Chrysler Restructuring Plan

for Long-Term Viability

Executive Summary

February 17, 2009

 

 

73% of our total Sales

are within the U.S.

61% of our vehicle Production

is in the U.S.

74% of our total Employees

are U.S. based

78%of our Purchased Material 

is from U.S. based suppliers

62%of all our Dealers

are based in the U.S.
1 

TABLE OF CONTENTS 

 Page

Introduction ......................................................................................................................................................... 2 

Restructuring Plan Assumptions and Key Metrics .............................................................................................. 4 

Restructuring Actions.......................................................................................................................................... 7 

Strategic Alliance .............................................................................................................................................. 10 

Commitment to Energy Security and Environmental Sustainability .................................................................. 12 

Compliance with Fuel Economy Regulations.................................................................................................... 13 

Compliance with Emissions Regulations .......................................................................................................... 14 

Achieving a Competitive Product Mix and Cost Structure................................................................................. 15 

Conclusion ........................................................................................................................................................ 18 

List of Tables 

1. Revenue Impact of U.S. SAAR Levels........................................................................................................... 4 

2. Request for Government Loan....................................................................................................................... 5 

3. Key Operating Metrics of the Restructuring Plan ........................................................................................... 6 

4. Net Present Value.......................................................................................................................................... 7 

List of Figures 

1. Status of Restructuring Actions...................................................................................................................... 8 

2. Improvement of Fuel Economy Using Powertrain 

 and Portfolio Opportunities with Fiat ............................................................................................................ 10 

3. Expansion through Current Geographic (Percent Sales by Region)............................................................ 11 

4. Chrysler’s Electric Vehicle Product Portfolio ................................................................................................ 12 

5. 2008 Harbour Report (Manufacturing Efficiency)......................................................................................... 15 

6. Chrysler Total Quality Improvement............................................................................................................. 16 

7. Customer Promoter Score (CPS) / Appeal of New Dodge Ram .................................................................. 17
2 

Chrysler Restructuring Plan 

for Long-Term Viability 

Introduction 

On December 2, 2008, Chrysler LLC (“Chrysler” or “the Company”) submitted its Plan for 

Short-Term and Long-Term Viability to Congress as part of its request for a $7 billion working 

capital loan from the U.S. government to support its short term restructuring and long term 

viability. On January 2, 2009, Chrysler received an initial $4 billion loan from the United States 

Department of the Treasury, the terms of which require the Company to submit a restructuring 

plan to achieve and sustain long-term viability, international competitiveness and energy 

efficiency. 

The restructuring plan presented demonstrates Chrysler’s ability to meet those requirements 

through its continued focus on implementing cost reductions and modifications to its capital 

structure to improve its balance sheet, and on developing a fuel-efficient product portfolio that 

meets customer expectations and governmentally imposed environmental requirements. 

Chrysler’s management believes that this restructuring plan, which assumes achievement of 

concessions from all constituents, Chrysler Financial maintaining adequate retail and wholesale 

financing capacity, and incremental funding from the U.S. Treasury can be successfully 

implemented and will result in the Company’s long-term viability, international competitiveness 

and energy efficiency. 

Due to the continued deterioration in the economy which has led to an unprecedented decline in 

the automotive sector since our December 2nd plan submission, in addition to the $7 billion 

original request, $4 billion of which has been received, Chrysler is requesting an additional $2 

billion, for a total of $9 billion to support ongoing operations. 
3 

The availability of credit for automotive customers and dealers is the single most important 

element of Chrysler’s viability. Because of the credit market crisis and subsequent rating agency 

actions, restrictions were placed on Chrysler Financial’s credit conduits. Because of these 

restrictions, Chrysler Financial was forced to greatly reduce the level of retail and wholesale 

financing support for customers and dealers in the U.S., Mexico and Canada. Most significant 

was the complete discontinuation of lease financing in the U.S. and Canada in August 2008, 

which led directly to reductions in total sales volumes of 20% and 50% for the U.S. and Canada, 

respectively. 

Chrysler Financial received a U.S. Treasury loan of $1.5 billion in mid January, 2009 to support 

retail financing, and it was estimated that this amount would provide adequate financing capacity 

through March 31, 2009. However, this is not a long-term solution. Because of the continued 

lack of liquidity in the credit markets, several follow-on proposals have been submitted by 

Chrysler Financial to the U.S. government for a long-term solution to ensure its financing 

capacity. It is critical that these requests be resolved, as adequate retail and wholesale financing 

capacity for Chrysler Financial is a requirement for Chrysler’s viability. 

The Company’s standalone restructuring plan demonstrates viability which could be further 

enhanced with a strategic alliance that more effectively utilizes its manufacturing capacity and 

positions the Company for growth. Chrysler and Fiat S.p.A. have signed a non-binding letter of 

intent that is conditioned upon Chrysler meeting all restructuring targets set forth in Chrysler’s 

U.S. Treasury Loan Agreement Department. If completed, this partnership would greatly 

improve Chrysler’s long-term viability. 

It is essential that Chrysler achieve the concessions and planned balance sheet restructuring 

identified in its restructuring plan, including the receipt of incremental government funding. 

If the requisite concessions are not achieved by the government’s March 31st funding deadline, 

management believes the only alternative would be to immediately plan for an orderly wind 

down of all operations through a court-supervised liquidation. This is clearly not an alternative 

Chrysler would prefer, but is one that the Company is prepared to implement if required. 
4 

Chrysler has had discussions with each of its constituents and believes that it has made 

substantial progress in seeking concessions from its dealers, suppliers, 2nd lien lenders, 

shareholders and the UAW. In order to complete its restructuring plan, the Company requires 

further concessions of $5 billion of additional liability and interest burden relief from its creditor 

groups

1

.

The Company has engaged in discussions with its creditor groups1 and believes it is possible to 

reach agreement on the terms and conditions of required concessions. With the continuing 

participation and diligent effort of all creditor groups1, and support from the President’s 

Designee and the Presidential Task Force on Autos, Chrysler will be in a position to finalize its 

restructuring plan and receive additional government funding, by March 31, 2009. 

1) Restructuring Plan Assumptions and Key Metrics 

Due to the continued lack of consumer credit, which has prevented interested customers from 

purchasing new vehicles and has prevented dealers from securing financing to support continued 

wholesale orders, Chrysler has revised its Seasonally Adjusted Annual Rate (SAAR) forecast 

covering the next four years. Chrysler’s restructuring plan is based on conservative SAAR 

assumptions that reflect the reality of a declining automotive industry. The restructuring plan 

projects, commencing in 2009, a SAAR level of 10.1 million units, and for years 2009 through 

2012, an average SAAR level of 10.8 million units. This represents a reduction from the 

Company’s original December 2, 2008 submission to Congress of 7.2 million units, or on 

average, 1.8 million units annually over the four years. 

Table 1 – Revenue Impact of U.S. SAAR Levels (millions)

2009 2010 2011 2012 

December Submission 11.1 12.1 13.7 13.7 

Current Restructuring Plan 10.1 10.6 11.1 11.6 

 Change (1.0) (1.5) (2.6) (2.1) 

Cumulative Change (1.0) (2.5) (5.1) (7.2) 

 Estimated Revenue Impact on Chrysler (a) $ (2,500) $ (6,250) $ (12,750) $ (18,000) 

Estimated Cash Impact $ (500) $ (1,250) $ (2,550) $ (3,600) 

(a) Based on assumed market share of 10% 

Footnote 1: Creditors include the 1st lien lenders, the U.S. Government and the UAW-VEBA 
5 

For Chrysler, this represents a sales decline of approximately 720,000 units, assuming 

a 10% market share, and approximately $18 billion in lost revenue and a $3.6 billion decline in 

cash inflow over the four years. 

As the Company indicated in its December 2nd Congressional testimony, the availability of credit 

to automotive consumers and dealers is the single most important element of Chrysler’s viability. 

The continued credit market turmoil has resulted in rejection of consumer loan applications and 

lost sales to dealers, which in turn has led to reduced wholesale orders for Chrysler vehicles and 

further vehicle production cuts. 

This chain of events has created a rapidly declining SAAR trend which directly and immediately 

reduces cash inflow in a manner that cannot be addressed adequately through even the most 

aggressive restructuring actions. These softer-than-expected market conditions during the 4th

quarter have continued into the 1st quarter of 2009 resulting in an industry-wide decline in 

automotive sales. As a result, Chrysler now requires an additional $2 billion in cash beyond that 

anticipated in Chrysler’s December submission, bringing its total request to $9 billion. 

Table 2 below summarizes Chrysler’s initial and current funding request: 

Table 2 – Request for Government Loan

Funding To Date 

($Billions) 

Funded to Date $ 4 

Remaining $ 3 

 Total Original Requested $ 7 

 Additional Request $ 2 

TOTAL Funds Requested $ 9 

Chrysler proposes to repay the U.S. Treasury Loan with interest, fees and out-of-pocket expenses 

beginning in 2012. The fees to be paid are in lieu of warrants, given Chrysler is a private 

company. 
6 

Chrysler’s restructuring plan includes the benefit of restructuring actions and concessions that 

management believes will be reached with its core constituents including: the UAW, dealers, 

suppliers, shareholders, 2nd lien lenders and other creditor groups. These benefits are reflected in 

the restructuring plan in fixed costs savings, improved EBITDA and improved cash flow. 

The restructuring plan shows that the Company will have adequate liquidity throughout the 

planning period while making significant loan amortization payments. The chart below 

summarizes the key operating metrics of the restructuring plan on the pro forma basis and 

reflects what the Company believes to be a conservative outlook.

Table 3 - Key Operating Metrics of the Restructuring Plan 

The restructuring plan shows that Chrysler achieves a positive net present value of $17.3 billion 

after taking into account all existing and projected costs, including repayment of 100% of the 

U.S. Treasury Loan and implementation of the restructuring plan. 

*For the seven years prior to the 2008 industry turn down (2001-2007) Chrysler’s market share was flat compared 

to GM and Ford whose market share declined 17% and 25% respectively 

2008

Unaudited

2009

Plan

2010

Plan

2011

Plan

2012

Plan

2013

Plan

2014

Plan

2015

Plan

2016

Plan

U.S. Industry SAAR (Mills) (Light Duty Only) 13.2 10.1 10.6 11.1 11.6 12.1 12.6 13.1 13.7

Worldwide Shipments (000 units) 2,065 1,618 1,775 2,085 2,120 2,175 2,227 2,281 2,345

U.S. Market Share (Retail & Fleet) 10.8% 10.4% 10.7% 10.7% 10.7% 10.7% 10.7% 10.7% 10.7%

U.S. Dealer Inventory (000 units) 398 355 312 306 306 306 306 306 306

Material Cost Savings (1.1%) 0.25% 0.25% 0.25% 0.25% 0.50% 0.50% 0.50% 0.50%

Net Pricing (1.0%) (0.5%) (0.5%) (0.5%) (0.5%) (0.25%) (0.25%) (0.25%) (0.25%)

Capital Expenditures (Bils) $2.3 $2.3 $2.3 $2.6 $2.6 $2.6 $2.5 $2.5 $2.5

Fixed Cost excluding VEBA (Bils) $10.9 $10.2 $10.2 $10.2 $10.2 $10.1 $10.1 $10.1 $10.1

EBITDA (Bils) $0.3 $2.9 $5.0 $3.9 $3.9 $4.4 $4.7 $5.2 $5.6

Cash - Year End Balance (Bils) $2.5 $9.0 $10.6 $10.8 $11.4 $11.3 $11.4 $12.2 $13.4

*
7 

Table 4 – Net Present Value 

2009 2010 2011 2012 2013 2014 2015 2016

Free Cash Flows to Equity $ 1.7 6.5 $ 0.1 $ 0.6 $ (0.1) $ 0.1 $ 0.8 $ 1.2 $ 

Terminal Value

EBITDA at 2016 5.6 $ 

Multiple 5.0

Terminal Value (Before Debt) 28.0 $ 

Less Debt: (13.7) 5% 10% 15% 20%

Terminal Value (Net of Debt) 14.3 $ 9.7 $ 6.7 $ 4.7 $ 3.3 $ 

NPV of Free Cash Flows at 1/1/2009 9.7 8.7 8.0 7.5

NPV of Net Terminal Value 9.7 6.7 4.7 3.3

NPV of Chrysler Cash Flows 19.4 $ 15.4 $ 12.7 $ 10.8 $ 

Plus: Cash at 1/1/2009 1.9 1.9 1.9 1.9

NPV per Section 7.20 of UST Loan 21.3 $ 17.3 $ 14.6 $ 12.7 $ 

NPV Discount Rates

2) Restructuring Actions 

Upon becoming an independent company on August 3, 2007, Chrysler took immediate action to 

redesign its business model, enhance its product portfolio and create a more competitive cost 

structure. In response to deteriorating economic conditions, Chrysler initiated additional 

measures to reduce costs and improve competitiveness which included: 

• Workforce reduction of 32,000 • Discontinuation of 4 models 

• Capacity reduction of 1.2 million 

units (over 30% of total capacity) 

• Sale of $700 million in non-earning 

assets 

• Reduction of 12 manufacturing 

shifts 
8 

12 

Figure 1: Status of Restructuring Actions (2008 and 2009) 

In developing its restructuring plan, Chrysler has worked closely with all key constituents to 

explore additional concessions. The identified concessions that management believes can be 

implemented by March 31, 2009 include: 

• Executive/Management Concessions – Chrysler will fully comply with the restrictions 

established under section 111 of EESA relative to executive privileges and compensation. 

In addition, the company has suspended the 401K match, performance bonuses, merit 

increases, and eliminated retiree life insurance benefits. 

• Dealer Concessions – Chrysler will achieve cost savings and improved cash flow 

through a number of initiatives including reduced dealer margins, elimination of fuel fill 

reimbursement, and reduction of service contract margins. 

• Union Concessions – The term sheets for the Labor Modifications and VEBA 

modifications fundamentally comply with the requirements of the U.S. Treasury Loan 

and once realized, will provide Chrysler with a workforce cost structure that is 

competitive with the transplant automotive manufacturers. The VEBA modifications 

term sheet however is conditioned on, among other things, further due diligence and 

satisfactory debt restructuring. Chrysler will continue to work diligently with its labor 

unions and retirees’ class counsel in structuring and negotiating concessions necessary to 

In-Process

1.3M 

$1B 

13 

35,000 

7 

Capacity Cuts 

Sales of Non-Earning 

Assets 

Shift Reduction 

Workforce Reduction 

Models Discontinued 

Complete

1.2 Million Units 

$700M 

32,000 

4 

12
9 

the Company’s continued viability and look forward to the assistance of the U.S. 

Treasury in that effort. 

• Supplier Concessions – The Company has initiated a dialogue with its suppliers and 

believes that it will be able to obtain substantial cost reductions from suppliers that will 

result in achieving targeted savings. Chrysler also supports the supplier associations’ 

proposals which would provide a government guarantee of OEM accounts payables. 

• 2nd Lien Debt Holders Concessions – The holders of the 2nd Lien Debt have expressed a 

willingness to convert 100% of their debt to equity. 

• Shareholders – Current shareholders have also indicated a willingness to relinquish their 

current equity position to support Chrysler’s viability plan. 

Additionally, the viability plan includes a further reduction of outstanding obligations from 

certain creditor groups by $5 billion. In addition to strengthening the Company’s balance sheet 

for the long-term, this reduction will also provide immediate cash flow via interest savings of 

between $350 - $400 million annually. 
10 

3) Strategic Alliance 

The written and oral testimony Chrysler submitted to the U.S. House and Senate in 2008 stated 

the Company’s intent to seek the benefits of global partnerships and alliances. Chrysler has 

signed a non-binding agreement to pursue a strategic alliance with Fiat which represents an 

attractive opportunity for significant strategic and financial benefits. 

 

Figure 2: Improvement of Fuel Economy Using Powertrain and Portfolio Opportunities with Fiat

Journey

50% Flex Fuel 

Vehicles by 2012

MEDIUM/HEAVY

MID/LARGE 

SUVS

PICKUP &

LARGE VAN

MINIVAN

LARGE

FULLSIZE

MIDSIZE

COMPACT SUV

SMALL / MINI

COMPACT

Fiat Punto

C-EVO Sedan

D-EVO Sedan

Alfa Giulia

Alfa Milano

Small 

Gas 

Engine

0.9L

FIRE

Gas

Engine

1.1L NA 

– 1.4L 

NA, Mair, TC

Alfa CUV

FAM B

Gas

Engine

1.8L DI 

TC

Alfa Mito

B Hatch 5 Pass

Fiat 500

World

Gas

Engine

1.8L –

2.4L 

NA, TC

Phoenix

Gas 

Engine

V6

3.6L NA

Multi Air-Efficient Engine 

Valve Train Technology

High Pressure Common

Rail Diesel Technology

Dual Clutch Transmission

Efficient V6 Engine 

Technology

The proposed Fiat alliance would enhance Chrysler’s restructuring plan, provide customers with 

access to competitive fuel-efficient vehicle platforms, provide Chrysler with substantial cost 

saving opportunities and provide Chrysler with distribution capabilities in key growth markets. 

The alliance would also help stabilize the U.S. automotive market and enhance Chrysler’s ability 

to more quickly repay the U.S. Treasury loan. 
11 

Figure 3: Expansion through Current Geographic – Percent (%) Sales by Region 

North America

South America

Europe

Africa

Asia

POTENTIAL COMBINED

18.3

39.4

1.7 0.4

40.2

STANDALONE

33.3

65.2

1.0

0.4 0.1

2.5

0.1

1.5

5.5

90.4

Chrysler’s intent is to build on its product alliances or form global alliances to enhance its 

viability. The Company has proposed that a percentage of its new equity be retained in a trust 

controlled by the Presidents Designee to facilitate these alliances in the future. This provision 

will avoid a redistribution and reallocation of Chrysler equity in the future. 
12 

4) Commitment to Energy Security and Environmental Sustainability 

In 2008, Chrysler offered six vehicles with highway fuel economy of 28 miles per gallon or 

better. The 2009 product lineup offers improved fuel economy with 73% of its vehicles showing 

improved fuel economy compared with the prior year’s model. Fuel economy will continue to 

improve in 2010 with the introduction of the all-new Phoenix V-6 engine, which will provide 

fuel efficiency improvements of between 6-to-8 percent. A two-mode hybrid version of the 

Company’s best-selling vehicle, the Dodge Ram is scheduled for 2010. 

The first Chrysler electric-drive vehicle is also scheduled to reach the market in 2010. It will be 

followed by other electric-drive vehicles, including Range-extended Electric Vehicles, in order 

to further reduce fuel consumption and greenhouse gas emissions in Chrysler’s mainstream 

vehicles. 

Figure 4: Chrysler’s Electric Vehicle Product Portfolio

GEM/Peapod

Renewal NEV

>200 mpg

HEV

28-30 mpg

ENVI #6

ReEV

40-50 mpg

Battery 

Electric

Vehicle

(NEV, CEV, BEV)

Range-Extended

Electric 

Vehicles

(ReEV)

2009 2010 2011 2012 2013

Dodge

RAM 1500

HEV Gen 2

26-28 mpg

Dodge

RAM 1500

HEV Gen 1

25-27 mpg

ENVI #3

ReEV (or HEV)

55-65 mpg

2014

ENVI #1

BEV

>200 mpg

ENVI #2

City EV

>200 mpg

ENVI #5

ReEV

60-70 mpg

Hybrid 

Electric 

Vehicles 

(HEV)

NOTE: Denotes inclusion in 

Chrysler’s 10Nov2008 ATVM Loan 

Program Submission to DOE 

In DOE Plan

alternative

HEV

40-45 mpg

ENVI #4

ENVI #4

ReEV

>45 mpg

The proposed Fiat alliance would further help the Company achieve fuel economy improvements 

as Chrysler gains access to Fiat’s smaller, fuel efficient platforms and powertrain technologies. 
13 

This alliance would enable Chrysler to reduce its capital expenditures while supporting the 

Company’s commitment to develop a portfolio of vehicles that meet the country’s energy 

security and environmental objectives. 

5) Compliance with Fuel Economy Regulations 

Chrysler is committed to meeting Federal Corporate Average Fuel Economy (CAFE) 

requirements. The restructuring plan supports the company’s compliance with all federal fuel 

economy standards as set forth in the Energy Independence and Security Act of 2007. Going 

forward, Chrysler supports the development of a uniform national standard that reflects the input 

of all constituents. 

Included in the main report are estimates of Chrysler’s required minimum CAFE levels in model 

years 2008 to 2011, based on a pre-publication draft of the NHTSA Final Rule for model years 

2009 to 2015 that became available earlier this year. The Appendix contains a series of charts 

showing the specific technologies to be used in each vehicle to achieve CAFE compliance, along 

with the timing of the deployment of the technologies. This description of specific actions 

demonstrates that Chrysler will comply with the CAFE standards throughout the term of the U.S. 

Treasury loan and beyond. 

Pursuant to California Assembly Bill 1493 (“AB 1493”) the California Air Resources Board 

(“CARB”) has also adopted vehicle emissions standards to control greenhouse gas (“GHG”) 

emissions, chiefly carbon dioxide. The GHG standards include sales-weighted fleet average 

requirements using a formula that requires increases in fuel economy, because the only current 

available technology to reduce carbon dioxide emissions from gasoline- or diesel-powered 

vehicles is to reduce fuel consumption. Thirteen other States and the District of Columbia have 

adopted the California GHG standards. These states comprise approximately 50% of the United 

States vehicle market during model years 2012-2016. 
14 

If the California GHG standards take effect, Chrysler will try its best to comply using available 

technology, however, as a last resort it may be necessary to restrict the sales of certain vehicle 

models in order to comply with the GHG fleet average requirements in each jurisdiction that has 

adopted them and that has decided to enforce the fleet average requirements. The ultimate effect 

of the California standards on Chrysler’s product plan depends on a number of developments as 

indicated in the Appendix. 

6) Compliance with Emissions Regulations 

The United States EPA and the CARB enforce regulations to control hydrocarbons and nitrogen 

oxides, the two vehicular air emissions aimed at reducing smog. Chrysler vehicle engine 

systems and catalytic converters oxidize and reduce these emissions to regulatory levels, and 

control emissions of other compounds subject to other EPA and CARB regulations. EPA and 

CARB also enforce “on board diagnostic” (“OBD”) regulations governing vehicles onboard 

computer, which among other things optimize the performance of the catalytic converter and 

determine if emissions-related components are properly functioning. 

Chrysler pre-production and post-production vehicles must pass rigorous testing, after which 

vehicle certification to a specific set of EPA and CARB emissions standards is obtained. 

Chrysler also must warrant that its vehicles will pass such testing when properly maintained 

and used. 

The Appendix includes materials that show that Chrysler will comply with emissions standards 

as expressed, per the regulations, as a weighted average of the various categories of emissions 

requirements versus fleet sales volumes for cars and trucks established by EPA and CARB for 

the time period relevant to the loan agreement. The Appendix also shows Chrysler’s compliance 

with CARB’s “zero emission vehicle” (“ZEV”) requirements, which are promulgated for model 

years 2009 through 2010, and Chrysler’s best understanding of the as yet unpromulgated ZEV 

requirements for model years 2011 and later. 
15 

7) Achieving a Competitive Product Mix and Cost Structure 

As noted above, Chrysler has taken a number of actions over the past several years to improve its 

cost competitiveness. According to the Harbour Report, Chrysler has improved its 

manufacturing productivity by 32% over the past seven years to equal that of Toyota, making 

Chrysler and Toyota the most productive automakers in North America in terms of hours of 

assembly per vehicle. 

Figure 5: 2008 Harbour Report (Manufacturing Efficiency) 

44.28

40.60

32.90

30.37

37.42

35.85

33.71

25

30

35

40

45

50

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

44.59

40.53

37.59

30.88

29.54

8.3%

7.8%

4.2%

6.0%

2.4%

7.7%

not

released

Having achieved world class hours of assembly time per vehicle, assuming the implementation 

of new wage rates consistent with the government mandated labor modifications, Chrysler will 

be on par with transplants from a manufacturing cost perspective. 

Since becoming a standalone company on August 3, 2007, Chrysler has made quality a major 

focus. In its first 60 days as an independent automaker, Chrysler management approved more 

than 260 product enhancements representing an investment of $500 million. Hundreds of 

additional engineering improvements were made in the following months to enhance the interior 

quality, fit and finish, and the driving performance of many Chrysler products. In the 2008 J.D. 
16 

Power and Associates Initial Quality Survey, the Company’s vehicles improved scores by an 

average of 5 points. In addition, in 2008 Chrysler achieved the lowest warranty claim rate in its 

history – a 30% improvement compared to the prior year. And, among the seven major auto 

manufacturers, Chrysler had the lowest number of vehicles recalled in 2008 as measured 

by NHTSA. 

Figure 6: Chrysler Total Quality Improvement 

Chrysler was the first company in the industry to appoint a Chief Customer Officer devoted to 

improving real and perceived quality. As part of this initiative, Chrysler has formed crossfunctional customer satisfaction teams that act as problem solvers on new vehicles as they are 

being developed and launched. 

Figure 7: Customer Promoter Score (CPS) Confirms Consumer Appeal of New Dodge Ram 

Chrysler’s product line is a key component to its restructuring plan. Next year Chrysler will 

launch revisions to four of its previously highly successful platforms: Jeep Grand Cherokee, 

Dodge Charger, Dodge Durango and Chrysler 300. The Chrysler 300C has become the most 

2009 Dodge Ram Truck

• First vehicle tested with 

customer promoter score system

• First 700 customers contacted 

• 99.8% positive comments 

• 12 awards received in 2009 

2001 2007 2008 2009 2010 2011 2012

Warranty Failure Rate

2001 -2007

Average Annual 

Improvement 

Rate was 2.4%

.........................

Better

30%
17 

awarded car in automotive history since its launch in 2005. This launch will be followed by a 

new, bolder, more intimidating Dodge Charger and an all new unibody Dodge Durango. 

Chrysler will continue to work with its dealer body to rationalize the number of dealerships to 

enhance the long-term profitability of all dealers. Through Project Genesis, Chrysler is 

committed to facilitating the ability to offer each of Chrysler’s three product brands under one 

roof, creating an enhanced buying and service experience for the consumer and supporting the 

viability of Chrysler dealers in communities across the country. The proposed alliance with Fiat 

would allow Chrysler to broaden its product offerings – bringing the American consumer a 

broader selection of cars to meet their needs - and providing Chrysler dealers with an expanded 

product line and opportunity for improved profitability. 
18 

8) Conclusion 

We believe Chrysler’s restructuring plan, as approved by its Board of Directors, demonstrates 

that, with constituent concessions, adequate retail and wholesale capacity for Chrysler Financial, 

a restructuring of our liabilities resulting in a $5 billion reduction in debt and debt service 

requirements and additional governmental assistance, Chrysler can achieve and sustain long-term 

viability, international competitiveness and energy efficiency. The Company’s viability can be 

further enhanced through strategic alliances and partnerships. However, in order to weather the 

current economic crisis, in addition to the original $7 billion, $4 billion of which has been 

received, Chrysler is requesting an additional $2 billion, for a total of $9 billion, to support 

ongoing operations due to the continued deterioration in the economy, which has led to an 

unprecedented decline in the automotive sector since the Company’s December 2nd plan 

submission. 

While this is a substantial investment of taxpayer funds, Chrysler believes the requested loan is 

the least costly available alternative and will provide an important stimulus to the U.S. economy 

that will eventually deliver positive returns for the American taxpayer. 

Respectfully submitted, 

Chrysler LLC