Chrysler’s Viability?

Date: 12.04.09

PRESS RELEASE:

Auburn Hills, Mich. , Dec 4, 2009 –

In deference to Tom Incantalupo’s road test today about the Chrysler 300C, where he also questions Chrysler Group’s viability going forward, I would like to offer the reminder that just last month we outlayed our five-year business plan, which is a genuine transformation, to hundreds of media and financial analysts, which included the following:

• We are planning on an operating profit break-even in 2010 and a total operating profit generation of approximately $14 billion over the five-year plan period, as well as for net income break-even in 2011
• The plan also assumes that Chrysler will build for Fiat 270,000 vehicles to wear one of Fiat’s badges (that’s additional North American production for overseas markets)
• Chrysler will invest roughly $23 billion in engineering and capital to rebuild our product portfolio and manufacturing infrastructure
• That includes the product portfolio getting a major overhaul. 75 percent of the current offering will be touched within the next 14 months, and 100 percent of the portfolio will be renewed in some fashion by 2012
• Critical Major Product Modifications (MPM) will mean extensive changes for both the Chrysler Sebring and Dodge Avenger, which will be in the market by the end of 2010, as well as to our important Dodge Grand Caravan and Chrysler Town & Country minivans, and popular Jeep Wrangler
• Chrysler Powertrain actions will result in a 25 percent fuel efficiency improvement of the Chrysler Group fleet between 2010 and 2014

I hope this gives readers our side of the story about our viability going forward, from the next five years and beyond.

Thank you,

Gualberto Ranieri,
Senior Vice President, Communications
Chrysler Group

Source: Chrysler Media Services