Modernization of St. Louis Plant

DaimlerChrysler Announces $435 Million Modernization and Expansion Program
at St. Louis-North Assembly

Jim Holden and Tom Stallkamp with the Dodge Quad Ram

DaimlerChrysler Corporation has announced a $435 million modernization and expansion program at its St. Louis-North Assembly Plant in Fenton, Mo. The manufacturing facility has been home to production of the popular Dodge Ram Quad Cab pickup since the fall of 1997.

The modernization and expansion program includes an all-new, $317 million body shop and an all-new, $118 million color spray booth in the paint shop. An additional 311,000 square feet will be added to the body shop. That new space will allow new manufacturing processes designed to improve flexibility, productivity and quality. The color spray booth will be the second in operation in the plant's paint shop, and will offer increased volume and quality opportunities.

"The $435 million investment clearly represents DaimlerChrysler's commitment not only to our workforce, but also the entire St. Louis regional community," said Gary L. Henson, Senior Vice President - Manufacturing, DaimlerChrysler Corporation. "The new technologies, process improvements and infrastructure upgrades are also evidence of our continuing effort to improve the quality and competitiveness of the Dodge Ram Quad Cab at St. Louis-North Assembly."

The announcement was made this morning during a program to celebrate the Plant's full ISO-9002 registration, the internationally-recognized standard for business practices. Among the attendees were United Auto Workers Vice President Jack Laskowski, Missouri Governor Mel Carnahan and several other local dignitaries.

"Decisions like this are made on the basis of sound business analysis and solid economic fact," said Jim Nihls, Plant Manager, St. Louis-North Assembly and a board member of the St. Louis Regional Commerce and Growth Association. "It says to the world that St. Louis is a great city in which to work, live and conduct business."

Production of the Dodge Ram Quad Cab, the first extended cab full-size pickup with four doors, started at St. Louis-North at the beginning of the 1998 model year. Sales of the Quad Cab version of the Dodge Ram now account for 65 percent of the model mix, and are up seven percent during the 1999 calendar year.

The St. Louis-North Assembly Plant was built in 1966. The facility produced Chrysler minivans from 1987 through February 1995, before going through a $350 million conversion process to Dodge Ram pickup truck production in August 1995. A total of 511,487 Dodge Rams have been built at the facility since 1995. The plant currently employs approximately 3,000 employees and produces 592 vehicles per day on two shifts.