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Chrysler Group LLC Announces $1.7 Billion Investment for Next Generation Jeep® SUV; Plans to Add Second Shift of Production at its Toledo, Ohio, Complex
November 16, 2011 , Toledo, Ohio - Chrysler Group LLC announced today that it will invest $1.7 billion to support the development and production of the next generation Jeep® SUV in 2013,
including $500 million at the Toledo Assembly Complex (Ohio). As a result, the Company will add a second shift of production or about 1,100 jobs, bringing total employment at the complex to over 2,800. Full Story
UAW-Chrysler Group National Labor Agreement Ratified by Members
- New four-year labor agreement continues Company's forward progress
- Chrysler Group to increase investments in U.S. facilities to $4.5 billion
- Company looks to add as many as 2,100 employees
- Hourly employees to share in prosperity when achieved
October 26, 2011 , Auburn Hills, Mich. - Chrysler Group LLC confirmed today that a new national labor agreement, covering 26,000 employees, has been ratified by the UAW-represented workforce in the
U.S.
Through the term of the new agreement, Chrysler Group confirms plans to invest an additional $1.3 billion to retool and upgrade plants for the production of new products, bringing the Company's total
U.S. investment to $4.5 billion. Additionally, Chrysler Group may add up to 2,100 new jobs in addition to the more than 2,500 jobs previously added.
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.
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Chrysler Group Recognized for Supporting Employees on Military Duty
- U.S. Department of Defense agency recognizes Company's longstanding support of employees on active military duty and their families
- Company currently has 24 employees on active military leave
- On Veteran's Day, the UAW/Chrysler Local 412 Veterans Committee will hold a commemorative ceremony honoring military medical personnel with guest speaker Major General Richard Stone, U.S. Army
Acting Deputy Surgeon General
November 11, 2011 , Auburn Hills, Mich. - Employer Support of the Guard and Reserve of Southeast Michigan recently presented its employer leadership award to Chrysler Group LLC for the Company's
longstanding support for employees on active military duty and their families.
Deborah Schroeder, Michigan Committee for Employer Support Southeast Region Chair/ Ombudsman Director, presented the award to
Nancy Rae, Senior Vice President – Human Resources, Chrysler Group, and Bill Cousins, Head of Corporate Security, in an informal ceremony at the Chrysler Group headquarters.
Employer Support of the Guard and
Reserve is a Department of Defense agency that develops and promotes the efforts of all American employers to value and support the military service of their employees.
Chrysler Group was nominated for the
award by Steve Zaner of the Company's Corporate Security Group. Zaner is a U.S. Air Force officer who was called to active duty from January through July 2010.
"My family appreciated all the little things
Chrysler Group did for us during my active duty," Zaner said. "I really wanted to say thank you to the Company and to my supervisors and department leaders for being so sensitive to the needs of employees in the
military and their families."
"The Chrysler Group Management Team is so proud of what these employees do for our country," Rae said. "We understand how important it is to help maintain continuity providing
benefits for our employee and their families when they go on active duty."
Chrysler Group currently has 24 employees on active military leave. Among Chrysler Group's U.S. employees, about 195 people are
currently active or inactive Reservists and nearly 4,000 employees are military veterans.
This Veteran's Day, the UAW/Chrysler Local 412 Veterans Committee will hold a commemorative ceremony at Chrysler Group
Headquarters honoring military medical personnel. Guest speaker at the ceremony will be Major General Richard Stone, U.S Army Acting Deputy Surgeon General.
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.
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