Mercedes-AMG Introduces New Models and an Expanded Plant

Stuttgart, Germany, October 17, 2002

Mercedes-AMG GmbH continues on the road to success that began 35 years ago in Burgstall near Stuttgart by introducing two new performance vehicles - the E 55 AMG and the C 30 CDI AMG - as well as the AMG versions of the updated S- and CL-Classes. "The current model lineup puts us in an excellent position worldwide to meet our customers' expectations with regard to Mercedes-Benz brand AMG performance vehicles," says Prof. Jürgen Hubbert, DaimlerChrysler Board of Management member responsible for Mercedes-Benz Passenger Cars & smart. "By expanding the Affalterbach location, we will continue to be able to meet the increasing worldwide demand for AMG vehicles."

Engine assembly according to the production philosophy of "one man, one engine"

The main part of the plant expansion is the new engine assembly area, where high-performance AMG drive systems are manufactured according to the production philosophy of "one man, one engine." Each engine is assembled by a single technician, who indicates his or her responsibility for the drive unit by adding his or her signature to the completed engine. The plant manufactures both gasoline and CDI diesel engines and currently has the capacity to produce between 80 and 100 engines a day in one shift. "Engine assembly at the plant is very flexible, allowing us to adjust to changing market requirements at any time," explains Ulrich Bruhnke, Chairman of the Managing Board of Mercedes-AMG GmbH. As part of the expansion measures, the plant also received a new, impressive showroom, whose architecturally appealing steel and glass design now makes it possible to present the AMG vehicles in an appropriate manner. In addition, two new development buildings are being constructed next to the showroom. The plant expansion, which thus far has cost around €20 million, will more than double the useful area from 18,500 to almost 40,000 sq. meters after all construction measures are completed.

Mercedes-AMG GmbH is DaimlerChrysler's performance division for the Mercedes-Benz brand. Originally established in 1967 as a motor sports and tuning company, AMG is today a supplier of exclusive high-performance automobiles. AMG products have been sold at Mercedes-Benz dealerships and sales partners since 1990. On January 1, 1999 AMG co-founder Hans Werner Aufrecht sold the majority of the company to DaimlerChrysler AG, which now holds a 51 percent share of Mercedes-AMG GmbH. In 2001, Mercedes-AMG GmbH posted the highest sales in its history, with deliveries increasing by 60 percent on the year before to 18,700 units. In 2001, revenues rose to €428 million. Mercedes-AMG GmbH currently employs around 580 men and women.

At 350 kW (476 hp), the E 55 AMG is the most powerful Mercedes-Benz E-Class of all time. The car hit showrooms at Mercedes-Benz dealerships and contract dealers in October. The first high-performance diesel sports car, the C 30 CDI AMG, will be available beginning in February 2003. The automobile is powered by a 170 kW (231 hp) engine.