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DaimlerChrysler Corporation to Expand Use Of Natural Fibers in Automotive Components

17 July 2000

DaimlerChrysler Corporation to Expand Use Of Natural Fibers in Automotive Components

    AUBURN HILLS, Mich. and STUTTGART, Germany - DaimlerChrysler Corporation 
will equip the new Mercedes-Benz Travego travel coach with a natural fiber-
reinforced engine and transmission cover as standard equipment, the first 
natural fiber-reinforced exterior vehicle component to go into series production.

    Use of natural fibers reduces weight by 10 percent and lowers the energy
needed for production by 80 percent, while the cost of the component is five
percent lower than the comparable fiberglass-reinforced component, according
to Professor Heinrich Flegel, director of Production Technology at the
DaimlerChrysler Research Center in Ulm, Germany.

    Professor Flegel made the announcement during a press conference for
release of DaimlerChrysler Corporation's 2000 Environmental Report.

    Over the last 10 years, DaimlerChrysler has continually developed new
applications for natural fibers in vehicle production.  Until now, use of
flax, sisal, coconut fiber, cotton and hemp has been limited to the interiors
of DaimlerChrysler vehicles -- in upholstery, door paneling or the rear panel
shelf.

    DaimlerChrysler will also use natural fiber-reinforced materials in the
Mercedes-Benz C-Class to be built in East London, South Africa, beginning in
August.  The vehicle will be equipped with a sisal-reinforced rear panel shelf
made of environmentally friendly raw materials from local suppliers.  By
combining sisal and cotton, the share of natural fibers in the component has
been increased to more than 70 percent.

    Natural fibers are used in many automobiles produced by the Chrysler Group
in the United States.  Future uses of natural fibers were explored in the
Concepts for Advanced Recycling and Environmental (CARE) Car project.  Working
with major suppliers, DaimlerChrysler developed new concepts with the goal of
making new vehicles 95 percent recyclable in the next five years.  In that
project, natural fibers were used in door trim panel components, including the
arm rest and map pocket.

    Professor Flegel cited the benefits of using natural materials:

    *  No net carbon dioxide release.
    *  40 percent less weight compared with fiberglass.
    *  Production consumes one-fifth the energy of fiberglass production.

    The new applications of natural fibers build on DaimlerChrysler's
experience in a project in Belem, Brazil.  That project, which began in 1991,
provides the local population with a stable, long-term source of income
through the use of natural fibers, while reducing destruction of the rain
forest.

    Since 1996, residents of the Amazon island of Marajo have been supplying
headrests made of coconut fiber to Mercedes-Benz do Brasil.  Today, the
cooperative supplies approximately 2,500 headrests per month.

    In releasing the 2000 Environmental Report, DaimlerChrysler Environmental
Commissioner Dr. Werner Pollmann reported that the corporation spent about
$1.5 billion on environmental-related activities in 1999.  Half of that
expenditure was invested in development of environmentally-friendly processes
and products, including fuel cells and low emission engines.

    The company also continued to reduce emissions from its manufacturing
facilities during 1999, Pollmann reported.