DaimlerChrysler's GEM Takes Leadership in Establishing Market for Neighborhood Electric Vehicles

• 28,000 GEMs in Use Nationwide
  
• Clean, Quiet, Convenient and Cost Effective Transportation
  
• Small Vehicles Have Big Impact in Improving Air Quality

New York , Jan. 15, 2004

The company, part of DaimlerChrysler and located in Fargo, N.D., is the maker of GEM neighborhood electric vehicles.

About 28,000 GEMs are in use across the United States and internationally, in settings such as master planned communities, military bases, city, state and national parks, industrial developments, central cities, airports, and college and university campuses.

“GEMs provide clean, quiet, convenient and cost-effective transportation in environmentally sensitive settings,” said Rick Kasper, President and COO of GEM, in remarks to the International Motor Press Association in New York.

“We have established DaimlerChrysler as the clear industry leader in this segment, and we see strong growth continuing in our key markets,” Kasper said.

GEM vehicles are street-legal in most states where they can be driven on roadways posted up to 35 mph. The vehicles have a top speed of 25 mph and meet all safety standards established by the Federal government for Low Speed Vehicles, including Neighborhood Electric Vehicles.

GEMs are recognized as Zero Emission Vehicles by California, New York and other ZEV mandate states, and the vehicles are part of DaimlerChrysler’s ZEV mandate compliance plans.

“Our research shows that GEM owners use the vehicles to replace their conventional cars and trucks for the most polluting trips – a short drive with a cold vehicle,” Kasper said.

“That’s why GEMs are having an impact in the real world in improving air quality.”

Kasper also noted that GEMs are part of DaimlerChrysler’s comprehensive approach to cleaner vehicles, which includes:

• Improved internal combustion engines and powertrains.
  
• Alternate fuel vehicles, including more than 1 million vehicles that can be operated on E85 fuel made from renewable ethanol.
  
• Diesels, including the Jeep Liberty SUV and Mercedes-Benz E 320 to be marketed in the United States in 2004.
  
• Hybrid electric vehicles, beginning with the Dodge Ram Quad Cab diesel electric hybrid vehicle to be marketed in late 2004 and the Orion VII diesel electric hybrid buses being delivered to New York City.
  
• Fuel cell vehicles. DaimlerChrysler will have real world experience with more than 100 of these advanced technology vehicles by the end of 2004.

“As we enter our seventh year, we have made great progress in building a sustainable, profitable business with strong market potential for the future,” Kasper said.

“But perhaps more importantly, we are proud of our role in establishing a new market niche for electric vehicles with the potential to make significant contributions to cleaner air in some of our most environmentally sensitive areas.”

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