DaimlerChrysler Announces Chrysler Group Turnaround Plan and DaimlerChrysler Group Performance Outlook through 2003

    -- Chrysler Group is expected to return to profitability in 2002

    -- Increasing annual benefits of the restructuring measures at Chrysler
       Group; 7.2 billion euros ($8.1 billion) by 2003

    -- Restructuring charge of up to 4.0 billion euros ($3.9 billion);
       3.0 billion euros ($2.8 billion) in Q1 2001

    -- DaimlerChrysler's Operating Profit Targets* (excluding one-time
       effects):
       --  in 2001 between 1.2 billion euros and 1.7 billion euros
       --  in 2002 between 5.5 billion euros and 6.5 billion euros
       --  in 2003 between 8.5 billion euros and 9.5 billion euros

    STUTTGART, Germany and AUBURN HILLS, Mich., Feb. 26 DaimlerChrysler today announced at the annual press conference in
Sindelfingen, Germany, the company's 2001-2003 Turnaround Plan for the
Chrysler Group and the overall company performance outlook for 2001 through
2003.  The Turnaround Plan anticipates that the Chrysler Group will return to
profitability in 2002.

    * Assumptions: Exchange rate 2001: 1 euro = $0.93; 2002/2003 strengthening
      of the euro against the US$ expected stable economic developments in our
      most important markets, continuation of relatively high demand in most
      key automotive markets during 2001-2003, weakening demand in North
      America (approximately 16 million vehicles annually in the USA in
      2001-2003)

    The Turnaround Plan for Chrysler Group is comprised of a number of
measures aimed at cutting costs and boosting revenues.  It is designed to
improve financial performance and market position, and to lay the foundation
for sustained positive results in the future.  The plan involves six specific
action areas.  Four focus on reducing costs; material management; plant
management; fixed cost management and restructuring operations.  Two focus on
enhancing revenues:  revenue management and product strategy.
    The Chrysler Group is renewing more than two-thirds of its products
between 2000 and 2003.  In fact, as it completes the launch of the all new
Jeep(R) Liberty (Jeep(R) Cherokee in Europe) and Dodge Ram models this year,
the average age of the Chrysler Group vehicle line-up will be just 2.1 years
-- giving it the youngest product range of any U.S. vehicle manufacturer.
    Several key initiatives have already been announced since December 2000.
These include an overall 15 percent, reduction in material costs; a reduction
in the workforce of 26,000 -- or 20 percent -- over three years; the idling of
six plants through 2003; and a revenue-enhancing plan for dealers.
    In total, the Turnaround Plan aims to generate additional benefits through
annual savings and profit improvements of 3.3 billion euros ($3.1 billion) in
2001, rising to 5.2 billion euros ($5.7 billion) in 2002, and 7.2 billion
euros ($8.1 billion) in 2003.
    For the year 2001, the Chrysler Group anticipates an operating loss
between 2.2 billion euros ($2.0 billion) and 2.6 billion euros ($2.5 billion).
The implementation of the planned measures will lead to a restructuring charge
of around 3.0 billion euros ($2.8 billion) in 2001 and will be booked in the
first quarter.  In the following years, additional charges of up to
1.0 billion euros ($1.1 billion) could be necessary.  Chrysler Group plans to
return to modest profitability in 2002; an Operating Profit of more than
2 billion euros (more than $2 billion) is expected in 2003.
    The Turnaround Plan includes a number of financial and operative
performance milestones:

    By mid-year 2001:
      --  Workforce reduction of 12,000 employees; and,
      --  Launch of the Jeep(R) Liberty.

    By year-end 2001:
      --  Total workforce reduction of 19,300 employees;
      --  Reduction in material costs by more than five percent;
      --  Major plant adjustments (e.g. elimination of shifts and change
          of line speed), including closure of the Toluca Transmission Plant;
      --  Launch of the new Dodge Ram; and,
      --  Operating loss in the range of 2.2 - 2.6 billion euros
          ($2.0 - $2.5 billion).

    By year-end 2002:
      --  Launch of the new Dodge Viper;
      --  Further plant cost reductions and additional workforce reduction
          of 4,200 employees; and,
      --  Breakeven for the full year.

    By year-end 2003:
      --  Achieving the total workforce reduction of 26,000 employees;
      --  Achieving the full 15% reduction in material cost compared to end
          of 2000;
      --  Launch of the new Dodge Durango, and a medium-duty pickup truck;
          and,
      --  Operating profit of more than 2.0 billion euros (more than
          $2 billion).

    DaimlerChrysler Group Outlook through 2003
    DaimlerChrysler expects a 2001 operating loss in the region of 3.8 billion
euros to 4.3 billion euros.  Excluding one-time effects of 3.0 billion euros
related to the restructuring measures at the Chrysler Group and around
400 million euros (at equity consolidation) as a one-time charge related to
the Mitsubishi Motors Turnaround Plan, an operating loss of between
0.8 billion euros and 1.0 billion euros is expected.
    For the whole year of 2001, operating profit -- adjusted for one-time
effects -- is expected to be between 1.2 billion euros and 1.7 billion euros.
    In 2002, the company is working toward an operating profit in the range of
5.5 billion euros and 6.5 billion euros, and a further increase in operating
profit in 2003, to a level of between 8.5 billion euros and 9.5 billion euros.
    These forecasts are based on the assumption that economic developments in
the key markets will remain generally stable, and that vehicle demand in these
markets will continue at the levels of recent years.  In the USA, it is
assumed that demand for passenger cars and light-duty trucks will be
approximately 16 million units annually.

    This press release contains forward-looking statements based on beliefs of
DaimlerChrysler management.  When used in this release, the words
"anticipate," "believe," "estimate," "expect," "intend," "plan," and "project"
are intended to identify forward-looking statements.  Such statements reflect
the current views of DaimlerChrysler with respect to future events and are
subject to risks and uncertainties.  Many factors could cause the actual
results to be materially different, including, among others, changes in
general economic and business conditions, changes in currency exchange rates
and interest rates, introduction of competing products, lack of acceptance of
new products or services and changes in business strategy.  Actual results may
vary materially from those projected here.  DaimlerChrysler does not intend or
assume any obligation to update these forward-looking statements.