Mitsubishi mulls sale of its Fuso truck unit
Dec 9, 2003 12:00 PM, from staff and wire reportsMitsubishi Motors, the Japanese automaker that is one-third owned by DaimlerChrysler, is in discussions to sell its entire 42% stake in truckmaker Mitsubishi Fuso for an estimated $933 million, according to reports in Japan Today.
The company has declined comment, but it is expected that 22% of Fuso will be sold to DaimlerChrysler and 20% to companies affiliated with Mitsubishi Corp.
The move is thought to have been spurred by MMC's attempt to offset huge losses at its United States financial division, which has millions of dollars in defaulted loans.
DaimlerChrysler owns 43% of Fuso, and if the deal goes through, it will have to absorb the truckmaker's estimated $1.9 billion in debt onto its balance sheet once it acquires the additional 22% stake. DaimlerChrysler is in a legal battle with billionaire financier Kirk Kerkorian over the original terms of its acquisition of Chrysler.