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.May 12, 2004
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This Week:

• Porsche Releases Initial Details of All-New 911 Models for Model Year 2005

• Mercedes Car Group: Successful New Products and Record Demand for E-Class

• Production Ends At Historic Dearborn Assembly

• DaimlerChrysler AG and Hyundai Motor Company Announce Realignment of Strategic Alliance

• Toyota Announces Management Changes at Toyota Motor North America, Inc.

• New Volkswagen convertible with innovative roof system to be launched in 2006

• Honda Announces Major Investment in the Marysville Auto Plant

• Porsche(R) Names New Design Chief; Veteran Harm Lagaay to Retire

• Chrysler Group Announces Changes in Product Development

• BMW Group Sales Rise 10.3% In April

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DaimlerChrysler AG and Hyundai Motor Company Announce Realignment of Strategic Alliance
 

Continuation of "World Engine Project" -- Continuation of joint procurement activities Termination of commercial vehicle engine alliance and of talks regarding commercial vehicle joint venture DaimlerChrysler AG plans to sell 10.5 % stake in Hyundai Motor Company STUTTGART, Germany and SEOUL, Korea - DaimlerChrysler AG and Hyundai Motor Company announced today that they have agreed to realign their strategic alliance to better reflect their respective companies' current business and strategic objectives. Under the agreement Hyundai Motor will acquire DaimlerChrysler's 50 % stake in Daimler Hyundai Truck Corporation, an existing commercial vehicle engine joint venture in Korea. The parties have also agreed to terminate certain associated licensing and other commercial arrangements, including the talks regarding a comprehensive commercial vehicle joint venture in Korea. Going forward, the companies' strategic alliance will include the following:

Joint development and manufacture of a family of four cylinder gasoline engines between DaimlerChrysler, Hyundai Motor and Mitsubishi Motors Corporation (the "World Engine Project")

Distribution of Hyundai Motor's Atos and Verna (Accent) passenger car models into the Mexican market through DaimlerChrysler's affiliate

Joint procurement activities

Supply by DaimlerChrysler of medium duty engines (OM 906) to Hyundai Motor for medium buses

It is anticipated that these projects will have substantial benefits for both parties.

Since commencement of the strategic alliance in September 2000, there have been significant changes in the global commercial vehicle and automotive markets, which have resulted in a re-prioritization of both companies' respective strategic objectives. To better address these conditions, the companies determined it was mutually beneficial to realign the alliance in order to reflect more realistically current market conditions. The companies expect that these measures will better position the strategic alliance to deliver value and to pursue additional projects going forward.

Commenting on the agreement, Vice Chairman Kim, Dong Jin of Hyundai Motor said, "We have been partners with DaimlerChrysler for nearly four years now and believe that the realignment of the strategic alliance is an important step forward to better position both companies to capitalize on opportunities in the changed market environment now facing us."

Dr. Eckhard Cordes, Member of the DaimlerChrysler Board of Management and Head of Commercial Vehicles Division commented, "Over the last few years, we created multiple strategic options for sustainable and profitable growth of our business in Asia. We are now implementing the strategy with good progress. In light of these developments, DaimlerChrysler and Hyundai Motor have agreed to primarily focus on a collaborative relationship on a per-project basis in the future."

Both companies have agreed that successful cooperation on a per-project basis is possible without a shareholding relationship. Therefore, as part of the realignment of the Alliance, DaimlerChrysler has decided to sell its 10.5 % stake in Hyundai Motor. DaimlerChrysler may sell such shares at any time and under some circumstances will do so within certain specified periods of time.

(May 12, 2004)