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DaimlerChrysler Chairman At the Automotive New World Congress

11 January 1999

DaimlerChrysler Chairmen Robert J. Eaton and Juergen E. Schrempp At the Automotive New World Congress

             DaimlerChrysler Integration Forging Full-Steam Ahead
              Revenues to Increase to Approximately $180 in 2001

    DETROIT, Jan. 11 -- DaimlerChrysler Chairman Juergen E.
Schrempp made clear that the integration within the recently merged company is
making good progress and that important milestones have already been achieved.
    "We have completed our merger in record time and in excellent spirit.
While others are wondering what to do next, our deal is done and unique.  We
can forge full-steam ahead with the integration," Schrempp said in a speech at
the Automotive News Congress in Detroit, on January 10, 1999.
    DaimlerChrysler Chairman Robert J. Eaton predicted  further consolidation
in the automotive industry in his remarks.  "Depending on how you count, there
are about 40 auto companies in the world today, but only about 10 make money
and perhaps half of those earn back their cost of capital," said Eaton.  "The
number of car producers will get smaller -- that's a certainty."  He said the
industry will have overcapacity of about 22 million vehicles in 1999.
    Schrempp emphasized that in the first 55 days since the birth of
DaimlerChrysler, the Management Board has already made some important
decisions.  "Amongst others, we have announced the top management team,
defined the global sales and marketing organization and brand management
guidelines, set up our procurement strategy, and kicked off a company-wide
management development program," he said.
    Addressing the integration process, Schrempp admitted that differences in
style exist between the European and the U.S. parts of the DaimlerChrysler
group, but added: "I see great strength in our diversity of experience and
skills, because the best ideas often germinate in the warm soil of
constructive conflict.  And we have already demonstrated what can be done when
Americans and Germans team up.  In our intense post-merger integration
process, we are not deciding whether a German or American approach should
prevail.  The teams are defining best practice that will shape a fantastic new
company and give DaimlerChrysler a continuous competitive edge."
    The key to the future success of DaimlerChrysler is in its superior,
innovative products, as Schrempp explained in his Detroit speech.  In 1998
alone, the company had invested $16.5 billion in the future of
DaimlerChrysler, equaling $ 45 million per day.
    "In the past, we had to sell on to our competitors many of the
technological advances generated by Mercedes-Benz in order to recover our
investment.  Now, as DaimlerChrysler, we will not have to do this.  Instead,
we will eventually incorporate them in our volume brands, giving us a major
competitive advantage in all market segments," Schrempp said.
    In his speech, Robert J. Eaton focused on the economic environment of the
automotive industry.  According to his forecast, worldwide vehicle sales will
remain on the same level as in 1998.  Eaton expects U.S. vehicle sales of
between 15 and 15.5 million in 1999, European sales at 16 million in Western
Europe and 2.4 million in the East, new vehicle sales in Latin America at 3.6
million, and a mixed picture for the different Asian regions.