April 23, 2004

DaimlerChrysler withdraws financial support for Mitsubishi Motors

Stuttgart, Germany – DaimlerChrysler has decided not to invest any more money in money-losing Japanese automaker, Mitsubishi Motors. DaimlerChrysler owns 37% of Mitsubishi.

“Together with the major shareholders of the Mitsubishi Group, DaimlerChrysler has tried hard to establish a solid financial structure. However, it was not possible to find a solution leading to an acceptable result for DaimlerChrysler,” said a company news release.

Without DaimlerChrysler’s financial support, the future of Japan’s fourth largest automaker is in doubt unless another partner steps up to the plate. As well, DaimlerChrysler’s attempt to establish a partnership in Asia has suffered a serious setback. Future joint DaimlerChrysler/Mitsubishi projects, such as the Mitsubishi-designed replacement for the Dodge Neon/SX 2.0, may be in jeopardy.

Connect with Autos.ca