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DaimlerChrysler Announces $435 Million Modernization And Expansion Program at St. Louis-North Assembly

25 May 1999

DaimlerChrysler Announces $435 Million Modernization And Expansion Program at St. Louis-North Assembly

    ST. LOUIS, May 25 -- DaimlerChrysler Corporation
announced today a $435 million modernization and expansion program at its St.
Louis-North Assembly Plant in Fenton, Mo.  The manufacturing facility has been
home to production of the popular Dodge Ram Quad Cab pickup since the fall of
1997.
    The modernization and expansion program includes an all-new $317 million
body shop and an all-new $118 million color spray booth in the paint shop.  An
additional 311,000 square-feet will be added to the body shop, which will
feature new manufacturing processes designed to improve flexibility,
productivity and quality.  The color spray booth will be the second in
operation in the plant's paint shop, and will offer increased volume and
quality opportunities.
    "The $435 million investment clearly represents DaimlerChrysler's
commitment not only to our workforce, but also the entire St. Louis regional
community," said Gary L. Henson, Senior Vice President - Manufacturing,
DaimlerChrysler Corporation.  "The new technologies, process improvements and
infrastructure upgrades are also evidence of our continuing effort to improve
the quality and competitiveness of the Dodge Ram Quad Cab at St. Louis-North
Assembly."
    The announcement was made this morning during a program to celebrate the
Plant's full ISO-9002 registration, the internationally-recognized standard
for business practices.  ISO-9002 registration was achieved following an
extensive audit of the Plant's processes by Underwriters Laboratories, an
independent quality register based in Chicago.
    Also attending the program at the Plant this morning were UAW Vice
President Jack Laskowski; Missouri Governor Mel Carnahan; State Representative
Jim Murphy; St. Louis, Mo., Mayor Clarence Harmon; Fenton, Mo., Mayor Fran
Ruzika; Ronnie Bryant, Sr., Vice President - Economic Development, St. Louis
Regional Commerce and Growth Association; and several other local dignitaries.
    "Decisions like this are made on the basis of sound business analysis and
solid economic fact," said Jim Nihls, Plant Manager, St. Louis-North Assembly
and a board member of the St. Louis Regional Commerce and Growth Association.
"It says to the world that St. Louis is a great city in which to work, live
and conduct business."
    Production of the Dodge Ram Quad Cab, the first extended cab full-size
pickup with four doors, started at St. Louis-North at the beginning of the
1998 model year.  Sales of the Quad Cab version of the Dodge Ram now account
for 65 percent of the model mix, and are up seven percent during the 1999
calendar year.
    The St. Louis-North Assembly Plant was built in 1966.  The facility
produced Chrysler minivans from 1987 through February 1995, before going
through a $350 million conversion process to Dodge Ram pickup truck production
in August of 1995.  The plant currently employs approximately 3,000 employees
and produces 592 vehicles per day on two shifts.  A total of 511,487 Dodge
Rams have been built at the facility since 1995.