---

Ford, GM and DaimlerChrysler Create Internet-Based Virtual Marketplace

28 February 2000

Ford, General Motors and DaimlerChrysler Create World's Largest Internet-Based Virtual Marketplace

    DETROIT, Feb. 25 -- General Motors Corporation
(NYSE: GM, GMH), Ford Motor Company and DaimlerChrysler
jointly announced today that they are planning to combine their efforts to
form a business-to-business integrated supplier exchange through a single
global portal.  This venture will create the world's largest virtual
marketplace.  The new enterprise will offer open participation to all auto
manufacturers around the world and their respective market of suppliers,
partners and dealers.  Eventually, this marketplace could be expanded to
encompass other industries.
    GM, Ford and DaimlerChrysler plan to have equal ownership in the new
venture which would operate as a separate business independent of the three
automakers.
    Ford, GM and DaimlerChrysler expect to reach a definitive agreement for
the venture in the first quarter, subject to appropriate governmental and
other approvals.  Until then, all services currently associated with the
existing exchanges will continue to be offered.  These include catalog
purchasing, bidding and price quotes, on-line sourcing and auctions.  In
addition, supply chain management functions such as capacity planning, demand
forecasting, production planning, supply chain transaction automation,
financial services, payment and logistics will continue and be expanded.
    Ford President and Chief Executive Officer Jacques A. Nasser said,
"Today's announcement is another example of how the Internet is transforming
every piece of our company and our industry.  It's exciting, it's dramatic,
and it's only going to accelerate.  We'll push this transformation even
further to bring sustainable benefits to our customers, our suppliers, and our
dealers."
    "As we continued to build our separate exchange sites, we quickly realized
traditional, individual stand-alone models weren't the winning strategy for
us, our industry, our suppliers and, ultimately, our customers," said G.
Richard Wagoner, Jr., president and chief operating officer, General Motors.
"By joining together, we can further increase the pace of implementation,
thereby accelerating the benefits to everyone involved.  We are excited about
the opportunity to build on what each of us started separately and create the
best trading exchange in the world."
    DaimlerChrysler Chairman Juergen Schrempp said, "DaimlerChrysler's plan
for a separate exchange came together with Ford's and GM's.  We bring a global
presence, large volume and excellent supplier relationships to the new
venture."
    Ford Motor Company selected Oracle Corporation as its
technology partner for Auto-xchange, an on-line global network open to the
entire auto industry that offers on-line procurement and trading as well as
the capability for real-time supply chain management and collaborative product
innovation.
    GM selected Commerce One as its technology partner for its
TradeXchange, a global Internet-based system designed to strengthen the entire
supply chain and allow purchasing functions through catalogs, auctions and bid
quotations.  Both Auto-xchange and TradeXchange are already operational.
    "We've demonstrated that we can compete effectively in the e-world," said
Harold R. Kutner, group vice president of GM Worldwide Purchasing.  "Not only
is it unprecedented for GM, Ford and DaimlerChrysler to come together to form
this type of joint venture, but it's also the largest Internet business ever
created.  Nobody will be better.  Nobody will be faster.  Nobody will offer
more to everyone involved."
    "Ford, GM and DaimlerChrysler welcome the participation of other
automotive manufacturers and suppliers in this exchange," said Brian Kelley,
Ford Motor Company vice president and president of Ford's ConsumerConnect.
"This combination will allow suppliers to channel their efforts through a
single exchange," he added, "and will reduce overall inventories, develop
industry standards and provide productivity to all participants."
    The new venture is expected to be powered by Oracle and Commerce One.
Both technology partners have collaborated on a compatible architecture to
bring best-of-breed offerings to the venture.  Both technology partners are
expected to continue to have economic interests in the new venture.