Chrysler Restructuring Plan for Long-Term Vi

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.

... is the Quintessential American Auto Comp
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Chrysler Restructuring Plan For Long-term Viability

I. Summary of Strategic Alternatives and Management RecommendationII. Background and Current State of IndustryIII. Restructuring Plan Assumptions and RisksIV. Financial Business PlanV. Strategic Alliance Benefits VI. Industrial Plan VII. Potential U.S. Industry Consolidation StudyVIII. Orderly Wind Down ScenarioIX. Chrysler LLC RequestAppendices
Table of Contents 

Page

I. Summary of Strategic Alternatives and 

Management Recommendations

9

• Chrysler LLC Alternatives 11• Management Recommendations 13• Status of Restructuring Plan / Concessions 15• Alternatives for Addressing Debt 17• Strategic Alliance Synergy and Benefits 

Overview

19

• Next Steps 21• Government Requirements Checklist 23

II. Background and Current State of Industry 25

• Chrysler’s Dec 2, 2008 Viability Plan 

Submission

27

• Transformation and Restructuring Efforts 29• Economic Indicators 31• Credit Crisis 33• U.S. Auto Industry Sales History 35• Chrysler’s Short-Term Cash Needs 39

III. Restructuring Plan Assumptio

and Risks

IV. Financial Business Plan 

• Chrysler “Stand Alone” Busine

– SAAR Sensitivities – Key Metrics and Assump– Income Statement – Cash Flow Statement – Balance Sheet – Sales and Shipments by – Fixed Cost Trends 

• Chrysler “Stand Alone” Busine

2009-2010 Calendar Year Det

– 2009 Income Statement – 2009 Cash Flow Stateme

Monthly

– 2010 Cash Flow Stateme

Monthly

– 2010 Balance Sheet – M– Chrysler Short-Term Cas
Table of Contents

Page

V. Strategic Alliance Benefits 81

• Benefits of Fiat Alliance 83• Fiat Overview 85• Fiat Alliance Proposed Transaction 87• Benefits from Global Scale / 

Complementary 

89

• Product and Technology Sharing 95

VI. Industrial Plan 99

• Product Leadership Strategy 101• Quality Strategy 103• Fuel Economy Improvements with Fiat 113• Safety, Regulatory, Environmental 

Requirements

115

• CAFE Compliance Strategy / California 

ZEV Mandate & Strategy

117

• NHTSA Regulatory Safety Compliance 121• Product Portfolio 123

– Vehicle Electrification Plan 125– Innovation & Features 127– New Products & Launch Cadence 131

• Manufacturing Plan Objective• Procurement Plan 

VII. Potential U.S. Industry Conso

Study

VIII. Orderly Wind Down Scenario 

• Liquidation Analysis 

IX. Chrysler LLC Request 
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List of Appendices

1. Continuing Production DIP Forecast 2. Supplement on Stakeholder Concessions 3. Financials 4. Quality Strategy 5. Product Development and Regulatory Compliance 6. Manufacturing 7. Procurement 8. Distribution 9. Center for Automotive Research – Research Memorandum 
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I. Summary of Strategic Alternatives 

and Management Recommendations
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Credit Availability for Customers/Dealers Is a Prerequisite for Viability Pla

Chrysler LLC Alternatives

I. “Stand Alone”We believe• Chrysler can be viable on a stand 

alone basis in the short/mid term with the following assumptions:

1. The balance sheet is 

restructured to substantially reduce current debt and debt servicing requirements (Page U16-17)

2. Targeted concessions are 

obtained from all constituents (Page 15)

3. Additional U.S. Government 

funding of $5 billion and DOE 136 funding of $6 billion

4. SAAR 

≥ 10.1 million units

• To be viable on a longer term basis, 

we believe it is critical that Chrysler continues to pursue strategic partnerships / consolidation to be both operationally viable (i.e., meet Energy 

and Environmental Regulations) and financially viable (i.e., create an 

acceptable ROI to shareholders and positive NPV).

• In a sustained U.S. industry below 

9.1M SAAR, we believe Chrysler LLC will struggle to be viable and will require an additional restructuring and funding as noted on Page 47.

II. Strategic Partnership/Consolidation

• In all industry scenarios (SAAR levels), 

Chrysler will be more viable, both operationally and financially, with a strategic partner.

• Chrysler has signed a non-binding MOU with 

Fiat that will significantly enhance its viability by creating additional free cash flow over the 2009-16 period, and leverage the advanced powertrain and small car technology that has made Fiat number one in Europe in “low” CO2 

emissions.

• Fiat’s proposal is contingent upon Chrysler 

LLC restructuring its debt, obtaining concessions, and receiving adequate Government funding.

• In a sustained U.S. industry below 9.1M 

SAAR, we believe even with Fiat, Chrysler LLC will struggle to be viable and will require an additional restructuring and funding as noted on Page 47.

• Fiat Alliance would create incremental jobs in 

the U.S. during first 5 years compared with “Stand Alone”.

• There exists further benefits from U.S. 

consolidation but no clear action path with GM (Pages U158-159).

III. Orderly Wind Dow

• If Chrysler LLC is not 

1.Restructure its ba

reduce its liabilitie

2.Negotiate targete

constituents,

3.Receive an addit

infusion from the represented in th

then the only other afile for Chapter 11 as wind down.

• Chrysler LLC would s

financing from both pU.S. Government. Wof the financing need year period (Page 16

• Without adequate DI

the 1st lien lenders w

recovery, the US govcreditors will receive 

• An Orderly Wind Dow

social impact, with 30and its suppliers and 2-3 million jobs could collapse in the wider billion reduction in U.over 3 years (Page 1

Note: “SAAR” as used throughout this document stands for Seasonally Adjusted Annual Rate of Auto Industry Sales in the U.S.
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Management Recommendations

Strategic Choice: Continue “Stand Alone” plan while pursuing an allianceRationale:

1. The larger scale and international reach associated with a potential Fiat alliance will facilita

and preserve U.S. jobs

2. Chrysler has studied three potential partnerships over the past 18 months:

• GM: Best option for U.S. Auto Industry from financial and operational perspective b

table”.

• Nissan: Investigated alliance and not able to pursue.

• Fiat: Submitted a formal non-binding term sheet conditioned upon Chrysler:

1.Restructuring its liabilities2.Obtaining targeted concessions 3.Receiving adequate government funding

• Chrysler will continue to explore further alliance / partnership opportunities if necess

3. If Chrysler is unable to restructure its liabilities and if further government funding is not fort

“Orderly Wind Down” alternative would be pursued, however it may have severe social an

consequences for both Chrysler and the broader U.S. economy

In any restructuring scenario we believe it is imperative that a percenta

equity be retained in a trust (temporarily under control of the President’

to contribute to a new future partner 
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Status of Restructuring Plan / Concessions

– Chrysler has a signed tentative agreement with the UAW with respect to c

compensation, work-rules and severance provisions with U.S. transplants

UAW

Constituent Status Comments

UAW / VEBA – Chrysler has a signed term sheet agreeing to work towards a 50% reduct

Cash Payment Liability (conditioned on satisfactory debt restructuring)

– Chrysler has requested that the UAW continue to work with us on our req

health care payments out of the existing VEBA, and to modify the terms o

agreement incl. the pension pass-through revision and future payment str

Shareholders /2nd Lien 

Debtholders

– Both shareholders (Cerberus and Daimler) have expressed willingness to 

equity, and (ii) convert 100% of their 2nd lien debt for equity

– These concessions are conditioned on a viable plan and overall restructu

Management Actions*

– Reduced Fixed cost down by $3.8 billion 

(27%)

– Reduced unit capacity by 1.3 million (35%)– Reduced headcount by 35,000 (41%)– Completed asset sales of $1.0 billion– Nameplate reduction by 7

– Eliminated retiree life i– Suspended salary mer– Suspended 401(k) mat– Suspended tuition ass– Fully compliant with al

compensation requirem

Dealers – Reduced margins and reimbursement programs totaling $350 million ann

February 2, 2009. Dealer rationalization under “Genesis” program merginall 3 brands under one umbrella

Suppliers – Chrysler requested a 3% price reduction effective April 1. 

Negotiations are in process

Creditors** – Impact of $5 billion of debt and debt service relief required

– Alternatives to be pursued (see Page 17)

GGG

R

GG

Note: * 2008 - 2009 ** Creditors include the U.S. Government, the 1st lien-bank lenders and the UAW / VEBA 

Y
Current Debt 

Structure

Tentative

Concessions

Additional Loan 

Requests

In

Pr

1st Lien – Lenders / Secured $6.9 -- -- 2nd Lien – Cerberus/Daimler / Secured $2.0 $(2.0) -- 3rd Lien – Government / Secured $4.3 -- $5.3 UAW – VEBA Loan / Unsecured $10.6 $(5.3) -- DOE/136 Loan – Government / Secured -- -- $6.0 

TOTALS $23.8 $(7.3) $11.3 

Required Debt and Debt Service Relief from 

above Creditor Groups

(1),(2)

Serviceable Debt TOTAL 

Debt Composition:

Current/Proposed Debt Structure

Deleveraging Of Balance Sheet Is Critical For Viability

Note: 1 – Request of creditor groups could include amortization, maturity and interest rate

2 - Creditor groups include the U.S. Government, the 1st lien-bank lenders and the UAW / VEBA

($Billions)
Illustrative Alternatives To Achieving $5 Billion In 

Liability / Liability Service Reductions

• Alternative 1 – Common Stock Conversion

– The three remaining creditor groups – one or more – could convert total $5 billion of existing liab

common equity

• Alternative 2 – Preferred Stock Conversion

– The three remaining creditor groups – one or more – could convert total $5 billion of existing liab

preferred stock

– The terms could include:

• Long dated maturity with no mandatory prepayment• Dividends paid in-kind (PIK) (non-cash)• Optional redemption by company at discount to par plus PIK 

• Conversion into common stock at maturity at market valuations

• Alternative 3 – Modified Debt Conversion

– The three remaining creditor groups – one or more – could restructure the $5 billion of liabilities 

• The legal priorities of the loans would stay as is currently structured

• Interest would be paid-in-kind (PIK) at the non-default rates currently in place

• Interest would PIK through a longer dated maturity

• No principal amortization would be due until final maturity 

• Prepayment of principal outstanding upon change of control

• Alternative 4 – Cash Out

– The three remaining creditor groups – one or more – could agree to extinguish the $5 billion of li

cash payment in lieu of equity conversion

The above alternatives, if implemented, would result in a viable plan to Chrysler. There may be other altern

result in a viable Chrysler.

Note: - The three remaining creditor groups are the U.S. Government, the 1st lien-bank lenders and the UAW / VEBA

- Alternatives 2 – 4 have not been discussed with the creditor groups 
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Fiat Strategic Alliance Synergy And Benefits Overview

Area Approach Cash Flow Impact

Total ‘09-16 $(Billions)

T

Products/ Platform Sharing 2 million products localized or sold in 

NAFTA and exported to global markets 

$1.4 

Distribution New Chrysler markets adding 393,000 

units, Alfa Romeo distributed in NAFTA

$1.3 

Purchasing Integrate sourcing with Fiat Group $3.2 Other Opportunities Powertrain, Technology, Logistics, SG&A 

Expense, other, Funding for NSCsprovided by Fiat

$1.0 

TOTAL SYNERGIES * $6.9 

Adds 7 New Small Vehicles/Platforms And 6 New Powertrain Combin

To Enhance U.S. Energy Independence And Environmentally 

Sustainable Product Offerings

* Synergies Incremental to Chrysler Only as Calculated by Chrysler ** A strategic alliance could reduce Chrysler’s overall capital requirements and could create additional jobs in the U.S. 

Additionally the alliance would have the potential for better efficiency spending of DOE funds.

Alliance With Fiat Benefits ** 2009 2010 2011 2012 2013 2014 EBITDA Synergy Benefits $0.0 $0.0 $0.3 $1.2 $1.3 $1.5 Cash Synergy Benefits (cumulative) ($0.1) ($0.1) ($0.2) $1.0 $2.4 $3.9 The negative cash impact in the first three years is due to spending approx $1B in new platforms and powertrain technology o
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Next Steps

• Begin discussions with the President’s Designee on terms and conditions to an ov

restructuring. 

• We will seek a response in the near term from creditor groups on their willingness 

$5B in concessions via a liability for equity swap, interest holiday, and/or equivaleservice relief.

• We must find a long term financing solution for our customers and dealers.• If an additional $5B of government funding is received and creditors agree to liabi

restructuring, we will seek Fiat’s concurrence and willingness to continue participa

alliance (management believes it will be decided based upon level of liability reduAdditionally, Chrysler will work diligently to finalize negotiations with all other cons

pursue a simultaneous closing with Fiat, U.S. Treasury, Daimler, Cerberus, the UAcreditors by March 31, 2009.

• If our liabilities are not restructured and U.S. Treasury additional funding is not rec

March 31, 2009, Chrysler LLC will not have ample liquidity to operate and will theforward with Alternative III “Orderly Wind Down” only after appropriate board apprnotification to U.S. Treasury.
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Government Requirement Checklist

Chrysler Is Complying With All Aspects Of The Restructuring Plan Req

Restructuring Plan Requirements in

Loan and Security Agreement dated Dec 31, 2008

Chrysler Execution Status of

Restructuring Plan Requirements 

Submit a Restructuring Plan by Feb 17, 2009 for Chrysler to achieve and sustain:

The Restructuring Plan in this document describes Chrysler’s progress and objectives for:

• long-term viability • growth and profitability 

• international competitiveness • partnering to penetrate offshore markets • energy efficient vehicles • powertrain fuel efficiencies 

The Plan includes specific actions intended to result in:• rationalized costs, capacity, and capitalization with respect to

manufacturing workforce, suppliers, and dealers

• competitive product mix and cost structures• achievement of a positive NPV• achievement of certain milestones• repayment of government financing• compliance with CAFE and emissions standards• production of advanced technology vehicles

Chrysler has been executing a restructuring strategy since Feb2007 that is:• lowering variable and fixed costs through workforce reductio

supplier concessions, and dealer concessions

• creating a vibrant new product pipeline• met positive NPV test• have proposed specific milestones• expanding debt service capacity• meeting efficiency and emissions standards• producing electric and electrified vehicles

Demonstrate Chrysler is undertaking best efforts to: Chrysler has been exercising best efforts and has completed:

• reduce hourly employee compensation to levels competitive 

with U.S. transplants and apply U.S. transplant work rules to employees by Dec 31, 2009

• eliminate non-customary severance pay• pay at least 1⁄2 of VEBA contributions with stock• Reduce unsecured public debt by at least 2/3

• A commitment from the UAW to restructure the VEBA • Wage and benefit reductions and work rule modifications that 

are competitive with the U.S. transplant levels

• Severance benefit reductions , incl. elimination of “Jobs Bank”• Cerberus and Daimler have agreed to convert their 2nd lien d• Chrysler has no public bonds. We have requested the three 

creditor groups set forth on page 15 participate in reducing oudebt and debt service by $5B.

999

Note: The three remaining creditor groups are the U.S. Government, the 1st lien-bank lenders and the UAW / VEBA 
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II. Background and Current State of Indu
Original Request for Chrysler’s $7 Billion Federal Bridge 

Loan was Based Upon the Following Assumptions

• Chrysler based its initial Viability Plan on reasonable assumptions at the time of th

December submission, including the following :

• SAAR levels of 11.1 million and 12.1 million in 2009 and 2010, respectively, a

13.7 million units in 2011 and 2012. (assumptions no longer valid)

• U.S. market share for retail and fleet sales of 10.4% in 2009, increasing to 10

2010 through 2012. 

• Worldwide sales of 1.79 million units in 2009, 1.86 million in 2010, 2.15 millio

2011 and 2.15 million in 2012. (assumptions no longer valid)

• Chrysler to be awarded $6 billion of the $8 billion requested through 2011, fro

DOE 136 funds designated for development of increased fuel-efficient vehicle technology. 

• Chrysler assumed that Chrysler Financial would be viable and could have adequat

financial capacity to support our wholesale shipments and retail sales assumptions 

need a financial company solution to be viable).

• The Viability Plan demonstrated that Chrysler was viable with the requested $7 bil

Federal loan at the assumed SAAR levels. 

• Based on the Viability Plan submission, the Treasury Department approved the loa

request and funded $4 billion of the $7 billion requested.
Timing of Targeted Concessions by year ($4.55 Bil) $1.25 $1.1 $1.

Chrysler Viability Plan Submitted Dec 2, 2008

Key Metrics and Assumptions

1) Viability Plan concessions have been reflected in Fixed Costs, EBITDA and Cash Flow (2008 actual does not include impa

2) Cash year-end balance for 2008 was ($0.6 B) lower due to Mexico wholesale issue and Daimler payment issue (which we 3) Includes $7.0 billion of Government funding in January 20094) Includes $1.0 billion principal payment to the U.S. Government at 12/31/2012

2008 2009 2010 20

Unaudited Plan Plan P

Actuals

● U.S. Industry SAAR (Millions) Light Duty Only 13.2 11.1 12.1 13● Worldwide Shipments (000 units) 2,065 1,727 1,938 2,3● U.S. Market Share (Retail & Fleet) 10.8% 10.4% 10.7% 10● U.S. Dealer Inventory (000 units) 398 355 312 3● U.S. Days Supply 157 121 98 8● MCM Savings (1.1%) 0.25% 0.25% 0.2● Net Pricing (1.0%) (0.5%) (0.5%) (0.5● Capex (Bils) $2.3 $2.3 $2.3 $2● Fixed Cost including VEBA (Bils)1) $10.9 $9.2 $8.1 $1● EBITDA (Bils)1) $0.3 $3.3 $5.6 $4● Cash - Year End Balance (Bils) 2.52) 7.53) 9.83) 11
Aggressive Restructuring Will Reduce Chrysler’s 

Fixed Costs by $3.8 Billion by 2009

• Significant restructuring actions have already been initiated and cash savings are currently 

Beginning in 2007, Chrysler acted swiftly to reduce fixed costs. Today, the Company’s fixed lowest level since 1994.

• Further restructuring actions continue, and through 2009 fixed costs will have been reduced 

Chrysler has eliminated more than 1.3 million units (over 30%) of production capacity, reduc

by 35,000 people, and discontinued 7 vehicle models.

• In addition to reducing overall manpower, Chrysler reduced fixed costs through:

• overtime reduction; • plant closures; • improved asset utilization; • program deferrals and cancellations; • organization restructuring and right-sizing; • healthcare actions related to active and retired employees; • greater information technology efficiencies; and G&A/manpower improvements.

• Despite challenging market conditions, Chrysler met or exceeded its operating plan through 

2008, and increased manufacturing productivity to become the most efficient auto manufactAmerica. 

• Chrysler also continued to invest in product including four major production launches and th

three all new electric vehicle prototypes in 2008.
645

536

428 398

0

100200300400500600700

Jun-06 2006 YE 2007 2008

Chrysler’s Transformation Effort Had Already Begun Prior To The Current Industry Crisis

Workforce Redu

64.9 62.7 61.0 

21.8 22.1 21.5

4.3 4.5 4.5

2004 2005 2006 2

SalaryHourlyTotal Workforce(000s)Supplemental

87.0

91.0 89.3

Fixed Cost Trend

2004 2005* 2006 2007 2008 2009

$16.0 B

$10.9 B

$14.0 B $14.8 B $14.3 B

* 2005 excludes impact from sale of Arizona Proving Grounds

US Dealer Year End Inventory Units (000s)

Annual Actuals

Annual Actuals

(except June 2006)

Annual Actua

40.6

37.423

202530354045505560

1996 1997 1998 1999 2000 2001 2002 2003 

Manufacturing Pro

Harbour Act

(Assembly, Stamping, Engine 

-$3.8B

-247K

$10.2B 

Target 

Hours Per Vehicle 

”Recovery and Recovery and

Transformation Transformation Plan”
Broad Economic Decline Has Negatively Affected 

Business And Consumer Spending

• Since our submission on December 2, 2008, the U.S. and worldwide economy ha

an unprecedented meltdown.

• Personal Wealth, as measured by stock prices and home values, has declined sig

• The DJIA declined 11.1% from December 8, 2008 through February 11, 200• Average home prices/values declined 6% from August 2008 through Novem

recent reported data).

• Unemployment rates have continued to increase as companies announced layoff

high levels: January job loss of 598,000 and U.S. unemployment of 7.6% represesince 1992.

• These factors have driven consumer confidence to levels never seen before.

• Credit markets continue to be locked down – both to the consumer and business 

customer.

• As a result of the continued decline in SAAR levels in December and the continue

availability, the financial health of the dealer network and supply chain has contin

• The number of financially troubled dealers has increased 5% in the past 2 m• The number of potentially troubled suppliers has also risen 11.6% since Oct

Suppliers that provide nearly 22% of our materials are identified as troubled
20% 22

3,372 3,

10%20%30%40%

Sep '08 Oc

7,7508,0008,2508,5008,7509,0009,250

8-Dec 29-Dec 19-Jan 9-Feb

DJIA Closing Value

175.57

172.04

168.68

165.61 163.46

160.32

157.17

154.18

140145150155160165170175180

Aug '08 Sep '08 Oct '08 Nov '08

S&P/Case-Shiller Home Price Index

Composite-10

Composite-20

U.S. Unemployment Rate

1,547

824 

400600800

1,0001,2001,4001,600

Sep '0

U.S. Housing 

6.2%

6.6%

6.8%

7.2%

7.6%

6.0%6.5%7.0%7.5%8.0%

Sep '08 Oct '08 Nov '08 Dec '08 Jan '09

Chrysler Suppliers in Trouble (Chrysler Assessment – % of Total AVOB) Chrysler Dea

(Chrysler Assessment 

“High Risk”AVOB = $2.3B“Risk”AVOB = $2.1B“Concern”AVOB = $2.2B

“SAAR” = Seasonally Adjusted Annual Rate“AVOB” = Annual Volume of Business (i.e., purchases)

Total TroubledAVOB = $6.6B

10.2%

17.4% 19.3%

20.6%

1960-2007Monthly Avg.

11.1% Decline in 2 Months Steady Drop since 2Q ‘06 Rate is ~1/3 

Highest Rate in Nearly 17 Years Exposure Up; Risk Profile Worse Fundament

Netw

“We

-74 D

Due to Decreasing Consumer Confidence, Intent to Purchase Has Taken a 

21.8%

Extremely Depressed Economic Fundamentals Continued To Deteriorate At Increasing Rate Over Last 2 Months
Financial Market Woes Infect Auto Financing System 

• Vehicle financing is generally syndicated through asset backed security (“ABS”) 

which provide liquidity to the automotive financing companies.

• Market conditions have caused credit markets to seize up and there has been a 

in ABS deals.

• Auto related ABS issuances have declined to nearly zero by the 2nd half of 

• Auto leasing essentially ended over-night resulting in lost sales volume of 2

• Additionally, the lack of financing availability has affected automotive dealers in t

• Lack of retail financing availability has directly reduced their consumer sale• Lack of floor plan financing has reduced all dealers’ ability to order new car

inventory.

• Both of these factors combine to lower Chrysler’s sales.
Credit Crisis Strangling U.S. Auto Industry

Issuan

Asset Bac

$(

... which Sh

for 

$1,224

2006 

... And Credit Is Difficult To Secure For Those Who Want To Purch

... and Increasing Repos Hurt Lenders ...

1.3 1.5 1.7

$10.3

$10.5

$10.7

$10.0$10.2$10.4$10.6$10.8

0.00.51.01.52.02.5

2006 2007 2008

# of Repos (Millions)

Repossessions

6.8%

11.6%

15.9%

0%5%

10%15%20%

2006 2007 2008

Delinquency Rates are Soaring ...

Delinquency Rates

Percent (%)

95%

85%

5%

15%

75%80%85%90%95%

100%

2007 2008

Auto Loan Interest Spread Over Commercial Paper Rate

Basis Points

Auto Loan-% of Down Payment

... Leading to Higher Borrowing Costs ... ...and Higher Down Payment Requirements ..

28

650

130

1,100

0

200400600800

1,0001,200

2007 2008

RetailWholesale Percent 

of 

Purchased 

Price

Auto 

Loans

Down 

Payment

73%

30%40%50%60%70%80%

Dec

'07

Feb

'08

Ap

'08

Chrysler Fin

Financing 

... and therefore C

Down 25% Point
• Automotive sales have continued to decline to levels not seen in over 40 years.

• As shown below, the decline in SAAR levels in 2008 has been at an unprecedented pace

– dropping 5.8 million units from 15.6 million in January 2008 to a 9.8 million monthly 

annualized rate in January 2009. 

• For Chrysler, this equates to a 580,000 unit decline (at a 10% market share) and approxima

$14 billion in lost revenue in less than 12 months. 

• This unprecedented decline in revenue created a near-term liquidity trough.

Ford and GM’s pension liabilities also are putting stress on the government. The Pension Benefit Guarabails out failed retirement programs, estimated that the U.S. plans had a collective $47 billion deficit last of that shortfall came from manufacturers including automakers and parts suppliers. The PBGC said it hbankrupt auto-parts companies since 2005 to keep their plans from failing, and took control of the retirempartsmaker Collins & Aikman Corp. after it went bankrupt in 2007. 

Auto Sales Declined Globally for all Major Automakers
U.S. Auto Industry Sales History

Units (Millions)

2009 Forecast Is Lowest Level In Over 40 Years

9.5

10.910.6

9.9

11.411.5

10.3

12.2

13.6

14.4

11.6

11.1

13.3

14.9

15.4

14.2

11.5

10.810.5

12.3

14.5

15.7

16.3

15.2

15.8

14.8

14.1

12.5

13.1

14.2

15.415.115.515.5

16.0

17.417.817.51

0.02.04.06.08.0

10.012.014.016.018.020.0

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01
Automakers Historically Operate With Negative 

Working Capital

 Automakers are paid immediately after vehicles are shipped from their

plants (financial institution draft)

 Automakers typically have 45 – 50 days to pay suppliers for materials Therefore:

Production/Shipments

Automaker Cash Balance

Production/

Shipments

Automaker

Cash Balance

A Total Of ~$50B Cash Drain For The Detroit Three In 2008

Jan 

Jan Dec

Normal Environment Current Environment
17.2 17.1

16.7 16.6 16.4

15.9

15.8

16.2

16.7

16.416.1

16.6

15.6 15.6

15.4

14.8

14.6

13.9

12.6

13.9

12.8

1

9.0

10.0

11.0

12.013.014.015.016.017.018.0

SAAR

2007 2008

2007 C.Y.: 

16.5

Jan-Jun ‘08: 

15.0

6.4 Million Unit Net Reduction 2008 C.Y.: 13.2

Units (Millions)

640K units lost, 640K units lost, 

approx. $15.5B approx. $15.5B 

in lost revenue in lost revenue

for Chrysler for Chrysler

Dramatic Drop in SAAR(Includes Light, Medium and Heavy Duty)

2009 CYAverageest. 10.1M

2007 CYAverage16.5M
• The weakened economy and lack of financing to customers and dealers has s

reduced SAAR levels to unprecedented levels not seen since 1963. In preparrestructuring plan Chrysler evaluated 5 potential SAAR levels

Other assumptions include the following: 

• Additional $5.0 billion in liability and interest relief.• 100% of 2nd lien debt converted to equity

• $5.3 billion of union VEBA restructured / $5.3 billion converted to equity

Original RequestCurrent Request

With Government Support, A “Stand Alone”Chrysler Can Be Viable

U.S. Seasonally Adjusted Annual Car and Light Truck Pr

Scenario 2009 2010 2011 2012 2013 2014 

A 11.1 12.1 13.7 13.7 13.7 13.7 B 10.1 11.1 12.7 12.7 12.7 12.7 C 10.1 10.6 11.1 11.6 12.1 12.6 D 10.1 10.1 10.1 10.1 11.1 12.1 E 9.1 9.1 9.1 9.1 11.1 12.1 
Industry No Longer Viable 

As Currently Structured

7.68.18.69.19.6

10.110.6

11.111.6

12.112.6

$0B $2B $4B $6B $8B

Chrysler’s Short-term Cash Needs Accelerate as the SAAR Declines 

Average SAAR 2009 – 2012Units (Millions)

Scenario D

- Incremental $4 Billion

Total $11 Billion

Scenario A/B Request of $7 Billion

- $4 Billion Received

- $3 Billion Pending

$7 Billion Total

Scenario C (Base Plan)

- Incremental $2 Billion

$9 Billion Total

Chrysler LLC Incremental Liquidity Requests 

(in $Billions)

Scenario E

- Incremental $6 Billion

Total: $13 Billion

Dec. ’08 

(10.7M)

Jan.’08 

(9.8M)

What We Ne

Funding Received To Approval of Pending FAdd. New Funding Re

TOTAL FUNDING: 
Blank
III. Restructuring Plan Assumptions and Risks
Additional Cash Required to Address 

Risks to Restructuring Plan

• Deteriorating economic conditions, including liquidity crisis in the credit markets 

consumer confidence in the Company’s primary markets, present significant risRestructuring Plan.

• In addition to the major risks of credit availability, supplier solvency, talent attriti

industry instability – the following risk factors are constantly being addressed to Company’s long-term viability:

• Price Erosion – requires increases in vehicle discounts in response to co

pressures

• Product Mix – accelerated shift in demand away from trucks and SUV’s

• Market Share – potential erosion of Chrysler’s domestic market share po

competitors

• Compliance Costs – increased operating costs due to increasing regulati

• Dealer Insolvency – increases in dealer bankruptcies limiting new vehicle 
Risks to Key Assumptions in Restructuring Plan

• Erosion of consumer confidence and buying power• Credit unavailability / lack of affordable financing for dealers and 

consumers 

• Supplier insolvencies / Supply chain disruptions / Demand for upfr

payments

• Departure of key management talent and recruitment of critical ski

workers (due to compensation limitations)

• Industry instability due to failure of major domestic competitor• Going concern opinion from outside auditors

Mitigating These Risks Are Essential to the Achievement of Restructu
Blank
IV. Financial Business Plan
Blank
Notes: - Year-end cash balance reflects the impact of VEBA conversion to equity and lower First Lien debt balance, and also revised loan request of 

U.S. Treasury of $5.0 B in baseline scenario (in green), $7.0 B in scenario highlighted in purple, and $9.0 B in scenario highlighted in pink.

- Excludes Canadian leasing debt and other financial liabilities, and assumes no Pension Fund contributions after 2011- Numbers may not add due to rounding

CURRENT REQUEST

Chrysler “Stand Alone” Business PlanSAAR Sensitivities

Origina

Original Viability Plan SAAR Volumes Receive

$ 

4

SAAR (Mils) - Light Duty Only 11.1 12.1 13.7 13.7 13.7 13.7 13.7 13.7

EBITDA (Bils) 3.3 $ 5.6 $ 4.9 $ 4.7 $ 18.6 $ 5.0 $ 5.1 $ 5.4 $ 5.6 $ 39.8 $ 

Cash - Year-end Balance (Bils) 8.0 $ 10.5 $ 12.3 $ 13.6 $ 13.6 $ 14.0 $ 14.5 $ 15.4 $ 16.5 $ 16.5 $ 

Ending Debt Balance 14.8 $ 16.3 $ 17.9 $ 17.9 $ 16.4 $ 14.9 $ 13.3 $ 11.6 $ 

Original Viability Plan with 1.0 million SAAR Reduction $ 

4

SAAR (Mils) - Light Duty Only 10.1 11.1 12.7 12.7 12.7 12.7 12.7 12.7

EBITDA (Bils) 2.9 $ 5.2 $ 4.5 $ 4.3 $ 17.0 $ 4.6 $ 4.7 $ 5.0 $ 5.2 $ 36.6 $ 

Cash - Year-end Balance (Bils) 7.1 $ 9.3 $ 10.7 $ 11.6 $ 11.6 $ 11.6 $ 11.7 $ 12.2 $ 12.9 $ 12.9 $ 

Ending Debt Balance 14.8 $ 16.3 $ 17.9 $ 17.9 $ 16.4 $ 14.9 $ 13.3 $ 11.6 $ 

10.1 SAAR Washington Plan SensitivityWith 0.5 Million Units Growth $ 

4

SAAR (Mils) - Light Duty Only 10.1 10.6 11.1 11.6 12.1 12.6 13.1 13.7

EBITDA (Bils) 2.9 $ 5.0 $ 3.9 $ 3.9 $ 15.7 $ 4.4 $ 4.7 $ 5.2 $ 5.6 $ 35.6 $ 

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

Ending Debt Balance 16.9 $ 18.4 $ 20.0 $ 20.0 $ 18.5 $ 17.0 $ 15.4 $ 13.7 $ 

10.1 SAAR Washington Plan SensitivityThrough 2012 $ 

4

SAAR (Mils) - Light Duty Only 10.1 10.1 10.1 10.1 11.1 12.1 13.1 13.7

EBITDA (Bils) 2.9 $ 4.8 $ 3.5 $ 3.3 $ 14.6 $ 4.0 $ 4.5 $ 5.2 $ 5.6 $ 34.0 $ 

Cash - Year-end Balance (Bils) 10.9 $ 12.0 $ 11.6 $ 11.3 $ 11.3 $ 10.9 $ 10.9 $ 11.8 $ 12.9 $ 12.9 $ 

Ending Debt Balance 19.0 $ 20.5 $ 22.1 $ 22.1 $ 20.6 $ 19.1 $ 17.5 $ 15.8 $ 

9.1 SAAR Washington Plan SensitivityThrough 2012 $ 

4

SAAR (Mils) - Light Duty Only 9.1 9.1 9.1 9.1 11.1 12.1 13.1 13.7

EBITDA (Bils) 2.5 $ 4.4 $ 3.1 $ 2.9 $ 13.0 $ 4.0 $ 4.5 $ 5.2 $ 5.6 $ 32.4 $ 

Cash - Year-end Balance (Bils) 12.0 $ 12.6 $ 11.7 $ 10.8 $ 10.8 $ 10.8 $ 10.7 $ 11.5 $ 12.4 $ 12.4 $ 

Ending Debt Balance 21.2 $ 22.7 $ 24.3 $ 24.3 $ 22.8 $ 21.3 $ 19.7 $ 18.0 $ 

2009 2010 2011 2012 Sub Total 2009- 2012 Total 2009-2016

2009 2010 2011 2012 Sub Total 2009- 2012

2013 2014 2015 2016

Total

2009-2016

2009 2010 2011 2012 Sub Total 2009- 2012

2013 2014 2015 2016

2016 Total 2009-2016

2009 2010 2011 2012 Sub Total 2009- 2012

Sub Total 2009-

2012

2013 2014 2015

2009 2010 2011 2012 Total 2009-2016

2013 2014 2015 2016 Total 2009-20162013 2014 2015 2016

AB

CD

E

($ Billions)

Diminishing SAAR Increases Liquidity Needs
Chrysler “Stand Alone” Business Plan 

Core Assumptions

* Represents 70% of requested amount

These are the assumptions included as a part of our Plan that still need to be • $5 billion of additional liability relief from creditor groups• A permanent funding solution for Chrysler Financial• UAW retiree health care payments paid out of existing VEBA 

in 2009 ($0.9 in 2009, Full Liability Transfers to UAW in 2010)

• Deferral of VEBA lump-sum repayment currently scheduled

in 2010 until 2011 and beyond (assumes 50%, or $5.3, converted to debt)

• Renegotiate UAW VEBA Pension Plan amendment ($0.8 reduction)• Assumes Government Funding of $9.0 ($4 billion received today)• DOE Advanced Technology Funding* received in:

– 2010 - $2.5 – 2011 - $2.0 – 2012 - $1.5 

($ Billions)
1) Viability Plan concessions have been reflected in Fixed Costs, EBITDA and Cash Flow

2) Cash year-end balance for 2008 was ($0.6 B) lower due to Mexico wholesale issue and Daimler payment issue (which we b3) Includes Government funding in January and April 20094) Includes principal payments to the U.S. Government beginning in 2012Note: Numbers may not add due to rounding

Chrysler NPV = $17.3B 

2008 2009 2010 2011 2012 2013 2014 

Unaudited Plan Plan Plan Plan Plan Plan 

Actuals 

● U.S. Industry SAAR (Millions) Light Duty Only 13.2 10.1 10.6 11.1 11.6 12.1 12.6 ● Worldwide Shipments (000 units) 2,065 1,618 1,775 2,085 2,120 2,175 2,227 ● U.S. Market Share (Retail & Fleet) 10.8% 10.4% 10.7% 10.7% 10.7% 10.7% 10.7% ● U.S. Dealer Inventory (000 units) 398 355 312 306 306 306 306 ● MCM Savings (1.1%) 0.25% 0.25% 0.25% 0.25% 0.50% 0.50% ● Net Pricing (1.0%) (0.5%) (0.5%) (0.5%) (0.5%) (0.25%) (0.25%● Capex (Bils) $2.3 $2.3 $2.3 $2.6 $2.6 $2.6 $2.5 ● Fixed Cost excluding VEBA (Bils) 1) $10.9 $10.2 $10.2 $10.2 $10.2 $10.1 $10.1 ● EBITDA (Bils) 1) $0.3 $2.9 $5.0 $3.9 $3.9 $4.4 $4.7 ● Cash - Year End Balance (Bils) 2.5 2) 9.03) $10.6 $10.8 11.4 4) 11.3 4) 11.4 

Chrysler “Stand Alone” Business Plan Key Metrics and Assumptions 
Blank
Chrysler “Stand Alone” Business Plan 

Income Statement 

* Includes non-cash accounting gain from VEBA settlement as part of 2007 UAW agreement

Note: - The company is proposing an EBITDA milestone to be tested on a monthly basis through 2010 and on a yearly basis th

- Numbers may not add due to rounding

($ Billions)

Actuals

Unaudited

2008 2009 2010 2011 2012 2013 201

Gross Revenue 55.9 45.2 48.4 54.6 55.3 56.5 57

 

Incentives (8.3) (6.1) (6.5) (7.3) (7.4) (7.6) (7

 

Net Revenue $47.6 $39.1 $41.9 $47.3 $47.9 $48.9 $49Variable Cost (39.4) (29.9) (31.9) (36.1) (36.6) (37.3) (38

 

Variable Profit $8.2 $9.2 $10.0 $11.2 $11.3 $11.6 $1Fixed Cost (10.5) (9.2) (8.1) (10.2) (10.2) (10.1) (10

 

Operating Profit ($2.3) $0.0 $2.0 $1.0 $1.0 $1.5 $1Pension-OPEB Non-operating/Other (0.4) (0.3) (0.2) (0.2) (0.2) (0.2) (0

 

Earnings/(Loss) Before Interest & Taxes ($2.7) ($0.3) $1.8 $0.8 $0.8 $1.3 $1Depreciation & Amortization (D&A) 3.0 3.2 3.2 3.1 3.1 3.1 3

 

EBITDA including VEBA impact $0.3 $2.9 $5.0 $3.9 $3.9 $4.4 $4Depreciation & Amortization (D&A) (3.0) (3.2) (3.2) (3.1) (3.1) (3.1) (3

 

Restructuring & Other Adjustments (4.2) - - - - - - 

Net Interest Income/Expense (0.9) (0.6) (1.0) (1.1) (1.1) (1.0) (0

 

Earnings/(Loss) Before Taxes ($7.8) ($0.9) $0.8 ($0.3) ($0.3) $0.3 $0

Taxes (0.2) (0.2) (0.2) (0.3) (0.3) (0.3) (0

 

Net Income/(Loss) ($8.0) ($1.1) $0.6 ($0.6) ($0.6) $0.0 $0

Plan

* * *
Chrysler “Stand Alone” Business Plan

2008 CY Unrestricted Cash Walk

* Actual 12/31/08 cash balance $1.9B. Decrease due to payments withheld by Daimler at YE and Chrysler having to provide whoNote: - In November 2007 repaid first lien creditors $3 billion

- Numbers may not add due to rounding

($ Billions)

NonCash 

Items in 

EBITDA

Working Capital 

& Other 

(primarily due to 

volume)

$9.5

12/31/07 

Cash 

Balance

EBITDA Capex Restructuring 

Payments

($0.9)

($0.6)

$2.0

$

($2.3)

($7.0) / ($7.6) *

$0.3

($0.9)

Debt Service, 

Taxes & 

Pension/OPEB

($5.7)

$0.5

VEBA 

Recovery 2nd Lien Draw

SAAR volume reducti

5.8M units and assoc

restructuring results in 

billion one-time cash 
Chrysler “Stand Alone” Business Plan

2008 – 2012 CY Unrestricted Cash Walk

12/31/08 

Cash 

Balance

Healthcare 

Pmt 

Recovery 

& Asset 

Sales

EBITDA 12/31/09 

Cash 

Balance

Capex Restructuring UST Borrowing Non-Cash VEBA 

Gains

Working 

Capital 

& Other

Debt 

Service, 

Taxes, 

OPEB/ 

Pension & 

Other

$2.5*

($1.2)

($1.0)

$1.3

$9.0

$9.0

$2.9

($2.3)

($1.6) ($0.6)

12/31/09 

Cash 

Balance

EBITDA 

Capex Restructuring Non-Cash VEBA 

Gains

De

Serv

Tax

OPE

Pens

Oth

$9.0

$5.0 ($2.4)

($2.3)

($0.6)

($1

12/31/10 

Cash 

Balance

EBITDA 12/31/11 

Cash 

Balance

Capex Restructuring Working Capital, 

Asset 

Sales & 

Other

Debt 

Service, 

Taxes, 

OPEB/ 

Pension & 

Other

$10.6

$3.9 ($2.6)

($0.6) ($3.4)

$0.9

$10.8

12/31/11 

Cash 

Balance

EBITDA 

Capex W

Ca

A

Sa

O

Debt 

Service, 

Taxes, 

OPEB/ 

Pension & 

Other

$10.8

$3.9 ($2.6)

($2.8)

2008-2009 2009-20102010-2011 2011-2012

DoE

Borrowing

$2.0

*Actual 12/31/08 Cash $1.9B

($ Billions)
Chrysler “Stand Alone” Business Plan 

NPV Summary 

($ Billions)

Note: - Numbers may not add due to rounding 

2009 2010 2011 2012 2013 2014 

Free Cash Flows to Equity $ 1.7 6.5 $ 0.1 $ 0.6 $ (0.1) $ 0

$ 

Terminal Value

EBITDA at 2016 5.6 $ Multiple 5.0Terminal 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 7.5NPV 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 $ 

Methodology Used in Calculating Net Present Value:Net Present Value as of January 1, 2009, is calculated as the discounted sum of a) the free cash flows through 2016 afteexpenditures for debt, interest, taxes, and capital investments and b) the terminal value cash flow in 2016, net of debts ouunrestricted cash in the company on January 1, 2009. The discount rate applied to a) and b) is the required return for thiyear term.

NPV Discount Rates
Chrysler “Stand Alone” Business Plan

Cash Flow Statement

* Actual 12/31/08 Cash $1.9B. Decrease due to payments withheld by Daimler at YE and Chrysler having to provide wholesale f** Plan includes pension fund contributions of $2.4B through 2012. No contributions are included for the 2013 through 2016 perio

capital market conditions, potential additional contributions could range from $1B to $5B. 

Note: - Numbers may not add due to rounding

- Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either re

maturity dates or their maturity dates are consensually extended

** *

($ Billions)

2009 2010 2011 2012 2013 2

Beginning Cash $2.5 * $9.0 $10.6 $10.8 $11.4 $Cash Flows from Operating ActivitiesNet Income ($1.1) $0.6 ($0.6) ($0.6) ($0.0) Depreciation & Amortization 3.2 3.2 3.1 3.1 3.1 

 

Non-cash Write-down of Goodwill & IntangiblesNon-cash VEBA Gains (2.4) (1.2) - - - 

 

Change in Net Working Capital 0.9 (0.7) 0.9 0.4 0.6 

 

Change in Net Other Operating Assets / Liabilities (10.4) (1.4) (2.4) 0.0 (0.1) Cash (Used) / Provided by Operations ($1.2) ($8.1) $1.0 $2.9 $3.6 Cash Flows from Investing ActivitiesCapital Expenditures (excl DOE) ($2.3) ($2.3) ($2.6) ($2.6) ($2.6) DOE related Capital Expenditures - - - - - 

 

Asset Sales 0.2 0.4 0.2 0.2 0.4 Cash (Used) / Provided from Investing ($1.9) ($2.1) ($2.4) ($2.4) ($2.2) Cash Flows from Financing ActivitiesPrincipal Changes ($0.0) $0.0 $0.0 ($1.0) ($1.0) Liability Conversion (6.9) - - - - 

 

Equity Contributions 5.1 6.9 - - - 

 

U.S. Treasury / DOE Sec.136 Funding 2.5 9.6 2.0 1.5 - 

 

VEBA Note / (Principal Payments) 4.3 - (0.4) (0.5) (0.5) Cash (Used) / Provided from Financing $9.6 $11.9 $1.6 $0.0 ($1.5) Net Increase / (Decrease) in Cash $6.5 $1.7 $0.1 $0.6 ($0.1) Ending Cash $9.0 $10.6 $10.8 $11.4 $11.3 $
Chrysler “Stand Alone” Business PlanBalance Sheet

The Liability Concessions Significantly Reduce The Company’s Leve

Improving The Near Term And Long Term Viability

($ Billions) 2009 2010 2011 2012 2013 2014 2015 2016 Plan Plan Plan Plan Plan Plan Plan Plan

U.S. SAAR (Millions) 10.6 10.1 11.1 11.6 12.1 12.6 13.1 13.7

EBITDA $ 5.0 2.9 $ 3.9 $ 3.9 $ 4.4 $ 4.7 $ 5.2 $ 5.6 $ 

Debt1st Lien Debt (a) 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 6.9 $ 

U.S. Treasury & DOE sec. 136 (a) 9.6 12.1 14.1 15.6 15.6 15.6 15.6 15.6

Principal Amortizations (1.0) (2.0) (3.0) (4.0) (5.0)

VEBA Note (a) 5.3 4.3 3.9 3.4 2.9 2.4 1.8 1.1

Sub total Debt 21.8 23.3 24.9 24.9 23.4 21.9 20.3 18.6

Liability Conversion (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) (4.9)

Total Debt 16.9 $ 18.4 $ 20.0 $ 20.0 $ 18.5 $ 17.0 $ 15.4 $ 13.7 $ 

Net Debt (Debt - Cash)Total Debt - before Liability Conversion 21.8 $ 23.3 $ 24.9 $ 24.9 $ 23.4 $ 21.9 $ 20.3 $ 18.6 $ 

Cash - Year-end Balance (b) 1.0 2.6 2.8 3.4 3.3 3.4 4.2 5.4

Net Debt - before Liability Conversion 20.8 $ 20.7 $ 22.1 $ 21.5 $ 20.1 $ 18.5 $ 16.1 $ 13.2 $ 

Net Debt - after Liability ConversionTotal Debt - after Liability Conversion 16.9 $ 18.4 $ 20.0 $ 20.0 $ 18.5 $ 17.0 $ 15.4 $ 13.7 $ 

Cash - Year-end Balance (b) 1.0 2.6 2.8 3.4 3.3 3.4 4.2 5.4

Net Debt - after Liability Conversion 15.9 $ 15.8 $ 17.2 $ 16.6 $ 15.2 $ 13.6 $ 11.2 $ 8.3 $ 

Leverage (Debt/EBITDA)Before Liability Conversion 7.5 x 4.7 x 6.4 x 6.4 x 5.3 x 4.7 x 3.9 x 3.3 xAfter Liability Conversion 5.8 x 3.7 x 5.1 x 5.1 x 4.2 x 3.6 x 3.0 x 2.4 xNet Leverage (Net Debt/EBITDA)Before Liability Conversion 7.2 x 4.1 x 5.7 x 5.5 x 4.6 x 3.9 x 3.1 x 2.4 xAfter Liability Conversion 5.5 x 3.2 x 4.4 x 4.3 x 3.5 x 2.9 x 2.2 x 1.5 x(a) Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at existing 

maturity dates or their maturity dates are consensually extended

(b) Reflects projected year-end cash in excess of $8 billion assumed needed for operations.
Chrysler “Stand Alone” Business Plan

Balance Sheet

($ Billions)

Note: - All subject to final 2008 audit

- The company will propose balance sheet related milestones in connection with the final restructuring plan- Numbers may not add due to rounding- Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at existing maturity 

dates are consensually extended 

2009 2010 2011 2012 2013 2014 

AssetsCash $9.0 $10.6 $10.8 $11.4 $11.3 $11.4 Restricted Cash / Investments 2.3 2.3 2.1 2.1 2.1 2.1 

 

Trade Receivables 1.3 1.3 1.4 1.3 1.3 1.2 

 

Inventory 3.8 4.0 4.5 4.5 4.5 4.5 

 

Other Current Assets 2.9 3.0 3.2 3.2 3.2 3.2 

Subtotal Current Assets 19.3 21.2 22.0 22.5 22.4 22.4 

 

Operating Leases 1.1 1.2 1.5 1.5 1.5 1.6 

 

Gold Key Lease Assets 2.3 0.3 - - - - 

 

Deferred Tax Assets 1.0 1.0 1.0 1.0 1.0 1.0 

 

Property, Plant & Equipment 14.5 13.4 12.7 12.0 11.1 10.1 

 

Goodwill & Intangibles 11.3 11.3 11.3 11.3 11.3 11.3 

 

Prepaid Pension 0.9 0.2 - (0.2) (0.2) (0.2) 

 

Other Long-Term Assets 1.0 1.1 1.2 1.2 1.2 1.2 

Subtotal Long-Term Assets 28.5 32.1 27.7 26.8 25.9 25.0 

Total Assets $51.4 $49.7 $49.7 $49.3 $48.3 $47.4 Liabilities & Member's InterestTrade Payables $6.0 $6.3 $7.2 $7.4 $7.8 $7.9 Other Current Liabilities 4.1 5.0 5.8 5.9 6.1 6.2 

Subtotal Current Liabilities 10.1 11.3 13.0 13.3 13.9 14.1 

 

OPEB Liability 7.9 3.8 3.8 3.8 3.8 3.9 

 

Pension Liability 2.8 2.5 1.0 0.8 0.8 0.8 

 

Deferred Tax Liabilities 0.3 0.3 0.3 0.3 0.3 0.3 

 

Restructuring Accruals 1.5 0.9 0.3 0.3 0.2 0.2 

 

Other Long-Term Liabilities 8.0 8.5 8.7 8.7 8.7 8.7 

Subtotal Long-Term Liabilities 20.5 16.0 14.1 13.9 13.8 13.9 

 

1st & 2nd Lien Debt 6.9 6.9 6.9 6.9 6.9 6.9 

 

U.S. Treasury & DOE Sec.136 9.6 12.1 14.1 15.6 15.6 15.6 

 

Principal Amortizations - - - (1.0) (2.0) (3.0) 

 

VEBA Note 5.3 4.3 3.9 3.4 2.9 2.4  Subtotal Debt 21.8 23.3 24.9 24.9 23.4 21.9 

 

Liability Conversion (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) 

 Net Debt 16.9 18.4 20.0 20.0 18.5 17.0 

 

Gold Key Lease Debt 2.6 0.5 - - - - 

 

Other Financial Liabilities 1.3 1.3 1.3 1.3 1.3 1.3 

 

Member's Interest - 2.2 1.3 0.7 0.7 1.1 

Total Liabilities & Member's Interest $51.4 $49.7 $49.7 $49.3 $48.3 $47.4 
Blank
(000’s units)

Chrysler “Stand Alone” Business Plan Sales by Market 

Units % Units % Units % 

U.S. Retail (excl. Contract) 817.0 51% 859.8 50% 897.8 48% 

U.S. Fleet 265.0 17% 306.6 18% 322.1 17% Canada 206.0 13% 196.0 12% 196.8 10% Mexico 120.0 7% 122.2 7% 126.9 7% International 189.3 12% 212.8 13% 326.2 17% Overseas Military Sales Corp. 5.7 0% 5.4 0% 5.3 0% Contract Manufacturing - 0% - 0% - 0% Total Worldwide Sales 1,603.0 100% 1,702.7 100% 1,874.9 100% 

2010

Plan

2009

Plan

2011 

Plan 

Note: Numbers may not add due to rounding 
Blank
(000’s units)

Units % Units % Units % 

U.S. Retail (excl. Contract) 767.0 47% 816.4 46% 892.2 43% 

U.S. Fleet 265.0 16% 306.6 17% 322.1 15% Canada 196.7 12% 188.2 11% 191.1 9% Mexico 122.0 8% 122.3 7% 124.7 6% International 184.1 11% 220.0 12% 331.8 16% Overseas Military Sales Corp. 5.7 0% 5.4 0% 5.3 0% Contract Manufacturing 77.7 5% 116.4 7% 217.4 10% Total Worldwide Shipments 1,618.2 100% 1,775.3 100% 2,084.6 100% 

2011

Plan

2010

Plan

2009

Plan

Chrysler “Stand Alone” Business Plan Shipments by Market 

Note: Numbers may not add due to rounding 
Blank
($ Billions)

$3.1

$0.7

Chrysler “Stand Alone” Fixed Cost Reduction Trend2006 - 2012 CY (Before VEBA Impact)

$6,304

$5,746

$4,894

F 

ixed

Cost

per

Unit

1,618 1,775 2,085 

Shipments

(units

000’s
Blank
2009 CY and 2010 CY Chrysler 

“Stand Alone” Business PlanCalendar Year Details
Blank
Jan Feb Mar 1Q Apr May Jun 2Q Jul Aug Sep 3Q Oct 

Gross Revenue 1.1 3.6 4.4 9.1 4.0 4.0 3.9 11.8 3.7 4.2 4.3 12.2 4.3 

 

Incentives (0.2) (0.5) (0.6) (1.2) (0.5) (0.5) (0.5) (1.6) (0.5) (0.6) (0.6) (1.7) (0.6) 

 

Net Revenue $1.0 $3.1 $3.8 $7.9 $3.4 $3.4 $3.4 $10.2 $3.2 $3.6 $3.7 $10.6 $3.7 Variable Cost (0.6) (2.4) (2.9) (5.9) (2.7) (2.6) (2.6) (7.9) (2.5) (2.8) (2.9) (8.2) (2.9) 

 

Variable Profit $0.3 $0.7 $0.9 $1.9 $0.8 $0.8 $0.8 $2.4 $0.8 $0.8 $0.9 $2.4 $0.8 Fixed Cost (0.8) (0.8) (0.8) (2.3) (0.8) (0.8) (0.8) (2.3) (0.8) (0.8) (0.8) (2.3) (0.8) 

 

Operating Profit ($0.4) ($0.0) $0.1 ($0.4) $0.0 $0.0 $0.0 $0.1 ($0.0) $0.1 $0.1 $0.1 $0.1 Pension-OPEB Non-operating/Other (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.0) 

 

Earnings/(Loss) Before Interest & Taxes ($0.4) ($0.1) $0.1 ($0.4) $0.0 $0.0 ($0.0) ($0.0) ($0.0) $0.0 $0.1 $0.1 $0.1 Deprec & Amortization (D&A) 0.3 0.3 0.3 0.8 0.3 0.3 0.3 0.8 0.3 0.3 0.3 0.8 0.3 

 

EBITDA including VEBA impact ($0.2) $0.2 $0.3 $0.4 $0.3 $0.3 $0.3 $0.8 $0.2 $0.3 $0.3 $0.9 $0.3 Depreciation & Amortization (D&A) (0.3) (0.3) (0.3) (0.8) (0.3) (0.3) (0.3) (0.8) (0.3) (0.3) (0.3) (0.8) (0.3) 

 

Restructuring & Other Adjustments - - - - - - - - - - - - - 

 

Net Interest Income/Expense (0.07) (0.06) (0.06) (0.19) (0.04) (0.04) (0.04) (0.13) (0.04) (0.04) (0.04) (0.13) (0.04) 

 

Earnings/(Loss) Before Taxes ($0.5) ($0.1) $0.0 ($0.6) ($0.0) ($0.0) ($0.1) ($0.1) ($0.1) ($0.0) $0.0 ($0.1) $0.0 Taxes (0.02) (0.02) (0.02) (0.05) (0.02) (0.02) (0.02) (0.05) (0.02) (0.02) (0.02) (0.05) (0.02) 

 

Net Income/(Loss) ($0.5) ($0.1) ($0.0) ($0.7) ($0.1) ($0.1) ($0.1) ($0.2) ($0.1) ($0.0) $0.0 ($0.1) ($0.0) 

*

Chrysler 2009 CY “Stand Alone” Business PlanMonthly Income Statement

($Billions)

* Includes non-cash accounting gain from VEBA settlement as part of 2007 UAW agreement

Note: - The company is proposing an EBITDA milestone to be tested on a monthly basis through 2010 and on a yearly basis thro

- Numbers may not add due to rounding 
Blank
($Billions)

* Actual 12/31/08 Cash $1.9B. Decrease due to payments withheld by Daimler at YE and Chrysler having to provide wholesale financing in Mexico.Note: - Numbers may not add due to rounding

- Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at existing maturity 

dates are consensually extended

Chrysler 2009 CY “Stand Alone” Business PlanMonthly Cash Flow Statement

*

Ending Cash Actual/ 13 week forecast $2.7 $1.9 $2.4 Risk at 9.5 SAAR $1.8 $1.9

Jan Feb Mar Apr May Jun Jul Aug Sep Oc

Beginning Cash $2.5 $4.1 $2.4 $3.5 $9.0 $8.9 $8.8 $8.9 $8.6 $Cash Flows from Operating ActivitiesNet Income ($0.5) ($0.1) $0.0 ($0.1) ($0.1) ($0.1) ($0.1) $0.0 $0.0 $Depreciation & Amortization 0.3 0.3 0.3 0.3 0.3 0.2 0.3 0.2 0.3 

 

Non-cash VEBA Gains (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) 

 

Change in Net Working Capital (1.0) (1.8) 1.1 0.7 - (0.1) 0.1 (0.2) - 

 

Change in Net Other Operating Assets / Liabilities (0.4) (0.6) (0.1) (0.5) - 0.1 0.1 - (0.1) Cash (Used) / Provided by Operations ($2.5) ($1.5) $1.2 $0.3 $0.1 $0.0 $0.3 ($0.1) $0.1 $Cash Flows from Investing ActivitiesCapital Expenditures ($0.2) ($0.2) ($0.2) ($0.1) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($Asset Sales - - 0.1 - - 0.1 - - 0.1 Cash (Used) / Provided from Investing ($0.2) ($0.2) ($0.1) ($0.1) ($0.2) ($0.1) ($0.2) ($0.2) ($0.1) ($Cash Flows from Financing ActivitiesPrincipal Changes $0.0 $0.0 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $Liability Conversion - - - (6.9) - - - - - 

 

Equity Contributions - - - 6.9 - - - - - 

 

U.S. Treasury / DOE Sec.136 Funding - 4.3 - 5.3 - - - - - 

 

VEBA Note / (Principal Payments) - - - - - - - - - Cash (Used) / Provided from Financing $4.3 $0.0 ($0.0) $5.3 $0.0 $0.0 $0.0 $0.0 $0.0 $Net Increase / (Decrease) in Cash $1.6 ($1.7) $1.1 $5.5 ($0.1) ($0.1) $0.1 ($0.3) ($0.0) $Ending Cash $4.1 $2.4 $3.5 $9.0 $8.9 $8.8 $8.9 $8.6 $8.6 $
Blank
($Billions)

Chrysler 2009 CY “Stand Alone” Business PlanMonthly Balance Sheet

Note: - All subject to final 2008 audit

- The company will propose balance sheet related milestones in connection with the final restructuring plan- Numbers may not add due to rounding- Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at existing maturity dates are consensually extended

1Q 2Q 3Q 

Jan Feb Mar Apr May Jun Jul Aug Sep Oc

AssetsCash $4.1 $2.4 $3.5 $9.0 $8.9 $8.8 $8.9 $8.6 $8.6 Restricted Cash / Investments 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 

 

Trade Receivables 1.1 1.3 1.4 1.3 1.3 1.3 1.3 1.3 1.4 

 

Inventory 4.3 4.9 5.4 5.0 4.9 4.8 4.5 4.8 4.8 

 

Other Current Assets 3.5 3.4 3.4 3.3 3.3 3.2 3.2 3.1 3.1 

Subtotal Current Assets 15.3 14.3 16.0 20.9 20.7 20.4 20.2 20.1 20.2 

 

Operating Leases 1.6 1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.2 

 

Gold Key Lease Assets 4.0 3.9 3.7 3.6 3.4 3.3 3.1 2.9 2.8 

 

Deferred Tax Assets 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 

 

Property, Plant & Equipment 15.7 15.6 15.4 15.3 15.3 15.1 15.0 15.0 14.8 

 

Goodwill & Intangibles 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 

 

Prepaid Pension 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 

 

Other Long-Term Assets 0.5 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.8 

Subtotal Long-Term Assets 34.7 35.0 34.4 34.1 33.9 33.6 33.3 33.1 32.8 

Total Assets $50.3 $49.0 $50.4 $55.0 $54.6 $54.0 $53.5 $53.2 $53.0 $Liabilities & Member's InterestAccounts Payables $4.1 $4.5 $6.1 $6.5 $6.4 $6.2 $6.2 $6.3 $6.4 Other Current Liabilities 5.7 5.0 5.0 4.9 4.8 4.7 4.5 4.5 4.4 

Subtotal Current Liabilities 9.8 9.5 11.1 11.4 11.2 10.9 10.7 10.8 10.8 

 

OPEB Liability 6.9 7.0 7.1 7.2 7.3 7.4 7.4 7.5 7.6 

 

Pension Liability 1.4 1.5 1.7 1.8 1.9 2.0 2.1 2.3 2.4 

 

Deferred Tax Liabilities 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 

 

Restructuring Accruals 2.2 2.1 2.0 1.8 1.8 1.7 1.7 1.7 1.6 

 

Other Long-Term Liabilities 8.9 8.4 8.4 7.8 7.8 8.0 7.9 7.7 7.8 

Subtotal Long-Term Liabilities 19.7 19.3 19.5 18.9 19.1 19.4 19.4 19.5 19.7 

 

1st & 2nd Lien Debt 8.9 8.9 8.9 6.9 6.9 6.9 6.9 6.9 6.9 

 

U.S. Treasury & DOE Sec.136 4.3 4.3 4.3 9.6 9.6 9.6 9.6 9.6 9.6 

 

VEBA Note 5.0 5.0 5.0 5.1 5.1 5.1 5.2 5.2 5.2 

 Subtotal Debt 18.2 18.2 18.2 21.6 21.6 21.6 21.7 21.7 21.7 

 

Liability Conversion - - - (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) 

 Net Debt 18.2 18.2 18.2 16.7 16.7 16.7 16.8 16.8 16.8 

 

Gold Key Lease Debt 4.3 4.1 4.0 3.8 3.7 3.5 3.4 3.2 3.1 

 

Other Financial Liabilities 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 

 

Member's Interest (3.0) (3.4) (3.7) 2.9 2.6 2.2 1.9 1.6 1.3 

Total Liabilities & Member's Interest $50.3 $49.0 $50.4 $55.0 $54.6 $54.0 $53.5 $53.2 $53.0 $
Blank
Jan Feb Mar 1Q Apr May Jun 2Q Jul Aug Sep 3Q Oct 

Gross Revenue 3.5 3.9 4.6 12.1 4.3 4.6 4.4 13.2 4.0 3.9 3.8 11.7 3.6 

 

Incentives (0.5) (0.5) (0.6) (1.6) (0.6) (0.6) (0.6) (1.8) (0.5) (0.5) (0.5) (1.6) (0.5) 

 

Net Revenue $3.1 $3.4 $4.0 $10.5 $3.7 $3.9 $3.8 $11.5 $3.4 $3.3 $3.3 $10.1 $3.1 Variable Cost (2.3) (2.6) (3.1) (7.9) (2.8) (3.0) (2.9) (8.8) (2.6) (2.5) (2.5) (7.7) (2.4) 

 

Variable Profit $0.8 $0.8 $0.9 $2.5 $0.9 $0.9 $0.9 $2.7 $0.8 $0.8 $0.8 $2.4 $0.8 Fixed Cost (0.7) (0.7) (0.7) (2.0) (0.7) (0.7) (0.7) (2.0) (0.7) (0.7) (0.7) (2.0) (0.7) 

 

Operating Profit $0.1 $0.1 $0.3 $0.5 $0.2 $0.2 $0.2 $0.7 $0.2 $0.1 $0.1 $0.4 $0.1 Pension-OPEB Non-operating/Other (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.0) 

 

Earnings/(Loss) Before Interest & Taxes $0.1 $0.1 $0.2 $0.4 $0.2 $0.2 $0.2 $0.6 $0.1 $0.1 $0.1 $0.4 $0.1 Deprec & Amortization (D&A) 0.3 0.3 0.3 0.8 0.3 0.3 0.3 0.8 0.3 0.3 0.3 0.8 0.3 

 

EBITDA including VEBA impact $0.3 $0.4 $0.5 $1.2 $0.5 $0.5 $0.5 $1.4 $0.4 $0.4 $0.4 $1.2 $0.3 Depreciation & Amortization (D&A) (0.3) (0.3) (0.3) (0.8) (0.3) (0.3) (0.3) (0.8) (0.3) (0.3) (0.3) (0.8) (0.3) 

 

Restructuring & Other Adjustments - - - - - - - - - - - - - 

 

Net Interest Income/Expense (0.08) (0.08) (0.08) (0.25) (0.08) (0.08) (0.08) (0.25) (0.08) (0.08) (0.08) (0.25) (0.08) 

 

Earnings/(Loss) Before Taxes ($0.0) $0.0 $0.2 $0.2 $0.1 $0.1 $0.1 $0.4 $0.1 $0.0 $0.0 $0.1 ($0.0) Taxes (0.02) (0.02) (0.02) (0.05) (0.02) (0.02) (0.02) (0.05) (0.02) (0.02) (0.02) (0.05) (0.02) 

 

Net Income/(Loss) ($0.0) $0.0 $0.1 $0.1 $0.1 $0.1 $0.1 $0.3 $0.0 $0.0 $0.0 $0.1 ($0.0) 

*

Chrysler 2010 CY “Stand Alone” Business PlanMonthly Income Statement

($Billions) Note: Num

* Includes non-cash accounting gain from VEBA settlement as part of 2007 UAW agreement

Note: - The company is proposing an EBITDA milestone to be tested on a monthly basis through 2010 and on a yearly basis thr

- Numbers may not add due to rounding 
Blank
($Billions)

Chrysler 2010 CY “Stand Alone” Business PlanMonthly Cash Flow Statement

Note: - Numbers may not add due to rounding

- Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at e

dates or their maturity dates are consensually extended

Jan Feb Mar Apr May Jun Jul Aug Sep Oc

Beginning Cash $9.0 $12.0 $11.7 $11.5 $11.9 $11.6 $11.6 $11.4 $11.1 $1Cash Flows from Operating ActivitiesNet Income $0.0 $0.1 $0.1 $0.1 $0.2 $0.0 $0.1 $0.0 $0.0 $Depreciation & Amortization 0.3 0.3 0.3 0.3 0.3 0.2 0.3 0.2 0.3 

 

Non-cash VEBA Gains (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) 

 

Change in Net Working Capital (0.2) 0.7 - 0.4 (0.3) 0.1 (0.1) (0.1) (0.3) 

 

Change in Net Other Operating Assets / Liabilities (9.5) (0.1) (0.2) (0.1) (0.1) - (0.1) - (0.4) Cash (Used) / Provided by Operations ($8.7) ($0.1) $0.0 $0.5 ($0.1) $0.1 $0.0 ($0.1) ($0.6) $Cash Flows from Investing ActivitiesCapital Expenditures ($0.2) ($0.2) ($0.2) ($0.1) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($Asset Sales - - - - - 0.1 - - - Cash (Used) / Provided from Investing ($0.2) ($0.2) ($0.2) ($0.1) ($0.2) ($0.1) ($0.2) ($0.2) ($0.2) ($Cash Flows from Financing ActivitiesPrincipal Changes $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $Liability Conversion - - - - - - - - - 

 

Equity Contributions - 5.1 - - - - - - - 

 

U.S. Treasury / DOE Sec.136 Funding - 2.5 - - - - - - - 

 

VEBA Note / (Principal Payments) - 4.3 - - - - - - - Cash (Used) / Provided from Financing $11.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $Net Increase / (Decrease) in Cash $3.0 ($0.3) ($0.2) $0.4 ($0.3) ($0.0) ($0.2) ($0.3) ($0.8) $Ending Cash $12.0 $11.7 $11.5 $11.9 $11.6 $11.6 $11.4 $11.1 $10.3 $1
Blank
($Billions)

Chrysler 2010 CY “Stand Alone” Business PlanMonthly Balance Sheet

Note: - All subject to final 2008 audit

- The company will propose balance sheet related milestones in connection with the final restructuring plan- Numbers may not add due to rounding- Assumptions with respect to the 1st Lien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at existing maturity 

dates are consensually extended

1Q 2Q 3Q 

2009 Jan Feb Mar Apr May Jun Jul Aug Sep 

AssetsCash $9.0 $12.0 $11.7 $11.5 $11.9 $11.6 $11.6 $11.4 $11.1 $10.3 Restricted Cash / Investments 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 

Trade Receivables 1.3 1.3 1.3 1.4 1.3 1.4 1.4 1.3 1.3 1.3 

Inventory 3.8 3.8 4.1 4.8 4.5 4.7 4.6 4.3 4.1 4.3 

Other Current Assets 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 

Subtotal Current Assets 19.3 22.3 22.3 22.9 22.9 22.9 22.8 22.2 21.7 21.1 

Operating Leases 1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 1.2 

Gold Key Lease Assets 2.3 2.1 2.0 1.8 1.6 1.5 1.3 1.1 1.0 0.8 

Deferred Tax Assets 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 

Property, Plant & Equipment 14.5 14.4 14.3 14.3 14.2 14.1 13.9 13.9 13.8 13.7 

Goodwill & Intangibles 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3 

Prepaid Pension 0.9 0.8 0.8 0.7 0.7 0.6 0.6 0.5 0.5 0.4 

Other Long-Term Assets 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 

Subtotal Long-Term Assets 31.7 32.1 31.5 31.2 30.9 30.6 30.3 30.0 29.8 29.4 

Total Assets $51.4 $54.0 $53.8 $54.1 $53.8 $53.5 $53.1 $52.2 $51.5 $50.5 Liabilities & Member's InterestAccounts Payables $6.0 $5.7 $5.9 $6.7 $6.7 $6.7 $6.7 $6.4 $6.1 $6.0 Other Current Liabilities 4.1 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.9 4.8 

Subtotal Current Liabilities 10.1 10.7 10.9 11.7 11.7 11.7 11.7 11.4 11.0 10.8 

OPEB Liability 7.9 3.7 3.7 3.7 3.7 3.7 3.7 3.8 3.8 3.8 

Pension Liability 2.8 2.7 2.7 2.7 2.7 2.6 2.6 2.6 2.6 2.6 

Deferred Tax Liabilities 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 

Restructuring Accruals 1.5 1.5 1.5 1.3 1.3 1.3 1.2 1.2 1.2 1.0 

Other Long-Term Liabilities 8.0 8.2 8.1 8.2 8.3 8.4 8.5 8.2 8.3 8.2 

Subtotal Long-Term Liabilities 20.5 16.4 16.3 16.2 16.3 16.3 16.3 16.1 16.2 15.9 

1st & 2nd Lien Debt 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9 

U.S. Treasury & DOE Sec.136 9.6 12.1 12.1 12.1 12.1 12.1 12.1 12.1 12.1 12.1 

VEBA Note 5.3 4.3 4.3 4.3 4.3 4.3 4.3 4.3 4.3 4.3 

 Subtotal Debt 21.8 23.3 23.3 23.3 23.3 23.3 23.3 23.3 23.3 23.3 

Liability Conversion (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) (4.9) 

 Net Debt 16.9 18.4 18.4 18.4 18.4 18.4 18.4 18.4 18.4 18.4 

Gold Key Lease Debt 2.6 2.4 2.3 2.1 1.9 1.7 1.6 1.4 1.2 1.0 

Other Financial Liabilities 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 

Member's Interest - 4.8 4.6 4.4 4.2 4.1 3.8 3.6 3.4 3.1 

Total Liabilities & Member's Interest $51.4 $54.0 $53.8 $54.1 $53.8 $53.5 $53.1 $52.2 $51.5 $50.5 
Blank
Minimum Required Liquidity

Chrysler’s Short-term Cash Needs Have Accelerated under Current Market Conditions

Washington Washington 

Dec ’08 Submission 08 Submission

Cash balance with $4.0B Cash balance with $4.0B 

Gov’t Loan assuming Loan assuming

SAAR @ 11.1 for year SAAR @ 11.1 for year

Forecast

Risk Assessment 

(submitted 02/09/09)

$1.8 

$1.9 Continued 

Industry

Contraction

20 K units 

through 

April 

$1.5 $1.7

$2.5 

Continued I

Contrac

$6.5

January 09 February 09 March 09 

3.6

2.7

6.5

3.2

1.9 2.4

5.9*

* 2008 YE actual cash $1.9B. Received $4.0B 1/2/09 from UST 

Liquidity n

$5B inc

Governmen

by 03
Blank
V. Strategic Alliance Benefits
Fiat Strategic Alliance Synergy and Benefits Overview

Area Approach Cash Flow Impact

Total ‘09-16 $(Billions)

Products/ Platform Sharing 2 million products localized or sold in NAFTA and 

exported to global markets 

$1.4 

Distribution New Chrysler markets adding 393,000 units, Alfa 

Romeo distributed in NAFTA

$1.3 

Purchasing Integrate sourcing with Fiat Group $3.2 Other Opportunities Powertrain, Technology, Logistics, SG&A Expense, 

other, Funding for NSCs provided by Fiat

$1.0 

TOTAL SYNERGIES* $6.9 

Adds 7 New Small Vehicles/Platforms and 6 New Powertrain Combin

To Enhance U.S. Energy Independence And Environmentally 

Sustainable Product Offerings

* Synergies Incremental to Chrysler Only as Calculated by Chrysler ** A strategic alliance could reduce Chrysler’s overall capital requirements and could create additional jobs in the U.S. 

Additionally the alliance would have the potential for better efficiency spending of DOE funds.

Alliance With Fiat Benefits ** 2009 2010 2011 2012 2013 2014 EBITDA Synergy Benefits $0.0 $0.0 $0.3 $1.2 $1.3 $1.5 Cash Synergy Benefits (cumulative) ($0.1) ($0.1) ($0.2) $1.0 $2.4 $3.9 The negative cash impact in the first three years is due to spending approx $1B in new platforms and powertrain technology o
Chrysler Strategic Challenges

Historically Weighted Product Portfolio 

Toward Trucks, MPVs, And SUVs

Lost International Footprint World-wide 

Outside Of NAFTA Due To Daimler Separation

Minimal Scale Vs. Global Competitors

Strategic Alliance

Increases Chrysler’s and Fiat’s Competitiveness

High Capital Investment And R&D Needed 

To Comply With Environmental Requirements

Alliance Creates #6 Global AutomakOver 4 Million Vehicles Sold AnnualFiat To Help To Manage Distribution Providing Access to 3,800 Fiat Deal

Fills Product Line Gaps In Small And Vehicles

Obtain World-class Small Engines ATechnology

Benefits of Fiat Allia
Fiat Overview

• One of the pioneers of the car industry, Fiat built its first car in 1899.• Headquartered in Turin, Italy, Fiat is currently Italy’s largest industrial concern 

largest auto manufacturers in Brazil and Russia.

• Fiat Group Automotive designs, produces and sells cars worldwide under the 

Romeo, Lancia, Fiat Professional (light commercial vehicles) and Abarth bran

• Fiat’s small vehicle platform products (A, B and C segments) are highly regard

company is a recognized leader in developing technologies to reduce emissio

increase fuel efficiency.

• Among the top 10 selling brands in Europe, Fiat brand has the lowest level of 

emissions.

• Fiat went through some difficult, unprofitable years at the beginning of the mill

since 2003 has executed a tremendous turnaround in its own business.
Fiat Overview

Group Structure Financial Summary – $

FY ‘05 FY ‘06 

Revenue $64 $71 Gross Profit 9.5 10.9 

% Margin 15% 15% 

Net Profit 1.8 1.5 % Margin 2.8% 2.1% 

Source: ‘07 Annual Report, 4Q ‘08 Report, Bloomberg FX: €1= $1.37 (Jan ‘09). Including all s

South AmericaNAFTAEuropeItalyOther

$81 2008 Revenue by Region

Revenue & Profit History

Fiat Power Train

PowertrainTechnologies

Fiat Group

Auto

Automakers Components Others2008 Revenue

$(Billions) $40 $9 $32

MaseratiFerrariFiat Autos

Magneti

Components

Case New Holland

Agri & Constr Equip

Iveco

Commercial Veh

Teksid

Metallurgical

Comau

Production Sys

Itedi

Publishing
Restructuring Plan With Preferred Strategic Alliance

• An Alliance with Fiat would help Chrysler address some of its most pressing s

challenges.

• Fiat would provide a strong partner to build the presence of the Chrysler, Dod

brands in important international growth markets, where Chrysler currently ha

footprint.

• Access to Fiat Group platforms would complement Chrysler’s current product 

would allow the Company to rapidly bring to market fuel-efficient, environmentsmall cars.

• Chrysler would obtain access to world-class small engines and powertrain tec

without the need to spend significantly on capital investments and R&D.

• In return, Fiat would gain a 35% equity position in Chrysler. 
Chrysler – Fiat Alliance Proposed Transaction 

Structure: Non-Binding

Chrysler Equity

Product/Platform

Sharing

Distribution

Purchasing

Other Opportunities

Alliance Scope

Strategic As

Managem

Service

• Fiat contributes strategic assets and management services to Alliance• Fiat obtains 35% equity with option to acquire 20% based on achieving perform

• Chrysler remains U.S. based company

Enhances Global 

Competitiveness
Benefits From Global Scale

• While Chrysler’s current scale makes it difficult to compete versus global com

would immediately create the sixth largest global automaker by volume, with csales in excess of 4 million units. 

• Larger scale would make the Alliance more competitive with top tier auto man

new platform and technological development costs could be amortized over h

• The Alliance also would increase R&D and design capabilities by combining tw

technology players.

• Joint development of future global platforms and powertrain solutions, combin

common components, would provide the potential for significant reductions in development costs.

• The complementary geographic strengths would provide synergies in sales an• The larger scale would provide savings in procurement as a result of common 

existing platforms and even greater opportunity on future shared platforms.

• The combined direct materials spend would be more than $45 billion annually
0

123456789

10

8.7

7.7

6 5.8

5.4

4.5 4.2

3.8

3.2

2.5 2.4

2 1.9

1.4 1.4 1.1

Benefits From Global Scale

Alliance creates the 

#6 Global Automaker 

by volume

Top Global Automakers by 2008 Annual Unit Sales

Units (Millions)

• Achi

posibettetop-t

• Cost

and deveamovolu

• Incre

desicomtech

• Sale

synegeog

• Proc

scale
Expansion Through Current Geographic Presence

• Geographic balance is another mutual benefit, as the Alliance would take adv

Fiat’s presence in Europe and Latin America and Chrysler’s position in North A

Here is how regional market shares currently break down:

– Europe: Chrysler 0.5 percent share; Fiat 7.5 percent share– South America: Chrysler 0.7 percent share; Fiat 18.2 percent share– North America: Chrysler 11.0 percent share; Fiat less than 0.1 percent sh

• By leveraging Chrysler’s and Fiat’s complementary strengths in distribution, th

would dramatically enhance the geographic footprint for each company, providopportunity to grow combined share.

• An improved geographic balance also would lessen the dependency on any s

market for the Alliance. 

• In addition, scale in the Americas and in Europe would put the Alliance in bett

to penetrate Asian markets from a position of strength.
Expansion Through Current Geographic Presence

North AmericaSouth AmericaEuropeAfrica

Asia

Source: Global AutoInsight (January 2009)

MARKET SHARE BY REGION % SALES BY REGIO

Fiat’s core presence in Europe and South 

America and Chrysler’s in North America 

Asia

TOTAL VOLUME

(millions)

Alliance provides platform to joi

Asia from position of str

Fiat Financial Services May Provide Si

For Chrysler Internatio
Benefits From Complementary Products

• Fiat’s product portfolio is predominately mini, small and compact cars which re

almost 60 percent of the company’s global sales. 

• Alternatively, Chrysler’s product portfolio is dominated by minivans, mid and la

utility vehicles, and trucks which represent over 50% of its sales. 

• Chrysler would gain immediate access to substantially all of Fiat’s vehicle plat

including small, fuel-efficient cars for the U.S. market. 
Benefits From Complementary Products

Expanding Product Breadth into New Segments Enhances Custom

Choice and Improves Dealer Profitability

Source: Global Insight & Co. data. Fiat/ Alfa/ Lancia. Includes LCV. ’08E 3Q’08 Co. presentation

Worldwide Vehicle Sales by Segment Units (000s)

2.5 MAnnual Sales2.0 MAnnual Sales
Benefits From Technology Sharing

• Technology sharing with Fiat would provide tremendous advantages to Chrys• Fiat is a recognized leader in developing technologies to reduce emissions an

efficiency. Among the 10 top selling brands in Europe, Fiat brand has the loweCO2 emissions.

• Examples of Fiat advanced technologies available in 2009-2012:

– Small Gasoline Engine: 1.4-1.8l turbocharged technology to reduce CO2 

less than 100g/km.

– Multiair: this innovative intake valve electronic control system reduces fue

by up to 6 percent while improving dynamic response of the engine. 

– Multijet 2: advances in direct injection diesel technology enable signfician

NOx and soot emissions and reduced combustion noise.

– Tetrafuel: designed for flex-fuel markets like Brazil, it is the first-ever eng

being powered by four different fuels – CNG, pure petrol, pure ethanol (Eethanol/gasoline blend.
Benefits From Technology Sharing

Improved Fuel Economy and Emissions

Innovative Innovative Powertrain Powertrain Technologies Technologies Vehicle and Lightweight T

Vehicle and Lightweight T

Dual Dry Clutch Transmission

10% more efficient than conventional transmissionTetra-Fuel Enginecapable of being powered by four different fuels

Seat Frame Weight Reduction

Electric Power Steeringto reduce pumping losses for fuel efficiency

Material and thicknessThicknessdeleted

2-cylinder Gas Engine

combining Multiair and turbo technology for real downsizing
A Global Alliance for Chrysler Benefits America 

• The proposed Alliance with Fiat would significantly strengthen Chrysler’s com

the long term and would benefit all of Chrysler’s constituents.

• The Company’s U.S. employees would benefit from the enhanced prospects f

long-term viability and by the preservation of manufacturing jobs. A stronger Cwill be in a better position to meet its retiree obligations. Chrysler’s partners at 

have announced their endorsement of the proposed Alliance.

• Chrysler’s dealers and suppliers would benefit from increased production volu

diversification across geographies and models, and increased financial stabilit

would have an increased opportunity to supply components for Fiat vehicles athe U.S.

• Chrysler’s creditors would benefit from a stronger borrower.• Finally, the U.S. government and taxpayers would benefit because the Allianc

elevate Chrysler into a leading U.S.-based global automotive player; facilitate 

repayment of U.S. Treasury indebtedness; and accelerate Chrysler’s plans fointroduction of more environmentally friendly vehicles.

• No American taxpayer money would go to Fiat.• Chrysler would build Fiat models in North American plants with North America

the Company has previously assembled small pickup trucks for Mitsubishi, nominivans for Volkswagen, and will assemble full-size pickup trucks for Nissan.
Impact of Alliance Extends Beyond Chrysler and 

Benefits Other U.S. Constituencies

Employe• Chrysl

enhanc

• Preser

jobs

• Better 

meet it

Government & Public

• Accelerates achievement of 

Chrysler’s long-term objectives

• Facilitates more rapid 

repayment of U.S. Treasury indebtedness

• Pulls ahead introduction of 

more environmentally friendly and fuel efficient vehicles

• Elevates Chrysler into a 

leading U.S.-based global automotive player Creditors

• Improves potential for debt 

repayment and reduces risks

Dealers & Suppliers• More competitive, diverse product lineup• Volume growth opportunity• Financial stability

Strengthens Strengthens 

Chrysler for Chrysler for 

the Long Term the Long Term
Blank
VI. Industrial Plan 
Product Leadership Strategy

• Chrysler product leadership strategy addresses three major areas:• Core Programs: Improving quality to attain world-class standards has been a m

the past year-and-a-half. Chrysler also has steadfastly addressed ways to impro

economy and meet regulatory requirements through a wide range of approache

• Market/Segment Requirements: Chrysler understands changing customer requ

seeks to satisfy those needs in different segments with innovative vehicles and 

improving its portfolio’s relevance to consumers.

• Financial Viability for Chrysler: Two of Chrysler’s most successful, iconic model

300 and Jeep Grand Cherokee – will be completely redesigned and launched in 
Implement Core Programs to

• Improve Quality • Increase Fuel Economy • Ensure Compliance With Regulatory RequirementsEstablish a More Customer – Relevant Product Portfolio • Smaller Vehicles• Electric Vehicles – i.e. Dodge Circuit• Innovation – Chrysler 200C / ConnectivityMaintain Dominance in Profitable Segments• New Jeep Grand Cherokee in 2010• New Chrysler 300 in 2010Chrysler Product Leadership Strategy Addresses3 Major Aspects
Chrysler Quality Strategy Showing Positive Results

• The entire Chrysler organization is committed to achieving a higher level of quality.

• Chrysler recently launched the Customer Promoter Score to measure how customers fee

Company’s brands, dealers and vehicles. It measures whether customers are promoters of Company products by asking one simple question: “Would you recommend the produc

a friend or family member?”

• Customers are contacted seven times during their ownership experience. Customer feed

comments will be available to dealers, engineers, designers - anyone with an interest in c

Recent data shows Chrysler is seeing a resurgence of promoters.

• The 2009 Dodge Ram truck was the first vehicle tested under the Customer Promoter Sc

Calls began in December of 2008, and through the end of January more than 700 custom

completed, recording a cumulative score of 99.8 percent positive. 

• Three aspects of Chrysler’s quality process will be highlighted in this presentation: 

• Ordinary Quality: In 2008, the Company achieved the lowest warranty claim rate in 

30 percent improvement compared with the prior year.

• Regulatory Quality: Among the six major auto manufacturers, Chrysler had the ind

number of recalls in 2008 as reported by NHTSA – a total of 360,000 units, down f

units in 2007.

• Perceived Quality: Chrysler is addressing perception issues with initiatives such as 

materials and improvements to fit and finish.
Chrysler’s Overall Quality Strategy

CPS

Customer 

Promoter Score

Example:• Power Window 

Broken 

Example:• Emissions 

Problem

Example:• Cheap looking 

interior

• Poor fit and 

finish

Example:• Road noise• MPG

Ordinary 

Quality

Regulatory 

Quality

Performance 

Quality

Perceived

Quality

How it works 

Fixing problems Recalls How it looks

on current 

products and 

warranty claims

Example:• Cup holders 

too low

• Confusing 

Controls

Dissatisfaction 

Quality

Customer 

feedback

One simple 

“Would the 

recommen

Products to 

Chrysler is a Customer Centric Company

CPS will predict increased Loyalty/Advocacy leadingto growth of the business
Ordinary Quality Addresses Fundamental 

Customer Requirements

Current Products• To underscore Chrysler’s focus on quality and commitment to custome

Company became the first auto manufacturer to offer a limited lifetime powertmost new Chrysler, Jeep and Dodge vehicles.

• In 2008, the Company achieved the lowest warranty claim rate in its history 

improvement compared with the prior year.

• The 30 percent improvement far exceeds the historical average annual im

of 2.4 percent.

• The 2008 improvement resulted in a $240 million annualized warranty cos

Future Products• Chrysler has increased its durability target by 50 percent for future products.• The Company has set a target to achieve a Consumer Reports rating of 40 pe

the industry average for reliability.
Ordinary Quality (Warranty)

Current Products Current Products

• 30% reduction in customer warranty 

claims last 12 months (historically 2.4% annual)

• $240 Million annualized warranty cost 

reduction

Future Products

• Durability targets increased • Targeting Consumer Repor

40% better than Industry AvReliability

WARRANTY – TOTAL CORPORATE

2001 200720082009201020112012

Warranty Failure Rate ’01 –’07 Average Annual Improvement Rate was 2.4%

...........

Better 30%

DURABILITY CURVE

Miles

Warranty Failures

Previous Targe

Early

Failures

5

LA

Better

Trend
Regulatory Quality Measures Recall Performance

• Chrysler established the automotive industry’s first-ever Chief Customer Office

in the automotive industry to focus and align the entire organization on quality a

satisfying customers.

• Among the seven major auto manufacturers, Chrysler had the industry's lowes

of recalls in 2008 as reported by NHTSA – a total of 360,000 units, down from units in 2007.

• Establishing a rigorous review and follow-up process to prevent problems was 

improvement.

• Chrysler also initiated a program in which top executives personally called cust

discuss quality issues.
Regulatory Quality (Recalls)

• Achieved lowest Safety Recall among 7 Major OEMs• Rigorous reoccurrence prevention reviews and follow up

% Recall of Total Brand Population

Source: R L POLK (2007). 2008 car parc data estimated with 5% scrappage rate.

0%5%

10%15%20%25%

2000 2001 2002 2003 2004 2005 2006 2007 

Calendar Year

Chrysler Trendline
Perceived Quality Initiatives Target Fit and Finish, and Ot

Perception-Based Product Qualities

• Chrysler benchmarked competitors to set benchmarks and determine best practices.• Chrysler established an Advance Interior Design Studio to improve the quality and fit and fi

Chrysler, Dodge and Jeep vehicles.

• Interior designers use state-of-the-art design software and computer modeling to achieve q

finish objectives faster than ever, allowing more time to engage suppliers and save money into better materials, even on entry-level models.

• The Company set targets to meet or exceed best in class as exemplified with the all-new 2

• “The Ram is in a league of its own here. “

— Truckin’ magazine’s “Truck of the Yea

• “Silverado, pass your torch. Chevy’s pickup has been the touchstone of chassis 

among half-tons since it was introduced in 2007, but the 2009 Dodge Ram 1500 cpecking order.”— Edmunds “Inside Line Editors’ Most Wanted 2009”

• “Most judges comment on the hugely improved interior layout and material cho

noting this could be the best Chrysler-originated interior ever.”

— MotorTrend

• "The Dodge Ram has never been better and it now clearly stands apart from its 

it's earned MotorWeek's ‘2009 Drivers' Choice Award as Best Pickup’.."

— Motor

• “Dodge Ram gets our Best Buy nod thanks to its composed ride, impressively c

quiet cabin and unique cargo storage features. Ram is also remarkably maneuve

pickup truck.” — Consumer Guide Automotive
Perceived Quality (Fit & Finish)

Current Products

• Leveraged benchmarking to find 

best competitors and practices

• Set targets to meet or exceed best 

in class

Future Products

• Established interior desig

late 2006

• Created Perceived Quali

Evaluation drive improve

2008 Ram 2008 Ram 2009 Ram 2009 Ram 
Chrysler Product Honored by Industry, Media and 

Consumers

• The all-new Dodge Ram has picked up 12 key awards since its introduction and wa

chosen by Car and Driver as the best full-size pick-up truck in a head-to-head comp

its competition.

• Chrysler 300C has become the most awarded car in automotive history since its lau

2005. 

• Celebrating the 25th anniversary of Chrysler minivans this year, loyal owners contin

recognize the Chrysler Town & Country and Dodge Grand Caravan as the best on tThe Chrysler Town & Country won its eighth consecutive honor in R.L. Polk's OwneAwards, and Chrysler minivans took their twelfth win in MotorWeek's Drivers' Choic

• Dodge Challenger has won seven awards this year, including Popular Mechanics A

Design Excellence Award. 

• Kelley Blue Book honored the iconic Jeep Wrangler for maintaining the highest resa

among all SUVs.

• Jeep Grand Cherokee owners are the most loyal in the mid-size SUV category, ear

vehicle an award in this year's R.L. Polk Loyalty awards.

• The uconnect Web WiFi system earned Good Housekeeping's seal of approval. Th

won the group's very innovative product award for giving passengers of new Chrysland Dodge vehicles the ability to sign up for wireless internet service.
Dodge Ram – 12 Awards

- International Truck of Year

Town and Country – 7 Awards

- Consumer Guide Best Buy

Chrysler 300C

- Consumer Guide Recommended

Dodge Challenger

- Popular Mechanics Automotive Design Excellence

Jeep Wrangler

- Kelly Blue Book Best Resale Value SUV

Jeep Grand Cherokee

- RL Polk Loyalty Award

uconnect Web WiFi System

- Good Housekeeping – Very Innovative Product Award

2009 Awards
Fuel Economy Improvements

• For the 2009 model year, 73 percent of Chrysler’s products offer improved fuel 

compared with 2008 models.

• An all-new family of fuel-efficient V-6 engines will join Chrysler’s lineup in 2010

• Over the past decade, Chrysler has built more than 1.5 million Flexible Fuel Ve

capable of running on renewable, American-made ethanol fuel, E85. The Com

committed to making 50 percent of our new light-duty vehicles capable of using 

fuels in 2012.

• In the proposed alliance with Fiat, Chrysler would gain access to Fiat Group ve

platforms that would complement Chrysler’s current product portfolio and would the company’s plans for the introduction of more environmentally friendly vehic

• The Company plans on launching additional small, fuel-efficient vehicles as we

breakthrough family of all-electric and range-extended electric vehicles. 
Improvement of Fuel Economy Using Powertrain and 

Portfolio Opportunities With FIAT

• Chrysler and FIAT portfolio ranges overlap only in midsize segments• FIAT small platform technology, small gasoline and diesel engines and light duty dual clutch transmissio

need for Chrysler to develop or purchase similar components

• Chrysler 4-cylinder World Gas Engine and Phoenix V6 are powertrains that are attractive to FIAT for pot

product line extension.

Journey

MID/LARGE SUVSPICKUP &

LARGE VAN

MINIVANLARGEFULLSIZEMIDSIZECOMPACT SUVSMALL / MINICOMPACT

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

Wo

Ga

Eng

1.8

2.4

NA, 

Multi Air-Efficient Engine 

Valvetrain Technology

High Pressure Common

Rail Diesel Technology

Dual Clutch Transmission

Efficient V6 Engine 

Technology
Safety, Regulatory, Environmental Requirements 

• There are a growing number of regulatory requirements regarding both vehicle 

and environmental issues.

• Chrysler will meet or exceed all existing or currently proposed U.S. Federal veh

regulatory requirements and comparable requirements applicable in key markeoutside the U.S. 

• For the 2009 model year, over 88 percent of Chrysler’s vehicles achieved five s

frontal crash tests, 86 percent achieved the highest rating for side-impact prote

• The addition of Fiat vehicles and technologies to Chrysler’s portfolio will accele

Company’s ability to meet regulations.
Chrysler Is Committed To Safety And The Environment 

• Federal Emissions 

Standards (including C02)

• State CO2 Regulation AB1493• State Zero Emission 

Vehicle Mandate (ZEV)

• Low Emission Vehicle 

Program (LEV)

EU Fuel EcoRegulations

EU Emis

Regula

• Federal Safety Regulation• Federal Fuel Economy 

Regulation (CAFE)

EU Reg

International S
Chrysler Complies With Domestic Car 

And Truck CAFE Requirements

• Chrysler’s product plans comply with all current and proposed federal Corporat

Fuel Economy requirements through MY 2015. 

• For example, 73 percent of Chrysler’s 2009 product lineup offers improved fuel 

compared with last year’s models. Chrysler will continue to improve overall fuewith new small car entries, diesel vehicles, electric drive vehicles, and our all-nV6 engine.

• California and thirteen other states have adopted greenhouse gas vehicle emis

standards (“AB 1493 standards”) that require increases in fuel economy. Thescomprise about 50% of the domestic car market. 

• If the US Environmental Protection Agency allows these states to enforce the A

standards, Chrysler will try its best to comply using available technology, howeresort it may be necessary to restrict sales of certain vehicle models in those stultimate effect of the California standards on Chrysler’s product plans depends number of developments, as indicated in the Appendix.
Chrysler Has A Strategy To Comply With Domestic Car 

And Truck CAFE (December Draft Rule)

Chrysler’s Integrated Portfolio and Propulsion Strategy Meets CAFE throu

24262830323436384042

2008 2009 2010 2011 2012 2013 2014 2015

Model Year

EPA Unadjusted Comb. Fuel Economy (mpg)

202224262830

2008 2009 2010 2011 2012 

Model Year

EPA Unadjusted Comb. Fuel Economy (mpg) CAFE Standard (Dec 2008 Draft Rule) ’11/’13 Car & ’14 LDT Credits ’09/’10 used Credits used ’08 Credits used Chrysler LLC Domestic Passenger Car Fleet CAFE Standard (Dec 2008 Draft Rule) Chrysler LLC Light Duty Truck F

‘Green bars indicate accumulated credits, red bars indicate consumed credits ’08 Credits used

Domestic Passenger Car Light Duty Truck

’08

Credits

used

AB1

(approxi

-Manufactu

>10% equ

combin

AB1493

(approximate*) -Manufacturers with

>10% equity must combine fleet

*AB1493 uses different tests methods and fleets – line shows an approximate relationship to CAFE FE

‘Green bars indicate 

accumulated credits, red 

bars indicate consumed 

credits

Comply using 

Available technology 

or sales restriction
Chrysler Has A Strategy To Meet ZEV 

Compliance Requirements

• To satisfy the ZEV Mandate in California and states that have adopted the ZEV 

Chrysler is required to produce and sell a combination of advanced technology 

– Battery Electric Vehicles (Gold credits)– Hybrids and/or Plug-in Hybrids (Silver, Silver+ credits)– and Partial Zero Emission vehicles (reduced-tailpipe-emission vehicles) k

PZEV’s (Bronze credits)

• Recently updated ZEV regulations allow some flexibility to generate and apply 

Silver+ credits.

• For the Battery Electric Vehicle requirement, Chrysler has developed the Dodg

electric sports car and plans other Battery Electric Vehicles in the coming year

• We also have plans to offer a Dodge Ram Pickup Hybrid next year, followed la

Extended Electric Vehicles that combine plug-in capability with a small gasolinengine/generator/battery system to further reduce fuel consumption in our mai

vehicles.

• In combination, Chrysler’s EV products will meet the ZEV Mandate, as it is cur
Dodge Circuit Electric Vehicle and Ram 

Hybrid contribute to meeting the 

California Zero Emission 

Vehicle (ZEV) mandate.

Chrysler Has A Strategy To Meet California’s Zero Emission Vehicle Mandate

Dodge Circuit Electric Vehicle 

All Electric

Ram Hybrid

Based on Current Portfolio Assumptions Chrysler Meets 

California’s Zero Emission Vehicle Mandate

Hybrid Electric Vehicle Co

Range Extended Electri

Battery Electric Vehicle Compliance

200

1,375

2,027

2,027

0

500

1,0001,5002,0002,5003,0003,5004,000

2009 2010 2011 2012 2013 2014 

Model Years

Vehicles

Carry back

credits

Forecast

LEGENDCredits per Build PlanCredits Req’d by Government

Banked Credits 

Carried Forward
Chrysler’s Commitment to Safety

• Chrysler is committed to designing and building safety into its vehicles.

• For the 2009 model year, more than 88 percent of the Company’s vehicles ac

ratings from NHTSA for frontal crash tests and 86 percent achieved the highesimpact protection.

• Chrysler had the fewest number of safety-related and other recalls of 

manufacturer in 2008.

• Chrysler achieves early vehicle phase-in by an average of 18 percent for sa

which equates to a total of nine million vehicles phased-in early.
Chrysler NHTSA Regulation Compliance Phase–In (% required / % planned

For every regulation Chrysler achieves early vehicle phase in by 

average of 18% per regulation, which equates to a total of 9 mil

vehicles phased-in early.

Chrysler Is Committed To Safety And To Meeting All NHTSA Regulatory Compliance

YEAR

REGULATION 2008 2009 2010 2011 2012 Tot

Ea

FMVSS 126 - Electronic Stability Control 55 / 69 75 / 87 95 / 98 ALL 

FMVSS 202a -Front Row Head Restraints 80 / 86 ALL

X 

FMVSS 202a - Rear Head Restraints 80 / 82

X 

FMVSS 208 - Front Impact - 50% Male 35 / 60 65 / 74 ALL X X 

FMVSS 208 - Front Impact - 5% Female 35 / 64 65 / 87

X 

FMVSS 208 - Child Seats 50 / 66 ALL

X 

FMVSS 214 - Side Impact - Pole ` 20 / 43 40 / 55 

FMVSS 214 - Side Impact - Moving Barrier 20 / 50 40 / 72 

FMVSS 216 - Roof Strength 

FMVSS 301 - Rear Impact - Fuel Integrity 70 / 95 ALL X XX 

NHTSA Delayed Rulemaking ...

Timing / Requirements Uncertain
Aligning Product Portfolio With Market Trends

• Chrysler is changing its mix of product offerings to better align with U.S. marke

demands for smaller, more fuel-efficient vehicles.

• In 2008, Chrysler’s vehicle lineup, on average, included more large vehicles th

average. 

• The Fiat Alliance will accelerate global share gains across all segments and cr

complementary products:

• Alliance product strength benefits Chrysler in the subcompact (A-segmen

(B-segment) and midsize (C-segment) vehicle families;

• Chrysler's product strength benefits the Alliance in the fullsize vehicle, mu

vehicle, pickup and minivan segments;

• New powertrain technologies fill a void for Chrysler in a variety of applicat

small gasoline, diesel, natural gas and bioethanol engines.

• Fuel prices at the pump will be a major variable driving change in consumer pr

small, fuel-efficient vehicles. 

• The Alliance with Fiat will allow Chrysler to leverage small-car platforms and re

leadership in developing technologies to reduce emissions and increase fuel e
0.0%

20.0%40.0%60.0%80.0%

2008-2015 2008 2015

ElectrifiedD SegmentC SegmentB SegmentA Segment

U.S. Industry demand 

for small cars will 

remain steady

Chrysler Product Portfolio Emphasizes Segments That Better Align With The U.S. Market Trends And Demands

U.S. Industry

Chrysler

Fiat Alliance enables Chrysler 

to more rapidly expand product 

portfolio to meet current and future 

market demand

~57%

44%

52% +8%

Sales Mix: Small & Midsize Vehicles as Percent of Total
Chrysler Has an Aggressive Vehicle 

“Electrification” Plan

• Chrysler’s subsidiary, Global Electric Motor Cars LLC (GEM), is the largest pro

electric-drive vehicles in the U.S. today. 

• Chrysler’s internal group, known as “ENVI,” has focused on electric drive as a 

path to developing future clean vehicles.

• Chrysler electric-drive technology will be applied to front-wheel-drive, rear-whe

and body-on-frame four-wheel-drive platforms – across all three brands (Chrys

Dodge and Jeep®).

• In addition to all-electric vehicles, Chrysler will offer Range-extended Electric V

that combine the drive components of an electric vehicle with an integrated, gaauxiliary power unit and generator to power the electric drive when needed.

• The range-extended system provides a total range of about 400 miles, includin

miles of zero-emissions, all-electric operation.

• Chrysler will have more than 66 ENVI advanced propulsion electric-drive vehic

fleet service this year.

• The first Chrysler electric-drive vehicle will be available for retail customers in 2

with additional models in production by 2013.
Chrysler Has An Aggressive Vehicle “Electrification” Plan 

to Respond to a Broad Range Of Customer Demands

Chrysler’s Electrification Plan Includes Addition of a Battery Electric Vehicle (

2009 and Continues With Additional BEVs, Range Extended Vehicles, an

GEM/Peapod Renewal NEV

>200 mpg

HEV

28-30 mpg

Battery 

Electric

Vehicle

(NEV, CEV, BEV)

Range-Extended

Electric 

Vehicles

(ReEV)

2009 2010 2011 2012 2013

R

H

26

Dodge

RAM 1500

HEV Gen 1

25-27 mpg

ENVI #3

ReEV (or HEV)

55-65 mpg

ENVI #1

BEV

>200 mpg

ENVI #2

City EV

>200 mpg

6

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 #4ENVI #4

ReEV

>45 mpg
Innovation and Features to Meet Customer Needs

• Chrysler has continuously invested in innovation that meets real customer nee

some examples of current or planned innovations:

• uconnect: this is Chrysler’s umbrella for technologies addressing consumer ne

connectivity and information.

– uconnect builds off of Chrysler’s hands-free Bluetooth communication sys

Backseat TV, and our 30 gigabyte multimedia infotainment system with n

real-time traffic monitoring.

– Dealer-installed Mopar systems now can turn a vehicle into a Wi-Fi hot sp

– As an example of a uconnect feature that is coming: a “smart” phone can 

to start the vehicle, adjust power windows and locks and set vehicle tempaddition, an in-vehicle camera can monitor security of the vehicle. If a vehstolen, the phone can even disable the vehicle and locate it using satellite 

• Blind Spot Monitoring: introduced on 2009 Chrysler Town & Country and Dodg

Caravan minivans, this system detects a possible unseen vehicle when chang

• Active Transfer Case and Front Axle Disconnect System: new on the 2009 Ch

Dodge Charger, this system offers the efficiency of a two-wheel drive system aand performance of all-wheel drive when needed.

• Rear Cross Path: this system, available on 2009 minivans, notifies the driver o

their path when backing up.
Chrysler Has Continuously Invested In Innovation And 

Features To Meet Customer Needs

Rear Cross Path informs the 

vehicle crossing its path (Chrysle

in 2009

Blind Spot Monitor alerts the dri

in the blind spot to avoid a

uconnect is Chrysler’s umbrella for technologies 

addressing the consumer need for connectivity

& information

Example: Chrysler only Sirius back-seat TV 

Active Transfer Case and Front Axle 

Disconnect System: Enables improved fuel 

economy and AWD mode
Innovation - Chrysler 200C / Connectivity

• Chrysler has set itself apart over the years based on its ability to apply its engi

expertise and spirit of innovation to building emotionally compelling, high-value trucks.

• The Chrysler 200C EV Concept is a Range-extended Electric Vehicle that show

Chrysler brand’s future direction.

• The 200C EV’s design evokes a timeless beauty that marries the organic form 

language of the Company’s design roots with a level of sophistication and technever before embodied so elegantly in a Chrysler vehicle. 

• The vehicle also showcases Chrysler’s “uconnect” future – a host of unique, tre

innovations that will ultimately provide unprecedented convenience to consum

• To cite one example, a “smart” phone can be programmed to start the vehicle, 

power windows and locks and set vehicle temperature. In addition, an in-vehic

can monitor security of the vehicle.

• If the vehicle is lost or stolen, the phone can even disable the vehicle and loca

satellite imaging.
Automotive Innovation – Chrysler 200C Presented at 

2009 Detroit AutoshowShowcasing Connectivity Features & Innovative Range-Extended Electric Driving
Next Generation Jeep Grand Cherokee

• Chrysler’s revenue in the near term will get a boost with the debut of a redesig

Jeep Grand Cherokee. 

• Jeep is an iconic American brand whose roots go back to World War II, when t

military needed a go-anywhere, do-anything vehicle to support American troopevery theater of the war.

• Today, Jeep is one of the best-known and strongest automotive brands in the w

• Jeep Grand Cherokee set the trend as the first luxury SUV.• The new fourth-generation Jeep Grand Cherokee will be built in the United Sta

will feature improved fuel economy and a best-in-class interior.
Short-term Revenue Coming From New Grand 

Cherokee in 2010 ....

Fuel Economy

Fuel Economy

19%

19

Improvement

Improvement

(2010

(2010-2012 MY)

2012 MY)

Co

Co

40% be

40% bet

a

a
All- New Chrysler 300

• Chrysler 300 is the Company’s flagship sedan.• The Chrysler 300C has won more awards than any car ever – including North A

of the Year, Motor Trend Car of the Year, Automobile Magazine’s Automobile oand Car and Driver’s Ten Best list.

• The next generation Chrysler 300 will feature stylish new exterior and interior d

improved fuel efficiency and unprecedented “uconnect” connectivity.

• Powertrain options will include an all-new fuel-efficient six-cylinder engine in ad

HEMI eight-cylinder engine. The HEMI engine features Chrysler’s Multiple DispSystem (MDS) that automatically deactivates engine cylinders for enhanced fu

• Safety features available on the new Chrysler 300 include: 

• Rear Cross Path and Blind Spot Monitoring systems to warn drivers of un

• Electronic Stability Control, all speed traction control, and four-wheel anti

• Energy-absorbing steering column, rear-sill reinforcement and structure, 

side-curtain and seat mounted side air bags. 
.... and the New Chrysler 300 in 2010

Most Awarded New Car in Automotive History!

Fuel Economy

Fuel Economy

22%

22

Improvement

Improvement

(2010

(2010-2012 MY)

2012 MY)

Co

Co

40% be

40% bet

a

a
Chrysler LLC Product Launch Cadence

• Chrysler has continued to make substantial investments in new products and 

will launch 24 new vehicles during the next 48 months – eight of these new prthe next year and a half.

• This means the Company will renew more than 60 percent of its total sales 

market segments, with vehicles that include the next-generation Jeep® GrDodge Charger, Dodge Durango, Chrysler 300 and several exciting new small 

• Electric drive will be a primary path to developing clean vehicles for all Chrysle

• Led by Chrysler’s internal advanced alternative propulsion vehicle developme

“ENVI,” the Company is making rapid progress and will have 66 ENVI advanelectric-drive vehicles in fleet service this year.

• The first Chrysler electric-drive vehicle will be available for retail customers 

additional models in production by 2013.
Ram LD Pickup

Journey Midsize 

Crossover

Routan Lg. MPV 

Contract Mfg

Challenger Fullsize

Coupe

Gr.CherokeeFullsize SUV

Durango 

Fullsize SUV

EV Roadster

Charger Full size 

Sedan

Ram Pickup 

HEV Gen I

Compact SUV & ReEV

2008 2009 2010 2011 2012 2013 201

B Hatch (Int’l)

Ram 2500 MD &

3500 HD Pickups

Ram Cab Chassis CV

DCUV

Contract Mfg.

Calendar Year

Midsize MPV

Midsize FWD UV

Gr. Cherokee HEV Gen II

Ram HEV Gen II

GEM

Peapod NEV

Chrysler 300C 

Fullsize Sedan

Compact 

Sedan

Mini-compact 

BEV

Comp

Lifestyle Truck

Fullsize/Large MPV 

& ReEV

Midsize Sdn. HEV 

B Sedan (LAM) A Jeep 2WD & AWD

LD Commercial

Van

Large Pickup 

Contract Mfg

Aspen Fullsize SUV HEV

Durango Fullsize SUV HEV

Chrysler Product Launch Cadence With the Addition of Fiat’s Vehicles Allows Us to Meet Customer Demands

Midsize Sedan

B Hatch

25-28 

mpg

25-28 

mpg

21-25 

mpg

38 

mpg

A Hatch

Contract Mfg.
Blank
Manufacturing Plan Objectives

• Continue Plant Health & Safety Improvement Record• Continue Manufacturing Productivity Leadership

– Best Manufacturing Hours per Vehicle (HPV) in 2007– 2008 not published– Competitive hourly labor cost

• Objective of Fiat alliance is to improve U.S. job situation 

– no reduction forecasted

• Add shifts to handle capacity increase• Capital improvement – new product mix and implementation productivity resul

savings over original submission
Chrysler Health and Safety

Record of Continuous Improvement• Chrysler incorporates two primary metrics to measures its health and safety re

Work Day Incident Rate (LWDI) and Incident Rate. Both are monitored and mfederal governing bodies. 

• The LWDI is a widely used injury indicator that measures the rate of missed o

activity workdays associated with injury and illness per 100 employees. 

• Incident Rate, as defined by OHSA, is the number of incidents resulting in day

work for each 100 full-time employees per year, based on 2,000 hours worked employee per year.

• National Safety Council has recognized Chrysler facilities for improved and be

health and safety performance for a number of years.

• Excellence in health and safety performance helps stabilize, and even lower C

costs.

• Chrysler’s record shows continuous improvement in health and safety.
2.1 

2008 Industry Average Rate = GM, Ford, Toyota, Honda & Daimler AG/U.

7.77.1

Chrysler Health and SafetyRecord of Continuous Improvement

• Occupational Excellence – Lost Work Day Incident (LWDI) 50% SIC (Standard Industrial 

Classification System) with 32 Qualifying Locations

• Significant Improvement – 20% LWDI with 24 Qualifying Locations

• Perfect Record – Zero LWDI with 10 Qualifying Locations• Safety Leadership – 5 years Zero LWDI - Memphis PDC

• Million Work Hours – Zero LWDI - Pilot Process Verification Center & Memphis PDC

U. S. Incident Rate U. S. Lost Workday 

02468

101214

2000 2001 2002 2003 2004 2005 2006 2007 2008

0

0.5

1

1.5

2

2.5

3

2000 2001 2002 2003 2004 200
Manufacturing Productivity 

Harbour Actual• Chrysler manufacturing productivity improved by 31.4 percent over the last se

taking nearly fourteen hours out of the average time it takes to assemble a ve

including its major components.

• In 2007 alone, Chrysler improved 7.7 percent, with total HPV of 30.37, tied in 

America productivity with Toyota to become the benchmark.

• Industry productivity data for 2008 are not yet published, however HPV deterio

expected for the entire industry, due to significant decrease in volumes.
Manufacturing Productivity 

Harbour Actual

Hours Per Vehicle(Assembly, Stamping, Engine & Transmission)

44.28

40.60

32.90

37.42

35.85

33.71

253035404550

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200

44.5940.5337.5930.8829.54

% of Improvement

8.3%

7.8%

4.2%

6.0%

2.4%

2007 HARBOUR RE

H

07’ Chrysler 07’ Toyota 07’ Honda 307’ GM 307’ Ford 3

33

Chrysler is the Most Efficient Automaker in North America
Chrysler Hourly Labor Cost Projection 

Annual and Per-Hour-Worked Basis• Chrysler UAW hourly wage rates were based upon previous labor agre

of an industry that had the ability to price vehicles competitively in ordeoperational costs, including labor wages. 

• As a result of a landmark labor agreement with the UAW in 2007, Chry

a dramatic decline in the hourly labor cost per employee in two phases

– VEBA (Voluntary Employee Beneficiary Association), beginning in 

– Hiring of employees at the Tier II hourly wage structure, which wa

2008. 

• The VEBA shifts a significant cost from current employees and retirees 

Chrysler's cost structure to a third-party organization. 

• As sales increase and the need to add production/shifts back at Chrys

plants, a hiring opportunity will include a new Tier II wage structure.
Chrysler UAW Hourly Labor Cost Projection

(Per Hour Worked Basis)

Existing contract provides for Tier II wagesand benefits ($30/hr) for up to 20% of the workforce

• VEBA 

• 20% Tier II

83.2M 76M 55M

• VEBA

Implemented Implemented

• Tier II Not

Implemented

$54.00

$60.00

$74.00/hr $73.88/hr $75.68/hr 

2006

Actual

2007

Actual

Current State Post VEBA 80%Tier I /

20% Tier II

Annual 

Hours Hours 

Worked

$605M Savings 

$605M Savings 
Blank
Procurement Plan

• Background: Purchasing Activity• Supplier Concessions• Risks to Plan• Procurement Summary
Blank
Procurement Plan –

Background – Purchasing Activity

($ Millions)

2008 Annual Value of Business 88% of Purchase

in NAFTA Regi

Mexico

17%

Latin America

1%

CE Europe

1%

W Europe

6%

Japan

2%

Low Co

2

Non-Production, 

5.1

Service, 1.2

Logistics, 2.5

Tooling, 0.9

Purchased 

Components, 25.6

Raw 

Materials, 3.3

Total AVOB: $38.6B

96% of Chrysler’s Top 1

(80% of AVOB) S

with Either GM o
Procurement Plan – Supplier Concessions

• Base plan assumes $75M net savings in 2009.• Concessions:

– Price reduction effective April 1, 2009– No (non contractual) material price increases in 2009– Shared savings on supplier generated cost savings ideas– 5% reduction continues for non-production material

• Letter to suppliers – January 26, 2009.• An incremental $75M cost reduction in 2009.
Procurement Plan – Supplier Concessions

Chrysler Base Plan

Procurement Plan yields 

$150M net savings in 2009

($ Millions)

$75 $75 

$75

$225 

$150

2009 2010 2011 2012

Chrysler Net Cost Reduction 0.25% AnnuallySupplier Concessions

$75 

$300 

$75 
Procurement Plan – Risks to Plan

• U.S. supply base viability is tenuous• Strong negative pressures on supplier cash flow

– Significant volume reductions– Lack of December & January OEM production creates Accounts Receiva

suppliers in February & March while funding is required to support produc

– Sub-tier suppliers aggressively shortening payment terms– Financially troubled suppliers continue to grow – now 22% of Chrysler’s

spend
Procurement Plan – Risks to Plan

(illustrative)Payment Estimates: Chrysler, Ford & GMSource: Ducker Worldwide 

Lack of December and January OEM Production 

Creates A/R Gap for Suppliers in February and March 

While Funding is Required to Support Production

Sept Nov Jan March May

($ Millions – est.)

Payments to SuppliersSupplier Expense

Cash 

gap

Cash 

gap

0% 10% 20% 30% 40% 

Yes

No

Sub-tier Suppliers Aggressively S

43% of Tier 1 Suppliers Have Rece

Sub-tiers For Payment Term 

Responses: 95Source: Original Equipment Suppliers Association (OBarometer January 2009 
Blank
Procurement Plan – Risks to Plan

Financially Troubled Suppliers Continue to Grow – Now 22% of Chrys

2.1% 2.1% 3.1% 2.8% 3.1%

6.0% 

1.2% 1.1% 2.8%

7.2% 8.0%

7.0%

6.9% 7.6%

4.3%

7.4%

8.2%

7.6%

0%5%

10%15%20%25%

Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 

High RiskRiskConcern

Note: Data as of 2/6/2009 
• Guarantee of OEM Accounts Payable

– Enables us to maintain current payment terms for all suppliers versus the 

payment pull ahead required by certain suppliers who continue to threate

ship”, which started in Q4 2008; immediate cash benefit of $166M.

– Allows and encourages lenders to cooperate with their supplier customer

• “Quick Pay Program”

– Allows suppliers to factor receivables if they choose to do so.– Allows some suppliers to clear covenant hurdles with their lenders

• Direct Loans

– Relieves Chrysler from cash burden of funding DIP loan for numerous su

Reduces Cash Assistance for Troubled Suppliers by more than $5

How Government Assistance of Suppliers Helps US
Procurement Summary

• Variable cost savings achievable – accretive to Viability Plan• Industry conditions now force OEMs to fund elements of future programs • Industry conditions require substantial and coordinated restructuring of su

– OEMs must concentrate business in “surviving suppliers”– The U.S. Government may have to provide liquidity for automotive su

ensure an orderly consolidation

Availability of Credit is Vital to Orderly Reorganization of Industr
Blank
VII. Potential U.S. Industry Consolidation Study
• A U.S. Industrial Consolidation would create a company better positioned to c

with Toyota and other non-U.S. automakers.

• Ability to reduce costs results in significant improved competitive positioning th

the Business Cycle

– Platform Consolidation and Capacity Rationalization– Research and Development Synergies– Elimination of Duplicate Corporate and Operational Staff– Purchasing Synergies– Sales and Marketing Efficiencies

• Cost synergies will release capital which can be deployed for further technolog

innovation and potentially reduce DOE 136 funding.

– Green Technologies– Next Generation Vehicles

• Combining the Finance Companies would give Chrysler’s dealers and custom

to deposit funding.

U.S. Industrial Consolidation ExampleQualitative Benefits

Source: J.P. Morgan
U.S. Industrial Consolidation Example

Estimated Synergy and Benefits

($Billions)

Area Approach Cash Flow Impact **

Total 09 – 16 

Purchasing Combined Global Sourcing of over $100 billion 

allowing for supplier consolidation and common parts

Product / Platform and PowertrainSharing

Common platforms and engineering with common powertrains to reduce capital and cost

Distribution Global growth through focused brands and 

international network

Other Opportunities Manufacturing, logistics, advanced technology, and 

overall fixed cost synergies

$36 - $54

* discounted for lower future industry assumptions

* 

Source: J.P. Morgan

Combined Synergies Realized In Aggregate By Both Compan
Blank
VIII. Orderly Wind Down Scenario
Rejection of Chrysler’s Funding Request Leads to 

Ultimately Higher Government OutlaysFailure to grant incremental Government funding request and concessions wChapter 11 with DIP financing estimated at $24 billion. 

Inability to secure $24 billion of bankruptcy DIP financing leads to liqui

to 30 month period with the following consequences:

• 29 manufacturing facilities and 22 parts depots closed immediately.• 40,000 direct Chrysler U.S. employees lose their jobs.• 3,300 dealers with 140,000 employees go out of business.• $7 billion in outstanding auto supplier invoices go unpaid.• 31 million vehicle owners lose significant value, warranties, parts, an

Government would be saddled with enormous social and economic cos

• Risk of U.S. Auto Industry collapse.• 2-3 million U.S. jobs lost nationwide.• $65 billion of personal income taxes lost over first 3 years.• $55 billion of social security receipts lost over first 3 years.

Sources: Center for Automotive Research (Nov ’08); IRS Data Book (2007); Company Records 
Loan Request Considerations

Granting Loan Request for $5 Billion is in Best Interest of U.S. Taxp

Sources: Center for Automotive Research (Nov ’08); IRS Data Book (2007); Company RecordsNote: Total Taxpayers = Estimated 140 Million individual income tax filings; See appendix for detailed calculations

CHAPTER 11 CHAPTER 11

RESTRUCTURING

• No $25B DIP Financing 

Available

• Customers Will Not Buy 

Vehicles

COMMUNITY COMMUNITY 

DISTRESS DISTRESS

• 3,300 Dealers Close, resulting in 

140,000 Jobs Lost

• $100B Annual Sales Disappear 

From Local Economies

I

I

• Sup

• Com

• 2-3 

• $150B Ann

• 31.4 Mi

Can

CHAPTER 11 CHAPTER 11

LIQUIDATION

Gone: 

• 40,000 Chrysler U.S. Jobs

• $35B Annual Supplier Payments 

• $20B Healthcare Obligations 

• $7B Payables 

• $2B Annual Pension 

Payments

NO GOVERNMENT 

SUPPORT

Domestic Aut

U.S. Governm

per U

Welfare & UnempLost Social SecurReceiptsLost Personal IncTaxes 

Total ($9B)

Current Request ($5B)Dec ’08 Loan($4B)

Chrysler Continued Operations 

Cost per U.S. Tax filer for 

Government Loans

WITH GOVERNMENT 

SUPPORT

$65

$29$36
Blank
Continuing Production DIP Forecast

Cash Flow Summary

(amounts in $ millions) 

4/30/09 5/31/09 6/30/09 7/31/09 8/31/09 9/30/09 10/31/09 11/30/09 12/31/09 1/31/10 2/28/10 

US SAAR (planned) 10,700 10,700 10,700 10,900 10,900 10,900 11,200 11,200 11,200 11,500 11,500 

 

Chrysler Share (US) 5.0% 6.0% 6.0% 6.0% 6.0% 6.0% 7.0% 7.0% 7.0% 7.0% 7.0% Monthly All World Shipments 63 75 75 76 76 76 92 92 92 94 94 

 

Gross Revenue / Unit 25,219 25,219 25,219 25,219 25,219 25,219 25,219 25,219 25,219 25,219 25,219 

 

MOPAR / Unit 3,999 3,332 3,332 3,271 3,271 3,271 2,729 2,729 2,729 2,658 2,658 

 

Net Revenue / Unit 23,374 22,841 22,841 22,792 22,792 22,792 22,358 22,358 22,358 22,301 22,301 

 

Variable Profit / Unit 2,568 2,981 2,981 3,019 3,019 3,019 3,355 3,355 3,355 3,399 3,399 

 

MOPAR / Parts 250 250 250 250 250 250 250 250 250 250 250 

 

Gross Revenue 1,577 1,892 1,892 1,927 1,927 1,927 2,310 2,310 2,310 2,372 2,372 

 

Discounts / Incentives (365) (428) (428) (435) (435) (435) (512) (512) (512) (524) (524) 

 

Net Revenue 1,714 1,461 1,714 1,742 1,742 1,742 2,048 2,048 2,048 2,098 2,098 

 

Variable Costs 1,301 1,490 1,490 1,511 1,511 1,511 1,741 1,741 1,741 1,778 1,778 

 

Variable Profit 224 161 224 231 231 231 307 307 307 320 320 

 

Fixed Costs (Cash) 652 652 649 652 663 679 649 655 654 657 654 

 

EBITDA (429) (492) (426) (422) (432) (449) (342) (348) (346) (338) (334) 

 

Recurring Operating Expenditures

Capital Expenditures 170 170 167 136 218 243 118 98 105 202 181 

 

Restructuring Payments 40 40 40 40 40 40 40 40 40 33 33 

 

Taxes 17 17 17 17 17 17 17 17 17 17 17 

 

 226 227 224 193 275 300 175 155 162 251 231 

 

Cash Flows Related to Bankruptcy

Inflows

Retiree Healthcare - - - - - - - - - - - 

 

Rabbi Trust Access - - - - - - - - - - - 

 

FINCO 500 - - - - - - - - - - 

 

 - 500 - - - - - - - - - 

 

Outflows

Adequate Protection (1st Lien Interest) 37 37 37 37 37 37 37 37 37 37 37 

 

DIP Interest - - 29 52 59 66 73 88 93 99 107 

 

DIP Line Fees 250 - - - - - - - - - - 

 

Employee Incentive Plan - - 10 - - - - - - - - 

 

New Warranty Fundings 63 75 75 76 76 76 92 92 92 94 94 

 

Professional Fees Disbursed 1 11 9 8 10 10 10 10 10 10 10 

 

Required Vendor Payments - 2,400 - - - - - - - - - 

 

Utility Deposits 65 - - - - - - - - - - 

 

Pre-Funding of Trust Taxes (4) (4) (2) - - - - - - - - 

 

 2,519 412 158 174 183 190 212 226 232 241 248 

 

Working Capital Related Cash Flow

Floorplan Financing 1,240 1,544 2,142 106 - - 1,149 - - 186 - 

 

Trade Credit (457) (79) - (9) - - (96) - - (15) - 

 

 1,465 783 2,142 97 - - 1,054 - - 170 - 

 

Net Cash Inflows (Outflows) (4,639) (1,413) (2,950) (886) (890) (939) (1,783) (729) (741) (1,000) (813) 

 

Beginning of Month Cash Balance 1,033 2,446 - - - - - - - - - 

 

Ending (Cash)/DIP Balance* (1,033) 3,607 6,556 7,442 8,332 9,270 11,053 11,782 12,523 13,523 14,336 

 

* Initial DIP draws are supplemented by starting cash balance of $2.4 billion 
Blank
Liquidation Analysis

The Liquidation Analysis results in $929 million and $3.2 billion available to pay credit

recovery and higher recover scenarios, respectively. A summary of the assumed cost of tassumed proceeds from asset sales is shown below:

($ Millions)

Recovery Scenarios

Lower High

Forecasted U.S. Cash at Filing (April 1, 2009) 1,340 $ 

$ 

Wind Down ExpensesPayroll Related Costs (1,999) (Plant Maintenance and Security (545) Bankruptcy Related Costs (195) Total Liquidation Costs (2,739) (Cash/(deficit) before Asset Sales (1,399) Assumed Proceeds from Asset Sales 2,328 Assumed Proceeds Available for Claimants before Causes of Action $ 

929 $ 
Blank
Liquidation Analysis – 1st Lien Lender’s Recovery

Recovery to First Lien Lenders Lower Higher

Total Assumed Proceeds Asset Sales $ 3,817 2,328 $ 

Less: Proceeds allocated to US Treasury

Mopar Inventory (149) (261)Real Estate (21) (43)

Total Assumed Proceeds to First Lien Lenders 2,157 3,513

Projected Cash at April 1, 2009 1,340 1,340Total Assumed Proceeds to First Lien Lenders 3,497 4,853Total Wind down Costs (2,739) (1,917)

Wind down Costs Allocated to US Treasury 5 10

Net Wind down Costs Allocated to First Lien Lenders (2,734) (1,907)Net Assumed Proceeds to First Lien Lenders 763 2,947First Lien Lender Secured Claims at Filing $ 6,904 6,904 $ 

Percent Recovery to First Lien Lenders 11% 43%

NPV of Assumed Proceeds to First Lien Lenders (a) 654 $ 2,605 $ 

Percent Recovery to First Lien Lenders 9% 38%

(a) Calculated using a 6.17% annual interest rate

($ Millions)

Recovery Scenarios
Blank
Liquidation Analysis – U.S. Treasury Recovery

Recovery to US Treasury Lower Highe

Assumed Proceeds from Asset Sales

MOPAR Inventory Liquidation 149 $ 2

$ 

Chrysler Realty Liquidation 21 

Proceeds from Liquidations 171 3

Wind down Costs Allocated to US Treasury (5) (

Net Assumed Proceeds to US Treasury 166 2US Treasury Secured Claims at Filing $ 4,2

4,267 $ 

Percent Recovery to US Treasury 4% 

NPV of Assumed Proceeds to US Treasury (a) 146 $ 2

$ 

Percent Recovery to US Treasury 3% 

(a) Calculated using a 5% annual interest rate

($ Millions)

Recovery Scenarios
Blank
III. Hypothetical Recovery Analysis

Expected Recovery to First Lien LendersThe previous analysis showed the hypothetical ranges of recoveries assuming low a

scenarios. It is likely that actual recoveries will fall within that range. Assuming that the as

at 85% of the High Scenario and expenses are the average of the Lower and Higher S

“likely” recovery would be $2 billion or 29% as follows:

($ Millions)

Total Assumed Proceeds to First Lien Lenders - Higher Scenario $ 3,513Assumed 85% recovery 2,986 $ Cash at April 1, 2009 1,340Average of Expenses - Lower and Higher Scenario (2,320)Net Assumed Proceeds to First Lien Lenders $ 2,006First Lien Lender Secured Claims at Filing $ 6,904Percent Recovery to First Lien Lenders 29%NPV of Assumed Proceeds to First Lien Lenders (a) 1,720 $ Percent Recovery to First Lien Lenders 25%(a) Calculated using a 6.17% annual interest rate, based on 30 months
Blank
IX. Chrysler LLC Request
Blank
Chrysler Requests for Funding and Strategic Alliance 

to Execute Restructuring Plan

Request: Government loan of $5 billion

by March 31, 2009 for working capitaland other operating expenses

Reason: (1) Unusually severe and swift industry 

decline in demand for new vehicles has created shortage of cash from sales

(2) Money is needed urgently

to maintain current operations

(3) Rejection of request would

result in insolvency and potentially adverse ripple effects throughout the autoIndustry and U.S. economy

$5 Billion Funding

Request: Government approval of Fia

acquiring an ownership intein Chrysler- initially 35%- option in increase to 55%

Reason: (1) Prior approval is required b

Loan and Security Agreeme

(2) Accelerates Chrysler’s acce

to key technologies, small fefficient vehicles, and new international markets

(3) Rejection of request would

result in expensive and timeconsuming development ofequivalent technology,products, and markets

Strategic Alliance With F
 

 

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 

groups1.

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