DaimlerChrysler, Mitsubishi Sign Cross-Supply Commercial Engine Agreement

Autoparts Report, April 20, 2002

DaimlerChrysler and its Japanese partner, Mitsubishi Motors Corp. have signed a cross-supply agreement to supply each other with diesel engines for commercial vehicles, a Japanese financial newspaper reported. According to Nihon Keizai Shimbun, it would be the first time that Mitsubishi has supplied Daimler, which owns 37 percent of the Japanese auto maker, with the key auto parts.

The two companies said they plan to integrate the small engine development and production operations under Mitsubishi's supervision and expect to reduce development costs by roughly 20 percent by sharing operations based on their specialties.

Mitsubishi Motors said in late March that a German, Rolf Eckrodt, would be its new chief executive -- a move seen as boosting partner DaimlerChrysler's influence at the ailing Japanese auto maker.