DaimlerChrysler Team Led by Smart Boss Being Sent to Help Troubled Mitsubishi Motors

TOKYO February 23, 2004; The AP reported that DaimlerChrysler AG of Germany is sending a team to help devise a rescue plan for its troubled Japanese partner Mitsubishi Motors Corp., the Tokyo-based automaker said Monday. Andreas Renschler, president of DaimlerChrysler's Smart compact car unit, will lead the team, which begins work later this week, Mitsubishi Motors said in a statement. The team will announce a midterm business plan on April 30, the statement said.

DaimlerChrysler owns 37 percent of Mitsubishi Motors.

Last week, Mitsubishi Motors revised its outlook to a loss of 72 billion yen ($665 million) for the fiscal year ending March 31 -- far worse than the anticipated loss of 11 billion yen forecast in November. The forecast for sales was also slashed to 2.47 trillion yen ($23 billion) from 2.6 trillion yen.

Speculation has been growing that Mitsubishi Motors chief executive Rolf Eckrodt may step down to take responsibility for recent problems mainly stemming from losses related to car buyers with bad credit in North America. Eckrodt said last week he felt responsible for the carmaker's woes but would leave the decision about his job to shareholders.

"We make a mistake, and for a mistake, of course, you take consequences," Eckrodt told reporters last Thursday.

Renschler has been mentioned in media reports as a possible candidate to replace Eckrodt.