DaimlerChrysler wins damages from Mitsubishi

8th February 2005, Comments 0 comments

8 Februrary 2005, STUTTGART - Car giant DaimlerChrysler said on Tuesday that it has resolved its dispute with Mitsubishi Motors Corp. (MMC) over damages from the problems at MMC's former commercial vehicles division Mitsubishi Fuso Truck and Bus Corporation (MFTBC). DaimlerChrysler said the two sides had approved a letter of intent covering compensation to be paid by MMC, with the final agreement expected to be reached in March. The Stuttgart-based company said that the compensation is to include a cash pa

8 Februrary 2005

STUTTGART - Car giant DaimlerChrysler said on Tuesday that it has resolved its dispute with Mitsubishi Motors Corp. (MMC) over damages from the problems at MMC's former commercial vehicles division Mitsubishi Fuso Truck and Bus Corporation (MFTBC).

DaimlerChrysler said the two sides had approved a letter of intent covering compensation to be paid by MMC, with the final agreement expected to be reached in March.

The Stuttgart-based company said that the compensation is to include a cash payment and the transfer of a further 20 percent share of MMC in MFTBC to DaimlerChrysler AG.

In addition, MMC will continue to maintain 100 percent ownership of NedCar, which builds Mitsubishi cars in the Netherlands.

DaimlerChrysler also said that operative cooperation between MMC and MFTBC will continue in various other areas.

In March 2003 and March 2004, DaimlerChrysler AG had acquired a total 65 percent share in MFTBC, the former commercial vehicle division of MMC.

The announcement did not specify the value of the envisaged settlement of the compensation resulting from the problems at Fuso when the company was embroiled in controversy over cover-ups of defects and recalls of vehicles.

But the financial news service dpa-AFX learned from company sources that the damage payment could be as high as EUR 500 million.

DaimlerChrysler's claims against MMC came after the Japanese firm admitted to covering up the problems it had been having with Fuso trucks before the German-American company bought into MFTBC.

DaimlerChrysler purchased a 43 percent stake in Fuso in March 2003, with the holding raised to 65 percent in 2004.

DPA

Subject: German news

 

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