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Chrysler Group Announces New Production Strategy for Jeep(R)

5 January 2001

Chrysler Group Announces New Production Strategy for Jeep(R)

    Additional $35 million for increased flexibility at new $1.2 billion
Toledo plant
    Jeep(R) Cherokee production to end in mid-2001

    AUBURN HILLS, Mich., Jan. 4 DaimlerChrysler Corporation
will invest an additional $35 million in its new $1.2 billion Toledo North
Assembly Plant (TNAP) in order to have greater flexibility to adjust
production volume and add new products more easily.
    The company is installing new equipment which will allow it to ramp up
maximum production of the all-new Jeep(R) Liberty on a two-shift operation,
while improving productivity.
    As the company's newest assembly plant, TNAP was designed and built to be
flexible enough to adjust volumes quickly, and ultimately build two separate
products as well as prototypes of a third.  The new investment, which consists
of a building expansion, conveyors and other production and maintenance
equipment, will enhance its ability to be flexible while making the
manufacturing process more ergonomically friendly for the workforce.
    "This investment in the new plant demonstrates the company's long-term
commitment to the community and our workforce," said Gary Henson,
DaimlerChrysler Corporation Executive Vice President - Manufacturing.  "It
will also help safeguard thousands of jobs in the Toledo area.  Flexibility is
crucial to the future of our manufacturing operations.  Having the ability to
react quickly to the market and build multiple models on the same production
line will increase our competitiveness, quality and speed as we move forward."

    JEEP CHEROKEE PRODUCTION
    DaimlerChrysler will discontinue Jeep Cherokee production by the middle of
this year.  Originally scheduled to end production in November 2000, the
company continued production in order to meet demand in the market place.
    "The Jeep Cherokee has had one of the longest and most successful rides in
the history of the automotive industry," said Tom Sidlik, DaimlerChrysler
Executive Vice President of Procurement and Supply and General Manager - Jeep
Operations.  "Jeep invented the compact SUV segment with Cherokee 18-years
ago, and with the launch of the all-new Jeep Liberty, we will further enhance
and broaden the overall Jeep brand."
    As the company prepares to launch the new Jeep Liberty this spring at
TNAP, employees from Jeep Cherokee production have been transitioning to the
new operation to train for the production ramp up.  Ending Cherokee production
this year will ensure a smooth transition and a stable launch of the Jeep
Liberty.  Currently about 500 employees have been trained and are working in
the new facility.