Automotive Intelligence

News of  September 07, 1999


Page 1 of 4

Postage stamp celebrates Mustang
HOUSTON, Sept. 3, 1999 – The 35th birthday party just goes on and on for Ford Mustang. The U.S. Postal Service today unveiled a 33-cent stamp featuring the 1964 Mustang. The wraps came off the Mustang commemorative stamp at the Lone Star Grand National Car Show in Houston, hosted by that city's Mustang Club. The stamp is one of 15 saluting the 1960s as part of the postal service's "Celebrate the Century" program to honor the people, places, events and trends of each decade of this century.

Mustang was introduced 35 years ago at the New York World's Fair. It proved to be a vehicle that changed the course of the American auto industry – transportation with the attributes of a sports car, yet with a simple design and value for the money.


Photo: Ford

Mustang was an immediate hit, with its long hood and short deck and $2,368 base-price tag. About 22,000 orders were taken the first day Mustang went on sale, and more than 7 million have been sold since. Through August, 1999 Mustang sales were running 22.5 percent ahead of the 1998 pace.

The commemorative stamp is just the latest specialty item marking the success of Mustang. Memorabilia available for the 35th-anniversary year include a 35-piece trading card set; press sheets featuring the trading cards; a poster depicting the first Mustang and the 1999 version; a Mustang Edition Monopoly game; and Midtown Madness, an interactive CD-ROM game featuring the Mustang.

Mustang was among 15 stamps selected during public balloting for stamps to mark the 1960s. The others are man walks on the moon; Super Bowl I; the peace symbol; "I Have a Dream;" the Green Bay Packers; the Beatles; the Vietnam War; the Barbie doll; Roger Maris; the integrated circuit; lasers; Woodstock; Star Trek; and the Peace Corps. The Mustang commemorative stamp was illustrated, featuring a 1964 red convertible, by Keith Birdsong of Muskogee, Okla. It will be dedicated along with the other 1960s stamps Sept. 17 in Green Bay, Wis., and will be available at post offices nationwide.


DaimlerChrysler Continues Powertrain Modernization with $624 Million Investment at Kenosha Engine
Kenosha, Wis., August 31, 1999 - DaimlerChrysler Corporation confirmed today a $624 million modernization and expansion program at its Kenosha engine plant in Kenosha, Wis. The program brings recent investment totals in the Corporation's powertrain operations to over $3.5 billion since 1997.The investment includes a 500,000-square-foot addition to the facility for a new engine line, and will result in a slight increase in employment levels. The announcement was made during Wisconsin Governor Tommy Thompson's annual tour of the plant.

The Kenosha program continues DaimlerChrysler's recent efforts to modernize its powertrain operations in North America. Last year, the Corporation opened a new $1.1 billion transmission facility in Kokomo, Ind., and a new $930 million V-8 engine plant on Mack Avenue in Detroit.

In addition, DaimlerChrysler is currently building a new $750 million V-6 engine plant next to the V-8 facility, and recently committed $261 million to upgrade its Trenton, Mich., engine plant. "The technological advancements, process improvements and infrastructure upgrades represent our continuing efforts to improve the quality and cost-competitiveness of our powertrain operations," said Richard O. Schaum, Senior Vice President -- Powertrain Operations, DaimlerChrysler Corporation. "It also reaffirms our formula for success in North America – by reinvesting in our existing facilities and the communities where we do business."

During the 1990s, DaimlerChrysler has added more than 14,000 UAW-represented hourly workers to its payroll, a 25-percent increase to over 69,000 in the United States. The Kenosha Engine Plant currently produces 2.5-liter I-4 and 4.0-liter I-6 rear-wheel-drive and 2.7-liter V-6 front-wheel-drive engines. The 1.3 million square-foot facility currently employs approximately 2,000 workers.


Volvo's Board Of Directors Approves New Issue Of Shares
In connection with Volvo's public offer to Scania's shareholders, Volvo's Board of Directors, subject to approval of an extraordinary shareholders' meeting, has approved a new issue of shares whereby the company's share capital is to be increased by a maximum of SEK 578,689,464.
September 2, 1999 - The proposed increase in share capital is conditional on Volvo obtaining any required approval of regulatory authorities for the acquisition of the shares in Scania pursuant to conditions acceptable to Volvo. However, the Board shall have the right to waive, in whole or in part, this condition.

New shares may be subscribed for by Scania's shareholders during the period from October 4 through November 4, 1999. However, the Board of Directors shall be entitled to extend the subscription period. A prospectus for Scania's shareholders describing Volvo's public offer to acquire Scania is intended to be released on September 28. Volvo's public offer to Scania's shareholders is not being made, directly or indirectly, in or into, and will not be permitted to be accepted in or from the United States.

An extraordinary shareholders' meeting of AB Volvo will be held Wednesday, September 29, 1999. On or about September 15, 1999, shareholders of Volvo who are directly registered with VPC will be sent an information brochure regarding the acquisition of Scania.

Volvo's nominating committee has decided to propose to the extraordinary shareholders' meeting that Marcus Wallenberg be elected a new member of Volvo's Board of Directors. The resolution regarding the election of Marcus Wallenberg as a member of the Board of Directors will be effective when the transaction between Investor and Volvo has been accomplished.

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