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DaimlerChrysler AG, which owns 37 percent of Mitsubishi Motors Corp., will buy about $1.43 billion of additional shares in Japan's fourth-largest automaker as early as 2006 to take a majority stake, Mitsubishi executives said.

Mitsubishi Motors will seek approval at its April 30 shareholders' meeting to issue as many as 5.92 billion new shares, or four times the number now outstanding, said the executives who declined to be named. The shares may be sold to DaimlerChrysler as early as 2006.

DaimlerChrysler is bringing in a new chief executive, Andreas Renschler of its Smart minicar division, to revive Japan's sole unprofitable automaker under a rescue plan costing about 700 billion yen, or about $6.6 billion, the executives said. Of that amount, DaimlerChrysler will invest 400 billion yen, or $3.8 billion.

The Tokyo-based carmaker has been hurt by recalls of more than 2 million vehicles, and 2003 U.S. sales fell 26 percent after the company tightened auto loan policies to counter surging defaults.

DaimlerChrysler, the world's fifth-largest automaker, has previously said it plans to raise its stake in Mitsubishi Motors to more than 50 percent after the Japanese automaker cuts its 1.14-trillion yen debt and return to profitability.

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Hopefully it pulls them out of the rut that Mitsubishi is in. They make good cars, but they just need a better image. Chrysler seems to be turning around their image and hopefully they can with Mitsubishi.
 

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Originally posted by RCtennis3811@Apr 13 2004, 10:10 PM
Hopefully it pulls them out of the rut that Mitsubishi is in. They make good cars, but they just need a better image. Chrysler seems to be turning around their image and hopefully they can with Mitsubishi.
Daimler will save them. If there is anybody out there that can save stumbling, bumbling, weak, auto companies, it is the Germans. Of course, they have to "fix" their beloved Mercedes brand. Once fixed, it won't be long before Mercedes comes after Cadillac, BMW, and Lexus with a vengence. Cadillac won't know what hit them. I don't think the Germans play for second best. :ph34r:
 

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Originally posted by AJR+Apr 13 2004, 08:09 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (AJR @ Apr 13 2004, 08:09 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-RCtennis3811@Apr 13 2004, 10:10 PM
Hopefully it pulls them out of the rut that Mitsubishi is in.  They make good cars, but they just need a better image.  Chrysler seems to be turning around their image and hopefully they can with Mitsubishi.
Daimler will save them. If there is anybody out there that can save stumbling, bumbling, weak, auto companies, it is the Germans. Of course, they have to "fix" their beloved Mercedes brand. Once fixed, it won't be long before Mercedes comes after Cadillac, BMW, and Lexus with a vengence. Cadillac won't know what hit them. I don't think the Germans play for second best. :ph34r: [/b][/quote]
I agree. A company as powerful as Mercedes-Benz doesn't settle for second. They'll definitely be back on top in a couple of years.
 
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