DaimlerChrysler's Chrysler, Mitsubishi May Cooperate on Pickups

Auburn Hills, Michigan, April 3 Bloomberg News is reportiung that DaimlerChrysler AG's Chrysler unit and Mitsubishi Motors Corp. affiliate may build small pickup trucks together, extending a cost-cutting effort that already includes cooperating on some cars.

Chrysler and the Japanese automaker, which is 37 percent- owned by DaimlerChrysler, will decide this year whether to go ahead with the joint pickup project, said Richard Schaum, the U.S.- based unit's executive vice president of engineering.

``It will be a tough business case to justify,'' Schaum said in an interview at the New York International Auto Show last week. Still, ``it's something we wanted to study'' after agreeing to cooperate on development of small cars and sedans, he said.

DaimlerChrysler is trying to save money by sharing parts among its Chrysler, Mercedes-Benz and Freightliner units and affiliates Mitsubishi and Hyundai Motor Co. The Stuttgart, Germany- based company had a loss of 662 million euros ($583 million) last year, including reorganization costs at Chrysler, Mitsubishi and the Freightliner truck unit.

Chrysler and Mitsubishi have agreed to jointly engineer the next versions of the Mitsubishi Lancer and Dodge Neon small cars and Mitsubishi Galant and Dodge Stratus/Chrysler Sebring midsize sedans starting after 2003. The car project is expected to save the companies 4 percent to 6 percent on engineering and parts costs, Schaum has said.

DaimlerChrysler's U.S. shares fell 52 cents to $44.28 in midday trading. Mitsubishi Motors rose 8 yen to 357 yen in Tokyo.