Chrysler Group Reports July 2009 U.S. Sales Increases

AUBURN HILLS, MI - August 3, 2009: Chrysler Group LLC total sales up 30 percent compared with previous month

-- Five vehicles set new monthly sales records for July
-- Jeep Patriot sales increase 134 percent compared with previous year
-- Dodge Caliber sales up 63 percent versus July 2008
-- Chrysler PT Cruiser sales up 24 percent compared with previous year
-- Mopar posted a U.S. sales increase of 9 percent compared with June 2009
-- U.S. Government "CARS" program and Chrysler Group incentive program drives consumers to Chrysler, Jeep and Dodge dealers

The increased consumer traffic was driven by interest in the U.S. Government CARS program, more commonly known as "Cash for Clunkers" and Chrysler Group's easy-to-understand incentive program.

"The government's program is doing what it is designed to do-spur consumers to trade in older gas guzzlers for new, fuel-efficient vehicles," said Peter Fong, President and Chief Executive Officer-Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. "While we don't expect the industry sales forecast to change dramatically, we are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle."

Chrysler Group LLC reported total U.S. sales for July 2009 of 88,900 units, an increase of 30 percent versus June 2009. Compared with the same time period in 2008, sales decreased 9 percent. Retail sales for July 2009 were 76,693 units. On July 27, the Company restarted production at nine of its 11 manufacturing facilities. Overall industry figures for July 2009 are projected to come in at an estimated 11.2 million SAAR.

"The new-vehicle sales market got a shot in the arm the last week of July," said Steven Beahm, Vice President-Sales Organization, Chrysler Group LLC. "As a result of customers visiting their local Chrysler, Jeep or Dodge dealer, largely based on the news of the CARS program, retail sales of Chrysler Group small cars were up 52 percent compared with July 2008 and 106 percent versus June 2009."

The company finished the month with 136,734 units in inventory, representing a 40-day supply. Inventory is down 68 percent versus June 2008 when it totaled 409,331 units.

"We've been working towards a 'pull' system by reducing our inventory, and levels are now at their lowest point in years," Beahm added. "Consumer demand is increasing, our vehicles have the best quality in the history of the company and our manufacturing plants are running at full production to fulfill customer orders."

July Brand Sales Highlights
-- Dodge Journey, Avenger and Caliber and Jeep Patriot and Compass registered their best July sales ever

-- Jeep Patriot sales increased 134 percent (8,059 units) compared with July 2008 and 192 percent versus the previous month

-- Jeep Compass sales were up 95 percent (2,727 units) versus July 2008 and 183 percent compared with the previous month

-- Dodge Caliber sales were up 63 percent (7,718 units) compared with July 2008 and 121 percent versus the previous month

-- Dodge Avenger sales increased 30 percent versus July 2008 (5,022 units) and 143 percent compared with the previous month

-- Dodge Grand Caravan sales increased 37 percent versus July 2008 and 44 percent compared with prior month

-- Chrysler PT Cruiser sales were up 24 percent (2,377 units) compared with July 2008 and 271 percent versus June 2009

-- Mopar posted a U.S. sales increase of 9 percent in July compared with June 2009, which follows a month-over-month sales increase of 8 percent in June 2009

-- Through July 2009, Mopar has launched 200 new Authentic Accessories & Performance Parts

Incentives
Demand for Chrysler, Jeep and Dodge vehicles and consumer traffic continues to increase, reaching a high point for the year in July.

"Customers love our summer events, and as the 2009 model year comes to an end, the company resumes its 'Summer Clearance' event, offering consumers great vehicles with competitive prices and attractive financing," said Beahm.

In conjunction with the U.S. Government's CARS program, "Summer Clearance" resumes Aug. 4, 2009, at Chrysler, Jeep and Dodge dealerships across the United States. Chrysler Group LLC will offer zero percent financing for up to 72 months through GMAC Financial Services on select 2009 model vehicles, or up to $4,500 Consumer Cash to all consumers, regardless of if they have a trade-in vehicle. These incentives are valid through Aug. 31, 2009.

"Everyone shopping for a new car or truck still qualifies for an incentive of up to $4,500-even if they don't have a vehicle that qualifies under the U.S. Government's program," Beahm added.

July 24, 2009 marked the start of the U.S. Government's Car Allowance Rebate Systems (CARS) program, which offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. The amount of the credit is determined based on the fuel-economy improvement between the turn-in vehicle and the new vehicle purchased.

Chrysler Group offers consumers 35 Chrysler, Jeep and Dodge vehicles from which to choose at almost 2,400 Chrysler, Jeep and Dodge dealerships located across the United States.

Chrysler Group LLC U.S. Sales Summary Thru July 2009 ---------------------------------------------------- Month Sales Vol % Sales CYTD Vol % Model Curr Yr Pr Yr Change Curr Yr Pr Yr Change ----- ------- ----- ------ ------- ------ ------ Sebring 2,781 3,816 -27% 13,466 51,838 -74% 300 2,292 3,818 -40% 21,591 43,832 -51% Crossfire 37 197 -81% 355 1,291 -73% PT Cruiser 4,092 3,297 24% 12,683 36,127 -65% Aspen 402 1,213 -67% 5,365 14,446 -63% Pacifica 108 447 -76% 1,835 4,642 -60% Town & Country 6,837 8,070 -15% 50,574 75,876 -33% CHRYSLER BRAND 16,549 20,858 -21% 105,869 228,052 -54% ---------- ------ ------ --- ------- ------- --- Compass 2,736 1,401 95% 8,498 19,794 -57% Patriot 8,084 3,451 134% 21,582 40,135 -46% Wrangler 4,540 6,093 -25% 53,430 52,536 2% Liberty 2,874 3,766 -24% 26,579 44,676 -41% Grand Cherokee 3,520 5,239 -33% 26,610 48,032 -45% Commander 522 2,755 -81% 6,025 19,068 -68% JEEP BRAND 22,276 22,705 -2% 142,724 224,241 -36% ------------ ------ ------ -- ------- ------- --- Caliber 7,814 4,807 63% 25,121 63,918 -61% Avenger 5,616 4,318 30% 20,354 45,771 -56% Charger 2,663 5,475 -51% 32,124 64,000 -50% Challenger 886 2,895 -69% 15,968 3,990 300% Viper 20 88 -77% 329 682 -52% Magnum 0 345 -100% 113 6,594 -98% Dakota 730 2,593 -72% 7,473 19,972 -63% Ram P/U 17,723 21,328 -17% 112,239 150,272 -25% Journey 4,165 3,449 21% 30,114 26,180 15% Caravan 8,405 6,115 37% 50,152 81,920 -39% Durango 233 384 -39% 3,060 15,293 -80% Nitro 1,115 1,651 -32% 11,000 25,549 -57% Sprinter 705 1,098 -36% 3,457 9,501 -64% DODGE BRAND 50,075 54,546 -8% 311,504 513,642 -39% -------- ------ ------ -- ------- ------- --- TOTAL CHRYSLER GROUP LLC 88,900 98,109 -9% 560,097 965,935 -42% TOTAL CAR 22,109 25,839 -14% 129,423 282,986 -54% TOTAL TRUCK 66,791 72,270 -8% 430,674 682,949 -37% ----------- ------ ------ -- ------- ------- --- Selling Days 26 26 178 179 ------- -- -- --- ---