300C Production in Europe----kind of long

AUBURN HILLS, Mich., Oct. 27 /PRNewswire-FirstCall/ -- After confirming
ratification of a third shift agreement at Brampton (Ontario) Assembly
Plant, Chrysler Group and Magna Steyr today announced plans to grow
their production relationship by forming a manufacturing agreement for
the Chrysler 300C Touring and Sedan vehicles for European and
rest-of-the-world distribution.

Magna Steyr's Graz, Austria facility will add the rear-wheel-drive and
all- wheel-drive vehicles to its Chrysler Group production line up that
currently includes the Jeep® Grand Cherokee and the Chrysler Voyager.

"Since the introduction of the Chrysler 300C Touring and Sedan in
markets outside of North America, the public response to the vehicles
has been greater than we expected. For next year, demand from the
markets is far beyond our original projections," said Dieter Zetsche,
Chrysler Group President and Chief Executive Officer. "The production
launch next year at Magna Steyr will enable us to have 300Cs on the
ground quickly to meet growing market demand from a facility that has
proven its expertise in building quality vehicles for world markets."

Magna Steyr will assemble the various offerings of the Chrysler 300C
Touring and Sedan, including: left- and right-hand drive versions; a
high- performance version -- the SRT-8; and a diesel-powered model that
will launch in late 2005. The vehicles will be assembled in the same
facility as the Grand Cherokee and Voyager, showcasing Magna's
production flexibility.

"Magna Steyr is proud that the Chrysler 300C program will continue and
extend our excellent and long-standing partnership," said Manfred
Remmel, President and Chief Executive Officer - Magna Steyr. "In doing
so, Chrysler Group is building upon Magna Steyr's proven capabilities to
support our automotive partners as well as meet the quickly changing
market needs in a flexible and competent way."

The Brampton (Ontario) Assembly Plant in Canada is currently the only
production location for the Chrysler 300 Sedan and Touring and Dodge
Magnum, and soon-to-be-launched Dodge Charger. By adding a second
production site for the Chrysler 300 family, Chrysler Group will be able
to satisfy demand in Europe and rest-of-the-world markets, while not
compromising its ability to deliver more vehicles to North America,
where demand is the highest.

Chrysler Group's manufacturing strategy for its rear-wheel-drive
vehicles underscores an ongoing commitment to the implementation of
innovative forms of flexibility. Today's announcement demonstrates
another example of Business Model Flexibility, which enables the company
to start production of the 300C outside North America without tying up
additional capital for tooling and equipment. It also minimizes costly
issues associated with importing vehicles into various markets
worldwide, including distribution.

The Chrysler 300 family solidifies the brand presence in over a hundred
markets worldwide. It offers customers an expressive Chrysler design and
personality, an all-new platform with world-class, rear-wheel and
all-wheel drive technology, and exceptional interior driver and
passenger space.

The 300 series offers the most powerful line of engines in its class,
including a fuel-efficient 2.7-liter V-6, 3.5-liter High-Output V-6,
culminating in the 5.7 liter HEMI® V-8. It also features cylinder
deactivation called Multi-Displacement System (MDS), providing the HEMI
power customers want with the fuel economy they will appreciate.

More than 105,000 Chrysler 300 and Dodge Magnum vehicles have been sold
so far this year. The Chrysler 300 commands 40 percent of the Canadian
luxury full-size vehicle segment and more than 30 percent of the U.S.
luxury full- size car segment, since its introduction.

Magna Steyr is a leading engineering and manufacturing partner to the
automotive industry's original equipment manufacturers (OEMs). The
wholly owned group of Magna International Inc. is also the world's
leading supplier of OEM contract vehicle assembly. Magna designs,
develops and manufactures automotive systems, assemblies, modules and
components. It also engineers and assembles complete vehicles for the
North American, European, South American and Asian markets. Magna has
approximately 81,000 employees in 217 manufacturing operations and 49
product development and engineering centers in 22 countries.