Chrysler Group Increases Purchases from Minority Suppliers in 2006

Chrysler Group announced today that it spent $3.9 billion with minority suppliers in 2006, representing 13.5 percent of its total purchasing and an increase of $150 million from the previous year. In the last eight years, the company has increased the amount spent with minority suppliers by 129 percent, from $1.7 billion in 1998 to $3.9 billion in 2006. This significant increase continues Chrysler Group’s long-term commitment to the economic development and growth of its minority suppliers.

“Our minority-owned suppliers are dedicated to producing high-quality, cost-effective products for the Chrysler Group,” said Peter Rosenfeld, Executive Vice President — Procurement & Supply, Chrysler Group. “Those companies that meet or exceed our standards in quality, technology, systems cost and supply are creating new opportunities for themselves.”

The Company’s diversity supplier development initiatives extend to its Tier 1 and Tier 2 supplier base. Tier 1 suppliers are expected to source at least 8.5 percent of their procurement through qualified minority suppliers during the 2007 calendar year. Chrysler Group supports several organizations geared to assisting Tier 1 suppliers achieve these goals, including the National Minority Supplier Development Council (NMSDC) and the Canadian Aboriginal Minority Supplier Council (CAMSC). In fact, the Chrysler Group helped establish the CAMSC organization in 2004.

“Chrysler Group’s development programs increase the range of talent and resources available to the company,” said Jethro Joseph, Senior Manager — Diversity Supplier Development, Chrysler Group. “Minority-owned firms have risen to the challenge both domestically and globally.”

Since 1983, Chrysler Group has purchased more than $34 billion from minority-owned companies and has developed a number of programs to build its minority supplier base. Those include a supplier diversity Web site (http://supplierdiversity.daimlerchrysler.com), Chrysler Group’s Matchmaker program and the Minority Enterprise Initiative (MEI).

About Chrysler Group’s Minority Programs:

Supplier Diversity Web Site
Redesigned in 2005, the company's Supplier Diversity Web site is designed to identify and register potential suppliers. For minority-owned suppliers, it serves as a resource to build relationships and understand specific procurement requirements. For the Chrysler Group, it captures suppliers’ capabilities and experience, and helps identify potential suppliers for specific procurement needs.

Matchmaker
In 2000, Chrysler Group developed the Matchmaker program, which, since its inception, has generated more than $1.2 billion in new business opportunities. The Matchmaker program was designed to pair minority and Tier One suppliers and encourages networking and the development of long-term partnerships.

Minority Enterprise Initiative (MEI)
The much-heralded Minority Enterprise Initiative is one of the first programs to link auto manufacturers with minority suppliers and a financial institution (Comerica Bank), and one of the only automotive initiatives to address all aspects of a supplier’s business. MEI was developed to help minority suppliers improve technical capabilities and increase quality and performance.

Industry Recognition
In 2006, numerous leading publications and organizations recognized the Chrysler Group’s diversity initiatives. Chrysler Group was named the “Corporation of the Year” and received the “Global Link President’s Recognition” award from the National Minority Supplier Development Council. The company was selected as “Corporation of the Year” and was presented with the “Corporate Pacesetter Award” by the Northern Ohio Minority Business Council (NOMBC), and chosen as the “Corporation of the Year” by both the Asian Pacific American Chamber of Commerce and the Michigan Minority Business Development Council.

Peter Rosenfeld continues to serve as Chairman of the Michigan Minority Business Development Council on behalf of DaimlerChrysler for 2007.