graphic
News > International
Daimler reopens Japan talks
September 4, 2000: 6:55 a.m. ET

German automaker may raise Mitsubishi stake to 40%, report says
graphic
graphic graphic
graphic
LONDON (CNNfn) - DaimlerChrysler AG, the world's fifth-largest automaker, said Monday it's in talks with Mitsubishi Motors Corp. about the future of its alliance, after the Japanese company admitted covering up customer complaints over the past two decades.

Germany's DaimlerChrysler will raise its stake in Mitsubishi to 40 percent and take a fourth seat on the board, according to Japan's NHK public television news. The Stuttgart-based automaker agreed in March to buy 34 percent for about $1.9 billion.

"We are in talks about the future of our alliance," DaimlerChysler told CNNfn. The talks were "very fruitful and are progressing in a cooperative spirit." Daimler declined to comment on the report that it planned to take a bigger stake in Mitsubishi than it first agreed.

graphicThe admission by Japan's fourth-largest carmaker that it systematically covered up customer complaints for more than 20 years, has put pressure on company President Katsuhiko Kawasoe to resign, and forced Mitsubishi to recall more than 1 million cars.

DaimlerChrysler board members Eckhard Cordes and Manfred Bischoff have traveled to Tokyo to discuss the crisis at its Japanese partner and are trying to cut the 2.1 billion ($1.9 billion) price paid for the initial stake, media reports said.

DaimlerChrysler's offer was worth ¥450 ($4.25) per share. Mitsubishi Motors shares rose ¥9, or 2.6 percent, to end the session at ¥349 in Tokyo, but are still down 26 percent in value since the scandal surfaced in mid-July. Shares in DaimlerChrysler (DCX) rose 1.2 percent to 58.65 in midday trading in Frankfurt.

Mitsubishi group companies, which are also major shareholders in the Japanese automaker, will not oppose any move by DaimlerChrysler to boost its holding, Minoru Makihara, chairman of trading company Mitsubishi Corp. told reporters.

Mitsubishi group companies' combined holding in Mitsubishi Motors is expected to fall to 33 percent from 48 percent with DaimlerChrysler's purchase of a 34 percent stake, which is to be completed by the end of November. That stake will be enough to give the German company veto power over boardroom decisions at Mitsubishi Motors. Back to top

--from staff and wire reports

  RELATED STORIES

Daimler looking to rework Mitsubishi alliance? - Sep. 1, 2000

Mitsubishi recalls in U.S. - Aug. 22, 2000

Daimler ties Hyundai deal - Jun. 26, 2000

Daimler buys Mitsubishi stake - Mar. 27, 2000

  RELATED SITES

DaimlerChrysler

Mitsubishi Motors


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.