Chrysler is a viable business on a stand-alone basis. Our future is further enhanced through the proposed global alliance with Fiat. Here are the benefits that this strategic alliance with Fiat would bring to Chrysler and consumers.

1. Fiat + Chrysler LLC
= Strategic Alliance Benefits
Chrysler is a viable business on a stand-alone basis. Our future is further enhanced through
the proposed global alliance with Fiat.
Here are the benefits that this strategic alliance with Fiat would bring to Chrysler and
consumers.
Prepared by Chrysler LLC March 19, 2009

2. Fiat Alliance Benefits: Technology Match
Increased R&D and Design Capabilities by Combining
Obtain World-Class Small Engines and Powertrains
Platforms of Two Leading Technology Players
• Fiat would make available to us its entire • Fiat’s vehicle lineup produces the lowest
product portfolio and powertrain technology, CO2 emissions of any major European
worldwide distribution capabilities for automaker, allowing us to immediately adapt
vehicles we produce today and synergies in their technologies into existing and new
the areas of purchasing and engineering, platforms.
among others.
• Their product portfolio is a perfect
• Estimated cash value of Fiat’s contribution complement to ours – allowing us to
(considering the cost to develop these introduce vehicles in the A, B and C
vehicles, platforms and powertrains from segments to compete with our domestic
scratch): equal to or greater than the total competitors. From a distribution standpoint,
amount of loans we have requested from the they are where we aren’t. For example, Fiat
U.S. government. is No. 1 in Brazil and South America, and
has agreed to help distribute our products
Take away: Saves three to five years worldwide.
development time, giving us a major
competitive advantage. Take away: Advances our ability to meet
standards for emissions and fuel efficiency.

3. Fiat Alliance Benefits: More Jobs
Increased Jobs Here in the U.S. by Filling Plant Job Stabilization for Suppliers
Capacity with More Innovative Products
• Stand-alone plan keeps us on track for 24 product
• Production of vehicles for Fiat in North America
launches over the next 48 months, including a family
will allow Chrysler to increase its plant utilization,
of electric-drive ENVI vehicles that will help us meet
helping to preserve and create in excess of 5,000
CAFE requirements and support our country’s
manufacturing jobs.
energy security and environmental sustainability
goals. The global alliance would facilitate that.
Take away: Overall contributions from Fiat and
the synergies we realize will far exceed the value
Take away: Allows us common suppliers on existing
of the government loans.
platforms.

4. Fiat Alliance Benefits: Global Business
Fills Product Line with Small and Fuel Efficient Vehicles that Consumers Want
• More than 70 percent of our 2009 products offer increased fuel economy compared with prior year
models. The alliance would facilitate that even further.
• Our electric and range-extended electric vehicles that start to hit the market in 2010 will clearly give us a
competitive advantage in meeting both consumer expectations and government regulations.
• Because the Fiat vehicles, platforms and powertrains already have come up the learning curves of
testing, validation and launch, startup issues have already been solved.
Take away: Improved quality and customer satisfaction.

5. Fiat Alliance Benefits: Global Business
Increases the Ability to Pay Back the Government Loan Sooner
• Alliance Creates No. 6 Global Automaker With Over 4 million Sold Annually.
• With more credit available to our customers and dealers from the $1.5 billion in Troubled Assets Relief
Program (TARP) funds, we gained 1.4 points of retail market share in February, coming in with an 11
percent share and climbing to the No. 2 spot in the United States in retail sales among domestic
automakers.
• In Canada, we finished No. 1 in sales in February for the first time in our 84-year history.
• If we used even very modest positive pricing assumptions, we would generate an additional $7 billion of
cash flow. When added to the $9 billion in cash flow from stronger sales, this would produce a total of $16
billion in additional cash flow, enough to pay off our debt in only four years, rather than five.
• Our assumption of steady share is conservative, recognizing that we will launch 24 products in the next
48 months, which we’re confident will help us preserve, as well as gain modest share.
Take away: Chrysler is a viable business on a stand-alone basis and our future is further enhanced
through the proposed global alliance with Fiat.