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Chrysler Corporation Renews Joint-Venture in Egypt

4 November 1997

Chrysler Corporation Renews Joint-Venture in Egypt; Appoints New Managing Director of Chrysler Egypt

    AUBURN HILLS, Mich., Nov. 4 -- Chrysler Corporation
and Egypt's state-owned Arab Organization for Industrialization (AOI) today
renewed their joint venture assembly agreement, known as the Arab American
Vehicles Company (AAV).
    "We are very pleased to renew our joint venture with AOI.  Our partnership
over the past 10 years has been very productive and successful," said Edwin H.
Brust, General Manager of Latin America, Middle East and Africa Operations for
Chrysler, who was in Cairo today to sign the renewal contract with senior
officials of AOI.
    AAV, which currently assembles Jeep(R) Cherokee vehicles for sale in
Egypt, was originally established in 1977 as a joint venture partnership
between AOI and American Motors Corporation (AMC).  Chrysler Corporation
entered into the partnership in 1987, after it acquired AMC.  AOI owns
51 percent of AAV's shares, with the remaining 49 percent held by Chrysler
Corporation.
    Under the renewed agreement, which runs through 2002, both partners will
retain their equity positions and AAV will continue to assemble Jeep Cherokee
vehicles at its plant in Cairo, for distribution and sale by Chrysler Egypt.
    Chrysler also announced today the appointment of Alan L. Spencer, as the
new Managing Director of Chrysler Egypt.  Spencer succeeds Jatinder B. Singh,
who has served as Managing Director of Chrysler's operations in Egypt since
1995.  Spencer joined Chrysler Corporation in 1972 and was most recently
Director of Sales Planning and Business Operations in Chrysler Corporation's
China office.
    In his new position, Spencer will be responsible for representing
Chrysler's interest in AAV.  He will also direct the distribution, sales,
marketing, dealer development and customer service activities for all Chrysler
products in Egypt.
    "I look forward to continuing our long-standing AAV joint venture, which
has helped us make Jeep Cherokee the most popular sport utility in Egypt,"
said Spencer.  Chrysler Egypt currently has five retail outlets in the
country's major urban centers and plans to double that amount by the end of
1998.  The company expects to sell a total of 1,300 locally-assembled Jeep
Cherokees in 1997 and 1,500 in 1998.  Including sales of imported Neon sedans,
Voyager minivans and Jeep Grand Cherokee sport utilities, Chrysler projects
its total retail sales in Egypt will reach 1,700 units for 1997 and 2,300 in
1998.

SOURCE  Chrysler Corporation