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Tom LaSorda Auburn Hills February 14, 2007 DAIMLERCHRYSLER 2006 RESULTS ANNUAL PRESS CONFERENCE CHRYSLER GROUP RECOVERY & TRANSFORMATION PLAN

CHRYSLER GROUP RECOVERY AND TRANSFORMATION PLAN 2006 Operating Results Euro (Millions) Observations Intense competition in U.S. Gas prices drive shift in consumer preferences from large SUV’s, trucks, minivans to mid/small vehicles CG derives over 70% of its retail sales from the minivan / truck / SUV segments Global commodity and continued material cost headwinds pressure margins Vehicle inventories not aligned with market demand Dealer relations € (1,118) 119 51 (1,164) (124) 1Q 2Q 3Q 4Q

PROFIT DETERIORATION FACTORS CHRYSLER GROUP RECOVERY AND TRANSFORMATION PLAN Operating Profit FY 2005 Operating Profit FY 2006 1,534 -1,118 - 2,652 Improved efficiency and fixed costs Decrease in shipments reflecting change in customers’ demand Adjustments of production volume Negative net pricing Higher material cost Euro (Millions)

TWO PART PLAN Recovery Short-term progress on profitability Return on sales of 2.5% by 2009 Strategic Transformation Mid-term change of business model Achieve and sustain benchmark performance CHRYSLER GROUP RECOVERY AND TRANSFORMATION PLAN

WM1 Product Strategy / Portfolio Management Capital Management WM7 Fixed Cost Management WM2 Structural Changes / Manufacturing WM3 Material Costs Management WM4 Revenue Management WM5 Quality WM6 Chrysler Group Executive Committee Brand Equity / Right New Products Investment Efficiency Rightsizing / Health Care Cost Control Capacity Utilization Global Sourcing Pricing / Mix / Dealer Network WM – Work Module Warranty Cost Reduction CHRYSLER GROUP RECOVERY PLAN IMPLEMENTATION TEAMS

KEY MEASURES CHRYSLER GROUP RECOVERY PLAN Capacity / Productivity Material & Fixed Costs Revenue Management Continue product offensive (8 new and 5 refreshed products in 2007) Improve retail / fleet mix Accelerate global growth Effective marketing / incentive spending Reduce and optimize dealer network to improve dealer profitability

KEY MEASURES CHRYSLER GROUP RECOVERY PLAN Capacity / Productivity Material & Fixed Costs Revenue Management Reduce material costs by up to $1.5b by 2009 Explore sale / outsourcing of non-core operations Select parts distribution processes Transportation services Select support functions Assumptions for successful union negotiations Continue product offensive (8 new and 5 refreshed products in 2007) Improve retail / fleet mix Accelerate global growth Effective marketing / incentive spending Reduce and optimize dealer network to improve dealer profitability

KEY MEASURES CHRYSLER GROUP RECOVERY PLAN Capacity / Productivity Material & Fixed Costs Reduce total assembly capacity by 400,000 Eliminate shifts: Newark & Warren in 2007, St. Louis South in 2008 Idle Newark Assembly plant in 2009 Idle Cleveland parts distribution center in December 2007 Reduce powertrain, stamping and component capacity Revenue Management Reduce material costs by up to $1.5b by 2009 Explore sale / outsourcing of non-core operations Select parts distribution processes Transportation services Select support functions Assumptions for successful union negotiations Continue product offensive (8 new and 5 refreshed products in 2007) Improve retail / fleet mix Accelerate global growth Effective marketing / incentive spending Reduce and optimize dealer network to improve dealer profitability

CHRYSLER GROUP RECOVERY PLAN Special retirement, separation and attrition programs will be announced later EMPLOYEE IMPACT – 13,000 TOTAL Salary Reduce Salaried employment by 2,000 over two years Hourly Reduce Hourly employment by 11,000 over three years (9,000 in U.S. and 2,000 in Canada) 4,000 Assembly Plants 1,000 Powertrain and Stamping 1,000 Other, including potential sale of non-core functions 3,000 Technology, efficiency and productivity 2,000 Canada - Technology, investment efficiency, and productivity 11,000 TOTAL HOURLY

RESTRUCTURING CHARGES AND ADDITIONAL EFFECTS Restructuring Charges (in €/$ bn) 2007 Restructuring Charge Up to € 1.0 ($ 1.3) Cash Effect € 0.8 ($ 1.0) Additional Effects (in €/$ bn) 2007 Inventory Adjustment € 0.2 ($ 0.3) CHRYSLER GROUP RECOVERY PLAN Total Up to € 1.0 ($ 1.3) € 1.0 ($ 1.3)

ASSUMPTIONS AND IMPROVEMENTS Base Planning Assumptions SAAR (in Mil) Pricing 17.2 17.0 <>

Current Business Model Redesigned Business Model Product-centric Customer and Brand Focus NAFTA-centric Global Balance Internal Resource Driven Alliances and Partnerships Product offensive, mix shift and powertrain investment Dealer network optimization and component / architecture sharing Manufacturing, supply and sales footprints optimized to maximize global growth and profitability Leveraging partnerships for growth & to manage costs Creative and efficient use of alliances to achieve geographic, market segment, and product opportunities CHRYSLER GROUP TRANSFORMATION PLAN STRATEGIC TRANSFORMATION

2006 PRODUCT OFFENSIVE CUSTOMER AND BRAND FOCUS CHRYSLER GROUP TRANSFORMATION PLAN Wrangler 4 dr Patriot Pacifica Freshening Durango Freshening Sebring Sedan Caliber Wrangler 2 dr Nitro Compass New SRT8 Grd Cherokee New New New New New New New New New Chassis Cab Aspen JAN FEB MAY JUN APR JUL AUG MAR OCT DEC NOV SEP

2007 PRODUCT OFFENSIVE (8 NEW, 5 REFRESH) CUSTOMER AND BRAND FOCUS CHRYSLER GROUP TRANSFORMATION PLAN Avenger Grand Cherokee CRD Magnum Freshening Sebring Convertible Liberty Ram 4500/5500 Chassis Cab Dakota Freshening Viper SRT10 Sprinter Town & Country Caravan Caliber SRT4 300 & Charger Freshening JAN FEB MAY JUN APR JUL AUG MAR OCT DEC NOV SEP New New New New New New New New

CHRYSLER GROUP TRANSFORMATION PLAN CUSTOMER AND BRAND FOCUS Product offensive continues (brand equity and differentiation) New versions of minivans, pick-up truck, and select LX vehicles 20 plus all-new vehicles; 13 refreshed All-new commercial segment expansion (Sprinter and Class 4&5) Product mix shift to more fuel efficient vehicles Powertrain revolution $ 3 billion investment plan in new engines, transmissions, and axles BLUETEC diesel engines from MCG / Cummins Dealer network optimization / stronger brand focus

CHRYSLER GROUP TRANSFORMATION PLAN CUSTOMER AND BRAND FOCUS POWERTRAIN PORTFOLIO MEASURES GASOLINE DIESEL HYBRID TRANS / AXLE Action Benefits Increased Fuel Economy Increased Performance Reduced Complexity I-4 families: from 3 to 1 V-6 families: from 4 to 1* * Target I-4 World Engine V-6 Phoenix Engine I-4 MB Engine V-6 MB Engine LD Cummins Diesel Full Hybrid Mild Hybrid Dual Clutch Transmission Common Axle Program

CHRYSLER GROUP TRANSFORMATION PLAN CUSTOMER AND BRAND FOCUS REDUCE NUMBER OF PLATFORMS FROM 12 TO 7 BY 2012 FWD UNIBODY RWD UNIBODY BODY-ON-FRAME 5 3 4 3 2 2 2006 2012 7 12

CHRYSLER GROUP TRANSFORMATION PLAN GLOBAL BALANCE Defend and grow Chrysler Group NAFTA strongholds NAFTA nameplate consolidation in selected vehicle segments Add new non-NAFTA vehicle programs crucial to global expansion Leverage 3rd party alliances to cost effectively access regional products and markets $5+ billion additional purchasing to low cost sources – balance supplier footprint

CHRYSLER GROUP TRANSFORMATION PLAN ALLIANCES AND PARTNERSHIPS Partner to accelerate growth and leverage resources Manufacturing Assemble minivans for VW Retail Network Marketing Hyundai in Mexico Small Vehicle Segment Chery in China Focused Alliances GEMA World Engine, Hybrid Strong NAFTA Position Select Regional Expansion

400,000 unit capacity reduction Shift reductions; 1 plant to be idled; 1 parts distribution center to be idled Workforce reductions of 13,000 Global market opportunities with low cost sourcing Strong product pipeline $3 billion powertrain investment leads to a more fuel efficient product line-up Dealer network optimization $4.5 billion targeted savings; including up to $1.5 billion targeted material savings 2.5% return on sales CHRYSLER GROUP RECOVERY AND TRANSFORMATION PLAN SUMMARY KEY MEASURES By 2009