Chrysler LLC Continues Leadership Commitment to Minority Sourcing Despite Challenging Economic Times in 2008

Chrysler LLC announced today that it spent $3.9 billion with minority suppliers in 2008, representing 16.1 percent of its total annual purchasing. Although Chrysler’s domestic spend declined in 2008 due to unprecedented market conditions, Chrysler’s overall percentage of spend with minority suppliers increased 0.6 percent in 2007.

“Chrysler strives to increase minority spending each year,” said Scott Garberding, Senior Vice President and Chief Procurement Officer, Chrysler LLC. “In an industry that has recently faced hardship and challenges, Chrysler has not taken minority sourcing lightly and has remained committed to diversifying its supply base.”

The company’s diversity supplier development initiatives extend to its Tier I supply base. Tier I suppliers were expected to source at least nine percent of their purchases through qualified minority suppliers during the 2008 calendar year. The 2009 Tier I supplier sourcing goal is 9.5 percent.

“In good or bad times, a diverse supply base makes good business sense,” said Kevin Bell, Senior Manager – Diversity Supplier Development, Chrysler LLC. “Chrysler’s minority sourcing philosophy has been successful because there is a commitment at all levels of the Company and within our supply base.”

Since 1983, Chrysler has purchased more than $41 billion from minority-owned companies and has developed a number of programs to build its minority supply base. Chrysler continues to support several organizations that assist Tier I suppliers achieve their minority sourcing goals, including the National Minority Supplier Development Council (NMSDC), the Canadian Aboriginal Minority Supplier Council (CAMSC) and the Women’s Business Enterprise National Council (WBENC).

In 2008, Chrysler formalized its Women-Owned Business program, providing awareness and opportunities for this influential supply community.

About Chrysler’s Diversity Supplier Development (DSD) program:
Chrysler’s DSD Web site (www.supplierdiversity.chrysler.com) serves as a resource to minority suppliers seeking information regarding Chrysler’s diversity supplier program. The Web site allows minority supplier to register as a potential supplier to Chrysler. In turn, Chrysler then reviews profiles of suppliers’ capabilities to meet specific global sourcing needs.

In 2000, Chrysler conducted the first annual Matchmaker event. Matchmaker events are designed to “match” minority and Chrysler Tier I suppliers together in order to establish new business relationships and opportunities. Since its inception, Matchmaker programs have generated more than $1.3 billion in new business opportunities for minority suppliers.

About Chrysler LLC
Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep®, Dodge and Mopar® brand vehicles and products. Total sales worldwide in 2008 were 2 million vehicles. Outside of North America, 2008 was the second-best sales year in the last decade and the third-best ever for Chrysler International. Chrysler LLC’s product lineup features some of the world's most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler and Grand Cherokee and Dodge Challenger and Ram. Reinforcing a commitment to bring to market a broad array of advanced electric vehicles across all its brands, Chrysler has introduced five electric-drive vehicle prototypes since the fall of 2008. At least one of these vehicles will be produced in 2010 for consumers in North American markets, with European market production later, and at least three more models will follow by 2013.

The Chrysler Foundation, the company's philanthropic arm, annually supports hundreds of charitable organizations in the United States and throughout the world. In 2008, the Foundation gave approximately $21 million in charitable donations.