AUBURN HILLS, Mich. — While Chrysler Group reportedly might be creating a new
captive finance company later this year, chairman and chief executive officer Sergio
Marchionne told investment analysts this week why he's happy the automaker
currently does not have one.

In responding to a series of questions as the OEM revealed
its full-year financial performance, Marchionne said, "Delinquency rates are
not our issue

"I've been crucified all over the place that we didn't have
our own captive finance (company). The great thing about not having our own
captive finance (arm) is I don't have to worry about delinquency rates," he
continued.

Since filing for bankruptcy back in 2009, Chrysler dealers
having been using Ally Financial for financing. However, that contract expires
on April 30.

Last spring, Chrysler produced necessary announcements to
satisfy the agreement's requirement that notice of nonrenewal be provided at
least 12 months prior to the date of expiration.

Then last month, The Wall Street Journal reported that
sources familiar with negotiations said Chrysler is "getting close to striking
a deal" with Santander Consumer USA on a relationship for consumer loans and
leases as well as dealer floor planning through a new entity called Chrysler
Capital.

The online report indicated people close to the discussions
said that Chrysler and Santander have signed a term sheet, but Marchionne was
not asked nor did he address any future financing structure.

However, the Chrysler boss did touch on how he sees the
current customers with Ally performing.

"To the best of my knowledge given our interface with the
provider to our dealerships, we have not seen a significant increase in
anything. The credit markets continue to be healthy. Credit continues to be
good. We have not seen any alarming signs of deviation from standard repayment
terms," Marchionne said.

A healthy credit market likely helped to fuel Chrysler's
productive year, which included an 18-percent year-over-year sales gain in the
U.S. The automaker reported preliminary net income of $1.7 billion for the full
year, up from net income of $183 million a year ago, exceeding the guidance
provided earlier in 2012.

The manufacturer sold 1.652 million units in the U.S. last
year with 26 percent of that total going into fleets. In 2011, Chrysler turned
1.369 million in the U.S. as 28 percent of the figure went into fleets.

"While we are pleased to have achieved strong financial
results in 2012, the enterprise we are crafting is not complete," Marchionne
said. "The goals we've set for the year ahead reflect a common desire by
everyone from leadership to the shop floor to succeed and sustain the power of
the house we are building.

"Our aim is meaningful, but it is not complicated, and only
a preoccupation with quality can achieve it," he went on to say. "We pause for
a moment to enjoy our accomplishments, but we will not stop. Our continued
achievement relies upon maintaining a humble spirit and an intense focus on the
integrity of our work. And so we press on."

Chrysler Appoints New General Counsel

In other company news, Chrysler appointed Marjorie Loeb as
senior vice president, general counsel and secretary. Loeb replaces Holly
Leese, who has announced her intention to retire from the company after 33
years. The appointment is effective immediately.

Loeb joined the company in 2010 as an assistant general
counsel. Prior to joining Chrysler, she served as the assistant general counsel
and secretary for corporate and securities for Delphi Automotive Systems and
was a principal at the Miro Weiner & Kramer law firm.

Leese joined Chrysler as a staff attorney and has held many
roles in the office of the general counsel with increasing responsibilities.

As general counsel, Leese played a vital role in helping the
company successfully navigate through several historical milestones.

"I am honored to have worked with Holly over the last three
years," Marchionne said. "We thank her for her many years of dedication to the
company and wish her and her family only the best."

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