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1999 Mercedes-Benz M-Class Production Increases 33% Over Last Year

29 December 1999

1999 Mercedes-Benz M-Class Production Increases 33 Percent Over Last Year; 91,165 Vehicles Produced for the World Market
    TUSCALOOSA, Ala., Dec. 28 -- After increasing Mercedes-Benz
M-Class production at its plant here, and starting supplemental production in
Austria, Mercedes-Benz U.S. International (MBUSI) announced today
91,165 M-Class sport utility vehicles were produced in 1999, surpassing last
year's total output by more than 33 percent.
    At its plant in Tuscaloosa, MBUSI produced 77,692 M-Classes, a 13 percent
increase over last year's 68,732.  To satisfy strong European demand, MBUSI
partnered with Steyr-Daimler-Puch to produce 13,473 additional M-Classes in
Graz.  Production there began in May of this year.
    "This was a challenging year for our organization.  We realized a
significant production increase in Tuscaloosa and, with the help of our
partners in Graz we were able to begin production there in less than six
months, which enabled us to meet customer demand," said Bill Taylor, MBUSI
President and CEO.  "In addition, we launched the model year 2000 M-Class in
September, which has approximately 1,200 new parts and required some 500 new
processes on our production line.  We did it while continuing to stay focused
on quality, and I can't say enough about the hard work and dedication of our
team members."
    In addition to launching its model year 2000 M-Class this year, MBUSI
began producing the Mercedes-Benz ML55 AMG, a 342 horsepower, 5.5 liter
high-performance super V8, certified as the "fastest SUV in the world," which
goes on sale the end of this year.
    Currently more than 1,900 team members work at MBUSI, exceeding the
original target of 1,500.
    MBUSI currently produces V6, V8, super V8, and right-hand drive versions
of the M-Class in Tuscaloosa for over 135 markets worldwide.  European
4-cylinder, V6, V8 and 5-cylinder diesel versions are produced in Graz,
Austria.
    In 1999, MBUSI celebrated the following milestones:

    *  Bill Taylor was named president and CEO of Mercedes-Benz U.S.
       International.  He was formerly vice-president of operations.

    *  MBUSI achieved its daily rate of 340 vehicles in a two-shift
       operation.

    *  The new factory delivery program was initiated, enabling M-Class
       customers to pick up their vehicle at the plant, tour the facility and
       ride on the new off-road course.

    *  MBUSI invested $8 million and created 300 jobs when it opened the
       Mercedes-Benz Consolidation Center - America (MBCCA) in Bessemer, AL,
       to coordinate M-Class NAFTA parts delivery to Graz.

    *  In May, to satisfy strong European demand, M-Class production began
       in Graz, Austria.

    *  MBUSI earned its ISO 14001 certification, an international
       manufacturing environmental standard.

    *  MBUSI began producing its model year 2000 M-Class, which has more
       than 1,200 new parts and required more than 500 new processes on the
       line.

    *  Working with Mercedes-Benz high-performance division AMG, MBUSI began
       building the ML55 AMG, 342-hp super V8 M-Class.

    *  DaimlerChrysler AG, MBUSI and Mercedes-Benz USA, partnered with the
       National Highway Traffic Safety Administration to create the nation's
       eighth Crash Injury Research and Engineering Center (CIREN) at the
       University of Alabama at Birmingham.

    *  The Economic Development Partnership of Alabama commissioned a study
       with Auburn University in Montgomery, which determined MBUSI represents
       an annual $1.3 billion industry in Alabama, and is responsible for
       creating 10,000 direct and indirect jobs in the state.

    *  MBUSI became Alabama's largest exporter, with more than $1 billion in
       vehicles and parts exported annually.

    *  MBUSI created the first Mercedes-Benz Drive For Excellence event,
       which attracted more than 8,000 participants and generated $130,000 for
       the Kid One Transport System and the Alabama Reading Initiative.

    *  More than 22,000 visitors from all 50 states and 32 countries came to
       the Mercedes-Benz Visitor Center in Tuscaloosa and toured the plant in
       1999.

    MBUSI is part of the DaimlerChrysler AG group.