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DaimlerChrysler Sells 3.8 Million Passenger Vehicles Worldwide in 2003

-- Mercedes-Benz consolidates position as leading producer of premium automobiles worldwide -- Chrysler Group shows resilience in tough market environment; Dodge Ram has best year ever -- Six new models from Mercedes Car Group and nine models from Chrysler Group in 2004 form foundation for substantial growth in the next years

DETROIT, and STUTTGART, Germany, Jan. 5 -- DaimlerChrysler AG sold 3,822,000 passenger vehicles around the world in 2003 (3,976,300 cars in 2002). With unit sales of around 1,215,000 vehicles, the Mercedes Car Group which encompasses the premium brands Mercedes-Benz passenger cars, smart and Maybach, almost attained the record level reached in 2002 (1,232,300 units). Chrysler Group, which consists of the Chrysler, Jeep(R) and Dodge brands, sold 2,607,000 vehicles worldwide (previous year 2,744,000) despite a fiercely contested U.S. market.

Mercedes-Benz posts new sales records outside Germany

Mercedes-Benz sold about 1,091,500 passenger cars in 2003 (previous year 1,110,000 passenger cars). Despite this small decrease of 1.7 percent, Mercedes Benz remained the world's leading premium brand with an unchanged global market share of 2.5 percent. "In 2003, we more than held our own in a declining market climate," says Prof. Juergen Hubbert, Member of the Board of Management of DaimlerChrysler AG, responsible for the Mercedes Car Group. "With the introduction of such new models as the E Class station wagon and the CLK convertible, we have successfully kept up the momentum of the second product offensive. With six product launches, the Mercedes Car Group faces several major challenges in 2004. However, we are convinced that attractive, customer-oriented vehicle concepts like the new SLK, the second-generation A Class and the smart forfour will form the foundation of further substantial growth in the years to come."

Mercedes-Benz is the clear market leader in the luxury and upper range segment

Despite increasingly tough competition, the S-Class defended its global market leadership in the luxury segment with a market share of over 40 percent. In 2003, a total of 67,500 S-Class sedans were sold, about two percent more than in the previous year. The SL-Class roadster was also able to once again surpass its excellent sales total for the previous year: Unit sales climbed six percent to 33,300 vehicles. This new record enabled the leading vehicle in the market for exclusive roadsters to expand its worldwide market share to more than 60 percent.

The E-Class also posted a new record, with sales of over 305,000 passenger cars. In 2003, the sedan consolidated its leading position in the upper-range segment (market share in 2003: 36 percent) by boosting unit sales 42 percent to 253,700 passenger cars. The E Class station wagon assumed market leadership in Germany in April 2003, just one month after sales of the new vehicle began, and set a record with global sales of 50,000 vehicles in 2003.

A total of 442,100 passenger cars from the C-Class model family were sold during 2003. The C-Class sedan (216,400 passenger cars) boosted its market share in a declining comparative segment to 12 percent. The sports coupe (53,500 passenger cars) and the station wagon (64,100 passenger cars) maintained their global market share in their declining individual segments. Both the CLK convertible (25,900 passenger cars) and the CLK coupe (60,000 passenger cars), which has taken over market leadership in Western Europe, posted record unit sales in 2003. Taking the current stage of the vehicle's life cycle in consideration, sales of the SLK (22,000 passenger cars) remained stable.

The A Class crossed the 1-million barrier in sales. This feat was achieved only six years after the vehicle was introduced to the market and while it is still in its first product cycle. In 2003, a total of 148,000 A-Class models were delivered. About 40 percent of customers selected the long version that was introduced in 2001.

Despite intense competition in the market for sport utility vehicles (SUV), the Mercedes-Benz M-Class more than held its own in the seventh year after its market launch. A total of 81,300 M-Class vehicles were sold around the world in 2003. Since the market launch in 1997, more than half a million customers have decided to purchase the M-Class. In Germany, the M-Class defended its market leadership in the SUV segment during 2003. Demand for the Mercedes Benz G Class, the classic among SUVs, remained high almost 25 years after production began. During the year, 7,200 vehicles were sold (previous year 8,800).

Mercedes-Benz AMG on course for new records with new models

With three new high-performance vehicles, the CL 65 AMG, the CLK 55 AMG convertible and the E 55 AMG station wagon, Mercedes-AMG GmbH enjoyed continued success in 2003. Unit sales around the world climbed to substantially more than 20,000 vehicles in 2003. In the United States, the biggest market for AMG high-performance models, demand even doubled, thanks primarily to the tremendous success of the SL 55 AMG roadster.

Tenth consecutive sales record in the U.S.

During 2003, Mercedes-Benz posted its tenth successive sales record in the United States: Even though the passenger car market continued to decline slightly, unit sales grew 2.6 percent to 218,700 cars (previous year 213,200 passenger cars). The C-Class (91,200 passenger cars, up two percent), the E Class (55,700 passenger cars, up 31 percent) and the S Class (39,600 passenger cars, up two percent) all contributed to the growth on the North American market.

In Western Europe, the market moved in two different directions during 2003: In Germany, Mercedes-Benz unit sales of 348,700 vehicles were nearly seven percent below the previous year's high figure. However, Mercedes-Benz was able to boost its sales in nearly all other major European markets. In the United Kingdom, Europe's second-biggest market, unit sales of 90,400 vehicles were eight percent up on the record level set in 2002. Mercedes-Benz also set sales records in Italy (73,300 passenger cars, up five percent) and Spain (32,800 passenger cars, up eight percent). With sales of 693,600 vehicles, Mercedes-Benz was able to maintain approximately five percent market share in Western Europe during the year.

Foundation laid for long-term growth in China

In the Asia-Pacific region, Mercedes-Benz is further expanding it's strong market position. Unit sales jumped nine percent in 2003 to 94,400 passenger cars. In Japan, sales outperformed the generally weak market and increased four percent to 42,500 vehicles. The Chinese market showed dynamic growth. Demand in China for Mercedes Benz passenger cars shot up 33 percent to 9,200 vehicles in 2003. In order to gain a larger share of the growing Chinese market, DaimlerChrysler AG and Beijing Automotive Industry Holding Company Ltd. signed a framework agreement in September 2003 that sets a yearly production capacity of 25,000 Mercedes-Benz E- and C Class cars. Delivery of the first Mercedes-Benz models produced in China is planned to begin 18 months after the project is approved.

Smart boosts global unit sales to 123,500 vehicles

Smart continued to grow during fiscal 2003. After a record year in 2002, unit sales rose an additional one percent to 123,500 units (previous year 122,300). Starting in April 2003, a major contribution to this result was provided by the second production series of the smart roadster and the roadster coupe. The new models recorded sales of 20,500 units, thereby greatly exceeding the original target for the year of 8,000 to 10,000 units. In Germany, France and Switzerland, the smart roadster and roadster coupe have reached second place in their respective competitive segments only eight months after their market launch. The smart city coupe and convertible were successful as well, achieving unit sales of 103,000. In the rapidly shrinking small-car segment, both models gained market share in such large European markets as Germany, France, the United Kingdom, and Spain. In 2003, demand for the smart was once again highest in Germany with 41,300 deliveries, followed by Italy (32,100), the United Kingdom (13,000) and France (9,500). smart posted particularly high sales increases in the United Kingdom (up 35 percent) and France (up eleven percent)

Market and product offensive: smart utility vehicle planned for 2006 in the U.S.

"In 2004, smart will press ahead with its growth strategy," says Andreas Renschler, Member of the Divisional Board of Management at the Mercedes Car Group and CEO of smart. "Here, important momentum will be generated by the smart forfour, which will bring a new look to streets and highways starting in April. This first four-seat model in the smart product family offers a combination of emotional appeal and utility that has not been seen before in its segment." The forfour will also form the basis of the brand's fourth model series: a smart utility vehicle that is scheduled to be launched in the United States in 2006. A first key strategic step was taken to promote the brand in the commercially critical NAFTA region and on the North American continent with the introduction of the smart in Mexico. As a result, the brand was represented in 31 countries around the world at the end of 2003.

Maybach sets new standards in the world of luxury automobiles Roughly a year after sales began in Europe and Asia and just under six months after the vehicle was introduced to the U.S., its main sales market, deliveries remain on schedule. About 600 of the exclusive luxury cars were delivered to customers in 2003. "With the Maybach, we have successfully positioned a brand with tremendous appeal and a rich tradition alongside Mercedes-Benz and occupied the high-end luxury car segment," says Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes Car Group. "The Maybach has received an excellent response from the target groups worldwide." Particularly appealing to customers is the opportunity of working together with a "Personal Liaison Manager" to customize the Maybach to suit their individual needs. The business package and comfort features like the electro-transparent glass roof are extremely well received.

Chrysler Group Finishes the Year with a Strong Fourth Quarter

In the U.S., the primary market of the Chrysler Group, sales of Chrysler, Jeep and Dodge vehicles in 2003 were 2,127,451 units. This small decline of four percent (in 2002, total sales were 2,205,446 units) occurred in a year of fierce competition in the world's largest and most competitive automotive market.

"Despite a difficult environment, the Chrysler Group was able to achieve a number of successes in 2003," said Dieter Zetsche, Chrysler Group President and CEO. "Particularly encouraging was our strong finish, led by the Chrysler Pacifica and the all-new Dodge Durango. For three consecutive months in the fourth quarter of 2003, Chrysler Group had year-over-year sales gains, giving us solid momentum as we prepare to launch nine new products in 2004."

Chrysler Reaffirms its Status as the Group's Premium Volume Brand

A 24 percent increase in the sale of Chrysler brand vehicles in the fourth quarter of 2003 compared with the same period in 2002 was not enough to push the year into positive territory for the brand. Total Chrysler sales for the year were 463,590 units, down three percent (480,263 units in 2002). On the other hand, Chrysler truck sales were up one percent for the year, at 305,515 units. Among vehicles experiencing lower volumes were Sebring, 300M, Concorde, LHS, Prowler, PT Cruiser, Voyager and Town & Country.

Of the three all-new Chrysler Group vehicles that went into production this year, two wear the Chrysler winged badge. (The 2004 Dodge Durango is the third.) The all-new Chrysler Pacifica recorded sales of 56,656 units, a respectable showing, considering that the sports tourer segment is new to the U.S. market. The Chrysler Crossfire had first-year sales of 4,021 units.

"Chrysler is our premium volume brand in terms of quality, features, performance, refinement and execution," said Zetsche. "We will take the opportunity this year to reaffirm that positioning with a range of all-new and exciting 2005 model year Chrysler brand vehicles." The company that invented the minivan category 20 years ago continues its innovation leadership with a minivan first: the Stow 'n Go second- and third- row seating and storage system, available on the Chrysler Town and Country and Dodge Grand Caravan minivans. Stow 'n Go is one of more than 15 new features and safety enhancements on the new 2005 Chrysler and Dodge minivans. They will be available in dealerships early this year.

The Chrysler 300 marks the return of the Chrysler Group to the rear-wheel- drive sedan. Its bold styling starts at under $24,000, and under $35,000 for the 5.7-liter HEMI(R) Magnum V-8. The Chrysler 300 arrives in the spring.

The Chrysler PT Cruiser Convertible continues the phenomenon begun with the introduction of the 2001 PT Cruiser sedan. With its distinct combination of heritage-inspired styling, one-of-a-kind versatility, best-in-class roominess, and unmatched comfort, the PT Cruiser Convertible represents a unique offering to the convertible customer. It is available early this year.

Building on the success of the Crossfire coupe, the audacious Crossfire Roadster combines the Chrysler brand's stunning design with proven engineering leadership. Arriving in dealerships this spring, the Crossfire Roadster completes Chrysler's head-turning collection of convertibles, which include the new PT Cruiser and the best-selling Sebring Convertible.

Jeep Leadership in Off-Road Capability Expands with New Jeep Unlimited

Despite a number of new entries in the hotly contested sport utility market, sales of the Jeep Wrangler -- the icon of the brand -- grew by nine percent to 70,093 units in 2003, compared with 64,351 units in 2002. Last year marked the first time since 2001 that annual sales of Wrangler surpassed 70,000 units. Grand Cherokee sales were down seven percent to 207,479 units (224,233 in 2002). Jeep Liberty sales were off by five percent, 162,987 units last year compared with 171,212 vehicles sold in 2002. The Jeep brand had total sales of 440,559 vehicles in 2003, a four percent decline compared with 2002, when 459,796 Jeep vehicles were sold.

"With two new vehicles on the way, 2004 is the year that we reconfirm Jeep's off-road leadership position. In addition, Jeep vehicles will have enhanced on-road capability and reach new levels of comfort and refinement," said Zetsche.

Jeep -- the original family of off-road vehicles -- expands its line-up in April with the launch of the all-new 2005 Jeep Wrangler Unlimited. With a wheelbase that is 10 inches longer than the current model, the Jeep Wrangler Unlimited will also be 15 inches longer, have an additional 13 inches of cargo space and an additional two inches of second row leg room. Also new this year is the all-new Jeep Grand Cherokee. Among its many new features is the optional HEMI engine. Meanwhile, the 2005 Liberty and Liberty Renegade will be freshened this year, and come available with a 2.8-liter common rail diesel engine.

Dodge Truck Strength Will Team with New 2005 Magnum Passenger Car

Dodge division total sales were down slightly (three percent), or 1,223,302 units compared with 1,264,782 in 2002, due to lower sales for Neon, Stratus, Intrepid, Dakota, Caravan and Ram Van/Wagon. Dodge truck sales were up 1 percent, led by a record-setting performance by the Ram pickup truck. Ram sales of 449,371 units were the best ever for any year, surpassing the previous record of 428,930 units sold in 1999. Last year's sales were also 13 percent more than 2002, when 396,934 units were sold. Ram had a record-setting fourth quarter of 115,222 sales, beating the previous fourth quarter record of 111,178 units, set in 1998. Dodge Viper sales of 2,103 units surpassed the previous record of 1,926 units, set in 1994. First year sales for Sprinter Van were 1,941 units.

Also achieving success was the all-new 2004 Dodge Durango. It is seven inches longer, three inches taller and three inches wider than the model it replaces, but delivers improved fuel efficiency across its new three-engine line-up, one of which is the HEMI. Sales of 108,010 units were up one percent over 2002. Set to bolster the Chrysler Group's passenger car line-up this spring is the all-new 2005 Dodge Magnum, the new shape of American muscle. The rear-wheel-drive Magnum comes available with the HEMI engine. The Magnum and Chrysler 300 are the follow-ons to the discontinued front-wheel-drive "LH" sedans: the Dodge Intrepid, Chrysler Concorde, Chrysler LHS and Chrysler 300M. More than two million LH vehicles were sold from 1992 through 2003.

Available later in the year is the Dodge Dakota, a real mid-size pickup truck that will have the only V-8 engine in its class.

"Following a performance that did not meet expectations in the first half of 2003, we made significant strides throughout the year toward fundamentally transforming our company into a world-class competitor," said Zetsche. "2004 will be an exciting year for the Chrysler Group. We'll introduce nine new products and in addition, have four significant product renewals. This is the year we go from playing defense to offense in the market."

In the Asia-Pacific region, Chrysler Group sales were up 36 percent to 28,000 units, led by China, where sales more than doubled, from 5,187 vehicles in 2002 to 12,754 units last year. Total international sales in 2003 were down five percent, 166,689 units versus 176,223 units.

  Overview of Mercedes Car Group and Chrysler Group sales in 2003

                                     2003           2002    Change in %
  Mercedes Car Group            1,215,000       1,232,300         - 1.4
  of those, Mercedes-Benz*      1,091,500       1,110,000         - 1.7
  smart                           123,500         122,300         + 1.0
  Chrysler Group                2,607,000       2,744,000         - 5.0
  DaimlerChrysler passenger
   vehicles
                                3,822,000       3,976,300         - 3.9

  * incl. Mercedes-Benz AMG and Maybach

NOTE TO EDITORS: Additional information and news from DaimlerChrysler is available on the Internet at: www.media.daimlerchrysler.com