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Mercedes-Benz Lenkungen and Siemens Join to Develop Steering Systems

16 March 1999

Mercedes-Benz Lenkungen and Siemens Automotive to Join Forces To Develop Next Generation Steering Systems

    REGENSBURG, Germany, March 15 -- Mercedes-Benz Lenkungen
(Steering) GmbH, Duesseldorf, a wholly owned subsidiary of DaimlerChrysler
, and Siemens Automotive, Regensburg, have signed an agreement to
jointly develop power steering and complete steering systems for vehicles.
The development partnership will pool both companies' expertise toward the
development of electromechanical steering systems.
    Mercedes-Benz Lenkungen and Siemens Automotive plan to invest more than
DM200 million (approx. $120 million) in the joint development initiative in
the coming years.
    The partnership plans to develop this new steering system for high-volume
production by the year 2002, and market it worldwide to all vehicle producers.
Current projections call for approximately three million electromechanical
steering systems annually.  The advent of advanced electrical distribution
systems will allow these electromechanical steering systems to carry over to
truck applications, weighing up to six tons.
    The two companies' complementary product ranges served as the impetus for
the development partnership.  Mercedes-Benz Lenkungen brings years of
experience in the development and production of steering systems as well as
patented technology for variable ratio steering racks.  Siemens Automotive
will be responsible for the electronics components and electrical motor
drives.
    Mercedes-Benz Lenkungen GmbH, part of the Powertrain Business Unit of
DaimlerChrysler, achieved turnover of roughly DM500 million (approx. $300
million) in fiscal year 1998, with approximately 1,400 employees located in
Duesseldorf and Esslingen, Germany and Meseritz, Poland.
    With 25,000 employees working in 70 facilities throughout the world,
Siemens Automotive increased its annual business volume by 24 percent in
fiscal year 1997/98.  Siemens Automotive reinvests more than 10 percent of
sales in research and development, a much higher figure than the international
average in this business sector.