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foundation for the future


All that we do is a result of who we are The fundamental values of a company rarely change year to year, even decade to decade. The very best, most respected companies in the world allow the values that define them to guide the way they conduct their business and achieve their goals. Chrysler Group LLC’s lineage dates back to 1925, when Walter P. Chrysler first established his namesake automobile company focused on the values of engineering excellence and innovation. These core values have inspired the Company to create an incomparable number of sector and engineering firsts that have transformed the modern automotive industry. In 2009, Chrysler Group formed a global strategic alliance with Fiat S.p.A., a company much like Chrysler with a long, rich history and strong propensity toward technological innovation for its products and production processes. Fiat brings world-class technology, platforms and powertrains for small- and medium-size cars, enabling Chrysler to add these environmentally friendly vehicles to its world-class product line. Today, Chrysler Group designs, engineers, manufactures, distributes and sells Chrysler, Jeep, Dodge and Ram brand vehicles, and Mopar parts and accessories in more than 120 countries around the world. As part of the alliance with Fiat, the Company is also manufacturing and selling the Fiat 500 vehicle in North America. Headquartered in Auburn Hills, Michigan, Chrysler Group operates 33 manufacturing facilities in four countries and employs more than 52,000 people. Our new Company is a reflection of Chrysler Group’s and Fiat’s shared values, as we both strive to be a responsible corporate partner in every community we serve. We are building a solid foundation and a sustainable future by investing in our people, products and manufacturing facilities to support a more economically, environmentally and socially responsible approach to business.


Performance is measured by more than just horsepower

2010 Financial Results

$0.8B

modified operating profit

$7.3B cash

$41.9B net revenues

1.5M

total worldwide sales

9.2%

U.S. market share, up from 8.8% in 2009

13%

Canadian market share, up from 11% in 2009

In 2010, Chrysler Group exceeded its projected financial objectives and signaled the continued transformation and rebuilding of the Company. The Company posted a Modified Operating Profit of $0.8 billion for the year, with Net Revenues of $41.9 billion. Cash at the end of 2010 was $7.3 billion, enabling continued investment in new products as well as in building the value of our brands. Over the past 12 months, we have delivered on our commitment to launch 16 all-new or significantly refreshed vehicles. Chrysler Group’s worldwide sales increased 15 percent in 2010, outperforming worldwide industry sales. Our vehicle sales in the U.S. rose 17 percent compared with 2009, and market share improved from 8.8 percent to 9.2 percent. In Canada, our second largest market, sales grew 26 percent, with market share increasing to 13.0 percent from 11.0 percent in 2009. We realize that these successes and the achievement of our future objectives fundamentally rely on our commitment to economic, environmental and social sustainability.


It’s in our blood. It’s what we do. Chrysler Group has a rich history of creating compelling products that appeal to a wide variety of consumer needs and tastes. In 2010, the Company launched 16 all-new or significantly refreshed vehicles. These vehicles represent the first phase of Chrysler Group’s $23 billion investment in engineering and capital to rebuild and expand our product portfolio and manufacturing infrastructure. In addition, the Company invested approximately $155 million in part to introduce World Class Manufacturing (WCM) principles in our manufacturing operations. WCM fully engages and empowers employees to eliminate waste and improve safety, quality and efficiency. Realizing our success will depend on the knowledge, creativity and dedication of our people to implement this program. As part of our commitment to sustainability, Chrysler Group has also invested in the development of more fuel-efficient technologies. Our efforts are focused on five areas aimed at reducing fuel consumption and emissions: vehicle energy demand; engines; transmissions; axles; and alternatively fueled powertrains, such as flex-fuel, compressed natural gas, and hybrid and fully electrified vehicles. In 2010, we introduced our new Pentastar V-6 engine in 10 vehicles, including the all-new 2011 Jeep Grand Cherokee. The Pentastar V-6 is the most technically advanced six-cylinder engine ever offered by Chrysler Group and improves fuel efficiency on average by 7 percent over predecessor engines. It is expected to be installed in 30 percent of Chrysler Group vehicles and will substantially contribute

to a planned increase in Chrysler Group’s overall fuel efficiency. With the production launch of the Fiat 500 in December 2010, we added a small, fuel-efficient engine from our partner Fiat S.p.A. to the lineup. The 1.4 liter four-cylinder Fiat Fully Integrated Robotized Engine (FIRE), incorporating Fiat’s MultiAir technology, delivers up to a 7.5 percent improvement in fuel economy and CO2 emissions while enhancing performance. MultiAir technology will play an increasing role in our powertrain strategy as it is adapted to future Chrysler Group engines. Two new fuel-efficient transmissions have also been announced: an eight-speed rearwheel-drive automatic transmission that is expected to reduce fuel consumption by up to 12 percent and a nine-speed front-wheel-drive transmission that is planned to improve fuel economy by up to 11 percent. Safety is a key component in the design of every Chrysler Group vehicle. Our vehicles help keep our drivers and passengers safe with a wide range of available features, such as ParkView rear backup camera, Blind-spot Monitoring, Rear Cross Path Detection, Forward Collision Warning and Electronic Stability Control. The Insurance Institute for Highway Safety awarded seven of our 2011 model vehicles with the Top Safety Pick Award*, including the Chrysler 300, Chrysler 200, Dodge Charger, Dodge Avenger1, Dodge Journey1, Jeep Grand Cherokee1 and Jeep Patriot1. We’ve also sponsored innovative safety programs such as SeatCheck, as well as a number of initiatives to address the issue of distracted driving.

*“Top Safety Pick” based on 31 mph side-impact crash test, 40 mph frontal-offset crash test, 20 mph rear-impact test, roof strength testing and the availability of ESC. Tests performed by the Insurance Institute for Highway Safety. For details, visit iihs.org. 1 When equipped with optional side airbags.


16 number of vehicles that were all-new or significantly refreshed in 2010

Chrysler 200 Chrysler 300 Chrysler Town & Country Dodge Avenger

Dodge Challenger Dodge Charger Dodge Durango Dodge Grand Caravan

Dodge Journey Fiat 500 Jeep Compass Jeep Grand Cherokee

Jeep Liberty Jeep Patriot Jeep Wrangler Ram Chassis Cab


The path to sustainable mobility

March 2010

1999

2004

First full-line auto manufacturer to introduce environmentally-friendly CFC-free refrigerants in all company products, beginning with Jeep Grand Cherokee.

EPIC electric minivan offered, a secondgeneration batterypowered fully electric minivan with fastcharge technology and advanced nickel metal hydride batteries.

First U.S. automaker to offer fuel-saving Multiple Displacement System technology with the HEMIÂŽ engine on the Chrysler 300, improving fuel economy up to 20%.

Nov. 2009 Five-year business plan revealed, including longrange product plan and commitment to improve fuel economy by 2014.

The Trenton South Engine Plant becomes the first automotive engine manufacturing facility to receive U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) Gold certification, setting a new industry benchmark for automotive facility design.

1993

2002

June 2009

Jan. 2010

March 2010

First U.S. automaker to begin conversion from solvent paints and primers to high-solid waterborne paints and powder primers.

ISO 14001 certification earned by all Chrysler Group manufacturing facilities, ensuring continuous improvement in environmental performance through a robust environmental management system.

Global strategic alliance announced with Fiat S.p.A., the automaker with the lowest CO2 emissions in Europe. Alliance provides Chrysler Group with access to Fiat’s smalland medium-size cars, as well as fuel-efficient engine technology.

The 2009 Environmental Leadership Award (ELA) program recognizes CO2 output reduction of approximately 370,000 tons, roughly the annual CO2 output equivalent of four large manufacturing plants or 71,000 automobiles operating on the road.

Plans announced to design and produce a fully electrified version of the Fiat 500 for the North American market in 2012.

1992


May 2010

Nov. 2010

Production of all-new Pentastar V-6 engine launched at Trenton South Engine Plant. The Company’s most advanced six-cylinder engine will ultimately replace seven V-6 legacy engines.

Production begins of the all-new 2011 Jeep Grand Cherokee, the first of the Company’s 16 all-new or significantly refreshed vehicles to be produced under World Class Manufacturing (WCM). WCM continuously improves plant efficiency by reducing waste, advancing quality, increasing cost savings and improving the workplace environment, all with a focus on safety.

April 2010

Oct. 2010

Nov. 2010

2010

March 201 1

Three-year alliance with NASA announced to share information related to advanced technologies, including materials engineering, robotics, radar, battery systems and other energy-storage mediums.

Production of the Pentastar V-6 engine is celebrated at Saltillo, Mexico Engine Plant. This new facility incorporates many progressive environmental features, including a system of 1,900 solar cells which reduce CO2 emissions by 7,500 tons and a wastewater treatment plant that saves 30 million gallons of water annually.

Production begins at Global Engine Manufacturing Alliance (GEMA) plant of new 1.4-liter four-cylinder Fully Integrated Robotized Engine (FIRE) with MultiAir technology. This engine cuts emissions by 7.5% and improves fuel efficiency by 7.5%. The GEMA plant in Dundee, Michigan, is a zerowaste-to-landfill facility.

Since 1998, more than 2 million Chrysler Group Flexible Fuel Vehicles (FFVs) have been produced by Chrysler Group brands, capable of running on clean, renewable, Americanmade ethanol fuel, E85.

Fiat brand records the lowest CO2 emissions rating in Europe for fourth straight year.

March 2010

Production of two new fuel-efficient transmissions in partnership with ZF Getriebe GmbH announced: a rearwheel-drive 8-speed transmission expected to reduce fuel consumption by up to 12% and a frontwheel-drive 9-speed transmission expected to reduce fuel consumption by up to 11%.

Dec. 2010 Production of North American version of Fiat 500 begins. The vehicle, equipped with advanced green technology including the 1.4-liter FIRE engine with MultiAir technology, will be sold at approximately 230 dealers across the United States and Canada.

Jan. 201 1 Chrysler Group and the U.S. Environmental Protection Agency (EPA) announce a partnership to evaluate adaptation of a hydraulic hybrid powertrain for large passenger cars and light-duty vehicles.


Investments announced since June 2009

$1.3B

Kokomo Transmission and casting plants (Indiana)

$600M

Belvidere Assembly Plant (Illinois)

$27.2M

Etobicoke Casting Plant (Ontario, Canada)

$850m

Sterling Heights Assembly Plant (Michigan) and two Michigan stamping facilities

$150m

Global Engine Manufacturing Alliance (GEMA) plant (Dundee, Michigan)

$179m

Invested in GEMA to launch 1.4-liter, 16-valve FIRE engine


The Chrysler group community drives Positive change

$500M

Chrysler Foundation charitable grants since its inception

Community involvement is part of Chrysler Group’s long tradition of being a good corporate citizen—one that is actively engaged in projects that make a positive, lasting impact in our communities. The Chrysler Foundation, the philanthropic arm of Chrysler Group, has a long legacy of enriching the physical, educational and cultural needs of local communities in which Chrysler Group conducts business. The Foundation also supports a wide diversity of initiatives—from disaster relief programs to youth development efforts—and from major cultural programs to neighborhood groups engaged in improving social conditions. Since its inception in 1953, the Foundation has awarded more than $500 million in charitable grants. In 2010, the Foundation donated $100,000, $50,000 each to Oxfam America and the United States Fund for UNICEF, to support humanitarian relief and recovery efforts in Haiti after that country’s devastating earthquake. Later in the year, the Foundation contributed $50,000 to the Village of Dundee, Michigan, and another $50,000 to ISOH/Impact in Perrysburg, Ohio, for relief efforts following severe tornadoes that hit the two states. While we have focused on transforming our Company and laying the groundwork for a sustainable future, our most valuable resource—our employees— has been instrumental in promoting positive change by volunteering their time and talents in the communities

where they live and work. Involved employees have demonstrated in concrete ways what it means to be a good neighbor. They have collected and delivered food for community food banks, beautified neighborhoods, built playgrounds in cities across the country, supported the U.S. Marines’ Toys for Tots campaign, joined the fight to save lives by registering for the National Marrow Donor Program and mentored at-risk children. In addition, through the generosity of our employees, Chrysler Group’s 2010 U.S. and Canadian United Way campaign resulted in employee pledges of approximately $4.7 million. Chrysler Group is proud to support United Way’s mission to improve lives by mobilizing the caring power of communities around the world to advance the common good. One of the most important ways we can positively affect our communities is to continue to invest in and promote a sustainable, stable Chrysler Group that contributes to the economic vitality of our communities. Since June 2009, Chrysler Group has made significant progress toward building a successful enterprise, including numerous investments in our facilities, our people and in the creation of jobs. In addition to the investments listed at left, we have made significant investments in support of our new vehicle launches at the Jefferson North Assembly Plant (Detroit, Michigan), Brampton Assembly Plant (Ontario, Canada), Windsor Assembly Plant (Ontario, Canada) and Toluca Assembly Plant (Mexico).


Cert no. XXX-XXX-XXX X

Chrysler Group LLC | 1000 Chrysler Drive, Auburn Hills, MI USA 48326 | chryslergroupllc.com For more information, please contact Chrysler’s sustainability group at sustainability@chrysler.com. This document printed April 2011. Chrysler, Jeep, Dodge, Ram, Mopar and the Pentastar logo are registered trademarks of Chrysler Group LLC. FIAT is a registered trademark of Fiat Group Marketing & Corporate Communication, S.p.A., used under license by Chrysler Group LLC.


Chrysler Group LLC Sustainability Report Prequel