Court Approves Sale of Chrysler LLC Operations to New Company Formed with Fiat

AUBURN HILLS, Mich., June 1 /PRNewswire/ -- Chrysler LLC today announced that
the U.S. Bankruptcy Court, Southern District of New York, has approved its
request to sell substantially all of its operations to Chrysler Group LLC, the
new company formed in alliance with Fiat SpA.

"With this approval, the new Chrysler Group is created and can prepare to
launch as a vibrant new company formed with Fiat," said Robert L. Nardelli,
Chairman and Chief Executive Officer of Chrysler LLC. "Through the hard work
and foresight of many Chrysler stakeholders, Chrysler Group will soon begin
operations with significant strategic advantages, such as a wage and benefit
structure for active and retired employees that is competitive with those of
transplant manufacturers; a reduction of debt and interest expense; the
disposition of idle assets; a rationalized and more efficient dealer network;
and sound agreements with our suppliers. While this has been an extremely
difficult chapter in Chrysler's history for all involved, the new Company and
its customers, employees and suppliers can now begin on a fresh page."

The alliance with Fiat provides Chrysler Group with access to exciting
products that complement the Company's current portfolio, technology
cooperation and stronger global distribution. Work with Fiat is already well
underway to develop the next generation of environmentally friendly,
fuel-efficient high-quality vehicles.

These and other important steps taken over the past month will position
Chrysler Group to provide customers and dealers with the high quality vehicles
and service they expect, and enable the new company to become a strong
competitor. Many of Chrysler's stakeholders have worked expeditiously together
to launch Chrysler Group, which will move quickly to realize the benefits of
the alliance.

"We are very grateful to loyal Chrysler customers who have supported us
throughout this process and assure them Chrysler Group is well prepared to
produce and support quality vehicles under the Jeep(R), Dodge and Chrysler
brands as well as parts under the Mopar(R) brand," continued Mr. Nardelli. "We
also recognize the sacrifices, unstinting loyalty and enduring belief in
Chrysler of many stakeholders, including Cerberus and Daimler, the UAW and CAW
leadership, employees, dealers and suppliers who made critical contributions
to the viability of Chrysler Group, Chrysler Financial and their efforts with
GMAC to provide financing, and the energy and commitment of the U.S. Treasury,
the President's Auto Task Force, Members of Congress and representatives at
the state and community level and Canadian Federal and Ontario Provincial
governments in helping to move Chrysler Group forward. Without the
extraordinary efforts of all these constituents, the alliance and the creation
of a new Chrysler would not have been possible."

Chrysler's Mexican, Canadian and other international operations will also be
acquired by Chrysler Group.

As the Company announced previously on April 30, Mr. Nardelli, who had been
leading Chrysler since August 2007, will resign from Chrysler LLC on
completion of the transaction. He will return to Cerberus Capital Management
LP as an advisor.

SOURCE Chrysler LLC

Lori McTavish, +1-248-512-2642 (office), +1-248-202-9908 (cell),
lm7@chrysler.com, or Shawn Morgan, +1-248-512-2692 (office), +1-248-760-2621
(cell), sm718@chrysler.com, both of Chrysler LLC