Alx

DaimlerChrysler has announced today they will be selling their remaining equity interest in the Mitsubishi Motors Corporation.

DaimlerChrysler, who currently owns a 12.4% stake in the company, expects an increase of EUR 500 million (about $600 million) on their financial statement. The proceeds of the sale and impact on financial income will be published after closing, which will take place "by the end of November at the latest."

Despite the sale, DaimlerChrysler and the Mitsubishi Motors Corporation will continue their current cooperation projects, and in the future both companies will look to "renew and extend current projects which are mutually beneficial."

For more info on the sale, you can check out the full press release below.


OFFICIAL PRESS RELEASE


DaimlerChrysler Has Agreed To Sell Its Stake In Mitsubishi Motors Corporation

Stuttgart, Nov 11, 2005

Today, DaimlerChrysler AG has agreed to sell its remaining equity interest in Mitsubishi Motors Corporation (MMC).
DaimlerChrysler’s shareholding in MMC is entered in the balance sheet as a financial investment and currently amounts to 12.4% of MMC’s total capital stock. Due to the complete sale of its shares in MMC, DaimlerChrysler’s financial income in 2005 will improve by approximately €500 million.

Proceeds of the sale and the exact impact on financial income will be published after closing, which will take place by the end of November the latest.

The current cooperation projects of DaimlerChrysler and MMC will not be affected by the disposal, and will continue as previously agreed. Some examples of such projects are the joint development and production of engines, the shared use of vehicle architecture and the joint production of passenger cars, sports utility vehicles and pickup trucks in Europe, North America, China and South Africa.

In addition, DaimlerChrysler and MMC plan to renew and extend current projects which are mutually beneficial.

Today, Dr. Rüdiger Grube resigned from his position on the Board of Directors of Mitsubishi Motors Corporation.

The MMC shares offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This document contains forward-looking statements that reflect management's current views with respect to future events. The words „anticipate,“ „assume,“ „believe,“ „estimate,“ „expect,“ „intend,“ „may,“ „plan,“ „project“ and „should“ and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates, interest rates and in raw material prices; introduction of competing products; increased sales incentives; the successful implementation of the CORE program by the Mercedes Car Group and the new business model for smart; supply interruptions of production materials, resulting from shortages, labor strikes or supplier insolvencies; the resolution of pending governmental investigations; and decline in resale prices of used vehicles. If any of these or other risks and uncertainties occur (some of which are described under the heading "Risk Report" in DaimlerChrysler's most recent Annual Report and under the heading "Risk Factors" in DaimlerChrysler’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission), or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.


Copyright © 2005, DaimlerChrysler AG

Curb Zone

 

Alx

Dont know if i agree, Mitsubishi is on the step up, and has some great product in the works. Seems like it isnt the greatest time to get out. Curious as to the real motive of this decision.

I hope its not that MB really need the money.

NSL

OMG! They are reading these forums!!!

Alx

No surprise, these forums are big participants in many decision making process with big brands, it takes a little word to mouth to blow up an issue, that gets higher attention from manufacturers, and truthfully influences many outcomes.

BMW_Dude

It seems wierd to me as well!

A couple of years ago, it seemed like MMC and DC were going to stay together, they were making new products like the Colt and ForFour, but it's all suddenly stopped, I wonder if something has happened!

Yannis

Now that you mentioned Forfour and Colt is strange cause while Colt is being praised by the car press it's quite the opposite for Forfour which is said to be too expensive and uncomfortable. Mitsubishi managed to make a better use of the common platform it seems.

NSL

LOL 1 down 7 to go... j/k (well maybe not! ) http://www.germancarzone.com/showpos...7&postcount=34

Giannis

how do you know that?

PS. i didn't read the press release

cawimmer430

BMW reads the Car and Driver Forums for sure. I once posted a picture of Chris Bangle's house in Germany which I took myself and the next day, I got an email from BMW Security Services and they threatened to sue me for disturbing the privacy of their designer if I didn't remove the pic within a 24 hour period.

mrnet_01

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