Network Diversity & Dealer Development Building a Stronger Retail Channel

2011 Game Plan

Marcus A. ForemanManager, Network Diversity & Dealer Development

CHRYSLER GROUP LLCNetwork Diversity & Dealer Development

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• Minority Dealer Update

• 2010 Year In Review (Accomplishments and Initiatives)

• 2011 Game Plan

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42344115

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134137 136151

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105113 113

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3.0% of Total Dealer

4.8% of Total Dealer

10-Year Minority Dealer Count

4.8% of Dealers

7.1% of Volume

Minority Dealer

Count

Total Dealer

Count

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Chrysler Group LLC. ( U.S. Dealer Network )

Non-CMDA Dealer

CMDA Dealer

CHRYSLER GROUP LLCNetwork Diversity & Dealer Development

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• Project Genesis

• 86% of Network carry all CG Brands (CJDR)

• 86% of Minority Dealers carry all CG Brands

• 372 Women - Ownership at 316 Dealerships:

• 66 have more than 25% ownership

• 33 have more than 50% ownership

• Minority Dealer count thru February 28th is 113

46 (41%) are CMDA Dealers

• Minority Dealers : 4.8% of our Dealer Count

Represent 7.0% of the total Sales Volume

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Network Diversity & Dealer DevelopmentBuilding A Stronger Retail Channel

Top 10 Focus Factors:

CHRYSLER GROUP LLCCommunication Initiatives

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CHRYSLER GROUP LLC

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Dealer Candidate Development ( DCD )

GoalPlace 3–5

Candidatesinto dealerships

Number #1 Goal: Find more diversity talentWe’re looking to build and develop a deeper talent pool from both new candidates & existing dealers

Execution:Candidates will work at dealerships and go through a rigorous training program.

Roll Out:Phase 1: Find interested /qualified talent ( “The Bench” )Phase 2: Assess the needs ( training, development, capital )Phase 3: Implementation ( New Points )Goal: Place 3 – 5 candidates into dealerships

Basic Requirements (including but not limited to):

• Automotive Experience ( preferred )

• Effective history of positive performance

• Access to capital

• United States Citizen & Ethnic Minority

• Must pass a background check

CHRYSLER GROUP LLCPerformance Improvement

• Dealer 20 Group Format - Performance Incorporated (An ADP Company)

Description: This is an organized format to help dealers with operational expertise. It will allow our minority dealers to learn from industry professionals and other dealers.

- Three meetings per year in the 20 group format ( Platform for Adopt a Dealer )- Share Best Practices - Operational Excellence - Increased Profitability - Goal Setting

Execution: Delivered by a professional moderator with extensive automotive experience.Audience: CMDA Only

• Polk Cross Sell™ New Vehicle Report

Description: Helps dealers Increase revenue through more effective inventory management

► Grow market share by monitoring the competition & identify areas of opportunity► Decrease costs with increased marketing efficiency

Execution: Communicated monthly and reviewed via conference call for all minority dealers.

• MarketMaster

Description: Helps Dealers maximize sales by focusing their marketing efforts on lost sales opportunities► Identify brand/product performance versus key competitors► Provides a comprehensive view of local trends, demographics, sales and cross-sell information

• Dealer Standards – Minority Dealers

Description: Drives operational and customer excellence.

Total funding by Chrysler Group on the minority dealers behalf.

CHRYSLER GROUP LLCMarketMaster™ identifies incremental sales opportunities

© 2009 Urban Science

Customized market analysis report which:

• Helps dealers maximize sales by focusing their marketing efforts on lost sales opportunities

• Identifies brand/product performance versus key competitors

• Provides a comprehensive view of local trends, demographics, sales and cross-sell information

• Available via hard copy or PDF

Customizedtailored to brand and

segments against competitive set

Focusedzeros in on specific

product opportunities versus competitors

Insighttarget sales efforts to areas with greatest

potential

KEY BENEFITS:

CHRYSLER GROUP LLCMarketMaster™ Details

© 2009 Urban Science

What is it? • MarketMaster™ is a customized market analysis report that evaluates vehicle sales opportunity

at the Chrysler dealer Trade Zone (TZ) level.

Objective? • The objective MarketMaster™ is to Maximize Chrysler Sales Opportunities. The purpose of this

report is to provide each dealer with tools that assist in quantifying incremental sales opportunities. This is achieved through a step-by-step approach.

How does it work?• Once the market and dealership’s TZ are identified, the next step is to begin to understand the

key characteristics of the market. In this process, MarketMaster™ identifies geographical areas, within the TZ, offering possible incremental sales opportunity. To capture this sales opportunity the dealer may need to take necessary marketing actions to realize the full potential that is available. MarketMaster™:

► Pinpoints locations with incremental sales opportunities

► Provides detailed cross-sell analysis of dealers into Trade Zones (TZ)

► Identifies competitors’ performance within the market area

► Assists in highlighting trends and changes in TZ competitive sales and demographics

► Quantifies sales opportunities by model and/or vehicle line

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Dealer Standards

Customer Care Standards

Exceeding Customer Expectations & Loyalty

Promoting Efficient Sales Processes

After SalesStandards

Achieving Service and Parts Targets

SalesStandards

ManagementStandards

Foundation in Place For Success

- Customer Advocacy ► Service Convenience, Repair Accuracy, Resolution Process

- Retail Oriented► Retain and Grow Customer Base, Market Driven

- Repair Quality► Quality Assurance, Right repair tools

- Customer focused processes- Supports all brands and products- Marketing aligned to regional and national themes- Achieves volume and share targets

- Facilities that will meet customer needs and represents our brands

- Staff that is trained - Capital and financing to support the business- Respect for dealership employees

- Listening and responding to their needs and wants- Promptly responding to the phone and internet inquiries - Providing what they ask for- Resolving their problems and concerns

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RETAIL SERVICE DEVELOPMENT PLANNED GROWTH OF COMMERCIAL VEHICLE SALES

Capitalizing on market opportunities

FLEET BUSINESS – STATE BIDS

Overcome Challenges:- Customer Convenience- Independent Shops

Overcome Challenges:- Trained Staff- Service Hours to Meet

Business Owners Needs

Overcome Challenges:- Learning the process- Customer Service

FIAT 500

• Goes on sale in December 2010

• Will attract a new customer base

• Key metro markets

• Select dealers in the country

• Specific branded salon

CHRYSLER GROUP LLC

Diversity Network ConsolidationCJDR = 97 CD = 1 CJ = 9 D = 6

(86%) (1%) (8%) (5%)* Denotes there is no *Dothan CD *CJ of Ann Arbor Galeana

facing dealer *Freedom CJ Sport DT

*Bertera CJ *Courtesy Mtrs Greater Mobile CJ University DT

Hollywood CJ Rainer DT

Galeana CJ *Gresham DT Chase CJ

*Town & Country CJ Miami Lakes CJ

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Project Genesis

- Low Throughput- Declining Franchise Attractiveness- Inadequate Profits- Lack of Reinvestment

- Higher Throughput / per location- Increased franchise attractiveness - Enhanced Profits- Provides sound base for Dealer Reinvestment

Issues: Outcome:

Project Genesis is 86% Complete; full implementation by 2011CYE

CJD = 100% by year-end 2011

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Adopt a Dealer ( Peer to Peer )

“Information is only power when it’s shared”

• Matched up based on KPI’s ( March 1st ) - Volume, Profitability, Geography

• Encourage you to develop a relationship

• Collaborative Learning & Growth

• Performance Improvement Plans

• In-dealership visits

Corporate Assistance:

• Business Management Analysis

• Training & Development

• Market Studies ( Market Master )

• Best Practice Sharing

• Highlighted each month in the Diversity News

CHRYSLER GROUP LLCIncreased Network Diversity Representation

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2011 Diversity Targets

2010 Total Dlrs

Minority Dlrs

% Minority Dealers

(Memo) Minority

Population %

Total Dlrs Thru

January 2011

Total Minority Dlrs Thru January 2011

% Minority Dealers2011 CJDR

Targets2011 FIAT Targets

2011 Total Target

Shortfall

Denver 315 11 3.5% 18.0% 315 11 3.5% 2 2 4 (4)

Great Lakes 308 8 2.6% 18.4% 308 8 2.6% 2 3 5 (5)

Mid-Atlantic 254 7 2.8% 28.0% 254 7 2.8% 3 2 5 (5)

Midwest 309 7 2.3% 25.7% 309 6 1.9% 3 2 5 (5)

Northeast 286 5 1.7% 32.9% 286 5 1.7% 3 2 5 (5)

Southeast 300 17 5.7% 35.5% 300 17 5.7% 3 4 7 (7)

Southwest 311 23 7.4% 46.3% 311 23 7.4% 4 3 7 (7)

West 228 35 15.4% 49.1% 228 34 14.9% 5 7 12 (12)

NATIONAL 2,311 113 4.9% 34.6% 2,311 111 4.8% 25 25 50 (50)

BUSINESS CENTER

Network Diversity Target ObjectivesYE 2010 January 2011 - YTD

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Community Service & Cultivating Diversity

Network Representation

Employee Base

Community Involvement

Trade Associations

NAMAD

Community Service

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Network Diversity & Dealer DevelopmentBuilding A Stronger Retail Channel

Top 10 Focus Factors: