DaimlerChrysler Canada and the Canadian Auto Workers Reach Agreement On Voluntary Incentive Program for Retirements

    AUBURN HILLS, Mich., Feb. 15 DaimlerChrysler Canada and
the Canadian Auto Workers (CAW) today announced an agreement on a voluntary
incentive program for CAW represented retirement-eligible employees as part of
the company's turnaround plan.
    CAW represented employees eligible for this program must meet one of the
following criteria:

    *  Age 60 with at least 10 years of pension credited service;
    *  Attained 30 or more years pension credited service; and,
    *  Attained age 55, but not 60, and whose combined years of age and
       pension credited service total 85 points or more.

    The total value of the incentive to each eligible employee will be
*$C52,500 of which:

    *  $C16,000 to be used toward the purchase of a selected Chrysler Group
vehicle;
    *  $C26,000 will be paid as a one-time cash payment; and,
    *  $C10,500 as an additional lump-sum to offset the tax implications with
the vehicle incentive

    "Under very difficult circumstances affecting nearly 3,000 DaimlerChrysler
CAW members, the union was successful in negotiating an early retirement
package that will encourage senior people to retire and will go a long way
towards protecting the jobs of junior workers," said CAW president Buzz
Hargrove.
    "We are pleased to announce this special voluntary program agreement
reached through negotiations with the Canadian Auto Workers union," said Phil
Bezaire, Vice President, Human Resources, DaimlerChrysler Canada.  "Our
efforts have been to minimize the impact of potential layoffs by developing a
program that will allow us to adjust our workforce and operations so that
capacity is more in line with the current market."
     The acceptance period for this incentive program for retirees will vary
depending on the timing of the actions at each of the affected locations.