DaimlerChrysler And General Motors Announce Ownership Restructuring Of New Venture Gear

FOR RELEASE: January 10, 2002

DaimlerChrysler And General Motors Announce Ownership Restructuring Of New Venture Gear

Auburn Hills / Detroit - DaimlerChrysler Corporation and General Motors Corporation have announced a planned ownership restructuring of New Venture Gear (NVG), the powertrain joint venture formed by the two companies in 1990.

Under the plan, DaimlerChrysler (DCC), which currently holds a 64% interest of the joint venture, would assume complete ownership of NVG. NVG would remain a separate company and continue to independently manage its business with GM and other customers. As part of the plan, GM will no longer be part of NVG, but will manage NVG's current facility in Muncie (Ind.), which produces transmissions, differentials, gears and other automotive components, as an independent business.

Following the restructuring, NVG's principal operations will include its current Syracuse (N.Y.) facility, which produces transfer cases, transaxles and other automotive components for DCC, GM and other customers. NVG will also continue to operate its Roitzsch facility in Germany, which is beginning production of transfer cases for various automotive customers.

Management, engineering and development functions at the Troy, Mich.-based headquarters will be restructured, as future plans are finalized.

# # #