Chrysler Group Creates New Distribution Company in Taiwan

TAIPEI, Taiwan, March 1 -- Today DaimlerChrysler Taiwan (DCT) signed a Memorandum of Understanding with China Motor Corporation (CMC) to create a new company in Taiwan to manage sales and distribution of Chrysler and Jeep(R) brand vehicles for the local market. The new company, named "Chrysler Group Taiwan Sales Ltd.," is a joint venture between DCT and CMC.

In December, the Chrysler Group signed contracts with CMC to manufacture Chrysler Town & Country minivans at CMC's Taiwan facility for the local market.

"Establishing a new sales and distribution company in Taiwan is a natural extension of our recently announced plans to manufacture the world's most popular minivan there," said Dr. Dieter Zetsche, Chrysler Group President and CEO. "The Chrysler Group is in the midst of the greatest product offensive in our history, and it's important that the retail and delivery experience meets the same world-class standards as the vehicles we are producing. We believe that with the help of our partners at CMC we will continue to delight our customers in Taiwan. This new company is part of our growth strategy for Asia, and we believe there is tremendous potential there for the brands of the Chrysler Group moving forward."

"This is another significant step toward realizing DaimlerChrysler's overall strategy for the region," said Dr. Ruediger Grube, Member of the Board of Management of DaimlerChrysler AG responsible for Corporate Development and China Operations. "Establishing a new distribution company for the Chrysler Group in Taiwan will enhance our existing car and commercial vehicle business there, and further demonstrates our long-term commitment to the region."

"The creation of a new company between DaimlerChrysler and CMC to manage distribution of Chrysler Group products in Taiwan symbolizes the expansion of the cooperation between CMC and DaimlerChrysler, and it is also proof of the long-term potential of the vehicle market in Taiwan," said Mr. Kai Tai (Kenneth) Yen, Vice Chairman of CMC.

The Chrysler Group, which produces and markets Chrysler, Jeep(R) and Dodge brand vehicles, increased worldwide annual sales by 9 percent in January, marking its tenth consecutive month of year-over-year sales gains. The company is undergoing its most ambitious product offensive, launching 25 new vehicles in three years. Its product lineup includes: the award winning Chrysler 300C, industry-leading Stow 'n Go(TM) minivans, Dodge Durango, Dodge Ram and Dakota pickup trucks and the venerable Jeep Grand Cherokee and Wrangler, among many others.

China Motor Corporation was established in 1969 and is based in Taiwan. It has multiple subsidiaries and affiliates involved in automotive distribution, parts manufacturing and related services. It is a publicly traded subsidiary of the Yulon Group.