New 2005 Chrysler PT Cruiser Convertible Launches Production At Chrysler Group's Toluca Assembly Plant

* Same plant that builds award-winning PT Cruiser sedan launches convertible * Rolling manufacturing launch results in zero production lost at plant * Product design and assembly processes contribute to quiet, smooth ride

AUBURN HILLS, Mich., Jan. 15 -- Chrysler Group celebrated today the production launch of the new 2005 Chrysler PT Cruiser Convertible at the company's Toluca (Mexico) Assembly Plant, the same facility that produces the award-winning, segment-busting Chrysler PT Cruiser.

Approximately 2,000 employees joined Dieter Zetsche, President and CEO for Chrysler Group; Wolfgang Bernhard, Chief Operating Officer; Joe Eberhardt, Executive Vice President, Global Sales and Marketing; Roberto Gutierrez, Vice President, Mexico Manufacturing Operations; as well as Hugo Diaz Covarrubias, President of the Mexican Union to mark the occasion.

"We are pleased with the smooth production launch of the Chrysler PT Cruiser Convertible," said Tom LaSorda, Executive Vice President of Manufacturing, Chrysler Group. "Our employees' dedication to customer satisfaction and the application of proven manufacturing processes have created a vehicle with the highest level of quality and head-turning style that is part of the PT Cruiser heritage."

The PT Cruiser era began at Toluca Assembly back in February 2000 with the introduction of the segment-busting vehicle. Since that time, the vehicle has won more than 25 awards from Auto Week, Fortune, and American Automobile Association (AAA), among others. Most recently, the PT Cruiser tied for first place for the best ownership experience in the Compact Car category of Strategic Vision's 2003 Total Quality Index(TM).

Chrysler Group invested approximately $45 million in tooling and equipment at Toluca Assembly for the new Convertible production. The company also implemented a cross-functional launch team that was able to maintain production of the Chrysler PT Cruiser sedan while managing the equipment changeover for the launch. The result was a rolling launch with no loss of production.

During the rolling launch, pre-production Convertibles were built and tested on the same assembly line where the PT Cruiser sedan is manufactured, steadily ramping up while not compromising existing production at the plant. The launch team was able to verify the quality of the equipment and new manufacturing processes seamlessly, enabling a faster ramp-up without compromising quality.

"The entire team at the plant contributed to the successful operations we've seen at Toluca Assembly," stated Roberto Gutierrez, Vice President of Mexico Manufacturing Operations, Chrysler Group. "From the ongoing production of PT Cruiser to the rolling changeover, we achieved positive gains in productivity and quality, without missing a day of production."

Quality Systems

Through the application of team-based operating principles and dedication to continuous improvement, the Toluca Assembly plant has earned a reputation for producing high-quality vehicles with world-class efficiency. Numerous in- plant quality systems, several of which are interconnected, support this effort.

Every area of the plant's operations uses a consistent, quality verification system. This system confirms that the highest level of quality is met at each work zone before a vehicle moves to the next area of assembly. When a potential issue is identified, assemblers isolate the issue and take immediate action for problem resolution.

Technology also plays a key role in quality verification. In the body shop, a state-of-the-art metrology laboratory checks body panels and assemblies for dimensional accuracy. In the trim, chassis and final assembly area, hand-held testers are used by employees for in-station programming of the electronic systems and verification of its functionality.

Even with the launch of the PT Cruiser Convertible, Toluca Assembly Plant continues to trend favorably in terms of vehicle quality. Warranty costs at the facility were second-lowest among all Chrysler Group manufacturing plants for the 2003 model year and improved more than 20 percent between the 2001 and 2002 model years.

Operational Changes

A number of changes were implemented at Toluca Assembly in preparation for PT Cruiser Convertible production, and in order to add greater plant flexibility. New robotic equipment was installed in the body shop's welding operations for improved precision and efficiency. The trim, chassis and final assembly area was expanded to build both sedans and convertibles.

A new dedicated line was installed for the Convertible's underbody process. A combination of robotic and employee-manned work stations weld the PT Cruiser Convertible's underbody, engine compartment and body side systems. This arrangement reduces floor space requirements for a more flexible and efficient plant, resulting in the capacity to build additional body lines within the plant at a minimum investment.

Convertible assemblers use a newly installed ergonomic assist arm to position the top module for installation to the vehicle. A fixture then aligns the top to the rear quarter panels, while fasteners lock the top into the proper alignment. Using the setting fixture assures a repeatable fit to the vehicle, which helps achieve the optimal fit and finish on the final vehicle.

Hands-on Training from Development to Launch

Employees from the plant helped develop and refine the PT Cruiser Convertible's build process. Based on past production experience, best practices from sedan production were incorporated into the Convertible build before the new vehicle launched. Process refinements were identified early in the vehicle's development to ensure that the product and the process worked together prior to the launch of the vehicle.

The Chrysler PT Cruiser is currently sold in over 90 countries around the world.

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