In its second model year, the Chrysler 300M received several upgrades and additional color options.  A four-disc in-dash CD changed was added, along with the AutoStick manual shifter and rear-seat cup holders.  The sporty transmission was softened to provide a less invasive road feel.
The 300M was classified as a full size luxury sedan, and suspension was now adjusted accordingly.  The 3567 pound sedan was still powered by a 3.5 liter V-6, specifically designed for the LH platform cars.  This engine generated 253 horsepower and 253 pound-feet of torque, sending the 300M from 0-60 in just under eight seconds.  All models were FWD, and featured a four speed automatic transmission, now with a manual shifter.  The 300M's EPA rating was 19/27 mpg, and drivers could expect averages around 25 mpg in mixed driving.
Feedback on the pressing Chrysler reliability issue is diverse for this model year.  It seems that many of the prior year's problems were addressed.  Many owners report having their 300M for years without any significant service needs.  However, as many drivers accumulated miles, pit stops became more frequent.  A/C failure, steering box issues, and electrical problems are common reports.  The narrow rear window also limits visibility.