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DaimlerChrysler Continues Modernization With $624M Investment

1 September 1999

DaimlerChrysler Continues Powertrain Modernization With $624 Million Investment at Kenosha Engine

    KENOSHA, Wis., Aug. 31 -- DaimlerChrysler Corporation
confirmed today a $624 million modernization and expansion program
at its Kenosha engine plant in Kenosha, Wis.  The program brings recent
investment totals in the Corporation's powertrain operations to over $3.5
billion since 1997.
    The investment includes a 500,000-square-foot addition to the facility for
a new engine line, and will result in a slight increase in employment levels.
The announcement was made during Wisconsin Governor Tommy Thompson's
annual tour of the plant.
    "Decisions like these are made on the basis of sound business analysis and
solid economic fact," said W. Frank Fountain, Senior Vice President -
Government Affairs, DaimlerChrysler Corporation.  "It says to the world that
the community of Kenosha and state of Wisconsin are great areas in which to
work, live and conduct business.  It also highlights the positive relationship
that exists between the local union and plant management, which helped make
the final decision much easier."
    The Kenosha program continues DaimlerChrysler's recent efforts to
modernize its powertrain operations in North America.  Last year, the
Corporation opened a new $1.1 billion transmission facility in Kokomo, Ind.,
and a new $930 million V-8 engine plant on Mack Avenue in Detroit.
    In addition, DaimlerChrysler is currently building a new $750 million V-6
engine plant next to the V-8 facility, and recently committed $261 million to
upgrade its Trenton, Mich., engine plant.
    "The technological advancements, process improvements and infrastructure
upgrades represent our continuing efforts to improve the quality and cost-
competitiveness of our powertrain operations," said Richard O. Schaum, Senior
Vice President - Powertrain Operations, DaimlerChrysler Corporation.  "It also
reaffirms our formula for success in North America -- by reinvesting in our
existing facilities and the communities where we do business."
    During the 1990s, DaimlerChrysler has added more than 14,000
UAW-represented hourly workers to its payroll, a 25-percent increase to over
69,000 in the United States.
    The Kenosha Engine Plant currently produces 2.5-liter I-4 and 4.0-liter
I-6 rear-wheel-drive and 2.7-liter V-6 front-wheel-drive engines.  The 1.3
million square-foot facility currently employs approximately 2,000 workers.