Chrysler Group LLC Considering Plans to Increase Investment in its Kokomo, Ind., Facilities by $85 Million

AUBURN HILLS, Mich., Dec. 14, 2010 /PRNewswire/ –

– Kokomo the recipient of largest total investment in a single community
in a year
– Company’s total investment in U.S. facilities would climb to more than
$3 billion since June 2009

Following recent announcements that it would invest nearly $1.2 billion in its
Kokomo, Ind., facilities, Chrysler Group LLC confirmed that it is looking to
invest another $85 million in its Kokomo Transmission Plant (KTP) for a variety
of powertrain improvements. With this announcement, the Company’s total
investment in U.S. facilities would climb to more than $3 billion since June
2009.

Chrysler Group notified city officials of the potential new investment at the
Dec. 13, 2010, Kokomo City Council meeting. At the same meeting, Chrysler Group
also requested the transfer of the previously approved tax abatement certificate
on the announced $300 million investment from Indiana Transmission Plant I
(ITPI) to KTP to facilitate the production of the next generation eight-speed
transmission.

“We’re moving eight-speed production to KTP because we’re pulling production
ahead and the timing worked better at KTP,” said Brian Harlow, Vice President
and Head of Powertrain Manufacturing, Chrysler Group LLC. “This move opens up
space at ITPI to prepare the plant for production of the front-wheel drive
transmission, which we announced in November.”

At the Dec. 13 meeting, the Kokomo City Council also approved Chrysler Group’s
tax abatement application on the $843 million investment for production of the
front-wheel drive transmission.

“We are grateful to Mayor Goodnight and the Kokomo City Council for their
continued support of Chrysler Group,” said Harlow. “These investments
demonstrate our commitment to this community and our workforce. We look forward
to continuing a partnership that will secure Kokomo’s position as the center of
our powertrain strategy.”

Chrysler Group’s Kokomo Investment Announcements

On Nov. 23, the same day President Obama visited Chrysler Group’s Indiana
Transmission Plant II, the Company announced that it would invest nearly $843
million to accommodate production of a new advanced front-wheel drive automatic
transmission for future Chrysler Group vehicles and help retain nearly 2,250
jobs.

In May and June respectively, Chrysler Group announced that it would invest $43
million and $300 million in its Kokomo facilities. The $43 million investment
will be used to increase capacity at the Company’s Kokomo Casting and Kokomo
Transmission plants, adapt them to support production of the World Engine and
improve processes for the 62TE transmission program. The $300 million investment
will prepare KTP for production of a new highly fuel-efficient eight-speed
automatic transmission for future Chrysler Group vehicles.

When all investments are combined, the City of Kokomo will be the recipient of
the largest investment in a single year in a single community, totaling nearly
$1.3 billion.

In addition to investing more than $1.3 billion in Kokomo, Chrysler Group has
made significant progress toward building a successful enterprise since June
2009, including;

– reporting an operating profit of $565 million for year-to-date 2010;
– reporting the eighth consecutive month of year-over-year sales increases
in November;
– announcing a $600 million investment in its Belvidere (Ill.) Assembly
Plant;
– announcing an investment of $1 billion in its Sterling Heights (Mich.)
Assembly Plant and surrounding stamping facilities as well as its GEMA
(Dundee, Mich.) facility;
– adding a second shift of production – or nearly 1,100 jobs – at its
Jefferson North (Detroit) Assembly Plant;
– announcing that it would add nearly 900 jobs on a second shift at its
Sterling Heights (Mich.) Assembly Plant in the first quarter of 2011;
– launching the all-new 2011 Chrysler 200, Dodge Avenger and Dodge Durango
in December;
– launching the all-new 2011 Jeep Grand Cherokee in May;
– announcing that it will invest $179 million to launch production of the
1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) at the
company’s Global Engine Manufacturing Alliance (GEMA) plant in Dundee,
Mich., creating more than 150 new Chrysler jobs.