TMC announced construction of the new transmission production plant at a press conference today held jointly with the Polish government at the Prime Minister's Office in Warsaw. The press conference was attended by Polish Prime Minister Jerzy Buzek and TMC President Fujio Cho. Although the site of the new plant has yet to be determined, the prime candidate is in Walbrzych, Dolnoslaskie Province, located some 500km southwest of Warsaw. After a site is selected, TMC hopes to receive final approval from the Polish government by the end of this year.

Plans call for the transmissions produced at the new plant to be installed in the following vehicles: TMUK's Corolla and Avensis; TMMF's Yaris; and the Corolla produced at Toyotasa S.A. in Turkey. Expected production capacity is around 250,000 units per year.

Outline of Plant in Poland
Production parts: manual transmissions (for 1.3-1.8 liter engines)
Production capacity:approx. 250,000 units/year
Total investment: approx. 10 billion yen (approx. 350 million ZL)
New employment: approx. 300
Start of production: beginning of 2002

The new Management Board will have fewer members, with responsibilities allocated to three automotive divisions, the aerospace and services divisions and six functional activities. Apart from the joint chairmen, there will now be 12 Management Board members. The new structure, effective October 1, 1999, was approved by the company's Supervisory Board at today's meeting in Frankfurt.

The Sales and Marketing organization will be folded into this structure, safeguarding the further integration process and strengthening the sales and marketing operation.The appointments of Holden and Zetsche reflect this change. Both are marketing experts who formerly headed in their functions as management board members worldwide sales and marketing for Chrysler/Plymouth/Jeep/Dodge and Mercedes-Benz/smart, respectively.

Jürgen Hubbert and Dieter Zetsche

Photo: DaimlerChrysler

The restructuring will result in several other senior management changes:
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Thomas T. Stallkamp

Photo: DaimlerChrysler

Kurt Lauk, board member responsible for the Commercial Vehicle division, will also leave the company effective September 30, 1999 and is succeeded by Dieter Zetsche.

Guenther Fleig has been appointed head of Human Resources. Fleig, currently CEO of DaimlerChrysler France, will replace Heiner Tropitzsch, who will retire by mutual agreement effective September 30, 1999.  

New Head of smart Operation

In a move to build on the recent success of the passenger car brand smart, the company has appointed Andreas Renschler, Senior Vice President, as head of smart. Renschler is currently head of Management Development within Human Resources. Prior to this, he led the team that developed the Mercedes-Benz M-Class and its manufacturing plant in Tuscaloosa/Alabama.

New Head of Corporate Strategy

Effective January 1st, 2000, Aloysius Rauen currently Senior Vice President for Military Aircraft Operations, will succeed Rüdiger Grube as Head of Corporate Strategy. He will report to Eckhard Cordes. Grube, who developed and ran the PMI-Process, will see it through to completion. He leaves to pursue a new entrepreneurial career.