DaimlerChrysler Plans Mitsubishi Takeover

15 April 2004

DaimlerChrysler is reportedly preparing to take majority control of ailing Japanese car firm Mitsubishi Motors.

The German-American auto titan currently holds a 37% stake in Mitsubishi. It is expected to announce later this month that it will pay $3.8 billion (€3.2bn; £2.1bn) towards a bailout of the Japanese manufacturer and raise its holding above 50%.

The planned rescue package is said to be worth $6.6bn in total, the remaining cash coming from shareholders such as Bank of Tokyo-Mitsubishi and Mitsubishi Heavy Industries, plus extra loans.

The struggling car maker made an estimated loss of $686 million in the twelve months to March 31, taking its total losses over the last seven years to $3bn.

Data sourced from: USA Today; additional content by WARC staff