Chrysler Group President and CEO Describes Global Auto Industry as Post-Modern Decathlon

- Auto Companies must be at or near the top in every discipline - Innovative teaming with suppliers and partners essential - No let up in Chrysler Group's product offensive

DEARBORN, Mich., Jan. 17 -- Speaking to the Automotive News World Congress on Monday, January 17, Chrysler Group President and CEO Dieter Zetsche used an ancient sporting event to draw an analogy to the global auto industry.

"Today, in an industry that reflects the competitive elements of the decathlon, you have to execute in every single phase of the business and come out at or near the top in every discipline to win," Zetsche said. "It almost makes you think with nostalgia about the days when the big dilemma was how to deliver on just quality and cost at the same time. Indeed, any vision for success or growth -- even survival -- in today's global auto industry, is pure hallucination if not supported by execution."

Recognizing this, Zetsche told the audience of some 1,000 industry observers that the Chrysler Group introduced a "conceptual roadmap" to help crystallize its vision of how the company needed to elevate its game. "We sharply focused our efforts on three basic dimensions: customer experience; operational excellence; and product leadership. We also drew a line in the sand to challenge ourselves to rank among the best in customer experience and operational excellence, and to take a leadership position in product. And to do so in 2007, just a few short years from now."

Zetsche added that this "post-modern decathlon" includes "team sports," citing the need for innovative partnerships with suppliers such the Chrysler Group's upcoming co-location of three suppliers (one Korean, one German and one American) in a new, on-site facility next to its Toledo North Assembly Plant.

"We're also interested in teaming up with other auto companies when it makes sense," Zetsche continued, citing the example of the Global Engine Manufacturing Alliance (GEMA) joint venture company formed by DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation to manufacture a family of engines that feature world class technology, performance and efficiency, while achieving scale economies that minimize investment.

He cited a second example in the recently announced cooperative effort with General Motors to jointly develop a state-of-the-art, two-mode full hybrid propulsion architecture for applications in GM, Chrysler Group and Mercedes Car Group vehicles. Zetsche added that the program is structured to allow for additional automotive partners.

"Several auto companies that will, for now, remain nameless, have already expressed an interest in joining us," Zetsche said.

Zetsche concluded by saying that, like the decathlon, the auto industry also has a "feature event" -- namely, the product.

"I'm convinced that my epitaph will one day read, 'It all comes down to product!' And that's OK by me," he quipped. "That's why the Chrysler Group will continue to develop and launch new vehicles at a brisk pace.

"In 2005, we'll bring the new Dodge Charger, the Jeep Commander and at least three more vehicles to the market. Then, in 2006 we'll aim to break the record for new vehicle launches we set last year. And our product pipeline beyond 2006 will also be full. We're not going to let up."