Chrysler Reorganizes Into a New Partnership With Fiat

April 30, 2009- Today President Obama decided to reorganize Chrysler LLC (USA) through a planned voluntary bankruptcy. Under U.S. law, this is an administrative process which will result in a better long-term future for the company, customers, employees, suppliers and dealers. Chrysler operations outside the United States are not part of the bankruptcy filing.

Reorganization clears the path for creation of a new Chrysler-Fiat partnership that can move forward in the 21st century. The majority of Chrysler's assets, factories, operations and people will become part of the new company.

Chrysler, Dodge and Jeep brands as well as Mopar brand will continue under the new company in the short and long-term. Warranties will be honored.

For our part, I want to assure everyone that SAITCO has a good number of Jeep and Dodge vehicles in our inventory ready for immediate delivery, and we expect to continue with "business as usual".

• SAITCO will continue to supply spare parts as normal.
• We will continue to provide personal attention and service.
• We expect to expand our product offerings to meet the needs of our customers.

Following are some key points in this process with Chrysler:

• Chrysler is open to serve our customers. Chrysler and our dealers will continue to sell and service all vehicles, and seamlessly honor warranty claims.
• Chrysler and Fiat have signed an agreement in principle to establish a global strategic alliance to form a vibrant new company with many significant strategic advantages that position it for long-term success.
• Despite substantial progress with many of its stakeholders, our parent Company in the U.S. [Chrysler LLC] was not able to obtain necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.
• Chrysler will file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat. This approved motion should allow a leaner new company to emerge in a matter of 30 to 60 days.
• Starting today, we will build a vibrant new company with less debt, a stronger balance sheet, a richer product portfolio and a viable finance company.

For further information, please visit www.ChryslerRestructuring.com.

Watch President Obama's press conference announcing U.S. Government actions HERE.

Download official press materials HERE.