Chrysler Group LLC Prices Debt Offerings

May 19, 2011 , Auburn Hills, Mich. - Chrysler Group LLC (“Chrysler Group”) announced today the pricing of its previously announced offering of new secured senior debt securities (the “Notes”) and credit facilities. The Notes will be issued in two tranches: $1.5 billion principal amount of 8% Secured Senior Notes due 2019 and $1.7 billion principal amount of 8-1/4% Secured Senior Notes due 2021. Chrysler Group will also enter into a new senior secured credit facility including a $3 billion term loan facility and a $1.3 billion undrawn revolving credit facility permitting Chrysler Group to borrow funds at 4.75% over LIBOR, subject to a LIBOR floor of 1.25% on the term loan facility.

Chrysler Group intends to use the net proceeds of the Notes offering, together with proceeds from the term loan facility and proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The Notes offering, the senior secured credit facility and the Fiat equity investment are expected to close concurrently on May 24, 2011.

Chrysler Group placed the Notes in a private placement under Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

Forward-Looking Statements

This document contains forward-looking statements that reflect management’s current views with respect to future events. 

The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” and “should” and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties including market conditions and the price and market for securities to be offered and other risks relating to Chrysler Group’s business and industry, including, but not limited to: the effective implementation of the Chrysler Group LLC 2010 – 2014 Business Plan outlined on November 4, 2009, including successful vehicle launches; industry SAAR levels; continued economic weakness, especially in North America, including continued high unemployment levels and limited available financing for our dealers and consumers; introduction of competing products and competitive pressures which may limit our ability to reduce sales incentives; supply disruptions resulting from the natural disasters in Japan in March 2011; and our ability to realize benefits from our industrial alliance with Fiat. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

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Related:


eMOTION! REPORTS com Advisory: CHRYSLER'S “IMPORTED FROM DETROIT" TO BE NAMED AD OF THE DECADE... http://t.co/8uFFDrH

eMOTION! REPORTS AUTOMOTIVE ARCHIVES: CHRYSLER - "DER STURM" (The Perfect Storm) ... http://t.co/55Zznu8


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eMOTION! REPORTS AUTOMOTIVE ARCHIVES: CHRYSLER - "Der Sturm" (The Perfect Storm) and Bob Eaton; Chrysler Group, LLC/FIAT and 2011 Rebirth of Charger R/T

Daimler Chairman Juergen Schrempp (l.) and Chrysler Chairman Robert J. Eaton Signing Documents in 1998
 creating DaimlerChrysler; An event, in hindsight, now seen for what was: not a "marriage" but a takeover by any other name...
Chrysler is now owned by what some perceive as a more responsible steward - FIAT  
Image: DaimlerChrysler

Detroit - 2001   Imagine what Bob Eaton's true reasons could have been for seeking a merger between Chrysler Corp. and Germany's Daimler-Benz. Despite his eight years as head of General Motors in Europe, he had jumped ship to become Chrysler's chairman half-a-decade earlier which cut him off from any return to GM. If that wasn't enough, he already was entering his late 50s, so any move he needed to make to ensure his immortality in automotive history had to be made soon.

Now, upon surreptitiously meeting with Daimler-Benz chairman Juergen Schrempp in early 1998, there was a chance to put his imprint on what easily could become the biggest, most influential auto maker that ever existed.

It had to be a heady time for a man who, in a surge of supreme self-confidence, saw himself ultimately as the lone leader of the world's largest car company.

Storm Clouds in the Distance

That was three years ago, when the industry was floating in an excess of success with no apparent end in sight. But there were nagging little signs of trouble that were beginning to appear for anyone who bothered to look.

And Bob Eaton was looking.

What he saw in the distance were the makings of a maelstrom of unsurpassed proportions, the beginning of a confluence of seemingly unrelated events that, when they collided, would become so magnified they could only be called a perfect storm.

Eaton had used that very expression in an internal company speech he gave early in 1998, before any word of the impending merger had surfaced. Surely such an alliance would protect both partners from the storm that was sure to come.

That was what Bob Eaton had in his distant vision when he sat down with pen in hand and essentially gave away America's third largest auto company.


Next... http://www.emotionreports.com/industry_analysis/der_sturm.html

A wonderfully articulated homage to the "Muscle Car" era: 2011 Dodge Charger R/T  AWD
Image: Dodge

Publisher's note:  One wonders aloud why it took an Italian acquisition to allow this country to see what most of the world already knew: The historical center of the automotive universe is America and more specifically, Detroit.

Legions of PR, marketing and advertising people have come and gone over the last 37 years, and save for a creative and innovative few, have failed to tap into the rich performance and styling history that exemplified Chrysler Corp... Dodge Division in particular.

The vehicle most responsible for setting me on a professional path within the auto industry was an Autumn/copper 440 C.I. Magnum-powered 1968 Charger R/T that came over a rise of an intersection at 67th and State Street on the south side of Chicago one early November 1967 morning.  I heard it before I saw it, and once visible, was glorious to behold.  Being an avid aviation enthusiast from age 6 focused on high performance military aircraft past and present inclusive of P-51 Mustang, P-38 Lightning, F-86 Sabre, F-104 Starfighter and F-4 Phantom, I couldn't believe how stunningly beautiful that Charger was.

This then 16 year-old whooped and danced in the street as the Charger glided by exuding sensuous design elegance and raw, perceptively inexhaustible, power.  A perception put paid when unforgettable images from the classic action movie "Bullitt" of an assassin's 1968 Charger pursued by McQueen's 390 (legend says it was a Ford NASCAR 427) Mustang through the streets of San Francisco graced the silver screen.

The closest I came to acquiring my dream machine was a 1973 Charger SE with Police Recruiter 400 C.I.D. engine "sleeper" modified with enclosed exhaust headers, 750 CFM Holley 4bbl Carb, a 3500 rpm stall-speed torque converter and 3:90 Posi-traction rear axle.  Family friend Jeanne Smith in Detroit got closer: To this day she owns the same '68 Charger 440 Magnum she was driving when we first met in September 1969.

I've not driven the 2011 Charger R/T AWD that oozes homage to the '68,'69 and '70 models as yet, but if you happen to spy some guy whooping and dancing on some big city street, it will probably be yours truly... having concluded that the Dodge Boys, with no little help from the car buffs of Rome, did it right.

Auto enthusiasts everywhere, and most certainly the City of Detroit, owe FIAT leadership a debt of gratitude for the fabulous image boost emergent amidst decades of societal derision.  Moreover, my family is especially proud of the "Imported From Detroit" Super Bowl commercial (http://www.chrysler.com/en/) featuring the pounding fist statue of master pugilista Joe Louis "The Brown Bomber" Barrow:  The Stokes' and Barrows of Camp Hill, Alabama, married into each other's families decades ago...

-Myron D. Stokes

Poster for chase sequence classic "Bullitt" featuring Steve Mcqueen and Robert Vaughn
Image: Warner Bros.

2011 Ram Laramie Longhorn Named “Truck of Texas”Ram named top pickup in annual Texas Auto Writers Association Texas Truck Rodeo

2011 Ram Laramie Longhorn        Image: Ram Truck Brand

Ram trucks also named Full-Size Truck of Texas, Heavy-Duty Truck of Texas and Luxury Truck of Texas


All-New 2011 Jeep Grand Cherokee named SUV of Texas


Jeep also wins Mid-Size SUV of Texas and Full-Size SUV of Texas




October 24, 2010 , San Antonio, Texas - The new 2011 Ram Laramie Longhorn today was named “Truck of Texas” by the Texas Auto Writers Association (TAWA). Truck of Texas is TAWA’s top honor, and is earned over the course of a two-day "Texas Truck Rodeo" organized by the professional journalists’ group.


“The Ram Truck Brand is honored to be recognized by TAWA as Truck of Texas,” said Fred Diaz, a native Texan and President and CEO – Ram Truck Brand and Head of National Sales, Chrysler Group LLC. "Given all of its iconic Southwestern design cues, nothing says 'real Texas Truck’ like the Ram Laramie Longhorn. The Texas Auto Writers felt that we got it right; the Ram Laramie Longhorn captures the true spirit of Texas and the Southwest which appeals to people all across America."


Ram Trucks swept every category they entered, while TAWA's top non-pickup truck prize -- "SUV of Texas" -- awarded to the all-new 2011 Jeep Grand Cherokee.

Judging by the 40-plus TAWA members occurs over two full days of on- and off-road vehicle evaluation. Consideration is given to everything from exterior styling and off-road capability to the entrant’s overall utility, value and fuel efficiency.

Fifty-seven pickup trucks, SUVs and crossover vehicles were entered in this year’s event.

Go to full release: http://www.media.chrysler.com/newsrelease.do?id=10156&mid=2

Publisher's Note:  I'll say this as gently as possible: The larger number of vehicle awards are met with a palpable, although still respectful, air of dismissal by our team.  We further daresay that the number and variety of awards provided by various media entities are only exceeded by J.D. Power (forgive please, David) "best" categories.  Not so with TAWA.  I've had the privilege of interacting with members of this group over the past quarter century, inclusive of the colorful Tom Wolfgang (with his everpresent insulated Coke holder) a founding member of the group, and they are about as "Texas" as they come.  Moreover, they will brook no pretenders to the throne of "Truck of Texas", and as a consequence must be exceedingly thorough in award contender performance dissection/evaluation.

Sam Houston wouldn't have it any other way...

Myron D. Stokes http://www.emotionreports.com

Chrysler Brand Releases Information Regarding New 2011 Mid-sized Sedan, Chrysler 200

                                          2011 Chrysler 200 Teaser Image       Photo Credit: Chrysler

Chrysler Group LLC released details of the new 2011 Chrysler 200 mid-sized sedan. Offering consumers exceptional craftsmanship inside and out, a refined and spirited driving experience, innovative technology, an abundance of standard safety features and an extraordinary level of standard content, the 2011 Chrysler 200 is an exciting alternative for customers that want style and substance, all at a surprising value.

Virtually every system in the sedan is new or upgraded for 2011, giving the Chrysler 200 its own identity and space in the highly competitive mid-size sedan segment.



The Chrysler 200 gets a new powertrain lineup featuring the 2.4-liter I-4 World Gas Engine mated to either a four-speed or six-speed automatic transaxle, or the new 3.6-liter Pentastar V-6 engine which produces 283 horsepower and 260 lb.-ft. of torque mated to a six-speed automatic transaxle; improved ride and handling tuning which includes stiffened body mounts and softer ride rate, improved suspension geometry with a raised roll center, a new rear sway bar, and new tires and an extensively upgraded treatment for the reduction of noise, vibration and harshness including acoustic laminated glass for the windshield and front door windows.



The new 2011 Chrysler 200 provides drivers a beautifully inspired sedan that doesn’t compromise safety or practicality and offers the best value in its class. The Chrysler 200 will be built at the Sterling Heights Assembly Plant in Sterling Heights, Mich. and will arrive in dealerships in the fourth quarter 2010.

Publisher's note:  From all that we've read or been made aware of from within the Chrysler Group, and aside from the fact that eMOTION! REPORTS.com editors have not yet physically experienced the 200, we will nevertheless cautiously allow that this vehicle has the making of a solid marketing and sales hit easily rivaling its mid-size sedan competitors within Ford, GM, Toyota and Honda; among others.

It will be our objective to spend several months with the 200 in real world driving conditions and over long distances, with the results of those experiences conveyed to our readership.  Moreover, as of today, I am recommending to our Associate Publisher John T. Chuhran that it is added to our eMOTION! REPORTS.com Car of The Year list of contenders.  Results will be announced, as we have done since inception in 2002, at the Chicago Auto Show.

Carpe diem,
Myron D. Stokes
http://media.ford.com/article_display.cfm?article_id=17411
 
Presentation of eCOY Award to former Ford Division President Jim O'Connor for Thunderbird during the 2002 Chicago Auto   Image: Ford Motor Company

Chrysler Hosts 400 Aspiring FIAT Dealers

FIAT 500

August 30, 2010 , Auburn Hills, Mich. - Chrysler Group LLC today hosted about 400 Chrysler Group dealers to outline the requirements to become a Fiat dealer in the United States.


The dealers met with the Chrysler Group team responsible for establishing a Fiat retail network by the end of this year. The company wants Fiat dealerships in about 165 locations, in metropolitan areas chosen for their high concentration of small-car registrations.


Dealers left today’s meeting armed with the information needed to submit a competitive proposal for a Fiat franchise. Dealers have been asked to submit their proposals by Sept. 22. Chrysler Group expects to name its Fiat dealers in the fourth quarter.

“The Fiat brand offers our dealers the opportunity to be part of a unique experience,” said Laura Soave, Head of Fiat Brand North America. “Our dealers will be able to interact with a group of individuals that are not part of their current customer base. These are individuals interested in Italian automotive design coupled with fuel efficient technology. Our dealers will be the key point of contact with our customers, and thereby, a crucial part of the success of the Fiat brand.”

Go to full release --  http://ow.ly/2wZ8g

Time Lords Takin' Up Quantum Space @ Dodge Division: MOPAR '10 Challenger

Mopar '10 Challenger      Image: Chrysler Group LLC

Chrysler Group LLC Introduces Mopar® ’10 Challenger

Company Continues to Leverage, Grow Mopar Brand


*Mopar ’10 will be available in August


*Pricing starts at $38,000, which includes destination


*Five hundred special-edition cars to be built, customers may pre-order now




July 23, 2010 , Auburn Hills, Mich.

For the first time in its history, Chrysler Group LLC will launch a special-edition Mopar® version of one of its vehicles. The Mopar ’10, a Mopar 2010 Dodge Challenger, arrives in Dodge dealerships next month.

“Our Mopar ’10 Challenger is a collaboration of two iconic brands with tremendous heritage,” said Pietro Gorlier, President and CEO of Mopar, Chrysler Group LLC. “Dodge put the heart into this Challenger and Mopar added the soul. The result is a unique, special-edition car that only we can offer.”  Go to full release:
http://www.media.chrysler.com/newsrelease.do?id=9787&mid=2


Publisher's note: When word was out some years ago that GM and Chrysler realized  dismissing their respective versions -- Camaro/Firebird Trans-Am and Challenger/Barracuda -- of the historic "Pony Cars" to concentrate on "core competencies" and address "rapidly evolving and brand intensive" markets (thus leaving Ford Mustang to have a sales and iconic monopoly) was a rather colossal error, both firms have, well, seen the light.  Now, nearly a half-century after the trio of Mustang/Cougar, Camaro/Firebird and Challenger/Barracuda brands hit the showrooms and collective consciousness' of performance enthusiasts, many of us "Baby Boomers" get to re-live a very cool, exciting and pivotal point in the nation's -- and world's -- history: The 1960's.  And although of somewhat less import but arguable significance, the '70s.

Both eras contribute to the bounty of historic muscle car designs reborn, inclusive of Charger.  And, as if Dr. Who and his fellow Time Lords decided to take up quantum residence at the Dodge "Division" of Chrysler Group LLC, the "boys" have rolled out a time perception distorting new, but instantly recognizable, iteration of Challenger R/T: MOPAR '10.

We're looking forward to spending some time with Darth Vader's better looking cousin (yes, a tired but quite appropos reference) and will convey those experiences soonest.

In the interests of SEC-esque "full disclosure", I admit to having owned a '70  383 C.I Magnum Challenger R/T, a Plymouth AAR "340-Six Pack" 'Cuda, and a 1973 Charger SE with Police Recruiter 400 C.I.D engine running closed headers, Holley 750 CFM "double-pumper" Carb; a non-factory 3500 RPM stall speed torque converter, 3:90 Posi-Traction rear axle and...

Who said that memories are too fleeting?

Myron D. Stokes

 Tom Baker as Classic Dr. Who   Image:  BBC UK