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DaimlerChrysler MTU and General Dynamics Announce Joint Venture

8 May 2000

DaimlerChrysler MTU and General Dynamics Lands Systems Announce Joint Venture Program

                   Performance Diesels Co. LLC Will Pursue
             Abrams-Crusader Common Engine Program for U.S. Army

    WASHINGTON, May 5 DaimlerChrysler's MTU subsidiary (MTU
North America, Inc.)  and General Dynamics Land Systems announced today the
formation of a new joint venture, the Performance Diesels Company, L.L.C.
This new entity will capitalize on the strengths of both companies to pursue
engine supply contracts for military applications, including the U.S. Army's
Abrams-Crusader Common Engine Program.
     "We're excited by the opportunities this new organization presents," said
Phil Wasinger, the newly appointed president of Performance Diesels and former
managing director of MTU Washington.  "We feel confident that by drawing on
the strengths of both companies, we can furnish the engine platforms needed by
21st-century military forces."
     MTU will appoint three of the five members of the Performance Diesels
board of directors, while General Dynamics Land Systems will appoint two.  The
venture will be incorporated in Delaware.
     "General Dynamics Land Systems and MTU have collaborated on engine
development and integration projects for the Advanced Amphibious Assault
Vehicle, the Abrams tank, and main battle tanks for international customers
for over six years," said Charles Hall, president of General Dynamics Land
Systems. "We look forward to expanding a successful partnership in a way that
enhances the products and services we provide our customers."
MTU, based in Friedrichshafen, Germany, is the heavy-engine unit of
DaimlerChrysler A.G., one of the world's leading industrial
companies.  The MT880 family of diesel engines are state-of-the-art diesel
engines that have become the engine of choice for many of the world's most
recognized modern combat and combat support vehicles.  Both the MT881 (V-8)
and MT883 (V-12) engines have been certified through NATO 400-hour testing.