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Changes Ahead for DaimlerChrysler

9 October 2000

    Since the merger of Daimler Benz and Chrysler Corp., there have been 
several changes in senior level management, but none with the potential 
impact of a change announced last week in Paris during the Le Mondial de 
l'Automobile.  Chrysler's senior design manager, Thomas Gale, announced that he 
will retire at the end of this year. Gale is credited with most of Chrysler's 
winning design successes for the last decade, including the cab-forward 
concept, the Dodge Viper, Plymouth Prowler, PT Cruiser and even the aggressive 
look of Dodge Ram trucks. Gale broke new ground in automobile design and he did 
it successfully, bringing Chrysler to a world leadership position in the 
design of high production vehicles.

    Gale has served most recently as executive v-p of product development and 
design and his job will be split between Richard O. Schaum, who will be 
responsible for product engineering, and Trevor M. Creed, who will handle 
design. There is doubt that the successes Gale has had over the last ten 
years will continue, particularly in light of the fact that Gale will not 
be replaced on the DC management board. He was one of four Americans on the 
13-member board.  On the upside, Gale says he is starting his own
design business when he retires and right now plans to work exclusively 
with DaimlerChrysler.

    There was another important change announced over the weekend by DC. For 
the first time, the company will begin using Mercedes Benz parts in 
Chrysler cars. The move is a particularly interesting one because the 
company has selected a high value component that contributes to the 
exclusivity of Mercedes Benz cars.

    DC announced that it will invest some $455 million in its Kokomo, Ind. 
transmission plant in order to equip the plant to make five-speed automatic 
transmissions to be used in Chrysler cars. Mercedes Benz transmissions are 
world renown for their performance and have been sold to other luxury and 
sports car makers.  DC said that when the expansion to the plant is 
completed, it will have capacity to make 400,000 of the new transmissions 
each year.