March 11, 2005

DaimlerChrysler and Mitsubishi reach deal on cover-up scandal

Tokyo, Japan – Mitsubishi Motors Corp. announced that it had settled with DaimlerChrysler AG on compensation for a costly defect cover-up and recall scandal at Mitsubishi’s truck unit.

The deal includes an undisclosed cash payment, and transfer of Mitsubishi Motors’ 20 per cent stake in the truck company to DaimlerChrysler.

In March 2003 and March 2004, DaimlerChrysler acquired a total of 65 per cent of the commercial division. Following this, a systematic cover-up of defects emerged, even though Mitsubishi Motors had promised to “come clean” after the wrongdoing was first disclosed in 2000. Last year, DaimlerChrysler ended its cash infusions to bail out the troubled company, which saw its sales plunge after the recurring recall scandals.

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