Metaldyne and DaimlerChrysler Sign Joint Venture Agreement At New Castle Machining and Forge

PLYMOUTH, Mich. and AUBURN HILLS, Mich., Dec. 9, 2002; Metaldyne Corporation and DaimlerChrysler Corporation have signed an agreement to form a joint venture to operate the Chrysler Group's New Castle (Ind.) Machining and Forge facility. Metaldyne will oversee the daily operations, while the Chrysler Group will hold a majority interest in the venture.

"This joint venture positions us to be the recognized leader in the integration of chassis systems for our global automotive OEM and Tier One customers," said Timothy Leuliette, Metaldyne's Chairman, President and CEO. "It is Metaldyne's commitment to achieve long-term growth at New Castle Machining and Forge by delivering value-added chassis solutions through product innovation, operational excellence and a laser-focus on exceeding our customer's expectations. As a corporate citizen, we look forward to becoming actively engaged in the New Castle area's community affairs."

"The ultimate goal of this agreement is to secure a long-term future for New Castle Machining and Forge," added Chrysler Group President and CEO Dieter Zetsche. "We have said all along that any agreement must meet two requirements: That it makes good business sense, and that it makes good 'people sense.' This joint venture meets both those criteria, and will lead to a bright future for the facility, its employees, and the community of New Castle."

Employees at the facility are represented by the United Auto Workers Local #371, the International Association of Machinists Lodge D.S. 120 and the Security Police Fire Professionals of America Local #133.

The joint venture will be known as NC-M Chassis Systems, LLC. Metaldyne will hold 40 percent of common stock, while the Chrysler Group will hold 60 percent of common stock. Current employees will continue to be Chrysler Group employees, and systems support and control processes will remain unchanged. Terms of the agreement are subject to customary approvals.

The New Castle Machining and Forge plant manufactures suspension, engine and transmission components for Chrysler, Jeep® and Dodge vehicles, and employs approximately 1,300 people. The plant operates in a 1.1 million- square-foot facility, and will complete a 500,000-square-foot facility addition in 2003 where new components for the Chrysler Group will be produced.

About Metaldyne

Metaldyne is a leading global designer and supplier of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications including engine, transmission/transfer case, wheel-end and suspension, axle and driveline, and noise and vibration control products to the motor vehicle industry. The company serves the automotive segment through its Chassis, Driveline & Transmission, and Engine Group.

Headquartered in Plymouth, Mich., Metaldyne's annual revenues exceed $1.4 billion. The company employs nearly 8,500 employees at over 50 facilities in 11 countries.