Chrysler PT Cruiser Production Starts in Europe

    GRAZ, Austria, July 17 The first European-built Chrysler
PT Cruisers rolled off the production line today at DaimlerChrysler's Eurostar
Assembly Plant in Austria, as the company stepped up production in response to
strong global demand.

    The company has continued to increase production of the popular, head-
turning Chrysler PT Cruiser since its introduction in early 2000.  In April,
the company announced it would expand capacity of its Toluca (Mexico) Assembly
Plant from 180,000 to 260,000 units annually.  Eurostar can produce 50,000
Chrysler PT Cruisers annually, bringing the worldwide capacity to 310,000
units in 2002.

    "The Chrysler PT Cruiser underscores the Chrysler brand's commitment to
offering unique and innovative alternatives on an international scale, and
with the start of PT Cruiser production in Europe, we are further realizing
the global potential of the brand," said Dieter Zetsche, President and CEO
of the Chrysler Group.  "By continuing to expand PT Cruiser production, we
are giving our customers more of what they want -- a product that combines
unique design, maximum versatility, high quality and a fun driving
experience.  The additional capacity in Europe will also help us meet the
strong demand in North America."

    The flexibility of the Eurostar facility has enabled the company to add
the Chrysler PT Cruiser to the same production line as the 2001 Chrysler
Voyager minivan, which started production in January.  Producing both vehicles
on one line will enable the company to easily adjust volumes of either
product, depending on customer demand.  The plant's flexibility also enabled
it to reach top quality much earlier in the pre-launch phase by building early
prototype vehicles on the production line to validate processes and train
employees.

    The plant held a "Job One" ceremony today, marking the first day
customer-ready vehicles began rolling off the production line.  Eurostar
Managing Director Gary Cash was joined by Herbert Paierl, Minister of Economy
& Finance, of the state of Steiermark; Alfred Stingl, Mayor of Graz; major
suppliers, community leaders and hundreds of employees at the ceremony.

    SYNERGIES IN GRAZ

    Both Eurostar and the Steyr-Fahrzeugtechnik (SFT) plant adjacent to it
continue to play important roles in realizing synergies between Chrysler
and Mercedes-Benz.  SFT has been producing the Jeep Grand Cherokee and
Mercedes-Benz M-Class on parts of the same production line since the merger
of Daimler-Benz and Chrysler Corporation in 1998.  Eurostar is a benchmark
training site to share best practices in quality and efficiency between the
production systems of Mercedes-Benz and the Chrysler Group.  The company
also benefits from combined international supplier and logistics
infrastructure.

    Chrysler Group products will continue to benefit from Mercedes-Benz
technology, including powertrain applications and electronic architecture.