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Chrysler Group LLC Completes Refinancing and Repays U.S. and Canadian Government Loans in Full
May 24, 2011 , Auburn Hills, Mich.

• More than six years ahead of schedule, Chrysler Group fulfills promise to taxpayers and repays original government loans totaling $6.7 billion, in addition to $1.8 billion of interest and other consideration
   
• Intervention by U.S. and Canadian governments and strategic alliance with Fiat leads to 16 all-new or significantly refreshed vehicles currently in dealerships; more than $3 billion in facility upgrades; and increased employment with the hiring of 6,000 Chrysler Group employees
   
• Company's return to profitability and double-digit worldwide sales increases show new product lineup gaining momentum in marketplace

Chrysler Group LLC today announced the repayment of $7.6 billion in outstanding U.S. and Canadian government loans following the completion of new refinancing transactions. The original loans were repaid in full, more than six years ahead of schedule, along with the payment of accrued interest and additional consideration.

Today, the Company made payments of $5.9 billion to the U.S. Treasury (UST) and $1.7 billion to Export Development Canada (EDC) to retire the loans granted when Chrysler Group began operations in June 2009. EDC is the holding company through which the Canadian federal and Ontario provincial governments extended loans to Chrysler Group.

The Company borrowed $5.1 billion from the UST and $1.6 billion from the Canadian governments in June 2009 ($2.6 billion from the original loan facilities was undrawn and the facilities will be canceled). In total, Chrysler Group has paid the UST $6.5 billion and the EDC $2.0 billion, including $1.8 billion in interest and additional consideration.

"Less than two years ago, we made a commitment to repay the U.S. and Canadian taxpayers in full and today we made good on that promise," said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. "The loans gave us a rare second chance to demonstrate what the people of this Company can deliver and we owe a debt of gratitude to those whose intervention allowed Chrysler Group to re-establish itself as a strong and viable carmaker.

"Paying back the loans, along with the financial community's investment in our refinancing packages, marks another step in the Company returning as a competitive force in the global automotive industry."

Chrysler Group confirmed the completion of new financing transactions consisting of a term loan totaling $3.0 billion, debt securities totaling $3.2 billion and a revolving credit facility of $1.3 billion. The new financing will save Chrysler Group an estimated $350 million a year in interest expenses.

The Company used the net proceeds from the term loan and bonds, together with $1.3 billion from an equity call option exercised by Fiat for an incremental 16 percent fully diluted ownership interest, to repay the government loans. The revolving credit facility remains undrawn.

Chrysler Group continues to have more than $10 billion in liquidity after the refinancing and loan payoffs, which includes the undrawn revolving credit facility.

"Everyone in the extended Chrysler Group family, from employees to union partners to dealers and suppliers, have worked tirelessly to deliver on our promises and to win back public trust in the Company and our products," said Marchionne. "There is more work to be done as we remain focused on fulfilling the goals outlined in our 2010-2014 business plan."

Goldman, Sachs Co. advised Chrysler Group on structuring the financings and Evercore Partners advised the Company's Finance Committee.

Treasury Exits Investment in Chrysler Group
7/21/2011 - WASHINGTON

The U.S. Department of the Treasury announced that it received $560 million in proceeds from the sale of its remaining stake in Chrysler Group LLC to Fiat. With the closing of this transaction, Treasury has fully exited its investment in Chrysler Group under the Troubled Asset Relief Program (TARP).

Fiat paid $500 million to Treasury for its 98,461 shares or 6 percent fully diluted equity interest in Chrysler Group. Fiat also paid $60 million to Treasury for its rights under an agreement with the UAW retirement trust pertaining to the trust's shares in Chrysler Group.

"With today's closing, the US government has exited its investment in Chrysler at least six years earlier than expected," said Assistant Secretary for Financial Stability Tim Massad. "This is a major accomplishment and further evidence of the success of the Administration's actions to assist the US auto industry, which helped save a million jobs during the worst economic crisis since the Great Depression."

Fiat held a call option to purchase Treasury's equity interest in Chrysler Group. This option was exercisable for the twelve months following the repayment of the Treasury loan provided to Chrysler Group. On May 24, 2011, Chrysler Group repaid $5.1 billion in TARP loans and terminated its ability to draw a remaining $2.1 billion TARP loan commitment. On May 27, 2011, Fiat notified Treasury of Fiat's irrevocable commitment to exercise its option to purchase Treasury's 6 percent fully diluted equity interest in Chrysler Group. Pursuant to the Call Option Agreement, the price for the 6 percent fully diluted equity interest in Chrysler Group was determined based on negotiation between Fiat and Treasury.

Treasury committed a total of $12.5 billion to Old Chrysler and Chrysler Group under TARP's Automotive Industry Financing Program (AIFP). With the closing of today's transaction and Chrysler Group's repayment in full of its TARP loans in May, more than $11.2 billion of that amount has been returned to taxpayers through principal repayments, interest, and cancelled commitments. Treasury is unlikely to fully recover the difference of $1.3 billion owed by Old Chrysler. Treasury has the right to recover proceeds from the disposition of the liquidation trust associated with the bankruptcy of Old Chrysler but does not expect a material recovery from those assets. Lazard served as Treasury's exclusive financial advisor on today's transaction.

Statement in Response to 2011 Dodge, Chrysler and Jeep® Steering Column Pivot Rivets

Chrysler Group LLC statement in response to inquiry:

Chrysler Group LLC will conduct a voluntary safety recall to owners of the 2011 Chrysler 200 and Town & Country; Dodge Caliber, Journey, Grand Caravan, Avenger and Nitro; and Jeep® Wrangler, Liberty and Compass models to inspect for rivet presence and alignment.

Some vehicles may have been built with missing or misaligned rivets that could compromise the steering column performance in the event of impact. This does not affect the steering of the vehicle under normal driving conditions.

The Company is not aware of any accidents, injuries or property damage related to this issue. Chrysler Group LLC will replace the components on all affected vehicles. This will be completed at no cost to the consumer.

Approximately 11,351 2011 vehicles built between April 15 and May 14, 2011, are affected.