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Global Alliance for Hybrid Drive Development: Cooperation between BMW, DaimlerChrysler and General Motors

Munich/Stuttgart/Detroit - The BMW Group, DaimlerChrysler AG and General Motors Corporation today signed a "memorandum of understanding" governing the formation of an alliance of equals for the joint development of hybrid drive systems.

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Munich/Stuttgart/Detroit - The BMW Group, DaimlerChrysler AG and General Motors
Corporation today signed a "memorandum of understanding" governing the
formation of an alliance of equals for the joint development of hybrid drive
systems. The three global automakers are cooperating in order to pool their
expertise for the accelerated and efficient development of hybrid drive
systems.

Objective: Development of a two-mode hybrid drive system
The objective is to jointly develop a two-mode hybrid drive system that reduces
fuel consumption while not compromising vehicle capability. While the base
two-mode hybrid design will be common, each company will individually integrate
the hybrid system into the design and manufacturing of vehicles in accordance
with their brand specific requirements.

"The participation of the BMW Group has allowed us to gain another expert
partner for the development of this advanced two-mode hybrid system," says Tom
Stephens, Group Vice President at GM Powertrain. "This cooperation paves the
way for extensive hybrid collaboration among the three companies. We also
continue to discuss additional partners for this alliance."

"By pooling the development expertise of the three automakers - BMW Group,
DaimlerChrysler and General Motors - we are making it possible for all
companies to bring to market appealing vehicles with convincing performance,
comfort and environmental features for the benefit of our customers," says Dr.
Thomas Weber, DaimlerChrysler Board of Management member responsible for
Research and Technology as well as for Development at the Mercedes Car Group.

"The creation of a shared technology platform for hybrid drives will allow us
to more quickly integrate the best technologies on the market and will
therefore exploit and strengthen the innovative potential of all participating
companies," explains Prof. Burkhard Göschel, Board of Management member for
Development and Procurement at BMW AG. "Because the technologies will be
adapted to the individual vehicle models, the participating brands will retain
their distinctive characters."

Joint development center
In Troy, Michigan, the new "GM, DaimlerChrysler and BMW Hybrid Development
Center" will develop the overall modular system and the individual components:
electric motors, high-performance electronics, wiring, safety systems, energy
management, and hybrid system control units. In addition, the Hybrid
Development Center will be responsible for system integration and project
management.

A key factor in ensuring optimum development is the focus on a high bandwidth
architecture system that can be adapted to the needs of the various vehicle
concepts and brands. The extensive sharing of components and production
facilities, and the collaborative relationship with suppliers, will enable the
alliance partners to achieve significant economies of scale and associated cost
advantages, which will also benefit customers, thanks to an outstanding
cost-to-performance ratio.

The two-mode concept
Two-mode hybrid technology further enhances the performance, fuel efficiency
and range of conventional hybrid drive vehicles. In city driving and in
stop-and-go traffic, the vehicles can be powered either by two electric motors
or by the combustion engine, or the two drive systems can be used
simultaneously. Regardless of which type of operation is chosen, the drive
system's fuel saving potential is exploited to maximum effect.

When traveling at high speeds, for example on rural roads and highways, the
two-mode system switches to a different driving mode. The two-mode system
provides a number of benefits even when driving at such constant speeds.
Because the hybrid drive's full power is available when climbing steep
inclines, passing other cars or hauling a trailer, fuel consumption can be
reduced and performance increased even when operating in the second driving
mode.

GM and DaimlerChrysler signed binding, definitive agreements on August 22,
2005. BMW Group today signed a "memorandum of understanding" with the intent
to enter into a definitive agreement with GM and DaimlerChrysler later this
year.

A photo opportunity with Dr. Helmut Panke, CEO of BMW AG, Dr. Dieter Zetsche,
Head of the Mercedes Car Group und G. Richard Wagoner, Jr., CEO of General
Motors Corporation will occur on Monday, September 12, at 17:00 CET in the
Mercedes-Benz exhibit at the IAA.

If you have any questions, please contact:

Richard Gaul - Richard Gaul, Senior Vice President Corporate Affairs, BMW AG,
+49-(0)89-382-24556

Cole Quinnell - Manager Engineering, Technology and Design Communications,
DaimlerChrysler, +1 248 512 0315

Kyle Johnson - Director of Communications, General Motors Powertrain,
+1 248 857 0239

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