---

Chrysler Announces Q1 2001 Production Forecast of 678,700

8 January 2001

Chrysler Group Announces First Quarter 2001 Production Forecast of 678,700

               Fourth quarter 2000 production was 620,500 units

    AUBURN HILLS, Mich., Jan. 5 The Chrysler Group today
announced a 2001 first quarter production forecast of 678,700 cars and trucks.
This production forecast reflects plant down weeks and reduction of overtime
in line with the lower U.S. industry forecast of about 16.0 million vehicles
for 2001, as well as the need to adjust vehicle inventory to a more normalized
level.
    The first quarter 2001 production numbers for the Chrysler Group reflect
an overall softening of the market, combined with current economic conditions
in the U.S., including a volatile stock market and interest rate changes.  The
company is taking a conservative and realistic approach to its planned
production and will adjust its schedule, as required.
    Fourth quarter 2000 production was 620,500 units.  This reflected plant
down weeks, overtime reductions and unplanned production losses due to the
inclement weather experienced during December.  First quarter 2000 production
was a first quarter record resulting in the build-up of excess vehicle
inventory, which later led to large incentives.