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Chrysler Speeds Up Introduction of Regional Business Center Program

November 19, 2002

Chrysler Group has announced that it will reorganize its field operations from January 1, adding three Regional Business Centres (RBCs), replacing the current zone office structure.

According to the company, the move is designed to more closely align the field organization with the company's corporate sales and brand marketing team structure and improve communications between the company's Auburn Hills headquarters, field organization and dealers.

"The market requirements for selling trucks in Texas are different from those in New York, so why should we try to apply a national sales and marketing approach equally to both of the regions?" said Chrysler sales chief Gary Dilts.

"We'll give the regional business center management the resources necessary to make the smart decisions in order to respond quickly to local market demands. They'll be responsible for managing significant advertising, incentive, product and distribution decisions."

The business centers will have their own finance, legal, marketing, parts & service, fleet, customer relations, training and warranty staff.

"The restructuring of our field organization is being done in an effort to more directly service our dealers and their local markets," said Dilts. "The resulting organization will be leaner, faster and more responsive."

DaimlerChrysler opened its current network of five regional centers in March 2001, located in Detroit, New York, Los Angeles, Orlando, Florida, and Dallas. The expanded network will add offices in Chicago; Washington, D.C.; and Denver and absorb staff from the 24 zone offices.

Chrysler Group anticipates operational savings from the consolidation of facilities and other fixed assets. The company has offered relocation and continued employment in a regional business center to all affected zone office employees.

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