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DaimlerChrysler–Mitsubishi alliance

March 17, 2024

The DaimlerChrysler–Mitsubishi alliance refers to the 69-month period during which U.S.-German automaker DaimlerChrysler AG (DCX) held a controlling stake in Mitsubishi Motors Corporation (MMC). First established on March 27, 2000, with the signing of a letter of intent,[1] it was initiated by Jürgen E. Schrempp, the chairman of DCX, who was attempting to build what he called a "Welt AG" (global corporation) which would have as widespread a presence across worldwide automotive markets as its rivals.[2][3] The merger with the Chrysler Corporation had increased Daimler-Benz's share of the North American market, and Mitsubishi Motors offered a gateway to Asia.[1]

The deal was to prove costly for both DaimlerChrysler shareholders and for Schrempp personally, whose part in the deal contributed to his eventual replacement at the helm of DCX in 2006.[4]

Background edit

Jürgen Schrempp was one of the primary architects of the "Welt AG" plan, developed by Daimler-Benz to increase its presence in the American and Asian markets, and to improve its profitability. Schrempp believed that a modern automaker needed a full range of products beyond the luxury vehicle market in which Mercedes-Benz competed, and began looking for a partner as soon as he became chairman in 1994.[5] The Chrysler Corporation was targeted in 1995,[6] and on January 12, 1998, he met with Chrysler chairman Bob Eaton with the intent of negotiating a merger/takeover.[7] Following its completion in May that year, Schrempp then turned to Asia.

However, DaimlerChrysler's first steps came to nothing. It considered but ultimately declined to invest in Nissan prior to the Japanese company's alliance with Renault,[8] and it was rumoured that they also courted Honda that same year.[5][8] Schrempp, who had given a speech in Tokyo in early 1999 where he predicted DCX's market share in Asia would increase from 1.3 to over 10 percent, began to come under pressure to deliver on his promises.[8]

Mitsubishi Motors was DaimlerChrysler's third choice partner, but in 1999 MMC chairman Katsuhiko Kawasoe rebuffed their initial approach.[8] However, in the aftermath of the 1997 East Asian financial crisis MMC was saddled with ¥1.7 trillion of debt,[9][10] and some outside analysts were suggesting that the company should give priority to becoming a takeover or merger target.[11] Kawasoe rejected this, preferring to present Mitsubishi as an equal partner to potential suitors, adding that Mitsubishi would continue to follow their longstanding approach of establishing ventures without capital tie-ups.[11] But eventually a deal was struck: DCX would purchase a controlling 34 percent stake in the company for ¥450 billion (€2.1 billion).[12][13] This would ostensibly preserve Mitsubishi's "independence", as only three out of the company's ten board members would be elected by the new largest shareholder, although DaimlerChrysler did now possess a veto power over boardroom decisions.[14] For DCX, the benefit would come from increased market share without MMC's debts appearing on their balance sheet.[12]

Recall cover up edit

Shortly after the deal was finalised, Mitsubishi became embroiled in accusations that it had covered up complaints from customers about defects in their vehicles.[15] A police raid on its headquarters in July 2000 uncovered hidden documents stashed in a locker, and soon after over 500,000 vehicles were recalled for repairs. Mitsubishi's shares fell by 13 percent as these revelations became public,[15] and over the summer, further investigations took a similar toll on the company's stock. By the end of August, following a second police raid, the total number of vehicles recalled had reached one million, while the share price had fallen by almost 30 percent.[16][17] As a result of the collapse in the value of Mitsubishi, DaimlerChrysler renegotiated a €200 million reduction price of its stock purchase, while Kawasoe was forced to step down as chairman.[18][19]

Increasing control edit

Mitsubishi's difficulties contributed to a sharp fall in the DaimlerChrysler group's profits, and following the recall of a further 1.5 million cars in February 2001, including almost a million in the U.S.,[20] the German parent moved quickly to restructure; approximately 10,000 Mitsubishi employees would be axed and one of its four assembly plants would be closed.[21]

The following month, DaimlerChrysler approached Volvo about acquiring the Swedish automaker's 3.3 percent stake in Mitsubishi. Volvo had planned on forming a joint venture with MMC for bus and truck manufacturing as part of a deal originally negotiated in 1999, until the involvement of DaimlerChrysler, a rival in the commercial vehicle marketplace, led Volvo to ultimately withdraw.[22] The €760 million sale was concluded in April 2001, taking DCX's share to 37.3 percent.[23]

Olivier Boulay, then the head of DaimlerChrysler's Japanese design studio in Yokohama, was recruited by Mitsubishi in May 2001.[24] Answering directly to Rolf Eckrodt, the DCX-appointed Chief Operating Officer, Boulay's appointment was part of the "Turnaround Plan" initiated by Eckrodt and new Chief Executive Takashi Sonobe, where Mitsubishi tried to move away from an engineering-led approach to development.[25] Despite the new initiatives and increased investment, Mitsubishi Motors announced a revised profit forecast in April 2001,[26] and their downward projections were confirmed in May when the company reported a net loss for the year of ¥278 billion.[27]

During 2001 and 2002 DaimlerChrysler and Mitsubishi began to co-operate more closely on longer-term ventures. A €244 million plant would be built at Kölleda in Germany to manufacture engines for the new Z-car platform,[28] while in concert with Hyundai they established the Global Engine Manufacturing Alliance, a joint venture with an annual capacity of two million powerplants in five factories across the globe.[29][30] There was also extensive platform sharing,[31] cross-supply agreements,[32] and manufacturing subcontracts,[33] which were reflected in the 2002-2013 Colt and first-generation Smart Forfour.

Unravelling ties edit

Despite DaimlerChrysler's involvement, debts at Mitsubishi continued to accumulate. A torporous economy in Japan dragged down the company's domestic performance in 2003, while the same year the after effects of a disastrous credit scheme in the U.S. saw Mitsubishi Motors North America suffer a US$454 million loss.[34][35] By 2004 the automaker owed ¥1.14 trillion, and a ¥700 billion rescue plan was put to shareholders in April.[36] Other companies within the keiretsu of Mitsubishi which owned 23 percent of MMC were committed to the plan, and the Japan Development Bank had also been approached for support.[37]

However, at DaimlerChrysler there was dissent against the idea of further investment; only weeks before Schrempp had endured calls for his resignation from shareholders.[38] In the face of this and his boardroom's opposition, DCX refused to pledge further funds, and formally stated that it would no longer financially support its partner.[39] Japan's finance minister, Nobuteru Ishihara, commented that the decision "could affect the future of the company", while corporate analysts were more forthright, calling it "a disaster" and claiming that "[Mitsubishi] will vanish if it continues this way."[36]

An alternative rescue package was formulated by May 2004, involving a ¥450 billion investment in newly issued stock by U.S. bank JPMorgan Chase, Tokyo-based private investment fund Phoenix Capital and other Mitsubishi Group companies. The deal was announced as MMC reported a loss for the year of ¥215 billion.[40] Further negotiations, and the involvement of the China Motor Corporation, boosted this figure to ¥546 billion by June, in return for 11,000 redundancies and cuts to corporate pensions, salaries and bonuses.[41] As a result of the new investment, DaimlerChrysler's own stake was diluted.

Profitability remained out of reach for Mitsubishi, and enlarged losses in 2005 were forecast by the company. The company's stock price slid 41 percent in 2004 to approximately one quarter the value of when DaimlerChrysler first became involved.[42]

Divorce edit

Following DaimlerChrysler's decision to cease further investment in its Japanese partner, Rolf Eckrodt stepped down as chairman and CEO of Mitsubishi, and retired from DCX in April 2004.[43] Soon after, Chrysler's Chief Operating Officer Wolfgang Bernhard also parted ways with the German parent over its continuing troubles and falling profits,[44] while the merger with MMC was now routinely being referred to by the media as a "debacle".[43][44][45][46] A third attempt to recapitalize Mitsubishi in January 2005 led to ¥540 billion of further investment,[47][48] and DaimlerChrysler's now owned only a 12.4 percent stake. Finally, on November 11, 2005, the remaining stock was sold for US$1.1 billion.[49] Three days later the buyer, investment bank Goldman Sachs sold the shares on for US$80 million profit.[50]

New major stockholder Phoenix Capital followed suit the following month, selling all but 50 million of its 575 million shares to JPMorgan on December 9, 2005, and once again the investment bank offloaded their purchase within a few days for tens of millions of dollars in profit. In both cases, the eventual buyers were part of the Mitsubishi keiretsu, returning MMC to Japanese ownership.[51]

By 2007, DaimlerChrysler had also found themselves in a divorce on their own when Daimler sold Chrysler to Cerberus Capital Management for US$6 billion.[52]

Corporate performance edit

Mitsubishi Motors' revenue, net profit/loss, and assets before, during, and immediately after the period when DaimlerChrysler held a share.

Fiscal year Revenue Profit/Loss Assets
1998[53] ¥3,512.6 billion ¥5.7 billion n/a
1999[54] ¥3,335.0 bn -¥23.3 bn ¥2,784.1 bn
2000[55] ¥3,276.7 bn -¥278.1 bn ¥2,981.7 bn
2001[56] ¥3,200.7 bn ¥11.2 bn ¥2,894.6 bn
2002[57] ¥3,884.9 bn ¥37.4 bn ¥2,425.4 bn
2003[58] ¥2,519.4 bn -¥215.4 bn ¥2,029.0 bn
2004[59] ¥2,122.6 bn -¥474.8 bn ¥1,589.3 bn
2005[60] ¥2,120.1 bn -¥92.2 bn ¥1,557.6 bn
2006[61] ¥2,202.9 bn ¥8.7 bn ¥1,778.7 bn
 
Mitsubishi Motors' financial performance during the years 1998 to 2006.

References edit

  1. ^ a b "For Daimler, Mitsubishi Opens the Door to Asia", John Schmid, International Herald Tribune, March 28, 2000
  2. ^ "Commercial Vehicles Feature: Truck business data – OEMs" 2007-09-27 at the Wayback Machine, Michael Hinks-Edwards, Automotive world, June 8, 2004 (subscription required)
  3. ^ (in German)"Schrempp scheitert mit Welt AG", Orf.at
  4. ^ "Daimler Chief Schrempp to Be Replaced by Zetsche", Bloomberg News, July 28, 2005
  5. ^ a b , Karen Lowry Miller & Joann Muller, BusinessWeek, November 5, 1998
  6. ^ "DaimlerChrysler 'merger of equals' put on trial", Ed Garsten, The Detroit News, November 26, 2003
  7. ^ "Projekt Welt AG", Henrik Böhme, DW-World.de, May 7, 2003
  8. ^ a b c d , Jack Ewing, Emily Thornton & Moon Ihlwan, BusinessWeek International, December 13, 1999
  9. ^ , Brian Bremner, Emily Thornton, and Irene M. Kunii, BusinessWeek, March 15, 1999
  10. ^ History of Mitsubishi, Funding Universe.com
  11. ^ a b "Mitsubishi Coy On Partnership", Gerry Kobe, Automotive Industries, August 1999
  12. ^ a b "Daimler grabs Mitsubishi", CNN Money, March 27, 2000
  13. ^ "Don't Wait For More" (boxout), Murakami Mutsuko, Asiaweek vol.26, no.13, April 7, 2000,
  14. ^ "Daimler Gets Closer To Mitsubishi Deal", John Schmid, International Herald Tribune, March 23, 2000
  15. ^ a b "Mitsubishi recalls 514,000 vehicles", BBC News, July 19, 2000
  16. ^ "Mitsubishi extends recall", BBC News, August 13, 2000
  17. ^ "Police raid Mitsubishi headquarters", BBC News, August 28, 2000
  18. ^ "Cover-up forces Mitsubishi boss out", BBC News, September 8, 2000
  19. ^ " The Light and Shadow of Corporate Reconstruction", Takuya Ito, Electronic Journal of Contemporary Japanese Studies, April 15, 2006
  20. ^ "Mitsubishi recalls 1.5 million cars", BBC News, February 15, 2001
  21. ^ "DaimlerChrysler axes Mitsubishi jobs", BBC News, February 26, 2001
  22. ^ "DaimlerChrysler targets bigger slice of Mitsubishi", BBC News, March 8, 2001
  23. ^ "MMC-DaimlerChrysler commercial vehicle strategy to expand" 2007-09-29 at the Wayback Machine, Mitsubishi Motors press release, April 11, 2001
  24. ^ "MMC recruits Olivier Boulay from DaimlerChrysler" 2008-09-05 at the Wayback Machine, Mitsubishi Motors press release, April 25, 2001
  25. ^ "MMC Announces New Management Organization, Details Major Progress in" 2006-10-29 at the Wayback Machine, Mitsubishi Motors press release, March 28, 2001
  26. ^ "MMC Announces Revised Forecast for FY2000" 2006-10-29 at the Wayback Machine, Mitsubishi Motors press release, March 28, 2001
  27. ^ "Mitsubishi Motors Corporation Announces Financial Results, Reports on Achievement of Major Milestones in Turnaround" 2006-10-29 at the Wayback Machine, Mitsubishi Motors press release, May 18, 2001
  28. ^ "DaimlerChrysler AG and Mitsubishi Motors Corporation to Build Engine Plant in Thuringia, Germany" 2006-10-29 at the Wayback Machine, Mitsubishi Motors press release, December 20, 2001
  29. ^ "DaimlerChrysler, Hyundai, and Mitsubishi Motors to Form Global Engine Alliance" 2007-09-29 at the Wayback Machine, Mitsubishi Motors press release, May 6, 2002
  30. ^ "DCX kicks off Global Engine Manufacturing Alliance with Hyundai and Mitsubishi", GEMA press release, October 4, 2005
  31. ^ "DC and Mitsubishi Learn to Share", Ward's AutoWorld, November 1, 2001
  32. ^ "DaimlerChrysler, Mitsubishi Sign Cross-Supply Commercial Engine Agreement", Autoparts Report, April 20, 2002
  33. ^ "New Colt lifts Mitsubishi's gloom", Jorn Madslien, BBC News, March 11, 2004
  34. ^ "Mitsubishi racks up huge losses", BBC News, November 11, 2003
  35. ^ Mitsubishi Motors press release, November 11, 2003
  36. ^ a b "DaimlerChrysler dumps Mitsubishi", BBC News, April 23, 2004
  37. ^ "Mitsubishi ditches sales chief", BBC News, April 2, 2004
  38. ^ , Alexander Huebner and Chang-Ran Kim, Forbes, April 23, 2004
  39. ^ "Remodelling Japan Inc" Sarah Buckley, BBC News, October 13, 2004
  40. ^ "Mitsubishi wins $4bn bailout deal", BBC News, May 21, 2004
  41. ^ "Mitsubishi boosts rescue package", BBC News, June 29, 2004
  42. ^ "Mitsubishi crashes into the red", BBC News, November 8, 2004
  43. ^ a b "News: Mitsubishi CEO resigns", 4Car, April 27, 2004
  44. ^ a b "DC finally outs Bernhard" 2007-09-29 at the Wayback Machine, Dean Slavnich, Automotive Engineer-Plus, July 30, 2004
  45. ^ , Gail Edmondson, BusinessWeek, August 2, 2004
  46. ^ "Daimler pulls support on Mitsubishi", Leonie Wood, The Age, April 27, 2004
  47. ^ "Mitsubishi seeks $5.2bn bail out", BBC News, January 28, 2005
  48. ^ "Mitsubishi group to buy carmaker's shares", Naoko Fujimura, International Herald Tribune, February 15, 2005
  49. ^ "Daimler sells stake in Mitsubishi" BBC News, November 11, 2005
  50. ^ "Mitsubishi shares make Goldman Sachs $80 million in a day" 2009-09-22 at the Wayback Machine Automotive Business Review, November 18, 2005
  51. ^ "J.P. Morgan buys carmaker's shares", International Herald Tribune, December 8, 2005
  52. ^ "Chrysler Group to Be Sold for $7.4 Billion". The New York Times. 2007-05-14. ISSN 0362-4331. from the original on 10 November 2017. Retrieved 2017-11-09.
  53. ^ "Mitsubishi Motors reports consolidated results for year ended 31 March 1999" 25 April 2007 at the Wayback Machine, Mitsubishi Motors press release, May 27, 1999
  54. ^ "Financial Results for Fiscal Year 2000" 2007-09-29 at the Wayback Machine, Mitsubishi Motors press release, May 18, 2001
  55. ^ "FY 2000 Financial Results (Consolidated)" 2007-09-29 at the Wayback Machine, Mitsubishi Motors website
  56. ^ "FY 2001 Financial Results (Consolidated)" 2007-09-29 at the Wayback Machine, Mitsubishi Motors website
  57. ^ "Consolidated Financial Results for FY2002" 2007-09-29 at the Wayback Machine, Mitsubishi Motors website
  58. ^ "FY 2003 Consolidated Financial Statements" 2006-10-22 at the Wayback Machine, Mitsubishi Motors website
  59. ^ "FY 2004 Consolidated Financial Statements (Revised 2005.5.30)" 2007-09-29 at the Wayback Machine, Mitsubishi Motors website
  60. ^ "FY2005 Consolidated Financial Statements (Revised)" 2007-09-26 at the Wayback Machine, Mitsubishi Motors website
  61. ^ "FY 2006 Financial Statements" 2007-09-26 at the Wayback Machine, Mitsubishi Motors website

March 17, 2024
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This article relies excessively on references to primary sources Please improve this article by adding secondary or tertiary sources Find sources DaimlerChrysler Mitsubishi alliance news newspapers books scholar JSTOR February 2020 Learn how and when to remove this template message The DaimlerChrysler Mitsubishi alliance refers to the 69 month period during which U S German automaker DaimlerChrysler AG DCX held a controlling stake in Mitsubishi Motors Corporation MMC First established on March 27 2000 with the signing of a letter of intent 1 it was initiated by Jurgen E Schrempp the chairman of DCX who was attempting to build what he called a Welt AG global corporation which would have as widespread a presence across worldwide automotive markets as its rivals 2 3 The merger with the Chrysler Corporation had increased Daimler Benz s share of the North American market and Mitsubishi Motors offered a gateway to Asia 1 The deal was to prove costly for both DaimlerChrysler shareholders and for Schrempp personally whose part in the deal contributed to his eventual replacement at the helm of DCX in 2006 4 Contents 1 Background 2 Recall cover up 3 Increasing control 4 Unravelling ties 5 Divorce 6 Corporate performance 7 ReferencesBackground editJurgen Schrempp was one of the primary architects of the Welt AG plan developed by Daimler Benz to increase its presence in the American and Asian markets and to improve its profitability Schrempp believed that a modern automaker needed a full range of products beyond the luxury vehicle market in which Mercedes Benz competed and began looking for a partner as soon as he became chairman in 1994 5 The Chrysler Corporation was targeted in 1995 6 and on January 12 1998 he met with Chrysler chairman Bob Eaton with the intent of negotiating a merger takeover 7 Following its completion in May that year Schrempp then turned to Asia However DaimlerChrysler s first steps came to nothing It considered but ultimately declined to invest in Nissan prior to the Japanese company s alliance with Renault 8 and it was rumoured that they also courted Honda that same year 5 8 Schrempp who had given a speech in Tokyo in early 1999 where he predicted DCX s market share in Asia would increase from 1 3 to over 10 percent began to come under pressure to deliver on his promises 8 Mitsubishi Motors was DaimlerChrysler s third choice partner but in 1999 MMC chairman Katsuhiko Kawasoe rebuffed their initial approach 8 However in the aftermath of the 1997 East Asian financial crisis MMC was saddled with 1 7 trillion of debt 9 10 and some outside analysts were suggesting that the company should give priority to becoming a takeover or merger target 11 Kawasoe rejected this preferring to present Mitsubishi as an equal partner to potential suitors adding that Mitsubishi would continue to follow their longstanding approach of establishing ventures without capital tie ups 11 But eventually a deal was struck DCX would purchase a controlling 34 percent stake in the company for 450 billion 2 1 billion 12 13 This would ostensibly preserve Mitsubishi s independence as only three out of the company s ten board members would be elected by the new largest shareholder although DaimlerChrysler did now possess a veto power over boardroom decisions 14 For DCX the benefit would come from increased market share without MMC s debts appearing on their balance sheet 12 Recall cover up editShortly after the deal was finalised Mitsubishi became embroiled in accusations that it had covered up complaints from customers about defects in their vehicles 15 A police raid on its headquarters in July 2000 uncovered hidden documents stashed in a locker and soon after over 500 000 vehicles were recalled for repairs Mitsubishi s shares fell by 13 percent as these revelations became public 15 and over the summer further investigations took a similar toll on the company s stock By the end of August following a second police raid the total number of vehicles recalled had reached one million while the share price had fallen by almost 30 percent 16 17 As a result of the collapse in the value of Mitsubishi DaimlerChrysler renegotiated a 200 million reduction price of its stock purchase while Kawasoe was forced to step down as chairman 18 19 Increasing control editMitsubishi s difficulties contributed to a sharp fall in the DaimlerChrysler group s profits and following the recall of a further 1 5 million cars in February 2001 including almost a million in the U S 20 the German parent moved quickly to restructure approximately 10 000 Mitsubishi employees would be axed and one of its four assembly plants would be closed 21 The following month DaimlerChrysler approached Volvo about acquiring the Swedish automaker s 3 3 percent stake in Mitsubishi Volvo had planned on forming a joint venture with MMC for bus and truck manufacturing as part of a deal originally negotiated in 1999 until the involvement of DaimlerChrysler a rival in the commercial vehicle marketplace led Volvo to ultimately withdraw 22 The 760 million sale was concluded in April 2001 taking DCX s share to 37 3 percent 23 Olivier Boulay then the head of DaimlerChrysler s Japanese design studio in Yokohama was recruited by Mitsubishi in May 2001 24 Answering directly to Rolf Eckrodt the DCX appointed Chief Operating Officer Boulay s appointment was part of the Turnaround Plan initiated by Eckrodt and new Chief Executive Takashi Sonobe where Mitsubishi tried to move away from an engineering led approach to development 25 Despite the new initiatives and increased investment Mitsubishi Motors announced a revised profit forecast in April 2001 26 and their downward projections were confirmed in May when the company reported a net loss for the year of 278 billion 27 During 2001 and 2002 DaimlerChrysler and Mitsubishi began to co operate more closely on longer term ventures A 244 million plant would be built at Kolleda in Germany to manufacture engines for the new Z car platform 28 while in concert with Hyundai they established the Global Engine Manufacturing Alliance a joint venture with an annual capacity of two million powerplants in five factories across the globe 29 30 There was also extensive platform sharing 31 cross supply agreements 32 and manufacturing subcontracts 33 which were reflected in the 2002 2013 Colt and first generation Smart Forfour Unravelling ties editDespite DaimlerChrysler s involvement debts at Mitsubishi continued to accumulate A torporous economy in Japan dragged down the company s domestic performance in 2003 while the same year the after effects of a disastrous credit scheme in the U S saw Mitsubishi Motors North America suffer a US 454 million loss 34 35 By 2004 the automaker owed 1 14 trillion and a 700 billion rescue plan was put to shareholders in April 36 Other companies within the keiretsu of Mitsubishi which owned 23 percent of MMC were committed to the plan and the Japan Development Bank had also been approached for support 37 However at DaimlerChrysler there was dissent against the idea of further investment only weeks before Schrempp had endured calls for his resignation from shareholders 38 In the face of this and his boardroom s opposition DCX refused to pledge further funds and formally stated that it would no longer financially support its partner 39 Japan s finance minister Nobuteru Ishihara commented that the decision could affect the future of the company while corporate analysts were more forthright calling it a disaster and claiming that Mitsubishi will vanish if it continues this way 36 An alternative rescue package was formulated by May 2004 involving a 450 billion investment in newly issued stock by U S bank JPMorgan Chase Tokyo based private investment fund Phoenix Capital and other Mitsubishi Group companies The deal was announced as MMC reported a loss for the year of 215 billion 40 Further negotiations and the involvement of the China Motor Corporation boosted this figure to 546 billion by June in return for 11 000 redundancies and cuts to corporate pensions salaries and bonuses 41 As a result of the new investment DaimlerChrysler s own stake was diluted Profitability remained out of reach for Mitsubishi and enlarged losses in 2005 were forecast by the company The company s stock price slid 41 percent in 2004 to approximately one quarter the value of when DaimlerChrysler first became involved 42 Divorce editFollowing DaimlerChrysler s decision to cease further investment in its Japanese partner Rolf Eckrodt stepped down as chairman and CEO of Mitsubishi and retired from DCX in April 2004 43 Soon after Chrysler s Chief Operating Officer Wolfgang Bernhard also parted ways with the German parent over its continuing troubles and falling profits 44 while the merger with MMC was now routinely being referred to by the media as a debacle 43 44 45 46 A third attempt to recapitalize Mitsubishi in January 2005 led to 540 billion of further investment 47 48 and DaimlerChrysler s now owned only a 12 4 percent stake Finally on November 11 2005 the remaining stock was sold for US 1 1 billion 49 Three days later the buyer investment bank Goldman Sachs sold the shares on for US 80 million profit 50 New major stockholder Phoenix Capital followed suit the following month selling all but 50 million of its 575 million shares to JPMorgan on December 9 2005 and once again the investment bank offloaded their purchase within a few days for tens of millions of dollars in profit In both cases the eventual buyers were part of the Mitsubishi keiretsu returning MMC to Japanese ownership 51 By 2007 DaimlerChrysler had also found themselves in a divorce on their own when Daimler sold Chrysler to Cerberus Capital Management for US 6 billion 52 Corporate performance editMitsubishi Motors revenue net profit loss and assets before during and immediately after the period when DaimlerChrysler held a share Fiscal year Revenue Profit Loss Assets1998 53 3 512 6 billion 5 7 billion n a1999 54 3 335 0 bn 23 3 bn 2 784 1 bn2000 55 3 276 7 bn 278 1 bn 2 981 7 bn2001 56 3 200 7 bn 11 2 bn 2 894 6 bn2002 57 3 884 9 bn 37 4 bn 2 425 4 bn2003 58 2 519 4 bn 215 4 bn 2 029 0 bn2004 59 2 122 6 bn 474 8 bn 1 589 3 bn2005 60 2 120 1 bn 92 2 bn 1 557 6 bn2006 61 2 202 9 bn 8 7 bn 1 778 7 bn nbsp Mitsubishi Motors financial performance during the years 1998 to 2006 References edit a b For Daimler Mitsubishi Opens the Door to Asia John Schmid International Herald Tribune March 28 2000 Commercial Vehicles Feature Truck business data OEMs Archived 2007 09 27 at the Wayback Machine Michael Hinks Edwards Automotive world June 8 2004 subscription required in German Schrempp scheitert mit Welt AG Orf at Daimler Chief Schrempp to Be Replaced by Zetsche Bloomberg News July 28 2005 a b Jurgen Schrempp The Auto Baron Karen Lowry Miller amp Joann Muller BusinessWeek November 5 1998 DaimlerChrysler merger of equals put on trial Ed Garsten The Detroit News November 26 2003 Projekt Welt AG Henrik Bohme DW World de May 7 2003 a b c d DaimlerChrysler Desperately Seeking an Ally Jack Ewing Emily Thornton amp Moon Ihlwan BusinessWeek International December 13 1999 Mitsubishi Fall of a Keiretsu Brian Bremner Emily Thornton and Irene M Kunii BusinessWeek March 15 1999 History of Mitsubishi Funding Universe com a b Mitsubishi Coy On Partnership Gerry Kobe Automotive Industries August 1999 a b Daimler grabs Mitsubishi CNN Money March 27 2000 Don t Wait For More boxout Murakami Mutsuko Asiaweek vol 26 no 13 April 7 2000 Daimler Gets Closer To Mitsubishi Deal John Schmid International Herald Tribune March 23 2000 a b Mitsubishi recalls 514 000 vehicles BBC News July 19 2000 Mitsubishi extends recall BBC News August 13 2000 Police raid Mitsubishi headquarters BBC News August 28 2000 Cover up forces Mitsubishi boss out BBC News September 8 2000 The Light and Shadow of Corporate Reconstruction Takuya Ito Electronic Journal of Contemporary Japanese Studies April 15 2006 Mitsubishi recalls 1 5 million cars BBC News February 15 2001 DaimlerChrysler axes Mitsubishi jobs BBC News February 26 2001 DaimlerChrysler targets bigger slice of Mitsubishi BBC News March 8 2001 MMC DaimlerChrysler commercial vehicle strategy to expand Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors press release April 11 2001 MMC recruits Olivier Boulay from DaimlerChrysler Archived 2008 09 05 at the Wayback Machine Mitsubishi Motors press release April 25 2001 MMC Announces New Management Organization Details Major Progress in Archived 2006 10 29 at the Wayback Machine Mitsubishi Motors press release March 28 2001 MMC Announces Revised Forecast for FY2000 Archived 2006 10 29 at the Wayback Machine Mitsubishi Motors press release March 28 2001 Mitsubishi Motors Corporation Announces Financial Results Reports on Achievement of Major Milestones in Turnaround Archived 2006 10 29 at the Wayback Machine Mitsubishi Motors press release May 18 2001 DaimlerChrysler AG and Mitsubishi Motors Corporation to Build Engine Plant in Thuringia Germany Archived 2006 10 29 at the Wayback Machine Mitsubishi Motors press release December 20 2001 DaimlerChrysler Hyundai and Mitsubishi Motors to Form Global Engine Alliance Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors press release May 6 2002 DCX kicks off Global Engine Manufacturing Alliance with Hyundai and Mitsubishi GEMA press release October 4 2005 DC and Mitsubishi Learn to Share Ward s AutoWorld November 1 2001 DaimlerChrysler Mitsubishi Sign Cross Supply Commercial Engine Agreement Autoparts Report April 20 2002 New Colt lifts Mitsubishi s gloom Jorn Madslien BBC News March 11 2004 Mitsubishi racks up huge losses BBC News November 11 2003 Mitsubishi Motors Announces First Half FY 2003 Results Gives Forecast for Full Year FY 2003 Mitsubishi Motors press release November 11 2003 a b DaimlerChrysler dumps Mitsubishi BBC News April 23 2004 Mitsubishi ditches sales chief BBC News April 2 2004 DaimlerChrysler pulls plug on Mitsubishi Motors Alexander Huebner and Chang Ran Kim Forbes April 23 2004 Remodelling Japan Inc Sarah Buckley BBC News October 13 2004 Mitsubishi wins 4bn bailout deal BBC News May 21 2004 Mitsubishi boosts rescue package BBC News June 29 2004 Mitsubishi crashes into the red BBC News November 8 2004 a b News Mitsubishi CEO resigns 4Car April 27 2004 a b DC finally outs Bernhard Archived 2007 09 29 at the Wayback Machine Dean Slavnich Automotive Engineer Plus July 30 2004 A New Driver For Mercedes Benz Gail Edmondson BusinessWeek August 2 2004 Daimler pulls support on Mitsubishi Leonie Wood The Age April 27 2004 Mitsubishi seeks 5 2bn bail out BBC News January 28 2005 Mitsubishi group to buy carmaker s shares Naoko Fujimura International Herald Tribune February 15 2005 Daimler sells stake in Mitsubishi BBC News November 11 2005 Mitsubishi shares make Goldman Sachs 80 million in a day Archived 2009 09 22 at the Wayback Machine Automotive Business Review November 18 2005 J P Morgan buys carmaker s shares International Herald Tribune December 8 2005 Chrysler Group to Be Sold for 7 4 Billion The New York Times 2007 05 14 ISSN 0362 4331 Archived from the original on 10 November 2017 Retrieved 2017 11 09 Mitsubishi Motors reports consolidated results for year ended 31 March 1999 Archived 25 April 2007 at the Wayback Machine Mitsubishi Motors press release May 27 1999 Financial Results for Fiscal Year 2000 Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors press release May 18 2001 FY 2000 Financial Results Consolidated Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors website FY 2001 Financial Results Consolidated Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors website Consolidated Financial Results for FY2002 Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors website FY 2003 Consolidated Financial Statements Archived 2006 10 22 at the Wayback Machine Mitsubishi Motors website FY 2004 Consolidated Financial Statements Revised 2005 5 30 Archived 2007 09 29 at the Wayback Machine Mitsubishi Motors website FY2005 Consolidated Financial Statements Revised Archived 2007 09 26 at the Wayback Machine Mitsubishi Motors website FY 2006 Financial Statements Archived 2007 09 26 at the Wayback Machine Mitsubishi Motors website Retrieved from https en wikipedia org w index php title DaimlerChrysler Mitsubishi alliance amp oldid 1193689836, wikipedia, wiki, book, books, library,

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