Dear Employees, The U.S. Bankruptcy Court approved a process for the expeditious sale of substantially all of Chrysler LLC’s assets. This is a major step forward as it sets out a swift, clear path to achieve our goal of concluding our alliance with Fiat S.p.A. and create a new company that will be stronger and more competitive.
It is crucial that this transaction be completed in a timely manner in order to secure maximum value for our stakeholders and to preserve key relationships with suppliers, dealers and other business partners. In addition, financial commitments from the U.S. and Canadian governments require the alliance with Fiat be consummated within 60 days of Chapter 11 filing on April 30. Our new labor agreements with the UAW and CAW also depend on prompt completion of the proposed Fiat alliance. As we’ve said many times before, our leadership left no stone unturned as we aggressively pursued a strategy of alliances and partnerships with other OEMs and suppliers around the world. Out of respect for the negotiating process and confidentiality requirements, we have not commented in the past on partnership talks that have not resulted in deals. However, as part of the Bankruptcy Court process, we disclosed that we have previously discussed various transactions with Nissan, General Motors, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda and Toyota and others over an extended period of time. These discussions did not produce any viable alternative to the proposed alliance with Fiat. It’s clear that the Fiat deal represents the best opportunity for us. The court today established a fair and orderly process to confirm that the Fiat transaction represents the best and highest bid for Chrysler’s assets, or promptly identify any other higher and better alternatives. An alternative bidder would have to surpass the value of the terms of the agreement with Fiat to be successful. Going forward, important court dates for us are: • May 20, the deadline for submission of alternative bids • May 26, the deadline for the notice of designation of lead bidder • May 27, the date for the sale hearing to consider the approval of the proposed sale It’s important to remember that during this transition time, our dealers still have great products to offer. Our quality has never been better, as shown by our 29 percent reduction in warranty claims over the last year. For the 2009 model year, we improved the fuel economy on 73 percent of our products. Our dealers not only met their concession goals, but also have continued to show tremendous enthusiasm for our company, our brands and our products in their local communities. To assist our dealers and attract consumers, we are introducing new incentives beginning today. We’re offering as much as $4,000 consumer cash on 2009 model vehicles; a $1,000 owner loyalty incentive for current Chrysler LLC vehicle owners that is good towards most 2008 and 2009 vehicles; and as much as $1,000 credit union bonus cash for qualified members who finance their new vehicle purchase through one of 1,500 participating credit unions. These incentives are valid through June 1, and they make it a great time to shop for a new Chrysler, Jeep® or Dodge. Acclaim for our new products keeps rolling in. For example, the all-new 2009 Dodge Ram 1500 came out on top in a head-to-head competition against the Chevy Silverado, Ford F-150 and Toyota Tundra conducted by Edmunds.com. Edmunds praised the Ram’s 5.7-liter V-8 engine, towing ability, axle ratio, fuel efficiency and the RamBox™ cargo storage system. The publication also raved about interior features such as the heated and vented seats, the navigation system and rear-seat DVD. We realize that thousands of pages of documents have been filed with the court. As media members scrutinize these documents that are now public, you’ll undoubtedly continue to hear and read stories about our business. I want to remind you to go to HYPERLINK "http://scoop.chrysler.com"The Scoop or to HYPERLINK "http://www.chryslerrestructuring.com"www.chryslerrestructuring.com to get the details on all motions and documents that have been filed in court. Once more, thank you for your sacrifices, which have helped lay the groundwork for the swift completion of this process that will enable us to emerge as a vibrant company with bright, long-term prospects. Bob Thanks, Tom Hargrave HYPERLINK "http://www.kegkits.com"www.kegkits.com HYPERLINK "http://www.kegkits.com/JABF/"http://www.kegkits.com/JABF/ 256-656-1924 No virus found in this outgoing message. Checked by AVG. Version: 7.5.557 / Virus Database: 270.12.11/2089 - Release Date: 4/30/2009 5:53 PM -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://okiebenz.com/pipermail/mercedes_okiebenz.com/attachments/20090506/e4b79118/attachment.html> _______________________________________ http://www.okiebenz.com For new and used parts go to www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
