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Keeping Track of the Facts, February 2009


* 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.

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

Global sales and dealers:

* Chrysler’s total January 2009 U.S. sales were 62,157 units, down 55 percent versus the same month last year, and down 31 percent from December 2008 (89,813 units). Total sales were suppressed by a significant reduction in fleet sales, which is part of the Company’s sales strategy to help maintain or improve overall residual value of Chrysler vehicles. Fleet sales are down 81 percent for January compared with the same time last year.
* For 2008 calendar year (CY), Chrysler, Jeep® and Dodge U.S. sales decreased 30 percent (1,453,122 units) compared with total 2007 sales (2,076,650 units).
* Jeep Wrangler sales increased 4 percent (6,362 units) compared with January 2008 (6,137). Kelley Blue Book awarded the 2009 Jeep Wrangler with its Best Resale Value award and leader in the sport-utility segment.
* The all-new Dodge Challenger continues to draw a crowd. In January, sales reached 2,757 units, up 6 percent from December 2008.
* Dodge Journey continues to make its mark in the crossover segment offering best-in-class fuel economy (19 mpg city/25 mpg highway) and award-winning seven-passenger interior utility. Dodge Journey sales continue to climb as sales reached 2,757 units, up 6 percent from December 2008.
* Global sales for January 2009 (90,859 units) decreased 50 percent compared with the same period last year (181,914 units). Total global sales for 2008 calendar year decreased 25 percent (2,007,081 units) compared with 2007 calendar year (2,676,268 units).
* Chrysler Canada started the year as the second-highest selling automaker in that country. Total January 2009 sales were 11,259 units, down 34 percent compared with 16,952 units in January 2008. For 2008 CY, Chrysler Canada sales decreased 4 percent (222,996 units) compared with total 2007 sales (222,859 units).
* In the wake of global economic challenges, sales outside North America in calendar year 2008 (214,826 units) decreased 10 percent compared with 2007 calendar year sales (238,218 units). For January 2009, Chrysler sold 10,536 units outside North America, down 37 percent compared with January 2008 sales (16,784 units).
* January 2009 sales in Mexico decreased 36 percent to 6,907 units compared with the same month in 2008 (10,786 units), while year-to-date sales reached 116,137 units, down 10 percent.
* In the United States, Chrysler continues to offer the Employee Pricing Plus Plus program through March, which offers the employee price to all customers purchasing or leasing a new 2008 or 2009 Chrysler, Jeep or Dodge vehicle. In addition to the employee price, customers are eligible for cash discounts of up to $3,500 for 2009 model year vehicles and up to $6,000 on 2008 model year vehicles. Chrysler Financial also is offering zero-percent financing to qualified customers for up to 48 months.
* While we slowed some of our Project Genesis plans due to the economy, we are still making progress in transforming the U.S. dealer network. Through January 2009, 61 percent (1,989) of our dealers are tri-branded, compared with 55 percent a year ago. Additionally, we have increased our tri-branded dealers in metro markets by 24 percent. In the United States, we now have 3,277 dealers, down from 3,571 dealers a year ago in January.
* As of January, the Chrysler dealer network outside of the U.S. includes 451 dealers in Canada; 117 dealers in Mexico plus 67 branches and 11 showrooms; and 1,592 dealers outside of North America.


* 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.
* Chrysler had the industry's lowest number of recalls in 2008 as reported by NHTSA, and internal warranty data show that the company has achieved the lowest warranty claim rate in its history, with a 30 percent improvement in the last 12 months.
* 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 Phoenix V-6 engine.
* 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.
* 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” televison’s annual Drivers’ Choice Awards.
* The all-new Ram already has earned 12 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, Inside Line Editors Most Wanted for 2009 and the “Best New Pickup Truck” by the Automobile Journalists Association of Canada.
* 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.
* 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 ( honored the 2009 Jeep Wrangler in its Best Resale Value Awards as the leader in the sport-utility vehicle segment.
* 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.
* 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.


* 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.


* 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

Chrysler LLC
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