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Supervisory Board Approves New Management for Chrysler Group

17 November 2000

Supervisory Board Approves New Management for Chrysler Group

         -- Dieter Zetsche new President/CEO of Chrysler Group
         -- Introduction of Chief Operating Officer (COO) at Chrysler Group:
            Wolfgang Bernhard to be named COO and Deputy Member of the
            DaimlerChrysler Board of Management
         -- Eckhard Cordes new Head of Global Commercial Vehicle Business

    STUTTGART, Germany and AUBURN HILLS, Mich., Nov. 17 During
an extraordinary meeting in Stuttgart, the Supervisory Board of
DaimlerChrysler AG , today approved Management Board Chairman
Juergen E. Schrempp's reorganization plan for the Board of Management.
    As a result, Dr. Dieter Zetsche and Dr. Wolfgang Bernhard are appointed
President/CEO and COO respectively of the Chrysler Group, and will assume
these responsibilities, effective immediately.
    Due to a significant shift in market conditions in the U.S., the new
management team of the Chrysler Group will fundamentally reposition and
restructure the business.  This program, details of which will be announced in
the first quarter of 2001, will focus on measures to improve cost positioning,
product line-up and market performance.
    Since the announcement of the third quarter results in late October, tough
market conditions in the United States have intensified further, characterized
by ongoing competitive incentive spending, high dealer inventories and
resultant reduction in production levels.  As a consequence results at the
Chrysler Group will fall below the last forecast and thus also affect the
earnings of DaimlerChrysler AG.
    The Supervisory Board and the shareholder committee strongly reaffirmed at
the meeting today its support for the global strategy of DaimlerChrysler
and assured the Management Board of its full backing concerning all necessary
measures to achieve that objective.

    Dieter Zetsche to head Chrysler Group

    Dr. Dieter Zetsche (46), member of the Board of Management responsible for
the Global Commercial Vehicles business will assume the leadership of the
Chrysler Group as President and CEO of the Chrysler Group immediately and
continue to serve as a member of the Board of Management.
    Since commencing his professional career with the company in 1976, Zetsche
has held increasingly responsible management positions both domestically and
internationally.  He has been Head of Development and Design of Mercedes-Benz
passenger cars and also world-wide Sales and Marketing for Mercedes-Benz
products.
    His international assignments have involved terms as Board Member of
Mercedes-Benz do Brasil and President of Mercedes-Benz Argentina.  As
President and CEO of Freightliner, the leading U.S. commercial vehicle
producer, he achieved an impressive turn-around.
    Juergen E. Schrempp stated: "My colleague Dieter Zetsche is undertaking a
very challenging assignment heading the Chrysler Group.  Given his
capabilities and his proven career track record we have no doubt that he will
lead this business back to sustained profitability.  He has extensive
experience in every facet of the automotive sector."

    Wolfgang Bernhard to become new COO of the Chrysler Group and deputy
    member of the Board of Management

    Dr. Wolfgang Bernhard (40) will take over the newly created position of
Chief Operating Officer (COO) of the Chrysler Group.  Bernhard, who has been
appointed deputy member of the Board of Management of DaimlerChrysler AG, was
responsible for the very successful launch and introduction of the new S-Class
and recently became Managing Director of Mercedes-AMG.
    In addition to his extensive product and development experience, Bernhard
is also an acknowledged production expert.  As COO he will be responsible for
all internal operations and the implementation of initiatives necessary to
strengthen and restore the position of the Chrysler Group.
    Juergen E. Schrempp commented that, "Wolfgang Bernhard in his new
assignment as COO has been given the mandate to make the restructuring
measures his highest priority.  He has demonstrated in his previous position
that he is a highly competent manager with a strong empathy for his employees
and a sound understanding of market conditions."
    After a thorough examination and in-depth analysis of the current
situation, the leadership team of Zetsche and Bernhard, in conjunction with
Chrysler's management and the full support of DaimlerChrysler AG will initiate
and speed up the necessary measures for the "turn-around."  The new
appointments will also accelerate the transfer of knowledge and technology
within the DaimlerChrysler Group.
    Jim Holden will step down with immediate effect.  We thank Jim Holden for
his many years of contribution to the company.

    Eckhard Cordes to become new head of Global Commercial Vehicle Business

    As the Board of Management member formerly responsible for Corporate
Development & IT Management, Eckhard Cordes (49), will immediately take over
the responsibilities for the Commercial Vehicle Division from Dieter Zetsche.
    Over the last few years Cordes has played a leading role in the
restructuring and focusing of the company around its core automotive
businesses.  He is also one the architects of the DaimlerChrysler merger and
the recently announced Asian joint ventures and alliances with Mitsubishi
Motors Corporation and Hyundai Motor Company respectively.
    Juergen E. Schrempp:  "With his wide background Eckhard Cordes was the
obvious choice for this important operation."
    Since joining Daimler-Benz in 1976, Cordes has spent several years in the
Commercial Vehicle Division including 1986-1989 with Mercedes-Benz do Brasil.
His present responsibilities on the Board will be temporarily assumed by
Juergen E. Schrempp.

    Schrempp reaffirms U.S. commitment

    Schrempp reaffirmed that, "The current reorganization will not be to the
detriment of our commitment to the important NAFTA market.  We will continue
our active and very dynamic investment program in our U.S. and North American
facilities."
    Schrempp concluded:  "With this decision we will be able to drive the
integration of our global businesses.  We do this with shareholder value first
and foremost in our mind and will now be able to realize the potential
synergies of our global network even faster.  Our responsibility to our
investors, to our employees and to our customers demands that we rapidly and
proactively develop the outstanding potential inherent in DaimlerChrysler."