Daimler and Bosch to establish joint venture for electric motors

* Development, production, and sales of electric machines for all-electric vehicles
* Production start-up planned for 2012
* Locations in Hildesheim and Stuttgart

Stuttgart – Daimler AG and Robert Bosch GmbH plan to expand their long-standing partnership and cooperate in the development and production of electric motors for all-electric vehicles in Europe. The companies have signed a letter of intent and begun negotiations to establish a 50:50 joint venture, which is likely to be concluded in the first half of 2011.

In pooling their competencies, the two companies aim to accelerate development advances in electric machines as well as to benefit from synergies. According to their letter of intent, joint production should start in 2012. It is envisioned that the electric motors developed will be used in Mercedes-Benz and smart electric vehicles from 2012. Subsequent sales to other automakers are to be handled by Bosch. The joint activities are planned to be located in the greater Stuttgart area and in Hildesheim, Northern Germany.

The Bosch Group is a leading supplier of technology and services. As a leading automotive supplier it has a high level of competence in developing and producing electric motors, which it is already manufacturing in series in Hildesheim.

The automotive manufacturer Daimler has built up 20 years of experience in the area of electric vehicles as well as in the key components electric motor and battery, giving it a comprehensive understanding of how results can be best achieved in this field.

Additional information on Daimler and Bosch is available online at: www.media.daimler.com and www.bosch-presse.de

About Daimler
The founders of the company, namely Messrs. Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in 1886. Currently celebrating its 125th anniversary, Daimler AG remains one of the most successful automotive companies in the world. The vehicle manufacturer is, thanks to its Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services Divisions, one of the largest suppliers of premium passenger cars and the largest established commercial vehicle manufacturer in the world. Daimler Financial Services offers a comprehensive range of appropriate services, including financing, leasing, insurance and fleet management. As the trailblazer of the automotive industry, Daimler continues, even today, to shape the future of mobility: The Daimler Group is, in this connection, focusing on innovative and green technologies as well as safe and high-quality vehicles, which continue to fascinate and delight their customers. Daimler is the only automotive manufacturer investing in the development of all three different alternative drive systems, namely hybrid drives, electric motors and fuel cells, with the goal of enabling zero-emission driving in the long-term. This is because Daimler sees it as its birthright and obligation to fulfill its responsibility towards society and the environment. Daimler sells its vehicles and makes available its services in almost all countries around the world and has manufacturing plants on five continents. The current brand portfolio includes, in addition to Mercedes-Benz, which is the most valuable automotive brand in the world, the brands smart, Maybach, Freightliner, Western Star, BharatBenz, Fuso, Setra, Orion and Thomas Built Buses. The Group is also listed on the Frankfurt and Stuttgart stock exchanges (stock exchange abbreviation DAI). The Group, which has over 260,000 employees, sold 1.9 m vehicles in 2010. The turnover was €97.8 bn, while the EBIT was €7.3 bn.

About Bosch
The Bosch Group is a leading global supplier of technology and services. According to preliminary figures, some 283,500 associates generated sales of 47.3 billion euros in the areas of automotive and industrial technology, consumer goods, and building technology in fiscal 2010. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent some four billion euros for research and development in 2010, and applied for over 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.

Bosch is celebrating its 125th anniversary in 2011. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as a “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

Additional information can be accessed at www.bosch.com, www.bosch-press.com, www.125.bosch.com.