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Insight on Possible Chrysler/Benz Merger from Motortrend

7 May 1998

MOTOR TREND Editor Offers Insight on Possible Chrysler/Benz Merger
    LOS ANGELES, May 7 -- MOTOR TREND Editor C. Van Tune says
that the potential merger between Chrysler Corporation and Daimler
Benz represents a landmark move by both companies.  It would
create the largest and most significant alliance between two of the leading
automotive industry forces, represented in both North America and Europe.
    According to Van Tune, talks alone have seemed to heighten Chrysler to a
new level as the American company would reap many benefits from the possible
merger.  Besides the increase in status and technological advancements,
Chrysler would also profit from Benz's existing prominence in the European
market.  The most interesting question Van Tune poses is, "What will Benz gain
from the deal?"
    Van Tune says, "Benz could gain from Chrysler the significant insight into
the cost-efficiencies of manufacturing volume cars, such as the Mercedes A-
Class. In addition, and perhaps of greater interest, would be Benz's ability
to delve further into trucks and sport utilities."
    "Chrysler is world-renowned for its leading-edge styling, especially on
concept vehicles, as recently demonstrated with the debut of the Chronos at
the North American International Auto Show," Van Tune adds.  "The overall
design, both visually and mechanically, demonstrates Chrysler's interest in
creating a V-12 Mercedes type of vehicle."
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