CANADIAN ITALIAN BUSINESS AND PROFESSIONAL

ASSOCIATION OF WINDSOR

50TH ANNIVERSARY CIVIC NIGHT

Address from Sergio Marchionne,

CEO of Fiat Spa and Chrysler Group LLC

Windsor (Caboto Club) ² Tuesday, 31 May 2011 ² h 8:30 p.m.

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Thank you, Minister Pupatello, for that introduction and moreover for the
trust and support that you personally and the Government of Ontario has
demonstrated towards our company.

Good evening, everyone. It·s a pleasure to be with you tonight.

The last seven days have been momentous for both Fiat and Chrysler
Group, days that are not easily forgotten.

One week ago, Chrysler paid off its Canadian and American government
loans in full, thus regaining its independence and its accountability to the
public capital markets.

All of this, coupled with Fiat·s acquisition of 16% of Chrysler for $1.3
billion and the exercise of its call option on the US Treasury·s 6%+
interest, will give effective and legal control of the company to Fiat, thus
allowing us to accelerate the industrial integration of the two groups.

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I have spent the last two days here in Canada, meeting with Government
officials, both federal and provincial, and Chrysler employees to thank
them and acknowledge their tremendous efforts and commitment in
helping us rebuild our company.

I want to begin tonight by congratulating the Canadian Italian Business and

Professional Association for its 50 years of helping Italian-Canadians, of
contributing to the overall welfare of Canadian society, and of supporting
charitable and educational initiatives, like tonight·s program to benefit the
Italian Studies program at the University of Windsor.

When your organization was formed a half-century ago, a large migration

of Italians to Canada had been underway for a number of years before.

Your association helped many of these immigrants make the adjustment

to a new land.

It was a few years later, when I was 14, that my family moved from
Abruzzo, Italy to Toronto.

We still debate the reasons for coming.

Two things we gained from the move were the opportunity to reunite my
mother·s family here in Canada and the opportunity for my sister and I to
experience a new way of life, unhampered by what my father saw as an
overly confining society in Italy, where connections and status counted
more than talent.

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I have to admit that it wasn·t easy.
It is never easy starting from scratch, in an unknown land with a foreign
language, learning to deal with those moments of loneliness that inevitably
come along.
It's not easy leaving the certainties of the world you know behind for the
uncertainties of a new one.

Those of you who have had a similar experience will understand when I
say that the journey was not without struggles and difficulties.

But we were all helped by the spirit that pervades in Canada: the spirit of
an open, multicultural and cosmopolitan society, where the value of the
individual and merit are the only passport required.

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That spirit has enabled so many people from other cultures to establish
themselves and integrate successfully in this country.
What has been achieved here is proof positive that true exchange
between cultures produces winners.

I now have dual Italian and Canadian citizenship, but in truth my

background includes an even larger aggregation of multi-national
influences.

While my father was Italian, my mother is from Istria and of Austro-

Hungarian descent.

I spent my adolescence and about half of my professional life in Canada,

including getting my business education at the University of Windsor.
Returning to this city always connects me to many personal memories.

In 1994, my career path took me to Europe, based first in Paris and then
in Switzerland, until 2004 when I was asked to take the helm of Fiat in
Turin.

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Then, in 2009 my life brought me back to North America, this time to
Detroit, to tackle the challenge of revitalizing Chrysler.

Looking at my curriculum vitae, some people might conclude that I am

´ethnically confused.µ

And maybe they are right but to me, confusion is what happens when you
take all of the influences and simply mix them all together, like some kind
of stew in which one ingredient cannot be distinguished from another.

Americans subscribe to the notion of their country being a melting pot ²

a process designed to get immigrants to assimilate into a distinct
American way of life and to largely leave behind ties with their countries
of origins.

American history shows there is much to celebrate about the melting

pot,. It is a vital part of the strength and the richness of the U.S.

But Canada has taken a different approach to diversity.

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Instead of a melting pot, the ideal is that of a mosaic. In a mosaic,
individual pieces are brought together to create a picture or a design.
Each piece keeps its identity, but contributes to the whole.

Immigrants to Canada are expected to learn and respect the mainstream

culture, including its rules, while preserving their own cultural heritage.

This view of diversity encourages you to celebrate the way your culture
contributes its unique perspective and strength to the whole, while
accepting and everyone else·s culture.

This paradigm for diversity and this idea of the mosaic are very close to
the way the alliance between Fiat and Chrysler Group has been designed
and reflects our approach to integration.

This means aligning the Fiat and Chrysler organizations, but without
discarding the strength of two different cultures.

It would in fact be foolish to believe that one culture is better than the
other.
When the Chrysler-Fiat alliance first was announced, I heard contrasting
views.
Some speculated that Fiat was trying to reinvent itself on an American
model. Others, especially in Italy, started thinking about themselves as the
savior of an American company.

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All these points of view are totally wrong and miss the big picture.

The truth is that neither Fiat nor Chrysler could or would have fared well
without the other.
This alliance gives Fiat the critical mass necessary to compete on a global
scale.
The partnership is enabling both companies to make the leap of portfolio
depth that they would not have had the ability to do by themselves.
So the truth is that the savior and the saved live on both sides of the
Ocean.
Fiat and Chrysler both have proud heritages and distinctive identities that
will continue to be reflected in the products that we deliver.

Because the differences between Fiat and Chrysler are, in fact, the
strength of the partnership.
The Fiat 500 is an example of the approach I am talking about.

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The work we have done together to adapt the car to the different needs
of the North American market highlights the way in which we are building
and managing our partnership.

There was intense and close working, side by side, between the teams in
Italy and in Auburn Hills, to preserve the Italian essence of the car and, at
the same time, to adapt it to the needs and the habits of Canadian and
American customers.
The teams went over every detail of the car to enhance what was an
outstanding package to begin with.

The Fiat 500·s world-class driving dynamics were tailored for North
American driving conditions. The version that you see on Canadian and
American roads is as agile and as fun-to-drive as its European counterpart,
while at the same time providing a cabin experience that is quieter and
more comfortable.
The people at Chrysler took on the Fiat challenge with passion and vigor.
If I told anybody that we would be launching a car in North America
within 23 months after Fiat formed its partnership with Chrysler, nobody
would have believed it.
But a car is being produced and it is being built with outstanding quality,
which is typical of what we·re doing today in Chrysler.

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I·m incredibly proud of the fact that Chrysler was able to accept a
challenge and move it on technically.
The 500 is a great embodiment of a set of values that sit within the Fiat
brand and which will intend to make a significant part of the Canadian and
American automotive landscape.

The 500 not only marks the return of Fiat to the North American market
after a too-long absence of 28 years, it also embodies a new vision of
technology·s role in the achievement of sustainable mobility.

With its low fuel consumption and its low CO2 emissions, it is an
ambassador of a genuine concern for the environment and an approach to
ecological responsibility whose time has finally come.

This attachment to efficient mobility and Italian style is something that is

now part again of the cultural fabric of Fiat, something valuable and
relevant in today·s environment that we intend to develop internationally.

The Fiat 500 and its sister version, the 500 Cabrio which was unveiled just
last month at the New York Auto Show, represent just the beginning of a
series of vehicle that will reestablish the Fiat brand in this market.

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The best way to explain what this car is about is to show you a video.
We played it at the Los Angeles Auto Show, last November, to present
not only the car, but also our values, our passion for autos, our attention
to detail and, underneath it all, our approach to life.
It embodies the dream on which Fiat was founded, back in 1899: the very
simple idea of providing freedom and mobility to one and all, of
expressing what it really means to be Italian and to appreciate all those
moments that make life worth celebrating.

[Show Fiat video, ´Life Is Best When Drivenµ; time 1:45]



All of our new Fiat dealers are not yet established, but consumer
response has been strong.
When Chrysler Canada offered the Fiat 500 Prima Edizione models to the
public last November 23rd, all 500 units of the Cinquecento sold out in
just 12 hours.

Reid Bigland, the President and CEO of Chrysler Canada, remarked that
they were selling like Stanley Cup Finals tickets!

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I think this reflected both a clear appreciation for the car, and also was
evidence of the special relationship between our company and this
country.
Chrysler has a long-standing relationship with Canada and deep roots in
the community.
Chrysler Canada was founded in 1925, and the Windsor Assembly Plant is
our oldest manufacturing facility, dating back to 1928. It is also the only
remaining auto assembly plant in the city.

Altogether, Chrysler employs some 9,000 people in Canada.

The three production sites we have in the country ² the assembly plant in
Brampton and the Etobicoke Casting facility in Toronto, in addition to the
Windsor assembly plant ² form a key part of the group·s overall
manufacturing capabilities.
In fact, Chrysler is the No. 2 auto manufacturer in Canada, and our plants
in Canada account for 30 percent of Chrysler·s worldwide production.

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In 2010, production at our two Canadian assembly plants increased 51
percent over 2009, and these two plants produce some of our most
popular models, including our company·s flagship car, the all-new Chrysler
300, and our segment-leading minivans.
Our sales in this country have increased for 17 consecutive months, and
the Dodge Caravan, Dodge Journey and Ram truck all rank in the Top
Ten best-selling vehicles in Canada.
In Windsor, we also manage the Automotive Research & Development
Centre, created in partnership with the University of Windsor, which has
established itself as a center of excellence in design, virtual reality and
simulation of production processes.

But the relationship between Chrysler and Canada goes beyond numbers
and percentages.
We have grown up together, we have shared successes and difficult
moments, downturns in the economic cycle as well as times of prosperity.
Our cultures, our histories ² and our futures ² are intertwined.
And for all of us at Chrysler, it·s a privilege to be part of Canada·s identity
and we will continue to play our part to contribute to this country·s
industrial and social development.

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In 2009, when Chrysler·s very survival was in doubt, the governments of
Canada and the Province of Ontario ² as well as the U.S. ² showed
support for us by extending loans at a time when the financial markets
were shut and unavailable to most businesses looking for capital.. Our
efforts were further encumbered by our somewhat checkered history.

And yet someone believed in us.

The Canadian and United States governments extended us loans that gave
us a second chance, enabling us to begin the important work that needed
to be done.
Every single day for these past two years, we have been conscious of the
moral responsibility we have to all of those individuals and organizations
and we have made every effort to demonstrate that their sacrifice and
investment was worthwhile.
It was a momentous occasion° last Tuesday, when we announced that,
significantly in advance of the initial plan, we were paying back with
interest every penny that had been loaned and fulfilled our promise.

We are still very grateful to those who had made sacrifices on our behalf.

They not only gave Chrysler the possibility to demonstrate its full
potential, but they also represented an act of faith in our partnership, in
the ability of Fiat and Chrysler to create something better and lasting.

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The Chrysler-Fiat alliance was undisputedly a response to the pressures of
the global economic downturn that engulfed the auto sector.

It forced us to face reality. The American author Arthur Golden wrote:

´Adversity is like a strong wind « (that) tears away from

us all but the things that cannot be torn, so that afterward
we see ourselves as we really are, and not merely as we
might like to be.µ

The crisis rubbed our noses in the irrefutable reality that no part of the
system could afford to indulge in wasteful practices and that success in the
new era required selectivity, rigor and austerity.

Our partnership was born with this goal, to prove we had learned from
experience and were capable of building a dynamic, future-looking
enterprise.

One that creates value, instead of destroying it.

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There can be no doubt that the determination and courage shown by the
Canadian and U.S. governments are unique.

An initiative whose initial objective was to save hundreds of thousands of

jobs turned into an opportunity to launch a "new green deal" through
which a profound impact can be made on consumers habits, giving
support to the auto industry·s efforts to reduce emissions levels and fuel
consumption.

This was a structural shift, with government, companies, trade unions and
financial institutions working side-by-side to go beyond just saving an
industry.

It represented a true rethinking of the system from an ecological

perspective.

Our two automotive groups took a courageous and fundamental step

towards change when they chose to merge their respective capabilities,
strengths and know-how to make a major transformation in terms of
quantity and quality.

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Our collaboration enables us to ensure access to adequate capital,
leverage technical know-how and investment, and face competitors on an
equal footing.
Our two groups are perfectly complementary in terms of products,
architectures, know-how and geographic presence.
The presence and experience of Fiat in the smaller car segments and of
Chrysler Group in the medium and larger segments translate into a full
product offering and the ability to compete across all market segments.
The alliance is leveraging core competencies on both sides, with a clear
definition of responsibilities.
We also are sharing best practices in areas such as manufacturing. Fiat·s
World Class Manufacturing is rapidly spreading through the Chrysler
production system, increasing safety, efficiency and quality while reducing
waste.

Chrysler·s comeback story would not have been written without an

unrelenting dedication to rapidly improving the product portfolio.
Within the first 19 months of beginning operations as a new entity, we
brought out 16 all-new or substantially improved vehicles. This included
two new nameplates and 75 percent of the portfolio carried over from
2009.

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The efforts and the commitment we made have allowed us to once again
achieve growth in all markets and to report a net profit for the first
quarter this year.
Every one of these goals was a milestone in our determination to restore
credibility and confidence in this house. Taken together, they have helped
change the conversations from a not-so-glorious recent past to an
exciting future.
Nothing of what we accomplished could have been possible without the
extraordinary strength and resilience of the people at Chrysler, and their
tireless efforts.
The commercial that we aired during this year·s Super Bowl ² and that
many of you probably know ² says everything about the new Chrysler and
its people.

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A company that has been to hell and back and yet still dares to dream.
A group of people free to venture beyond the ordinary and the expected,
free from prejudices and the limitations of habit, free to express their
creativity and even break the conventions of what a TV commercial
should be.
That spot is homage to the culture of action and to our industrial roots.
It speaks about hard work and results achieved through resilience and
tireless efforts. About people that are not resigned to their destiny but
redesign the future for themselves, day after day.
It is not simply a commercial: it is the embodiment of our spirit.
It portrays our company and its aspirations.
It shows our passion for cars and our desire to create the best.
In the end, it expresses the vision that we are making come to pass.


[Show ´Born of Fireµ commercial; time 2:00]

This commercial shows another part of the mosaic that makes up the
Fiat-Chrysler partnership. Although it comes from a very different place, it
expresses a native pride that is equally intense as that which you saw in
the Fiat video I showed you a few minutes ago.

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The strength of the partnership is its ability to not only encompass both
of these cultures, but to cherish and nurture them.

This advertising I just showed you, which features Detroit rapper Eminem,
has been a rallying cry for both Chrysler and Detroit.

It expresses what many people have been feeling for some time about
how a company, and a city, are fighting to reclaim respect.
´Imported From Detroitµ is a line that has resonated even with those
who were not born and raised in this area, but who understand the grit
and determination that underlie this spirit.
It was this very spirit that allowed us to reach the results I talked about
earlier, as well as the important milestone a week ago, with the
repayment of the loans.
My colleagues at Chrysler and I are survivors.
Survivors are different people, they are special people.

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We have found the strength to fight against the death sentence placed on
our company from the very beginning.
We found within ourselves the courage to act and reverse our fate.
And now we are living, day by day, a new life based on what we have
learned from that experience.
For that reason, we are special people.
Because we have learned to look at the future in a way different to
others.
We have a level of awareness and understanding of the world that is
different from anyone else·s, that is rare and precious.
We are capable of appreciating every single moment and every single
thing in this new life that has been granted us.

We will never forget the experience we have been through.

We are going to treasure it every day.
Being survivors has not only empowered us to pull out the best in
ourselves, in our work and for the company, but it also has had an impact
on our personal lives and, in the end, made us better people.
There is an untold story in what we are living. One that in a sense is too
early to tell, and that involves our personal transformation, the
transformation of the leaders who have been involved in this revival of

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Chrysler·s fortunes, and of the people whose lives they hold in their
hands.
They are changed forever.

We have changed forever, because we now know that ultimately,

regardless of the circumstances, we have the power to refuse our
consent.
We have an obligation to refuse our consent to decay, to disengage from
competition, to industrial neglect, to the removal of wasteful activities,
because ultimately, consenting to these things is a denial of our right to
live and to our obligation to protect the welfare of our people.

But our work is by no means finished.

As Winston Churchill said, after the British won an important victory in
World War II, ´Now this is not the end. It is not even the
beginning of the end. But it is, perhaps, the end of the
beginningµ.

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The repayment of government loans closes an important chapter in our
history, but, working together, Chrysler and Fiat still have a great deal left
to accomplish before regaining their rightful place in the automotive
landscape.
Our alliance is moving forward rapidly and we are doing everything
possible to accelerate the pace and bring about, in the shortest possible
time, the birth of a single group, bringing even greater stability and
strength to the relationship, in the interests of both partners.

An organization capable of fully leveraging each partner·s international

capabilities.
An efficient and competitive global automaker, possessing advanced
technological know-how and the determination to establish itself as a
leader in the sector.
And, above all, a group that offers its employees a more certain future
and a challenging environment, where cultural exchange and integration,
together with a competitive spirit, provide the ideal conditions for their
professional and personal growth.

You might well ask, how will the integration of two distinctive companies
continue to go forward? And, what will the mosaic of our partnership
look like in the future?

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What I can tell you is that we need to maintain a healthy measure of
humility, if we want to achieve an integration which will add value to both
companies.

The fruits of our alliance go far beyond simply the business opportunities
it has created.
Something much more profound is taking place.
Fiat and Chrysler are undertaking a cultural integration based on mutual
respect.
Instead of giving up something, each is being enriched by learning from the
other.
Today we have an extraordinary group of people working together,
listening, exchanging ideas, expanding their horizons.

It is not a casual encounter between passing strangers or curious tourists.

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We are working and growing together as fellow citizens and friends.
And working together, we will chart a destiny that never forgets its roots
but boldly welcomes the challenges and opportunities to express our
identities in new ways.
This is the true strength ² and I believe the most precious part ² of our
partnership, whose value lies in the incredible human wealth created for
our people and companies.
Thank you all. c

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