Industry Report: DaimlerChrysler to No Longer Fund Debt-Laden Mitsubishi Motors

On Friday DaimlerChrysler chief financial officer Manfred Gentz stated that the company "may" classify its 37 percent

Mitsubishi executives were reportedly stunned at DaimlerChrysler's announcement, as the companies were reportedly in the midst of talks over a revival plan. (Photo: Trevor Hofmann, Canadian Auto Press)

Mitsubishi Motors stake from "equity" to "available for sale." If this is so, DCX's portion will be booked as discontinued business until a buyer can be found.

Mitsubishi Motors Corporation (MMC), along with its other investors being Mitsubishi Heavy Industries (15 percent), Mitsubishi Corporation (5 percent), and The Bank of Tokyo-Mitsubishi (3 percent), were reportedly stunned at DaimlerChrysler's announcement as the companies were reportedly in the midst of talks over a revival plan. MMC and its ownership group, not including DCX, stated on Friday that they would work together to develop a new mid-term business plan with an aim to revitalize MMC's operations. While saying in a statement that the companies will continue to do their "utmost" to turn Mitsubishi Motors around, no announcement of a direct infusion of cash was made.

Heading up Mitsubishi Motors' business revitalization team will be Yoichiro

DaimlerChrysler was reportedly considering selling its 10% stake in the successful Hyundai Motor Co. in order to bail out Mitsubishi (Hyundai Elantra GT shown). (Photo: Trevor Hofmann, Canadian Auto Press)

Okazaki, managing director at Mitsubishi Heavy Industries, stating that the group will have a finished plan within one month.

DaimlerChrysler arrived at its decision after an extraordinary meeting of its supervisory and management boards on Thursday, at which time sources say the automaker was looking at divesting its 10 percent stake in the highly successful South Korean automaker Hyundai Motor Co., Korea's largest, estimated to be worth USD$1 billion, in order to pay for the Mitsubishi rescue project.

Previous to DaimlerChrysler's announcement, Mitsubishi was expected to present details of its 700 billion yen (USD$6.39 billion) restructuring plan to its shareholder group on April 30.