Chrysler LLC Productivity at Benchmark Levels, According to Harbour Report(TM) North America 2008

- Nearly 14 labor hours per unit or a 31.4 percent improvement since 2001

- Total labor hours per vehicle tied for top ranking at 30.37

- Chrysler plants take top honors in Assembly and Engine categories

AUBURN HILLS, Mich., June 5 -- Chrysler LLC announced today that its manufacturing productivity has improved by 31.4 percent over the last seven years, taking nearly fourteen hours out of the average time it takes to assemble a vehicle, including its major components. In 2007 alone, Chrysler's Manufacturing Operations assembled a vehicle an average of 30.37 total labor hours per vehicle (HPV). Chrysler posted a 7.7 percent improvement in total manufacturing labor productivity to tie with Toyota as industry leaders, according to the Harbour Report(TM) North America 2008, the annual study released today by Oliver Wyman.

"Labor Hours Per Vehicle or HPV is not the only important gauge an auto manufacturer should look at, but a low HPV allows a company to allocate limited resources to other operations in its goals to please their customers," said Ron Harbour, Partner in Charge of Auto Manufacturing at Oliver Wyman. "The HPV reduction of nearly 14 hours is a very impressive turnaround from where Chrysler was just a few years ago.

"Chrysler showed improvement in each of the four manufacturing areas: Vehicle Assembly improved by 9 percent; Stamping improved by 5.7 percent; Engine Assembly improved by 7.1 percent; and Transmission Assembly improved by 1.0 percent.

"We set out to reach this goal in 2001 when we had the highest HPV among the North American OEMs that are tracked in The Harbour Report,(TM) and to have reached this goal is truly an example of how successful we can be," said Frank Ewasyshyn, Chrysler LLC Executive Vice President - Manufacturing. "The journey is never-ending; our Manufacturing Operations will continue its focus on producing high-quality vehicles that satisfy the needs of our consumers, while applying our Smart Manufacturing strategy for even greater performance."

Top Segment Performers

The best-performing assembly plant in North America for labor hours per vehicle is Chrysler's innovative Toledo Supplier Park, co-operated with production partners The Kuka Group, Magna Steyr and Hyundai Mobis-owned Ohio Module Manufacturing Company, where vehicle assembly averages just 13.57 hours, an improvement of 38 percent over last year.

The best performing engine plant this year is the Global Engine Manufacturing Alliance (GEMA), a Chrysler, Hyundai and Mitsubishi partnership, which on average requires only 1.84 hours to assemble an engine, an improvement of 31.3 percent from the previous year.

"These achievements could only be reached with the help from many operational departments. We received great support with efficiencies in engineering hours per vehicle (EHPV) from our Product Development team and good design for manufacturing from our Design Office, as well as all the men and women working in manufacturing," Ewasyshyn added.

"Chrysler reached this milestone with the cooperation and hard work of the United Auto Workers (UAW) union and our members," said General Holiefield - Vice President, United Auto Workers, responsible for Chrysler LLC. "Chrysler's performance in the 2008 Harbour Report is proof that the UAW is committed to bringing world-class levels of competitiveness to the facilities we represent."

Plant Highlights

Four Chrysler LLC plants scored among the top ten assembly plants, including the top spot for the Toledo Supplier Park, which produces Jeep Wrangler and Jeep Wrangler Unlimited. Other assembly plants in the top 10 include: Belvidere (Illinois) Assembly Plant (No. 4) which builds Dodge Caliber; Jeep Compass, and Jeep Patriot; Jefferson North (Detroit) Assembly Plant (No. 8) which builds Jeep Grand Cherokee, and Jeep Commander; and Brampton (Ontario, Canada) Assembly Plant (No. 9) which is home of the Chrysler 300, Dodge Charger and Dodge Challenger SRT8.

Chrysler facilities were the vehicle-segment leaders in three categories: Belvidere Assembly, in Non-Premium Conventional segment for Dodge Caliber; Belvidere Assembly in Compact Non-Premium CUV for Jeep Compass and Patriot; and Jefferson North, in Midsize Non-Premium Utility for Jeep Grand Cherokee.

While GEMA, in Dundee, Mich. was the No. 1 engine plant overall, Chrysler's Mack I (Detroit) Engine Plant was the No. 1 plant in the 8 Cylinder OHC category, at 3.77 labor hours per engine.

In Transmission Assembly, Chrysler was the top performer with an average of 3.36 labor hours per transmission, a 1 percent improvement from last year. The Kokomo (Indiana) Transmission Plant was a repeat leader in the Front Wheel Drive category for the A504 4-speed transmission assembly of 3.51 labor hours per unit.

About Chrysler LLC

Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. Total sales worldwide in 2007 were 2.7 million vehicles. Sales outside of North America were the highest ever with an increase of eight percent over 2006. Its product lineup features some of the world's most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler and Grand Cherokee and Dodge Challenger and Ram. The Chrysler Foundation, the company's philanthropic arm, annually supports hundreds of charitable organizations in the United States and throughout the world. In 2007, the Foundation gave approximately $21 million in charitable donations.