Chrysler LLC Statement on Expansion of Special Program Offering to Employees at Manufacturing Facilities Scheduled for Closure:

May 17, 2009 , Auburn Hills, Mich. -  As part of the restructuring process, Chrysler LLC announced eight facilities are planned for closure before or by December 2010 – Sterling Heights Assembly Plant (Sterling Heights, Mich.) Conner Avenue Assembly Plant (Detroit, Mich.), St. Louis North Assembly Plant (Fenton, Mo.), St. Louis South Assembly Plant (closed), Newark Assembly Plant (closed), Detroit Axle Plant (Detroit, Mich.), Kenosha Engine Plant (Kenosha, Wis.), and Twinsburg Stamping Plant (Twinsburg, Ohio).

The UAW sought to ensure that affected employees would be afforded the best possible options to manage their uncertain future employment.

As a result, Chrysler will expand the existing 2009 retirement and separation program offerings at these impacted locations, excluding Detroit Axle. As announced earlier, Chrysler employees at Detroit Axle will be transitioned to the Marysville facility scheduled to open in 2010.

Earlier this year, the Company and the Union agreed to offer employees the opportunity to accept various separation or retirement offerings. Employees at all manufacturing facilities are eligible for at least one program offering. The existing program window has been extended until May 26, 2009. Separations will occur on May 27, 2009.

The Company took great care to protect outstanding special program payments in the employee motion filed in court. All special program checks and vouchers previously issued but not cashed and future special program checks and vouchers to be issued will be honored. Funds have been reserved to ensure that future special program separation payment obligations will be met.

We will work closely with the United Auto Workers union to manage these changes in a socially responsible manner.