October 23, 2002

Chrysler Group envisions new manufacturing facility for Windsor area

Auburn Hills, Michigan – Dieter Zetsche, President and CEO of Chrysler Group, expects new
jobs, new investment, and a new “benchmark manufacturing facility for North
America” could be the outcome of the newly-ratified labour agreement
between DaimlerChrysler and the Canadian Auto Workers (C.A.W.).

Chrysler Group is building a business case for a non-traditional manufacturing facility in Windsor. Key elements to finalizing the business case for this project include exploring
relationships with suppliers and the government. The business case is expected to be finalized some time in late 2003.

“The C.A.W. contract was the first step in achieving this,” said Zetsche.
“Moving forward, we need to develop long-term partnerships with suppliers and
all levels of government, as well. For suppliers, that may even include taking
equity in the project. One example is that a supplier might operate the Body
Shop or the Paint Shop in its entirety, including investment and staffing.”

Final site alternatives are still being explored. The company’s Pillette Road site (where the Dodge Ram full-size van, scheduled to cease production in summer of 2003, is built) is being considered, as well as other locations in the Windsor area. An announcement on the vehicle to be produced there would be made later.

Including the newly proposed facility, DaimlerChrysler would invest in
excess of $3 billion (Canadian) in its Canadian manufacturing operations
between 2002 and 2005. The investment includes preparation for the new Chrysler
Pacifica, due to begin production at Windsor Assembly Plant this coming

As many as 1000 DaimlerChrysler Canada jobs could be created when the new Windsor area
facility begins production no later than the fourth quarter of 2005. It is
also expected that another 1,500 jobs could be created at various supplier
companies on the manufacturing site.

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