November 29, 2004

DaimlerChrysler signs joint ventures with Chinese partners

Bremen/Stuttgart - During a ceremony on Friday at the company's car production plant in Bremen, representatives from DaimlerChrysler AG and its partners Beijing Automotive Industry Holding Company Ltd. (BAIC), the Fujian Motor Industry Group (FJMG) and the China Motor Corporation (CMC) signed the contracts governing the creation of two new joint ventures for the production of Mercedes-Benz passenger cars and vans in China.

The highlight of the ceremony was a meeting between DaimlerChrysler Chairman Prof. Jürgen E. Schrempp and the Chinese Vice Premier Zeng Peiyan. The Vice Premier was visiting the DaimlerChrysler plant in Bremen as part of his trip to Germany to promote trade relations between the two countries.

"These contracts are impressive examples of the strategic contribution that DaimlerChrysler makes as a partner in the prosperous and dynamic Chinese economy," says Dr. Rüdiger Grube, Member of the Board of Management of DaimlerChrysler AG responsible for Corporate Development and China Operations.

DaimlerChrysler will be a 50 percent joint venture partner in the new passenger car corporation. In the van joint venture, DaimlerChrysler Vans Hong Kong, in which DaimlerChrysler is a majority stakeholder, will have a participation of 50 percent. Both contracts are effective until 2034. Already in October, DaimlerChrysler received approval for its feasibility-plans through the Chinese government.

The passenger car joint venture will form part of the newly established Beijing Benz-DaimlerChrysler Automotive Co. Ltd. In cooperation with DaimlerChrysler's long-time partner BAIC, the joint venture's medium-term plans are to manufacture up to 25,000 Mercedes-Benz C-Class and E-Class sedans a year at a new plant in Beijing. Production is scheduled to begin in mid-2005.

DaimlerChrysler and its partners are investing a total of €1.2 billion in the Chinese market in current and future projects involving the production of Mercedes-Benz passenger cars and vans, the relocation of the Beijing Jeep Corporation and the production of heavy-duty and medium-duty trucks.

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