Chrysler Group Moving Forward, Delivering Product Innovation And Going After a New Generation of 'Tuners'

LAS VEGAS, Nov. 4, 2002; Dieter Zetsche, President and Chief Executive Officer of the Chrysler Group, said today that the company is moving solidly forward by delivering industry-leading product design, creating innovative new segments and focusing all efforts on first-rate quality.

Speaking at the opening Innovations Day event for the 2002 Specialty Equipment Market Association's (SEMA) annual trade show, where Chrysler Group is this year's "manufacturer of show," Dr. Zetsche formally announced the creation of a Vehicle Excitement Team (VXT) to develop cars and trucks which highlight Chrysler Group's vehicle personalization and customization initiatives.

Chrysler Group will have more than 100 cars and trucks at this year's SEMA show -- more than any other OEM -- including over 40 vehicles distributed by the VXT to SEMA-member companies for customization and display.

Zetsche outlined Chrysler Group's overall strategic direction to differentiate itself from the competition, and to deliver aspirational new products from each of the brands.

"Designing and building cars and trucks that defy convention and challenge the status quo is something we love doing, something we're good at and something we're determined to do more and more of in the months and years to come," Zetsche said.

The Chrysler Group CEO stated that there are three basic areas in which a company can focus its talents and energies in order to differentiate itself from other manufacturers. Those include delighting the customer, achieving lean processes in its operations and delivering truly aspirational products that people will line up to buy.

"In order to succeed, you have to be competitive in all three areas, and lead in one," Zetsche noted. "We will definitely be competitive in operational excellence and the customer experience, but the third area -- product excellence -- is where we're going to settle for nothing less than the leadership position."

Zetsche also stressed that product quality is an integral part of the company's strategy to achieve product excellence, and that the focus on quality is at the very foundation of each of the Chrysler Group brands.

"We are dedicated to building cars and trucks with outstanding quality and we are moving quickly to make this happen," he said, citing recent gains in external quality measurements as well as the recent implementation of the company's seven year/70,000 mile powertrain warranty. "Product quality is a living, breathing part of today's Chrysler Group."

Chrysler Group to Strengthen Link to Aftermarket Community

Jim Schroer, Executive Vice President - Global Sales, Marketing and Service, Chrysler Group, further detailed the company's product and aftermarket focus to make Chrysler, Jeep® and Dodge vehicles the "coolest" on the road.

"We've got a three-pronged approach for developing aftermarket and performance enthusiast interest in our cars and trucks," said Schroer. "One way is cool, limited-edition vehicles we do ourselves, like the three Dodge SRT vehicles. The second way is through some great customizing companies that do image vehicles for us for the shows. And the third way is supporting performance enthusiasts with Mopar parts. We are committed to building on all three."

"We're catching the next wave," said Schroer. "We're going after a new generation of tuners and appealing to the compact performance market. Vehicle personalization is hot, and our aim is to make Dodge, Chrysler and Jeep® out to be the coolest vehicles on the road."

The idea, Schroer adds, is to do things that connect Chrysler, Jeep and Dodge vehicles to a whole new generation of buyers now aged from 12 to 25 years.

"We want to be the three brands of American vehicles that the consumer market tricks up the most," added Schroer. "We want to be the company that connects to the next wave. Just as our work with SEMA members will propel our emphasis on personalization, so too will our dealers.

"We've brought 4,000 dealers to Las Vegas to show them how this aftermarket trend helps them, too," said Schroer. "By making our Chrysler, Jeep and Dodge dealerships customization destinations -- the industry's speed shops -- they can grow parts and service business. We want the dealers to display customized cars as a way to signal enthusiasts that our dealerships are the place to go for aftermarket parts, service and information they won't find anyplace else."