Chrysler Group LLC To Repay U.S. Treasury Department

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ChllcBlkHorz_high.jpgChrysler Group LLC (“Chrysler Group”) announced that it intends, subject to market and other conditions, to repay in full the outstanding obligations under the loans provided to Chrysler Group by the U.S. Department of the Treasury and the Canadian federal and Ontario governments. Chrysler Group intends to complete the repayment during the second quarter of 2011 from proceeds of a new term loan facility and newly issued debt securities to be offered and sold to institutional investors in a private offering exempt from registration under the U.S. Securities Act of 1933.

Chrysler Group intends to use the net proceeds of the term loan
and the offering, together with the proceeds from the recently announced
exercise by Fiat of an option to acquire an incremental ownership
interest in Chrysler Group, to repay its loans from the U.S. and
Canadian governments in full and to pay related fees and expenses. The
completion of the offering, the credit facilities and the equity
investment by Fiat under its call option are expected to occur

The debt securities will be offered and sold in
reliance on an exemption from registration under the Securities Act. The
debt securities have not been registered under the Securities Act, or
the securities laws of any other jurisdiction, and may not be offered or
sold in the United States without registration or an applicable
exemption from registration.

This post does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Forward-Looking Statements

document contains forward-looking statements that reflect management’s
current views with respect to future events. The words “anticipate,”
“assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,”
“project” and “should” and similar expressions identify forward-looking
statements. Such statements are subject to risks and uncertainties
including market conditions and the price and market for securities to
be offered and other risks relating Chrysler Group’s business and
industry, including, but not limited to: the effective implementation of
the Chrysler Group LLC 2010 – 2014 Business Plan outlined on November
4, 2009, including successful vehicle launches; industry SAAR levels;
continued economic weakness, especially in North America, including
continued high unemployment levels and limited available financing for
our dealers and consumers; introduction of competing products and
competitive pressures with may limit our ability to reduce sales
incentives; and our ability to realize benefits from our industrial
alliance with Fiat. If any of these or other risks and uncertainties
occur, or if the assumptions underlying any of these statements prove
incorrect, then actual results may be materially different from those
expressed or implied by such statements. We do not intend or assume any
obligation to update any forward-looking statement, which speaks only as
the date on which it is made.

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