Chrysler Group Announces Changes in Product Development

-- Finalize Product Teams consolidation to three 'architectures' -- Appoint Chief Engineers within each team -- Direct additional focus on advanced development of components and systems

AUBURN HILLS, Mich., May 6 -- Chrysler Group today announced changes to its Product Development organization primarily designed to finalize the consolidation of its Product Teams into three basic architectures. The realigned teams will be called Front-Wheel Drive (combining the Small Car Product Team and the Family Vehicle Product Team), Rear-Wheel Drive (consolidating the Activity Vehicle Product Team and Premium Vehicle Product Team) and Body-on-Frame (previously known as the Truck Product Team).

Consistent with the direction of consolidating the Product Teams into three groups, the following appointments were announced:

-- Larry D. Lyons is appointed Vice President - Front-Wheel Drive Product Team and Core Team Leader. Lyons was formerly Vice President - Small Car Product Team and Small Vehicle Core Team Leader.

-- Craig R. Love who leads the Activity and Premium Vehicle Product Team will have the new title of Vice President - Rear-Wheel Drive Product Team and Core Team Leader. Love was formerly Vice President - Activity and Premium Vehicle Product Teams.

-- Michael F. Donoughe is appointed Vice President - Body-on-Frame Product Team and Core Team Leader. Donoughe was formerly Vice President - Family Vehicle Product Team and Family Vehicle Core Team Leader.

All three positions report to Eric R. Ridenour, Executive Vice President - Product Development.

In addition, a new team has been formed to provide greater focus on advanced development of core components and systems and standardized processes across all product teams.

Frank O. Klegon is appointed to a new position, Vice President - Product Development Process and Components. Klegon, the former Vice President - Truck Product Team, will also report to Ridenour.

Reporting to Klegon are component team leaders including William H. Mattingly, Vice President - Electrical/Electronics Engineering Core; Robert E. Lee, Vice President - Power Train Product Team; William A. Grabowski, who is appointed Director - Body-In-White Exterior Core Team Leader; Matthew C. Reynolds, who is appointed Director - Interior Core Team Leader and Duane A. Spytman who is appointed Director - Chassis Core Team Leader.

Areas involved in development processes -- testing, validation and a new position for the oversight of quality processes -- will also now report to Klegon, including Donald E. Goodwin, Vice President - Scientific Laboratories & Proving Grounds; Roger P. Lundberg, Director - Process (Chrysler Development System & Vehicle Engineering Operations) and Anthony T. Elias, who is appointed Director - Product Development Process Quality.

Also reporting to Klegon is Deborah L. Morrissett, Vice President - Regulatory Affairs.

The following positions continue to report to Ridenour: Mark M. Chernoby, Vice President - Advance Vehicle Engineering; Stephen J. Bartoli, Vice President - Strategy and Daniel C. Knott, Director - Street and Racing Technology.

"This reorganization formalizes the evolution of the Product Teams," said Ridenour. "We created the Platform Team approach to vehicle development in 1989. Those teams were realigned to strengthen product development and take on a greater product focus, then enhanced again in 2001 by adding extended team members from all disciplines to create cross-functional product teams.

"In 2003, with the increase in new product offerings, additional derivatives and the increased pace of bringing products to market, we began the transformation to organizing our teams around vehicle architectures," added Ridenour. "In this structure, the Product Team Vice President has overall responsibility for platform architecture, all the products and derivatives of that architecture plus best practices, re-use and commonality across those products. Below this level, we created Chief Engineers to follow specific programs and make certain that each individual product exceeds the customer expectations for it, has a consistent personality, unique selling propositions and meets all of the demanding functional targets such as performance, fuel economy, ride and handling and the business targets on cost and investment.

"The new Product Development Process and Components group will ensure that we develop components that allow the Product Teams to meet their objectives, while ensuring a high level of commonality and re-use across teams. They will also be responsible for developing new and innovative components that are derived from our global work on best specifications, best methods of testing and validation, best suppliers and best quality. This team will also make certain that we continue to develop our Chrysler Development and Quality Gate system to maintain our leadership in this area."

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