DaimlerChrysler AG and Mitsubishi Motors Corporation Strengthen Alliance
8 September 2000
DaimlerChrysler AG and Mitsubishi Motors Corporation Strengthen Alliance: Major Restructuring of Mitsubishi Motors Management
* DaimlerChrysler AG names Rolf Eckrodt as the new Chief Operating Officer
(COO) at Mitsubishi Motors Corporation
* Takashi Sonobe will succeed Katsuhiko Kawasoe as President on
November 1, 2000
* Purchasing price for DaimlerChrysler AG's 34% stake reduced by 10%
* Unlimited increase of DaimlerChrysler's equity stake after three years
possible
TOKYO, and STUTTGART, Germany, Sept. 8 Mitsubishi Motors
Corporation (MMC) and DaimlerChrysler AG held a top management meeting to
discuss the next steps in their alliance. After constructive and fruitful
discussion Mitsubishi Motors Corporation and DaimlerChrysler AG agreed that
DaimlerChrysler AG will increase its influence in Mitsubishi Motors
Corporation.
The changes that have been agreed to with respect to the organization and
management of Mitsubishi Motors, will aid in the recover of its reputation.
The changes are reflected in the following agreement:
1. The size of the Mitsubishi Motors Corporation Management Board will be
increased to 11 members including the new position of Chief Operating
Officer (COO). Rolf Eckrodt, currently head of DaimlerChrysler's rail
systems subsidiary Adtranz has been designated to fill this new
position, once the transition of Adtranz to Bombardier is complete.
His responsibilities will include research and development,
production/quality, procurement, marketing and sales;
2. President Katsuhiko Kawasoe will resign as President and Chief
Executive Officer and become a non-board member on November 1, 2000.
His successor will be Takashi Sonobe, who currently serves as Head of
International Operations of Mitsubishi Motors Corporation;
3. The purchasing price for DaimlerChrysler AG's 34% stake in Mitsubishi
Motors Corporation will be lowered by 10% from Yen 450 to Yen 405 per
share, reducing the total price from $2.1 billion (Euro 2.4 billion)
to $1.9 billion (Euro 2.2 billion). The closing of the deal is
expected in October, 2000;
4. DaimlerChrysler AG is entitled to increase its stake in Mitsubishi
Motors Corporation after a period of three years, without limitation;
5. DaimlerChrysler will allocate additional expertise and management
capacity to Mitsubishi Motors Corporation by dispatching highly
experienced specialists and managers.
Under the terms of this agreement, DaimlerChrysler AG will continue to not
consolidate Mitsubishi Motors Corporation in its balance sheet.
Juergen E. Schrempp, Chairman of the Board of DaimlerChrysler AG, said:
"This agreement puts our alliance on a strong footing. The appointment of a
Chief Operating Officer will greatly enhance the ability of Mitsubishi Motors
Corporation to improve its competitive position. Rolf Eckrodt is a highly
experience manager with a great track record -- in several different countries
and different industries, including the automotive business. I am very
confident that with this agreement, the new Board under the leadership of
President-designate Takashi Sonobe and Rolf Eckrodt will succeed in
strengthening our alliance, enabling Mitsubishi Motors Corporation to regain
customer confidence, and improve overall performance."
DaimlerChrysler is one of the world's leading automotive, transportation
and services companies. Its passenger car brands include Mercedes-Benz,
Chrysler, Jeep(R), Dodge and smart. Commercial vehicles are produced under
the Mercedes-Benz, Freightliner, Sterling, Thomas Built and Setra brands. The
group also offers financial and other services through DaimlerChrysler
Services (debis). With 466,900 employees DaimlerChrysler in 1999 achieved
revenues of $151.0 billion (Euro 150.0 billion) and the world's third largest
worldwide vehicle manufacturer by revenue after GM and Ford.
On the Internet
Visit DaimlerChrysler's Media Services Web Site at
http://www.media.daimlerchrysler.com for additional DaimlerChrysler news .