DaimlerChrysler's MTU subsidiary (MTU North America, Inc.) and General Dynamics Land Systems announced today the formation of a new joint venture, the Performance Diesels Company, L.L.C. This new entity will capitalize on the strengths of both companies to pursue engine supply contracts for military applications, including the U.S. Army's Abrams-Crusader Common Engine Program.

"We're excited by the opportunities this new organization presents," said Phil Wasinger, the newly appointed president of Performance Diesels and former managing director of MTU Washington. "We feel confident that by drawing on the strengths of both companies, we can furnish the engine platforms needed by 21st-century military forces."

MTU will appoint three of the five members of the Performance Diesels board of directors, while General Dynamics Land Systems will appoint two. The venture will be incorporated in Delaware.

"General Dynamics Land Systems and MTU have collaborated on engine development and integration projects for the Advanced Amphibious Assault Vehicle, the Abrams tank, and main battle tanks for international customers for over six years," said Charles Hall, president of General Dynamics Land Systems. "We look forward to expanding a successful partnership in a way that enhances the products and services we provide our customers." MTU, based in Friedrichshafen, Germany, is the heavy-engine unit of DaimlerChrysler A.G., (NYSE:DCX) one of the world's leading industrial companies. The MT880 family of diesel engines are state-of-the-art diesel engines that have become the engine of choice for many of the world's most recognized modern combat and combat support vehicles. Both the MT881 (V-8) and MT883 (V-12) engines have been certified through NATO 400-hour testing.

General Dynamics Land Systems, based in Sterling Heights, Michigan is a wholly owned subsidiary of General Dynamics Corporation (NYSE:GD). Land Systems has a global business in the development, production, and support of land and amphibious combat vehicles, including production of the AVDS-1790 series diesel engine at its Muskegon, Michigan, Propulsion Systems Center.