Chrysler Group Egypt Ltd. looks ahead to 2009

This event follows the approval of a bridge loan amounting to $4bn to Chrysler LLC by the U.S. federal government as part of a $17bn financial assistance package provided to the 'Big 3' American automotive companies and the recent agreement for a strategic alliance between Fiat Group and Chrysler LLC.

Mr. Edward Cummins, Chief Executive Officer of Chrysler Group Egypt hosted the press conference and addressed the recent news of Chrysler in Egypt and the U.S. and the company's vision for 2009 and onward.

Chrysler Egypt announced record retail sales for 2008, during which it achieved a 50% increase year-on-year compared to 2007. Sales growth was driven mainly by the all-new Jeep Cherokee which was launched at the beginning of 2008, with customers booking vehicles well into 2009.

With Jeep being a historically popular brand in Egypt, the unrelenting demand for the new Jeep Cherokee continues to bode well for Chrysler Egypt's future performance. The Jeep Cherokee's ideal price positioning is a triumph for Chrysler Group Egypt over its competition as the vehicle provides excellent value-for-money and is perfectly-suited for the Egyptian 4X4 consumer in terms of features and benefits.

"Most importantly, the Jeep Cherokee's long-standing reputation as a reliable vehicle with exceptional longevity allows it to maintain an extraordinary level of consumer loyalty," Mr. Cummins remarked,

2008 has been an eventful and challenging year for Chrysler Group Egypt, as the company successfully undertook its planned separation from Mercedes-Benz Egypt during March 2008. The two companies are now operationally and functionally, totally separate entities, allowing each one to devote its undivided attention and energy to its respective customers and fleet of vehicles in the market.

Further successes during 2008 for Chrysler Group Egypt involved the finalization of a major contract to sell Jeep TJL military Wranglers to the Egyptian Army. The TJL is based on the Jeep brand's most popular vehicle namely the Wrangler, but with a modified performance and payload combination that makes it ideal for severe use and applications. The TJL is assembled exclusively in Egypt by Arab American Vehicles Company (AAV) which is a joint-venture operation between Chrysler LLC and the Arab Organization for Industrialization.

It is also worth mentioning that AAV recently started assembling the new Jeep Wrangler J8, the new generation heavy-duty military vehicle which is based on the popular civilian version Jeep Wrangler Unlimited, at its facility in Cairo. The new model was introduced at the Defence Systems & Equipment International trade show which took place in the UK during September 2007. The Jeep J8 is assembled exclusively in Egypt and is exported worldwide in a variety of either left-hand or right-hand drive configurations.

Other notable successes for Chrysler Group Egypt during 2008 included the expansion of Chrysler's dealer sales and after-sales network through the establishment of a new sales-and-service facility in Hurghada owned by Nile Engineering and another service center in Alexandria owned and operated by El Tarek Nile.

According to Mr. Cummins:

"This expansion allows us to reach a wider customer base by saving them the trouble of traveling to Cairo just to purchase a new Chrysler, Jeep or Dodge vehicle or to service their vehicles."

In its first full year as a stand-alone company, Chrysler Group Egypt, will embark on an aggressive sales effort aimed at maintaining the same level of sales as that of last year despite the challenges facing the industry.

Chrysler Group Egypt plans to introduce two new vehicle models during the first half of 2009 while also continuing to support its top-selling Jeep Cherokee. The introduction of a third model in the second half of 2009 is also being considered.

According to Mr. Cummins aggressive sales will be achieved through more focused and targeted marketing activities during 2009. "We are implementing a range of new marketing programs to ensure a more widespread and aggressive presence in the market and to maintain Jeep, Dodge and Chrysler's brand presence always on top of our prospects' minds", he stated.

Chrysler Group Egypt will expand its aftermarket product mix to include Jeep, Dodge and Chrysler accessories and apparel, which will be sold through the company's authorized dealer network, allowing customers to enjoy the previously unavailable merchandise to complement their vehicles.

The existing dealer network operations from both the sales and after-sales sides will undergo a rigorous and thorough training and communications enhancement program. This is in line with the Company's dedication to improve its services to better serve Chrysler, Jeep and Dodge owners nationwide.

Summarizing the company's new approach Mr. Cummins stated, "Our strategy for 2009 is to open as many new sales channels as possible in order to attain, and hopefully even surpass, our sales targets. Chrysler Group Egypt has appointed a new Fleet Manager dedicated to the exploration of new opportunities in collaboration with our dealers."

"With the new Jeep J8 currently in production, and the introduction of at least two more new models, we are confident that Chrysler Group Egypt's position as a leader in the Egyptian automotive industry is set to soar to new heights."

Chrysler Group Egypt is beginning its 2009 journey in a challenging market situation, and continues to maintain a level of performance that promises to keep its products at the forefront of the industry in Egypt. It is worth mentioning that Chrysler Group Egypt Ltd. is part of Daimler Asia, Africa & Middle East (DCAA) which is the only part of Chrysler LLC's worldwide operation that has shown a constant increase in sales year-on-year.