2. Why is Mexico your best trade partner? 1.Mexico’s favorable economic performance 2.A key player in the automotive industry 3.ProMexico’s role 2

3. MEXICO’S FAVORABLE ECONOMIC PERFORMANCE Chapter I

4. In 2010, Mexico’s GDP grew by 5.4%. The forecast for 2011 is 3.8%. Source: International Monetary Fund (updated September 2011); INEGI, 2011. Mexico is growing 4 Real GDP (Annual growth rate) Annualized growth 2010: 5.4% 2009: -6.1% 2008: 1.2% 2007: 3.3% 2006: 5.2% Forecast for 2011 Trend series Seasonally adjusted data

5. Source: Goldman Sachs. The N-11: More Than an Acronym. Global Economics Paper No: 153. March, 2007/ HSBC. 1/ Goldman Sachs forecast / International Monetary Fund. 2050 1 5th place 11th place 2010 Goldman Sach’s Forecast Gross Domestic Product (Billion Dollars) Forecasts According to HSBC, by 2050 Mexico will be the 8th largest economy in the world. It is estimated that by 2050, Mexico will become between the fifth and eighth largest economy. — Its GDP per capita will be comparable with those of developed countries. World's largest GDP measured by PPP (Billion Dollars)

6. A KEY PLAYER IN THE AUTOMOTIVE INDUSTRY Chapter II

7. Mexico’s competitive advantages in the automotive industry 7 Mexico’s competitive advantages Privileged geographic location Competitive operation costs Facility to do business Skilled and talented labor force Wide supply network Network of free trade and agreements

8. Mexico’s total exports SECTOR MEXICO'S TOTAL EXPORTS (MDD)% Petroleum and petrochemical40,86013.7% Agriculture, Livestock, hunting, fishing and tanning9,0923.0% Extraction of metallic and nonmetallic minerals2,3580.8% Manufacturing industries246,05182.5% - Electric-Electronic91,67330.7% - Automotive and auto parts industries68,85423.1% - Other manufacturing industries14,3264.8% - Metalworking11,6273.9% - Food, beverages and tobacco9,6223.2% - Chemical products8,6102.9% - Textiles, clothing, footwear and leather6,8992.3% - Aerospace6,5072.2% - Construction materials and hardware6,1482.1% - Plastics and rubber6,1482.1% - Medical equipment5,5831.9% - Iron and steel industry5,5541.9% - Printing and publishing3,3261.1% - Mining and metallurgy2,4640.8% TOTAL298,361100.00% 8 Source: Bank of Mexico.

9. A key player in the industry 9 SOURCE: Global Trade Atlas, 2011. / AMIA, Ward’s Automotive Reports 2010; Ministry of Economy. Mexico is the 6 th largest vehicle exporter globally. World Exports 2010 (by units)  The value of our vehicle exports is twice that of Brazil and India combined.  Mexico is the 9 th vehicle producer in the world. 11% of all cars and light trucks sold in the US were manufactured in Mexico. 18 of the main OEM's have facilities in Mexico. 90 of the top 100 auto parts companies in the world have production operations in Mexico.

10. Nafta is not the only market… 10 Ford GM Honda Nissan AfricaNissan

11. Mexico as platform to reach other regions 11 Source: Mexican Association of the Automotive Industry, 2011.

12. PROMEXICO’S ROLE Chapter IV

13. ProMéxico’s role ProMexico is the Mexican government’s agency in charge of: Attracting foreign investment. Supporting exports of Mexican goods. Helping Mexican companies to go global.

14. ProMéxico’s solutions for Chrysler Supplier development –Identification and selection of suppliers. –Organization of business meetings with suppliers. One Stop Shop –Linkage with government offices, academia, associations and other public and private organizations. Aftercare –Ongoing assistance to companies that are already established in Mexico and want to expand their operations. 14

15. INCENTIVES FOR FOREIGN INVESTMENT The ProMexico Fund: Cash grants (up to 5% of total amount of investment) for qualified strategic projects with foreign capital. –All projects are subject to analysis and approval by the Subcommittee. –Higher support for investment projects that promote innovation, technological development and research & development. –Chrysler is already receiving fund benefits. Decree to support competitiveness of the automotive industry. It grants benefits (customs, tariffs, government purchases) for the manufacturing of new light vehicles. 15

16. Board of Directors 16 Invitation by President Calderon sent on March 4 th –Invited Chrysler to hold an upcoming Board session in México –Opportunity to discuss with high level gov’t officials –Explore opportunities in México first hand Boards have found it to be a very fruitful activity –Demystify common perceptions –Candid conversations on topics of key concern for the company –Accelerate business decisions –Examples include Siemens, Flextronics and Techint Examples of formats that have been found useful –Prior work with the company to develop the agenda and business intelligence –Visit to the Centro de Inteligencia de la Sec. de Seguridad Publica –Round table with key government officials –Lunch with President Calderon –External speaker to provide 3 rd panorama of México –Dinner or event hosted by a relevant state governor

17. Thank you! 17

18. MEXICO IS A SAFE PLACE FOR INVESTMENT Chapter VII 18

19. Mexico: a Safe Place for Investment Mexico’s favorable image as an attractive investment destination can be seen in various international reports and documents, including: The 3 rd edition of the American Chamber’s The Impact of Safety in Mexico in the Private Sector (2011) shows that 92% of the companies interviewed emphasize their commitment to continue in Mexico and 73% report that their investment plans remain unchanged. Foreign Chambers of Commerce in Mexico and Trade Councils such as: Source: AMCHAM, The Impact of Safety in Mexico in the Private Sector (3 rd. Edition) 19  The Swedish Trade Council  German- Mexican Chamber of Commerce and Industry (CAMEXA)  95% consider that Mexico’s business environment is favorable or very favorable.

20. Investment in our country hasn’t ceased because of violence 20 Source: National Security Strategy Council 1 1 2 2 3 3 4 4 5 5 6 6 Participation of foreign direct investment in the border

21. Good Grades Mexico registered the largest improvement in the American continent in the Global Competitiveness Report 2011-2012. —Our country advanced in 10 of the 12 pillars analyzed by the Index. 21 Source: World Economic Forum, 2011 Mexico's position in the Global Competitiveness Report (WEF)

22. Alliance with Transnational Companies (ATC) 22 1 Financing, entrepreneurship, innovation 2 Advice on trade, business agendas, contact with the market 3 Business linkage and investment incentives Government support: Other companies Global company Supplier / new facilities Innovation Transfer of operations National supplier Technological development Input requirements Suppliers features International supplier Exports National diversification Another global company Export diversification 1 2 3 3 Business Accelerator Program