Statement regarding J.D. Power and Associates Initial Quality Study (IQS) Attributable to Doug Betts, Senior Vice President – Quality, Chrysler Group LLC

Date: 06.22.09

PRESS RELEASE:

Today, J.D. Power and Associates announced the results of their 2009 Initial Quality Study (IQS), which measures new-vehicle quality at 90-days of ownership. We were pleased to learn that there are several bright spots for Chrysler Group LLC within this study, which demonstrate that the improvements we have been implementing over the past year are starting to show for the company as a whole and within each of the brands.

Chrysler Group had several models that perform in the top three in segment in initial quality. These include the Chrysler PT Cruiser, which is “Highest Ranked Compact Multi-Activity Vehicle in Initial Quality in a Tie”; Dodge Challenger, which ranks second in the Midsize Sporty segment; and the Dodge Grand Caravan, which is third in the Midsize Van/Minivan segment. Several other Chrysler Group models also demonstrated initial quality improvement.

The Jeep brand improved by 30 points and moved up three rank positions, currently ranking 33 among industry nameplates. This jump is attributable primarily to a 47 point improvement for the Jeep Wrangler.

Among the product highlights are:

• Chrysler PT Cruiser, which tied for first place in the Compact Multi Activity Vehicle segment.
• Chrysler Sebring (sedan and convertible), which finished fourth in the very competitive Midsize Car segment.
• Dodge Grand Caravan, which improved by 60 points and now ranks third in the midsize van category.

What the J.D. Power IQS shows us is that we have some forward momentum. We have figured out how to improve vehicles in production and have taken aggressive actions to continue that progress.

During the course of 2008 and early 2009, Chrysler Group has made tremendous progress on quality, which we can see in our internal measures. The fact is that over last year, Chrysler has reduced its warranty claims by 30 percent. Our internal metrics confirm that we are currently operating with reliability that is better than it has ever been in company history. While the improvement is encouraging, we have by no means arrived at a resting place. With the implementation of Customer Satisfaction Teams (CSTs), Customer Promoter Score (CPS) and other initiatives, we are confident that we will continue to see improvements in our vehicle quality, which will exceed the pace of improvement in the industry as we did in the 2009 IQS.

Source: Chrysler Media Services