All operations continue normally, announces Chrysler Group Egypt

In a press conference held on May 7, Ed Cummins, CEO of Chrysler Group Egypt Ltd., commented:

"Chrysler Group Egypt Ltd. is open to serve our customers. Chrysler and our dealers will continue to sell and service all company's products, continue to manage and handle all its commitments, and pay suppliers without interruption. It is 'business-as-usual' for Egypt."

It is worth mentioning that Chrysler LLC, based in Auburn Hills, Michigan, recently made two major announcements. The first is that it has reached an agreement in principle to establish a global strategic alliance with Fiat SpA to form a vibrant new company that will result in the world's sixth largest automotive company. The second announcement is the voluntary, and US government-supported, filing for Chapter 11 bankruptcy protection for its US operations on April 30 which is part of the process aimed at expediting the formation of a new company. This process affects 24 of its wholly-owned subsidiaries in North America only.

In a recent White House speech, President Barrack Obama stated that his administration fully supports Chrysler LLC in its restructuring efforts, the alliance with Fiat Group and the formation of a new more viable company.

"No one should be confused about what a bankruptcy process means. This is not a sign of weakness, but rather one more step on a clearly charted path to Chrysler's revival. Because of the fact that the UAW and many of the banks, the biggest stakeholders in this whole process have already aligned, have already agreed, this process will be quick. It will be efficient. It's designed to deal with those last few holdouts, and it will be controlled. It will not disrupt the lives of the people who work at Chrysler or live in communities that depend on it. And it will not affect the ability of American consumers to buy a Chrysler, or to get it serviced and repaired. It's a process that has the full support of Chrysler's key stakeholders and the full backing of the United States government. And I have every confidence that Chrysler will emerge from this process stronger and more competitive," he said.

With this "structured bankruptcy" filing, Chrysler LLC will submit a motion under Section 363 of the Bankruptcy Code requesting the court to swiftly approve the agreement with Fiat and the sale of Chrysler's principal assets to the new company that is being formed with Fiat. The benefit of this type of filing is speed.

"I want to confirm that this filing will allow a leaner new company to emerge in a matter of 30 to 60 days, well-positioned for long-term viability. It's also very important to note that Chrysler's Canadian, Mexican and other international operations, including Egypt, are not part of this voluntary bankruptcy filing, and consequently business will continue normally in them," Cummins commented.

"Further to what Chrysler LLC's Chairman stated, I want to confirm and personally assure everyone that the new company will continue to produce and support quality vehicles under the Jeep, Dodge and Chrysler brands as well as parts under the Mopar brand. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honored without interruption and consumers can continue to purchase our vehicles with complete confidence," he further stated.

Chrysler LLC in the US initiated discussions with Fiat Group more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded. Chrysler and many of its stakeholders worked tirelessly to agree upon concessions that will result in a significantly lower cost base and enable fulfillment of a broader strategic alliance. As a result of this agreement Chrysler and Fiat will be able to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.

"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."

Egypt remains one of Chrysler's most strategic markets and is now poised to benefit greatly from the new alliance. In addition to its current product offerings that includes the best-selling and highly popular Jeep Cherokee, the Chrysler Town & Country minivan and the Dodge Ram, Chrysler Group Egypt Ltd. and its dealer network can look forward to new models of smaller fuel-efficient, high quality vehicles that will suit a bigger base of customers in Egypt. It is worth mentioning that Chrysler Group Egypt has consistently shown improvements year-on-year in terms of sales, driven by some of the world's most popular and exciting brands.