Mitsubishi, Daimler Plan to Develop a Small Van

Mitsubishi Motors Corp. of Japan and Daimler-Benz AG of West Germany agreed to jointly develop a small van for distribution in Europe, both companies said.

Mitsubishi said that, under the agreement, it will export some components to the German auto maker, which will start producing the diesel-engined van in 1987 at a plant operated by its subsidiary in Spain, Mercedes-Benz Espana of Madrid.

Daimler-Benz will market the vans through its distribution networks in Europe and North Africa under its own brand name and hopes to sell about 10,000 the first year.