Text of Chrysler, Cerberus Statement

December 22, 2007
Chrysler Chairman and CEO Expresses Confidence in Chrysler's Operations, Products, Finances and Employees Long-term support from Cerberus Capital Management, L.P. and Daimler AG

AUBURN HILLS, Mich. -- "There have been several recent media reports that have painted an inaccurate picture of Chrysler LLC's current financial position. Therefore, the management of Chrysler and our parent company, Cerberus Capital Management, L.P., felt it imperative to correct the record since such misinterpretations and misperceptions are misleading and could leave the wrong impression in the minds of investors and other interested parties.

First and foremost, it is important to note that Chrysler is not only meeting, but, in many cases, exceeding its financial targets heading into 2008.

Importantly, Chrysler has ample liquidity. We are fully funded with working capital to meet our present and future needs and objectives. We are doing what any other prudent company is doing during this challenging economic environment.

We are trying to instill a sense of urgency throughout the workforce, putting our capital to work effectively and efficiently, streamlining inventory, improving current products and developing new and innovative vehicles. Our dealer body is quite pleased that our inventory of vehicles was down another 4 percent in November.

In a 13-hour meeting this week with the Cerberus board of directors, Cerberus praised and was highly complimentary of Chrysler's progress to date and unanimously approved our 2008 plan. We have a solid strategic direction to return the company to long-term profitability. We are on target and have the unwavering support of Cerberus, as well as our other key partner, Daimler AG.

Cerberus met with its investors last Thursday to share the progress that has been made and to convey to these investors that the company was meeting -- and in many cases exceeding -- its targets. The report was well received.

Like many companies in today's uncertain economic environment, Chrysler is moving aggressively to improve its business. We recognized in advance the increasingly competitive vehicle market heading into 2008. With that, we have been moving aggressively to make our company leaner. The steps we are taking include previously announced volume-related reductions at several North American assembly and powertrain plants and the elimination of four products from our lineup, which is very customary in the auto industry.

However, we are very excited about the new products coming in 2008. These include the legendary Dodge Ram pickup truck, the Dodge Journey crossover, the relaunch of the historic Dodge Challenger -- which has already generated 8,851 customer orders -- and two, all-new, large hybrid SUVs, the Chrysler Aspen and the Dodge Durango, demonstrating our support for the environment and more fuel-efficient vehicles.

For our current vehicle line-up we have already approved more than 260 line item improvements to enhance our products -- most for the 2008 calendar year. The recently completed national labor agreement with the United Auto Workers -- which includes the establishment of an independent retiree health care trust -- provides a framework to improve the long-term competitiveness of the company.

Since August and the first day of the new company, the management team has been working to improve Chrysler's working capital, disposing of non-core (or non-earning) assets and reinvesting this cash into product development, new technology and new innovations for our customers."

The following related statement can be attributed to Mark Neporent, Chief Operating Officer and General Counsel of Cerberus Capital Management L.P.:

"We remain extremely enthusiastic about our investment in Chrysler. Our underwriting assumed, and fully planned, that Chrysl

 

Well, ok then.. When the markets open on Monday I'm curious as to how the stocks are going to go for Dodge on this statement.

 

I think this is a very positive article for those of us who are mopar gear heads. I think it bolds well for future product lines and definitely for soon to be released product like the Challenger. While near and short term successes don't spell the the entire future, certainly hitting their metrics early on will allow reinvestment back into r&d and developing great new vehicles. This gives me encouragement

 

To me this shows that they see that the Challenger will be important to their success. Good find.