Jim Holden and Tom Stallkamp with the
Dodge Quad Ram

Photo: DaimlerChrysler

"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. ISO-9002 registration was achieved following an extensive audit of the Plant's processes by Underwriters Laboratories, an independent quality register based in Chicago.

Also attending the program at the Plant this morning were UAW Vice President Jack Laskowski; Missouri Governor Mel Carnahan; State Representative Jim Murphy; St. Louis, Mo., Mayor Clarence Harmon; Fenton, Mo., Mayor Fran Ruzika; Ronnie Bryant, Sr., Vice President - Economic Development, St. Louis Regional Commerce and Growth Association; 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 of 1995. The plant currently employs approximately 3,000 employees and produces 592 vehicles per day on two shifts. A total of 511,487 Dodge Rams have been built at the facility since 1995.

Renault Megan

Photo: Renault

In the framework of its strategy of international development and profitable growth, Renault has chosen to begin, in cooperation with the City of Moscow, the first operational phase of its project in Russia. Renault, which is adapting the timetable for this project to the evolution of the economic crisis that first struck Russia in August 1998, is thus expressing its confidence in the potential recovery of the Russian economy.

Production will be carried out, in the initial stage, in premises leased from Moskvitch, whose majority owner is the City of Moscow. The two partners are planning production of about 2,000 vehicles in 1999 and 8,000 in the year 2000. The present schedule calls for the handover of Avtoframos' own buildings in the second half of 2000. They will initially consist of a complete assembly facility. A body shop and an ultramodern paint shop should be added in 2001: these new facilities will be designed in such a way as to allow gradual integration. This first step will lead to an acceleration in the training of Avtoframos personnel in the international Renault methods and quality standards. More than 100,000 man-hours of training are planned for the next three years. At present, there are about 100 employees, and that number should rise to roughly 600 next year. Also in this first phase, Avtoframos will accelerate the building of a network of suppliers who meet the international Renault criteria of quality, competitiveness and performance.

In addition, Avtoframos will be in charge of the development of a sales and after-sales network for Renault vehicles, whether they are made locally or imported. Customer service is a vital element in the Avtoframos commercial policy and, in that context, the company has recently opened in Moscow a national parts warehouse to guarantee the immediate availability of components for the commercial network. A Renault training centre for network employees will be operational by next June.

The Renault Mégane will be offered in two engine versions and with three levels of equipment. From May 1999, the price of the best selling model will be set at $14,900.

The capital expenditures committed by the two partners are, at this stage of the project, still modest. Renault and the City of Moscow created the Avtoframos entity with an initial capital of 124 million rubles (about $5 million/FRF 31.2 million/4.7 million euros) . That investment covered the preparation of manufacturing premises, initiation of operations, and the creation of the national parts warehouse and the Renault training centre. The next phase, which will call for heavier capital expenditures and more substantial facilities, is to be the object of a so-called "complementary" agreement with the Moscow administration, and an investment convention with the government of the Russian Federation. This complementary agreement, which will stipulate the rules for the functioning of the cooperative arrangements between the partners, is now in the process of being drawn up with the City of Moscow. Discussions are underway with the government of the Russian Federation relating to the preparation and signature of the investment convention. This convention will grant Avtoframos a temporary exemption from customs duties on imports of vehicles, parts and capital goods, which, in view of the investments, is necessary to assure the soundness of the company. The Moscow Duma has approved exemptions from local taxes which can benefit Avtoframos.

If the present timetable is followed, the capital expenditures, of about $420 million, will be quickly begun. The major investment phase will be between 1999 and 2000.

With a giant market share of over 80 per cent of motor vehicles exported out of Kenya and over 20 per cent of the domestic commercial vehicle segment in Kenya, General Motors Kenya Limited is not only the Comesa region's largest distributor of motor vehicles, but also one of the fastest growing providers of jobs in the region.

The company has created about 3,000 jobs in Kenya and over 500 jobs in the export markets of Uganda, Tanzania, Ethiopia, Rwanda, Burundi, Democratic Republic of Congo, Zambia, Zimbabwe, Malawi and Mozambique.