DaimlerChrysler pulls out of Mitsubishi
STUTTGART, Germany DaimlerChrysler AG announced today it was giving up its stake in Mitsubishi Motors, according to a Reuters report. The company said it would not participate in a rescue capital increase planned by Mitsubishi, nor would it provide any further financial support to the ailing automaker. Mitsubishi had been working out a restructuring plan with DaimlerChrysler expected to total around $6.6 billion. It had been expected that the German-U.S. automaker would take a majority stake in the business next year, according to Mitsubishi sources. Details of those plans were to be announced on April 30.But after a meeting of DaimlerChrysler supervisory and management boards on Thursday, a company spokesperson told Reuters that their 37 percent stake would be booked as discontinued business until a buyer could be found. Daimler acquired a 37 percent stake in Mitsubishi four year ago. Mitsubishi is expecting net losses of 72 billion yen for the business year that ended March 31, compared with a profit of 37.36 billion yen the year before.