---

Chrysler Corporation Upgrades Neon Plant

5 February 1998

Chrysler Corporation Upgrades Neon Plant

    CHICAGO, Feb. 5 -- Chrysler Corporation President
Thomas T. Stallkamp cited the company's recent $90 million investment at the
Belvidere Assembly Plant in Belvidere, Illinois as "further proof that
Chrysler is committed to the small-car market."  Stallkamp made his remarks
earlier today at the Chicago Auto Show.
    The plant, home of the Dodge and Plymouth Neon, is Chrysler's only small
car production facility in the United States.  Neon production at Belvidere
has reached 968,000 units since the vehicle was introduced in 1993.
    In December, a new $45 million Verson Type A+ stamping press began
operation at the satellite stamping facility which adjoins the main assembly
plant.  The installation of the new stamping press, along with the
introduction this past summer of a new $45 million Powder Anti-Chip paint
system, brings the investment figure to $90 million.
    "Everyone at Belvidere feels very positive about these new investments
because it clearly shows Chrysler's confidence in the plant and its workforce
for future production," said Ron Czar, Belvidere Assembly Plant Manager.
    The Verson Type A+ stamping press is the largest manufactured in the
United States.  The press itself accounted for $35 million of the $45 million
project cost.  Installing the press -- the size of 12 locomotives -- required
an additional 60,000 square feet to the plant at a cost of $10 million.
Initially, the new press will be used for stamping front and rear Neon doors
and later for stamping full side-aperatures and fenders for a future model.
    The new $45 million Powder Anti-Chip paint system allows for improved chip
resistance, durability and overall quality and finish on all vehicles produced
at the Belvidere plant.  A building addition of 72,000 square feet was
required for the $45 million investment that upgraded Belvidere's paint system
to state-of-the-art paint technology.
    This Powder Anti-Chip process, coupled with the water-borne base coat
system already in place, make Belvidere one of the most environmentally-
friendly automobile plants in the nation.  These new paint processes have
greatly reduced the VOC (volatile organic compounds) emissions and waste
by-products associated with earlier paint systems.
    The Belvidere Assembly Plant came on-line in 1965 with production of
full-sized station wagons.  Production of the Dodge, Plymouth and
internationally-sold Chrysler Neons began in November 1993.  The plant
presently employs 3,480 people and produces approximately 1,064 Neons daily.

SOURCE  Chrysler Corporation