---

Chrysler Reaches Agreement With the Louwman Group to Re-Acquire The Distribution Rights for its Products

8 July 1997

Chrysler Reaches Agreement With the Louwman Group to Re-Acquire The Distribution Rights for its Products

    BRUSSELS, Belgium, July 8 -- The Louwman Group and Chrysler
International Corporation today announced that they had reached an agreement
in principle to return to Chrysler its distribution rights in
Germany, the Netherlands and Belgium.
    In making the announcement, Evert Louwman, Chairman of the Louwman Group,
said, "During ongoing discussions with Chrysler on its strategy for future
growth in Europe, the Louwman Group concluded that the means to achieve the
long term goals would be best effected by the return of distribution
responsibilities to Chrysler.
    "Therefore, to assure the continued growth in Germany, the Netherlands and
Belgium, the Louwman Group plans to sell its dedicated companies -- Chrysler
Import Deutschland, Chrysler Import Holland, Chrysler Import Belgium and
Public Warehouse Europe -- to Chrysler International Corporation as operating
entities.
    "Our goals have always been to grow the Chrysler business in these
markets, provide for the well-being of our employees and dealers, and assure
service to Chrysler and Jeep(R) customers.  We have concluded that this
agreement is the way to achieve these objectives."
    In confirming the announcement, Timothy R. Adams, President, Chrysler
Europe, said, "The Louwman Group has done an outstanding job of representing
Chrysler in Germany, the Netherlands and Belgium since our re-entry into the
European market in 1987.
    "We look forward to working with these companies and the dealer network to
build on the foundation already established.  We agree that the acquisition of
the companies as they exist today will assure a smooth transition for everyone
involved, particularly the Chrysler and Jeep customers."
    The dealer network supporting sales and services of Chrysler and Jeep
products in Germany, the Netherlands and Belgium consists of 333 dealers.
Combined sales for the 1996 calendar year totaled almost 28,000 units.
    The acquisition is subject to the formulation of definitive agreements,
the approval of both companies' boards and appropriate regulatory authorities,
and where required, approval of employee councils.  It is expected to be
completed in the last quarter of this year.
    In the past 18 months, Chrysler has acquired distribution rights in
Austria, Argentina, Brazil, France, Italy and Japan.

SOURCE  Chrysler Corporation