Chrysler and Chery Cooperation Confirmed

Chery and Chrysler Group Finalize Cooperative Agreement

• Chery and Chrysler Group forge new model of international cooperation
• Agreement called win-win for both automakers

Chrysler Group President and CEO Tom LaSorda joined Chery Automobile Co. Chairman and President Yin Tongyue today to finalize the highly anticipated cooperative agreement between the two automakers. Chinese governmental authorities from the State Development and Reform Commission officially approved the agreement and marked the occasion by hosting a first-of-its-kind signing event. The ceremony was held at Beijing's Diaoyutai State Guesthouse. Under the agreement, Chery, based in Wuhu, Anhui Province, China and Chrysler, based in Auburn Hills, Michigan, USA, will work together to develop, manufacture and distribute Chery-made small and sub-compact cars in North America, Europe and other major automotive markets under the Chrysler Group brands. "This is a win-win for both of our companies, and I am confident this will be a successful relationship," said Yin. "Chrysler brands are very well known in the U.S. and Europe. We're prepared to work with Chrysler Group to expand their small-vehicle lineup with competitive products and accelerate both our companies' international competitiveness." Chrysler will identify several small-car models now being developed by Chery in China and work collaboratively to make any necessary branding and regulatory modifications prior to their entry into other markets. Both companies also will jointly develop new globally competitive products based on future Chery small-car platforms. Strategic growth in international markets - while defending market share in North America - is an important part of Chrysler Group's Recovery and Transformation Plan. "This is the start of a very long relationship between Chrysler and Chery," said LaSorda. "Chery's participation in this agreement and their focus on small and sub-compact cars will have a nearly immediate effect on Chrysler Group's offerings in the small-vehicle segments. This strategic partnership is part of a new business model that is allowing us to introduce all-new products more quickly, with less capital spending." Today's announcement is not the first milestone for Chrysler in China. Chrysler's relationship with China began 25 years ago when it formed Beijing Jeep® Corp., the first international automotive joint venture in the country. The DaimlerChrysler Supervisory Board approved the framework for the Agreement earlier this year.