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DaimlerChrysler to Start With a New Organizational Structure

4 November 1998

DaimlerChrysler to Start With a New Organizational Structure

    AUBURN HILLS, Mich. and STUTTGART, Germany, Nov. 3 --
Chrysler Corporation and Daimler-Benz today took another
step in defining how the merged DaimlerChrysler will be run immediately after
Day One by announcing the organizational structure of the new company to its
employees.
    "We managed to get the merger to Day One in a record time of less than six
months," said Juergen E. Schrempp and Robert J. Eaton, Chairmen of the
Management Board of DaimlerChrysler.  "In the next few weeks, we will begin
the integration process at DaimlerChrysler with the same energy and speed.
That's why we have now decided on senior positions on the level below the
management board.  We are prepared for a rapid integration phase."
    The new organizational structure also reflects the thinking and philosophy
of the combination being a merger of equals.  "We have said from the beginning
that this was a merger of equals," said Schrempp and Eaton.  "This is
reflected in the composition of the board and equally in the senior management
positions that report directly to the board.  It also reflects the fact that
DaimlerChrysler will be managed from two operational headquarters in Auburn
Hills and Stuttgart."
    The merger of Daimler-Benz and Chrysler will create the third largest
automotive company in the world with strong activities in transport systems
and services.  On a pro-forma basis, both companies achieved sales revenues of
DM 299 billion in 1997 and have a workforce of about 430,000 employees.  Both
companies reported record profits for the first nine months of this year.
Shareholders of both Daimler-Benz and Chrysler are supporting this merger with
overwhelming votes.  Until November 6, Daimler-Benz shareholders can tender
their shares for exchange into DaimlerChrysler shares.  By October 26, 97
percent of the Daimler-Benz equity was offered for exchange, a ratio that both
surpasses the precondition for the merger by far and qualifies for the
favorable accounting method, "pooling of interests."