This Week:

• DaimlerChrysler and Mitsubishi Motors to Decide on Location for New Engine Plant
  .

• "Audi Forum Ingolstadt" officially opened
  .

• General Motors Announces Phase-Out Of Oldsmobile
  .

• Lexus To Have Three Worldwide Debuts at the North American International Auto Show in Detroit
  .

• Side Impact Crash Test Of The BMW X5 By The Insurance Institute For Highway Safety Demonstrates Importance Of The First Head Protection System Offered In An SUV
  .

• U.S. Competition Authority Gives Clearance To AB VOLVO'S Acquisition Of Renault V.I. /MACK
  .

• First Vehicle Premieres At Jinbei GM:
  Manufacturing High-Quality Chevrolet Trucks In China
  .

• New Managing Director for Mercedes-AMG GmbH
  Ulrich Bruhnke to succeed Wolfgang Bernhard
  .

• Largest five stage transfer press in Europe starts up at Land Rover
  .

• GM Powertrain Announces New Plant Manager At Fredericksburg
  .

• Visteon Corporation Names Glenda Minor as General Auditor

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News of  December 19, 2000

DaimlerChrysler and Mitsubishi Motors to Decide on Location for New Engine Plant

• Joint assembly of gasoline engine as part of the "Z-Car" project
• Locations in eastern Germany and Hungary on the short list

Stuttgart – The "Z-Car" vehicle project being jointly developed by smart and Mitsubishi Motors is making rapid progress. Three months after the contract between DaimlerChrysler and Mitsubishi Motors was signed, in which DaimlerChrysler acquired a 34% stake in the Japanese car manufacturer, the two companies have already completed the pre-selection process for a new, joint engine plant location. Preliminary studies have identified that a location in eastern Germany or Hungary would be best suited for the project but no final decision has been made yet.

The new production location for the completely new gasoline engine is needed since the increasing demand for Mercedes-Benz passenger cars has brought DaimlerChrysler’s European engine plants up to full capacity, and the current plants can only be expanded to a limited degree.

"The extension of the smart line with an innovative four-seat subcompact car is making great progress within the framework of our alliance with Mitsubishi Motors," says Jürgen Hubbert, responsible for Mercedes-Benz Passenger Cars & smart in the DaimlerChrysler board of management. "Both our engine concept and the decision to have NedCar build the vehicles place us right on schedule."

(Dec. 18, 2000)

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