Mitsubishi Gives Daimler Its Stake in Truck Firm

Mitsubishi Motors Corp. of Japan said Thursday that it had settled with shareholder DaimlerChrysler on compensation for the costly defect coverup and recall scandal at Mitsubishi Motors’ truck unit.

The deal includes a cash payment of undisclosed size and the transfer of Mitsubishi Motors’ entire 20% stake in the truck firm to DaimlerChrysler, the German-American automaker.

One analyst estimated that the settlement was worth as much as $800 million to DaimlerChrysler. With the added 20%, DaimlerChrysler now owns 85% in Mitsubishi Fuso Truck & Bus Corp., which makes commercial trucks, heavy-duty buses and industrial vehicles such as dump trucks and crane carriers.

The truck firm is not publicly traded. The remaining 15% of Mitsubishi Fuso is held by Mitsubishi group companies including Bank of Tokyo-Mitsubishi Ltd., Mitsubishi Heavy Industries Ltd. and Mitsubishi Corp.

Mitsubishi Fuso sold 193,000 trucks and buses in 2003, the most recent year for which figures were available. The company has a strong footing in Taiwan, Indonesia and Asia.

The new 20% stake in the truck business is worth about $482 million, boosting DaimlerChrysler’s stake in the unit to about $1.87 billion, said analyst Georg Stuerzer of HVB Group.

Along with an estimated cash payment of 200 million euros to 250 million euros ($267.68 million to $334.6 million), Stuerzer said, that meant DaimlerChrysler had gotten back nearly all the money it spent on the unit in 2004.

“It is a very good development for Daimler, as they have achieved nearly the optimum in negotiations,” Stuerzer said.

Mitsubishi Motors executives were unavailable for comment late Thursday.