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Visionary Bob Eaton to Retire Following Record Year at DaimlerChrysler

26 January 2000

Bob Eaton recognized the impact of the globalization of the auto industry and the lasting impact of the Internet.

    AUBURN HILLS, Mich., Jan. 26 Robert J. Eaton, Chairman of DaimlerChrysler AG
will retire March 31.  Eaton, who became Chairman and CEO of Chrysler Corporation 
seven years ago, presided over the most successful period in the company's history,
and forged an alliance with Daimler-Benz that resulted in the formation of DaimlerChrysler AG.
    
     Eaton made the announcement at a meeting of DaimlerChrysler senior managers in 
Auburn Hills today, saying, "this is the right time for me to go."

     Eaton was one the the first high level auto execs to foresee and appreciate the impact that
The Internet would have on his business, as evidenced by his speech at the 1998
NADA convention in New Orleans.

  In this speech Eaton then President of the Chrysler Corporation describes his view of the future 
new car marketplace:

 "For the first time in the hundred years of this industry there are some fundamental changes 
 taking place in the way a car or truck goes from the factory to the customer.  Lets face it, the
 factory and the dealer have controlled the process for a century--but along comes the Internet. 
 In a nut shell, what's happening is that for the first time the customer is going to control
 The retail system. Not the dealers.  Not the factory.  The customer. Everything will be out
 in the open.  The customer will have all the information about the vehicle and its price 
 before she walks into your dealership.  She's not going to be intimidated any more
 because of what she doesn't know.  With a few strokes of a computer keyboard, she'll know
 everything that your salesman knows.  And she'll have more options when it comes to actually
 making the purchase.  She'll have the traditional neighborhood dealer, the superstore, the
 dealer three states away selling on the Internet, and probably a half dozen other options we 
 haven’t seen yet.  She's now in charge. We'd better all get used to that."

    At the time of the merger of Daimler-Benz and Chrysler in November of
1998, Eaton was named Chairman of the new company along with the former
Daimler-Benz Chairman Juergen Schrempp.

  It was intended that Eaton's role would be transitional, lasting until the merger of the two 
companies' operations was complete, but no longer than three years.

    "The merger is complete," Eaton told his management today.  "The structure
and future leadership is in place.  The two companies are one, my goal has
been accomplished.  This is the right time for me to go."

    He said that DaimlerChrysler represents an "extremely successful merger of
two strong companies, from different cultures, with complementary strengths
and similar visions.  It now has the potential to be the best car and truck
company in the world.  We have the leadership team in place that can make it
happen."

    During Eaton's tenure, Chrysler posted all-time record earnings.  It
introduced a new line-up of products that were among the most successful in
their categories.  In 1996, Chrysler Corporation was named by Forbes Magazine
as the "Company of the Year."

    Eaton, who will be 60 next month, began his career at General Motors in
1963, as an engineer, and remained with that company for 29 years.  At the
time he was picked to be Chairman and CEO of Chrysler, he was president of
General Motors Europe.

    Eaton said:  "The first full year of DaimlerChrysler has been a great one.
Our sales revenues for 1999 are up about 12%.  We sold 3.2 million Chrysler,
Dodge, Plymouth, and Jeep(R) products -- more than any other year in history.
We sold more than a million Mercedes-Benz passenger cars, and 550,000
commercial vehicles -- both also records."

    "Every achievement of this company in the future will bear a portion of
Bob's legacy of leadership and vision" said Juergen Schrempp.  "Bob Eaton's
dedication and role in the transition made DaimlerChrysler possible, and has
been a key to its success."

    Hilmar Kopper, Chairman of DaimlerChrysler's Supervisory Board said, "We
are sorry to see Bob leave, but he can be sure that we will continue to follow
the example that he has set for this company."

    "Our success has been achieved by the blending and collaboration of the
most talented U.S. and German executives," Bob Eaton said.  "I am both proud
of this team and confident that, under the leadership of Juergen Schrempp,
this team will continue to achieve important objectives for our customers,
shareholders, and employees," said Eaton at the management meeting.