat’s platforms, technology and global distribution networks, while providing Fiat access to Chrysler’s North American manufacturing operations and sales and distribution network

• The alliance will enable us to better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient high-quality vehicles

• To conclude this transaction, our stakeholders (including unions, other employees, dealers, suppliers and some lenders) had to make some hard choices in the greater interests of the whole

• We would have preferred to achieve our restructuring without going to Bankruptcy Court. Unfortunately, while all other stakeholders stepped up to the plate, we could not come to agreement with all first-lien lenders

• In order to quickly implement the Fiat transaction, Chrysler LLC and 26 of its wholly owned U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York

• The Chapter 11 filing will include actions to reduce our debt burden and interest expense and liabilities

• This type of “structured bankruptcy” with a 363 filing will allow us to establish a new Chrysler within 30 to 60 days

• Most of our manufacturing operations will be in a “hibernation period” during this 30 to 60 days to conserve resources while this deal is finalized, after which, they will be able to quickly resume normal operations

• Despite this temporary shutdown of manufacturing, our dealers have plenty of inventory and are offering attractive deals on new vehicles

• The 363 filing will allow the new Chrysler, in a global alliance with Fiat, to emerge leaner, more competitive and with greatly enhanced long-term viability
 
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