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Mitsubishi, DaimlerChrysler to extend business cooperation
Frankfurt, March 18: Japanese auto-maker Mitsubishi Motors Corp and its German-US partner Daimler- Chrysler AG will increase cooperation in non-production channels in Japan and Europe, a Japanese financial daily said on Sunday. DaimlerChrysler will handle shipments of new Mitsubishi cars and car parts in a move to cut the struggling Japanese car-maker's costs in Europe, the Nihon Keizai Shimbun said. The two firms will also consider merging their affiliated sales companies in Europe, it added. DaimlerChrysler was not immediately available for comment. Mitsubishi Motors, through affiliated sales companies in Japan, plans to launch sales of DaimlerChrysler's Tin and Vito cars in addition to the compact Smart cars as early as the end of this year, the report said. The possibility of integrating marketing operations was being discussed by DaimlerChrysler's executive automotive committee, which was set up in February with the aim of improving cooperation between members of the group's extended family. Thecommittee is headed by DaimlerChrysler's chief executive Juergen Schrempp. DaimlerChrysler, which already owns 34 per cent of its Japanese partner, has said the decision whether to take control of Mitsubishi will depend upon the outcome of a restructuring programme announced last month and its debt situation. Taking over Mitsubishi Motors will only be possible in 2003, when DaimlerChrysler can choose to exercise an option to buy the 66 per cent of Mitsubishi it does not already own. Debt-ridden Mitsubishi is in the midst of an overhaul programme to return to profit after a costly customer complaints scandal. DaimlerChrysler is also grappling with a restructuring programme to return its US Chrysler unit to profit in 2002. The two companies said in February they would achieve cost savings by sharing components between Mercedes-Benz and Mitsubishi and platform sharing between Chrysler and Mitsubishi. DaimlerChrysler and Mitsubishi are also jointly developing a four-seater compact `Z-Car', which is likely to be launched in 2004. (Reuters) Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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