DaimlerChrysler Boosts Worldwide Passenger Car Sales in 2004 by 2.1 Percent to 3.9 Million Units * Chrysler Group sales rise by 3.5 percent worldwide to 2.7 million units DETROIT and STUTTGART, Germany, Jan. 9 /PRNewswire/ -- In 2004, sales of DaimlerChrysler passenger cars rose by 2.1 percent to 3,897,800 units (2003: 3,816,700). Although the Chrysler Group continued to face intense competition, the division was very successful in maintaining its strong position in the United States, where its sales grew faster than the market as a whole. Demand for Chrysler, Jeep(R) and Dodge brand vehicles increased by 3.5 percent worldwide to 2,697,300 units (2003: 2,607,000). The Mercedes Car Group meanwhile suffered a slight drop in passenger car sales to 1,200,500 units in 2004 (2003: 1,209,700), due to the model changeovers for the Mercedes-Benz C-Class, the SLK roadster and the high-volume A-Class. Chrysler Group Product Offensive Creates Positive Sales Momentum Global sales for the Chrysler Group, which include the Chrysler, Jeep and Dodge brands, totaled 2,697,300 units, a 3.5 percent increase over 2003 units of 2,607,000. In the United States, the world's largest and most competitive car market, Chrysler Group increased the number of vehicles sold by 3.8 percent to 2,206,024 units compared to 2003 sales of 2,124,451 units. As a result, the company increased its marketshare in the U.S. by 0.3 points to 12.8 percent. The Chrysler Group has reaffirmed its position as leader in the highly competitive minivan segment with the introduction of the exclusive Stow'n Go second and third row seating in all long-wheelbase minivan models. The exclusive availability of this feature on Chrysler minivans helped the Chrysler Group achieve a year of sales gains in 2004 compared to 2003. Globally, Chrysler minivans recorded sales of 518,941 units, a 2.2 percent improvement above the 507,849 units sold in 2003. "We are pleased that our product offensive achieved its objective to increase sales for the Chrysler Group in 2004," said Dieter Zetsche, Chrysler Group President and CEO. "Exciting new vehicles like the Chrysler 300C and exclusive innovations like Stow'n Go seating in our minivans have attracted customers around the world to Chrysler Group products. Our sales have increased for five consecutive quarters and we believe we are well positioned for global growth going into the new year." Chrysler Brand Experiences Resurgence with New Products The Chrysler brand experienced significant growth in 2004, setting new records along the way with global sales of 733,869 units, a 21 percent increase over 2003 sales of 606,603 units. Sales for Chrysler badged products in 2004 were the highest in the history of the company for the brand. The Chrysler brand was led by the all-new Chrysler 300 which took its place as the flagship sedan for the Chrysler Group. Since its launch, the vehicle has won numerous awards from many publications and organizations, including "2005 Car of the Year" from Motor Trend magazine and "International Car of the Year" of the North American International Auto Show. "The global response to the Chrysler 300C has been great," said Zetsche. "We appreciate the awards as they are confirmation of what customers have been saying about the Chrysler 300 -- that it is a great American car." Worldwide sales of the Chrysler 300 totaled 120,857 units since its April introduction. In the U.S., although only available since April, the vehicle commands a 25 percent share in the Luxury Full-Size Car segment this year. The Chrysler Pacifica continues to win new customers worldwide with its unique styling, versatility and multitude of models. The Pacifica had a stellar performance in 2004, recording global sales of 98,493 units, an increase of 64 percent over 2003 levels. The introduction of a new model with two rows of seats, rather than three and a price repositioning both contributed to the rise in sales for the Pacifica, along with greater customer awareness and recognition of the vehicle. Other Chrysler brand vehicles that were well received by customers around the globe include the Chrysler PT Cruiser which saw sales rise 22 percent to 148,842 units; the Chrysler Crossfire which recorded sales of 22,680 units worldwide, an increase of 298 percent over 2003 sales levels; and, the Chrysler Sebring, which maintained its sales pace with last year by posting sales of 141,414 units. The Jeep Off-Road Legend Continues On-Road with New Jeep Grand Cherokee Sales of Jeep brand products declined by 4 percent in 2004, to 543,441 from 564,252 units in 2003, due to the transition to the all-new 2005 Jeep Grand Cherokee which launched in North America in the fall of 2004, and intense competition in the Sport Utility Vehicle (SUV) segment. The brand was buoyed by the successful launch and sales of the Jeep Wrangler Unlimited and the continued success of the Jeep Liberty (Jeep Cherokee in markets outside North America), both of which experienced sales gains in 2004. "The Jeep tradition of off-road prowess was solidified and combined with outstanding on-road refinement by the launch of the all-new Jeep Grand Cherokee," said Zetsche. "As additional Jeep products are added to the brand, we will continue to offer the combination of off-road and on-road capabilities customers expect from a Jeep." The addition of the Jeep Wrangler Unlimited to the iconic Jeep Wrangler lineage helped to increase Wrangler sales globally by 8 percent to 89,043 units for 2004 compared to 82,156 units in 2003. Jeep Liberty/Cherokee sales increased 3 percent to 195,196 units on the strength of a refreshed product in 2004 for the 2005 model year. The addition of the refreshed Liberty/Cherokee Renegade and Liberty/Cherokee Common Rail Diesel (CRD) are expected to generate additional appeal for the Jeep Liberty/Cherokee. With the fall introduction of the all-new Jeep Grand Cherokee with an available HEMI(R) engine option, the flagship of the Jeep brand was enhanced. The new Jeep Grand Cherokee combines the legendary off-road capability that the brand is famous for, added additional on-road refinement and improved interior components along with an optional 5.7 Liter HEMI engine. This generation of Jeep Grand Cherokee has been recognized by members of the media internationally with several awards, including 'World's Best Off-Roader' by 4x4 Magazine, UK. Global sales of Jeep Grand Cherokee declined 12 percent in 2004 to 222,174 units as existing inventory of the previous model were depleted and the all-new version started being shipped to dealerships in North America. Markets outside North America will welcome the vehicle later this year. Higher sales of the entire Jeep brand are anticipated as dealers build up acceptable inventory of the all-new Jeep Grand Cherokee model and the Jeep Liberty/Cherokee continues to sell. Dodge Charger Adds Breadth to Dodge Brand Sales of the Dodge brand worldwide declined by 1 percent to 1,419,170 units compared to 1,436,157 units sold in 2003. The decline was led by products late in their life cycle including Dodge Neon, Dodge Intrepid and Dodge Dakota. Sales were also affected by the decline in Dodge Ram sales of 5 percent to 474,470 units from the record setting sales pace of 497,181 units established in 2003. Sales were helped by products like the all-new Dodge Magnum, introduced during 2004 and well-received by the marketplace, selling 41,414 units in North America since going on sale in May 2004. Built on the same platform as the multiple award winning Chrysler 300, the Dodge Magnum has captured North America's attention with its bold styling, available 5.7 Liter V-8 HEMI engine and other features, including the "extreme access" liftgate that allows for easier cargo loading and unloading. Dodge Durango also had a successful sales performance in 2004, by improving its global sales 31 percent to 150,246 units compared to 2003 sales of 114,520. Sales of the Dodge Sprinter Van improved dramatically, rising 427 percent to 10,232 units. Total sales for Sprinter in 2003 totaled 1,941 units. Dodge brand sales in North America were also helped by the strong performance of Dodge Caravan/Grand Caravan minivans. The minivan segment was created by the Chrysler Group over 20 years ago, and the company continues its dominance with minivan products like the Dodge Caravan/Grand Caravan. The Dodge Grand Caravan has available Stow 'n Go seating, the Chrysler Group exclusive seating system that allows the second and third row of seats to be folded flat into the floor. "We have established a strong foundation for future growth of the Dodge brand," said Zetsche. "Sales of Dodge Magnum, Dodge Durango and our Dodge Caravan minivans have confirmed that we are on the right path as we prepare to launch new Dodge products domestically. In addition, we have plans to grow the Dodge brand in markets outside of North America starting in 2005." The Dodge brand will get an additional vehicle added to its lineup in North America when the all-new Dodge Charger is introduced in 2005. The Dodge Charger is also built on the same popular and versatile platform as the Chrysler 300 and Dodge Magnum and will be a four-door, rear-wheel drive sedan with an available HEMI engine. "The Chrysler Group now sells vehicles in more than 125 countries around the world. While we are not a major player in all of these markets, our goal with our ongoing product offensive is to grow our brands, entice loyal customers and attract new ones," said Zetsche. Mercedes-Benz heads E- and S-Class vehicle segments worldwide in 2004 -- C-Class takes the lead worldwide in mid-year With sales of 1,060,900 automobiles in 2004 (2003: 1,095,000) and a global market share of about 2.3 percent, Mercedes-Benz maintained its position as the world's best-selling premium brand. "With five market launches, 2004 was a year in which Mercedes-Benz set the course for the future," says Dr. Eckhard Cordes, Member of the Board of Management of DaimlerChrysler AG, responsible for the Mercedes Car Group. "The unanimously positive customer response to our new models and the strong sales increase in the past few months are clear indications that we have taken the right path." According to Cordes, the basis for further substantial growth will be created in 2005 when the new M- and S-Classes and the new sports tourer family (R- and B-Class) are launched. The new A-Class got off to an excellent start and contributed strongly to the record sales of Mercedes-Benz in December 2004 [105,600 passenger cars, up 17 percent]. 52,700 vehicles have been delivered to customers in Europe since the automobile made its market debut in mid-September 2004. The car's main sales markets are Germany, Italy, France, and Spain, all of which contributed to the positive A-Class result by posting record sales figures. Additional sales potential will be generated by the introduction of the right-hand-drive version in the high-volume markets of the UK and Japan, as well as by the launch of a variant with automatic transmission at the beginning of 2005. In the C-Class vehicle segment, Mercedes-Benz took the global lead only a few weeks after the next-generation C-Class was released for sale. All in all, demand for the C-Class family of automobiles rose in 2004 by five percent to 470,400 units (2003: 446,600). In addition, sales of the SLK roadster more than doubled in 2004 to 52,100 units. The latest confirmation of Mercedes-Benz' successful market strategy was provided by the new CLS-Class four-door coupe: 6,700 units have been delivered since the coupe went on sale at the beginning of October 2004. The result is about 30 percent higher than had been expected for the first sales year. The E-Class meanwhile was once again the world's best-selling upper-range vehicle in 2004, with sales of 287,100 units. The station wagon model, which achieved record sales of 53,900 vehicles, made a particularly large contribution to this positive result. With global market shares of 37 percent for the station wagon and 31 percent for the sedan, the two E-Class variants clearly dominate their respective market segments. In its final year before the introduction of a new model, the S-Class clearly held the top position in the luxury segment against its significantly younger competitors. With sales of 84,100 units and a global market share of 35 percent, the Mercedes-Benz flagship continued to be by far the most sought-after luxury car in the world even in the final year of its lifecycle. Despite increasing competition in the market for sport utility vehicles, the Mercedes-Benz M-Class more than held its own in the eighth year since its market launch, and 70,200 units were sold worldwide in 2004 (2003: 79,900). As a result, a total of 623,500 customers have opted for an M-Class vehicle since 1997. At 6,600 units (2003: 7,000), demand for the Mercedes-Benz G-Class, the classic among all-terrain vehicles, remained high 25 years after production began. MBUSA posts eleventh record-breaking year in a row Boosted by a record increase of 23 percent in December, MBUSA posted its eleventh record-breaking year in a row in 2004, with sales rising from 218,700 to 221,600 passenger cars. The best sales figures ever for the C-Class (69,300 units, up five percent) and E-Class (59,000 units, up six percent) as well as the record demand for coupes and convertibles especially contributed to Mercedes-Benz' sustained sales success and to its leading position in the luxury car segment in the U.S. in 2004. Buoyed by high growth in the fourth quarter, Mercedes-Benz sold a total of 338,100 passenger cars (2003: 348,600) in Germany in 2004. The brand continues to rank second in Germany with regard to new car registrations, showing a market share of 11.2 percent and the greatest number of sales in the premium segment. In Western Europe as a whole, a series of model changeovers lead to an almost five percent decrease in sales to 667,000 units (2003: 698,700). However, sales are expected to receive a major boost in the coming months, particularly from the introduction of the right-hand-drive version of the A-Class in the UK. In the Asia/Pacific region, DaimlerChrysler delivered a total of 88,400 Mercedes-Benz passenger cars to customers in 2004 (2003: 92,400). With the inclusion of Hong Kong, deliveries to China rose by five percent to the record figure of 11,500 passenger cars. By laying the cornerstone for a new Mercedes-Benz passenger car plant in Beijing in December 2004, DaimlerChrysler and its long-time partner Beijing Automotive Industry Holding Company (BAIC) laid the foundation for long-term growth in China. Moreover, the brand's performance division, Mercedes-AMG, continued to post successes in 2004, selling over 20,000 vehicles worldwide. Half of all AMG models were delivered to customers in the U.S. -- the main sales market for AMG. Maybach and SLR set new standards in the world of luxury automobiles In 2004, the Maybach brand performed well in an economic environment that was challenging for the entire luxury car sector. About 500 Maybach sedans were delivered to customers around the world in the second year since the historic brand's revival. As a result, the Maybach brand accounts for more than one-third of all sales worldwide in this segment. "With the Maybach, we have positioned a brand with tremendous appeal and a rich tradition alongside Mercedes-Benz," says Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes Car Group. "Nearly half of all Maybachs ordered are long wheelbase versions with a large number of extras. This shows us that the customers appreciate our unique individualization service for creating a one-of-a-kind vehicle." Mercedes-Benz ramped up production of the SLR McLaren super sports car as planned in 2004. About 300 units of the super car were delivered to customers worldwide in 2004. Production of the vehicle will be limited to 3,500 units. smart increases customer deliveries by 22 percent The introduction of a third production series for the smart brand, the forfour, in April 2004 led to substantial growth in all markets. Worldwide customer deliveries increased by 22 percent in 2004 to 139,600 units. Sales increased particularly strongly in Spain (7,300 vehicles, up 64 percent), France (13,000 vehicles, up 40 percent) and the UK (11,900 vehicles, up 34 percent). And despite unfavorable economic conditions and a rapidly contracting small-car segment, sales in Germany were up by 18 percent to 48,800 units. With sales of 32,400 units (up ten percent), Italy remains the brand's most important foreign market in Europe. In addition to the product offensive, the company also continued its sales offensive in 2004. The sales network has been expanded to include Canada, Malaysia, Malta, Norway and Romania and now encompasses 36 countries. A particular highlight of this expansion was the introduction of the smart fortwo cdi to the Canadian market in October, where more than 1,000 vehicles have since been sold -- far more than originally expected. Customers have already made prepayments on the entire production output of smart fortwo cdi vehicles scheduled for the first half of the year. The exclusive BRABUS design and equipment line for the smart fortwo and smart roadster has also been very much in demand. The newly introduced BRABUS versions accounted for 12 percent of total smart roadster sales in 2004. In the case of the smart fortwo, the BRABUS line accounted for about two percent of sales, or about the same share as in 2003. An overview of Mercedes Car Group and Chrysler Group sales in 2004 2004 2003 Change in % Mercedes Car Group 1,200,500 1,209,700 - 0.8 of which Mercedes-Benz* 1,060,900 1,095,000 - 3.1 smart 139,600 114,700 + 21.1 Chrysler Group 2,697,300 2,607,000 + 3.5 DaimlerChrysler passenger cars 3,897,800 3,816,700 + 2.1 * incl. Mercedes-Benz AMG and Maybach Additional information on DaimlerChrysler is available on the Internet at: http://www.media.daimlerchrysler.com/ DATASOURCE: DaimlerChrysler CONTACT: Kevin McCormick of DaimlerChrysler, +1-248-512-6218; Eva Guratzsch, DaimlerChrysler Stuttgart, +49-711-17-95133; Toni Melfi, DaimlerChrysler AG, +1-000-222-3333 Web site: http://www.media.daimlerchrysler.com/

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