DCX, Mitsubishi in Talks on Compensation Payment Over Terminated Smart-Car Contract

Washington DC June 21, 2006; The AIADA newsletter reported that DaimlerChrysler said it is still in compensation payment talks with Mitsubishi after ending a joint venture contract with the automaker on development of the four-seat Smart car model. A spokesman for DCX said there was no timeframe, but said the negotiations are in the final stages, according to MarketWatch.

The U.S.-German automaker announced in late March its intention to end the contract with Mitsubishi, and in April Mitsubishi said it would seek compensation for the costs which would ensue from early termination of the contract.