DaimlerChrysler Surprises Auto Analysts by Canceling Meeting

DaimlerChrysler’s last-minute postponement of a meeting with analysts fueled speculation Friday that the German-American auto giant was preparing for major changes involving its troubled partner Mitsubishi Motors Corp.

The cancellation of next week’s meeting, which is traditionally used by DaimlerChrysler to showcase business strategy and impress analysts, was a new blow to DaimlerChrysler’s reputation as it struggles to quell a scandal at Mitsubishi and prop up a stock price trading just a hair above its 52-week low.

The meeting was originally scheduled for Wednesday through Friday in Auburn Hills, Mich. The company called it off with an e-mail message dated Aug. 30 that caught auto analysts around the world by surprise.

“Many of the board members involved in the meetings are now required to attend to other duties which could not have been foreseen at the time we sent out the invitations,” the brief message said.

Analysts suspected the unprecedented move meant something was amiss--perhaps a management shuffle at Mitsubishi, which last week acknowledged covering up auto defects over more than two decades, or at DaimlerChrysler’s Stuttgart headquarters.

The Financial Times of London reported on its Web site late Friday that DaimlerChrysler Chief Executive Jurgen Schrempp had sent two senior directors to Tokyo for emergency talks to amend his company’s agreement to purchase a 34% stake in Mitsubishi.

Citing officials close to the talks, the Financial Times said the auto maker is renegotiating the terms of its $1.9-billion alliance with Mitsubishi, whose shares have lost more than 32% since its president admitted to the cover-up.

The scandal broke shortly after invitations for the analysts meeting were put in the mail.

DaimlerChrysler closed up 13 cents at $52.19 on the New York Stock Exchange.