DaimlerChrysler Commercial Vehicles Division restructures truck business

- New structure more closely aligned to strategy - Truck development units consolidated under the same management - Powersystems Unit to be wound up - Business units' regional responsibilities expanded - Dr. Eckhard Cordes, Head of DaimlerChrysler Commercial Vehicles: "The new organisational structure will help us to succeed in pushing ahead with our strategic initiative 'Turning Scale into Profit'."

STUTTGART, Germany, June 30 -- DaimlerChrysler's Commercial Vehicles Division will be restructuring its Truck Unit as of January 1, 2004. The new organisational structure will be more closely aligned to the Commercial Vehicles Division's strategic aims. Consequently truck development will be consolidated under one management team, the Powersystems Unit will be wound up and regional responsibilities for truck production will be expanded. The objective is to make even more effective use of existing synergy potential.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020212/DCXLOGO )

As Dr. Eckhard Cordes, Member of the Board of Management and Head of DaimlerChrysler Commercial Vehicles, points out, "The future organisation of our division is a crucial factor if we are to ensure that the strategic initiative 'Turning Scale into Profit' is pursued with increasing success."

It is anticipated that the potential synergy will equate to around two thirds of the material costs of a truck. This will be due largely to the standardisation of major components -- the engines, transmission and axles -- but the chassis and cab modules also offer promising prospects.

The 4P organisation - the new central development unit

In order to make more effective use of this not insignificant synergy potential, the various truck development units, which are currently managed on a decentralised basis, will be grouped globally under the same management. This will not only tie the existing development units more closely to one another, but -- looking to the future -- will also allow for opportunities for cooperation with the Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and possibly other partners in Asia.

Dr. Gerald Weber, currently responsible for the Powersystems Unit, will take over the management of the newly created development unit, the 4P Organisation, which will encompass the following four functional areas: product planning, product development, procurement and production strategy and planning.

According to Dr. Eckhard Cordes, "The new development unit brings together the expertise of all of the truck development units within the Group and synchronises their activities. Global networking will allow the best ideas and concepts to prevail, helping to prepare the Commercial Vehicles Division for the challenges and opportunities which the future will bring."

  Powersystems Unit wound up, business units' regional production
  responsibilities expanded

As a result of the strategic aims, third-party trade in major components is being discontinued, and in future -- apart from a few isolated exceptions -- only internal brands will be supplied. The Powersystems Unit is therefore being wound up and the plants producing major components are being assigned to the regional vehicle units.

Dr. Klaus Maier, currently Head of the Business Unit Trucks Europe/Latin America with responsibility for the Mercedes-Benz brand will additionally be put in overall charge of the German component plants. Similarly, Rainer Schmuckle, Head of the Business Unit Trucks Nafta with responsibility for the brands Freightliner, Sterling and Western Star will also be given responsibility for the component plants in the US.

Dr. Eckhard Cordes added that "The structure of regional units with strong brands has proved in the past to be the key to our success."

Speaking of the completed changes, he went on to say "Together we can be proud that we are capable of making these important structural changes within our Division. The entire team contributed some outstanding ideas during the course of the constructive dialogue process and will now press ahead with ensuring the success of the new organisational structure."

The business units Mercedes-Benz Vans, DaimlerChrysler Buses and Coaches and DaimlerChrysler Off-Highway are already structured to meet the challenges of the future and they will therefore be unaffected by the changes.

This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project" and "should" and similar expressions identify forward- looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates and interest rates; introduction of competing products; increased sales incentives; whether the Chrysler Group, Freightliner, and Mitsubishi Motors can implement their turnaround plans; and decline in resale prices of used vehicles. If any of these or other risks and uncertainties occur (some of which are described under the heading "Risk Factors" in DaimlerChrysler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission), or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

Internet site

Additional information and news from DaimlerChrysler is available on the internet at: www.media.daimlerchrysler.com .

Photo: http://www.newscom.com/cgi-bin/prnh/20020212/DCXLOGO