* Sales in non-U.S. markets increase 6.6 percent in 2006 * Sales outside North America up 15; Mexico up 3.3; Canada up 1.7 percent * New products such as Dodge Caliber and Jeep Compass help propel sales gains in global markets * Chrysler Group to double international growth in next five years * Memorandum of Understanding signed between Chrysler Group and China Motor Corp. to market Taiwan-built cargo van in Mexico * China production of new Chrysler Sebring sedan for local market to begin later this year AUBURN HILLS, Mich., Jan. 4 /PRNewswire-FirstCall/ -- Coming off consistent sales growth in global markets during 2006, the Chrysler Group announced that its global alliance strategy will enable it to bring a Taiwan- built cargo van to the Mexican market and launch production of the new Chrysler Sebring sedan in China for the local market. The announcements come just a week after the Chrysler Group confirmed a letter of intent for China's Chery Automobile Co. to produce small vehicles that the Chrysler Group will market in the NAFTA region, European regions and possibly other global markets. In 2006, the Chrysler Group sold 555,924 vehicles outside of the U.S., an increase of 6.6 percent compared to 2005. Those figures include an increase of 1.7 percent in Canada, 3.3 percent in Mexico, and 15 percent outside of North America. Sales were boosted by the worldwide appeal of new products launched during 2006, including the Dodge Caliber and Jeep Compass. "When you look at the global nature of the competitive scene, international initiatives will be critical to Chrysler Group's success in the years ahead," said Chrysler Group President and CEO Tom LaSorda. "We have a solid plan for sustainable, profitable international growth and the results so far provide a clear sign that the strategy is working. In the next five year period, a plan to double where we are today outside North America would be reasonable." 2006 Global Sales Results Chrysler Group worldwide vehicle sales decreased by 4.5 percent in 2006, to a total of 2,698,429 units (2005: 2,826,131 units). In the United States, the world's most competitive automotive market, sales declined 7 percent to 2,142,505 units (2005: 2,304,833 units). Sales closed with momentum in the final quarter of 2006, as customers responded favorably to the launch of a majority of the company's 10 all-new products for 2006. Against the overall market performance, the Chrysler Group posted sales of 190,415 units in December. This is an increase of 1 percent on an unadjusted basis compared to December 2005, when the company sold 189,449 units. On an adjusted basis, Chrysler Group U.S. sales was up by 4 percent. DaimlerChrysler Canada ended 2006 with five consecutive months of sales growth, and sales increased 1.7 percent for the year, totaling 220,553 units (2005: 216,857 units) and DaimlerChrysler remained the second-largest seller of vehicles in Canada. Growth was driven by a combination of new and existing models. Sales in Mexico rose by 3.3 percent to 128,446 units (2005: 124,353 units). Products sold under the Chrysler, Jeep(R) and Dodge brands posted significant sales gains during 2006 as the company continues to make headway with Mexican customers in key segments. 2006 was the second-best year in the last 10 years for Chrysler Group's International sales as the company experienced a 15 percent increase to 206,925 units (2005: 180,088 units) based upon the strength of new product launches during 2006. European sales, which account for a little more than half of the Chrysler Group's sales outside North America, increased 20 percent to 110,599 units. The year closed with a record 19 consecutive months of year- over-year sales gains. Cargo Van for Mexico "The opportunities outside the U.S. are becoming more and more important," said Chrysler Group President and CEO Tom LaSorda. "These opportunities involve new markets, new segments, new potential alliance partners and new sources for components." LaSorda said the Chrysler Group's global strategy builds on the company's historic strengths, including the ability to respond rapidly and creatively to emerging opportunities. Forging strategic alliances is a cornerstone of the strategy. The Chrysler Group has signed a Memorandum of Understanding with China Motor Corp. (CMC) to export a cargo van to Mexico. CMC will produce this vehicle at its assembly facility in Yangmei, Taiwan. The 1000Kg panel/cargo van built in Taiwan will be exported to the Mexican market where it will be sold as a Dodge vehicle. CMC is a long-term partner with DaimlerChrysler. CMC produces the Chrysler Town and Country minivan in Taiwan, via license, for the Taiwan market. The Chrysler Group also will produce a Chinese-market minivan via license with CMC and Fujian Motor Group in Fuzhou. Launch of Chrysler Sebring in China Production of the new Chrysler Sebring sedan for the China market will begin later this year in Beijing at Beijing-Benz DaimlerChrysler Automotive Co. (BBDC). BBDC is a joint venture between the Beijing Automotive Industry Holding Co. Ltd. and DaimlerChrysler. Production of the Sebring leverages assembly capacity at the new BBDC plant, which also builds the Chrysler 300C, the Mercedes-Benz E-Class and Mitsubishi Outlander. Four-cylinder World Engines for the Sebring will be built at the Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Mich. for export to China. GEMA is a joint venture of DaimlerChrysler, Mitsubishi Motors Corp. and Hyundai Motor Co. Global Business Opportunities Global partnerships and ventures are part of the Chrysler Group's aggressive drive to create new business models that make sense for today's global automotive environment. The agreement with Chery -- which is dependent on approval by the DaimlerChrysler Supervisory Board and Chinese government -- also illustrates the alliance strategy. The partnership allows the Chrysler Group to bring a low-margin subcompact car to market fast, meet targets for low cost and high quality, with minimal capital investment. Another example of the Chrysler Group's alliance strategy is a licensing agreement, reached last year, which allows Russian automaker GAZ to build the previous-generation Chrysler Sebring and Dodge Stratus sedans for sale in Russia under the GAZ brand. As part of the deal, GAZ purchased manufacturing tooling from Chrysler Group's Sterling Heights (Mich.) Assembly Plant where the sedans had previously been built, enabling the Chrysler Group to maximize its assets. Engines for the sedans and other vehicles being built by GAZ will be supplied by the Chrysler Group plant in Saltillo, Mexico. DATASOURCE: Chrysler Group CONTACT: Lori McTavish, +1-248-512-2642, , or Mike Aberlich, +1-248-512-2704, , both of Chrysler Group Web site: http://www.media.daimlerchrysler.com/ http://www.daimlerchrysler.com/

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