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Mitsubishi Motors Corporation
DaimlerChrysler AG and Mitsubishi Motors Corporation
strengthen alliance: major restructuring of Mitsubishi Motors management

Sep. 8, 2000
  • DaimlerChrysler AG names Rolf Eckrodt as the new Chief Operating Officer (COO) at Mitsubishi Motors Corporation
  • Takashi Sonobe will succeed Katsuhiko Kawasoe as President on November 1, 2000
  • Purchasing price for DaimlerChrysler AG's 34 % stake reduced by 10 %
  • Unlimited increase of DaimlerChrysler's equity stake after three years possible

Tokyo/Stuttgart - Mitsubishi Motors Corporation and DaimlerChrysler AG held a top management meeting to discuss the next steps in their alliance. After constructive and fruitful discussions Mitsubishi Motors Corporation and DaimlerChrysler AG mutually agreed that DaimlerChrysler AG will increase its influence in Mitsubishi Motors Corporation. Changes have been agreed to the organization and management of Mitsubishi Motors that will ensure the recovery of the company' s reputation. This is reflected in the following agreement:

  1. The Mitsubishi Motors Corporation Management Board will be enlarged to 11 members, and will include the new position of Chief Operating Officer (COO). His responsibilities will include research and development, production/quality, procurement, marketing and sales in the field of passenger car business. Mr. Rolf Eckrodt, 58, currently head of DaimlerChrysler's rail systems subsidiary Adtranz, has been designated to fill this new position, after the transition of Adtranz to Bombardier.
  2. President Katsuhiko Kawasoe, 63, will resign as President and Chief Executive Officer to become non-executive board member after the closing. His successor will be Mr. Takashi Sonobe, 59, who currently serves as Head of International Operations of Mitsubishi Motors Corporation.
  3. The purchasing price for DaimlerChrysler AG's 34 % stake in Mitsubishi Motors Corporation will be lowered by 10 % from Yen 450 to Yen 405 per share, reducing the total price from 225 billion yen to 202.4 billion yen. The closing is expected in October 2000.
  4. DaimlerChrysler AG is entitled to increase its stake in Mitsubishi Motors Corporation after a period of three years without limitation.
  5. DaimlerChrysler will allocate additional know-how and management capacity to Mitsubishi Motors Corporation by dispatching highly experienced specialists and managers.

Under this agreement DaimlerChrysler AG will continue not to consolidate Mitsubishi Motors Corporation in its balance sheet.

Juergen E. Schrempp, Chairman of the Board of DaimlerChrysler AG, said: "This agreement puts our alliance on a strong footing. The appointment of a Chief Operating Officer will greatly enhance the ability of Mitsubishi Motors Corporation to improve its competitive position. Rolf Eckrodt is a highly experienced manager with a great track record - in several different countries and different industries, including the automotive business. I am very confident that with this agreement, the new Board under the leadership of President-designate Takashi Sonobe and Rolf Eckrodt will succeed in strengthening our alliance, enabling Mitsubishi Motors Corporation to regain customer confidence, and improve overall performance."

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