Chrysler Group LLC Announces Refinancing Transaction

2011 Chrysler 200 Image: Chrysler Group

April 28, 2011 , Auburn Hills, Mich. – Chrysler Group LLC (Chrysler Group) announced today that it intends, subject to market and other conditions, to repay in full the outstanding obligations under the loans provided to Chrysler Group by the U.S. Department of the Treasury and the Canadian federal and Ontario governments. Chrysler Group intends to complete the repayment during the second quarter of 2011 from proceeds of a new term loan facility and newly issued debt securities to be offered and sold to institutional investors in a private offering exempt from registration under the U.S. Securities Act of 1933.

Chrysler Group intends to use the net proceeds of the term loan and the offering, together with the 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 completion of the offering, the credit facilities and the equity investment by Fiat under its call option are expected to occur concurrently.

The debt securities will be offered and sold in reliance on an exemption from registration under the Securities Act. The debt securities 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.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

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 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 Chrysler ™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 with may limit our ability to reduce sales incentives; 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 the date on which it is made.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat, 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 [UTF-8?]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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Defense Policy Analyst: “China’s Arrogance and Belief They Are Next World Power Makes War With US/UK Inevitable and Soon”

Carrier Shi-Lang at Dalian Yards.This 67,500 Ton Kuznetsov-class Vessel, Originally the Ukraine’s Varyag, is Operational Now [November 2010] According to Our Intelligence Sources, Not 2015 as recently reported – Image PLAN

December 13, 2010 (PressReleasePoint) — Washington, D.C. Comments subsequent to an Asia tour this year from a highly respected defense policy analyst who has served in previous administrations, seem to confirm the concerns by several key officials within the US Department of Defense, the UK Ministry of Defence and the crafters of a recently released report by the United States-China Economic and Security Review Commission (USCC.gov) that China is on a collision course with Western powers extending beyond the reality of its sustained economic war against other countries.

“The arrogance, dismissiveness and disrespect for the US in particular by senior Chinese officials during our visit was not only profound, but deeply disturbing,” said this analyst, speaking on condition of anonymity. “China’s current rate of growth is unsustainable, so much so that if it were to continue for the next two decades, another planet earth would be required. Even more alarming is that when presented with clear data supporting this contention, our Chinese colleagues made it obvious that “‘Even if it is necessary to grow beyond our borders, the current initiatives and policies will be maintained.’

“China”, the analyst continued, “is convinced that supplanting the US/UK as the dominant super-power; is within its grasp and will brook no conversations, observations, recommendations or warnings that suggest otherwise. Moreover, the idea that China can be dealt with based on a perception of a melded Confucianism/Shinto/Buddhist ideology-based paternalistic benevolency, is completely without merit. And is indeed, downright dangerous.

Confucian Philosophy Eliminated
“The quiet wisdom advocated by Confucius calling for respect of all others while being defenders of justice, has completely disappeared from China’s philosophy of governance; the victim of the Cultural Revolution initiated by Mao. (Suffice it to say that China 2010 is ideologically the mirror of Communist China 1949.)

“Those who focus only on the potential of doing business within an explosive China economy,” he said, “while turning a blind eye to its stunning, ominous, military build-up, may find themselves in a most uncomfortable position as major global firms lose control of their China operations in a manner consistent with Buffett BYD plant confiscations. At the same time, the break out of hostilities against Japan and Taiwan is a distinct near to mid-term possibility.”

The analyst’s observations are well supported by learned others:

In his opening statement, [United States-China Economic and Security Review] Commission Chairman Dan Slane said “The 2010 Annual Report (released 17 November) reflects the Commission’s conclusions that China has failed in some notable areas to fulfill the promises it made nine years ago when it joined the World Trade Organization. Specifically, China is adopting a highly discriminatory policy of favoring domestic producers over foreign manufacturers. Under the guise of fostering “indigenous innovation” in its economy, the government of China appears determined to exclude foreigners from bidding on government contracts… In addition, China has proposed that its many state-owned corporations be exempt from WTO rules on procurement. The Chinese government quite simply intends to wall off a majority of its economy from international competition.”

In her opening statement, Vice Chairman Carolyn Bartholomew commented on China’s military modernization, saying “As a result of China’s improved offensive air and missile capabilities, the Chinese military has strengthened its capacity to threaten U.S. forces and bases in the region. Currently, China’s conventional missile capabilities alone may be sufficient to temporarily knock out five of the six U.S. air bases in East Asia. Saturation missile strikes could destroy U.S. air defenses, runways, parked aircraft, and fuel and maintenance facilities. Complicating this scenario is the future deployment of China’s anti-ship ballistic missile, which could hold U.S. aircraft carriers at bay outside their normal operating range.”

Western Companies Warned
The analyst further advised that “Western companies, inclusive of GM, Ford, VW, Boeing and Airbus, with significant investment in China-based manufacturing infrastructure and the proprietary processes PRC officials have demanded as a requirement to do business in the world’s most populous country, should thoroughly examine — Japanese companies have already done so — their exit and loss prevention strategies… now.”
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About eMOTION! REPORTS.com:
eMOTION! REPORTS.com (http://emotionreports.com http://emotionreportscom.blogspot.com/) is an automotive/aerospace industries research and analysis site targeting professionals within the academic, media, corporate and government sectors. The site also created a pathway through which white papers and other scholarly works such as “Crisis On Asimov: A Vision of 2085” by national security strategist Dr. Sheila Ronis; “Quantum Parallel: The Saint-Hilaire Quasiturbine as the Basis For Simultaneous Paradigm Shift in Vehicle Propulsion Systems” and “Super-Globalism: Strategies For Maintaining a Robust Industrial Base Through Technological, Policy and Process Improvement”, could be presented to a broadened yet specific audience.

Publisher Myron D. Stokes is an award winning veteran automotive/aerospace industry analyst and spent several years as an industry correspondent for Newsweek, Newsweek Japan and Newsweek International. His.work as an journalist with special emphasis on business and technology has been published in a variety of other major print mediums including the Detroit News, Changing Times Magazine, Auto Week and corporate publications. Over the years, he has provided major corporations and media groups with “deep background” analyses that have helped shape the direction of some of the most significant news stories and industry strategies After outlining a strategy to expand industry coverage for Newsweek Magazine in November of 1991, he worked in the capacity of industry correspondent and investigative reporter. His reporting included in-depth assessments of the “shake- up” at GM, the much publicized industrial espionage charges against former GM supplier executive Dr. Ignacio Lopez; the hazards of doing business in China; the viability of Electric Vehicles which centered on advanced battery technology in both the private sector and military (Newsweek International edition); the difficulties then facing Japan’s auto industry and the comeback of the Big Three (Newsweek Japan).

In recent years, he has covered some of the most recognized stories in automotive, aerospace and general interest. These include the Kirk Kerkorian Chrysler takeover attempt; the GM C/K truck controversy; the U.S./Japan trade issue (Newsweek Japan) which required significant interaction with then Secretary of Commerce Ron Brown;data for Newsweek cover story (4/95) on Airline Safety; investigative analysis of possible collusion between the warring governments of Bosnia President Alijah Izetbegovich and Serbia President Slobodan Milosevic along with uncovering of plan to re-implement ethnic cleansing prior to Srebednicza massacre (6/95); and the Oklahoma City bombing. His ability to thoroughly and accurately report and analyze issues of substance garnered himself and former Newsweek Detroit Bureau Chief Frank Washington first place in the coveted Detroit Press Club International Golden Wheel Award for Automotive Journalism in 1995. This competition, judged by professors from the University of Nebraska School of Journalism, included entries from 110 journalists in five countries. Business Week took second place. Stokes was also privileged to function as acting Detroit Bureau Chief for Newsweek.

Stokes maintains strong interest in global affairs, and continues to be involved in a range of nation building and humanitarian/disaster relief efforts. Among these were acting as initial intercessor between UN Secretary General Kofi Annan and the then warring governments of Eritrea and Ethiopia; an activity which helped lead to the cessation of hostilities in October 1999; the coordination of relief activities with US, European and Middle-East based colleagues subsequent to the Bam, Iran, earthquake of 2004, the Pakistan earthquake of 2005, and co-structuring of academic and industrio/economic base developmental programs with colleagues in Pakistan and India.

Associate Publisher, Motorsports Editor, John T. Chuhran has covered motorsports as an award-winning journalist for more than a quarter century. From 1992-94 he served as Director, Media Relations and primary spokesman for Championship Auto Racing Teams, Inc. (CART) the governing body for the PPG Indy Car World Series. For more than two decades he has been a sports writer and editor for such media as The Philadelphia Bulletin, Gannett Westchester (NY) Newspapers, the Bridgewater (NJ) Courier-News, the Associated Press, United Press International, BBC Radio and the Reuters News Service. He has served as communications Manager (Product), Press Fleet Supervisor and Press Information Specialist of Mercedes-Benz North America where he was responsible for all motorsports and professional sports activities of the company. He also has been the primary media professional at a selective New York City investor relations firm where he optimized media exposure for several companies that launched IPOs and Secondary Offerings. During this time, he was also the de facto Media Relations executive responsible for all media activities of the Professional Sports Car Racing series (now known as IMSA) during the ownership of Andrew Evans. Currently, Mr. Chuhran manages the media centers at several NASCAR racetracks during event weekends, and he maintains extremely positive relationships with the motorsports media. He also continues to write as a contributing editor for motorsports outlets such as The Star (Mercedes-Benz) magazine.

As a primary result of analytical accuracy and depth of content, ER yields notable Google search responses to quasi-generic terms such as “2010 Automotive Industry Analysis” (6,9 and 10 of 94,500,000 returns 12/13/10). Now approaching a decade of existence, The eMOTION! REPORTS.com global team includes some of the most capable journalists and analysts drawn from media, government and academia.

Web Editor: Matthew Siporin

Go to full release and related analyses:Defense Policy Analyst: "China's Arrogance and Belief They Are Next World Power Makes War With US/UK Inevitable and Soon"

eMOTION! REPORTS com Advisory: CHRYSLER “IMPORTED FROM DETROIT” TO BE NAMED AD OF THE DECADE

Chrysler's "Imported From Detroit" Ad

“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…

“…Auto enthusiasts everywhere, and most certainly the City of Detroit, owe FIAT leadership (The firm just announced it is increasing its stake to 16% of Chrysler for 1.5bil) 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…” (from post http://t.co/58kTZy8)

In line with previous awards such as our naming Ford F-150 as “Truck of The Decade” at the 2004 Chicago Auto Show (http://t.co/rVyOzeJ) and our placement on ER nearly a decade ago of a reproducible copy of what is considered some of the greatest advertising prose of all times “The Penalty of Leadership”
(http://www.emotionreports.com/SUV_Award/penalty_of_leadership.htm) by Theodore McManus, these accolades are not given easily or without substantive data to render them viable.

A formal notification is being forwarded to Chrysler officials.

Go to commercial “Imported From Detroit”

Society of Automotive Engineers (SAE) World Congress Detroit 2011.. Shades of Preston Tucker’s Torpedo: “Protean Electric Tackles The Unsprung-mass ‘Myth’ of In-wheel Motors”

Exploded view of Protean’s PD18, a liquid-cooled, three-phase, permanent-magnet motor integrated into the corner assembly. Each motor features distributed architecture, incorporating one inverter and eight power-electronics modules within the motor. It is rated at 84 kW peak power for 20 s and 54 kW continuous, depending on battery power, and is scaled for vehicle curb weights of 5000-6000 lb.

From Automotive Engineering International Online-Lindsay Brooke