Chrysler Invests in St. Louis South Assembly Plant to Accommodate Increased Stow 'n Go Production for Dodge Minivans

$113 Million Capital Investment Planned for Tooling, Facility and Process Changes

AUBURN HILLS, Mich., June 7 -- Due to the popularity of Chrysler Group's 2005 Chrysler and Dodge Minivans with the Stow 'n Go(TM) seating and storage system, the company today announced plans to invest $113 million at its St. Louis (Missouri) South Assembly Plant to accommodate increased Stow 'n Go production. The investment will be put towards the tooling, facility and process changes needed to add flexibility, enabling the plant to build short-wheelbase, long-wheelbase and Stow 'n Go minivans on the same production line. Previously, Chrysler Group only manufactured Chrysler and Dodge minivans with Stow 'n Go at its Windsor (Ontario) Assembly Plant.

"Today's announcement reinforces the company's commitment to our minivan heritage and our manufacturing facilities, creating greater flexibility in our product offerings and the way in which they are built every day," stated Frank Ewasyshyn, Chrysler Group Executive Vice President, Manufacturing. "We also show through our actions that supporting our existing plants in urban America is fundamental to achieving our long-term corporate objectives."

Consumer reaction in early market research clinics for the 2005 Chrysler and Dodge minivans was a home run. Prior to launch, Chrysler Group conducted an extensive survey to gauge response to the exclusive Stow 'n Go seating and storage system, comparing it to every competitor in the market. Overall, Stow 'n Go scored six times higher than Honda Odyssey and Toyota Sienna.

"We're seeing the same positive reaction from our dealers and customers that were echoed in our research clinics," stated Ann Fandozzi, Chrysler Group Director of Family Vehicle Marketing and Product Planning. "Stow 'n Go represents over 70 percent of all 2005 model year orders to date, and is growing. The added production at St. Louis South is an assurance that we can meet our customers' needs and get them into the best minivans on the road today."

According to Jim Nihls, Plant Manager for St. Louis South Assembly Plant, employees have worked diligently in the past year to improve the plant's performance in all key areas of plant operations, preparing the facility for the upcoming changes required to launch Stow 'n Go production. "I'm proud of the progress our employees have made at the plant last year. The trend continues in 2004 as well, contributing to the quality of the minivans that St. Louis South builds daily."

All equipment, facility and process changes begin immediately, while the plant continues to run existing minivan production. Downtime will be minimized, with an expected rolling launch of Stow 'n Go in early 2005.

One major addition in the Body Shop will be a new robotic line that will construct the long-wheelbase minivan's underbody, in order to accommodate seats folding into the floor. The plant will also add tub installation, which is used to store the second- and third-row seats and other items when the seats are in an upright position. Chrysler Group launched the world's first automotive tub installation cell earlier this year at Windsor Assembly.

St. Louis South Assembly Plant is located in Fenton, Missouri, employing approximately 3,600 employees. Fenton is also the site of Chrysler Group's St. Louis (Missouri) North Assembly Plant, home of the Dodge Ram pickup truck.