DaimlerChrysler and Behr Sign Agreement for Sale of Dayton Thermal Products

AUBURN HILLS, Mich., and STUTTGART, Germany, Feb. 11

-- Chrysler Group signed an agreement with Behr America, Inc., based in Troy, Michigan, to sell its Dayton Thermal Products (DTP) component operation in Dayton, Ohio. Behr will assume operational responsibility while Chrysler Group will maintain a minority interest for two years to assist in the transition. Over the next three to five years, Behr plans to expand the portfolio of products manufactured in the Dayton facility. ``The acquisition of Dayton Thermal is a significant milestone in our company history,'' explained Horst Geidel, Chairman of the Board of Behr America, Inc. and Chief Executive Officer of Behr GmbH & Co. ``With DTP, we will exceed a market share of 10 percent for climate control and engine cooling products in the U.S. Thanks to our increased global presence, this new plant in the Behr network will also strengthen our position in competition for new customers.''

As a result of the DTP joint venture, Chrysler Group will retain a minority ownership for the first two years. Behr will have operational responsibility for the facility while Chrysler Group will continue to work with Behr to assure the successful transition of the business over the two- year time frame. After that time, Behr will assume full ownership.

``As part of our turnaround plan, we've said that if we were to sell a component operation, it must meet two requirements -- that it makes good business sense and it makes good people sense,'' said Chrysler Group President and Chief Executive Officer Dieter Zetsche. ``The agreement with Behr is a formula that will contribute to a bright future for Chrysler Group, the employees and union of DTP and the city of Dayton.

``Specifically for the Chrysler Group, the sale of DTP enables us to dedicate even more resources towards what we do best -- focusing on our core business of creating innovative cars and trucks that set us apart from the competition.''

Behr's new Dayton site already has substantial orders in the pipeline. Behr will supply cooling modules for different U.S. customers.

``We needed additional plant capacities for our new business,'' said Hans Lange, Behr America President. ``Dayton has a qualified, motivated workforce, and we have all the reasons to believe that our relationship with the unions will be constructive. With Behr bringing leading technology to the table, we have all the ingredients for long-term growth and job security.''

``The I.U.E.-C.W.A. is committed to help make the transition to Behr a success,'' said Mike Bindas, President, I.U.E.-C.W.A. District #7. ``The union leadership recognizes that Behr provides an important opportunity to aid job stability in Dayton and, in the long term, help secure employment for members of the Dayton Thermal Plant by being part of Behr America's core business operations.''

DTP, with its sales volume of roughly US$ 600 million (approximately EUR 660 million), will immediately increase Behr's total Group sales of US$ 2.0 billion in 2001 (2001: approximately EUR 2.2 billion) by 30 percent. The approximately 2,000 Dayton staff will bring the number of Behr employees in the U.S. to 3,000, and the total in the Behr Group will increase from 13,700 to 15,700.

``The current supply agreement with DaimlerChrysler combined with the fact that Dayton is a facility for high-volume production for passenger vehicles will accelerate the expansion of our U.S. customer base,'' said Lange.

The transaction is expected to close prior to March 31, 2002, and is subject to receiving all required governmental approvals.

Dayton Thermal Products is a production plant manufacturing heating, ventilation and air conditioning modules, evaporators, engine cooling modules, vapor canisters, PCV valves and service parts. These products are found in a variety of Chrysler Group models, such as the Chrysler and Dodge Neon, Chrysler PT Cruiser, Jeep® Grand Cherokee and Dodge Ram.

The 1.1 million square foot facility was built in 1915 with a major addition in 1969. Employees at Dayton Thermal Products are represented by I.U.E.-C.W.A. Locals #775 and #758 (International Union of Electronic, Electrical, Salaried, Machine, Furniture Workers and Communication Workers of America).

Behr America posted sales of roughly US$ 230 million (approximately EUR 260 million) in 2001, with its existing four sites in Texas, South Carolina, South Dakota and Michigan employing around 1,000. These facilities produce engine cooling modules and components, visco fan assemblies and air conditioning systems for commercial vehicles, special vehicles as well as U.S. produced European cars.

Information on the company: Behr America's parent company, Behr GmbH & Co. is a system partner for the international automobile industry. A specialist for vehicle air-conditioning and engine cooling systems, the Behr Group is one of the leading manufacturers and suppliers of original equipment for passenger and commercial vehicles. Group sales in the 2001 business year amounted to approximately US$ 2 billion (EUR 2.2 billion). At the end of 2001, Behr employed 13,700 staff in 25 production facilities in Europe, North and South America, South Africa and India.