Statement regarding J.D. Power and Associates Initial Quality Study (IQS)

Statement regarding J.D. Power and Associates Initial Quality Study (IQS)

Attributable to Doug Betts, Senior Vice President – Quality, Chrysler Group LLC

Today, J.D. Power and Associates announced the results of their 2009 Initial Quality Study (IQS), which measures new-vehicle quality at 90-days of ownership. We were pleased to learn that there are several bright spots for Chrysler Group LLC within this study, which demonstrate that the improvements we have been implementing over the past year are starting to show for the company as a whole and within each of the brands.

First, of the 10 most improved vehicles on the J.D. Power list, five of them were Chrysler Group vehicles, including the top three. The five most improved vehicles are the Chrysler Sebring, Dodge Grand Caravan, Dodge Avenger, Jeep® Wrangler and Jeep Liberty.

Second, the Chrysler Group improved 15 points on the survey, faster than the industry average of 10 points. The industry as a whole saw its greatest improvement since 2004. Despite this fact, Chrysler Group gained ground versus the competition.

The Jeep brand improved by 30 points and moved up three rank positions. This jump is attributable primarily to a 47 point improvement for the Jeep Wrangler.

Among the product highlights are:

• Chrysler PT Cruiser, which tied for first place in the Compact Multi Activity Vehicle segment.
• Chrysler Sebring (sedan and convertible), which finished fourth in the very competitive Midsize Car segment that includes such competitors as Nissan Altima, Pontiac G6, Chevy Malibu, Toyota Camry and Honda Accord. In fact, when filtering out just the Chrysler Sebring sedan, it tied the Nissan Altima for first place in the segment with a score of 81 points.
• Dodge Grand Caravan, which improved by 60 points and now ranks third in the midsize van category.

What the J.D. Power IQS shows us is that we have some forward momentum. We have figured out how to improve vehicles in production and have taken aggressive actions to continue that progress.

During the course of 2008 and early 2009, Chrysler Group has made tremendous progress on quality, which we can see in our internal measures. The fact is that over last year, Chrysler has reduced its warranty claims by 30 percent. Our internal metrics confirm that we are currently operating with reliability that is better than it has ever been in company history. While the improvement is encouraging, we have by no means arrived at a resting place. With the implementation of Customer Satisfaction Teams (CSTs), Customer Promoter Score (CPS) and other initiatives, we are confident that we will continue to see improvements in our vehicle quality, which will exceed the pace of improvement in the industry as we did in the 2009 IQS.

Congress OKs 'Cash for Clunkers'

WASHINGTON -- Last-minute intervention from the White House on Thursday swayed a crucial Democratic senator to rescue a $1 billion "cash for clunkers" plan to boost battered auto sales. The full bill ... cleared the Senate on a 91-5 vote and was sent to the White House for Obama's signature, likely next week. The program, which is expected to go into effect in late July or early August, would give consumers cash incentives to trade in gas guzzlers for new models with higher fuel efficiency. The program "will boost consumer confidence, get the economy going again and reduce our dependence on foreign oil," said John McEleney, [chairman] of the NationalAuto Dealers Association.

Source: The Detroit News

Fiat's plan with the Chrysler PT Cruiser

Fiat, in its infinite wisdom and foresight, has granted to keep production going on the Chrysler PT Cruiser, the U.S. automaker's compact hatchback/station wagon. The PT Cruiser was previously scheduled to end production this summer.

After a quick rinse in bankruptcy and a takeover by Italy's Fiat (which now owns a 20% stake), Chrysler will continue production of the PT Cruiser, using the model until the Fiat 500 is ready to make its North American debut.

Once production of the PT Cruiser ends, the plant will go through a six-month retooling period, during which the plant will be made ready for production the Fiat 500 and the Fiat Panda (which will be rebadged as a Jeep, according to Inside Line). As it gains access to Fiat's dealerships and Europe and Brazil, Chrysler is apparently anticipating demand for its aging, early-retro-cutesy compact car in those markets.

Source: Inside Line content from: http://rumors.automobilemag.com/6555089/news/fiat-saves-chrysler-pt-cruiser/index.html

Leading Index in U.S. May Signal Recession Will End in 2009

The index of U.S. leading economic indicators probably rose in May for a second straight month, reinforcing signs that the worst recession in five decades may end this year, economists said before a report today. The gains in stock prices, consumer confidence and building permits ... bolster forecasts the economy will start growing again in the second half of 2009. “The worst part of the economic decline is behind us,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida.Source: Bloomberg

Chrysler Group LLC Resumes Production

For those who are wondering what the future of Chrysler will be, just wanted to let you know that we're building a new and promising future...

Chrysler Group LLC Announces Production Start at Seven North American Assembly Plants!

One week after finalizing its global strategic alliance with Fiat Group, Chrysler Group LLC announced today that it will resume volume production of vehicles with the start up of seven of its North American assembly plants the week of June 29, 2009.

As part of a phased production ramp-up, the following assembly plants are scheduled to resume production at the end of the month:

- Sterling Heights Assembly Plant (Sterling Heights, MI) - Chrysler Sebring and Dodge Avenger
- Warren Truck Assembly Plant (Warren, MI) - Dodge Ram and Dodge Dakota
- St. Louis North Assembly Plant (Fenton, MO) - Dodge Ram
- Toledo Supplier Park (Toledo, OH) - Jeep Wrangler and Jeep Wrangler Unlimited
- Brampton Assembly Plant (Brampton, Ontario, Canada) - Chrysler 300, Dodge Charger and
Challenger
- Windsor Assembly Plant (Windsor, Ontario, Canada ) - Chrysler Town & Country and Dodge
Grand Caravan
- Toluca Assembly Plant (Toluca, Mexico) - Dodge Journey and Chrysler PT Cruiser

Chrysler Group's Powertrain and Stamping facilities that supply these assembly plants will also be operating. Chrysler's Conner Avenue Assembly Plant, which builds the Dodge Viper, resumed production on June 15. All Chrysler Group plants will be closed during a previously announced two-week Summer Break the weeks of July 13 and 20. Re-start of production at other Chrysler Group assembly plants will be announced at a later date.

Town & Country's June Appreciation Event this weekend!

You are invited to attend our June Appreciation Event. Join us and take advantage of special offers on our exciting line-up of vehicles. Plus, enter for a chance to win a new 2009 Chrysler, Jeep or Dodge vehicle or a trip for four to Orlando, Florida!*.Our vehicles are backed by our best-in-the-business Lifetime Powertrain Limited Warranty. And unlike the Appreciation Event, it will last a lifetime. Save the date and save big with special deals.

Join Us! Friday, June 12, 2009 from 4pm to 8pm and Saturday & Sunday, June 13 & 14 from 10am to 7pm. Lots of Give-Aways! T-shirts, Movie Passes, StarbucksGift Cards, Oil Changes & More! Plus, enter to win an autographed basketball by Portland's #52 - Greg Oden!

It's our way of saying thank you for all your loyalty and support.

The New Town & Country Chrysler Jeep website is launched!

Town & Country Chrysler Jeep has launched a new and improved web site. Our website has a number of customer-friendly features. Customers can access their Inventory section to discover and get information on the model of their choice. They can also learn about current Promotions and Offers in their New Vehicle Specials and Preowned Specials sections! See great promotional offers currently on the site and get up to $5000 off the MSRP on Jeep Patriots and up to $5000 off the MSRP on all Chrysler Town and Country's and Jeep Liberties in stock! And don't forget the Owner Loyalty Cash Back promotion as well...

Customers can check out the latest Finance Specials if they are looking to Lease or Finance a new Chrysler Jeep vehicle. To get information on Chrysler Jeep Financing, please visit our Finance Section. It is also easy to schedule a service appointment online, or to get other information on Chrysler Jeep Service. Comprehensive service coverage has always been a part of Chrysler Jeep's philosophy. The customer drives the vehicle; Town & Country helps him or her take care of it. Their site also gives customers the convenience of ordering Genuine Chrysler Jeep Accessories and Parts online.

The revamped website also features a virtual brochure and photographs giving a 360°view of the interiors and exterior of different models of Chrysler Jeep vehicles thereby giving the customer amazing clarity on the look of the car even before visiting the dealership showroom.

Check out our website to learn more about the Chrysler Jeep model line-up and experience why Town & Country was voted in the Oregon Business' Top 100 Places to Work for 2009!