Chrysler Restructuring Plan for Long-Term ViabilityFebruary 17, 200973%of our totalSalesare within the U.S.61%of our vehicleProductionis in the U.S.74%of our totalEmployeesare U.S. based78%of ourPurchased Materialis from U.S. based suppliers62%of all ourDealersare based in the U.S.... is the Quintessential American Auto CompanyU2Blank3Chrysler Restructuring Plan For Long-term ViabilityI. Summary of Strategic Alternatives and Management RecommendationsII. Background and Current State of IndustryIII. Restructuring Plan Assumptions and RisksIV. Financial Business PlanV. Strategic Alliance BenefitsVI. Industrial PlanVII. Potential U.S. Industry Consolidation StudyVIII. Orderly Wind Down ScenarioIX. Chrysler LLC RequestAppendicesTable of ContentsPageI. Summary of Strategic Alternatives andManagement Recommendations9•Chrysler LLC Alternatives 11•Management Recommendations 13•Status of Restructuring Plan / Concessions 15•Alternatives for Addressing Debt 17•Strategic Alliance Synergy and BenefitsOverview19•Next Steps 21•Government Requirements Checklist 23II. Background and Current State of Industry25•Chrysler’s Dec 2, 2008 Viability PlanSubmission27•Transformation and Restructuring Efforts 29•Economic Indicators 31•Credit Crisis 33•U.S. Auto Industry Sales History 35•Chrysler’s Short-Term Cash Needs 39PageIII. Restructuring Plan Assumptionsand Risks41IV. Financial Business Plan45•Chrysler “Stand Alone” Business Plan 47–SAAR Sensitivities 47–Key Metrics and Assumptions 49–Income Statement 51–Cash Flow Statement 55–Balance Sheet 57–Sales and Shipments by Market 59–Fixed Cost Trends 63•Chrysler “Stand Alone” Business Plan2009-2010 Calendar Year Details65–2009 Income Statement – Monthly 67–2009 Cash Flow Statement –Monthly69–2010 Cash Flow Statement –Monthly75–2010 Balance Sheet – Monthly 77–Chrysler Short-Term Cash Needs 79U4Table of ContentsPageV. Strategic Alliance Benefits81•Benefits of Fiat Alliance 83•Fiat Overview 85•Fiat Alliance Proposed Transaction 87•Benefits from Global Scale /Complementary89•Product and Technology Sharing 95VI. Industrial Plan99•Product Leadership Strategy 101•Quality Strategy 103•Fuel Economy Improvements with Fiat 113•Safety, Regulatory, EnvironmentalRequirements115•CAFE Compliance Strategy / CaliforniaZEV Mandate & Strategy117•NHTSA Regulatory Safety Compliance 121•Product Portfolio 123–Vehicle Electrification Plan 125–Innovation & Features 127–New Products & Launch Cadence 131Page•Manufacturing Plan Objectives 137•Procurement Plan 145VII. Potential U.S. Industry ConsolidationStudy157VIII. Orderly Wind Down Scenario161•Liquidation Analysis 167IX. Chrysler LLC Request1755BlankU6List of AppendicesPage1. Continuing Production DIP Forecast A12. Supplement on Stakeholder Concessions A163. Financials A264. Quality Strategy A395. Product Development and Regulatory Compliance A996. Manufacturing A1287. Procurement A1448. Distribution A1579. Center for Automotive Research – Research Memorandum A1757BlankU8I. Summary of Strategic Alternativesand Management Recommendations9BlankU10Credit Availability for Customers/Dealers Isa Prerequisite for Viability Plan (Page 33)Chrysler LLC AlternativesI. “Stand Alone”We believe• Chrysler can be viable on a standalone basis in the short/mid term withthe following assumptions:1. The balance sheet isrestructured to substantiallyreduce current debt and debtservicing requirements (PageU16-17)2. Targeted concessions areobtained from all constituents(Page 15)3. Additional U.S. Governmentfunding of $5 billion and DOE136 funding of $6 billion4. SAAR≥10.1 million units• To be viable on a longer term basis,we believe it is critical that Chryslercontinues to pursue strategicpartnerships / consolidation to be bothoperationally viable (i.e., meet Energyand Environmental Regulations) andfinancially viable (i.e., create anacceptable ROI to shareholders andpositive NPV).• In a sustained U.S. industry below9.1M SAAR, we believe Chrysler LLCwill struggle to be viable and willrequire an additional restructuring andfunding as noted on Page 47.II. Strategic Partnership/Consolidation• In all industry scenarios (SAAR levels),Chrysler will be more viable, both operationallyand financially, with a strategic partner.• Chrysler has signed a non-binding MOU withFiat that will significantly enhance its viabilityby creating additional free cash flow over the2009-16 period, and leverage the advancedpowertrain and small car technology that hasmade Fiat number onein Europe in “low” CO2emissions.• Fiat’s proposal is contingent upon ChryslerLLC restructuring its debt, obtainingconcessions, and receiving adequateGovernment funding.• In a sustained U.S. industry below 9.1MSAAR, we believe even with Fiat, Chrysler LLCwill struggle to be viable and will require anadditional restructuring and funding as notedon Page 47.• Fiat Alliance would create incremental jobs inthe U.S. during first 5 years compared with“Stand Alone”.• There exists further benefits from U.S.consolidation but no clearaction path with GM(Pages U158-159).III. Orderly Wind Down• If Chrysler LLC is not able to successfully:1.Restructure its balancesheet to substantiallyreduce its liabilities,2.Negotiate targeted concessions fromconstituents,3.Receive an additional $5 billion capitalinfusion from the U.S. Government, asrepresented in the “Stand Alone” Alternative,then the only other alternative is for Chrysler tofile for Chapter 11 as afirst step in an orderlywind down.• Chrysler LLC would seek debtor-in-possessionfinancing from both private sector lenders and theU.S. Government. We believe the estimated sizeof the financing need is $24 billion over a twoyear period (Page 165).• Without adequate DIP financing we estimate thatthe 1stlien lenders will only realize a 25%recovery, the US government 5%, while all othercreditors will receive nothing. (Page 171-173)• An Orderly Wind Down will result in significantsocial impact, with 300,000jobs lost at Chryslerand its suppliers and over 3,300 dealers failing.2-3 million jobs could be lost due to a follow-oncollapse in the wider industry, resulting in a $150billion reduction in U.S. Government revenueover 3 years (Page 163).Note: “SAAR” as used throughout this documentstands for Seasonally Adjusted Annual Rate of Auto Industry Sales in the U.S.11BlankU12Management Recommendations13Strategic Choice: Continue “Stand Alone” plan while pursuing an allianceRationale:1. The larger scale and international reach associated with a potential Fiat alliance will facilitate Chrysler’s viabilityand preserve U.S. jobs2. Chrysler has studied three potentialpartnerships overthe past 18 months:•GM: Best option for U.S. Auto Industry from financialand operational perspective but they “took it off thetable”.•Nissan: Investigated alliance and not able to pursue.•Fiat: Submitted a formal non-bindingterm sheet conditioned upon Chrysler:1.Restructuring its liabilities2.Obtaining targeted concessions3.Receiving adequate government funding•Chrysler will continue to explore furtheralliance / partnership opportunities if necessary3. If Chrysler is unable to restructure its liabilities and if further government funding is not forthcoming, the“Orderly Wind Down” alternative would be pursued,however it may have severe social and economicconsequences for both Chryslerand the broader U.S. economyIn any restructuring scenario we believe itis imperative that a percentage of newequity be retained in a trust (temporarily under control of the President’s Designee)to contribute to a new future partnerBlankU14Status of Restructuring Plan / Concessions– Chrysler has a signed tentative agreement withthe UAW with respect to competitive levelcompensation, work-rulesand severance provisionswith U.S. transplants.UAWConstituentStatusCommentsUAW / VEBA– Chrysler has a signed term sheet agreeing to work towards a50% reduction in Chrysler's VEBACash Payment Liability (conditioned onsatisfactory debt restructuring)– Chrysler has requested that the UAW continue towork with us on our request to fund the 2009health care payments out of the existing VEBA, and to modifythe terms of the settlementagreement incl. the pensionpass-through revision andfuture payment streams.Shareholders /2ndLienDebtholders– Both shareholders (Cerberus and Daimler) haveexpressed willingness to(i) relinquish theirequity, and (ii) convert 100% of their 2ndlien debt for equity– These concessions are conditioned on aviable plan and overall restructuringManagementActions*– 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 insurance–Suspended salary merits and bonuses–Suspended 401(k) match–Suspended tuition assistance program–Fully compliant with all government executivecompensation requirementsDealers– Reduced margins and reimbursement programstotaling $350 million annually, implementedFebruary 2, 2009. Dealer rationalization under “Genesis” program mergingall 3 brands under one umbrellaSuppliers– Chrysler requested a 3% price reduction effective April 1.Negotiations are in processCreditors**– Impact of $5 billion of debt and debt service relief required– Alternatives to be pursued (see Page 17)GGGRGGNote: *2008 - 2009**Creditors include the U.S. Government, the 1st lien-bank lenders and the UAW / VEBA15YCurrent DebtStructureTentativeConcessionsAdditional LoanRequestsIndebtedness asProjected in StandAlone Plan1stLien – Lenders / Secured$6.9----$6.92ndLien – Cerberus/Daimler / Secured$2.0$(2.0)----3rdLien – Government / Secured$4.3--$5.3$9.6UAW – VEBA Loan / Unsecured$10.6$(5.3)--$5.3DOE/136 Loan – Government / Secured----$6.0$6.0TOTALS$23.8$(7.3)$11.3$27.8Required Debt and DebtService Relief fromabove Creditor Groups(1),(2)($5.0)Serviceable Debt TOTAL$22.8Debt Composition:Current/Proposed Debt StructureDeleveraging Of Balance Sheet Is Critical For ViabilityNote: 1 – Request of creditor groups could include amortization, maturity and interest rate2 - Creditor groups include the U.S. Government, the 1st lien-bank lenders and the UAW / VEBA($Billions)U16Illustrative Alternatives To Achieving $5 Billion InLiability / Liability Service Reductions•Alternative 1 – Common Stock Conversion–The three remaining creditor groups – one or more – could convert total $5 billion of existing liabilities intocommon equity•Alternative 2 – Preferred Stock Conversion–The three remaining creditor groups – one or more – could convert total $5 billion of existing liabilities intopreferred stock–The terms could include:•Long dated maturity withno mandatory prepayment•Dividends paid in-kind (PIK) (non-cash)•Optional redemption by companyat discount to par plus PIK•Conversion into common stock atmaturity at market valuations•Alternative 3 – Modified Debt Conversion–The three remaining creditor groups – one or more – could restructure the $5 billion of liabilities as follows:•The legal priorities ofthe 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 througha longer dated maturity•No principal amortization wouldbe due until final maturity•Prepayment of principal outstanding upon change of control•Alternative 4 – Cash Out–The three remaining creditor groups – one or more – couldagree to extinguish the $5 billion of liabilities for acash payment in lieu of equity conversionThe above alternatives, if implemented, would result in a viable plan toChrysler. There may be otheralternatives that wouldresult in a viable Chrysler.Note: - The three remaining creditor groups are the U.S. Government, the 1stlien-bank lenders and the UAW / VEBA- Alternatives 2 – 4 have not been discussed with the creditor groups17BlankU18Fiat Strategic Alliance Synergy And Benefits OverviewAreaApproachCash Flow ImpactTotal ‘09-16 $(Billions)EBITDA ImpactTotal ‘09-16 $(Billions)Products/ Platform Sharing2 million products localized or sold inNAFTA and exported to global markets$1.4$2.1DistributionNew Chrysler markets adding 393,000units, Alfa Romeo distributed in NAFTA$1.3$1.3PurchasingIntegrate sourcing with Fiat Group$3.2$2.8Other OpportunitiesPowertrain, Technology, Logistics, SG&AExpense, other, Funding for NSCsprovided by Fiat$1.0$1.2TOTAL SYNERGIES *$6.9$7.4Adds 7 New Small Vehicles/PlatformsAnd 6 New Powertrain CombinationsTo Enhance U.S. Energy Independence And EnvironmentallySustainable 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 potentialfor better efficiency spending of DOE funds.Alliance With Fiat Benefits **2009 2010 2011 20122013 2014 2015 2016EBITDA Synergy Benefits $0.0 $0.0 $0.3 $1.2$1.3 $1.5 $1.6 $1.5Cash Synergy Benefits (cumulative)($0.1) ($0.1) ($0.2) $1.0 $2.4 $3.9 $5.5 $6.9The negative cash impact in thefirst three years is due to spending approx $1B in new platforms and powertrain technology offset by synergy savings19BlankU20Next Steps21•Begin discussions with the President’s Designee on terms and conditions to an overallrestructuring.•We will seek a response in the near term fromcreditor groups on their willingness to provide the$5B in concessions via a liability for equity swap, interest holiday, and/or equivalent liabilityservice relief.•We must find a long term financing solution for our customers and dealers.•If an additional $5B of government fundingis received and creditors agree to liabilityrestructuring, we will seek Fiat’s concurrenceand willingness to continue participation in analliance (management believes it will be decided based upon level of liability reduction).Additionally, Chrysler will workdiligently to finalize negotiationswith all other constituents andpursue a simultaneous closing with Fiat, U.S.Treasury, Daimler, Cerberus, the UAW and ourcreditors by March 31, 2009.•If our liabilities are not restructured and U.S.Treasury additional funding is not received byMarch 31, 2009, Chrysler LLC willnot have ample liquidity to operate and will therefore moveforward with Alternative III “Orderly Wind Down” only after appropriate board approval andnotification to U.S. Treasury.BlankU22Government Requirement ChecklistChrysler Is Complying With All Aspects Of The Restructuring Plan RequirementsRestructuring Plan Requirements inLoan and Security Agreement dated Dec 31, 2008Chrysler Execution Status ofRestructuring Plan RequirementsRef. PageSubmit a Restructuring Plan by Feb 17, 2009 for Chrysler toachieve and sustain:The Restructuring Plan in this document describes Chrysler’sprogress and objectives for:•long-term viability•growth and profitability45-79•international competitiveness•partnering to penetrate offshore markets91•energy efficient vehicles•powertrain fuel efficiencies113–119The Plan includes specific actions intended to result in:•rationalized costs, capacity, and capitalization with respect tomanufacturing 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 vehiclesChrysler has been executing a restructuring strategy since Feb2007 that is:•lowering variable and fixed costs through workforce reductions,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 vehicles15,29,149101-135U5451, 57,67, 71, 73, 77Executive Summary117119Demonstrate Chrysler is undertaking best efforts to: Chrysler has been exercising best efforts and has completed:•reduce hourly employee compensation to levels competitivewith U.S. transplants and apply U.S. transplant work rules toemployees 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 thatare 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 debt•Chrysler has no public bonds. We have requested the threecreditor groups set forth on page 15 participate in reducing ourdebt and debt service by $5B.15, Appendix 215, Appendix 215, Appendix 215, Executive Summary15,17, Exec. Summary99923Note: The three remaining creditor groups are the U.S. Government, the 1stlien-bank lenders and the UAW / VEBABlankU24II. Background and Current State of Industry25Original Request for Chrysler’s $7 Billion Federal BridgeLoan was Based Upon the Following Assumptions•Chrysler based its initial Viability Plan on reasonable assumptions at the time of theDecember submission, including the following :•SAAR levels of 11.1 million and 12.1 million in 2009 and 2010, respectively, and13.7 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 10.7% in2010 through 2012.•Worldwide sales of 1.79 million units in 2009, 1.86 million in 2010, 2.15 million in2011 and 2.15 million in 2012.(assumptions no longer valid)•Chrysler to be awarded $6 billion of the $8 billion requested through 2011, from theDOE 136 funds designated for developmentof increased fuel-efficient vehicletechnology.•Chrysler assumed that Chrysler Financialwould be viable and could have adequatefinancial capacity to support our wholesaleshipments and retail sales assumptions (weneed a financial companysolution to be viable).•The Viability Plan demonstrated that Chryslerwas viable with the requested $7 billionFederal loan at the assumed SAAR levels.•Based on the Viability Plan submission,the Treasury Department approved the loanrequest and funded $4 billion ofthe $7 billion requested.U26Timing of Targeted Concessions by year ($4.55 Bil)$1.25$1.1$1.1$1.1Chrysler Viability Plan Submitted Dec 2, 2008Key Metrics and Assumptions1) Viability Plan concessions have been reflected in Fixed Costs,EBITDA and Cash Flow (2008 actual does not include impact of VEBA).2) Cash year-end balance for 2008 was ($0.6 B) lower due to Mexico wholesale issue and Daimler payment issue (which we believe to be a timing issue)3) Includes $7.0 billion of Government funding in January 20094) Includes $1.0 billion principal payment to the U.S. Government at 12/31/20122008 2009 2010 2011 2012Unaudited Plan Plan Plan PlanActuals●U.S. Industry SAAR (Millions)Light Duty Only13.2 11.1 12.1 13.7 13.7●Worldwide Shipments (000 units) 2,065 1,727 1,938 2,362 2,344●U.S. Market Share (Retail & Fleet) 10.8% 10.4% 10.7% 10.7% 10.7%●U.S. Dealer Inventory (000 units) 398 355 312 306 306●U.S. Days Supply 157 121 98 85 85●MCM Savings (1.1%) 0.25% 0.25% 0.25% 0.25%●Net Pricing (1.0%) (0.5%) (0.5%) (0.5%) (0.5%)●Capex (Bils) $2.3 $2.3 $2.3 $2.6 $2.6●Fixed Cost including VEBA (Bils)1)$10.9 $9.2 $8.1 $10.2 $10.2●EBITDA (Bils)1)$0.3 $3.3 $5.6 $4.9 $4.7●Cash - Year End Balance (Bils)2.52)7.53)9.83)11.43)12.54)27Aggressive Restructuring Will Reduce Chrysler’sFixed Costs by $3.8 Billion by 2009•Significant restructuring actions have already been initiated and cash savings are currently being realized.Beginning in 2007, Chrysler acted swiftly to reduce fixed costs. Today, the Company’s fixed cost are at thelowest level since 1994.•Further restructuring actions continue, and through 2009 fixedcosts will have been reduced by $3.8 billion.Chrysler has eliminated more than1.3 million units (over 30%) of production capacity, reduced total manpowerby 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 toactive and retired employees;•greater information technology efficiencies; and G&A/manpower improvements.•Despite challenging market conditions, Chrysler met or exceeded its operating plan through the first half of2008, and increased manufacturing productivity to become the most efficient automanufacturer in NorthAmerica.•Chrysler also continued to investin product including four major production launches and the introduction ofthree all new electric vehicle prototypes in 2008.U286455364283980100200300400500600700Jun-06 2006 YE 2007 2008Chrysler’s Transformation Effort Had AlreadyBegun Prior To The Current Industry CrisisWorkforce Reduction64.962.761.053.640.737.421.822.121.519.112.912.94.34.54.53.40.80.82004 2005 2006 2007 2008 2009SalaryHourlyTotal Workforce(000s)Supplemental87.076.151.189.391.0Fixed Cost Trend2004 2005* 2006 2007 2008 2009$16.0 B$10.9 B$14.0 B$14.3 B$14.8 B* 2005 excludes impact from sale of Arizona Proving GroundsUS Dealer Year End InventoryUnits (000s)Annual ActualsAnnual Actuals(except June 2006)Annual Actuals40.637.4235.8533.7132.930.372025303540455055601996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Manufacturing ProductivityHarbour Actual(Assembly, Stamping, Engine & Transmission)-$3.8B-247K-7.7%$10.2B54.4TargetTarget

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P l a n ”Broad Economic Decline Has Negatively AffectedBusiness And Consumer Spending•Since our submission on December 2, 2008, the U.S. and worldwide economy has continuedan unprecedented meltdown.•Personal Wealth, as measured by stock pricesand home values, has declined significantly .•The DJIA declined 11.1% from December8, 2008 through February 11, 2009.•Average home prices/values declined 6% fromAugust 2008 through November 2008 (mostrecent reported data).•Unemployment rates have continued to increaseas companies announced layoffs at historicallyhigh levels: January job loss of 598,000 and U.S.unemployment of 7.6% represent the highestsince 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 creditcustomer.•As a result of the continued decline in SAAR levels in December and the continued lack of creditavailability, the financial health of the dealernetwork and supply chain has continued to decline.•The number of financially troubled dealershas increased 5% in the past 2 months.•The number of potentially troubled suppliershas also risen 11.6%since October 2008.Suppliers that provide nearly 22% of our materials are identified as troubled.U3020%22%23%27%3,3723,3603,3393,29825003000350010%20%30%40%Sep '08 Oct '08 Nov '08 Dec '087,7508,0008,2508,5008,7509,0009,2508-Dec 29-Dec 19-Jan 9-FebDJIA Closing Value175.57172.04168.68165.61163.46160.32157.17154.18140145150155160165170175180Aug'08 Sep '08 Oct '08 Nov '08S&P/Case-Shiller Home Price IndexComposite-10Composite-20U.S. Unemployment Rate1,5478247676515504006008001,0001,2001,4001,600Sep '08 Oct '08 Nov '08 Dec '08U.S. Housing Starts(000’s – SAAR)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 '09Chrysler Suppliers in Trouble(Chrysler Assessment – % of Total AVOB)Chrysler Dealers in Trouble(Chrysler Assessment -- % of Total Unit Sales)Distress“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 = $6.6B10.2%17.4%19.3%20.6%1960-2007Monthly Avg.11.1% Decline in 2 MonthsSteady Drop since 2Q ‘06Rate is ~1/3 of Long-Term Avg.Highest Rate in Nearly 17 YearsExposure Up; Risk Profile WorseFundamentals Weakening asNetwork Shrinks“Weak” DealersNumber ofDealers-74 Dealers in 3 MonthsDue to Decreasing Consumer Confidence, Intent to Purchase Has Taken a Severe Hit ...21.8%Extremely Depressed Economic Fundamentals ContinuedTo Deteriorate At Increasing Rate Over Last 2 Months31Financial Market Woes Infect Auto Financing System•Vehicle financing is generally syndicated through asset backed security (“ABS”) transactionswhich provide liquidity to the automotive financing companies.•Market conditions have caused credit marketsto seize up and there has been a sharp declinein ABS deals.•Auto related ABS issuances have declined to nearly zero by the 2ndhalf of 2008•Auto leasing essentially ended over-night resulting in lost sales volume of 20%- 25%.•Additionally, the lack of financing availabilityhas affected automotive dealers in two ways:•Lack of retail financing availability hasdirectly reduced their consumer sales.•Lack of floor plan financing has reduced all dealers’ ability to order new cars to hold ininventory.•Both of these factors combine to lower Chrysler’s sales.U32Credit Crisis Strangling U.S. Auto IndustryIssuance of AutoAsset Backed Securities$(Billions)... which Shrinks Available Capitalfor Auto Loans ...$1,224$854$1482006 2007 2008... And Credit Is Difficult To Secure For Those Who Want To Purchase... 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$10.80.00.51.01.52.02.52006 2007 2008

# of Repos (Millions)Repossessions6.8%11.6%15.9%0%5%10%15%20%2006 2007 2008Delinquency Rates are Soaring ...Delinquency Rates

Percent (%)95%85%5%15%75%80%85%90%95%100%2007 2008Auto Loan Interest SpreadOver Commercial Paper RateBasis PointsAuto Loan-% of Down Payment... Leading to Higher Borrowing Costs ......and Higher Down Payment Requirements ..286501301,10002004006008001,0001,2002007 2008RetailWholesalePercentofPurchasedPriceAutoLoansDownPayment73%34%48%30%40%50%60%70%80%Dec'07Feb'08Apr'08Jun'08Aug'08Oct'08Dec'08Chrysler Financial ConsumerFinancing Approval Rates... and therefore Credit Approval Rates areDown 25% Points from the End of 2007Jan‘0933•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 monthlyannualized rate in January 2009.•For Chrysler, this equates toa 580,000 unit decline (at a 10% market share) and approximately$14 billion in lost revenuein less than 12 months.•This unprecedented decline in revenuecreated a near-term liquidity trough.Ford and GM’s pension liabilities also are putting stress on the government. The Pension Benefit Guaranty Corp., whichbails out failed retirement programs, estimated that the U.S. plans had a collective $47 billion deficit last year. Almost halfof that shortfall came from manufacturers including automakers and parts suppliers. The PBGC said it has worked with 13bankrupt auto-parts companies since 2005 to keep their plansfrom failing, and took control of the retirement program atpartsmaker Collins & Aikman Corp. after it went bankrupt in 2007.Auto Sales Declined Globally for all Major AutomakersU34U.S. Auto Industry Sales HistoryUnits (Millions)2009 Forecast Is Lowest Level In Over 40 Years9.510.910.69.911.411.510.312.213.614.411.611.113.314.915.414.211.510.810.512.314.515.716.315.215.814.814.112.513.114.215.415.115.515.516.017.417.817.517.117.017.317.417.116.513.510.10.02.04.06.08.010.012.014.016.018.020.0 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 02 03 04 05 06 07 08 Fo ...35Automakers Historically Operate With NegativeWorking CapitalAutomakers are paid immediately after vehicles are shipped from theirplants (financial institution draft)Automakers typically have 45 – 50 days to pay suppliers for materialsTherefore:Production/ShipmentsAutomakerCash BalanceProduction/ShipmentsAutomakerCash BalanceA Total Of~$50BCash Drain For The Detroit Three In 2008JanDecJanDecNormalEnvironmentCurrentEnvironmentU36200917.217.116.716.616.415.915.816.216.716.416.116.615.615.615.414.814.613.912.613.912.810.910.510.79.89.010.011.012.013.014.015.016.017.018.0

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u c t i o n2008 C.Y.:13.2Units (Millions)640K units lost,640K units lost,approx. $15.5Bapprox. $15.5Bin lost revenuein lost revenuefor Chryslerfor ChryslerDramatic Drop in SAAR(Includes Light, Medium and Heavy Duty)372009 CYAverageest. 10.1M2007 CYAverage16.5M•The weakened economy and lack of financing tocustomers and dealers has significantlyreduced SAAR levels to unprecedented levels not seen since 1963. In preparing itsrestructuring plan Chrysler evaluated 5 potential SAAR levelsOther assumptions include the following:•Additional $5.0 billion in liability and interest relief.•100% of 2ndlien debt converted to equity•$5.3 billion of union VEBA restructured / $5.3 billion converted to equityOriginal RequestCurrent RequestWith Government Support, A “Stand Alone”Chrysler Can Be ViableU38U.S. Seasonally Adjusted AnnualCar and LightTruck ProductionScenario20092010201120122013201420152016A11.112.113.713.713.713.713.713.7B10.1 11.1 12.7 12.7 12.7 12.7 12.7 12.7C10.110.611.111.612.112.613.113.7D10.1 10.1 10.1 10.1 11.1 12.1 13.1 13.7E9.1 9.1 9.1 9.1 11.1 12.1 13.1 13.7Industry No Longer ViableAs Currently Structured7.68.18.69.19.610.110.611.111.612.112.6$0B $2B $4B $6B $8BChrysler’s Short-term Cash Needs Accelerateas the SAAR DeclinesAverage SAAR 2009 – 2012Units (Millions)Scenario D- Incremental $4 BillionTotal $11 BillionScenario A/B Request of $7 Billion- $4 Billion Received- $3 Billion Pending$7 Billion TotalScenario C (Base Plan)-Incremental $2 Billion$9 Billion TotalChrysler LLC Incremental Liquidity Requests(in $Billions)Scenario E- Incremental $6 BillionTotal: $13 BillionDec. ’08(10.7M)Jan.’08(9.8M)What We Need NowFunding Received To Date: $4BApproval of Pending Funding: $3BAdd. New Funding Requested: $2BTOTAL FUNDING: $9B39BlankU40III. Restructuring Plan Assumptions and Risks41Additional Cash Required to AddressRisks to Restructuring Plan• Deteriorating economic conditions, including liquidity crisis in the credit markets and decliningconsumer confidence in the Company’s primary markets, present significant risks to itsRestructuring Plan.• In addition to the major risks of credit availability, supplier solvency, talent attrition, andindustry instability – the following risk factors are constantly being addressed to ensure theCompany’s long-term viability:• Price Erosion– requires increases in vehicle discounts in response to competitivepressures• Product Mix– accelerated shift in demand away from trucks and SUV’s• Market Share– potential erosion of Chrysler’sdomestic market share position tocompetitors• Compliance Costs– increased operating costs due to increasing regulations• Dealer Insolvency– increases in dealer bankruptcies limiting new vehicle distributionU42Risks to Key Assumptions in Restructuring Plan•Erosion of consumer confidence and buying power•Credit unavailability / lack ofaffordable financing for dealers andconsumers•Supplier insolvencies / Supply chain disruptions / Demand for upfrontpayments•Departure of key management talent and recruitment of critical skillworkers (due to compensation limitations)•Industry instability due to failure of major domestic competitor•Going concern opinion from outside auditorsMitigating These Risks Are Essential tothe Achievement of Restructuring Plan43BlankU44IV. Financial Business Plan45BlankU46Notes: - Year-end cash balance reflects the impact of VEBA conversion to equity and lower First Lien debt balance, and also revised loan request ofU.S. Treasury of $5.0 B in baseline scenario (in green), $7.0 B in scenario highlighted in purple, and $9.0 B in scenario highlighted in pink.- Excludes Canadian leasing debt and other financial liabilities, and assumes no Pension Fund contributions after 2011- Numbers may not add due to roundingCURRENTREQUESTChrysler “Stand Alone” Business PlanSAAR SensitivitiesOriginalOriginal Viability Plan SAAR VolumesReceived Original Revised4.0$ 3.0$ 3.0$ 7.0$SAAR (Mils) - Light Duty Only 11.112.113.713.713.713.713.713.7EBITDA (Bils) 3.3$ 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$Original Viability Planwith 1.0 million SAAR Reduction4.0$ 3.0$ 3.0$ 7.0$SAAR (Mils) - Light Duty Only 10.111.112.712.712.712.712.712.7EBITDA (Bils) 2.9$ 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$10.1 SAAR Washington Plan SensitivityWith 0.5 Million Units Growth4.0$ 3.0$ 5.0$ 9.0$SAAR (Mils) - Light Duty Only 10.110.611.111.612.112.613.113.7EBITDA (Bils) 2.9$ 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$10.1 SAAR Washington Plan SensitivityThrough 20124.0$ 3.0$ 7.0$ 11.0$SAAR (Mils) - Light Duty Only 10.110.110.110.111.112.113.113.7EBITDA (Bils) 2.9$ 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$9.1 SAAR Washington Plan SensitivityThrough 20124.0$ 3.0$ 9.0$ 13.0$SAAR (Mils) - Light Duty Only 9.19.19.19.111.112.113.113.7EBITDA (Bils) 2.5$ 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$Gov't RequestRemaining RequestTotal2009 2010 2011 2012Sub Total 2009-2012Total2009-20162009 2010 2011 2012Sub Total 2009-20122013 2014 2015 2016Total2009-20162009 2010 2011 2012Sub Total 2009-20122013 2014 2015 20162016Total2009-20162009 2010 2011 2012Sub Total 2009-2012Sub Total 2009-20122013 2014 20152009 2010 2011 2012Total2009-20162013 2014 2015 2016Total2009-20162013 2014 2015 2016ABCDE47($ Billions)Diminishing SAAR Increases Liquidity NeedsChrysler “Stand Alone” Business PlanCore Assumptions* Represents 70% of requested amountThese are the assumptions included as a partof our Plan that still need to be resolved:•$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 VEBAin 2009 ($0.9 in 2009, Full Liability Transfers to UAW in 2010)•Deferral of VEBA lump-sumrepayment currently scheduledin 2010 until 2011 and beyond (assumes50%, 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)U481) Viability Plan concessions have been reflected in Fixed Costs, EBITDA and Cash Flow2) Cash year-end balance for 2008 was ($0.6 B) lower due to Mexico wholesale issue and Daimler payment issue (which we believe to be a timing issue)3) 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 roundingChrysler NPV = $17.3B2008 2009 2010 2011 2012 2013 2014 2015 2016Unaudited Plan Plan Plan Plan Plan Plan Plan PlanActuals●U.S. Industry SAAR (Millions)Light Duty Only13.2 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●MCM 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%)●Capex (Bils) $2.3 $2.3 $2.3 $2.6 $2.6 $2.6 $2.5 $2.5 $2.5●Fixed Cost excluding VEBA (Bils)1)$10.9 $10.2 $10.2 $10.2 $10.2 $10.1 $10.1 $10.1 $10.1●EBITDA (Bils)1)$0.3 $2.9 $5.0 $3.9 $3.9 $4.4 $4.7 $5.2 $5.6●Cash - Year End Balance (Bils)2.52)9.03)$10.6 $10.811.44)11.34)11.44)12.24)13.44)Chrysler “Stand Alone” Business PlanKey Metrics and Assumptions49BlankU50Chrysler “Stand Alone” Business PlanIncome Statement* Includes non-cash accounting gain from VEBAsettlement as part of2007 UAW agreementNote: - The company is proposing an EBITDA milestone to be tested on a monthly basis through 2010 and on a yearly basis throughmaturity- Numbers may not add due to rounding($ Billions)ActualsUnaudited2008 2009 2010 2011 2012 2013 2014 2015 2016Gross Revenue 55.945.248.454.655.356.557.658.760.1Incentives (8.3)(6.1)(6.5)(7.3)(7.4)(7.6)(7.7)(7.8)(8.0)Net Revenue $47.6 $39.1 $41.9 $47.3 $47.9 $48.9 $49.9 $50.9 $52.1Variable Cost (39.4)(29.9)(31.9)(36.1)(36.6)(37.3)(38.0)(38.5)(39.3)Variable Profit $8.2 $9.2 $10.0 $11.2 $11.3 $11.6 $11.9 $12.4 $12.8Fixed Cost (10.5)(9.2)(8.1)(10.2)(10.2)(10.1)(10.1)(10.1)(10.1)Operating Profit ($2.3) $0.0 $2.0 $1.0 $1.0 $1.5 $1.8 $2.3 $2.7Pension-OPEB Non-operating/Other (0.4)(0.3)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)Earnings/(Loss) Before Interest & Taxes ($2.7) ($0.3) $1.8 $0.8 $0.8 $1.3 $1.6 $2.1 $2.5Depreciation & Amortization (D&A) 3.03.23.23.13.13.13.13.13.1EBITDA including VEBA impact $0.3$2.9 $5.0 $3.9 $3.9 $4.4 $4.7 $5.2 $5.6Depreciation & Amortization (D&A) (3.0)(3.2)(3.2)(3.1)(3.1)(3.1)(3.1)(3.1)(3.1)Restructuring & Other Adjustments (4.2)--------Net Interest Income/Expense (0.9)(0.6)(1.0)(1.1)(1.1)(1.0)(0.9)(0.8)(0.7)Earnings/(Loss) Before Taxes ($7.8) ($0.9) $0.8 ($0.3) ($0.3) $0.3 $0.7 $1.3 $1.8Taxes (0.2)(0.2)(0.2)(0.3)(0.3)(0.3)(0.3)(0.3)(0.3)Net Income/(Loss) ($8.0) ($1.1) $0.6 ($0.6) ($0.6) $0.0 $0.4 $1.0 $1.5Plan***51Chrysler “Stand Alone” Business Plan2008 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 wholesale financing in Mexico.Note: - In November 2007 repaid first lien creditors $3 billion- Numbers may not add due to rounding($ Billions)U52NonCashItems inEBITDAWorking Capital& Other(primarily due tovolume)$9.512/31/07CashBalanceEBITDA Capex RestructuringPayments12/31/08CashBalance($0.9)($0.6)$2.0$2.5$0.6($2.3)AssetSales($7.0) / ($7.6) *$0.3($0.9)Debt Service,Taxes &Pension/OPEB($5.7)$0.5VEBARecovery2ndLienDraw*SAAR volume reduction of5.8M units and associatedrestructuring results in $6.6billion one-time cash costChrysler “Stand Alone” Business Plan2008 – 2012 CY Unrestricted Cash Walk12/31/08CashBalanceHealthcarePmtRecovery& AssetSalesEBITDA12/31/09CashBalanceCapex RestructuringUSTBorrowingNon-CashVEBAGainsWorkingCapital& OtherDebtService,Taxes,OPEB/Pension &Other$2.5*($1.2)($1.0)$1.3$9.0$9.0$2.9($2.3)($1.6)($0.6)12/31/09CashBalanceEBITDA12/31/10CashBalanceCapex RestructuringNon-CashVEBAGainsWorkingCapital,AssetSales &OtherDebtService,Taxes,OPEB/Pension &Other$9.0$5.0 ($2.4)($2.3)($0.6)($1.6)$1.0$10.612/31/10CashBalanceEBITDA 12/31/11CashBalanceCapex RestructuringWorkingCapital,AssetSales &OtherDebtService,Taxes,OPEB/Pension &Other$10.6$3.9($2.6)($0.6)($3.4)$0.9$10.812/31/11CashBalanceEBITDA 12/31/12CashBalanceCapexWorkingCapital,AssetSales &OtherDebtService,Taxes,OPEB/Pension &Other$10.8$3.9 ($2.6)($2.8)$0.6$11.42009-20102008-20092011-20122010-2011$2.5DoEBorrowingDoEBorrowing$2.0DoEBorrowing$1.5*Actual 12/31/08 Cash $1.9B($ Billions)53Chrysler “Stand Alone” Business PlanNPV Summary($ Billions)U54Note: - Numbers may not add due to rounding2009 2010 2011 2012 2013 2014 2015 2016Free Cash Flows to Equity6.5$ 1.7$ 0.1$ 0.6$ (0.1)$ 0.1$ 0.8$ 1.2$Terminal ValueEBITDA at 2016 5.6$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$NPV of Free Cash Flows at 1/1/2009 9.78.78.07.5NPV of Net Terminal Value 9.76.74.73.3NPV of Chrysler Cash Flows 19.4$ 15.4$ 12.7$ 10.8$Plus: Cash at 1/1/2009 1.91.91.91.9NPV per Section 7.20 of UST Loan 21.3$ 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 after payment of allexpenditures for debt, interest, taxes, and capital investments and b) the terminal value cash flow in 2016, net of debts outstanding, plus c) theunrestricted cash in the company on January 1, 2009. The discount rate applied to a) and b) is the required return for this investment for an eightyear term.NPV Discount RatesChrysler “Stand Alone” Business PlanCash Flow Statement* 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.** Plan includes pension fund contributions of $2.4B through 2012. No contributions are included for the 2013 through 2016 period. If required bycapital market conditions, potential additional contributions could range from $1B to $5B.Note: - Numbers may not add due to rounding- Assumptions with respect to the 1stLien Debt, Government Loans, and UAW/VEBA obligation are that they are either refinanced at existingmaturity dates or their maturity dates are consensually extended  **  **($ Billions)5520092010201120122013201420152016Beginning Cash$2.5*$9.0 $10.6 $10.8 $11.4 $11.3 $11.4 $12.2Cash Flows from Operating ActivitiesNet Income($1.1) $0.6 ($0.6) ($0.6) ($0.0) $0.4 $1.0 $1.5Depreciation & Amortization3.23.23.13.13.13.13.13.1Non-cash Write-down of Goodwill & IntangiblesNon-cash VEBA Gains(1.2)(2.4)------Change in Net Working Capital(0.7)0.90.90.40.60.30.40.3Change in Net Other Operating Assets / Liabilities(1.4)(10.4)(2.4)0.0(0.1)-0.00.0Cash (Used) / Provided by Operations($1.2) ($8.1) $1.0 $2.9 $3.6 $3.8 $4.5 $5.0Cash Flows from Investing ActivitiesCapital Expenditures (excl DOE)($2.3) ($2.3) ($2.6) ($2.6) ($2.6) ($2.5) ($2.5) ($2.5)DOE related Capital Expenditures--------Asset Sales0.40.20.20.20.40.40.40.4Cash (Used) / Provided from Investing($1.9) ($2.1) ($2.4) ($2.4) ($2.2) ($2.1) ($2.1) ($2.1)Cash Flows from Financing ActivitiesPrincipal Changes($0.0) $0.0 $0.0 ($1.0) ($1.0) ($1.0) ($1.0) ($1.0)Liability Conversion(6.9)-------Equity Contributions6.95.1------U.S. Treasury / DOE Sec.136 Funding9.62.52.01.5----VEBA Note / (Principal Payments)-4.3(0.4)(0.5)(0.5)(0.6)(0.6)(0.7)Cash (Used) / Provided from Financing$9.6 $11.9 $1.6 $0.0 ($1.5) ($1.6) ($1.6) ($1.7)Net Increase / (Decrease) in Cash$6.5 $1.7 $0.1 $0.6 ($0.1) $0.1 $0.8 $1.2Ending Cash$9.0 $10.6 $10.8 $11.4 $11.3 $11.4 $12.2 $13.4U56Chrysler “Stand Alone” Business PlanBalance SheetThe Liability Concessions Significantly Reduce The Company’s Leverage,Improving The Near Term And Long Term Viability($ Billions)2009 2010 2011 2012 2013 2014 2015 2016Plan Plan Plan Plan Plan Plan Plan PlanU.S. SAAR (Millions)10.110.611.111.612.112.613.113.7EBITDA2.9$ 5.0$ 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$U.S. Treasury & DOE sec. 136 (a) 9.612.114.115.615.615.615.615.6Principal Amortizations (1.0)(2.0)(3.0)(4.0)(5.0)VEBA Note (a) 5.34.33.93.42.92.41.81.1Sub total Debt 21.823.324.924.923.421.920.318.6Liability Conversion (4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)Total Debt 16.9$ 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$Cash - Year-end Balance (b) 1.02.62.83.43.33.44.25.4Net Debt - before Liability Conversion 20.8$ 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$Cash - Year-end Balance (b) 1.02.62.83.43.33.44.25.4Net Debt - after Liability Conversion 15.9$ 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, GovernmentLoans, and UAW/VEBA obligation are that they are either refinanced at existingmaturity dates or their maturity dates are consensually extended(b) Reflects projected year-end cash in excess of $8 billion assumed needed for operations.Chrysler “Stand Alone” Business PlanBalance Sheet($ 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 or their maturitydates are consensually extended5720092010201120122013201420152016AssetsCash $9.0 $10.6 $10.8 $11.4 $11.3 $11.4 $12.2 $13.4Restricted Cash / Investments 2.32.32.12.12.12.12.12.1Trade Receivables 1.31.31.41.31.31.21.21.2Inventory 3.84.04.54.54.54.54.54.6Other Current Assets 2.93.03.23.23.23.23.23.2Subtotal Current Assets 19.321.222.022.522.422.423.224.5Operating Leases 1.11.21.51.51.51.61.61.7Gold Key Lease Assets 2.30.3------Deferred Tax Assets 1.01.01.01.01.01.01.01.0Property, Plant & Equipment 14.513.412.712.011.110.19.18.1Goodwill & Intangibles 11.311.311.311.311.311.311.311.3Prepaid Pension 0.90.2-(0.2)(0.2)(0.2)(0.2)(0.2)Other Long-Term Assets 1.01.11.21.21.21.21.21.2Subtotal Long-Term Assets32.128.527.726.825.925.024.023.1Total Assets $51.4 $49.7 $49.7 $49.3 $48.3 $47.4 $47.2 $47.6Liabilities & Member's InterestTrade Payables $6.0 $6.3 $7.2 $7.4 $7.8 $7.9 $8.1 $8.3Other Current Liabilities 4.15.05.85.96.16.26.46.6Subtotal Current Liabilities 10.111.313.013.313.914.114.514.9OPEB Liability 7.93.83.83.83.83.93.93.9Pension Liability 2.82.51.00.80.80.80.80.8Deferred Tax Liabilities 0.30.30.30.30.30.30.30.3Restructuring Accruals 1.50.90.30.30.20.20.20.2Other Long-Term Liabilities 8.08.58.78.78.78.78.78.9Subtotal Long-Term Liabilities 20.516.014.113.913.813.913.914.11st & 2nd Lien Debt 6.96.96.96.96.96.96.96.9U.S. Treasury & DOE Sec.136 9.612.114.115.615.615.615.615.6Principal Amortizations ---(1.0)(2.0)(3.0)(4.0)(5.0)VEBA Note 5.34.33.93.42.92.41.81.1Subtotal Debt 21.823.324.924.923.421.920.318.6Liability Conversion (4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)Net Debt 16.918.420.020.018.517.015.413.7Gold Key Lease Debt 2.60.5------Other Financial Liabilities 1.31.31.31.31.31.31.31.3Member's Interest -2.21.30.70.71.12.13.6Total Liabilities & Member's Interest $51.4 $49.7 $49.7 $49.3 $48.3 $47.4 $47.2 $47.6BlankU58(000’s units)Chrysler “Stand Alone” Business PlanSales by MarketUnits % Units % Units % Units %U.S. Retail(excl. Contract)817.051%859.850%897.848%938.649%U.S. Fleet 265.017%306.618%322.117%334.717%Canada 206.013%196.012%196.810%191.210%Mexico 120.07%122.27%126.97%124.66%International 189.312%212.813%326.217%328.817%Overseas Military Sales Corp. 5.70%5.40%5.30%4.20%Contract Manufacturing -0%-0%-0%-0%Total Worldwide Sales 1,603.0100%1,702.7100%1,874.9100%1,922.0100%2010Plan2009Plan2011 2012Plan Plan59Note: Numbers may not add due to roundingBlankU60(000’s units)Units % Units % Units % Units %U.S. Retail(excl. Contract)767.047%816.446%892.243%938.644%U.S. Fleet 265.016%306.617%322.115%334.716%Canada 196.712%188.211%191.19%184.69%Mexico 122.08%122.37%124.76%120.56%International 184.111%220.012%331.816%322.615%Overseas Military Sales Corp. 5.70%5.40%5.30%4.20%Contract Manufacturing 77.75%116.47%217.410%214.910%Total Worldwide Shipments1,618.2100%1,775.3100%2,084.6100%2,120.1100%2011Plan2012Plan2010Plan2009PlanChrysler “Stand Alone” Business PlanShipments by Market61Note: Numbers may not add due to roundingBlankU62($ Billions)$3.1$0.7Chrysler “Stand Alone” Fixed Cost Reduction Trend2006 - 2012 CY (Before VEBA Impact)$6,304$5,746$4,894$4,811



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S h i p m e n t s ( u n i t s 0 0 0 ’ s )63BlankU642009 CY and 2010 CY Chrysler“Stand Alone” Business PlanCalendar Year Details65BlankU66Jan Feb Mar 1Q Apr May Jun 2Q Jul Aug Sep 3Q Oct Nov Dec 4Q TotalGross Revenue 1.13.64.49.14.04.03.911.83.74.24.312.24.33.84.012.045.2Incentives (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)(0.5)(0.5)(1.6)(6.1)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 $3.3 $3.5 $10.4 $39.1Variable 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)(2.5)(2.7)(8.0)(29.9)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 $0.8 $0.8 $2.4 $9.2Fixed 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)(0.8)(0.8)(2.3)(9.2)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 ($0.0) $0.0 $0.1 ($0.0)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)(0.0)(0.0)(0.1)(0.3)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 ($0.0) $0.0 $0.0 ($0.3)Deprec & Amortization (D&A) 0.30.30.30.80.30.30.30.80.30.30.30.80.30.30.30.83.2EBITDA 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 $0.2 $0.3 $0.8 $2.9Depreciation & 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)(0.3)(0.3)(0.8)(3.2)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)(0.04)(0.04)(0.13)(0.6)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 ($0.1) ($0.0) ($0.1) ($0.9)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)(0.02)(0.02)(0.05)(0.2)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) ($0.1) ($0.1) ($0.1) ($1.1)*Chrysler 2009 CY “Stand Alone” Business PlanMonthly Income Statement($Billions)* Includes non-cash accounting gain from VEBAsettlement as part of2007 UAW agreementNote: - The company is proposing an EBITDA milestone to be tested on a monthly basis through 2010 and on a yearly basis throughmaturity- Numbers may not add due to rounding67BlankU68($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 or their maturitydates are consensually extendedChrysler 2009 CY “Stand Alone” Business PlanMonthly Cash Flow Statement*Ending Cash Actual/ 13 week forecast$2.7 $1.9 $2.4Risk at 9.5 SAAR $1.8 $1.969JanFebMarAprMayJunJulAugSepOctNovDecTotalBeginning Cash$2.5 $4.1 $2.4 $3.5 $9.0 $8.9 $8.8 $8.9 $8.6 $8.6 $9.0 $8.9 $2.5Cash Flows from Operating ActivitiesNet Income($0.5) ($0.1) $0.0 ($0.1) ($0.1) ($0.1) ($0.1) $0.0 $0.0 $0.0 ($0.1) $0.0 ($1.1)Depreciation & Amortization0.30.30.30.30.30.20.30.20.30.20.30.23.2Non-cash VEBA Gains(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(1.2)Change in Net Working Capital(1.8)(1.0)1.10.7-(0.1)0.1(0.2)-0.3(0.1)0.3(0.7)Change in Net Other Operating Assets / Liabilities(0.4)(0.6)(0.1)(0.5)-0.10.1-(0.1)0.20.1(0.2)(1.4)Cash (Used) / Provided by Operations($2.5) ($1.5) $1.2 $0.3 $0.1 $0.0 $0.3 ($0.1) $0.1 $0.6 $0.1 $0.2 ($1.2)Cash Flows from Investing ActivitiesCapital Expenditures($0.2) ($0.2) ($0.2) ($0.1) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($2.3)Asset Sales--0.1--0.1--0.1--0.10.4Cash (Used) / Provided from Investing($0.2) ($0.2) ($0.1) ($0.1) ($0.2) ($0.1) ($0.2) ($0.2) ($0.1) ($0.2) ($0.2) ($0.1) ($1.9)Cash Flows from Financing ActivitiesPrincipal Changes$0.0 $0.0 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.0)Liability Conversion---(6.9)--------(6.9)Equity Contributions---6.9--------6.9U.S. Treasury / DOE Sec.136 Funding4.3--5.3--------9.6VEBA 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 $0.0 $0.0 $0.0 $9.6Net Increase / (Decrease) in Cash$1.6 ($1.7) $1.1 $5.5 ($0.1) ($0.1) $0.1 ($0.3) ($0.0) $0.4 ($0.1) $0.1 $6.5Ending Cash$4.1 $2.4 $3.5 $9.0 $8.9 $8.8 $8.9 $8.6 $8.6 $9.0 $8.9 $9.0 $9.0BlankU70($Billions)Chrysler 2009 CY “Stand Alone” Business PlanMonthly Balance Sheet71Note: - 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 or their maturitydates are consensually extended1Q 2Q 3Q 4QJanFebMarAprMayJunJulAugSepOctNovDecAssetsCash $4.1 $2.4 $3.5 $9.0 $8.9 $8.8 $8.9 $8.6 $8.6 $9.0 $8.9 $9.0Restricted Cash / Investments 2.32.32.32.32.32.32.32.32.32.32.32.3Trade Receivables 1.11.31.41.31.31.31.31.31.41.31.31.3Inventory 4.34.95.45.04.94.84.54.84.84.74.23.8Other Current Assets 3.53.43.43.33.33.23.23.13.13.03.02.9Subtotal Current Assets 15.314.316.020.920.720.420.220.120.220.319.719.3Operating Leases 1.61.51.51.41.41.41.31.31.21.21.21.1Gold Key Lease Assets 4.03.93.73.63.43.33.12.92.82.62.52.3Deferred Tax Assets 1.01.01.01.01.01.01.01.01.01.01.01.0Property, Plant & Equipment 15.715.615.415.315.315.115.015.014.814.714.714.5Goodwill & Intangibles 11.311.311.311.311.311.311.311.311.311.311.311.3Prepaid Pension 0.90.90.90.90.90.90.90.90.90.90.90.9Other Long-Term Assets 0.50.50.60.60.60.60.70.70.80.90.91.0Subtotal Long-Term Assets35.034.734.434.133.933.633.333.132.832.632.532.1Total Assets $50.3 $49.0 $50.4 $55.0 $54.6 $54.0 $53.5 $53.2 $53.0 $52.9 $52.2 $51.4Liabilities & Member's InterestAccounts Payables $4.1 $4.5 $6.1 $6.5 $6.4 $6.2 $6.2 $6.3 $6.4 $6.6 $6.1 $6.0Other Current Liabilities 5.75.05.04.94.84.74.54.54.44.34.24.1Subtotal Current Liabilities 9.89.511.111.411.210.910.710.810.810.910.310.1OPEB Liability 6.97.07.17.27.37.47.47.57.67.77.87.9Pension Liability 1.41.51.71.81.92.02.12.32.42.52.62.8Deferred Tax Liabilities 0.30.30.30.30.30.30.30.30.30.30.30.3Restructuring Accruals 2.22.12.01.81.81.71.71.71.61.61.61.5Other Long-Term Liabilities 8.98.48.47.87.88.07.97.77.87.77.98.0Subtotal Long-Term Liabilities 19.719.319.518.919.119.419.419.519.719.820.220.51st & 2nd Lien Debt 8.98.98.96.96.96.96.96.96.96.96.96.9U.S. Treasury & DOE Sec.136 4.34.34.39.69.69.69.69.69.69.69.69.6VEBA Note 5.05.05.05.15.15.15.25.25.25.35.35.3Subtotal Debt 18.218.218.221.621.621.621.721.721.721.821.821.8Liability Conversion ---(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)Net Debt 18.218.218.216.716.716.716.816.816.816.916.916.9Gold Key Lease Debt 4.34.14.03.83.73.53.43.23.12.92.82.6Other Financial Liabilities 1.31.31.31.31.31.31.31.31.31.31.31.3Member's Interest (3.0)(3.4)(3.7)2.92.62.21.91.61.31.10.7-Total Liabilities & Member's Interest $50.3 $49.0 $50.4 $55.0 $54.6 $54.0 $53.5 $53.2 $53.0 $52.9 $52.2 $51.4BlankU72Jan Feb Mar 1Q Apr May Jun 2Q Jul Aug Sep 3Q Oct Nov Dec 4Q TotalGross Revenue 3.53.94.612.14.34.64.413.24.03.93.811.73.63.64.211.448.4Incentives (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)(0.5)(0.6)(1.5)(6.5)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 $3.2 $3.6 $9.9 $41.9Variable 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)(2.4)(2.7)(7.5)(31.9)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 $0.8 $0.9 $2.4 $10.0Fixed 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)(0.7)(0.7)(2.0)(8.1)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 $0.1 $0.2 $0.4 $2.0Pension-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)(0.0)(0.0)(0.1)(0.2)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 $0.1 $0.2 $0.3 $1.8Deprec & Amortization (D&A) 0.30.30.30.80.30.30.30.80.30.30.30.80.30.30.30.83.2EBITDA 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 $0.3 $0.4 $1.1 $5.0Depreciation & 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)(0.3)(0.3)(0.8)(3.2)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)(0.08)(0.08)(0.25)(1.0)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) ($0.0) $0.1 $0.1 $0.8Taxes (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)(0.02)(0.02)(0.05)(0.2)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) ($0.0) $0.1 $0.0 $0.6*Chrysler 2010 CY “Stand Alone” Business PlanMonthly Income StatementNote: Numbers may not add due to rounding($Billions)* Includes non-cash accounting gain from VEBAsettlement as part of2007 UAW agreementNote: - The company is proposing an EBITDA milestone to be tested on a monthly basis through 2010 and on a yearly basis throughmaturity- Numbers may not add due to rounding73BlankU74($Billions)Chrysler 2010 CY “Stand Alone” Business PlanMonthly Cash Flow Statement75Note: - 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 maturitydates or their maturity datesare consensually extendedJanFebMarAprMayJunJulAugSepOctNovDecTotalBeginning Cash$9.0 $12.0 $11.7 $11.5 $11.9 $11.6 $11.6 $11.4 $11.1 $10.3 $10.4 $10.5 $9.0Cash Flows from Operating ActivitiesNet Income$0.0 $0.1 $0.1 $0.1 $0.2 $0.0 $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.6Depreciation & Amortization0.30.30.30.30.30.20.30.20.30.20.30.23.2Non-cash VEBA Gains(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(0.2)(2.4)Change in Net Working Capital0.7(0.2)-0.4(0.3)0.1(0.1)(0.1)(0.3)0.30.10.30.9Change in Net Other Operating Assets / Liabilities(9.5)(0.1)(0.2)(0.1)(0.1)-(0.1)-(0.4)-0.1(0.1)(10.4)Cash (Used) / Provided by Operations($8.7) ($0.1) $0.0 $0.5 ($0.1) $0.1 $0.0 ($0.1) ($0.6) $0.3 $0.3 $0.2 ($8.1)Cash Flows from Investing ActivitiesCapital Expenditures($0.2) ($0.2) ($0.2) ($0.1) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($2.3)Asset Sales-----0.1-----0.10.2Cash (Used) / Provided from Investing($0.2) ($0.2) ($0.2) ($0.1) ($0.2) ($0.1) ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.1) ($2.1)Cash Flows from Financing ActivitiesPrincipal Changes$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0Liability Conversion-------------Equity Contributions5.1-----------5.1U.S. Treasury / DOE Sec.136 Funding2.5-----------2.5VEBA Note / (Principal Payments)4.3-----------4.3Cash (Used) / Provided from Financing$11.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $11.9Net Increase / (Decrease) in Cash$3.0 ($0.3) ($0.2) $0.4 ($0.3) ($0.0) ($0.2) ($0.3) ($0.8) $0.1 $0.1 $0.1 $1.7Ending Cash$12.0 $11.7 $11.5 $11.9 $11.6 $11.6 $11.4 $11.1 $10.3 $10.4 $10.5 $10.6 $10.6BlankU76($Billions)Chrysler 2010 CY “Stand Alone” Business PlanMonthly Balance Sheet77Note: - 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 or their maturitydates are consensually extended1Q 2Q 3Q 4Q2009JanFebMarAprMayJunJulAugSepOctNovDecAssetsCash $9.0 $12.0 $11.7 $11.5 $11.9 $11.6 $11.6 $11.4 $11.1 $10.3 $10.4 $10.5 $10.6Restricted Cash / Investments 2.32.32.32.32.32.32.32.32.32.32.32.32.3Trade Receivables 1.31.31.31.41.31.41.41.31.31.31.31.31.3Inventory 3.83.84.14.84.54.74.64.34.14.33.93.74.0Other Current Assets 2.92.92.92.92.92.92.92.92.92.93.03.03.0Subtotal Current Assets 19.322.322.322.922.922.922.822.221.721.120.920.821.2Operating Leases 1.11.11.11.11.11.11.21.21.21.21.21.21.2Gold Key Lease Assets 2.32.12.01.81.61.51.31.11.00.80.60.50.3Deferred Tax Assets 1.01.01.01.01.01.01.01.01.01.01.01.01.0Property, Plant & Equipment 14.514.414.314.314.214.113.913.913.813.713.613.613.4Goodwill & Intangibles 11.311.311.311.311.311.311.311.311.311.311.311.311.3Prepaid Pension 0.90.80.80.70.70.60.60.50.50.40.30.30.2Other Long-Term Assets 1.01.01.01.01.01.01.01.01.01.01.01.01.1Subtotal Long-Term Assets32.131.731.531.230.930.630.330.029.829.429.028.928.5Total Assets $51.4 $54.0 $53.8 $54.1 $53.8 $53.5 $53.1 $52.2 $51.5 $50.5 $49.9 $49.7 $49.7Liabilities & Member's InterestAccounts Payables $6.0 $5.7 $5.9 $6.7 $6.7 $6.7 $6.7 $6.4 $6.1 $6.0 $5.9 $5.8 $6.3Other Current Liabilities 4.15.05.05.05.05.05.05.04.94.84.84.85.0Subtotal Current Liabilities 10.110.710.911.711.711.711.711.411.010.810.710.611.3OPEB Liability 7.93.73.73.73.73.73.73.83.83.83.83.83.8Pension Liability 2.82.72.72.72.72.62.62.62.62.62.52.52.5Deferred Tax Liabilities 0.30.30.30.30.30.30.30.30.30.30.30.30.3Restructuring Accruals 1.51.51.51.31.31.31.21.21.21.01.01.00.9Other Long-Term Liabilities 8.08.28.18.28.38.48.58.28.38.28.28.68.5Subtotal Long-Term Liabilities 20.516.416.316.216.316.316.316.116.215.915.816.216.01st & 2nd Lien Debt 6.96.96.96.96.96.96.96.96.96.96.96.96.9U.S. Treasury & DOE Sec.136 9.612.112.112.112.112.112.112.112.112.112.112.112.1VEBA Note 5.34.34.34.34.34.34.34.34.34.34.34.34.3Subtotal Debt 21.823.323.323.323.323.323.323.323.323.323.323.323.3Liability Conversion (4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)Net Debt 16.918.418.418.418.418.418.418.418.418.418.418.418.4Gold Key Lease Debt 2.62.42.32.11.91.71.61.41.21.00.90.70.5Other Financial Liabilities 1.31.31.31.31.31.31.31.31.31.31.31.31.3Member's Interest -4.84.64.44.24.13.83.63.43.12.82.52.2Total Liabilities & Member's Interest $51.4 $54.0 $53.8 $54.1 $53.8 $53.5 $53.1 $52.2 $51.5 $50.5 $49.9$49.7 $49.7BlankU78Minimum Required LiquidityChrysler’s Short-term Cash Needs HaveAccelerated under Current Market ConditionsCurrent 13 WeekCash Forecast toUST 02/09/09WashingtonWashingtonDec’08 Submission08 SubmissionCash balance with $4.0BCash balance with $4.0BGov’tLoan assumingLoan assumingSAAR @ 11.1 for yearSAAR @ 11.1 for yearForecastRisk Assessment(submitted 02/09/09)$1.8$1.8$1.9ContinuedIndustryContraction20 K unitsthroughApril$1.3$1.5$1.7$2.5$1.2belowmin.cashContinued IndustryContraction$6.5January 09 February 09 March 09 April 093.62.76.53.22.32.41.95.9** 2008 YE actual cash $1.9B. Received $4.0B 1/2/09 from UST79Liquidity needs require$5B incrementalGovernment loan requestby 03/31/09BlankU80V. Strategic Alliance Benefits81Fiat Strategic Alliance Synergy and Benefits OverviewAreaApproachCash Flow ImpactTotal ‘09-16 $(Billions)EBITDA ImpactTotal ‘09-16 $(Billions)Products/ Platform Sharing2 million products localized or sold in NAFTAandexported to global markets$1.4$2.1DistributionNew Chrysler markets adding 393,000 units, AlfaRomeo distributed in NAFTA$1.3$1.3PurchasingIntegrate sourcing with Fiat Group$3.2$2.8Other OpportunitiesPowertrain, Technology, Logistics, SG&A Expense,other, Funding for NSCs provided by Fiat$1.0$1.2TOTAL SYNERGIES*$6.9$7.4Adds 7 New Small Vehicles/Platformsand 6 New Powertrain CombinationsTo Enhance U.S. Energy Independence And EnvironmentallySustainable 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 2015 2016EBITDA Synergy Benefits $0.0 $0.0 $0.3 $1.2$1.3 $1.5 $1.6 $1.5Cash Synergy Benefits (cumulative)($0.1) ($0.1) ($0.2) $1.0$2.4 $3.9 $5.5 $6.9The negative cash impact in thefirst three years is due to spending approx $1B in new platforms and powertrain technology offset by synergy savingsU82Chrysler Strategic ChallengesHistorically Weighted Product PortfolioToward Trucks, MPVs, And SUVsLost International Footprint World-wideOutside Of NAFTA Due To Daimler SeparationMinimal Scale Vs. Global CompetitorsStrategic AllianceIncreases Chrysler’s andFiat’s CompetitivenessHigh Capital Investment And R&D NeededTo Comply With Environmental RequirementsAlliance Creates #6 Global Automaker WithOver 4 Million Vehicles Sold AnnuallyFiat To Help To Manage Distribution InternationallyProviding Access to3,800 Fiat DealersFills Product Line Gaps InSmall And Fuel EfficientVehiclesObtain World-class Small Engines And PowertrainTechnologyBenefits of Fiat Alliance83Fiat 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 and one of thelargest auto manufacturers in Brazil and Russia.•Fiat Group Automotive designs, produces andsells cars worldwide under the Fiat, AlfaRomeo, Lancia, Fiat Professional (lightcommercial vehicles) and Abarth brands.•Fiat’s small vehicle platform products (A,B and C segments) are highly regarded and thecompany is a recognized leader in developing technologies to reduce emissions andincrease fuel efficiency.•Among the top 10 selling brands in Europe, Fiat brand has the lowest level of CO2emissions.•Fiat went through some difficult, unprofitableyears at the beginning of the millennium butsince 2003 has executed a tremendousturnaround in its own business.U84Fiat OverviewFinancial Summary– $(Billions)Group StructureFY ‘05FY ‘06FY ‘07FY ‘08Revenue$64 $71 $80$81Gross Profit9.5 10.9 13.213.0% Margin15% 15% 16%16%Net Profit1.8 1.5 2.72.4% Margin2.8% 2.1% 3.3%3.0%Source: ‘07 Annual Report, 4Q ‘08 Report, Bloomberg FX: €1= $1.37 (Jan ‘09). Including all subsidiaries.South AmericaNAFTAEuropeItalyOther$812008 Revenue by RegionRevenue & Profit HistoryFiat Power TrainPowertrainTechnologiesFiat GroupAutoComponentsAutomakersOthers

2008 Revenue $(Billions)$40 $9 $32MaseratiFerrariFiat AutosMagnetiComponentsCase New HollandAgri & Constr EquipIvecoCommercial VehTeksidMetallurgicalComauProduction SysItediPublishing85Restructuring Plan With Preferred Strategic Alliance•An Alliance with Fiat would help Chrysler address some of its most pressing strategicchallenges.•Fiat would provide a strong partner to buildthe presence of the Chrysler, Dodge and Jeep®brands in important international growth markets, where Chrysler currently has a minimalfootprint.•Access to Fiat Group platforms would complement Chrysler’s current product portfolio andwould allow the Company to rapidly bring tomarket fuel-efficient, environmentally friendlysmall cars.•Chrysler would obtain access to world-class small engines and powertrain technologywithout the need to spend significantly on capital investments and R&D.•In return, Fiat would gain a 35% equity position in Chrysler.U86Chrysler – Fiat Alliance Proposed TransactionStructure: Non-BindingChrysler EquityProduct/PlatformSharingDistributionPurchasingOther OpportunitiesAlliance ScopeStrategic AssetsManagementServices• Fiat contributes strategic assets andmanagement services to Alliance• Fiat obtains 35% equity withoption to acquire 20% based onachieving performance metrics• Chrysler remains U.S. based companyEnhances GlobalCompetitiveness87Benefits From Global Scale•While Chrysler’s current scale makes it difficult tocompete versus global competitors, the Alliancewould immediately create the sixth largest globalautomaker by volume, with combined vehiclesales in excess of 4 million units.•Larger scale would make the Alliance more competitive with top tier auto manufacturers, sincenew platform and technological development costs could be amortized over higher volumes.•The Alliance also would increase R&D and design capabilities by combining two leadingtechnology players.•Joint development of future global platforms and powertrain solutions, combined with the use ofcommon components, would provide the potential for significant reductions in combineddevelopment costs.•The complementary geographic strengths would provide synergies in sales and service.•The larger scale would provide savings in procurement as a result of common suppliers onexisting platforms and even greater opportunity on future shared platforms.•The combined direct materials spend would be more than $45 billion annually.U880123456789108.77.765.85.44.54.23.83.22.52.421.91.4 1.41.1Benefits From Global ScaleAlliance creates the#6 Global Automakerby volumeTop Global Automakers by 2008 Annual Unit Sales

Units (Millions)•Achieves scaleposition required tobetter compete withtop-tier players•Costs of new platformand technologydevelopment can beamortized over highervolumes•Increased R&D anddesign capabilities bycombining two leadingtechnology players•Sales and servicesynergies acrossgeographical regions•Procurement and otherscale-related savings89Expansion Through Current Geographic Presence•Geographic balance is another mutual benefit,as the Alliance would take advantage ofFiat’s presence in Europe andLatin America and Chrysler’sposition in North America.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 percentshare; Fiat less than 0.1 percent share•By leveraging Chrysler’s and Fiat’s complementary strengths in distribution, the Alliancewould dramatically enhance the geographicfootprint for each company, providing theopportunity to grow combined share.•An improved geographic balance also would lessen the dependency on any singlemarket for the Alliance.•In addition, scale in the Americas and in Europe would putthe Alliance in better positionto penetrate Asian markets from a position of strength.U90Expansion Through Current Geographic PresenceNorth AmericaSouth AmericaEuropeAfricaAsiaSource: Global AutoInsight (January 2009)MARKET SHARE BY REGION% SALES BY REGIONFiat’s core presence inEurope and SouthAmerica and Chrysler’s in North AmericaAsiaTOTAL VOLUME(millions)Alliance provides platform to jointly penetrateAsia from position of strengthFiat Financial Services MayProvide Significant BenefitsFor Chrysler International91Benefits From Complementary Products•Fiat’s product portfolio is predominately mini, small and compact cars which representalmost 60 percent of the company’s global sales.•Alternatively, Chrysler’s product portfolio isdominated by minivans, mid and large sportutility vehicles, and trucks which represent over 50% of its sales.•Chrysler would gain immediate access to substantially all of Fiat’s vehicle platforms,including small, fuel-efficient cars for the U.S. market.U92Benefits From Complementary ProductsExpanding Product Breadth into New Segments Enhances CustomerChoice and ImprovesDealer ProfitabilitySource: Global Insight & Co. data. Fiat/ Alfa/ Lancia. Includes LCV. ’08E 3Q’08 Co. presentationWorldwide Vehicle Sales by SegmentUnits (000s)2.5 MAnnual Sales2.0 MAnnual Sales93Benefits From Technology Sharing•Technology sharing with Fiat would provide tremendous advantages to Chrysler.•Fiat is a recognized leader in developing technologies to reduce emissions and increase fuelefficiency. Among the 10 top selling brands inEurope, Fiat brand has the lowest level ofCO2 emissions.•Examples of Fiat advanced technologies available in 2009-2012:–Small Gasoline Engine: 1.4-1.8l turbochargedtechnology to reduce CO2 emissions toless than 100g/km.–Multiair: this innovative intake valve electronic control system reduces fuel consumptionby up to 6 percent while improving dynamic response of the engine.–Multijet 2: advances in direct injection diesel technology enable signficiant reductions inNOx and soot emissions andreduced combustion noise.–Tetrafuel: designed for flex-fuel markets like Brazil, it is the first-ever engine capable ofbeing powered by four different fuels – CNG, pure petrol, pure ethanol (E100) and E25ethanol/gasoline blend.U94Benefits From Technology SharingImproved Fuel Economy and EmissionsInnovativeInnovativePowertrainPowertrainTechnologiesTechnologiesVehicle and Lightweight TechnologiesVehicle and Lightweight TechnologiesDual Dry Clutch Transmission10% more efficient thanconventional transmissionTetra-Fuel Enginecapable of being powered byfour different fuelsSeat Frame Weight ReductionElectric Power Steeringto reduce pumping losses forfuel efficiencyMaterial and thicknessThicknessdeleted2-cylinder Gas Enginecombining Multiair and turbotechnology for real downsizing95A Global Alliance for Chrysler Benefits America•The proposed Alliance with Fiat would significantly strengthen Chrysler’s competitiveness forthe long term and would benefitall of Chrysler’s constituents.•The Company’s U.S. employees would benefitfrom the enhanced prospects for Chrysler’slong-term viability and by the preservation ofmanufacturing jobs. A stronger Chrysler alsowill be in a better position to meet its retiree obligations. Chrysler’s partners at the UAWhave announced their endorsement of the proposed Alliance.•Chrysler’s dealers and suppliers would benefit from increased production volumes,diversification across geographies and models, and increasedfinancial stability. Supplierswould have an increased opportunity to supplycomponents for Fiat vehicles assembled inthe U.S.•Chrysler’s creditors would benefit from a stronger borrower.•Finally, the U.S. government and taxpayers would benefit because the Alliance wouldelevate Chrysler into a leading U.S.-based global automotive player; facilitate more rapidrepayment of U.S. Treasury indebtedness;and accelerate Chrysler’s plans for theintroduction of more environmentally friendly vehicles.•No American taxpayer money would go to Fiat.•Chrysler would build Fiat models in North American plants with North American labor, just asthe Company has previously assembled smallpickup trucks for Mitsubishi, now assembleminivans for Volkswagen, and will assemble full-size pickup trucks for Nissan.U96Impact of Alliance Extends Beyond Chrysler andBenefits Other U.S. ConstituenciesEmployees•Chrysler viabilityenhanced for long-term•Preserves manufacturingjobs•Better enables Chrysler tomeet its retiree obligationsGovernment & Public•Accelerates achievement ofChrysler’s long-termobjectives•Facilitates more rapidrepayment of U.S. Treasuryindebtedness•Pulls ahead introduction ofmore environmentallyfriendly and fuel efficientvehicles•Elevates Chrysler into aleading U.S.-based globalautomotive playerCreditors•Improves potential for debtrepayment and reduces risksDealers & Suppliers•More competitive, diverse product lineup•Volume growth opportunity•Financial stabilityStrengthensStrengthensChrysler forChrysler forthe Long Termthe Long Term97BlankU98VI. Industrial Plan99Product Leadership Strategy•Chrysler product leadership strategy addresses three major areas:•Core Programs: Improving quality to attain world-class standards has been a major focus overthe past year-and-a-half. Chrysler also hassteadfastly addressed ways to improve fueleconomy and meet regulatory requirements through a wide range of approaches.•Market/Segment Requirements: Chrysler understands changing customer requirements andseeks to satisfy those needs in different segments with innovative vehicles and features,improving its portfolio’s relevance to consumers.•Financial Viability for Chrysler: Two of Chrysler’s most successful, iconic models – Chrysler300 and Jeep Grand Cherokee – will be completely redesigned and launched in 2010.U100Implement 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 Aspects101Chrysler Quality Strategy Showing Positive Results•The entire Chrysler organization is committed to achieving a higher level of quality.•Chrysler recently launched theCustomer Promoter Scoreto measure how customers feel about theCompany’s brands, dealers and vehicles. It measures whether customers are promoters or detractorsof Company products by asking onesimple question: “Would you recommend the product you bought toa friend or family member?”•Customers are contacted seven times during their ownership experience.Customer feedback andcomments will be available to dealers, engineers, designers - anyone with an interest in customer input.Recent data shows Chrysler isseeing a resurgence of promoters.•The 2009 Dodge Ram truck was the first vehicle tested under the Customer Promoter Score system.Calls began in December of 2008, and through the endof January more than 700customer calls werecompleted, recording a cumulativescore of 99.8 percent positive.•Three aspects of Chrysler’squality process will be highlighted in this presentation:•Ordinary Quality: In 2008, the Company achieved the lowest warrantyclaim rate in its history – a30 percent improvement compared with the prior year.•Regulatory Quality: Among the sixmajor auto manufacturers, Chrysler had the industry's lowestnumber of recalls in 2008 as reported by NHTSA – a total of 360,000units, down from 2.2 millionunits in 2007.•Perceived Quality: Chrysler is addressing perception issues with initiatives such as upgradedmaterials and improvements to fit and finish.U102Chrysler’s Overall Quality StrategyCPSCustomerPromoter ScoreExample:• Power WindowBrokenExample:• EmissionsProblemExample:• Cheap lookinginterior• Poor fit andfinishExample:• Road noise• MPGExample:• Not repairedfirst timeOrdinaryQualityRegulatoryQualityPerformanceQualityServiceQualityPerceivedQualityHow it works How am Isatisfied bydealer/OEMHow it looksRecallsFixing problemson currentproducts andwarranty claimsExample:• Cup holderstoo low• ConfusingControlsDissatisfactionQualityCustomerfeedbackOne simple question:“Would the customerrecommend ChryslerProducts to others?”Chrysler is a Customer Centric CompanyCPS will predict increased Loyalty/Advocacy leadingto growth of the business103Ordinary Quality Addresses FundamentalCustomer RequirementsCurrent Products•To underscore Chrysler’s focus on qualityand commitment to customers, in 2007 theCompany became the first auto manufacturer tooffer a limited lifetime powertrain warranty onmost new Chrysler, Jeep and Dodge vehicles.•In 2008, the Company achieved the lowest warranty claim rate in its history – a 30 percentimprovement compared with the prior year.•The 30 percent improvement far exceeds the historical average annual improvement rateof 2.4 percent.•The 2008 improvement resulted in a $240million annualized warranty cost reduction.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 percent better thanthe industry average for reliability.U104Ordinary Quality (Warranty)Current ProductsCurrent Products•30% reduction in customer warrantyclaims last 12 months (historically 2.4%annual)•$240 Million annualized warranty costreductionFuture Products•Durability targets increased 50%•Targeting Consumer Reports rating of40% better than Industry Average forReliabilityWARRANTY – TOTALCORPORATE2001 200720082009201020112012

Warranty Failure Rate’01 –’07Average AnnualImprovementRate was 2.4%...........30%

BetterDURABILITY CURVEMiles

Warranty FailuresPrevious TargetNew TargetEarlyFailuresLateFailures50% more milesLower FailureAcceptance

Better



# T r e n d105Regulatory Quality Measures Recall Performance•Chrysler established the automotive industry’sfirst-ever Chief Customer Officer positionin the automotive industry to focus and align the entire organization on quality and onsatisfying customers.•Among the seven major auto manufacturers, Chrysler had the industry's lowest numberof recalls in 2008 as reported by NHTSA – atotal of 360,000 units, down from 2.2 millionunits in 2007.•Establishing a rigorous review and follow-up process to prevent problems was key to thisimprovement.•Chrysler also initiated a program in whichtop executives personally called customers todiscuss quality issues.U106Regulatory Quality (Recalls)•Achieved lowest Safety Recall among 7 Major OEMs•Rigorous reoccurrence prevention reviews and follow up

% Recall of Total Brand PopulationSource: 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 2008Calendar YearHyundai



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n eChryslerGeneral MotorsFordToyotaHondaNissan107Perceived Quality Initiatives Target Fit and Finish, and OtherPerception-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 finish of all futureChrysler, Dodge andJeep vehicles.•Interior designers use state-of-the-art design software and computer modeling to achieve quality and fit andfinish objectives faster than ever,allowing more time to engage suppliersand save money that is being putinto better materials,even on entry-level models.•The Company set targets to meet orexceed best in class as exemplified with the all-new 2009 Dodge Ram.•“The Ram is in a league of its own here. “—Truckin’magazine’s “Truck of the Year”•“Silverado, pass your torch.Chevy’s pickup has been the touchstone of chassis composureamong half-tons since it was introduced in2007, but the 2009 Dodge Ram 1500 changes thepecking order.”—Edmunds “Inside Line Editors’ Most Wanted 2009”•“Most judges comment on the hugelyimproved interior layout and material choices in the Ram,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 rivals. That's whyit's earnedMotorWeek's‘2009 Drivers' Choice Award as Best Pickup’.."—MotorWeek•“Dodge Ram gets our Best Buy nod thanks to its composed ride, impressively comfortable andquiet cabin and unique cargo storage features. Ram is also remarkably maneuverable for a largepickup truck.”— Consumer Guide AutomotiveU108109Perceived Quality (Fit & Finish)Current Products•Leveraged benchmarking to findbest competitors and practices•Set targets to meet or exceed bestin classFuture Products•Established interior design studiolate 2006•Created Perceived QualityEvaluation drive improvement2008 Ram2008 Ram2009 Ram2009 Ram2009InternationalTruck ofthe Year109Chrysler Product Honored by Industry, Media andConsumers•The all-new Dodge Ram has picked up 12 key awards since its introduction and was recentlychosen by Car and Driver as the best full-sizepick-up truck in a head-to-head comparison withits competition.•Chrysler 300C has become the most awarded car in automotive history since its launch in2005.•Celebrating the 25th anniversary of Chrysler minivans this year, loyal owners continue torecognize the Chrysler Town & Country and Dodge Grand Caravan as the best on the road.The Chrysler Town & Country won its eighth consecutive honor in R.L. Polk's Owner LoyaltyAwards, and Chrysler minivans took their twelfth win in MotorWeek's Drivers' Choice Awards.•Dodge Challenger has won seven awards this year, including Popular Mechanics AutomotiveDesign Excellence Award.•Kelley Blue Book honored the iconic Jeep Wrangler for maintaining the highest resale valueamong all SUVs.•Jeep Grand Cherokee owners are the most loyal in the mid-size SUV category, earning thevehicle an award in this year's R.L. Polk Loyalty awards.•The uconnect Web WiFi system earned Good Housekeeping's seal of approval. The systemwon the group's very innovative product award for giving passengers of new Chrysler, Jeepand Dodge vehicles the ability to sign up for wireless internet service.U110Dodge Ram – 12 Awards- International Truck of YearTown and Country – 7 Awards- Consumer Guide Best BuyChrysler 300C- Consumer Guide RecommendedDodge Challenger- Popular Mechanics Automotive Design ExcellenceJeep Wrangler- Kelly Blue Book Best Resale Value SUVJeep Grand Cherokee- RL Polk Loyalty Awarduconnect Web WiFi System- Good Housekeeping – Very Innovative Product Award2009 Awards111Fuel Economy Improvements•For the 2009 model year, 73 percent of Chrysler’s products offer improved fuel economycompared with 2008 models.•An all-new family of fuel-efficient V-6 engines will joinChrysler’s lineup in 2010.•Over the past decade, Chrysler has built morethan 1.5 million Flexible Fuel Vehiclescapable of running on renewable, American-made ethanol fuel, E85. The Company iscommitted to making 50 percent of our new light-duty vehicles capable of using alternativefuels in 2012.•In the proposed alliance with Fiat, Chrysler would gain access to Fiat Group vehicleplatforms that would complement Chrysler’scurrent product portfolio and would acceleratethe company’s plans for the introduction ofmore environmentally friendly vehicles.•The Company plans on launching additional small, fuel-efficient vehicles as well as abreakthrough family of all-electric and range-extended electric vehicles.U112Improvement of Fuel Economy Using Powertrain andPortfolio Opportunities With FIAT•Chrysler and FIAT portfolio rangesoverlap only in midsize segments•FIAT small platform technology, small gasoline and diesel engines and light duty dual clutchtransmission eliminateneed for Chrysler to developor purchase similar components•Chrysler 4-cylinder World Gas Engine andPhoenix V6 are powertrains that areattractive to FIAT for potentialproduct line extension.113Journey50% Flex FuelVehicles by 2012MID/LARGESUVSPICKUP &LARGE VANMINIVANLARGEFULLSIZEMIDSIZECOMPACT SUVSMALL / MINICOMPACTFiat PuntoC-EVO SedanD-EVO SedanAlfa GiuliaAlfa MilanoSmallGasEngine0.9LFIREGasEngine1.1L NA– 1.4LNA, Mair, TCAlfa CUVFAM BGasEngine1.8L DITCAlfa MitoB Hatch 5 PassFiat 500WorldGasEngine1.8L –2.4LNA, TCPhoenixGasEngineV63.6L NAMulti Air-Efficient EngineValvetrain TechnologyHigh Pressure CommonRail Diesel TechnologyDual Clutch TransmissionEfficient V6 EngineTechnologySafety, Regulatory, Environmental Requirements•There are a growing number of regulatory requirements regarding both vehicle safetyand environmental issues.•Chrysler will meet or exceed all existingor currently proposed U.S. Federal vehicleregulatory requirements and comparable requirements applicable in key marketsoutside the U.S.•For the 2009 model year, over 88 percent ofChrysler’s vehicles achieved five stars forfrontal crash tests, 86 percent achievedthe highest rating for side-impact protection.•The addition of Fiat vehiclesand technologies to Chrysler’sportfolio will accelerate theCompany’s ability to meet regulations.U114Chrysler Is Committed To Safety And The Environment• Federal EmissionsStandards (including C02)• State CO2 Regulation AB1493• State Zero EmissionVehicle Mandate (ZEV)• Low Emission VehicleProgram (LEV)EU Fuel EconomyRegulationsEU EmissionsRegulations• Federal Safety Regulation• Federal Fuel EconomyRegulation (CAFE)EU SafetyRegulationsInternational Standards115Chrysler Complies With Domestic CarAnd Truck CAFE Requirements•Chrysler’s product plans comply with all current and proposed federal Corporate AverageFuel Economy requirements through MY 2015.•For example, 73 percent of Chrysler’s 2009 product lineup offers improved fuel economycompared with last year’s models. Chrysler will continue to improve overall fuel economywith new small car entries, diesel vehicles, electric drive vehicles, and our all-new PhoenixV6 engine.•California and thirteen other states have adopted greenhouse gas vehicle emissionsstandards (“AB 1493 standards”) that require increases in fuel economy. These statescomprise about 50% of the domestic car market.•If the US Environmental Protection Agency allows these states to enforce the AB 1493standards, Chrysler will try its best to complyusing available technology, however as a lastresort it may be necessary to restrict salesof certain vehicle models in those states. Theultimate effect of the California standardson Chrysler’s product plans depends on anumber of developments, asindicated in the Appendix.U116Chrysler Has A Strategy ToComply With Domestic CarAnd Truck CAFE (December Draft Rule)Chrysler’s Integrated Portfolio and Propulsion Strategy Meets CAFE through 2015 MY242628303234363840422008 2009 2010 2011 2012 2013 2014 2015Model Year

EPA Unadjusted Comb. Fuel Economy (mpg)2022242628302008 2009 2010 2011 2012 2013 2014 2015Model Year

EPA Unadjusted Comb. Fuel Economy (mpg)CAFE Standard(Dec 2008 Draft Rule)’11/’13 Car&’14 LDTCreditsused’09/’10Creditsused’08CreditsusedChrysler LLCDomesticPassenger CarFleetCAFE Standard(Dec 2008 Draft Rule)Chrysler LLCLight Duty Truck Fleet‘Green bars indicateaccumulated credits, redbars indicate consumedcredits’08CreditsusedDomestic Passenger CarLight Duty Truck’08Creditsused’09CreditsusedAB1493(approximate*)-Manufacturers with>10% equity mustcombine fleetAB1493(approximate*)-Manufacturers with>10% equity mustcombine fleet*AB1493 uses different tests methods and fleets – line shows an approximate relationship to CAFE FE‘Green bars indicateaccumulated credits, redbars indicate consumedcreditsComply usingAvailable technologyor sales restriction117Chrysler Has A Strategy To Meet ZEVCompliance Requirements•To satisfy the ZEV Mandate in California and states that have adopted the ZEV rules,Chrysler is required to produce and sell a combination of advanced technology vehicles:–Battery Electric Vehicles (Gold credits)–Hybrids and/or Plug-in Hybrids (Silver, Silver+ credits)–and Partial Zero Emission vehicles (reduced-tailpipe-emission vehicles) known asPZEV’s (Bronze credits)•Recently updated ZEV regulations allow someflexibility to generate and apply Gold andSilver+ credits.•For the Battery Electric Vehicle requirement,Chrysler has developed the Dodge Circuit allelectric sports car and plans other BatteryElectric Vehicles in the coming years.•We also have plans to offer a Dodge Ram Pickup Hybrid next year, followed later by RangeExtended Electric Vehicles that combineplug-in capability with a small gasolineengine/generator/battery system to furtherreduce fuel consumption in our mainstreamvehicles.•In combination, Chrysler’s EV products will meetthe ZEV Mandate, as it is currently defined.U118Dodge Circuit Electric Vehicle and RamHybrid contribute to meeting theCalifornia Zero EmissionVehicle (ZEV) mandate.Chrysler Has A Strategy To Meet California’s ZeroEmission Vehicle MandateDodge Circuit Electric VehicleAll ElectricRam HybridBased on Current Portfolio Assumptions Chrysler MeetsCalifornia’s Zero Emission Vehicle MandateHybrid Electric Vehicle ComplianceRange Extended Electric Vehicle ComplianceRequirementBattery Electric Vehicle Compliance2001,3752,0271,9051,9052,02705001,0001,5002,0002,5003,0003,5004,0002009 2010 2011 2012 2013 2014 2015 2016Model Years

VehiclesBankedBankedCarry backcreditsRequirementForecastLEGENDCredits per BuildPlanCredits Req’d byGovernmentBanked CreditsCarried Forward119Chrysler’s Commitment to Safety•Chrysler is committed to designing and building safety into its vehicles.•For the 2009 model year, more than 88 percentof the Company’s vehicles achieved five–starratings from NHTSA for frontal crash tests and86 percent achieved the highest rating for sideimpact protection.•Chrysler had the fewest number of safety-related and other recalls of any major automanufacturer in 2008.•Chrysler achieves early vehicle phase-in by anaverage of 18 percent for safety regulations,which equates to a total of nine million vehicles phased-in early.U120Chrysler NHTSA Regulation Compliance Phase–In(% required / % planned)For every regulation Chrysler achieves early vehicle phase in by anaverage of 18% per regulation, which equates to atotal of 9 millionvehicles phased-in early.Chrysler Is Committed To Safety And To Meeting AllNHTSA Regulatory Compliance121YEARREGULATION2008 2009 2010 2011 2012Total Vehicles withEarly ComplainceFMVSS 126 -Electronic Stability Control55 / 69 75 / 87 95 / 98 ALL3.5 MillionFMVSS 202a -Front Row Head Restraints80 / 86 ALLX140,000FMVSS 202a -Rear Head Restraints80 / 82X100,000FMVSS 208 -Front Impact - 50% Male35 / 60 65 / 74 ALLX X925,000FMVSS 208 -Front Impact - 5% Female35 / 64 65 / 87X1.76 MillionFMVSS 208 - Child Seats50 / 66 ALLX800,000FMVSS 214 - Side Impact - Pole` 20 / 43 40 / 55815,000FMVSS 214 -Side Impact - Moving Barrier20 / 50 40 / 72970,000FMVSS 216 -Roof StrengthTBD EarlyFMVSS 301 -Rear Impact - Fuel Integrity70 / 95 ALLX XX2.4 MillionNHTSA Delayed Rulemaking ...Timing / Requirements UncertainAligning Product Portfolio With Market Trends•Chrysler is changing its mix of product offerings to better align withU.S. market trends anddemands for smaller, more fuel-efficient vehicles.•In 2008, Chrysler’s vehicle lineup, on average, included more large vehicles than the industryaverage.•The Fiat Alliance will accelerate global share gains across all segments and create a stable ofcomplementary products:•Alliance product strength benefits Chryslerin the subcompact (A-segment), compact(B-segment) and midsize (C-segment) vehicle families;•Chrysler's product strength benefits the Alliance in the fullsize vehicle, multipurposevehicle, pickup and minivan segments;•New powertrain technologies fill a void for Chrysler in a variety of applications includingsmall gasoline, diesel, natural gas and bioethanol engines.•Fuel prices at the pump will be a major variable driving change in consumer preference forsmall, fuel-efficient vehicles.•The Alliance with Fiat will allow Chrysler toleverage small-car platforms and recognizedleadership in developing technologies to reduce emissions and increase fuel efficiency.U1220.0%20.0%40.0%60.0%80.0%2008-2015 2008 2015ElectrifiedD SegmentC SegmentB SegmentA SegmentU.S. Industry demandfor small cars willremain steadyChrysler Product Portfolio Emphasizes Segments ThatBetter Align With The U.S. Market Trends And DemandsU.S. IndustryFiat 500B Hatch 5 PassChryslerFiat Alliance enables Chryslerto more rapidly expand productportfolio to meet current and futuremarket demandC – EVO Sedan~57%44%52%+8%Sales Mix: Small & Midsize Vehicles as Percent of Total123Chrysler Has an Aggressive Vehicle“Electrification” Plan•Chrysler’s subsidiary, Global Electric MotorCars LLC (GEM), is the largest producer ofelectric-drive vehiclesin the U.S. today.•Chrysler’s internal group, known as “ENVI,”has focused on electric drive as a primarypath to developing future clean vehicles.•Chrysler electric-drive technology will be applied to front-wheel-drive, rear-wheel-drive,and body-on-frame four-wheel-drive platforms – across all three brands (Chrysler,Dodge and Jeep®).•In addition to all-electric vehicles, Chryslerwill offer Range-extended Electric Vehiclesthat combine the drive components of an electric vehicle with an integrated, gasolineauxiliary power unit and generator to power the electric drive when needed.•The range-extended system provides a totalrange of about 400 miles, including 40miles of zero-emissions, all-electric operation.•Chrysler will have more than 66 ENVI advanced propulsion electric-drive vehicles infleet service this year.•The first Chrysler electric-drive vehicle will be available for retail customers in 2010,with additional models inproduction by 2013.U124Chrysler Has An Aggressive Vehicle “Electrification” Planto Respond to a Broad Range Of Customer DemandsChrysler’s Electrification PlanIncludes Addition of a Battery Electric Vehicle (NEV) Starting in2009 and Continues With Additional BEVs, Range Extended Vehicles, and Hybrids125GEM/PeapodRenewal NEV>200 mpgHEV28-30 mpgJeepENVI #6ReEV40-50 mpgBatteryElectricVehicle(NEV, CEV, BEV)Range-ExtendedElectricVehicles(ReEV)20092010201120122013DodgeRAM 1500HEV Gen 226-28 mpgDodgeRAM 1500HEV Gen 125-27 mpgENVI #3ReEV (or HEV)55-65 mpg2014ENVI #1BEV>200 mpgENVI #2City EV>200 mpgENVI #5ReEV60-70 mpgHybridElectricVehicles(HEV)NOTE: Denotes inclusion inChrysler’s 10Nov2008 ATVM LoanProgram Submission to DOEIn DOE PlanalternativeHEV40-45 mpgENVI #4ENVI #4ReEV>45 mpgInnovation and Features to Meet Customer Needs•Chrysler has continuously invested in innovation that meets real customer needs. Here aresome examples of current or planned innovations:•uconnect: this is Chrysler’s umbrella fortechnologies addressing consumer need forconnectivity and information.–uconnect builds off of Chrysler’s hands-free Bluetooth communication system, SIRIUSBackseat TV, and our 30 gigabyte multimedia infotainment system with navigation andreal-time traffic monitoring.–Dealer-installed Mopar systems now can turn a vehicle into a Wi-Fi hot spot.–As an example of a uconnect feature that iscoming: a “smart” phone can be programmedto start the vehicle, adjust power windowsand locks and set vehicle temperature. Inaddition, an in-vehicle camera can monitor security of the vehicle. If a vehicle is lost orstolen, the phone can even disable the vehicle and locate it using satellite imaging.•Blind Spot Monitoring: introduced on 2009 Chrysler Town& Country and Dodge GrandCaravan minivans, this system detects a possible unseen vehicle when changing lanes.•Active Transfer Case and Front Axle Disconnect System: new on the 2009 Chrysler 300 andDodge Charger, this system offers the efficiency of a two-wheel drive system and the safetyand performance of all-wheel drive when needed.•Rear Cross Path: this system, available on 2009minivans, notifies the driver of a car crossingtheir path when backing up.U126Chrysler Has Continuously Invested In Innovation AndFeatures To Meet Customer NeedsRear Cross Pathinforms the driver about avehicle crossing its path (Chrysler first to marketin 2009Blind Spot Monitoralerts the driver of a vehiclein the blind spot to avoid accidentsuconnectis Chrysler’s umbrella for technologiesaddressing the consumer need for connectivity& informationExample: Chrysler only Sirius back-seat TVActive Transfer Case and Front AxleDisconnect System:Enables improved fueleconomy and AWD mode127Innovation - Chrysler 200C / Connectivity•Chrysler has set itself apart over the yearsbased on its ability to apply its engineeringexpertise and spirit of innovation to building emotionally compelling, high-value cars andtrucks.•The Chrysler 200C EV Concept is a Range-extended Electric Vehicle that shows theChrysler brand’s future direction.•The 200C EV’s design evokes a timeless beauty that marries the organic form andlanguage of the Company’s design roots witha level of sophistication and technologynever before embodied so elegantly in a Chrysler vehicle.•The vehicle also showcases Chrysler’s “uconnect” future – a host ofunique, trend-settinginnovations that will ultimately provide unprecedented convenience to consumers.•To cite one example, a “smart” phone can beprogrammed to start the vehicle, adjustpower windows and locks and set vehicle temperature. In addition,an in-vehicle cameracan monitor security of the vehicle.•If the vehicle is lost or stolen, the phone can even disablethe vehicle and locate it usingsatellite imaging.U128Automotive Innovation – Chrysler 200C Presented at2009 Detroit AutoshowShowcasing Connectivity Features & InnovativeRange-Extended Electric Driving129Next Generation Jeep Grand Cherokee•Chrysler’s revenue in the near term willget a boost with the debut of a redesignedJeep Grand Cherokee.•Jeep is an iconic American brand whose roots go back to World War II, when the U.S.military needed a go-anywhere, do-anythingvehicle to support American troops inevery theater of the war.•Today, Jeep is one of the best-known andstrongest automotive brands in the world.•Jeep Grand Cherokee set the trend as the first luxury SUV.•The new fourth-generation Jeep Grand Cherokeewill be built in the United States andwill feature improved fuel economy and a best-in-class interior.U130Short-term Revenue Coming From New GrandCherokee in 2010 ....

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e131All- New Chrysler 300•Chrysler 300 is the Company’s flagship sedan.•The Chrysler 300C has won more awards thanany car ever – including North American Carof the Year, Motor Trend Car of the Year, Automobile Magazine’s Automobile of the Year,and Car and Driver’s Ten Best list.•The next generation Chrysler 300 will feature stylish new exterior and interior designs,improved fuel efficiency and unprecedented “uconnect” connectivity.•Powertrain options will include anall-new fuel-efficient six-cylinder engine in addition to theHEMI eight-cylinder engine. The HEMI enginefeatures Chrysler’s Multiple DisplacementSystem (MDS) that automatically deactivates engine cylinders for enhanced fuel economy.•Safety features available onthe new Chrysler 300 include:•Rear Cross Path and Blind Spot Monitoringsystems to warn drivers of unseen vehicles•Electronic Stability Control, all speed traction control, and four-wheel anti-lock brakes•Energy-absorbing steering column, rear-sillreinforcement and structure, and availableside-curtain and seat mounted side air bags.U132.... and the New Chrysler 300 in 2010Most Awarded New Car in Automotive History!

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eChrysler LLC Product Launch Cadence•Chrysler has continued to make substantialinvestments in new products and technology andwill launch 24 new vehicles during the next 48 months – eight of these new products arrive inthe next year and a half.•This means the Company will renew more than60 percent of its total sales volume in keymarket segments, with vehicles that include the next-generation Jeep® Grand Cherokee,Dodge Charger, Dodge Durango, Chrysler300 and several exciting new small cars.•Electric drive will be a primary path to developing clean vehicles for all Chrysler product lines.•Led by Chrysler’s internal advanced alternative propulsion vehicle development team called“ENVI,” the Company is making rapid progressand will have 66 ENVI advanced propulsionelectric-drive vehicles infleet service this year.•The first Chrysler electric-drive vehicle will be available for retail customers in 2010, withadditional models in production by 2013.U134Ram LD PickupJourney MidsizeCrossoverRoutan Lg. MPVContract MfgChallenger FullsizeCoupeGr.CherokeeFullsize SUVDurangoFullsize SUVEV RoadsterCharger Full sizeSedanRam PickupHEV Gen ICompact SUV & ReEV20082009201020112012201320142015FIAT based NewCar EntryNew Hybrid or ElectricVehicleB Hatch (Int’l)Ram 2500 MD &3500 HD PickupsRam Cab Chassis CVDCUVContract Mfg.

Calendar YearMidsize MPVMidsize FWD UVGr. Cherokee HEV Gen IIRam HEV Gen IILuxury FullsizeSedanStandard FullsizeSedanFullsize PickupGEMPeapod NEVChrysler 300CFullsize SedanCompactSedanMini-compactBEVCompact Specialty SUV& ReEVLifestyle TruckFullsize/Large MPV& ReEVMidsize Sdn. HEVB Sedan (LAM)A Jeep2WD & AWDLD CommercialVanLarge PickupContract MfgAspen Fullsize SUV HEVDurango Fullsize SUV HEVNear Term CoreProduct LaunchesChrysler Product Launch Cadence With the Addition ofFiat’s Vehicles Allows Us to Meet Customer DemandsMidsize SedanB Hatch25-28mpg25-28mpg21-25mpg38mpg135A HatchContract Mfg.BlankU136Manufacturing 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 isto improve U.S. job situation– no reduction forecasted•Add shifts to handle capacity increase•Capital improvement – new product mix and implementation productivityresults in $182M insavings over original submission137Chrysler Health and SafetyRecord of Continuous Improvement•Chrysler incorporates two primary metrics tomeasures its health and safety record: LostWork Day Incident Rate (LWDI) and IncidentRate. Both are monitored and measured byfederal governing bodies.•The LWDI is a widely used injury indicator that measures the rate of missed or restrictedactivity workdays associated with injury and illness per 100 employees.•Incident Rate, as defined by OHSA, is the number of incidents resulting in days away fromwork for each 100 full-time employees peryear, based on 2,000 hours worked peremployee per year.•National Safety Council has recognized Chrysler facilities for improved and benchmarkhealth and safety performance for a number of years.•Excellence in health and safety performancehelps stabilize, and even lower Companycosts.•Chrysler’s record shows continuousimprovement in health and safety.U1382.1.362008 Industry Average Rate = GM, Ford, Toyota, Honda & Daimler AG/U.S.7.7.97.11.3Chrysler Health and SafetyRecord of Continuous Improvement•Occupational Excellence – Lost Work Day Incident (LWDI) 50% SIC(Standard IndustrialClassification System) with 32 Qualifying Locations•Significant Improvement – 20% LWDIwith 24 Qualifying Locations•Perfect Record – Zero LWDIwith 10 Qualifying Locations•Safety Leadership – 5 years Zero LWDI -Memphis PDC•Million Work Hours – Zero LWDI -Pilot Process Verification Center & Memphis PDCU. S. Incident RateU. S. Lost Workday Rate024681012142000 2001 2002 2003 2004 2005 2006 2007 200800.511.522.532000 2001 2002 2003 2004 2005 2006 2007 2008139Manufacturing ProductivityHarbour Actual•Chrysler manufacturing productivity improved by31.4 percent over the last seven years,taking nearly fourteen hours out of the average time it takes to assemble a vehicle,including its major components.•In 2007 alone, Chrysler improved 7.7 percent,with total HPV of 30.37, tied in NorthAmerica productivity with Toyota to become the benchmark.•Industry productivity data for2008 are not yet published,however HPV deterioration isexpected for the entire industry, due to significant decrease in volumes.U140Manufacturing ProductivityHarbour ActualHours Per Vehicle(Assembly, Stamping, Engine & Transmission)44.2840.6032.9030.3737.4235.8533.712530354045501996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200844.5940.5337.5930.8829.54 

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e n t8.3%7.8%4.2%6.0%2.4%7.7%2007 HARBOUR RESULTSHPV Var. to Chrysler07’ Chrysler------07’ Toyota------07’ Honda31.34+0.9707’ GM32.29+1.9207’ Ford 33.88 +3.5130.3730.37notreleasedChrysler is the Most Efficient Automaker in North America141Chrysler Hourly Labor Cost ProjectionAnnual and Per-Hour-Worked Basis•Chrysler UAW hourly wage rates werebased upon previous labor agreements andof an industry that had the ability to price vehicles competitively in order to coveroperational costs, including labor wages.•As a result of a landmark labor agreement with the UAW in 2007, Chrysler will seea dramatic decline in the hourly laborcost per employee in two phases:–VEBA (Voluntary Employee BeneficiaryAssociation), beginning in 2010.–Hiring of employees at the Tier II hourlywage structure, which was permitted in2008.•The VEBA shifts a significant cost fromcurrent employees and retirees fromChrysler's cost structure toa third-party organization.•As sales increase and the need to add production/shifts back at Chrysler U.S.plants, a hiring opportunity will include a new Tier II wage structure.U142Chrysler 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• VEBA• 20% Tier II83.2M 76M 55MImplemented• VEBAImplementedImplemented• Tier II NotImplemented• 20% Tier II• ContractModifications$49.00$54.00$60.00$74.00/hr$73.88/hr$75.68/hr2006Actual2007ActualCurrent State Post VEBA 80%Tier I /20% Tier IIU.S.TransplantLevelAnnualHoursHoursWorked$605M Savings Annual$605M Savings Annual143BlankU144Procurement Plan•Background: Purchasing Activity•Supplier Concessions•Risks to Plan•Procurement Summary145BlankU146Procurement Plan –Background – Purchasing Activity($ Millions)1472008 Annual Value of Business88% of Purchases Arein NAFTA RegionUS andCanada71%Mexico17%Latin America1%CE Europe1%W Europe6%Japan2%Low Cost Asia2%Non-Production,5.1Service, 1.2Logistics, 2.5Tooling, 0.9PurchasedComponents, 25.6RawMaterials, 3.3Total AVOB: $38.6B96% of Chrysler’s Top 100 Suppliers(80% of AVOB) Sharedwith Either GM or FordProcurement 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.U148Procurement Plan – Supplier ConcessionsChrysler Base PlanProcurement Plan yields$150M net savings in 2009($ Millions)149$75 $75$75$225$1502009 2010 2011 2012Chrysler Net CostReduction 0.25%AnnuallySupplier Concessions$75$300$75Procurement 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 Receivable gap forsuppliers in February & March while funding is required to support production–Sub-tier suppliers aggressively shortening payment terms–Financially troubled suppliers continueto grow – now 22% of Chrysler’sspendU150Procurement Plan – Risks to Plan(illustrative)Payment Estimates: Chrysler, Ford & GMSource: Ducker WorldwideLack of December andJanuary OEM ProductionCreates A/R Gap for Suppliersin February and MarchWhile Funding is Required to Support ProductionSept Nov Jan March May

($ Millions – est.)Payments to SuppliersSupplier ExpenseCashgapCashgap43%57%0% 10% 20% 30% 40% 50% 60%YesNoSub-tier Suppliers Aggressively Shortening Payment;43% of Tier 1 Suppliers Have Received Requests FromSub-tiers For Payment Term CompressionResponses: 95Source: Original Equipment Suppliers Association (OESA) SupplierBarometer January 2009151BlankU152Procurement Plan – Risks to PlanFinancially Troubled Suppliers Continue to Grow – Now 22% of Chrysler’s Spend2.1%2.1%3.1%2.8%3.1%6.0%7.5%1.2%1.1%2.8%7.2%8.0%7.0%7.0%6.9%7.6%4.3%7.4%8.2%7.6%7.3%0%5%10%15%20%25%Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09High RiskRiskConcernNote: Data as of 2/6/2009153U154•Guarantee of OEM Accounts Payable–Enables us to maintain current payment terms for all suppliers versus the demands forpayment pull ahead required bycertain suppliers who continueto threaten us with “stopship”, which started in Q4 2008;immediate cash benefit of $166M.–Allows and encourages lenders to cooperate with their supplier customers.•“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 offunding DIP loan for numerous suppliers.Reduces Cash Assistance for Troubled Suppliers by more than $50MHow Government Assistance of Suppliers Helps USProcurement Summary•Variable cost savings achievable – accretive to Viability Plan•Industry conditions now force OEMs to fundelements of future programs in advance•Industry conditions require substantial andcoordinated restructuring of supply base:–OEMs must concentrate business in “surviving suppliers”–The U.S. Government may have to provide liquidity for automotive suppliers toensure an orderly consolidationAvailability of Credit is Vital toOrderly Reorganization of Industry155BlankU156VII. Potential U.S. Industry Consolidation Study157•A U.S. Industrial Consolidation would create a company better positioned to competewith Toyota and other non-U.S. automakers.•Ability to reduce costs results in significantimproved competitive positioning throughoutthe Business Cycle–Platform Consolidation and Capacity Rationalization–Research and Development Synergies–Elimination of Duplicate Corporate and Operational Staff–Purchasing Synergies–Sales and Marketing Efficiencies•Cost synergies will release capital whichcan be deployed for further technologicalinnovation and potentiallyreduce DOE 136 funding.–Green Technologies–Next Generation Vehicles•Combining the Finance Companies would giveChrysler’s dealers and customers accessto deposit funding.U.S. Industrial Consolidation ExampleQualitative BenefitsU158Source: J.P. MorganU.S. Industrial Consolidation ExampleEstimated Synergy and Benefits($Billions)AreaApproachCash Flow Impact **Total 09 – 16EBITDA Impact **Total 09 – 16PurchasingCombined Global Sourcing of over $100 billionallowing for supplier consolidation and commonpartsProduct / Platform and PowertrainSharingCommon platforms and engineering with commonpowertrains to reduce capital and costDistributionGlobal growth through focused brands andinternational networkOther OpportunitiesManufacturing, logistics, advanced technology, andoverall fixed cost synergies$36 - $54* discounted for lower future industry assumptions$40 – $58* *Source: J.P. Morgan159Combined Synergies Realized InAggregate By Both CompaniesBlankU160VIII. Orderly Wind Down Scenario161Rejection of Chrysler’s Funding Request Leads toUltimately Higher Government OutlaysFailure to grant incremental Government funding request and concessions would lead toChapter 11 with DIP financing estimated at $24 billion.Inability to secure $24 billion of bankruptcyDIP financing leads toliquidation over a 24to 30 month period with the following consequences:•29 manufacturing facilities and 22parts 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, and service.Government would be saddled withenormous social and economic costs:•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.U162Sources: Center for Automotive Research (Nov ’08); IRS DataBook (2007); Company RecordsLoan Request ConsiderationsGranting Loan Request for $5 Billion isin Best Interest of U.S. TaxpayersSources: 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 calculationsCHAPTER 11CHAPTER 11RESTRUCTURING• No$25BDIP FinancingAvailable• Customers Will Not BuyVehiclesCOMMUNITYCOMMUNITYDISTRESSDISTRESS•3,300Dealers Close, resulting in140,000Jobs Lost•$100BAnnual Sales DisappearFrom Local EconomiesINDUSTRYINDUSTRYCOLLAPSECOLLAPSE• Supplier Bankruptcies• Competitor Insolvency•2-3Million Jobs Lost• $150BAnnual Personal Income LostNationwide•31.4Million Customer VehiclesCannot Get Spare Parts/ ServiceCHAPTER 11CHAPTER 11LIQUIDATIONGone:•40,000Chrysler U.S. Jobs•$35BAnnual Supplier Payments•$20BHealthcare Obligations•$7BPayables•$2BAnnual PensionPaymentsNOGOVERNMENTSUPPORTDomestic Auto Industry CollapseU.S. Government Lost Revenueper U.S. Tax filer$1,117Welfare & UnemploymentLost Social SecurityReceiptsLost Personal IncomeTaxes$465$396$256Total ($9B)Current Request($5B)Dec ’08 Loan($4B)Chrysler Continued OperationsCost per U.S. Tax filer forGovernment LoansWITHGOVERNMENTSUPPORT$65$29$36163BlankU164Continuing Production DIP ForecastCash Flow Summary(amounts in $ millions)First Second4/30/09 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 3/31/10 12 Months 12 MonthsUS SAAR (planned)10,70010,70010,70010,90010,90010,90011,20011,20011,20011,50011,50011,50011,07512,000Chrysler Share (US) 5.0% 6.0% 6.0% 6.0% 6.0% 6.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 8.6% 8.0%Monthly All World Shipments 6375757676769292929494949991,346Gross Revenue / Unit 25,21925,21925,21925,21925,21925,21925,21925,21925,21925,21925,21925,21925,21925,219MOPAR / Unit 3,9993,3323,3323,2713,2713,2712,7292,7292,7292,6582,6582,6583,0032,229Net Revenue / Unit 23,37422,84122,84122,79222,79222,79222,35822,35822,35822,30122,30122,30122,57823,330Variable Profit / Unit 2,5682,9812,9813,0193,0193,0193,3553,3553,3553,3993,3993,3993,1855,037MOPAR / Parts 2502502502502502502502502502502502503,0003,000Gross Revenue 1,5771,8921,8921,9271,9271,9272,3102,3102,3102,3722,3722,37225,19033,948Discounts / Incentives (365)(428)(428)(435)(435)(435)(512)(512)(512)(524)(524)(524)(5,638)(5,542)Net Revenue1,4611,7141,7141,7421,7421,7422,0482,0482,0482,0982,0982,09822,55231,406Variable Costs 1,3011,4901,4901,5111,5111,5111,7411,7411,7411,7781,7781,77819,37124,626Variable Profit1612242242312312313073073073203203203,1816,780Fixed Costs (Cash) 6526526496526636796496556546576546497,8667,861EBITDA(492)(429)(426)(422)(432)(449)(342)(348)(346)(338)(334)(329)(4,685)(1,081)Recurring Operating ExpendituresCapital Expenditures 170170167136218243118981052021812042,0132,013Restructuring Payments 404040404040404040333333461397Taxes 1717171717171717171717172002002272262241932753001751551622512312542,6732,610Cash Flows Related to BankruptcyInflowsRetiree Healthcare --------------Rabbi Trust Access --------------FINCO 500-----------500-500-----------500-OutflowsAdequate Protection (1st Lien Interest) 373737373737373737373737449449DIP Interest --29525966738893991071137791,856DIP Line Fees 250-----------250-Employee Incentive Plan --10---------1020New Warranty Fundings 6375757676769292929494949991,346Professional Fees Disbursed 111981010101010101010109120Required Vendor Payments -2,400----------2,400-Utility Deposits 65-----------65-Pre-Funding of Trust Taxes (4)(4)(2)---------(10)-4122,5191581741831902122262322412482555,0513,790Working Capital Related Cash FlowFloorplan Financing 1,2401,5442,142106--1,149--186--6,3671,370Trade Credit (457)(79)-(9)--(96)--(15)--(656)(268)7831,4652,14297--1,054--170--5,7111,102Net Cash Inflows (Outflows)(1,413)(4,639)(2,950)(886)(890)(939)(1,783)(729)(741)(1,000)(813)(838)(17,621)(8,583)Beginning of Month Cash Balance2,4461,033----------2,446-Ending (Cash)/DIP Balance* (1,033)3,6076,5567,4428,3329,27011,05311,78212,52313,52314,33615,17515,17523,757* Initial DIP draws are supplemented bystarting cash balance of $2.4 billion165BlankU166Liquidation AnalysisThe Liquidation Analysis results in $929 million and $3.2 billion available to pay creditors in the lowerrecovery and higher recover scenarios, respectively. A summary of the assumed cost of the liquidation andassumed proceeds from asset sales is shown below:($ Millions)Recovery ScenariosLower HigherForecasted U.S. Cash at Filing (April 1, 2009) 1,340$ 1,340$Wind Down ExpensesPayroll Related Costs (1,999) (1,274)Plant Maintenance and Security (545) (437)Bankruptcy Related Costs (195) (205)Total Liquidation Costs (2,739) (1,917)Cash/(deficit) before Asset Sales (1,399) (576)Assumed Proceeds from Asset Sales2,328 3,817Assumed Proceeds Available for Claimantsbefore Causes of Action929$ 3,241$167BlankU168Liquidation Analysis – 1stLien Lender’s RecoveryRecovery to First Lien LendersLower HigherTotal Assumed Proceeds Asset Sales2,328$ 3,817$Less: Proceeds allocated to US TreasuryMopar Inventory (149) (261)Real Estate (21) (43)Total Assumed Proceeds toFirst Lien Lenders 2,157 3,513Projected Cash at April 1, 20091,340 1,340Total Assumed Proceeds to First Lien Lenders3,497 4,853Total Wind down Costs(2,739) (1,917)Wind down Costs Allocated to US Treasury 5 10Net Wind down Costs Allocated to First Lien Lenders(2,734) (1,907)Net Assumed Proceeds to First Lien Lenders763 2,947First Lien Lender Secured Claims at Filing6,904$ 6,904$Percent Recovery toFirst Lien Lenders 11% 43%NPV of Assumed Proceeds to First Lien Lenders (a) 654$ 2,605$Percent Recovery toFirst Lien Lenders 9% 38%(a) Calculated using a 6.17% annual interest rate($ Millions)169Recovery ScenariosBlankU170Liquidation Analysis – U.S. Treasury RecoveryRecovery to US TreasuryLower HigherAssumed Proceeds from Asset SalesMOPAR Inventory Liquidation 149$ 261$Chrysler Realty Liquidation 21 43Proceeds from Liquidations 171 304Wind down Costs Allocated to US Treasury (5) (10)Net Assumed Proceeds to US Treasury 166 294US Treasury Secured Claims at Filing4,267$ 4,267$Percent Recovery to US Treasury 4% 7%NPV of Assumed Proceedsto US Treasury (a) 146$ 266$Percent Recovery to US Treasury 3% 6%(a) Calculated using a 5% annual interest rate($ Millions)171Recovery ScenariosBlankU172III. Hypothetical Recovery AnalysisExpected Recovery to First Lien LendersThe previous analysis showed the hypothetical ranges of recoveriesassuming low and high recoveryscenarios. It is likely thatactual recoveries will fallwithin that range. Assuming that the asset recoveries areat 85% of the High Scenario and expenses are the average of the Lower and Higher Scenarios, the net“likely” recovery would be $2billion or 29% as follows:($ Millions)Total Assumed Proceeds to FirstLien Lenders - Higher Scenario3,513$Assumed 85% recovery 2,986$Cash at April 1, 2009 1,340Average of Expenses - Lower and Higher Scenario (2,320)Net Assumed Proceeds to First Lien Lenders2,006$First Lien Lender Secured Claims at Filing6,904$Percent 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 months173BlankU174IX. Chrysler LLC Request175BlankU176Chrysler Requests for Funding and Strategic Allianceto Execute Restructuring PlanRequest:Government loan of $5 billionby March 31, 2009 for working capitaland other operating expensesReason:(1) Unusually severe and swift industrydecline in demand for newvehicles has createdshortage of cash from sales(2) Money is needed urgentlyto maintain currentoperations(3) Rejection of request wouldresult in insolvency andpotentially adverse rippleeffects throughout the autoIndustry and U.S. economy$5 Billion FundingRequest:Government approval of Fiatacquiring an ownership interestin Chrysler- initially 35%- option in increase to 55%Reason:(1) Prior approval is required byLoan and Security Agreement(2) Accelerates Chrysler’s accessto key technologies, small fuelefficient vehicles, and newinternational markets(3) Rejection of request wouldresult in expensive and timeconsuming development ofequivalent technology,products, and marketsStrategic Alliance With Fiat177