"Segment-busting" 2004 Chrysler Pacifica to be built in Windsor

TORONTO, Feb. 13 DaimlerChrysler's next segment-busting vehicle - the all-new 2004 Chrysler Pacifica - will be built in DaimlerChrysler Canada's Windsor (Ontario) Assembly Plant, with production scheduled to begin in early 2003. The company is investing approximately $460 million in the Windsor plant to build the Pacifica. The announcement that Pacifica will be built in the same plant where DaimlerChrysler also builds its industry-leading Dodge Grand Caravan and Chrysler Town & Country minivans, was made by DaimlerChrysler Canada Chairman, President and Chief Executive Officer Ed Brust during the media preview of the 2002 Canadian International AutoShow here today. The highlight of the DaimlerChrysler Canada presentation at the media preview was the Canadian premiere of the Chrysler Pacifica concept vehicle, which was unveiled by Mr. Brust.

"Nearly 20 years ago, Chrysler created a huge, new market segment when the first front-wheel-drive minivan was built at Windsor Assembly", Mr. Brust said. "Now, nearly ten million minivan sales later, we're about to launch another new segment called Sports Tourer. Similar to our original minivan and the Chrysler PT Cruiser, the all-new 2004 Chrysler Pacifica is another segment-buster from Chrysler. Innovative packaging and proportions, including three rows of seats, car-like handling and all-wheel-drive make Pacifica unlike any other vehicle in the marketplace", Mr. Brust said.

"We wanted to come up with the next great idea for the market - a vehicle that doesn't conform to the traditional proportions of a car, a sport utility vehicle or a minivan, yet features all of their best attributes. Pacifica has just the right formula of proportions, packaging, performance and appearance that will set it apart from the competition. Pacifica is distinctly Chrysler. It's all about enjoying the journey - not just the destination", Mr. Brust said.

While the 2004 Chrysler Pacifica will be built in the same plant as the Dodge Grand Caravan and Chrysler Town and Country, the new vehicle will not be built on any of the company's minivan platforms. Pacifica will be built on its own unique new platform and will share only five per cent of its components with our minivans.

While Pacifica, Chrysler Town and Country and Dodge Caravan will share minimal parts, Chrysler will utilize existing corporate resources to build Pacifica - including the proven 3.5-litre V6 engine used in the performance- oriented Chrysler 300M. DaimlerChrysler was able to bring the vehicle to market cost-effectively by utilizing the company's parts bin where appropriate.

DaimlerChrysler's innovative new flexible manufacturing system will enable the company to build the all-new Pacifica on the same line at Windsor Assembly where minivans are produced. This system helps bring new products - like the Chrysler Pacifica - to market faster with better quality, less investment and minimal downtime.

The ability to build multiple products on the same assembly line enables the company to build and test prototype vehicles much earlier in the launch phase. By doing it on the same line where production will take place, on a simulated line, the company can better train operators and resolve any manufacturing issues much earlier in the manufacturing process.

The flexible manufacturing system set a new benchmark with the launch of the company's all-new 2001 minivans at Windsor Assembly in the summer of 2000. The plant ramped up to maximum production - approximately 25,000 of an all-new model - in just 25 days compared to a 110-day industry average.

"Flexibility is more and more becoming the key ingredient in manufacturing," said Tom LaSorda, Chrysler Group Executive Vice President of Manufacturing. "The benefits of building pre-production vehicles on the same line where the production vehicles will be built results in better quality, lower costs, less downtime and minimal production loss. That represents huge savings to the bottom line."

The concept version of the Pacifica unveiled in Toronto was first shown at the 2002 North American International Auto Show in Detroit. The production version of the Chrysler Pacifica will be revealed later this year.

Opened in 1929, DaimlerChrysler Canada's Windsor Assembly Plant has produced more than five million minivans since the first MagicWagon was built there in November 1983. Current employment at Windsor Assembly is 5,400.

The minivan market segment remains vibrant with industry-wide sales in North America of approximately 1.4 million units in 2001. The company annually sells more than 550,000 Chrysler and Dodge minivans worldwide. DaimlerChrysler continues to dominate the minivan market in Canada with a 37.4 per cent share for the 2001 Calendar Year. Dodge Caravan was the top-selling vehicle in Canada for the past two consecutive calendar years and retained that lead in January 2002.