Chrysler Group also posted an operating profit of $239 million in Q3 and that adds up to $565 million for year-to-date. The Q3 operating profit improvement of $56 million, compared to Q2, was driven primarily by improved mix and pricing from the launch of the new Jeep Grand Cherokee, partially offset by increased industrial costs associated with seasonal plant changeovers.

"A year ago, Chrysler Group laid out clear and concise five year financial goals and after three consecutive quarters of better than forecasted results, we are not only living up to our commitments but we are also exceeding our 2010 financial objectives," said Sergio Marchionne, Chief Executive Officer, Chrysler Group. "Chrysler’s financial success is dependent upon the vehicles we design, build and sell. In a mere 16 months, the company is delivering 16 all-new or refreshed products led by the critically acclaimed all-new 2011 Jeep Grand Cherokee and including the Fiat 500, signaling the return of the Fiat brand to the U.S. and Canada.

"We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee," adds Marchionne. "Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive auto maker."

Modified Earnings Before Interest, Taxes, Depreciation and Amortization (Modified EBITDA) was $937 million, or 8.5 percent of Net Revenues, an $82 million increase from Q2; year-to-date Modified EBITDA was $2,579 million. Net Interest Expense in Q3 was $308 million, including non-cash interest accretion of $58 million. Net Interest Expense was $899 million for the first three quarters. Net Loss in Q3 was reduced to $84 million as compared with $172 million in Q2, driven by the increase in Operating Profit. Net Loss year-to-date was $453 million. Cash at the end of Q3 was $8,260 million compared to $7,841 million at the end of Q2, primarily due to the finalization of the Mexican development banks loan for $400 million which was fully drawn during the quarter. An additional $2.3 billion remains available to be drawn under Chrysler Group’s U.S. Treasury (UST) and Canadian and Ontario government loan agreements, bringing total available liquidity above $10.5 billion. Gross Industrial Debt at September 30, increased to $12.0 billion, primarily due to the finalization of the Mexican development banks loan, capitalized interest on the VEBA Trust Note, and additions of other financial obligations. Net Industrial Debt increased to $3.8 billion from $3.4 billion at the end of Q2.

Worldwide vehicle sales were 401,000 units for Q3, a decrease of 1 percent compared to 407,000 units in Q2, with the Jeep and Ram brands posting gains. U.S. market share improved for the fifth consecutive quarter since the Company’s formation to 9.6 percent in Q3 from 9.4 percent in Q2 and 8.0 percent in Q3. In addition, Canadian market share was a strong 12.8 percent although volumes decreased in line with the seasonal Canadian auto industry decrease. Throughout the quarter, the new Jeep Grand Cherokee drove dealership consumer traffic in both the U.S. and Canada. Worldwide vehicle shipments in Q3 were 407,000 units, a decrease of 6 percent versus Q2. U.S. vehicle shipments totaled 301,000 compared to 305,000 in the prior quarter.

Chrysler Group maintained a U.S. dealer inventory level consistent with its sales performance, increasing from 222,000 vehicles at June 30, to 231,000 vehicles at September 30. Days supply, however, decreased to 58 days (from 60 in Q2), due to the company’s focus on maintaining disciplined dealer inventory levels consistent with market demand. Global appeal and momentum for the new Jeep Grand Cherokee continued in the third quarter with increased worldwide opinion-leader accolades, strong U.S. sales as the vehicle began arriving in dealerships in greater numbers and the international vehicle launch at the Paris Motor Show for distribution in more than 100 countries. Nearly two decades after the Jeep brand invented the premium sport-utility vehicle (SUV) segment, more than 4.3 million Jeep Grand Cherokee vehicles have been sold worldwide.

Global appeal and momentum for the new Jeep Grand Cherokee continued in the third quarter with increased worldwide opinion-leader accolades, strong U.S. sales as the vehicle began arriving in dealerships in greater numbers and the international vehicle launch at the Paris Motor Show for distribution in more than 100 countries.

The Jeep Grand Cherokee was named "SUV of Texas" and "Full-size SUV of Texas" by the influential Texas Auto Writers Association (TAWA). Also, Consumers Digest magazine picked the Jeep Grand Cherokee as a "Best Buy" in the Full-size/Luxury SUV category. TAWA selected the Jeep Wrangler Unlimited Sahara as the "Mid-Size SUV of Texas" and the Jeep Wrangler was named "Best of Show" in the SUV category at the Specialty Equipment Market Association (SEMA) show.

The 2011 Ram Laramie Longhorn was named "Truck of Texas" by the Texas Auto Writers Association. Ram Trucks swept every category entered including the Ram 1500 Outdoorsman being named "Full-Size Pickup Truck of Texas," the Ram Power Wagon picking up the "Heavy-Duty Pickup Truck of Texas" honor and the Ram Laramie Longhorn winning the "Luxury Pickup Truck of Texas" honor.

In preparation for the reintroduction of the Fiat brand in the U.S. and the December 2010 production launch of the Fiat 500, Chrysler Group began the process of establishing a Fiat dealer network, announcing the intent to select a total of 165 dealerships nationwide in 119 markets identified for growth potential in the small-car segment. In October, the Company began the first phase of appointing Fiat dealers. In addition, Chrysler Group selected Ally Financial as the preferred financing provider for Fiat vehicles in the U.S.

Chrysler Group announced three significant investments in this reporting period including $850 million in the Sterling Heights (Michigan) assembly plant (SHAP) to ready the plant for production of future vehicle models. As previously stated, SHAP will remain open beyond 2012 and nearly 900 new jobs will be added to a second shift planned for the first quarter of 2011.

A $600 million investment in the Belvidere (Illinois) assembly plant will support the production of future models and includes the construction of a 638,000 square foot body shop, as well as the installation of new machinery, tooling and material handling equipment. This brings the Company’s investments in U.S. facilities to $2.1 billion since Chrysler Group began operations in June 2009. Work on the Belvidere expansion began this summer and will be completed in 2011.

A $27.2 million investment in its Etobicoke casting plant near Toronto, a facility that produces aluminum die castings and pistons, will prepare the facility for future Chrysler Group vehicles by securing new tooling and equipment to enhance the plant’s capability, and bringing in new technologies that will improve quality, testing and inspection processes. As part of the investment, 280 jobs will be retained. Following the successful Jeep Grand Cherokee launch, Chrysler Group has continued its 2011 model year product offensive in the third quarter, with the announcement of most of the 16 all-new or refreshed products to be launched this year.

The Toledo (Ohio) assembly complex, an innovative manufacturing project with three supplier partners, hosted Vice President Joe Biden in August. The Vice President visited the Chrysler plant to highlight the important role suppliers play in the automotive industry. The plant began production of the new 2011 Jeep Wrangler and Jeep Wrangler Unlimited in the third quarter.

In September, a record number of Chrysler Group dealers, including more than 1,700 U.S. and 700 from Canada, Mexico and international markets, attended the 2010 Dealer Announcement Show to see the all-new or significantly refreshed 2011 model year vehicles. Dealer attendance represented a record 90 percent of the Company’s sales volume.

Following the successful Jeep Grand Cherokee launch, Chrysler Group has continued its 2011 model year product offensive in the third quarter, with the announcement of most of the 16 all-new or refreshed products to be launched this year. The Chrysler brand announced the upcoming 2011 Chrysler 200 mid-size sedan; the new 2011 Chrysler Town & Country, set to arrive in dealerships in Q4, and the all-new, next generation Chrysler 300. The Dodge brand entered a new era of performance announcing six vehicles including the new Durango and restyled Charger and the significantly redesigned 2011 Grand Caravan, Journey, Avenger and Challenger vehicles. In addition to the new Jeep Wrangler and Jeep Wrangler Unlimited, the refreshed Jeep Patriot compact SUV was announced in Q3 and will arrive in showrooms in Q4.

At the Paris Motor Show in September, the Jeep brand also introduced two new diesel engines for markets outside North America. A 2.8-liter turbo diesel for the Cherokee, Wrangler and Wrangler Unlimited, brings increased performance, better fuel economy and reduced CO2 emissions versus the 2.8-liter diesel engine it replaces, and a new 2.2-liter turbo diesel for the Compass and Patriot delivers better overall performance than the 2.0-liter diesel engine it replaces.

In October, Chrysler Group revealed that the new Pentastar V-6 engine, with improved fuel efficiency, more power and reduced emissions, is slated to be available across 13 vehicle models by 2013. Introduced in the new Jeep Grand Cherokee, the new V-6 will be available in the facelifted Chrysler Town & Country, 300 and 200, as well as the Dodge Charger, Avenger, Durango and Journey, gradually phasing out seven V-6 legacy engines. The engines are produced in state-of-the-art facilities in Trenton, Mich., and Saltillo, Mexico. 5 | P a g e