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Chrysler and Honda Announce End to Jeep(R) Distribution Agreement

12 September 1997

Chrysler and Honda Announce End to Jeep(R) Distribution Agreement

    TOKYO, Sept. 12 -- Chrysler Japan Sales Ltd. and Honda Motor
Co. announced that they have mutually agreed to terminate the
distribution agreement between the two companies at the conclusion of the 1997
model year.  Beginning with the 1998 model year, Chrysler will be
the sole distributor of Jeep(R) vehicles in Japan.
    Under the termination agreement, Honda dealers in Japan will no longer
sell new Jeep vehicles after the inventory of 1997 model year vehicles is
depleted.  Honda dealers will continue to service the needs of their Jeep
customers, including warranty repairs and parts supply.
    The termination agreement is based on Chrysler's strategy of providing
increased value to its current and future dealers by providing an exclusive,
full line of vehicles.  Honda understands the value of such a strategy and
agrees with the decision from a long term point of view.
    "We greatly appreciate the efforts of Honda Motor Co. in selling and
servicing our Jeep products over the past eight years," said Robert E. Bowen,
president of Chrysler Japan Sales.  "The time has come, however, for us to
increase the value of the Chrysler franchise for our dealers by providing them
with products that are exclusive in the market.  By doing so, we believe we
will attract many new dealers who wish to sell our products and, long term,
increase our sales volume in Japan."

    History
    1990   Honda signed with CJSL as a sub-distributor of Jeep products
           through its Primo dealer network (August)

    1991   Honda established Foreign Import Vehicle Division (November)

    1992   Honda established PDI operations in Takenazawa with 60 units per
           day capacity

           Honda expanded its sales network to include Clio and Verno
           channels

           Cherokee (1993 MY) with right-hand drive introduced

    Jeep Sales by Honda
    1990          121
    1991          432
    1992          808
    1993        3,747
    1994        9,764
    1995       11,098
    1996       10,368
    1997*       4,628
    * through August

SOURCE  Chrysler Corporation