Formal Closing of the 'Daimler Hero Motor Corporation' Joint Venture

- Contract-signing ceremony in Delhi, India

STUTTGART, Germany and DELHI, India, April 21 /PRNewswire-FirstCall/ --
The Indian Hero Group and Daimler AG (stock exchange abbreviation DAI) signed
a contract today in Delhi that governs the establishment of the Daimler Hero
Motor Corporation Ltd. commercial vehicle joint venture. Approval for the new
company was issued by the Indian government in March 2008, and the two
partners now plan to proceed rapidly with the implementation of the joint
venture.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080409/NYW017LOGO )
The Daimler Hero Motor Corporation will initially produce light, medium,
and heavy-duty commercial vehicles for the Indian volume market under a new
brand name. The search for a suitable production location is currently under
way. Negotiations are being conducted with three Indian states. The talks are
expected to conclude shortly.
Once a decision is made, construction will begin on a plant that will
start manufacturing commercial vehicles in 2010. The new company is aiming to
achieve a localization rate of up to 80% in order to optimally utilize cost
advantages. Production of commercial vehicles for export to other emerging
markets will be launched at a later date.
The total investment of the German-Indian joint venture will be over euro
700 million over the next five years. The equity of Daimler and the Hero
Group into the new company will be in sum euro 360 million; thereof Daimler
will contribute euro 220 million in the form of foreign direct investment.
Marc Llistosella, who directed the joint venture project from the Daimler
side, will become CEO of the Daimler Hero Motor Corporation. Amit Chaturvedi,
currently President, Strategy and Business Development, at Hero Corporate
Service Ltd. and project leader from the Hero Group, will serve as Co-CEO. Mr.
Sunil Kant Munjal will be the Chairman of the new company's Board of
Directors. The company will be managed jointly by the two partners.
"Today is a further important milestone for Daimler Trucks and our Asia
strategy," said Andreas Renschler, member of the Daimler AG Board of
Management and Head of Daimler Trucks. "In the Hero Group we have found an
ideal partner, as the two companies perfectly complement one another in terms
of the experience and expertise they contribute to the joint venture. The fact
that the negotiations and the approval process ran so smoothly makes me very
confident that the establishment of the new company will proceed just as
rapidly and successfully."
"Hero has a proven track record of managing long-term relationships with
business partners. The Daimler Hero Motor Corporation has been conceived as a
long term business by both sides, were we'll be able to contribute our
complementary competences and to learn from each other", Mr. Sunil Kant
Munjal, Chairman of Hero Corporate Service, said. "This joint venture has been
planned against a backdrop where large parts of India are increasingly getting
connected through trade and commerce, so the growth upside in the long term is
strong.''
About Daimler Trucks
Daimler Trucks is a division of Daimler AG and the world's leading truck
manufacturer. Its five leading truck brands - Mercedes-Benz, Freightliner,
Sterling, Western Star, and Mitsubishi Fuso - generated revenues of €28.466
billion in 2007 on sales of more than 467,667 units worldwide.
About the Hero Group
The Hero Group, which was founded more than 50 years ago by the Munjal
family, is now a major conglomerate with numerous divisions and products that
generate annual revenues of over $4 billion. The company has an excellent
network and comprehensive knowledge of the Indian market.
Hero Honda Motors Ltd. - a joint venture between the Hero Group and Honda - is
the world's leading motorcycle manufacturer and has built more than 20 million
motorcycles for the Indian market to date.
Additional information on Daimler, as well as a picture of Andreas
Renschler and Sunil Kant Munjal signing the joint venture contract in Delhi
can be found on the Internet at: www.media.daimler.com
SOURCE Daimler AG

Julia Kroeber-Riel, +49 160 8670400, Han Tjan, +1-212-909-9063, both for
Daimler AG