How Renewable FuelsFit into Chrysler’s Product Plans

Steven R. MazurePowertrain Planning

Chrysler NACAA

Grand Rapids, MichiganJuly 19, 2007

• Why use renewable fuels?

• Ethanol

• Biodiesel

• National energy agenda

Agenda

• Enhance U.S. national energy security

• Reduce reliance on petroleum

• Reduce environmental impact of automobiles, including greenhouse gases

• Support U.S. agricultural economy

Benefits of Renewable Fuels

Photosynthesis

Carbon Dioxide

Plants EthanolEthanolPlant

85%Ethanol

Fuel

FlexibleFuel

Vehicle

• Since 1998, Chrysler has sold more than 1.5 million Flexible Fuel Vehicles (FFVs) that can operate on E85 ethanol-based fuel, gasoline or any mixture

• As a percent of total sales, highest amount of any automaker

• In 2007, we will sell an additional 250,000 FFVs

• In 2008, we are committed to selling nearly 500,000 FFVs

• By 2012, half of all Chrysler vehicles could be FFVs if needed infrastructure improvements are in place

What Chrysler is Doing - Ethanol

Chrysler 2007-2008 Flex-Fuel Vehicle Product Lineup

“We plan to sell more than 250,000 flex-fuel vehicles in 2007 and nearly a half-million in 2008. That means we’re committing about 25 percent of our total vehicle production to be E85 capable.”

- Chrysler Group President and CEO Tom LaSorda

Leadership in Diesel

• Jeep® Liberty CRD was first mid-sized diesel SUV in America. Sales were three times initial expectations

• In 2007, Chrysler launched Jeep® Grand Cherokee diesel, a full-sized SUV

• In 2007, Dodge Ram heavy duty diesel pickup trucks became first trucks certified to strict 2010 California emission standards

• Company has announced plans to expand diesel lineup in the near future

What Chrysler is Doing - Biodiesel

80% particulate emissions

70% NOx emissions

15% fuel consumption

50% power

30% torque

Today’s diesel engines have been infused with modern technology resulting in…

Diesel-Powered Passenger Vehicles

NAFTA6.7L Cummins 6 cyl.Dodge Ram 2500/3500/4500

Mexico, International

5.9L Cummins 6 cyl.Dodge Ram 2500/3500/4500

Europe2.0L CRD (VW) 4 cyl.Jeep® Patriot

Europe2.0L CRD (VW) 4 cyl.Jeep® Compass

Europe2.0L CRD (VW) 4 cyl.Chrysler Sebring / Sebring Convertible

Europe2.0L CRD (VW) 4 cyl.Dodge Avenger

Europe2.0L CRD (VW) 4 cyl.Dodge Caliber

Europe2.8L CRD (VM) 4 cyl.Dodge Nitro

Europe2.8L CRD (VM) 4 cyl.Jeep® Cherokee

Europe2.8L CRD (VM) 4 cyl.Chrysler Voyager

Europe2.8L CRD (VM) 4 cyl.Jeep® Wrangler

Europe3.0L CRD (MCG) 6 cyl.Dodge Magnum

Europe3.0L CRD (MCG) 6 cyl.Chrysler 300

Europe3.0L CRD (MCG) 6 cyl.Jeep® Commander

Europe, NAFTA3.0L CRD (MCG) 6 cyl.Jeep® Grand Cherokee

Europe2.2L CRD (MCG) 4 cyl.Chrysler PT Cruiser

MarketsEngineVehicle

• Further reductions in emissions, including lifecycle CO2 (greenhouse gases)

• Replaces petroleum-based diesel fuel

• No major modifications of engine and powertrain needed

• Improves lubricity of fuel, reducing engine wear

• May reduce health effects of diesel emissions

Biodiesel Adds to the Benefits of Diesel

• All Jeep® Liberty, Jeep® Grand Cherokee and Dodge Ram heavy duty pickup diesels are fueled with B5 (5 percent biodiesel) when they leave the factory in the U.S.

• All Chrysler diesel products, also including the Dodge Sprinter vans, are approved for regular use with B5

• Chrysler is working with industry, suppliers and key agencies to finalize a national quality standard for B20,so the fuel can be used in all diesel vehicles

Biodiesel in Chrysler Products

Chrysler Group

The Benefits of Modern, Clean Diesel and Biodiesel

Diesel improves fuel economy an average of 30 percent compared with comparable gasoline vehicle. This saves thousands of gallons of fuel over the lifetime of a vehicle.

Biodiesel reduces reliance on petroleum to fuel vehicles. A Dodge Ram diesel running on B20 (20 percent biodiesel) cuts use of oil-based fuel by nearly 40 percent compared with a gasoline vehicle.

Diesel improves fuel economy an average of 30 percent compared with comparable gasoline vehicle. This saves thousands of gallons of fuel over the lifetime of a vehicle.

Biodiesel reduces reliance on petroleum to fuel vehicles. A Dodge Ram diesel running on B20 (20 percent biodiesel) cuts use of oil-based fuel by nearly 40 percent compared with a gasoline vehicle.

Benefits of Clean Diesel

20-40% better fuel economy

Reduces emissions:• 80% less particulates• 70% less NOx• Up to 20% less CO2

50% more power, 30% more torque

Improves range

Less use of petroleum

100%

76% 72%61%

gasoline 5.7L diesel 6.7L B5 6.7L B20 6.7L

Dodge Ram 6.7L Cummins Turbo Diesel

Life

time

Pe

tro

leu

m F

ue

l Use

FuelsClean Diesel Facts

(Baseline)

Benefits of Biodiesel

Reduces tailpipe emissions

Reduces lifecycle CO2/greenhouse

gas emissions

Replaces use of fuels made from oil

Improves U.S. energy security

Supports U.S. agriculture

Reducing Diesel Emissions

Brownfield Site

Crops

• Soybeans

• Corn

• Sunflowers

• Fall Canola

• Switch Grass

B20 Specification Project

• DaimlerChrysler is partnering with Next Energy, Bosch, Delphi, Biodiesel Industries, DoE, DoD, Michigan State University and Wayne State University to develop a consensus specification for B20

• Parameters and limits which are not yet clearly understood include:

• Stability

• Density

• Viscosity

• Cold operability

• Emissions impacts

How Renewable FuelsFit into Chrysler’s Product Plans

Steven R. MazurePowertrain Planning

Chrysler NACAA

Grand Rapids, MichiganJuly 19, 2007