DaimlerChrysler in Line With Earnings Targets in 2001

STUTTGART, Germany and AUBURN HILLS, Mich., Jan. 4 -- DaimlerChrysler (stock exchange code: DCX) is in line to achieve the targeted earnings objectives for 2001 despite increasingly difficult market conditions during last year. As reconfirmed with the Q3 earnings announcement in October 2001, Operating Profit (excluding one-time effects) in 2001 is expected to be around $ 1.1 billion. Group revenues are anticipated to be of the order of $ 134 billion (2000: $ 144 billion). Adjusted for changes in the scope of consolidation, this resulted in a decline of around 2%. These figures were announced by the company on the occasion of the upcoming North American International Auto Show (NAIAS) in Detroit.

Last year's highlight was record sales of the passenger car brands Mercedes-Benz and smart. At the same time DaimlerChrysler also confirms that the turnaround programs at the Chrysler Group and at Freightliner are on track. The Chrysler Group has significantly exceeded the target set for the cost reduction program and expects to achieve the earnings target announced in February 2001, despite the difficult general economic development which could not have been foreseen.

Development of Revenues and Sales in the automotive business

According to preliminary figures DaimlerChrysler sold a total of some 4.45 million vehicles against 4.75 million in the previous year. In the Mercedes-Benz Passenger Cars and smart Division, Revenues exceeded the record level of the previous year by around 7%, presumably reaching over $ 40.9 billion. A total of approx. 1.225 million vehicles of the Mercedes- Benz and smart brands were sold, thus exceeding the high figure of the previous year by a further 6%.

In 2001 the smart brand established itself in its segment. Against the previous year, sales increased by 8% to over 110,000 units. For the first time, Revenues totalled approx. $ 0.9 billion.

The Chrysler Group shipped just under 2.74 (2000: 3.05 ) million vehicles of the Chrysler, Dodge and Jeep brands to dealers worldwide. Accordingly, Revenues at the Chrysler Group are anticipated to decline to about $ 55.2 billion.

The difficult market situation in North America and in Turkey, western Europe and Latin America were also key factors in the development of the Commercial Vehicles Division during 2001. At around 492,000 units, sales were under the record figure of the previous year (549,000). The van business developed in a particularly positive manner, with both Revenues and Sales increasing. Revenues from this division are anticipated to decline by around 5% to approx. $ 24.9 billion.

Services

The development of business with finance and mobility services which are combined under the umbrella of DaimlerChrysler Services was characterized by the difficult market conditions in North America. On a like-for like basis (that is without IT services), Revenues at DaimlerChrysler Services are anticipated to increase by 13% to $ 15.1 billion.

MTU Aero Engines

MTU Aero Engines generated revenues of approx. $ 2.1 billion. This was approx 12% more than in the previous year.

Mitsubishi Motors Corporation

In the first half of the financial year (April 1 until September 30), Mitsubishi Motors Corporation (MMC) -- DaimlerChrysler stake: 37.3 % - sold 658,000 vehicles (previous year: 675,000) vehicles. Revenues remained almost unchanged against the previous year at JPY 1,533 billion (2000:JPY 1,543 billion). MMC is continuing to make good progress with its turnaround program and is maintaining its objective of posting a breakeven result in the financial year ending in March 2002.

EADS

Despite the challenges of the market, the European Aeronautic Defence and Space Company (EADS), in which DaimlerChrysler holds a 33% participation, expects to have achieved revenue growth of 20% against the previous year and the earnings target of an EBIT (Earnings before interests and taxes) improvement of 15% in 2001. There are already almost 100 purchase commitments for the new Airbus A380.