E-mail from Tom LaSorda, president and CEO of Chrysler Group

Good morning. I know everyone's already heard about the Recovery and Transformation Plan, but I want to make sure each of you knows how your department fits into it, and eventually, how you will fit into it as well.

This is a critical time for the Chrysler Group. During recent Town Hall meetings, I've stated that regardless of our future status, we have a job to do today. And in this dynamic industry, we can't afford to wait months, weeks, or even days for the dust to settle. We have a road to follow.

We have designated the month of May as the time to relaunch and focus our efforts on the Recovery and Transformation Plan—or what we call the RTP. I have given our leadership team an assignment to ensure that— by the end of this month—every employee knows how this plan will be integrated into everything that we do.

RTP is our blueprint. We will depend upon it to return us to profitability by 2008, and to achieve a return on sales of 2.5 percent by 2009 and to redesign our business so that we can sustain success for the long term.

The plan is centered around seven work modules that cover the entire scope of our business today. The seven modules are:

* Product Strategy/Portfolio Management

* Fixed Cost Management

* Structural Changes/Manufacturing

* Material Costs Management

* Revenue Management

* Quality

* and Capital Management.

In each of these areas, we have benchmarked best practices, set attainable goals and established a rigorous system for tracking results and assuring accountability. In order to sustain growth and profitability in today's global automotive industry, we also need to address our business model in three fundamental ways.

First, we must continue our commitment to product leadership while intensifying our customer and brand focus.

Second, we need to defend our home North American market while exploiting global growth opportunities.

And third, we need to add to our internal resources by leveraging other alliances and partnerships to accelerate growth.

You will learn many more details about the plan during the presentations that will take place this month in your department. I encourage you to ask questions to clear up any confusion about this company's direction. Let me be clear. We have a solid plan, but success depends on your active engagement. It is all about harnessing our energy to execute the Recovery and Transformation Plan. Learn about the plan, understand your role and commit to making it work. If we move forward together with a common purpose, we will soon return to profitability and we will establish the conditions to sustain success in the long term. Thank you very much. I know I can continue to count on you to give your very, very best for this great company.