Chrysler Cuts Mitsubishi Stake

Cash-strapped Chrysler Corp. has sold nearly half its stake in Mitsubishi Motors Corp. for about $205 million.

Mitsubishi said Chrysler sold 43.6 million shares Thursday to 11 Japanese companies, about half of which belong to the Mitsubishi group, and institutional investors in Europe.

The purpose of the sale was to strengthen Chrysler’s financial situation and generate funds for new investments, the statement said.

The transactions cut Chrysler’s stake in Mitsubishi Motor Cars from 10.99% to 5.88%.

Chrysler, which fostered the growth of the then-fledgling Mitsubishi in 1971 by injecting cash and know-how into the company, at first took 15% of Mitsubishi Motor. Its holding reached a high of 24% in 1985.